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Transcript of Fundamentals of Internet Marketing Back to Table of Contents.
Fundamentals of Internet Marketing
Fundamentals of Internet Marketing
Back to Table of Contents
Fundamentals of Internet Marketing
Fundamentals of Internet Marketing
Marketing Basics Marketing Basics
Market Research Market Research
2
Fundamentals of Fundamentals of Internet Marketing Internet Marketing
SectionSection 12-1
SectionSection 12-2
Chapter 12
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Section 12-1Why It’s Important
Relationships between buyers and sellers are more personalized and dynamic than ever before.
To reap the benefits—and avoid the risks—of these advancements, both buyers and sellers must recognize marketing fundamentals.
3Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Section 12-1 Key Terms
marketing
marketing mix
market segments
cross selling
promotions
virtual marketing
personalization
cookies
e-mail marketing
permission marketing
4Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Marketing
Marketing encompasses countless business decisions, from Web-site designs to delivery options.
marketing the process of planning and carrying out the production, distribution, promotion, and pricing of products and services
5Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
To attract new customers and keep old ones coming back, you need to create a customer-focused marketing mix.
marketing mix consists of four critical elements, collectively known as the four Ps: product, price, place, and promotion
6Section 12-1
The Marketing Mix
7
The Four Ps
Section 12-1
P
P
P
P
Product
Price
Place
Promotion
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
A product is any item manufactured for sale.
Services are not material goods, but rather work done in exchange for payment.
8Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
In marketing a product, you need to consider the level of product quality you intend to provide.
Decisions regarding product quality and service levels will depend largely on your target market.
9Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
Some target markets include two or more market segments.
market segments distinct groups of people who share certain characteristics
10Section 12-1
The Marketing Mix
11
Market Segment Identification
Section 12-1
Demographics Psychographics Geographics Product benefits
group people by statistics such as income, age, or gender
define people by their lifestyle preferences
categorize people by their location
identify people according to the satisfaction they get from products
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
Your product line is a group of related products that complement one another.
Your product mix is the full set of products offered for sale, including all product lines.
12Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
A good product mix offers opportunities for cross selling.
cross selling generating another sale by offering related items
13Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
Price is the amount of money a business receives in exchange for a product or service.
When setting prices, consider costs, profits, your target market, and image.
14Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
When it comes to business, place means where customers shop and how the product or service will be delivered.
15Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
You must inspire potential customers to visit your site and purchase your products or services through promotions.
promotions advertisements intended to inform potential customers about products or services
16Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
You can enhance your word-of-mouth promotion with virtual marketing.
virtual marketing a cost-effective strategy that uses customers to help promote a business
17Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
To the four Ps of the marketing mix, a fifth could be added: personalization.
personalization refers to establishing one-to-one relationships with your customers, for example greeting by name or offering book and movie recommendations based on previous visits
18Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
Many online businesses use cookies to personalize their marketing.
cookies small text files written directly onto visitors’ hard drives, containing information such as names, shopping-cart contents, user preferences, or unique identification codes; using cookies, businesses can collect data and analyze the behavioral patterns of their customers to market personally to them
19Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
E-mail marketing is another way in which you can establish personal relationships with your customers.
e-mail marketing inexpensive advertising method with high response rate that allows a business to establish personal relationships with customers, send customized messages, tell customers about new products and sales, or remind them to order gifts for holidays or special events in their profiles
20Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
The Marketing Mix
Recently, many companies have started using a new marketing strategy called permission marketing.
permission marketing when a potential customer has consented to receive marketing messages and will only receive advertisements about products and services they have requested
21Section 12-1
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Section 12-1 Review
What is marketing, and how can it impact an online business?
How can a good product mix create successful marketing opportunities in e-commerce?
Of the four Ps of the marketing mix, how can the component place be best described?
What is permission marketing?
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Section 12-1 22
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Section 12-2Why It’s Important
To develop a strong marketing mix, a company must understand its customers’ needs, wants, and buying patterns.
Researching the market enables businesses to cater more accurately to their customers.
Section 12-2 23
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Section 12-2 Key Terms
market research
marketing research
clickstream data
metrics
Section 12-2 24
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Identifying Market Opportunities
Traditional bricks-and-mortar retailers have always collected and analyzed market data.
In the world of e-commerce, companies have their own ways of collecting market data.
25Section 12-2
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Market Research
Market research can help a business to recognize opportunities.
26Section 12-2
market research encompasses all of a business’s efforts to collect data regarding the economic climate, competitor prices or strategies, governmental regulations and policies, consumer demographics, and emerging technologies; distinct from marketing research
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Primary
Secondary
Market Research
There are two main types of market research.
27Section 12-2
Primary research is data gathered directly from people.
Secondary research is a summary of existing data gathered from nonhuman sources.
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Market Research
Marketing research is conducted by all types of businesses.
28Section 12-2
marketing research focuses specifically on consumer behaviors and the reasons behind buying habits; it collects information about consumers, especially a company’s target market, and analyzes demographics, buying habits, product preferences, and concerns about technology; distinct from market research
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Market Research
Clickstream data, or the information recorded in most server logs, is another rich source of information.
29Section 12-2
clickstream data a Web site visitor’s electronic footprints, recorded in most server logs, including their unique IPs, page views, downloaded images, and URLs
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Market Research
Metrics can be used to improve site navigation, create better privacy policies, and determine which pages generate the most interest.
30Section 12-2
metrics patterns found in clickstream and other data
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Market Research
Internet and traditional shoppers want similar things from their shopping experience:
31Section 12-2
easy navigation
quick and simple checkout
privacy and security
fair prices
quality products
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
Section 12-2 Review
How are Internet and traditional shoppers similar?
Why will a business conduct research into its distribution operations?
What is the difference between primary and secondary research? Provide examples of each.
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2.
3.
32Section 12-2
Fundamentals of Internet Marketing Fundamentals of Internet Marketing
33
Fundamentals of Internet Marketing
Fundamentals of Internet Marketing
End ofEnd of
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