1 INTERNET The e Age Business Tool Jiten K. Goradia.

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INTERNET

INTERNETThe ‘e’ Age

Business ToolThe ‘e’ Age

Business ToolJiten K. GoradiaJiten K. Goradia

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eVOLUTIOeVOLUTION of N of

INTERNETINTERNET

eVOLUTIOeVOLUTION of N of

INTERNETINTERNET

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In a nutshellIn a nutshell

Started as a small US govt. project in 1970Started as a small US govt. project in 1970

The Advanced Research Project Agency (ARPA)linked their computers, called it ARPANET

The Advanced Research Project Agency (ARPA)linked their computers, called it ARPANET

Today the Internet has million of computers from individuals, small networks to mega

networks

Today the Internet has million of computers from individuals, small networks to mega

networks

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Stages Of EvolutionStages Of Evolution

wwwwwwWorld Wide WebWorld Wide Web

wwwwwwWorld Wide WebWorld Wide Web

FTP FTP File Transfer ProtocolFile Transfer Protocol

FTP FTP File Transfer ProtocolFile Transfer Protocol

Gopher- Menu Style Information Browsing and Searching

Gopher- Menu Style Information Browsing and Searching

Touch tone (digital) phones

Personal Computers

Sputnik & Space race

Affordable flying

Main frame computers

Cell phones

E-mail

Instant Messaging

Trains (standardized time zones)

Electric typewriters

Interstate Highway System

Internet

Teleportation?

Automobiles

Personal Fax Machines

Assembly lines & mass production

La

te 1

80

0’s

19

00

19

50

19

60

19

70 1

98

0

19

90

20

00

20th Century

Speed, Complexity

Volume Increases

Events that have increased the Speed, Complexity, & Volume of work in an information & knowledge world

Technology & Life Technology & Life

Not Many events/inventions have

impacted life as much as the INTERNET

Not Many events/inventions have

impacted life as much as the INTERNET

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Information On InternetInformation On InternetAll worldwide published information

Between 1999 & 2002 the total amount of all information published in the world doubled

(equaled the amount published in all 4000 years of recorded history)

4000

3000

0 2000

1000

2000

AD

1000

AD0

1000

BC

2000

BC

1999 - 20024000+ years

of recorded history

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The Four Virtual SpacesThe Four Virtual Spaces

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MARKeTING MARKeTING on the on the

INTERNETINTERNET

MARKeTING MARKeTING on the on the

INTERNETINTERNET

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Basic Forms of Virtual BusinessBasic Forms of Virtual Business

Business-to-Consumer(B2C)

Business-to-Consumer(B2C)

Basic Formsof

ElectronicCommerce

Basic Formsof

ElectronicCommerce

Business-to-Business(B2B)

Business-to-Business(B2B)

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The Internet PresenceThe Internet Presence

InternetInternetMarketingMarketing

TechniquesTechniques

InternetInternetMarketingMarketing

TechniquesTechniques

E-Mail

Corporate Web Site

Interactive Web Site

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Characteristics of Internet UsersCharacteristics of Internet UsersGrouped around common INTERESTS

– Interests can be personal or professional– Interests can be information or entertainment

driven– Interests also drive ‘word of email’ marketing– Users who are ‘Instant Decision Makers’

Geographically Dispersed– Access to a world-wide customer base– Hit rates may be low but cost of per

successful response is highly attractive

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The Opportunity - 1 to 1 MarketingThe Opportunity - 1 to 1 Marketing

1 – 1 Marketin

g

1 – 1 Marketin

g

InteractionInteraction

IdentificationIdentification

TrackingTracking

DifferentiationDifferentiation

CustomizationCustomization

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Two Primary ConsiderationsTwo Primary ConsiderationsPLASTICITY

•Internet is always changing•The information on internet

can be changed•Latest developments can be

passed on to the customers

PLASTICITY

•Internet is always changing•The information on internet

can be changed•Latest developments can be

passed on to the customers

PARTICIPATION

•Internet marketing requires active participation of the

target audience• The marketers are

dependent on the customer

PARTICIPATION

•Internet marketing requires active participation of the

target audience• The marketers are

dependent on the customer

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Electronic Marketing ChannelElectronic Marketing Channel

The NewThe NewBusinessBusinessMultiplierMultiplier

Find out about productsFind out about products

Get answers to questionsGet answers to questions

Leave messagesLeave messages

Solve problemsSolve problems

Make purchasesMake purchases

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Internet Marketing StrategyInternet Marketing Strategy

Push StrategyPush StrategyTelevision, Radio, Print

Pull StrategyPull StrategyInternet

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Internet Marketing PlanInternet Marketing Plan

Analysis of InternetMarketing Environment

Analysis of InternetMarketing Environment

Statement of Company’sOn-Line Business StrategyStatement of Company’s

On-Line Business Strategy

Specific Internet MarketingObjectives and Strategies

Specific Internet MarketingObjectives and Strategies

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Internet Marketing ObjectivesInternet Marketing Objectives

InternetInternetMarketingMarketingObjectivesObjectives

InternetInternetMarketingMarketingObjectivesObjectives

Sales LevelSales Level

Repeat PurchaseRepeat Purchase

Market PositioningMarket Positioning

ImageImage

Brand AwarenessBrand Awareness

On-Line Market ShareOn-Line Market Share

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Factors in Internet Factors in Internet Marketing ProgramsMarketing Programs

