Security

We now focus on security technology, which is, like privacy, a major concern for Internet users. Security fears are a major barrier to e-commerce adoption, by both businesses and consumers. When a customer of an e-commerce site enters their credit card details, these are typically stored on servers of the merchant (retailer) of the third party. Once here, they are vulnerable to downloading by hackers who can use the numbers for fraudulent purchase. Customers may lose the first 50, if the credit...

Jvk

Backbones High-speed communications links used to enable Internet communications across a country and internationally. Balanced scorecard A framework for setting and monitoring business performance. Metrics are structured according to customer issues, internal efficiency measures, financial measures and innovation. Bandwidth Indicates the speed at which data are transferred using a particular network medium. It is measured in bits per second (bps). kbps (one kilobit per second or 1000 bps a...

A

Above the fold A term, derived from printed media, which is used to indicate whether a banner advertisement or other content is displayed on a web page without the need to scroll. This is likely to give higher clickthrough, but note that the location of the 'fold' within the web browser is dependent on the screen resolution of a user's personal computer. Access platform A method for customers to access digital media. Access provider A company providing services to enable a company or individual...

Note on link building

You can use the syntax link site in Google to see the number of quality links into a page on your site as judged by Google, e.g. www.davechaffey.com. Note this also includes internal links. To exclude internal links and include pages with lower page rank or that do not have a true hyperlink, but contain the URL, search on Google for this www.url.com - site www.url.com. www.davechaffey.com - site www.davechaffey.com An online diary or news source prepared by an individual or a group of people....

Introduction

A company that has developed a great online customer experience as discussed in Chapter 7 is only part-way to achieving successful Internet marketing outcomes. In the days of the dot-com boom a common expression was 'If you build it, they will come'. This famous line proved true of a baseball stadium built in the 1989 film Field of Dreams, but unfortunately, it doesn't apply to web sites. Berthon et al. (1998) make the analogy with a trade fair. Here, there will be many companies at different...

Perceived risk and trust

Literature suggests the online trading arena is intrinsically different from any other channel to market and in essence is an unfamiliar environment (Rutter, 2001). Online consumers are buying into a trading situation that is inherently laden with uncertainty, lack of cues to reinforce trusting relationships and risk. Risk and trust are multi-dimensional constructs and have been found to improve online sales effectiveness if perceived risk is reduced and trust established. Perceived risk...

Stage 1 Attract new and existing customers to site

For new customers, the goal is to attract quality visitors who are likely to convert to the site using all the online and offline methods of site promotion described in Chapter 8, such as search engines, portals and banner advertisements. These promotion methods should aim to highlight the value proposition of the site and it is important to communicate a range of incentives such as free information or competitions (and others shown in top left box of Figure 6.7). To encourage new users to use...

CRM technologies and data

Database technology is at the heart of delivering these CRM applications. Often the database is accessible through an intranet web site accessed by employees or an extranet accessed by customers or partners provides an interface onto the entire customer relationship management system. E-mail is used to manage many of the inbound, outbound and internal communications managed by the CRM system. A workflow system is often used for automating CRM processes. For example, a workflow system can remind...

Stage 2a Incentivise visitors to action

The first time a visitor arrives at a site is the most important since if he or she does not find the desired information or experience, they may not return. We need to move from using the customer using the Internet in pull mode, to the marketer using the Internet in push mode through e-mail and traditional direct mail communications (Chapter 8). The quality and credibility of the site must be sufficient to retain the visitor's interest so that he or she stays on the site. To initiate...

Marketing applications of CRM

A CRM system supports the following marketing applications Sales force automation (SFA). Sales representatives are supported in their account management through tools to arrange and record customer visits. Customer service management. Representatives in contact centres respond to customer requests for information by using an intranet to access databases containing information on the customer, products and previous queries. It is more efficient and may increase customer convenience if customers...

Approaches to implementing eCRM

E-CRM uses common approaches or processes to achieve online customer acquisition and retention. Refer to Figure 6.5 for a summary of a common, effective process for online relationship building to achieve the different stages of the customer lifecycle. In the following sections we proceed through the different stages in more detail.

Info

Moderate current and future potential value. An owner of average loyalty who replaces their car every three to four years and has a tendency to repurchase from brand. Not a key segment to influence. But should encourage to subscribe to e-newsletter club and deliver targeted messages around time of renewal. High satisfaction, moderate loyalty. Low future and potential value. A satisfied owner but tends to buy second-hand and keeps cars until they have a high...

Belowzero customers BZCs

BZCs are simply unprofitable customers. The strategy for these customers may vary -they can be encouraged to develop towards MGCs, but more typically expenditure will be minimised if it is felt that it will be difficult to change their loyalty behaviour or the source of their being unprofitable. Again, digital media can be used as a lower-cost form of marketing expenditure to encourage these customers to make repeat purchases or to allow them to self-serve online. Figure 6.2 Categorising...

