Chapter 11 - Business to consumer Internet marketing

Learning objectives

In what ways do individuals engage in online shopping?

Over time customers expectations have changed for online shopping. Customers have a higher expectation than in the past, when engaging with an online e-Tailor. There are several things that customers expect when shopping online. One such expectation is the delivery of the product or service. Customers expect this to be sent in a timely fashion and, in fact, the customers that receive their product or service quickly will purchase from the same online store repeat times. Today, customers also want online businesses to respond to them in a timely manner when questions are posed to the business. A business should respond to the customer in the quickest manner possible, whether by phone, email, or some other channel to create a trust relationship with the customer. The business should also make sure that all products or services are available to the customer, which includes a wider variety of products or services. It should be easy for the customer to be able to find the product they need on the website, whether it be through navigation or through a search functionality. The customer also wants to feel as though the customer service is top notch and can follow through with any requests that they might make. All in all, the customers' perception and expectations have risen over the years, which has made if very important for businesses to adhere to the standards the customers are wanting from an online business.

Chapter 10 - Evaluation and improvement of digital channel performance

Learning objectives

What are the necessary tasks for managing an online presence?

There are six different tasks that are important when managing a website. The first includes creating the text that will be added to the website. This includes creating the process for approving website text, the formatting of the text, and any images that will be added to the text. This is important, because a business does not want to add inappropriate content or unformatted text to the website. The next task includes reviewing the website for text that maybe misspelled, contain grammatical errors, or changes that need to be made due to product or services that have changed. The business must also be constantly making corrections and updates to the website by modifying and text or images that needs to be changed, added, or removed on the website. A business must then publish any corrections they made to their website and then review further for any other changes that need to be updated. Testing needs to be involved at all stages to make sure there are no styling issues, technical issues, or any other issues that can be disastrous to the business. Lastly, the business will need to make the website modifications available to their customers.

Chapter 9 - Marketing communications using digital media channels

Learning objectives

What are the different types of digital channels?

There are many different types of digital channels that can be used by a business to use in online campaigns.

1. Search engine marketing (SEM) - This is used to gain top ratings on the search engines or the use of pay-per-click.
2. Online public relations (e-PR) - Exposing the business to third party websites such as social websites to maximize the number of people hearing about a product or service.
3. Online partnerships including marketing - This is used to build long term relationships with other companies that can expose the product or service being offered.
4. Interactive display advertising - The use of ads on other websites to draw people to the company's website through pay-per-click advertising.
5. Op-in email marketing - The use of email to communicate to customers that have signed up for e-newsletters or product updates through the company's website.
6. Viral and electronic word-of-mouth marketing - The use of Internet to create a massive awareness of a product or service through the use of video, social media, etc.

Chapter 8 - Campaign planning for digital media

Learning objectives

What is the main difference in the communications characteristics between digital and traditional media?


The main differences in communications characteristics between the traditional and digital media is that that traditional media is considered push media, whereas digital media is pull media. With traditional media the company may use print, television, or radio to engage the customer. The information is considered unidirectional or from the company to the customer. Digital media is considered pull media, which means that a website ad will pull the customer to the company. Examples of pull media would be information emails, e-newsletters, and search engine.

Chapter 7 - Delivering the online customer experience

Learning Objectives

What are the stages involved in the development of a new website or re-launch of an existing website?

When developing a website, whether new or redesigning, there are a few stages that a business must plan on going through. The first stage is the pre-development tasks, which include the some of the initial technical planning of the website. This might include, where the website will be hosted, what the domain name will be, and what the basic objectives of the website will be.

The second stage includes the analysis and design of the website.  Tasks included in the analysis and design stage might include developing the business rules, business objectives, identifying the audience, and prototyping the website. This is an important part of the development process, because it lays the framework for the outcome of the website's success.

The third stage includes content development and testing. The business must decide what messages are going to be contained in the website. They would also producing any graphics, database integration, and any usability and performance testing. At this stage the website must be tested on all popular web browsers to make sure the website is consistent across them all.

The forth stage of development includes launching the website. This includes making the website live to the public.

The fifth stage of developing a website is to promote the website. This includes optimizing the website for search engines or putting a small public relations article in the local newspaper. The business, at this stage, wants to get the word out to the public that they have a website and they want people to come to the website.

The sixth and final stage is the ongoing promotion of the website. The business would use the ongoing promotions to create discounted promotions, search all the major search engines to make sure the website is optimized on the search engines, use pay-per-click marketing, etc. This is an important part of the process to make sure the online business is growing and maturing.

