Jan 18, 2016
The University of Salford
University of Salford A suburb of Manchester in the North-
West of England 15000 students, mainly from the
Manchester area 1000 international students 6 Halls of Residence One of three Universities in Manchester Manchester is the biggest “student city”
in Europe (250,000 – 300,000)
University of Salford
University of Salford
Salford Quays
Salford Quays
Manchester
Presentation Objectives To Consider the Marketing
Communications Potential of the Web
To consider the role of traditional / “old-fashioned” marketing communications
To look at the possible opportunities and dangers involved in using the Internet
Other Presentation Objectives “To get you thinking”!
“To get you to participate”!
To use and integrate the material in to your other studies
To use the ideas and benefit from them in the “real world” of business
Some facts and figures
650 million users worldwide (2003) 200 million users in Europe U.K. 29 M, Italy 23 M, Germany 38 M 31.6 million domain names(2003) Two big implications:People are watching less televisionInteractivity is increasing
Original Business Uses-1995
Email Transferring files from one computer
to another----Supplier/customer implications
On-Line discussion---bulletin boards Searching and browsing Posting, hosting and presenting
information
Main Uses/Potential-2005
Customer Relationship Management
E-Commerce
Information gathering
Marketing Communications
Massive Potential but also Dangers
Is the Internet just another medium?
Should our attitude be to use it and worry about it later?
Has the Internet special characteristics that we need to understand and evaluate?
Big Dangers if the use of the World Wide Web is not Managed and Understood!!!!
Poor management of customers
Non delivery of products-alienation of customers
Create negative attitudes- no customer loyalty
Can Threaten long-term future-NO CUSTOMERS!!!
Implications The Web can NOT be used in isolation
from other marketing functions
Integration essential:-Sales, Advertising, Service
And
Investment in training
The internet is Different to Traditional Media Global nature Interactivity 24 hours a day Immediacy Access Portability Opportunity to integrate with other
communications Few barriers to entry
Implications and Questions We need to understand our “web market”
Will customers buy our products?
Will the Web attract new customers?
Will the web enhance and improve our business?
Strategic Segmentation(www.insites.be)
e-B
usi
ness
Str
ate
gy
e-Business Adoption
L
H
L H
e-Followers (36%)
e-Visionaries(27%)
e-Laggards (37%)
Segmenting the Belgian surfers
Frequency of internet usage
Intensity of internet usage
Pros24%New Borns
38%
Triers16%
Addicts22%
Pros Pros have the largest internet experience Frequent but not so intensive surfers Use the internet mainly for professional
reasons (14% doesn’t even have an internet connection at home)
Highly educated Internet is used for daily activities (e.g. looking
up phone numbers…) Largest percentage of e-shoppers Most frequent online shoppers
Triers
Average internet experience Mostly during the weekend & holidays Mostly private usage They want to explore the internet, but
the internet isn’t integrated in their daily life by far untill now
They are overwhelmed by the possibilities of the internet
New borns
>50% first virtual steps in 2000 or 2001 Largest percentage of free internet
subscriptions Low tech segment, low awareness Largest percentage of female users Use a limited number of sites Don’t seem to try out many possibilities
of the internet
Addicts Most addicts started using the web in 98-99 ‘Anywhere, anyplace’ is their motto High tech lovers Highest percentage of cable/adsl users Fun surfers: try out almost everything there
is on the web The internet is an important part of their
daily life Large percentage of e-shoppers
Internet Users (Forsyth et al 2000)
Surfers-site has to be good for them to stop
Bargainers-want a good deal, sense of community
Connectors-novices who want to relate to others through chat services
Routiners-concentrate on a few sites for news and financial information
Sportsters-want to be entertained
Who is using the internet?Webo-graphic (www.insites.be) 13% early adopters
Male, between 25-34 years old and they hold a high level of education
Frequency 37.9% of the surfers uses the net at least five days a week New users tend to be less frequent surfers
Intensity 37,6% of the surfers uses the net for more than one hour during
their surfing days New users are less intensive internet users
Purpose of use 41% uses the internet for mainly private reasons 20% uses the web mostly for professional matters
How can we make our web “presence” work
How can we INTERACT effectively?
Do we want to interact?-costs money, time etc
Do we have to change our business philosophy?