Permission marketing

Permission marketing is a significant concept that underpins online CRM throughout management of the customer lifecycle. 'Permission marketing' is a term coined by Seth Godin. It is best characterised with just three (or four) words anticipated, relevant and personal and timely . Godin (1999) notes that while research used to show we were bombarded by 500 marketing messages a day, with the advent of the web and digital TV this has now increased to over 3000 a day From the marketing...

Benefits of relationship marketing

Relationship marketing is aimed at increasing customer loyalty or retention within a current customer base which is highly desirable for the following reasons Effectively no acquisition costs (which are usually far higher than 'maintenance' costs) Less need to offer incentives such as discounts, or to give vouchers to maintain custom (although these may be desirable) Less price-sensitive (loyal customers are happy with the value they are getting) Loyal customers will recommend the company to...

Mostvaluable customers MVCs

These are the customers who contribute the most profit and are typically a small proportion of the total customer base as suggested by their position in the pyramid. These customers will likely have purchased more or higher-value products. The strategy for these customers focuses on retention rather than extension. In the case of a bank, personal relationship managers would be appointed for customers in this category to provide them with guidance and advice and to make sure they remain loyal....

How car manufacturers use loyaltybased segmentation

An approach to reconciling customer satisfaction, loyalty, value and potential is to use a value-based segmentation. This modeling approach is often used by car manufacturers and other companies who are assessing strategies to enhance the future value of their customer segments. This approach involves creating a segmentation model combining real data for each customer about their current value and satisfaction and modeled values for future loyalty and value. Each customer is scored according to...

Customer data management at Deutsche Bank

Deutsche Bank is one of the largest financial institutions in Europe, with assets under management worth 100 billion euros ( 60 billion). It operates in seven different countries under different names, although the company is considering consolidating into a single brand operating as a pan-European bank. In 1999 its chairman, Dr Walther, said the company had to improve its cost-to-revenue ratio to 70 per cent from 90 per cent and add 10 million customers over the next four to eight years. That...

Key concepts of relationship marketing

'Consistent application of up to date knowledge of individual customers to product and service design which is communicated interactively in order to develop a continuous and long term relationship which is mutually beneficial' (Cram, 1994 , One-to-many communication between a company and potential customers, with limited tailoring of the message, The approach to Internet marketing function is based on customer behaviour within the target audience and then seeks to fulfil the needs and wants of...

Examination questions

1 When evaluating the business benefits of a web site, which factors are likely to be common to most companies 2 Use Porter's five forces model to discuss the competitive threats presented to a company by other web sites. 3 Which factors will affect whether the Internet has primarily a complementary effect or a replacement effect on a company 4 Describe different stages in the sophistication of development of a web site, giving examples of the services provided at each stage. 5 Briefly explain...

Online PR activities

Activities which can be considered to be online PR include (a) Communicating with media (journalists) online (d) Managing how your brand is presented on third-party sites (e) Creating a buzz - online viral marketing. (a) Communicating with media (journalists) online Communicating with media (journalists) online uses the Internet as a new conduit to disseminate press releases through e-mail and on-site. Options to consider for a company include setting up a press-release area on the web site...

Personalisation and mass customisation

Web-based personalisation involves delivering customised content for the individual, through web pages, e-mail or push technology. Mass customisation is the creation of tailored marketing messages or products for individual customers or groups of customers typically using technology to retain the economies of scale and the capacity of mass marketing or production. The potential power of personalisation is suggested by these quotes from Evans et al. (2000) that show the negative effects of lack...

Online value proposition

Visit the web sites of the following companies and, in one or two sentences each, summarise their Internet value proposition. You should also explain how they use the content of the web site to indicate their value proposition to customers. 1 Tektronix (www.tektronix.com). 2 Handbag.com (www.handbag.com).

The electronic marketplace

Rayport and Sviokla (1995) introduced the term electronic marketspace and suggest it is a new environment which has implications for the way in which businesses trade. The speed of development of computer, network and Internet technologies has played a key role in the rapid expansion of the marketspace and subsequently the commercial practice of electronic trading. It should be remembered, however, that electronic trading per se is not a new phenomenon commercial exchanges have taken place...

C Trusted feed

This form of search advertising is less widely used, so we will only cover it briefly. In trusted feed, the ad or search listings content is automatically uploaded to a search engine from a catalogue or document database in a fixed format which often uses the XML data exchange standard (see www.w3.org XML). This technique is mainly used by retailers that have large product catalogues for which prices and product descriptions may vary and so potentially become out-of-date in the SERPs. A related...

P

Page impression One page impression occurs when a member of the audience views a web page. (See also Ad impression and Reach.) PageRank A scale between 0 to 10 used by Google to assess the importance of web sites according to the number of inbound links or backlinks. Page request The process of a user selecting a hyperlink or typing in a uniform resource locator (URL) to retrieve information on a specific web page. Equivalent to page impression. Page view See Page impression. Pay-per-click...

