Internet Facts
people go online each day in the USA (112 Million), how many send e-mails each day (97 Million), and how many have started a Blog (21 Million).
reasons for rapid internet growth
People want to get information rapidly and easily
People want to control the information they receive.
People like various ways of communicating virtually
(avoiding face-to-face?).
People like the increasing Internet speed.(i.e., Broadband)
Marketers appr
Interactive marketing
The two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.
Marketplace
Buyers and sellers engage in face-to-face exchange relationships in a material environment.
Marketspace
An Internet-enabled digital environment characterized by face-to-screen exchange relationships
6 reasons why consumers shop online (C's)
Convenience: Your location and your time.
Choice: Access to many different possibilities
Customization: Making the product what you want.
Communication: Interacting with marketers & others
Cost: Cheaper online prices...and special Web offers
Control: Onli
unique features of e-commerce technology
1) Ubiquity
2) Global Reach
3) Universal Standards
4) Information Richness
5) Interactivity
6) Information Density
7) Personalization/Customization
8) Social Technology
Ubiquity
Available almost everywhere and at all times.
global reach
The potential market size is roughly equal to the size of the online population of the world.
universal standards
The technical standards of the Internet are shared by all nations in the world.
information richness
Information that is complex and content-rich can be delivered without sacrificing reach.
interactivity
Two-way communication between the merchant and the consumer
information density
The total amount and quality of information available to all market participants is vastly increased and is cheaper to deliver
Price transparency
Consumers can easily comparison shop
cost transparency
Consumers can discover the actual costs that merchants pay for products.
price discrimination
Marketers can gather information about their consumers and segment the market pricing based on interest and passion
personalization/customization
Merchants can target their marketing messages to a person's name, interests and past purchases. They can change the product or service to suit the consumer's purchasing behavior and preferences.
social technology
User content generation and social networking technologies
ChoiceBoards
An interactive, Internet-enabled system that allows
individual customers to design their own products
and services by answering a few questions and
choosing from a menu of product or service
attributes (or components), prices, and delivery
options (e.g.,
Collaborative filtering
A process that automatically groups people with
similar buying intentions, preferences and behaviors,
and predicts future purchases ("Customers who
bought your item also bought...").
Personalization
The consumer-initiated practice of generating content
on a marketer's website that is custom-tailored to an
individual's specific needs and preferences
(e.g., My Yahoo page).
Permission Marketing
The solicitation of a consumer's consent to receive
e-mail and advertising based on personal data
supplied by the consumer.
customer experience
The sum total of the interactions that a customer has with a company's website, from the initial look at the homepage through the entire purchase decision process.
Companies create the Customer Experience by using the seven website design elements.
7 web site design elements (C's)
Context, Commerce, Connection, Communication, Community, Customization, Content
Context
sites layout and visual design
Commerce
Sites capabilites to enable commercial transactions
Connection
Degree that the site is linked to others
Communication
The way the site enables, site to site, user to site, or two way communication
Customization
sites ability to tailor itself to different users or to allow users to personalize the site
Community
the way that the site enables user to user communication
Content
text, pictures, videos and sound that the site contains
Click and Mortar
Women who shop online but actually buy products in traditional retail outlets.
hunter gatherers
Married couples w/kids who research and compare products and prices online.
Brand loyalists
Better-educated, affluent people who regularly visit bookmarked websites and spend the most money online.
time sensitive materialists
People who like the convenience of purchasing online and who go online to buy music, books, electronics and computer software.
Hooked online and single
Young, affluent, single online consumers who bank, play games and spend more time online than any other segment
ebivalent newbies
Relative newcomers to the Internet who seek information online, but rarely spend money online
eight second rule
A view that customers will abandon their efforts to enter and navigate a Website if download time exceeds eight seconds.
cookies
Computer files that a marketer can download onto the computer of an online shopper who visits the marketer's Website
viral marketing
An Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail.
bots
Electronic shopping agents or robots that comb Websites to compare prices and product or service features.
5 ways to evaluate website effectiveness
1) Average visits per month by unique visitors
2) Average time spent per visit by unique visitors
3) Number of website pages viewed in general
4) Average amount of time spent on pages
5) Sales and/or Inquires
Cost per thousand CPM
Advertiser pays for impressions in 1,000 unit lots
Cost per click CPC
Pre-negotiated fee for each click ad receives
Cost per action CPA
Pre-negotiated amount only when user performs a specific action
Hybrid
Two or more models used together (CPA, CPM, CPC)
In general, online marketing is more expensive on a CPM basis, but is more effective