internet marketing: satisfying customers on-line rybachuk anya business administration &...
TRANSCRIPT
Internet Marketing:
Satisfying Customers On-line
Rybachuk Anya
Business Administration & Economics Department
CITY Liberal Studies
Affiliated Institution of Sheffield University
Presentation Outline:
This Market is too big to be ignored! Transition from the Marketplace to the
Marketspace New Rules of Marketing What is Internet Marketing? Traditional vs Internet Marketing Problems and Pitfalls Conclusions
Question1:
How many of us have used Internet for purchasing a
product or service on-line?
Facts about doing business on the Internet (B2C)
Facts about doing business on the Internet (B2B)
Question2:
Is doing business on the Internet the same with doing
business off-line?
It aims to be the most customer-focused company ever: both on-line and off-line.
It created ultrapersonilized stores. It provides customers with the access to the
world’s largest community of experienced on-line shoppers through auction.
(Business Week, 1998)
… but most importantly its appearance forced a whole
industry to change
FROM THE
MARKETPLACE TO THE
MARKETSPACE
Advantages of the Marketspace
DIRECT CONTACT HIGH SPEED GREAT VARIETY USE OF MULTIMEDIA ACCESSIBLE 24 HOURS… …FROM AROUND THE WORLD!!! LOW COST
New Rules for Internet marketing
Power shift from sellers to buyers
Increasing velocity Death of distance Global reach Time compression
Knowledge management is key
Market deconstruction Interoperability Interdisciplinary focus Intellectual capital rules
(Strauss and Frost, 2000)
Definition of Internet Marketing
Internet Marketing is the application of the Internet
and related digital technologies to achieve marketing objectives
(Chaffey, 2000)
Traditional vs. Internet Marketing
Old Media New Media
1:M communication model 1:1 model
Mass marketing Individualised marketing or mass-customisation
Monologue Dialogue
Branding Communication
Supply side thinking Demand side thinking
Customer as a target Customer as a partner
Segmentation Communities
Components of the Marketing Mix(4 Ps)
PRODUCT
PRICE
PROMOTION
PLACE
STATEMENT No.1
“If I’m selling to you, I speak your language. If I am buying, dann mussen Sie Deutsch sprechen (then you must speak German).”
-Will Brandt, ex-Chancellor, Germany
Problems of Internet Marketing
Transmission time; Site congestion; Lack of organisation; Lack of security; Global differences; Customer is in charge; Time of visit.
(Evans and King, 1999)
Pitfalls of Internet marketing
Traditional vs. Internet Marketing techniques;
Bad news travel quickly;
Difficulties with identifying the market;
Not many words;
Not paying attention;
Poor structure;
Dishonesty;
Channel conflict.(Levinson and Rubin, 1995)
Conclusions (1):
The number of people and companies doing transactions on the Internet is dramatically increasing;
No company should ignore the power of Internet in doing business…
…but doing business in the Marketspace is different from the marketplace;
Conclusions (2):
So Internet Marketing is here to provide companies with the way to achieve a desired level of customer satisfaction;
Internet Marketing is not a solution by itself. Companies must be creative, innovative and effective enough in order to avoid Internet marketing problems and seize its opportunities.