Channel profitability

A contribution to business profitability is always the ultimate aim of e-commerce. To assess this, leading companies set an Internet contribution target of achieving a certain proportion of sales via the channel. When easyJet (www.easviet.com) launched its e-commerce facility in 1998, it set an Internet contribution target of 30 by 2000. They put the resources and communications plan in place to achieve this and their target was reached in 1999. Assessing contribution is more difficult for a...

Comparing apples to oranges

With hundreds of different web analytics tools being used on different sites, it is important that there are standards for measuring visitor volumes. In particular, there are different techniques for measuring unique visitors which can be measured through IP addresses, but this is more accurate if it is combined with cookies and browser types. International standards bodies such as the Web Analytics Association (www.webanalvticsassociation.ora) and UK organisations such as ABCelectronic...

Collecting site outcome data

'Site outcome data' refers to a customer performing a significant action which is of value to the marketer. This is usually a transaction that is recorded. It involves more than downloading a web page, and is proactive. Key marketing outcomes include registration to site or subscriptions to an e-mail newsletter requests for further information such as a brochure or a request for a callback from a customer service representative responding to a promotion such as an online competition a sale...

Channel satisfaction

Customer satisfaction with the online experience is vital in achieving the desired channel outcomes, although it is difficult to set specific objectives. Online methods such as online questionnaires, focus groups and interviews can be used to assess customers' opinions of the web site content and customer service and how it has affected overall perception of brand. Customer satisfaction indices. These are discussed in Chapter 7 and include ease of use, site availability and performance, and...

Channel buyer behaviour

Once customers have been attracted to the site we can monitor content accessed, when they visit and how long they stay, and whether this interaction with content leads to satisfactory marketing outcomes such as new leads or sales. If visitors are incentivised to register on-site it is possible to build up profiles of behaviour for different segments. It is also important to recognise return visitors for whom cookies or login are used. Bounce rates for different pages, i.e. proportion of single...

Performance management for Internet marketing

A process used to evaluate and improve the efficiency and effectiveness of an organisation and its processes. The process by which metrics are defined, collected, disseminated and actioned. To improve results for any aspect of any business, performance management is vital. As Bob Napier, Chief Information Office, Hewlett-Packard was reported to have said back in the 1960s, You can't manage what you can't measure. The processes and systems intended to monitor and improve the performance of an...

Links to other chapters

This chapter should be read in conjunction with these chapters > Chapter 4 describes the development of an Internet marketing strategy. The aim of measurement is to quantify whether the objectives of this strategy have been achieved > Chapter 7 describes how to set up a web site, and should be read before this chapter to introduce the reader to concepts of web site development > Chapter 8 describes methods of promoting a web site. It should be read before this chapter since one aspect of...

References

Agrawal, V., Arjona, V. and Lemmens, R. (2001) E-performance the path to rational exuberance, McKinsey Quarterly, No. 1, 31-43. Atlas DMT (2004) The Atlas Rank Report How Search Engine Rank Impacts Traffic not dated . Atlas DMT Research (www.atlassolutions.com). Berthon, P., Lane, N., Pitt, L. and Watson, R. (1998) The World Wide Web as an industrial marketing communications tool models for the identification and assessment of opportunities, Journal of Marketing Management, 14, 691-704....

Internet Marketing Implementation And Practice

In Part 3 particular issues of the execution of an Internet marketing strategy are described, including development of a web site and ensuring a quality customer experience (Chapter 7), marketing communications to promote a site (Chapter 8) and the maintenance and evaluation of an online presence (Chapter 9). In Chapters 10 and 11, specific examples are given of how business-to-consumer and business-to-business companies are using the Internet. Delivering the online customer experience p.30i...

New Napster in 2005

Fast forward to 2005 and Napster now has around 410,000 subscribers in the United States, Canada and the United Kingdom who pay up to 14.95 each month to gain access to about 1.5 million songs. The company is seeking to launch in other countries such as Japan through partnerships. The online music download environment has also changed with legal music downloading propelled through increasing adoption of broadband, the success of Apple iTunes and its portable music player, the iPod, which by...

Lastminutecom establishing and maintaining a competitive position

Retailing online renders one of the established mantras of the fixed location retailer 'location location location' redundant. So how are the new e-retailers establishing and maintaining a competitive position in the Internet's marketspace lastminute.com was an early leader with its development of a web site which operated as an online travel agent and retailer (see Figure 10.9). The company founded by Martha Lane Fox and Brent Hoberman in 1998 has recently been acquired by Travelocity and...

Stage 2 Defining the performance metrics framework

Measurement for assessing the effectiveness of Internet marketing can be thought of as answering these questions 1 Are corporate objectives identified in the Internet marketing strategy being met 2 Are marketing objectives defined in the Internet marketing strategy and plan achieved 3 Are marketing communications objectives identified in the Internet marketing plan achieved How efficient are the different promotional techniques used to attract visitors to a site These measures can also be...

