chaffey, internet marketing, 3 rd edition © pearson education limited 2007 slide 2.1 chapter 2 the...

Chaffey, Internet Marketing, 3rd Edition © Pearson Education Limited 2007

Slide 2.1

Chapter 2The Internet micro-environment


Slide 2.2

Learning objectives

• Identify the different elements of the Internet environment that impact on an organisation’s Internet marketing strategy.

• Assess competitor, customer and intermediary use of the Internet.

• Evaluate the relevance of changes in trading patterns and business models enabled by e-commerce.


Slide 2.3

Questions for marketers

• How are the competitive forces and value chain changed by the Internet?

• How do I assess the demand for Internet services from customers?

• How do I compare our online marketing with that of competitors?

• What is the relevance of the new intermediaries?


Slide 2.4

Figure 2.1 Increase in traffic volume at Handbag.com in selected months when audited. Page impressions are pages served to visitors, visitor sessions are visits up to a maximum of 30 minutes and unique visitors is the number of individuals visiting the site in a given monthSource: Compiled from ABC Electronic (ww.abce.org.uk)


Slide 2.5

Figure 2.2 The IMRG retail index shows online sales volume in the UK relative to 100in April 2000Source: Interactive Media in Retail Group (www.imrg.org)


Slide 2.6

The Internet marketing environment

Figure 2.3 The Internet marketing environment


Slide 2.7

Porter’s five forces (or use Fig 2.3)

Power ofsuppliers

Bargainingpowers ofcustomers

Extent of rivalrybetween

competitors

Threat ofsubsitutes

Threat of newentrants

The business


Slide 2.8

Figure 2.4 Value creation model


Slide 2.9

Alternative models of the value chain

Figure 2.5 Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model


Slide 2.10

A value network

Figure 2.6 Members of the value network of an organisationSource: Adapted from Deise at. (2000)


Slide 2.11

Disintermediation

Figure 2.7 Disintermediation of a consumer distribution channel showing: (a) the original situation, (b) disintermediation omitting the wholesaler, and (c) disintermediation omitting both wholesaler and retailer


Slide 2.12

See www.screentrade.co.uk

Figure 2.8 Screentrade insurance intermediary (www.screentrade.com)


Slide 2.13

Figure 2.9 From (a) original situation to (b) disintermediation or(c) reintermediation or countermediation


Slide 2.14

Figure 2.10 Example of a channel chain map for consumers selecting an estateagents to sell their property


Slide 2.15

Countermediation

• Creation of a new intermediary

• Example:– B&Q www.diy.com– Opodo www.opodo.com– Boots www.wellbeing.com

www.handbag.com


Slide 2.16

Alternative online trading locations

Figure 2.11 Different types of online trading location


Slide 2.17

Figure 2.12 Alternative perspectives on business models


Slide 2.18

Assessing customer demand

Need to assess:1. Access to Internet

2. Proportion of customers influenced by channel

3. Proportion of customers who buy direct

See Chapter 4


Slide 2.19

Figure 2.13 A model of the Internet marketing conversion process


Slide 2.20

Figure 2.14 An example of a conversion model


Slide 2.21

Figure 2.15 Global variation in number of PCs per hundred population and percentage Internet access in 2004Source: ITU (www.itu.int)


Slide 2.22

Figure 2.16 UK rate of adoption of different digital mediaSource: MORI Technology Tracker, September 2006. See www.mori.com/technology/techtracker.shtml for details


Slide 2.23

Figure 2.18 The most popular search terms typed into a search engine that resulted in traffic to www.ba.com, four weeks ending 18.03.06 Source: Hitwise (www.hitwise.co.uk)


Slide 2.24

Figure 2.18 The most popular search terms typed into a search engine that resulted in traffic to www.ba.com, four weeks ending 18.03.06 (Continued) Source: Hitwise (www.hitwise.co.uk)


Slide 2.25

Figure 2.19 Summary of demographic characteristics of Internet usersSource: (September 2003) MORI Technology Tracker. See www.mori.com/technology/techtracker.shtml for details


Slide 2.26

Figure 2.20 Summary of variation in access to the digital media according tosocial groupSource: (September 2005) MORI Technology Tracker. See www.mori.com/technology/techtracker.shtml for details


Slide 2.27

Figure 2.21 Percentage of businesses that order onlineSource: DTI (2004)


Slide 2.28

Figure 2.22 Development of experience in Internet usage


Slide 2.29

Select supplier(enquire)

‘Tracker’Completing

‘Hunter’Researching

‘Explorer’Browsing

Directed goal-orientedUndirected, exploratory

Destination purchase

(buy)

Definerequirements

Assess supplier

capabilities

‘Inspireme’

‘What’s outthere’

Source: Author


Slide 2.30

Figure 2.23 A summary of how the Internet can impact on the buying process for a new purchaser


Slide 2.31

Figure 2.24 Initial product search showing e-retailers available


Slide 2.32

Figure 2.25 Comet product comparison facility (www.comet.co.uk)


Slide 2.33

Figure 2.26 Kelkoo.com, a European price comparison site

chaffey, internet marketing, 3 rd edition © pearson education limited 2007 slide 2.1 chapter 2 the...

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