Internet's Impact on Marketing

Internet's Impact on Marketing - Internet’s Impact on...

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Unformatted text preview: Internet’s Impact on Marketing Business Administration LAP 3 Objectives Explain the use of the Internet as a business communications tool. Explain the impact of the Internet on marketing functions. Objective A Explain the use of the Internet as a business communications tool. The Internet: New Avenues for Business Communications E­mail World Wide Web Advantages of E­mail • Fast • Inexpensive • Convenient • Accessible • Forwarding capability • Use of attachments • Easy to organize Disadvantages of E­mail • Improper use of company time • Lack of privacy • Avoidance of unpleasant situations • Informal • Easy to misinterpret • Evidence for lawsuits Disadvantages of E­mail • Government seizure of fraudulent or threatening messages • Use of space on company networks • Burden of responding to messages • Viruses • Complaints resulting from spam WWW Advantages Ability to easily provide information to others Access to vast amounts of information . . . The buying and selling of goods/services over the Internet WWW Disadvantages • Unequal access • Potential customers’ lack of computer equipment • Time commitments • Inaccurate or meaningless information • Viruses • Improper use of company time Internet Use Policies May be included in employee handbooks or posted on company Intranets In tern e Use t Po licie s Examples of E­mail Policies • What information can be forwarded/sent to other people • Company’s right to review employee e­mails • Length of time that messages can be left on the system • Importance of sending accurate and truthful information Examples of WWW Policies • Employees access web sites at own risk. • Business can monitor usage. • Inappropriate sites may be blocked. • Certain activities are prohibited. • Compliance with copyright laws is required. t Interne ny’s compa employee the follow ned in the to result in . agree cies outli I uld o so co termination poli to d usage Failure mediate ook. or im handb action a ry disciplin igna loyee s Emp Tate Larry ture Employees are usually required to acknowledge their willingness to comply with company policies. Objective B Explain the impact of the Internet on marketing functions. The Internet has sped up the processes by which business goals are accomplished. Marketing­Information Management Example: Valuable information can be learned Easy to track customer behavior about customers through the use of “cookies.” Spending Lifestyle Interests habits Marketing­Information Management Easy to find out about competitors http://www.topadagencie Top advertising agencies 1. WPP Group 2. Omnicom Group 3. Interpublic Group of Cos. 4. Dentsu 5. Havas Advertising 6. Publicis Groupe Marketing­Information Management Easy to do research The Internet: at work 24/7 Distribution ORDERS CDs $11.99 1,345,O13 • More customer awareness • Difficulty handling demand • Prohibitive shipping and handling costs • Increased need for speedy delivery Shipping/handling $6 • Smaller orders and shipments • Different channel partner relationships Pricing Example: Online stores may pay a sales commission of up to 15% for referrals from other web sites. Increased competition Family Medicine Smith results in Example: Airlines with unsold lower prices. seats often drastically drop prices until all tickets have Home Remedies been sold. Related Books • Price negotiations • Lower online prices • Higher online prices • Flexible pricing Andrews Family Health Jones Product/Service Management Less certainty about products’ popularity Example: Leaving the web site might indicate product descriptions weren’t detailed enough. Product/Service Management The WWW can be used to customize products to suit individual needs. Customization Product/Service Management Today, software can be downloaded right onto your computer hard drive. Different planning techniques $ • User manuals Software programs used to be packaged in boxes with: • Multiple floppy disks • Registration card Financing HARTFORD BANK Account balances Fund transfers Deposit inquiries Check inquiries Bill payment Your 24-hour banking center 24­hour banking Financing Online business loans Financing I’ll run your loan application through the computer, and we should have an answer in a few minutes! Online consumer credit information Promotion ♦ Banner advertisements ♦ E­mail messages ♦ Online newsletters ♦ Affiliate marketing ♦ Chat rooms ♦ Search engine optimization ♦ Online publicity ♦ Web site Inbox Compcore Sponsors Click here for savings on music and video! Race for the iMac Chat Room Ford Dealers Association Ryder Corporation Big Savings Features Models E. Smith Product info J. Brown Compare prices Trade­ins Google Cure H. Walker Financing E. George Locations Retail outletsUSA Chapter E. James Members New promotional methods Promotion Example: E­mail can be used to send information about upcoming sales, special discounts, and new product offerings. Inexpensive promotional methods Promotion Local retailers have historically concentrated their advertising efforts in surrounding areas. Now, online retailers can reach customers around the world. New target audiences Selling H Gc t IDA EdGtorxarEfayD Mo e n o Ne t Ad .com Delivery! • Many businesses only sell their products online. • The web site is the selling tool. • Information on an online site: Answers to frequently asked questions Product information Photographs Prices Shipping charges Delivery time • Customers do their own research and make decisions without salesperson influence. Need for fewer salespeople Selling Ms. Smith, Congratulations on your recent purchase. I hope you are enjoying your new car. If you have any questions or concerns, please contact us at www.carco/ We look forward to serving you in the future. Dennis Leary Customer Service Manager Different communication techniques Selling Concern about sales commissions Selling Product features Compare prices Retail outlets Availability Flatbed Scanners More customer control over the buying process Selling Sports in the 20th Century by Ron Smith Search • 80 Years of Football by Jeremy Styles Books Our price: $20.80 Sports in the • Those Were the Days by Fred Murtz Sports GO! You save: $5.20 20th Century • Encyclopedia of Baseball by Eric Foreman • Encyclopedia of Football by Eric Foreman 322 pages • The History of Hockey by I. C. Phingers 1st edition • The Sport of Kings by Sandy Jones • The History of Basketball by Ronnie Dio People who bought this book also bought: Personalization Hardcover Selling New security concerns MarkED Acknowledgements Original Developer Christopher C. Burke, MarkED Version 1.0 Copyright © 2002 MarkED Resource Center Digital­based photography sources: ADOBE IMAGE LIBRARY Personal Finance Obj. B: #PFI_004 Photos copyright Eyewire Inc. 833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada BRAND X PICTURES E­Commerce Obj. B: #BXP30961 8755 Washington Blvd., Culver City CA 90232 PHOTODISC, INC. The Designer Tools Series Vol. 10 Internet Icons Obj. A: #DT10012, #DT10024, #DT10008, #DT10056, #DT10019, #DT10080 Obj. B: #DT10099, #DT10033, #DT10010, #DT10053, #DT10029 Photos copyright PhotoDisc, Inc. 2013 Fourth Ave., Seattle, WA 98121 Copyright: All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws. ...
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This note was uploaded on 04/26/2011 for the course ECON 100 taught by Professor Mr.smith during the Spring '11 term at DeVry Sandy.

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