Aol 474

Application service provision 501 Archie 515 Argos 471 Armstrong, A. 288-9, 467 Aronson, R. 392, 395 ASDA 473 authentication of contracts 115, 131 see also security methods autoresponders 245, 246, 515 availability see security methods avatar 515 Avon cosmetics 241 backbone 27, 515 Baker, W. 231, 234 Bakos, Y. 487 balanced scorecard 172-3, 515 Ballantine, J. 453 bandwidth 310, 515 banner advertisement 395, 515 buying 395 Banting, P.M. 502 bargain hunters 78 Baron, R. 396 barriers to entry,...

Growth volume and dispersion of electronic markets

Ellis-Chadwick et al. (2002) found size to be an important indicator of whether a company would a) have a web site and b) have developed a fully transactional web site. They posited, the larger the retail organisation in terms of number of outlets the more likely they are to have both a) and b) in place. They suggested this may be because those retailers with the largest network of outlets might have most to lose should they be left as observers, rather than active participants, in a vibrant...

Online video advertising

Jupiter Research projects that streaming media advertising spending will increase 79 , from 140 million in 2004 to 251 million in 2005. To put these numbers in context total online advertising for 2004 was an estimated 9.3 billion or 4.6 of the 257 billion total advertising market. (Source JupiterResearch Internet Advertising Model, July 2005 (US only)) 'While online video advertising is still a small segment,' Interactive Advertising Bureau (IAB) president Greg Stuart says, 'we recognise it as...

G 125

Frequency analysis in LTV 283 frequently asked questions (FAQs) 245 Friedman, L. 195, 421 Furey, T. 195, 421 Gabbott, M. 225 Galbraith, R. 336 Garino, J. 191, 202 Gartner 118-19 Gates, B. 485 Gattiker, U.E. 496 general packet radio services (GPRS) 314, 522 global (generic) top-level domain names (gLLTD) 27, 522 globalisation 136, 137-8, 522 Godell, L. 123-4 Godin, S. 268-9, 401 Goldenberg, D. 491 Google 21, 87, 485, 492 gopher 522 government markets in B2B 494 government-to- business (G2B) 13...

Stage 1 Creating a performance management system

The essence of performance management is suggested by the definition for performance measurement used by Andy Neely and co-workers of Cranfield School of Management's Centre for Business Performance. They define performance measurement as the process of quantifying the efficiency and effectiveness of past actions through acquisition, collation, sorting, analysis, interpretation and dissemination of appropriate data. Performance management extends this definition to the process of analysis and...

Planning web site design and build

In the past, it has been a common mistake amongst those creating a new web site for the first time to 'dive in' and start creating web pages without sufficient forward planning. Planning is necessary since design of a site must occur before creation of web pages - to ensure a good-quality site that does not need reworking at a later stage. The design process (Figure 7.2) involves analysing the needs of owners and users of a site and then deciding upon the best way to build the site to fulfil...

Digital marketing strategies

The final theme of this chapter is Internet marketing strategies. It should be noted that it is not the aim of this section to revisit the process of planning online marketing strategies (which has been discussed in Chapter 4), but to consider how Internet marketing strategies might be used and integrated into organisational planning activities. So far this chapter has focused on the online trading context, the electronic marketplace and trading relationships. In essence, each of these sections...

B Payperclick PPC search marketing

Ads relevant to page content on third party sites brokered by search ad networks. Pay-per-click (PPC) search marketing or paid listings are similar to conventional advertising here a relevant text ad with a link to a company page is displayed when the user of a search engine types in a specific phrase. A series of text ads usually labelled as 'sponsored links' are displayed as is shown on the right of Figure 8.15(a). Unlike conventional advertising, the advertiser doesn't pay when the ad is...

Online environment analysis

The situation or context in which an activity takes place needs to be analysed in order to understand the full meaning of the actions which are taking place in a given trading situation. This is particularly relevant to the online trading environment. As suggested, it has unusual characteristics which can impact on the way an organisation defines its marketing strategy and the activities in which it engages online. According to Finlay (2000) organisations operate in an environment that consists...

Researching site users requirements

The identification of the requirements of a web site. Techniques to achieve this may include focus groups, questionnaires sent to existing customers or interviews with key accounts. A design approach which is based on research of user characteristics and needs. Using design elements such as layout, copy and typography together with promotional messages to encourage site users to follow particular paths and specific actions rather than giving them complete choice in their navigation Analysis...

An introduction to Internet marketing

V Introduction - how significant is the Internet for marketing 4 V What is Internet marketing 8 V What benefits does the Internet provide for the marketer 14 V A strategic approach to Internet marketing 18 V How do Internet marketing communications differ from traditional marketing communications 20 V A short introduction to Internet technology 26 eBay thrives in the global marketplace 33 After reading this chapter, the reader should be able to Evaluate the relevance of the Internet to the...

Further reading

Fill, C. (2005) Marketing Communications - Contexts, Contents and Strategies, 4th edn. Financial Times Prentice Hall, Harlow. The entire book is recommended for its integration of theory, concepts and practice. Novak, T. and Hoffman, D. (1997) New metrics for new media towards the development of web measurement standards, World Wide Web Journal, 2(1), 213-46. This paper gives detailed, clear definitions of terms associated with measuring advertising effectiveness. Zeff, R. and Aronson, B....

