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Welcome

TO THE ERA

OF

INTERNET MARKETING

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The Supply Chains: Channelsand Flows

The Supply Chains: Channelsand Flows

GoodsInformation

Funds

DistributorsDistributorsSuppliersSuppliers Mfr.Mfr. RetailerRetailer ConsumersConsumers

The Traditional View

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SupplierSupplier ConsumerConsumer

DistributorDistributor

ManufacturerManufacturer

RetailerRetailer

Global Supply Chains are beingtransformed

Global Supply Chains are beingtransformed

The Contemporary View

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Yoox.com

e-Tailer focused in the fashion industry, started in2000 by an Italian entrepreneur Federico Marchetti,

Founder and CEO,

300 well known and luxury brands The group

operates in 53 countries Sales of 2003: 22 millions

Sales of 2005: 53 millions (47% more than 2004)

Sales of 2007 91 millions ( 38% more that 2006)

Reached the breakeven after 2 years (when thecompetitors was running out of business)

Target: Young consumers (51% of customers in the

age group of 25-34 years)

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The e-marketing Channel The companys website is customised in 28 versions:

this differentiation involves different pricing, offer andcommunication for each single country.

Two thirds of customers are women; they look for high

quality products and are used to making online

purchases. Their age ranges from 19 to 29 years

Customer can send the product back without producing

any justification

Three millions visitors each month, 190,000 orders,

400,000 items; number of items proposed on the website

is between 100,000 and 150,000 depending upon

season. More than 4,000 new daily arrivals.

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The e-marketing Channel The companys website is customised in 28 versions:

this differentiation involves different pricing, offer andcommunication for each single country.

Two thirds of customers are women; they look for high

quality products and are used to making online

purchases. Their age ranges from 19 to 29 years

Customer can send the product back without producing

any justification

Three millions visitors each month, 190,000 orders,

400,000 items; number of items proposed on the website

is between 100,000 and 150,000 depending upon

season. More than 4,000 new daily arrivals.

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MARKETING APPLICATIONS OF IM

http://images.google.co.in/imgres?imgurl=http://blog.impactyourcompany.com/.a/6a00d8341cda9153ef010536faee54970c-800wi&imgrefurl=http://blog.impactyourcompany.com/atlantas_small_business_m/2009/06/switching-between-applications-on-your-computer.html&usg=___GtZKxsoozdKxfRmbVJwzfrjmgk=&h=454&w=523&sz=31&hl=en&start=18&um=1&tbnid=87ie8uN6pDMrAM:&tbnh=114&tbnw=131&prev=/images%3Fq%3DMARKETING%2BAPPLICATIONS%2BOF%2BIM%26hl%3Den%26sa%3DN%26um%3D1

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AS AN ADVERTISING MEDIUM

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A PLATFORM FOR SALES TRANSACTIONS

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A DISTRIBUTION CHANNEL

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A RELATIONSHIP BULDING MEDIUM

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E-business and e-commerce

The distinction between buy-side and sell-side e-commerce

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5 S of IM

http://images.google.co.in/imgres?imgurl=http://www.progressionneverends.com/wp-content/uploads/2009/11/5-Ss-of-Internet-Marketing.gif&imgrefurl=http://www.progressionneverends.com/&usg=__UcSLg3wZrqQ00Lz9zjt55ds9tP8=&h=300&w=400&sz=64&hl=en&start=1&um=1&tbnid=bKusNd2EXvtC4M:&tbnh=93&tbnw=124&prev=/images%3Fq%3DFIVE%2B%25E2%2580%259CS%25E2%2580%259D%2Bof%2Bonline%2Bmarketing%26hl%3Den%26sa%3DG%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.progressionneverends.com/wp-content/uploads/2009/11/5-Ss-of-Internet-Marketing.gif&imgrefurl=http://www.progressionneverends.com/&usg=__UcSLg3wZrqQ00Lz9zjt55ds9tP8=&h=300&w=400&sz=64&hl=en&start=1&um=1&tbnid=bKusNd2EXvtC4M:&tbnh=93&tbnw=124&prev=/images%3Fq%3DFIVE%2B%25E2%2580%259CS%25E2%2580%259D%2Bof%2Bonline%2Bmarketing%26hl%3Den%26sa%3DG%26um%3D1

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Types of web presence

1. Transactional e-commerce site:Examples Amazon, Dell

2. Services-oriented/relationship building

Accenture, British Gas

3. Brand Building site

Tango, Guinness

4. Portal or media site

Yahoo!, Silicon.com

A generic internet marketing strategy development process

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A generic internet marketing strategy development process

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INTERNET MARKETING

Vs

TRADITIONAL MARKETING

http://images.google.co.in/imgres?imgurl=http://omniideas.com/blog/wp-content/uploads/2008/10/word-of-mouth-marketing.jpg&imgrefurl=http://www.omniideas.com/blog/index.php/2008/10/09/word-of-mouth-marketing-creates-positive-media-buzz/comment-page-1/&usg=__LmQYmgKjzodxgRIyN9rcZphPWuA=&h=848&w=565&sz=162&hl=en&start=19&um=1&tbnid=n5Ym_V6e7fULAM:&tbnh=145&tbnw=97&prev=/images%3Fq%3DMARKETING%26ndsp%3D18%26hl%3Den%26sa%3DN%26start%3D18%26um%3D1

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Interactivity and intelligence

I di id li ti

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Individualization

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Integration

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Disintermediation: The elimination of organizationor business process layers responsible for certain

intermediary steps in a value chain, reducing cost

to the consumer

Reintermediation: The shifting of the intermediary

role in a value chain to a new source, adding

additional value to the consumer

INDUSTRY RESTRUCTRING

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INDEPENDENCE OF LOCATION

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INTERNET TECHNOLOGY

The Internet is a global system

http://images.google.co.in/imgres?imgurl=http://www.sysolinc.com/images/abacus2.jpg&imgrefurl=http://www.sysolinc.com/home.html&usg=__zi9gg9jP91aUkwrTuPOU-_AiIJA=&h=502&w=384&sz=53&hl=en&start=7&um=1&tbnid=1i-Ck7kIWKu0HM:&tbnh=130&tbnw=99&prev=/images%3Fq%3Dinternet%2Btechnology%26hl%3Den%26sa%3DN%26um%3D1

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The Internetis a global system

of interconnected computer networks

that use the standard Internet Protocol Suite

(TCP/IP) to serve billions of users worldwide.

It is a network of networks that consists ofmillions of private and public, academic,

business, and government networks of local toglobal scope that are linked by a broad array ofelectronic and optical networking technologies.

The Internet carries a vast array of informationresources and services, most notably the inter-linked hypertext documents of the World WideWeb (WWW) and the infrastructure to support

electronic mail.

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Technology

DOMAIN NAMES: NAME OF WEB SERVER

.com represents any company such ashttp://www.travelagency.com

.co.uk represents a company based in the UK such ashttp://www.thomascook.co.uk/.

.ac.uk a UK based University (e.g. http://www.derby.ac.uk)

.org.uk or .org are not for profit organisations (e.g.www.greenpeace.org)

.net a network provider such as www.freeserve.net.

http://www.derby.ac.uk/http://www.greenpeace.org/http://www.greenpeace.org/http://www.derby.ac.uk/

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How it works client/server

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How it works - HTML

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Internet, intranet and extranet