Csession 1

Welcome

TO THE ERA

OF

INTERNET MARKETING

The Supply Chains: Channels and Flows

The Supply Chains: Channels and Flows

GoodsInformation

Funds

DistributorsDistributorsSuppliersSuppliers Mfr.Mfr. RetailerRetailer ConsumersConsumers

The Traditional View

SupplierSupplier ConsumerConsumer

Distributor Distributor

ManufacturerManufacturer

RetailerRetailer

Global Supply Chains are being transformed

Global Supply Chains are being transformed

The Contemporary View

Yoox.com• e-Tailer focused in the fashion industry, started in

2000 by an Italian entrepreneur Federico Marchetti, Founder and CEO,

• 300 well known and luxury brands The group operates in 53 countries

• Sales of 2003: 22 millions €• Sales of 2005: 53 millions € (47% more than 2004)• Sales of 2007 91 millions € ( 38% more that 2006)• Reached the breakeven after 2 years (when the

competitors was running out of business)• Target: Young consumers (51% of customers in

the age group of 25-34 years)

The e-marketing Channel• The company’s website is customised in 28 versions:

this differentiation involves different pricing, offer and communication for each single country.

• Two thirds of customers are women; they look for high quality products and are used to making online purchases.

• Their age ranges from 19 to 29 years • Customer can send the product back without producing

any justification• Three millions visitors each month, 190,000 orders,

400,000 items; number of items proposed on the website is between 100,000 and 150,000 depending upon season. More than 4,000 new daily arrivals.

The e-marketing Channel• The company’s website is customised in 28 versions:

this differentiation involves different pricing, offer and communication for each single country.

• Two thirds of customers are women; they look for high quality products and are used to making online purchases.

• Their age ranges from 19 to 29 years • Customer can send the product back without producing

any justification• Three millions visitors each month, 190,000 orders,

400,000 items; number of items proposed on the website is between 100,000 and 150,000 depending upon season. More than 4,000 new daily arrivals.

MARKETING APPLICATIONS OF IM

AS AN ADVERTISING MEDIUM

A DIRECT RESPONSE MEDIUM

A PLATFORM FOR SALES TRANSACTIONS

A DISTRIBUTION CHANNEL

A RELATIONSHIP BULDING MEDIUM

E-business and e-commerce

The distinction between buy-side and sell-side e-commerce

5 “S” of IM

Types of web presence

• 1. Transactional e-commerce site:Examples – Amazon, Dell

• 2. Services-oriented/relationship building– Accenture, British Gas

• 3. Brand Building site– Tango, Guinness

• 4. Portal or media site– Yahoo!, Silicon.com

A generic internet marketing strategy development process

INTERNET MARKETINGVs

TRADITIONAL MARKETING

Interactivity and intelligence

Individualization

Integration

Disintermediation: The elimination of organizations or business process layers responsible for certain intermediary steps in a value chain, reducing costs to the consumer

Reintermediation: The shifting of the intermediary role in a value chain to a new source, adding additional value to the consumer

INDUSTRY RESTRUCTRING

INDEPENDENCE OF LOCATION

INTERNET TECHNOLOGY

The Internet is a global system of interconnected computer networks

that use the standard Internet Protocol Suite (TCP/IP) to serve billions of users worldwide. It is a network of networks that consists of

millions of private and public, academic, business, and government networks of local to global scope that are linked by a broad array of electronic and optical networking technologies.

The Internet carries a vast array of information resources and services, most notably the inter-linked hypertext documents of the World Wide Web (WWW) and the infrastructure to support

electronic mail.

How it works – client/server

How it works - HTML

Internet, intranet and extranet