Selecting the optimal communications mix

The promotion element of an Internet marketing plan requires four important decisions about investment for the online promotion or the online communications mix. 1 Investment in promotion compared to site creation and maintenance Since there is a fixed budget for site creation, maintenance and promotion, the e-marketing plan should specify the budget for each to ensure there is a sensible balance and the promotion of the site is not underfunded. The amount spent on maintenance for each major...

Eretailing the virtual channel

This section looks at how the Internet is being used as a channel to market, examining the activities retailers are engaging with online with customers. Retail channel is a term introduced by Doherty et al. (1999) to describe companies' multi-purpose adoption of the Internet, using it as both a communication and transactional channel concurrently in business-to-consumer markets. Traditionally the term channel describes the flow of a product from source to end-user. This definition implies a...

Campaign response mechanics

Digital media have increased the choice of response mechanisms. We will look at online and offline response mechanisms that need to be considered for both online and offline campaign media. Reviewing response mechanisms is important since too narrow may limit response, but too broad and unfocused may not give the right types of response -marketers need to emphasise the response types most favourable to the overall success of the campaign. Policies for response mechanism across campaigns should...

Channel conflicts

A significant threat arising from the introduction of an Internet channel is that while disintermediation gives a company the opportunity to sell direct and increase profitability on products, it can also threaten distribution arrangements with existing partners. Such channel conflicts are described by Frazier (1999), and need to be carefully managed. Frazier (1999) identifies some situations when the Internet should only be used as a communications channel. This is particularly the case where...

Stage 3 Tools and techniques for collecting metrics and summarising results

Techniques to collect metrics include the collection of site-visitor activity data such as that collected from site log-files, the collection of metrics about outcomes such as online sales or e-mail enquiries and traditional marketing research techniques such as questionnaires and focus groups which collect information on the customer's experience on the web site. We start by describing methods for collecting site-visitor activity data and then review more traditional techniques of market...

New channel structures

Channel structure Channel structures describe the way a manufacturer or selling organisation delivers The configuration of products and services to its customers. The distribution channel will consist of one or more intermediaries such as wholesalers and retailers. For example, a music company is unlikely to distribute its CDs directly to retailers, but will use wholesalers which have a large warehouse of titles that are then distributed to individual branches according to The removal of...

The Napster proposition

Napster subscribers can listen to as many tracks as they wish which are contained within the catalogue of over 1 million tracks (the service is sometimes described as 'all you can eat' rather than 'a la carte'). Napster users can listen to tracks on any compatible device that includes Windows Digital Rights Management software, which includes MP3 players, computers, PDAs and mobile phones. Duea describes Napster as an 'experience' rather than a retailer. He says this because of features...

The offline impact of online marketing

Increasingly, companies are keen to understand the effect and impact of their promotional spend and par-ticulary how different marketing communication tools perform. As with broadcast media advertising, it can be difficult to assess the impact of Internet marketing initiatives on offline sales. Traditionally, in the retail sector, it is not common practice to track the reasons why consumers arrive in a particular store to make their purchase. However according to Hewitt (2004) the Internet is...

The online purchasing process

Whether on- or offline, consumers are individuals who buy products or services for personal consumption. It is important to remember, there is not a straightforward answer to who buys for instance some purchases are based on individual impulses whilst others may involve a number of individuals who can influence the final purchase choice. Blackwell et al. (2001) suggested there are five key roles that can influence a purchase decision 1 Initiator - starts the purchasing process 2 Influencer -...

The original Napster

Napster was initially created between 1998 and 1999 by a 19-year-old called Shawn Fanning while he attended Boston's Northeastern University. He wrote the program initially as a way of solving a problem for a friend who wanted to find music downloads more easily online. The name 'Napster' came from Fanning's nickname. The system was known as peer-to-peer since it enabled music tracks stored on other Internet user's hard disks in MP3 format to be searched and shared with other Internet users....

The power of context

Gladwell suggests that like infectious diseases, products and behaviours spread far and wide only when they fit the physical, social and mental context into which they are launched. He gives the example of a wave of crime in the New York subway that came to an abrupt halt by simply removing the graffiti from trains and clamping down on fare-dodging. It can be suggested that products should be devised and tested to fit their context, situation or occasion of use. To illustrate the options for...

The prosumer

The prosumer concept was introduced in 1980 by futurist Alvin Toffler in his book The Third Wave. According to Toffler, the future would once again combine production with consumption. In The Third Wave, Toffler saw a world where interconnected users would collaboratively 'create' products. Note that he foresaw this over 10 years before the web was invented Alternative notions of the prosumer, all of which are applicable to e-marketing, are catalogued at Logophilia WordSpy (www.wordspy.com) 1 A...

The purpose of interactive advertising

It can be contended that each web site is in itself an advertisement since it can inform, persuade and remind customers about a company or its products and services. However, a company web site is not strictly an advertisement in the conventional sense, since money is not exchanged to place the content of the web site on a medium owned by a third party. Although Figure 8.18 implies the main aim of interactive advertising is driving traffic to a destination web site, there are other outcomes...