Internet Marketing Video - E-commerce Evolution

The above video is about the evolution of e-commerce, which is an important part of commerce history world wide. With the invention of the Internet, a few businesses blazed a path of discovery that has led to new and inventive ways to deliver products and services to people all over the world. Many of these businesses set standards that are now used today in the development and online management of e-commerce websites. They also created inexpensive ways to deliver their products and services to their customers, by using the Internet as a tool in marketing. More importantly, if these businesses had not explored this new medium without hesitation, businesses today would not be reaping the benefits the Internet has provided in changing the way businesses do commerce.

Virtual Value Chain

The virtual value chain is essentially a business model created to allow businesses to find added value by using information that is obtained online or in the “virtual” environment to create new products or services, adding new value to the businesses current line of products or services. Many company use information they obtain from the sales of their products or services to better understand their customers. An example of this would be the emergence of online tracking by Federal Express. By creating this free service that people can use online any time, Federal Express created value for their customers, increasing their customer loyalty. Another example of the virtual value chain is banks offering services such as free online banking or online bill pay. These types of services add value to their existing business products, checking accounts.

The process of a business to create value in the “virtual world” entails them to gather, organize, select, synthesize, and distribute the information in a way that will allow them to exploit new opportunities or added value. By following these steps, a business can collect the raw data and add value to existing products or services. The raw data can be used by the business to create a closer relationship with their customers and also learn more about the products or services they offer.

References:

• http://tutor2u.net/ebusiness/ebusiness-strategy-business-models.html
• http://www.oc.edu:2184/login.aspx?direct=true&db=bth&AN=6648066&site=ehost-live
• http://www.oc.edu:2184/login.aspx?direct=true&db=bth&AN=9708062887&site=ehost-live
• http://www.oc.edu:2184/login.aspx?direct=true&db=bth&AN=507204&site=ehost-live

Chapter 6 - Relationship marketing using the Internet

Learning objectives

What is the importance database marketing on the Internet?

Database marketing is very important on the Internet. It allows businesses to gather data about their customers and then it creates a way for the business to understand the customer better. When the company better understands the customers, customers will purchase more. Database marketing can be used in several ways. The first is to allow the business to send to the customer, promotions that pertain to the customer. The second way the database marketing is important is that it allows businesses to create e-newsletters, which can contain information on how to use the products, or how what is new in the products. They can be very useful in keeping customers engaged.

What kind of technology can a business use to create a one-to-one relationship with their customer?

There are many types of tools that can are created to help with the one-to-one relationship with customers. One such tool would be online chat. This technology can be used for many different aspects by a business to grab the attention of their customers. One way for chat to be used to for customer service. A business can setup a live chat area where customers can get a hold of customer service representatives online at anytime of the day. This will create a satisfaction by customers, because they have a way to easily contact a company without delay. Another thing chat is used for is for sales representatives to help customers while they are online. When a customer comes online, the sales person connects to the customer by asking them if they need any type of help. This can be convenient for customers if they have any questions.

What are the characteristics of the tools that are required to create a one-to-one relationship with customers?

Some of the tools that are required to create one-to-one relationships must be smart enough to understand what the customers needs are. For instance, Amazon has implemented a special program that tells people, once you have purchased from there several times, what other people have bought with the purchases the customer is about to buy. This creates a satisfaction between the customer and the business, because they understand what it is the customer really wants. 

Questions for marketers

How can the Internet be used to support the different stages of the customer lifecycle?

There are many different ways that a company can use the Internet to support the different stages of the customer life-cycle. One such way is to use web analytics to track the customer as they go through the website. It can create a way for the business to track how where the customer is going, where they are coming from, if they are new to the website, or many other statistics. These statistics can then be used to figure out how where the customers go as they enter the sales cycle. This can be very important to a business, in that it allows the business to see the trends of a website.

How do I implement permission marketing?

One such permission marketing is the opt-in options. The opt-in option is placed on a website where, in most cases, the customer enters their personal data as a profile. When the opt-in option is checked, the customer is agreeing to the terms that they want to receive information in the future. In most cases is emails, but they can also include postal, or other forms. Permission marketing also allows a business to categorize customers, by allowing them to check what they like to do in their spare-time or how many people are in their company. This allows businesses to segment these customers to create a more one-to-one relationship with the customers.

What do personalization and mass customization mean and how should I apply them in my marketing? 

There are many different forms of personalization or customization on the Internet. These allow customers create a product or user interaction on the website in a more personable way. For instance, Dell allows customers to create a computer that they want by selecting what they want on the computer or how it looks. These types of personalization allows customers to be satisfied, it also allows the business to save money by creating the product at the time it is ordered.

