mark 430 introduction the impact of the internet on marketing week 1
TRANSCRIPT
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MARK 430INTRODUCTION
The impact of the internet on marketing
Week 1
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What is internet marketing?
• Online marketing/ eMarketing / digital marketing / web marketing / internet marketing?
• The application of the internet and related digital technologies in conjunction with traditional communications to achieve marketing objectives
……Dave Chaffey
http://www.smartinsights.com/digital-marketing-strategy/online-marketing-mix/definitions-of-emarketing-vs-internet-vs-digital-marketing/
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Why study internet marketing?
• Over the past 20 years traditional marketing practices have been transformed– October 27, 1994 – first banner ad– Digital marketing continues to grow and attract marketing dollars– The influence of Web 2.0 in the late 90s and early 2000s, product
digitization, and now the impact of mobile computing– Continuing strong growth in business-to-consumer and business-to-
business eCommerce
• New skills, knowledge and strategies in high demand in the business world – very strong demand in this area
• Marketers need to understand technology and collaborate with IT colleagues
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TECHNOLOGIES
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Technologies used in marketing• Web (HTML 5 / CSS 3)• Instant messaging• SMS (Text messaging)• “over-the-top” messaging via data (eg. Viber, WhatsApp)• Voice and Video over IP (VOIP)• eMail• P2P file exchange / streaming technologies• Location-awareness / location based services (LBS)• Mobile Apps (native to mobile operating systems)• Augmented Reality (AR)• Near-field communication (NFC)• iBeacon and Bluetooth Low Energy• Virtual reality (VR)• Voice and image recognition
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Consumer Devices• Mobile– Cell phones and smart phones– eReaders– Tablets– Wearables (glasses, watches, rings, bands, tattoos etc)
• Desktop– Personal computers (desktop and laptop)– Gaming consoles– VR/AR headsets and motion detectors
• Internet of Things (IoT)
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THE 4PS IN TRANSITION
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The impact of the Internet on the traditional marketing mix framework
• Product – new products, the rise of the “prosumer”
• Price – dynamic pricing, comparison pricing, bidding……..FREE!
• Place – direct distribution of digital products, supply chain management, channel integration
• Promotion – new social and communications media, measurable advertising
• Strong trend towards personalization and away from the mass (undifferentiated) market affecting all the elements of this framework
• The Six “I”s Framework– Interactivity– Intelligence (market)– Individualization– Integration– Industry restructuring– Independence of
location
MacDonald and Wilson. The New Marketing, 2002
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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Interactivity• The internet is not TV
• Conversation rather than broadcast
• Pull (inbound marketing) rather than push (outbound marketing)
• Active rather than passive (lean-forward medium)
• Social Networking / User Generated Content
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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[Market] Intelligence
• By the very act of using the internet, we are “telling” marketers what we want:• Passively • Clickstream data• Web analytics
• Actively• Social network updates, photos, videos, reviews, forum
postings etc
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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Individualization
• The market of one: based on the information about customers that we provide, and that is collected automatically and monitored constantly
• Amazon for example
Traditional media
Same message to all customers or segments
New
media
Message tailored to each customer or micro-segment
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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Integration
• Online marketing is very readily integrated into a marketing communications strategy
• Internet channels complement and integrate with offline marketing channels
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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Industry restructuring and Independence of location
INDUSTRY RESTRUCTURING• Disintermediation –
traditional intermediaries used by marketers disappearing
• Re-intermediation new intermediaries (eg. PayPal)
• Business models challenged
LOCATION INDEPENDENCE
• Increased reach to global markets
• Increased exposure
• Increased competition
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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Product trends online
• Digital value – adding value to products through online means
• Digitization – product or place?
• Personalization – individualized products and the “prosumer”
Product
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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Digital goods distribution
• Any product that can be digitized can be delivered over the Internet
• Online distribution costs are significantly lower– No inventory problems– No product depletion
• Completely new business models based on digital distribution methods
• Internet becomes a direct substitute for an offline distribution channel eg. online banking
Place
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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Some industries that are undergoing rapid change due to Internet forces affecting
product and place
• Recorded Music industry• Video/DVD rental industry• Newspaper and magazine publishing• Banking• Book publishing• “Sharing economy” industries (Taxis, hotels)
• Forces for change:– Digitizable product– Self service – Direct to consumer shift– Personalization
Place
Product
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Pricing
• Internet influences – buyer and seller perspectives of price
• Moving from free to fee (and freemium)• LinkedIn• Shockwave.com (casual games)• Newspaper “paywalls”
• Price comparisons / transparency• Dynamic pricing
Price
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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Online promotion
• We will look at the many new techniques available to marketers to promote goods and services online
• The big value of internet marketing– Ability to measure results (performance based)– Ability to use unmediated data about customer
behaviour and preferences
Promotion
Source: eMarketing eXcellence. 2012. Smith &Chaffey
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OWNED, EARNED, AND PAID MEDIA
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Owned, earned and paid media• Definitions from Dave Chaffey
– Paid media: “media where there is investment to pay for visitors, reach or conversions through search, display ad networks or affiliate marketing.” (online and offline)
– Earned media: “publicity generated through PR invested in targeting influencers to increase awareness about a brand. Of course, it’s still an investment. Earned media also includes word-of-mouth that can be stimulated through viral and social media marketing and includes conversations in social networks, blogs and other communities.”
– Owned media: “media owned by the brand. Online this includes a company’s own websites, blogs, mobile apps or their social presence on Facebook, LinkedIn or Twitter. Offline owned media may include brochures or retails stores.”
http://www.smartinsights.com/digital-marketing-strategy/customer-acquisition-strategy/new-media-options/
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Owned, earned & paid media (Chaffey)
http://www.smartinsights.com/digital-marketing-strategy/customer-acquisition-strategy/new-media-options/
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Owned, earned and paid media: role, benefits & challenges
http://www.smartinsights.com/digital-marketing-strategy/customer-acquisition-strategy/new-media-options/
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The internet
marketing toolbox
Blogging
Mobile
General social
networks
Niche social networks
Search engine optimization
AR, VReMail
Search advertising
Interactive display
advertising
Video