Understanding consumer search engine behaviour

Search marketing firm iProspect conducted research on how we search the results are Over half of Internet users search at least once a day. 81.7 will start a new search if they cannot find a relevant answer in the first 3 pages (typically 30 results). So, to some extent, it is a myth that if you are not in the top 10 you will receive no visitors - it depends on the quality and relevance of the listing also. The detailed figures were 22.6 try another search after first few results a further 18.6...

Viral marketing

E-mail is used to transmit a promotional message to another potential customer. .Y.i.ra.l.m.a.rk.e.t.i.n.g Viral marketing harnesses the network effect of the Internet and can be effective in reaching a large number of people rapidly in the same way as a natural virus or a computer virus. It is effectively an online form of word-of-mouth communications. Although the best-known examples of viral activity are of compromising pictures or jokes being passed around offices worldwide, viral marketing...

Virtual communities

An Internet-based forum for special-interest groups to communicate. Virtual communities also provide opportunities for some companies to develop relationships with their customers. Since the publication of the article by Armstrong and Hagel in 1996 entitled 'The real value of online communities' and John Hagel's subsequent book (Hagel, 1997) there has been much discussion about the suitability of the web for virtual communities. The power of the virtual communities, according to Hagel (1997),...

Virtual organisations

Virtual organisation and virtualisation A virtual organisation uses information and communications technology to allow it to operate without clearly defined physical boundaries between different functions. It provides customised services by outsourcing production and other functions to third parties. Virtualisation is the process whereby a company develops more of the characteristics of a virtual organisation. Benjamin and Wigand (1995) state that 'it is becoming increasingly difficult to...

Volvo encourages viewers to Press Red for their Mystery of Dalaro campaign

This innovative campaign, supporting the launch of the Volvo S40, was shot in the style of a documentary purporting to be a real account of the Swedish village Dalaro where 32 people all bought a new Volvo S40 on the same day. But Volvo has now revealed that it is Spike Jonze, the director of the films 'Being John Malkovich' and 'Adaptation' as well as the legendary Beastie Boys video 'Sabotage', who made the documentary. However, it has said that the characters in the campaign are real...

W

Walled garden A limited range of e-commerce services on iDTV (compared to the Internet). Web 2.0 concept A collection of web services that facilitate certain behaviours online such as community participation and user-generated content, rating and tagging. Web accessibility Designing web sites so that they can be used by people with visual impairment whatever browser access platform they use. Web addresses (universal resource locators - URLs) Web addresses refer to particular pages on a web...

Web accessibility

An approach to site design intended to accommodate site usage using different browsers and settings particularly required by the visually impaired. General Packet Radio Services (GPRS) A standard offering mobile data transfer and WAP access approximately 5 to 10 times faster than traditional GSM access. Legislation intended to protect users of web sites with disabilities including visual disability. Web accessibility is another core requirement for web sites. It is about allowing all users of a...

Web site prototyping

A preliminary version of part or a framework of all of a web site, which can be reviewed by its target audience or the marketing team. Prototyping is an iterative process in which web site users suggest modifications before further prototypes and the final version of the site are developed. Prototypes are trial versions of a web site that are gradually refined through an iterative process to become closer to the final version. Initial prototypes may simply be paper prototypes, perhaps of a...

What is online PR

Maximising favourable mentions of your company, brands, products or web sites on third-party web sites which are likely to be visited by your target audience. Controlling the reputation of an organisation through monitoring and controlling messages placed about the organisation. Online PR or e-PR leverages the network effect of the Internet. Remember that Internet is a contraction of 'interconnected networks' Mentions of a brand or site on other sites are powerful in shaping opinions and...

What is PR

Let's start with an understanding of traditional PR - itself somewhat intangible. As you will know, 'PR' and 'public relations' are often used interchangeably. Unfortunately, PR is also an acronym for 'press release' or 'press relations'. Of course, the scope of PR is much wider than press releases. The UK Institute of PR (IPR, 2003) defines PR as the management of reputation - the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation...

Who are the eretailers and what are they selling

According to Doherty et al. (1999, 2003), there are a number of characteristics of a business that are likely to determine the extent to which retailers have adopted the Internet, the online format they might choose and the products they sell. The characteristics include the following. Small and medium-sized retailers are increasingly adopting the Internet as a channel to market (see Chapter 11). The advantages include access to a wider market previously inaccessible and low-cost advertising,...

Who are the online customers

Many researchers have written about which sectors of society use the Internet. Hoffman and Novak (1998) focused on the impact of demographics, and highlight inequities of Internet access based on race and gender. Sorce et al. (2005) looked at age and found that 'while older shoppers search for significantly fewer products than their younger counterparts they actually purchase as much as the younger consumer'. More specifically, The National Statistics Office (UK) (2005) identified that people...