 

Chapter 5 - The Internet and the marketing mix

Learning Objectives

How does one apply the elements of the marketing mix in an online context?

When a business looks at the marketing mix in an online context the must look at each of the following:

• Product
• Promotion
• Price
• Place
• People
• Process
• Physical evidence

Creating a strategy for each one of these will allow the business to understand the bigger piece of how their business works.

What opportunities does the Internet make available for varying the marketing mix?

The Internet allows businesses to be very flexible when using it to market their product. The business can use the Internet to create a very robust customer service, which can be really beneficial to both the customer and the business. The Internet can also be used to understand the consumer in a more detailed way. First by using a website, the business can track how the customer interacts with the content and also allows them to track the sales as they happen. This can give a business very good insight into how what their customers buy. With the gathering of the customer information, the business can use the data to send out mass e-newsletters, which will keep customer's coming back the website for updates in products, deals, or even information on how to use the products. The Internet is a vast space of information, which can be used by the businesses to develop a closer relationship to their customer.

What opportunities does online brand-building provide?

Branding provides many opportunities that allow a business to grow their business. A business can create the promise of convenience for their customers. The promise of convenience will allow the customer to easily purchase a product or service, than a real world purchase. It can also provide a more convenient way of purchasing a product or service than with competing businesses, either brick and mortar or online.  Branding also provides a business the promise of achievement by providing ways to the customer to support or help obtain goals in their day to day business. Another benefit branding provides is the promise of fun and adventure for their customers. This type of interaction creates the type of relationship between the business and customers that benefit both parties. The business can also promise self-expression and recognition, which allows customers to customize the online experience. Lastly, branding provide a way for customers to get a sense of belonging by way of online social communities.

Questions for marketers

How are the elements of the marketing mix varied online?

The framework to apply a varied marketing mix online is called the 7 P's. This includes product, promotion, price, place, people, process, and physical evidence. By using these in an Internet marketing strategy, a business can improve current processes and discover new opportunities.

The product refers to the what is being offered by a business. A business needs to analyze what is it is selling in order for it to be successful. This includes looking at the quality, image, branding, features, variants, mix, support, customer service, the use of the product or service, the availability of the product or service, and the warranties being offered in order to improve on the current products or services.

The promotion refers to how the product or service is being presented to the consumers of the business. Is it reaching the consumers? Are there tools that will allow the business to reach new and existing consumers? These are questions that need to be asked by the business in order to be effective. Creating the strategies that bring the customers to do business increases awareness of the product or services.

The price refers to the pricing model being implemented by the business. Creating the right pricing model is crucial to a business. By analyzing the current pricing model, a business can figure out the right pricing mix and increase customer satisfaction.

The people refers to how the internal staff is being utilized to support the e-commerce business processes. This includes who is doing the marketing activities, who is calling the customers, who is selling, who is keeping up with the culture and image of the business, how can we train our employees to better respond to the customer needs, and how can we utilize the employees to create an added-value to the product or service. When all internal staff are working together, there is an increase in proficiency of the business processes.

The process refers to how the business is focusing on streamlining the business processes. This includes activities such as focusing on the customer needs, planning for the future, how the infrastructure is going to be supported, improving the customer experience, and research and development. Business processes are important to making the business run smoothly.

The physical evidence refers to how the business responds to both the internal staff and the customers. A business must understand and meet the needs of their customers. Analyzing how these customers are making purchase and through what channels allows a business to put the correct processes into place to satisfy their customers.

What are the implications of the Internet for brand development?

Branding is an important part of the business and the Internet has magnified the importance of branding. When customers come to a company website they may have no or small perception of what the company stands for. By not taking the appropriate steps to create a good brand, the company might give the customers a bad perception, in which case the customer may not want to come back. First impressions are everything, especially on the Internet where there maybe little or no contact. With the right combination of branding, such as a good user experience or great customer service, the business can create an online environment that invites their customer back repeatedly.

Can the product component of the mix be varied online?

Yes, the product component of the marketing mix can be varied online. The product component part of the marketing mix refers to the understanding of the product, service, or brand being offered by the product. When analyzing the marketing mix for the product, the business needs to split the product into two categories. The first is the core product, which is the main product being offered to the customers. The second is the extended product, which is additional services and benefits that are built around the core product.

How are companies developing online pricing strategies?

