Demand analysis and conversion modelling

It is essential for Internet marketing and e-marketing managers to understand the current levels and trends in usage of the Internet for different services and the factors that affect how many people actively use these services. This evaluation process is demand analysis. If customer usage of online media is evaluated for customers in a target market,

Demand analysis

Quantitative determination of the potential usage and business value achieved from online customers of an organisation. Qualitative analysis of perceptions of online channels is also assessed.

companies can identify the opportunity for influencing and delivering sales online. They can also understand the drivers to usage and barriers to increased usage and so encourage adoption of online channels by emphasising the benefits in their communications and explaining why some of the barriers may not be valid. For example, marketing communications can be used to explain the value proposition (see Chapter 4) and reduce fears of complexity and security.

Surveys reported in the social factors section of the next chapter show that the following are important factors in governing adoption of the Internet:

1 Cost of access.

2 Value proposition.

3 Perception of ease of use.

4 Perception of security.

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