Who owns the process

One of the first areas to be defined should be the overall process for updating the site. But who agrees this process For the large company it will be necessary to bring together all the interested parties such as those within the marketing department and the site developers - who may be an external agency or the IT department. Within these groupings there may be many people with an interest such as the marketing manager, the person with responsibility for Internet or new-media marketing, a...

Word of mouth

It is worth remembering that, in addition to the methods above, word of mouth plays an important role in promoting sites, particularly consumer sites, where the Internet is currently a novelty. Opinion Research Corporation International, ORCI, reported on a study amongst US consumers that showed that the typical Internet consumer tells 12 other people about his or her online shopping experience. This compares with the average US consumer, who tells 8.6 additional people about a favourite film...

Boo hoo learning from the largest European dotcom failure

'Unless we raise 20 million by midnight, boo.com is dead.' So said Boo.com CEO Ernst Malmsten, on 18 May 2000. Half the investment was raised, but this was too little, too late, and at midnight, less than a year after its launch, Boo.com closed. The headlines in the Financial Times, the next day read 'Boo.com collapses as Investors refuse funds. Online Sports retailer becomes Europe's first big Internet casualty.' The Boo.com case remains a valuable case study for all types of businesses, since...

Refining the online customer experience at dabscom

This case study highlights the importance placed on web site design as part of the customer experience by dabs.com which is one of the UK's leading Internet retailers of IT and technology products from manufacturers such as Sony, Hewlett-Packard, Toshiba and Microsoft. Dabs.com was originally created by entrepreneur David Atherton in partnership with writer Bruce Smith (the name 'dabs' comes from the combined initials of their two names). Their first venture, Dabs Press was a publisher of...

R

Reach The number of unique individuals who view an advertisement. Really Simple Syndication RSS Blog, news or other content is published by an XML standard and syndicated for other sites or read by users in RSS reader software services. RealNames A service for matching company names and brands with web addresses. Referrer The site that a visitor previously visited before following a link. Referring sites A log file may indicate which site a user visited immediately before visiting the current...

Benefits of eCRM

Using the Internet for relationship marketing involves integrating the customer database with web sites to make the relationship targeted and personalised. Through doing this marketing can be improved as follows. Targeting more cost-effectively. Traditional targeting, for direct mail for instance, is often based on mailing lists compiled according to criteria that mean that not everyone contacted is in the target market. For example, a company wishing to acquire new affluent consumers may use...

Essay and discussion questions

1 Discuss the frequency with which an Internet marketing strategy should be updated for a company to remain competitive. 2 'Setting long-term strategic objectives for a web site is unrealistic since the rate of change in the marketplace is so rapid.' Discuss. 3 Explain the essential elements of an Internet marketing strategy. 4 Summarise the role of strategy tools and models in formulating a company's strategic approach to the Internet.

A Search engine optimisation SEO

Search engine optimisation involves achieving the highest position or ranking practical in the natural or organic listings on the search engine results pages after a specific combination of keywords or keyphrase has been typed in. In search engines such as Google, Yahoo and MSN Search, the natural listings are the main listing on the left as shown in Figure 8.15 a , although there may also be sponsored links above these. The position or ranking is dependent on an algorithm used by each search...

Site design and structure

The structures created by designers for web sites will vary greatly according to their audience and the site's purpose, but we can make some general observations about approaches to site design and structure and their influence on consumers. For example, Rosen and Purinton 2004 have assessed the design factors which influence a consumer based on questionnaires of a group of students . They believe there are some basic factors that determine the effectiveness of an e-commerce site. They group...

Refining The Online Customer Experience At Dabs.com

Although the previous site was only updated 2 years ago, he describes the need to keep ahead of competitors as 'a cat and mouse thing'. But new site advances must be combined with competitive prices, Wall says Online customers are price-loyal, not retailer-loyal. The customer is only as loyal as the cheapest price they can pay for a product. It means your competitors are only ever one click away. We have to do everything to keep our customers on our site. Getting them to pay that price to you,...

An integrated Internet marketing strategy

The integration of an Internet marketing strategy into business and marketing strategies represents a significant challenge for many organisations, in part because they may have traditionally considered the Internet in isolation and in part because of the profound implications of the Internet for change at an industry level and within organisations. The E-consultancy 2005 research highlighted the challenges of Internet marketing strategy. The research involved e-commerce managers at companies...

Assessing opportunities and threats

Companies should conduct a structured analysis of the external opportunities and threats that are presented by the Internet environment. They should also consider their own strengths and weaknesses in the Internet marketing environment. Summarising the results through Internet-specific SWOT analysis internal Strengths and Weaknesses and external Opportunities and Threats will clearly highlight the opportunities and threats. Appropriate planning to counter the threats and take advantage of the...

The characteristics of interactive marketing communications

Traditional techniques such as print and TV advertising used to generate web site traffic. The customer's purchase decision is influenced by a range of media such as print, TV and Internet. Communications are broadcast from an advertiser to consumers of the message who are passive recipients. The consumer is proactive in selection of the message through actively seeking out a web site. Through understanding the key interactive communications characteristics enabled through digital media we can...