There are four ways businesses are developing online pricing strategies, all of which are important in determining the right pricing model. The first strategy is to increase the price transparency and how it affects differential pricing. A very good example of this would be differentiating customers from different countries. The second strategy is to put downward pressure on the pricing. Downward pressure is created by the transparency in pricing along with the increased competitiveness in an industry. The third strategy is to create new pricing approaches, which might include dynamic pricing, price testing, and auctions. With the invention of the Internet, there has been an increased usage of new and exciting pricing models. Creating an inventive way to new pricing, can make for a great strategy and give a business the competitive edge it needs to thrive. The final strategy is to create alternative pricing structures or policies. Good examples of alternative pricing structures that would work on the Internet include basic price, discounts, add-ons and extra products and services, guarantee and warranties, refund policies, and order cancellation terms.

Does 'place' have relevance online?

Place is very relevant to an online business. The place refers to how the product is distributed to the customers. There are four different place aspects of the Internet marketing mix. These include place of purchase, new channel structures, channel conflicts, virtual organizations.

Chapter 4 - Internet marketing strategy

Learning Objectives

How does Internet marketing strategy relate to both marketing and business strategy?

The Internet marketing strategy is basically a part of the bigger picture in the traditional marketing strategies. It allows a business to create a set of goals, so that the business can manage this part of the multichannel marketing of the company. The Internet marketing strategy also relates to the business strategy by ways of making sure that all of the Internet marketing strategies align with what the business is trying to accomplish. 

Chapter 3 - Internet macro-environment

Learning Objectives

How does a macro-environment impact the execution of an organization's Internet marketing strategy?

There are several key macro-environment elements that can impact the Internet marketing strategy of a business. Each element can impact a strategy in their own unique way, which is why a business needs to plan for each one carefully.


The first type of element that can impact a business Internet marketing strategy is society in which they sell their product or service. Society influences how a person will use the Internet and if they will buy a product or service online. There are some societies that do not have access to high-speed Internet, which can lead to them not buying online. In some societies, people do not have the trust in buying products or service online, because they paying cash when making purchases. All of these factors can shape the way a business creates and executes their Internet marketing strategy.

Marketing Mix

There are many marketing strategies that can be used by a business in order to make their e-commerce business successful. In the following summary we will work our way through some of the more important aspects of e-commerce marketing strategies.

The Product

One important part of the marketing strategy would be the product or service. The product or service, itself, has to be marketable. The product or service must meet the needs of the customers being targeted. One way to meet the needs of the customers and insure there is a demand for a product is to use mass customization. This allows a customer to choose the exact specifications they want from your product or service. It is a huge competitive advantage for a business, because there is cost savings associated to producing a product or service that a customer wants. There is also a satisfaction from the customer side of things, because they get only what they need.

Chapter 2

Learning Objectives

How does society effect a company's Internet marketing strategies? 

Society is a major driving force when it comes to sell products or services and can be very damaging to a business if they do not focus on the needs of the society they are involved with. There are many contributing factors that one needs to take into account, when creating an Internet marketing strategy.  The customers location can be a huge factor in the success of a business.  For example, a business selling a product or service online might not get the same response from people in the U.S. compared to say a person in India.  There are many barriers such as religion, laws, and even the cultures of the customer.

Chapter 1

Learning Objectives

What important role does the Internet play in the customer-centric multichannel marketing concept?

One of the most important role the Internet plays in the customer-centric multichannel marketing is the close relationship a business can get with the consumers that are buying their products and services.  With the use of customization, the company can do many things that will allow them to better understand the people they sell their products or services to.  The Internet also allows a company to become an international competitor almost instantaneously, because of the access around the world to the Internet.  The Internet has allowed company's to provide better customer service and quality control, by interacting with the customer on the new social media or through their own websites with such things and live chat, blogs, or surveys.

Mass Customization

Mass customization is the ability to take a product or service and customize it to the consumers specific wants and needs.  This allows a company to have a strategic advantage over their competitors and it also gives the product or services a better added value. With the invention of the Internet most businesses are now able to integrate this model into their Internet marketing strategies, thus making the products or services more attractive to their customers and a lot cheaper on themselves.  A good example of mass customization would be ordering a computer from an online computer manufacturer such as Dell.  When a customer comes to their website, they are able to select the properties and functionality they want on the computer.  This allows the person to better customize their computer for their personal needs such as gaming, photos, or even web development.  Other examples of the use of mass customization would be computer software, which can be tailored to the needs of the customers that need the software to provide specific functionality for the company’s business processes.  By allowing for the customization of products and services, companies save time and money that they have not been able to do in the past.