Consumer control of contact and content in communications media
Consumer control of content
Consumer control of contact
Direct mail advertising
lessergreater
greater
lesser
telemarketing
Personal selling
Electronic commerce
Kiami (1998)
The 7Cs of the Customer Interface
Context-layout of website Content-text, sound etc Community-user to user communication Customization-user needs looked after Communication- two way communication Commerce-ability for transactions Connection-other linked sites
Specific Characteristics of Interactive Media Social Presence-warm, sociable, sensitive
etc Communications style- is it instantaneous
or do we have to wait for the interaction? Consumer control of content-what
messages do we like or want to respond to?
Consumer control of contact-how much information do we want to interact with?
Interaction on TVI’m a celebrity. Get me out of here!!
20 million viewers
Voting by viewers-50%-60% participation!
Talked about on TV, Radio etc
Social presence and communications style in communications media
Social presence
Communications style
higher
lower instant delayed
Personal selling
TelemarketingElectronic commerce
Traditional advertising
TV Shopping
Kiami (1998)
Determinants of Website Success Customer “outcomes”
Satisfaction, Repeat Visits, Visit intensity, Attitude/image
Website Characteristics
Content productivity, Browse efficiency, Design efficiency
Adoption of the InternetN
umbe
r of n
ew a
dopt
ers
Time
Lead
ing
edge
Conservative adopters
1 2 4 51. Innovators (2.5%)2. Opinion leaders (13.5%)3. Early majority (34%)4. Late majority (34%)5. Laggards (16%)
3
Source: Chaffey. Internet marketing
Implications If the consumer does not like the
content, he/she will go away
If the consumer does not like the contact he/she will go away
Perhaps the biggest danger is the empowerment by the wed of consumers
Main Challenges to Businesses How convenient to the consumer is our
website? How easy it will be to navigate? How can we support other marketing
tasks e.g. delivery of good, telephone support
Commitment in time and cost What is the role of our web presence?Misunderstood- all you need is a website!!
Development Cycles for Websites-Multinationals
Information model Transactional Model1.Information about image and
products
2.Information-gathering/market research
3.Client support/services
4.TransactionsQuelch.J.A. and Klein.L.R.(1996)
Development Cycles for Websites-internet starters
Transaction Model Information Model1.Transactions
2.Information about image and products
3.Client support/services
4.Information gathering/market research
E-commerce-still mainly books and CDs
0% 5% 10% 15% 20% 25% 30% 35% 40%
books
CD's
sof tware
other
tickets f or certain events
tickets f or plane, train , boat
fashion and shoes
hardware
overnight stay in hotel
video's
complete trip or vacation
groceries
magazines
toys
n=5290 (Filter:all those w ho ever bought something online)
Top management knowledge
76%
65%
50%
49%
47%
25%
21%
11%
0% 20% 40% 60% 80% 100%
Mobile commerce
virtual market places
online auctions
buying through internet
selling through internet
Extranets
Intranets
general website
www.insites.be(2002)
Attitudes to Activities on the Web
1 2 3 4 5
attitude towards providing credit card details on-line
attitude towards onwanted e-mail
attitude towards commercial SMS messages
attitude towards leaving personal data on the internet
attitude towards banners
attitude towards sites where you can buy products
attitude towards electronical newsletter
attitude towards asked e-mail
www.insites.be (2002)
How Important will be the Role of the Internet in the future?
4 Segments of E-Shoppers
2,5
3
3,5
4
4,5
5
5,5
2,5 3 3,5 4 4,5 5
Positive E-commerce Attitude
Exploratory SurfingGoal oriented Surfing
Negative E-commerce Attitude
15%
Utilitarians
18%
Skeptics
33%Hard to Catch33%
Easy targets
Skeptics Laggards in adopting the internet Low level of responsiveness Oldest segment, largest share of woman in
this segment Lowest intention to buy in the future: lowest
satisfaction of previous purchases, lowest level of trust in e-commerce and e-commerce sites
Do not want to be bothered by e-mails, banners…, desires no interaction
Skeptics: key figures
18% of E-Shoppers population 476.274 Skeptics in E-Shoppers
population 11% of total E-shoppers spending 3.2 orders/year Average price/order: 108 euros Total spending among skeptics: 166
million Euros
33%
4 Segments of E-Shoppers
2,5
3
3,5
4
4,5
5
5,5
2,5 3 3,5 4 4,5 5
Positive E-commerce Attitude
Exploratory SurfingGoal oriented Surfing
Negative E-commerce Attitude
15%
Utilitarians
18%
Skeptics
33% Hard to Catch
Easy targets
Hard to catch Early adopters of the Internet Highest frequency and intensity of
internet usage This segment has the lowest level of
tolerance towards commercial messages to stimulate online buying
The hard to catch-shoppers don’t like to leave any personal information on websites
Hard to Catch: Key figures 33% of E-Shoppers population 868.265 Hard to catch-shoppers in E-
Shoppers population 32% of total online spending 5 orders/year Average price/order: 112 euros Total spending among Hard to catch-
shoppers: 0.5 billion euros
4 Segments of E-Shoppers
2,5
3
3,5
4
4,5
5
5,5
2,5 3 3,5 4 4,5 5
Positive E-commerce Attitude
Exploratory SurfingGoal oriented Surfing
Negative E-commerce Attitude
15%
Utilitarians
18%
Skeptics
33%Hard to Catch33%
Easy targets
Easy Targets 33% of e-shoppers population, but stands for almost 40% of the e-shoppers spending!