Intermediary analysis

Chapter 2 highlighted the importance of web-based intermediaries such as portals in driving traffic to an organisation's web site. Situation analysis will also involve identifying relevant intermediaries for a particular marketplace and look at how the organisation and its competitors are using the intermediaries to build traffic and provide services. For example, an e-tailer needs to assess which comparison services such as Kelkoo www.kelkoo.com and Pricerunner www.pricerunner.com it and its...

Differences in advertising between traditional and digital media

Evaluation of the differences between traditional and new media for advertising is necessary in order to select the best media for promoting the online presence. Janal 1998 considered how Internet advertising differs from traditional advertising in a number of key areas. These are summarised in Table 8.1. Table 8.1 Key concepts of advertising in the traditional and digital media Cheap, unlimited Expensive commodity for users Information most important Image is secondary Pull, interactive...

Customer lifecycle management

The stages each customer will pass through in a long-term relationship through acquisition, retention and extension. As was explained in Chapter 4 in the section on target marketing strategy and through Mini Case Study 4.2 on Euroffice, assessing and understanding the position of the customer in their relationship with an organisation is key to online marketing strategy. In this section we review methods of assessing the position of customers in the lifecycle and the use of 'sense and respond'...

Questions for marketers

gt People, process and physical evidence 245 The re-launched Napster changes the music marketing mix 248 Key questions for marketing managers related to this chapter are How are the elements of the marketing mix varied online What are the implications of the Internet for brand development Can the product component of the mix be varied online How are companies developing online pricing strategies Does 'place' have relevance online

The relaunched Napster changes the music marketing mix

The element of the marketing mix that involves the methods and procedures companies use to achieve all marketing functions. The element of the marketing mix that involves the tangible expression of a product and how it is purchased and used. This case about online music subscription service Napster illustrates how different elements of the mix can be varied online. It also highlights success factors for developing an online marketing strategy since Napster's proposition, objectives, competitors...

Internet strategy is a channel marketing strategy

Political Web Marketing Strategy

We need to remember that an Internet marketing strategy is a channel marketing strategy which defines how a company should set channel-specific objectives and develop a differential channel-proposition and channel-specific communications consistent with the characteristics of the channel and consumer usage of it. The Internet marketing strategy determines the strategic significance of the Internet relative to other communications channels which are used to communicate directly with customers at...

Key concepts of electronic customer relationship management eCRM

E-CRM or electronic customer relationship management involves creating strategies and plans for how digital technology and digital data can support CRM. Some specialists in e-commerce teams have this as their job title or in their job description. But what is e-CRM This is what Smith and Chaffey 2005 say What is e-CRM Customer Relations Management with an 'e' Ultimately, E-CRM cannot be separated from CRM, it needs to be integrated and seamlessly. However, many organisations do have specific...

Tescocom uses the Internet to support its diversification strategy

Tesco, well known as Britain's leading food retail group with a presence also in Europe and Asia has also been a pioneer online. By September 2005 online sales in the first half of the year were 401 million, a 31 year-on-year increase, and profit increased by 37 to 21 million. Tesco.com now receives 170,000 orders each week. Soon it should reach an annual turnover of 1 billion online and is generally recognised as the world's largest online grocer. The Tesco.com site acts as a portal to most of...

Internet Marketing Fundamentals

1 An introduction to Internet marketing 3 Learning objectives I Questions for marketers I Links to other chapters S Introduction - how significant is the Internet for Marketing applications of Internet marketing B Our changing media consumption 6 E-commerce and e-business defined 11 What benefits does the Internet provide for the A strategic approach to Internet marketing 1B How do Internet marketing communications differ from traditional marketing communications 2O A short introduction to...

The IDIC approach to relationship building

Idic Framework

Collecting information about customer needs through their lifetime, An alternative process for building customer relationships online has been suggested by Peppers and Rogers 1998 and Peppers et al. 1999 . They suggest the IDIC approach as a framework for customer relationship management and using the web effectively to form and build relationships Figure 6.8 . Examples of the application of IDIC include 1 Customer identification. This stresses the need to identify each customer on their first...

Strategic goal setting

Any marketing strategy should be based on clearly defined corporate objectives, but there has been a tendency for Internet marketing to be conducted separately from other business and marketing objectives. Porter 2001 has criticised the lack of goal setting when many organisations have developed Internet strategies. He notes that many companies, responding to distorted market signals, have used 'rampant experimentation' that is not economically sustainable. This has resulted in the failure of...

1 Introduction To Internet Marketing 2 The Internet Micro-environment 4 Internet Marketing Strategy 5 The Internet

Note A large tick indicates fairly detailed coverage a smaller tick indicates a brief direct reference or indirect coverage. Chapter 1 An introduction to Internet marketing introduces using the Internet as part of customer-centric, multi-channel marketing it also reviews the relationship between Internet marketing, e-marketing, e-commerce and e-business, and the benefits the Internet can bring to adopters, outlines differences from other media and briefly introduces the technology. Chapter 2...