chapter 2 the internet micro-environment
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Chapter 2 The Internet micro-environment. 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; - PowerPoint PPT PresentationTRANSCRIPT
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.1
Chapter 2The Internet micro-environment
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 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.
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 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?
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.4 The Internet marketing environment
Figure 2.1 The Internet marketing environment
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.5 Porter’s five forces
Power ofsuppliers
Bargainingpowers ofcustomers
Extent of rivalrybetween
competitors
Threat ofsubsitutes
Threat of newentrants
The business
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.6 Alternative models of the value chain
Figure 2.2 Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.7 A value network
Figure 2.3 Members of the value network of an organisationSource: Adapted from Deise et al. (2000)
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.8
Disintermediation
Figure 2.4 Disintermediation of a consumer distribution channel showing: (a) the original situation, (b) disintermediation omitting the wholesaler, and (c) disintermediation omitting both wholesaler and retailer
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.9
Example – Vauxhall
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.10 Reintermediation
Figure 2.6 Reintermediation process: (a) original situation, (b) reintermediation contacts
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.11
Countermediation
• Creation of a new intermediary
• Example:– B&Q www.diy.com– Opodo www.opodo.com– Boots www.wellbeing.com
www.handbag.com
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.12 Alternative online trading locations
Figure 2.7 Different types of online trading location
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.13
Example – Barclays B2B
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.14
Example - Priceline
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.15 Different business model perspectives
Figure 2.10 Alternative perspectives on business models
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.16
Example - Mondus
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.17
Assessing demand
• Need to assess:1. Access to Internet
2. Proportion of customers influenced by channel
3. Proportion of customers who buy direct
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.18 Global population with Internet access
Figure 2.12 Percentage of global population with Internet access(based on Nua and Cyberatlas compilations at www.nua.ie/surveys and www.cyberatlas.com)
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.19 Global variation in Internet access
Figure 2.13 Global variation in number of PCs per hundred population and percent Internet access in 2000Source: ITU (www.itu.int)
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.20 UK adoption of different media
Figure 2.14 UK rate of adoption of different new media, base c. 4000 GB adults aged 15+, December 2001Source: e MORI Technology Tracker, January 2002. See http://www.e-mori.co.uk/tracker.shtml for details
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.21 Internet user demographics
Figure 2.15 Summary of current demographic characteristics of Internet users, base 1673 GB Internet users aged 15+, January 2002Source: e MORI Technology Tracker, January 2002. See http://www.e-mori.co.uk/tracker.shtml for details
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.22 Variations in access to new media – social group
Figure 2.16 Summary of variation in different access to new media according to social group, base 4222 GB adults aged 15+, January 2002Source: e MORI Technology Tracker, January 2002. See http://www.e-mori.co.uk/tracker.shtml for details
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.23 Different types of Internet access location
Figure 2.17 Different types of Internet access locationSource: The Internet Monitor, BMRB, www.bmrb.co.uk
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.24 A pyschographic segmentation
Figure 2.18 Psychographic segmentation for Web usersSource: Netpoll (www.netpoll.net)
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.25 Percentage of online shoppers by product category
Figure 2.19 Percentage of online purchasers by product categoryNote: There are 9.9 million online shoppers (54% of Internet users aged 15+)Source: The Internet Monitor, BMRB, November 2001 (www.bmrb.co.uk)
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.26
Percentage of businesses with Internet access
Figure 2.20 Percentage of businesses with Internet accessNote that results are weighted by business size and that some countries are included for different yearsSource: DTI, 2001
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.27 Businesses that identify suppliers online
Figure 2.21 Percentage of businesses that identify suppliers online by business sizeSource: DTI, 2001
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.28
Competitor benchmarking
• Activity– You are e-commerce manager
within easyJet– Which criteria would you use to compare a
competitor’s online offering? Group them under five or six headings
– Conduct an assessment of your services against competitors such as Buzz, Ryanair and British Midland
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.29
Hitwise competitive ranking
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.30
Intermediaries
Table 2.5 The most visited sites in the UK
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003
OHT 2.31
Example - Kelkoo