CHAPTER 1

INTRODUCTION TO INTERNET MARKETING

WHAT IS INTERNET MARKETING?

The process of building and maintaining customer relationships
through online activities to facilitate the exchange of ideas,
products, and services that satisfy the goals of both sellers and
buyers.

WHAT IS INTERNET MARKETING?

Components of the definition:

Process
Building and maintaining customer relationships
Online
Exchange
Satisfaction of goals for both parties

PROCESS
Seven stages of internet marketing process:

Framing the market opportunity

Formulating marketing strategy
Designing the customer experience
Crafting customer interface
Designing the marketing programs
Leveraging customer information through technology
Evaluation

Must be coordinated and consistent

BUILDING AND MAINTAINING CUSTOMER

RELATIONSHIPS
Part of the goals of marketing is to build and maintain beneficial
(profitable) customer relationships

A shift from simply create sales to creating loyalty to brand or

business

Awareness exploration commitment

IM to build both offline and online relationships
Could be part of a broader campaign to satisfy customers
(supplementary)

ONLINE
IM deals with levers that are available in the world of the
Internet

The success of IM rest with traditional, offline marketing

vehicles

EXCHANGE
The core of both online and offline marketing programs
Cross-channel exchanges

IM must be evaluated according to overall exchange impact (both

online and offline)

SATISFACTION OF GOALS OF BOTH

PARTIES
Happy and satisfied customers
Firm is able to meet its financial obligations to employees,
suppliers, or shareholders

Win-win situation

A NARROW VS BROAD VIEWS

Marketing Resource
Allocation
Lo Bric
ca kstio andn Mort
of
ar
Re
ve Onli
nu ne
e
St
re
a
m

Offline

Online

Cell 4

Cell 2

Cell 3

Cell 1

A NARROW VS BROAD VIEWS

Cells

Explanation

Cell 1

Online marketing effort + online sales revenue

Cell 2

Online marketing effort + increase revenue offline

Cell 3

Offline marketing effort + increase traffic and revenue online

Cell 4

Offline marketing effort + offline sales revenue

A NARROW VS BROAD VIEWS

Cell 1 represent a narrow view of IM when one could argue
that this is the only truly measurable effect of IM

A combination of Cell 1, 2 and 3 conforms to the broadened

view of IM a cross channels marketing efforts

However, the total cross channels marketing efforts (all four

quadrants) must be take into consideration to produce a truly
coordinated and integrated IM strategy

THE SEVEN STAGES OF INTERNET

MARKETING
Framing the market opportunity
Formulating marketing strategy
Designing customer experience
Crafting customer interface
Designing marketing program
Leveraging customer information through technology
Evaluating the marketing program

THE SEVEN STAGES OF INTERNET

MARKETING
Framing the market opportunity
Look for opportunities

Formulating marketing strategy

Designing customer experience
Crafting customer interface
Designing marketing program
Leveraging customer information through technology
Evaluating the marketing program

THE SEVEN STAGES OF INTERNET

MARKETING
Framing the market opportunity
Formulating marketing strategy
IM based upon overall marketing strategies of the firm
Tightly aligned with business-unit strategy
Include both offline and online marketing activities

Designing customer experience

Crafting customer interface
Designing marketing program
Leveraging customer information through technology
Evaluating the marketing program

THE SEVEN STAGES OF INTERNET

MARKETING
Framing the market opportunity
Formulating marketing strategy
Designing customer experience

What customer experience must be delivered to meet the market opportunity

Correlate with firms positioning and marketing strategy

Crafting customer interface

Designing marketing program
Leveraging customer information through technology
Evaluating the marketing program

THE SEVEN STAGES OF INTERNET

MARKETING
Framing the market opportunity
Formulating marketing strategy
Designing customer experience
Crafting customer interface

Look-and-feel
Interaction between customer and firm through online mediation

Designing marketing program

Leveraging customer information through technology
Evaluating the marketing program

THE SEVEN STAGES OF INTERNET

MARKETING
Framing the market opportunity
Formulating marketing strategy
Designing customer experience
Crafting customer interface
Designing marketing program
Combination of marketing actions to move target customers from awareness to commitment

Leveraging customer information through technology

Evaluating the marketing program

THE SEVEN STAGES OF INTERNET

MARKETING
Framing the market opportunity
Formulating marketing strategy
Designing customer experience
Crafting customer interface
Designing marketing program
Leveraging customer information through technology
Use technology to maintain customers information more effectively and efficiently

Evaluating the marketing program

THE SEVEN STAGES OF INTERNET

MARKETING
Framing the market opportunity
Formulating marketing strategy
Designing customer experience
Crafting customer interface
Designing marketing program
Leveraging customer information through technology
Evaluating the marketing program

Evaluation of the overall IM program

Balanced focus on both customer and financial metrics

CRITICAL SUCCESS FACTORS FOR

INTERNET MARKETING EXECUTIVES
Customer advocacy and insight
Integration
Balanced thinking
Passion and entrepreneurial spirit
Willingness to accept risk and ambiguity

CRITICAL SUCCESS FACTORS FOR

INTERNET MARKETING EXECUTIVES
Customer advocacy and insight

Provide added value to customer interaction to form the basis for a

meaningful relationship

Integration
Balanced thinking
Passion and entrepreneurial spirit
Willingness to accept risk and ambiguity

CRITICAL SUCCESS FACTORS FOR

INTERNET MARKETING EXECUTIVES
Customer advocacy and insight
Integration

New channel & communication medium

Must be consistent across all channel

Balanced thinking
Passion and entrepreneurial spirit
Willingness to accept risk and ambiguity

CRITICAL SUCCESS FACTORS FOR

INTERNET MARKETING EXECUTIVES
Customer advocacy and insight
Integration
Balanced thinking
One-to-one marketing and mass marketing
Technologically savvy to leverage the rapid learning environment and
accelerated decision making process

Passion and entrepreneurial spirit

Willingness to accept risk and ambiguity

CRITICAL SUCCESS FACTORS FOR

INTERNET MARKETING EXECUTIVES
Customer advocacy and insight
Integration
Balanced thinking
Passion and entrepreneurial spirit

Differentiate leaders from followers

Willingness to accept risk and ambiguity

CRITICAL SUCCESS FACTORS FOR

INTERNET MARKETING EXECUTIVES
Customer advocacy and insight
Integration
Balanced thinking
Passion and entrepreneurial spirit
Willingness to accept risk and ambiguity

Retool to enter new era of customer centric marketing

Customer have more knowledge and choices
Shift in balance of power towards customer