FactorsFactorsinin

InternetInternetMarketingMarketing

Degree of programsophistication

Program Magnitude

Program Dynamics

Prior Internet marketing experience

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Marketing ResearchMarketing Researchthrough the Webthrough the Web

The WebThe Webin in MarketingMarketingResearchResearch

The WebThe Webin in MarketingMarketingResearchResearch

Vast information sources for secondary research

Vast information sources for secondary research

Better primary researchBetter primary research

Web-based surveys andfocus groups

Web-based surveys andfocus groups

Information about competitors

Information about competitors

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Internet Demographics and TrendsInternet Demographics and Trends

FactorsFactorsInfluencingInfluencing

On-LineOn-LineBuying Buying

Behavior Behavior

FactorsFactorsInfluencingInfluencing

On-LineOn-LineBuying Buying

Behavior Behavior

Attitude toward technology

Income

Motivation to useTechnology

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InternetInternetBuyer Buyer

Categories Categories

InternetInternetBuyer Buyer

Categories Categories

Early Adopters

“Mainstreamers”

Laggards

Internet Demographics and TrendsInternet Demographics and Trends

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On-Line PositioningOn-Line Positioning

Identify the most important target market

Identify that market’s on-line need

Determine how the company’s Internet presence meets that need

Identify how the on-line presence is better than the competition.

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Product Strategies on the Product Strategies on the WebWeb

Personalized Service

Personalized Service

BrandingBranding

Virtual On-Line Product Trials

Virtual On-Line Product Trials

Ways to OvercomeWays to OvercomeLack of Lack of

Product ContactProduct Contact

Ways to OvercomeWays to OvercomeLack of Lack of

Product ContactProduct Contact

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Customer Relationship MarketingCustomer Relationship Marketingon the Interneton the Internet

OpportunitiesOpportunitiesforfor

Customer Customer RelationshipRelationship

MarketingMarketing

OpportunitiesOpportunitiesforfor

Customer Customer RelationshipRelationship

MarketingMarketing

Profiles of preferencesProfiles of preferences

E-mail notificationsE-mail notifications

Customer serviceCustomer service

Convenient on-line shopping

Convenient on-line shopping

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On-Line PromotionOn-Line Promotion

Banner AdvertisementsBanner Advertisements

Button AdvertisementsButton Advertisements

Interstitial AdvertisementsInterstitial Advertisements

Untargeted E-Mail MarketingUntargeted E-Mail Marketing

Targeted E-Mail MarketingTargeted E-Mail Marketing

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The Virtual CommunityThe Virtual Community

Bulletin BoardsBulletin Boards

Chat RoomsChat Rooms

NewslettersNewsletters

Discussion ListsDiscussion Lists

Types ofTypes ofVirtualVirtual

CommunitiesCommunities

Types ofTypes ofVirtualVirtual

CommunitiesCommunities

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Examples of Internet StrategiesExamples of Internet Strategies

Increase or enhance exposureIncrease or enhance exposure

Improve customer serviceImprove customer service

Provide new products/servicesProvide new products/services

Add value to existing products/servicesAdd value to existing products/services

Lower overall company costsLower overall company costs

Create one-to-one customer relationshipsCreate one-to-one customer relationships

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Advantages ofAdvantages ofElectronic PublicationsElectronic Publications

Information content that is more currentInformation content that is more current

The ability to make complex searchesThe ability to make complex searches

Easier access to worldwide informationEasier access to worldwide information

Incorporation of multi-mediaIncorporation of multi-media

Lower publication costsLower publication costs

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Uses of Interactive Web SitesUses of Interactive Web Sites

Execute TransactionsExecute Transactions

Deliver Electronic Products and Services

Deliver Electronic Products and Services

Collect Demographic and Behaviouristic Customer Data

Collect Demographic and Behaviouristic Customer Data

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Internet Direct SellingInternet Direct Selling

AdvantagesAdvantagesAdvantagesAdvantages

Eliminate distribution network complexity

Increase customer traction at low costs of contact

DisadvantagesDisadvantagesDisadvantagesDisadvantages

Need to manage all channel activities

Hit rates may be low

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E-TailingE-Tailing

Retailing on the Web

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Internet Shopping vs. Internet Shopping vs. Store ShoppingStore Shopping

For many, Internet shopping is more convenient and less expensive

Store shopping provides product “touch and feel”

E-tailing changes shopping from entertainment to a functional task

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Evaluating the OutcomeEvaluating the Outcome

HitsHits

CapturingWeb

Statistics

CapturingWeb

Statistics

Page ViewPage View

Site RegistrationSite Registration

Cookie TechnologyCookie Technology

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FINANCIALFINANCIALS of S of

NeTTINGNeTTING

FINANCIALFINANCIALS of S of

NeTTINGNeTTING

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FinancialsFinancials

0123456789

ENTRY LEVEL MEDIUMCOMPLEXITY

COMPLEX &COMPREHENSIVE

Technology level

Co

st i

n L

ak

hs

COST

50005000 1,00,0001,00,000

8,00,0008,00,000

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Financial ImplicationsFinancial Implications

Competitive advantage Competitive advantage

Reduction in expensesReduction in expenses

Reduced inventoryReduced inventory

Lower financialbarriers to entry

Lower financialbarriers to entry

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THANK YOUTHANK YOUTHANK YOUTHANK YOU