Most responsive Open for banners, e-mail, commercial
messages… Highest intention to buy in the future Easy targets have a high level of trust
in e-shops, payment methods… Like to interact through the net
Easy Targets: Key figures
33% of E-Shoppers population 870.081 Easy Targets in E-Shoppers
population 39% of total E-Shoppers spending 5.4 orders/year Average price/order: 126 euros Total spending among Easy Targets:
0.6 billion euros
4 Groups of E-Shoppers
2,5
3
3,5
4
4,5
5
5,5
2,5 3 3,5 4 4,5 5
Positive E-commerce Attitude
Exploratory SurfingGoal oriented Surfing
Negative E-commerce Attitude
15%
Utilitarians
18%
Skeptics
33%Hard to Catch33%
Easy targets
Utilitarians
Goal oriented surfers Largest percentage of job-related
surfing Lowest frequency and intensity of
internet usage Lowest level of responsiveness Low level of tolerance towards
commercial messages and interaction
Utilitarians: Key figures
15% of E-Shoppers population 402.163 Utilitarians in E-Shoppers
population 17% of total E-Shoppers spending 4.5 orders/year Average price/order: 142 euros Total spending among Utilitarians:
258 million euros
Gameboy - 15 ,netsavvy
CyberLad - 23 ,‘loaded man online’
Cybersec - 31 ,Work user
Hit and runner -38 ,Directed
Infojunky - 40 ,Addicted
Cybermum - 42 ,Busy
A View of the Future David, a student in Virrat, feels tired. He
attends his English class on his computer. At 2pm! He then attends a Video Conference with 100 international students.
He “virtual shops” at the supermarket. The goods are delivered to his flat.
He spends the next 2 hours playing an on-line football game with a friend in Mexico.
Finally he joins a chat room talking about and playing “rap” music
A View of the Future-Continued David leaves Virrat and “attends”
the VIRTUAL MBA course at Salford (U.K.) in Tampere
He has a VIRTUAL INTERVIEW at Volkswagen in Munich
He VIRTUAL SHOPS in the Rodeo Drive Mall, Los Angeles (U.S.A.)
He has a VIRTUAL SIGHTSEEING HOLIDAY in Australia (10 euros)
An Alternative View of the Future Ann, a student at Virrat, attends her English
class with her friends. They work together and have a coffee at break time.
In the afternoon they go to a designer shopping centre in Helsinki. They try on lots of clothes.
In the evening she looks at the English class again on the computer and does some tests.
She looks on the Tampere Website for a film to see at the Cinema. She texts and emails her friends.
An Alternative View of the Future (continued)
Ann attends a team building course with 20 others in the Alps.
She attends a Karaoke class in Virrat She books a holiday on the internet She goes to the library to borrow some
books She is STILL shopping with her friends She is considering dating a VIRTUAL
BOYFRIEND!!
Two Opposing Views
1.) The Internet will become a significant part of our lives, changing our lifestyles and changing the way we live our lives
2.) The Internet will be a part of our lives but only a small part and will only be useful for carrying out boring, basic tasks.
The “PERSONAL” Factor
In a world of technology, increasingly the personal factor will be important-Telephone, shop and in general communications.
Implications: Communicators or web designers? Managers or “web monitors? To what extent do customers want to
speak to other human beings?!
Loss of Personal/Oral Skills
Need to invest in personal communications skills-Schools, Universities
Need to invest in people, employ more
Need to recognise importance of personal interaction
Alternatives to the Internet
Television Radio Teletext Telephone Information Offices People!!! The Cinema etc……
ConclusionsThe internet has enormous opportunities
but is misunderstood by many businesses.
The “Personal Factor” is still important but is this recognized by businesses?
Technology and the Web is one part of marketing strategy-not a replacement!!