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Internet Marketing By Dave Chaffey, Richard Mayer, Kevin Johnston and Fiona Ellis-Chadwick Second edition published by Prentice Hall/Financial Times end 2002 'A valuable and timely contribution' Chris Fill, Portsmouth University. Overview Content and structure Read samples from the book: Preface Chapter 1 Introduction Chapter 8 Web site promotion Buy the book at :www.amazon.co.uk
Internet marketing is a comprehensive guide to how organisations can use the Internet to support their marketing activities. Building on traditional marketing theory and concepts together with emerging academic literature, the book details a structured approach to applying the Internet for marketing. The book is intended to support readers who are, or will be involved with using the Internet in different capacities from integrating its use with existing marketing and communications strategies through to those involved with the creation and maintenance of web sites. It assumes no knowledge of the application of the Internet to marketing and basic concepts and terms are explained before exploring more advanced topics.
Introduction The Internet –
opportunity and threat The Internet represents a tremendous opportunity. For customers,
it gives a much wider choice of products, services and prices from different
suppliers and the means to select and purchase items more readily. For
organisations marketing these products and services it gives the opportunity to
expand into new markets, offer new services and compete on a more equal footing
with larger businesses. For those working within these organisations it gives the
opportunity to develop new skills and to use the Internet to improve the
competitiveness of a company. At the same time, the
Internet gives rise to many threats to organisations. For example, start-up
companies such as Amazon (books) (www.amazon.com), Expedia
(travel) (www.expedia.com), AutoByTel (cars) (www.autobytel.com)
and CDNow! (CDs) (www.cdnow.com) have captured a significant part
of their market and struck fear into the existing players. Indeed the phrase
‘amazoning a market sector’ has become an often-used expression among
marketers. The Internet – how to react? With the success stories of companies capturing market share
together with the rapidly increasing adoption of the Internet by consumers and
business buyers has come a fast-growing realisation that all organisations must
have an effective Internet presence to prosper, or possibly even survive! Michael
Porter has said: ‘The key question is not
whether to deploy Internet technology – companies have no choice if they want
to stay competitive – but how to deploy it.’ But, how is an effective Internet presence achieved in a medium
that is alien to most companies? Are existing marketing concepts, theories and
models still valid? What is the effect on channel and market structures? How
should the Internet be used to support existing business and marketing
strategies? How should the web site be structured and designed? How should the
site be promoted online and offline? How can the Internet be used to
communicate with customers and build loyalty? How can we assess whether we are
achieving these objectives? The aim of this book is to answer this type of
question so that graduates entering employment and practitioners can help the
companies for which they work to compete successfully using this new, digital
medium in conjunction with existing media. The Internet – skills required? This book has been written to help marketers develop the
knowledge and skills they need in order to be able to use the Internet
effectively. Specifically, this book addresses the following needs: n There
is a need to know to what extent the Internet changes existing marketing models
and whether new models and strategies can be applied to exploit the medium
effectively. n Marketing practitioners will need practical
Internet marketing skills to market their products effectively. Knowledge of
the new jargon – terms such as ‘portal’, ‘clickthrough’, ‘cookie’, ‘hits’,
‘page impressions’, ‘digital certificate’ – and of effective methods of site
design and promotion will be necessary, either for direct ‘hands-on’
development of a site or to enable communication with other staff or suppliers
who are implementing and maintaining the site. n Given the rapidly changing market
characteristics and best practices of Internet marketing, web-based information
sources are needed to update knowledge regularly. This text and the supporting
companion web site contain extensive links to web sites to achieve this. The content of this book assumes some
existing knowledge of marketing in the reader, perhaps developed through
experience or by students studying introductory modules in marketing
fundamentals, marketing communications or buyer behaviour. However, the text
outlines basic concepts of marketing such as the modern marketing concept,
communications theory, buyer behaviour and the marketing mix, and there is, at
the end of each chapter, a comprehensive list of further reading materials.
This includes widely used marketing texts as well as electronic media sources. The structure and contents of this book The book is divided into three parts, each covering a different
aspect of how organisations use the Internet for marketing to help them achieve
competitive advantage. Table P.1 indicates how the book is related to existing
marketing topics. Part 1
Internet marketing fundamentals (Chapters 1–3) Part 1 relates the use of the Internet to traditional marketing
theories and concepts, and questions the validity of existing models given the
differences between the Internet and other media. n Chapter 1 An introduction to Internet
marketing reviews the relationship between the Internet and the modern
marketing concept; the relationship between Internet marketing, e-marketing,
e-commerce and e-business and the benefits the Internet can bring to adopters
and outlines differences from other media. n Chapter
2 Internet micro-environment reviews how the Internet changes the immediate
marketplace of an organisation, including marketplace and channel structure. It
describes the type of environment analysis need to support Internet strategy by
examining how customers, competitors and intermediaries and the interplay
between them can be evaluated. n Chapter 3 Internet macro-environment? reviews
the impact of social, technological, economic, political and legal environmental
influences on Internet strategy and its implementation. Part 2
Internet strategy development (Chapters 4–6) Part 2 describes the emerging models for developing strategy and
provides examples of the approaches companies have used to integrate the
Internet into their marketing strategy. n Chapter 4 Internet marketing strategy
considers how the Internet strategy can be aligned with business and marketing
strategies and describes a generic strategic approach with phases of situation
review, goal setting, strategy formulation and resource allocation and
monitoring. n Chapter
5 The Internet marketing mix assesses how the different elements of the
marketing mix can be varied in the online environment as part of strategy
formulation. n Chapter
6 Relationship marketing using the Internet details the strategies and
tactics for using the Internet to build and sustain ‘one-to-one’ relationships
with customers. Part 3
Internet marketing: implementation and practice (Chapters 7–11) Part 3 of the book explains practical approaches to implementing
an Internet marketing strategy. Techniques for communicating with customers,
building relationships and facilitating electronic commerce are all reviewed in
some detail. Knowledge of these practical techniques are essential for
undergraduates on work placements involving a web site and for marketing
managers who are dealing with suppliers such as design agencies. n Chapter 7 Achieving online service quality explains
the work involved in the different stages of building a web site in order to
achieve the goal of service quality. The stages include analysis of customer
needs, design of the site structure and layout, and creating the site. n Chapter
8 Interactive marketing communications describes the novel characteristics
of new media, and then goes on to review different online and offline promotion
techniques necessary to build traffic to a web site and for other promotion
objectives. Among the techniques covered are: banner advertising, affiliate
networks, promotion in search engines and directories, co-branding and
sponsorship, e-mail, loyalty techniques and PR. n Chapter
9 Maintaining and monitoring the online presence defines a process for
successful updating of a site and online and offline methods for assessing the
effectiveness of the site in delivering business and marketing benefits. n Chapter
10 Business-to-consumer Internet marketing examines models of marketing to
consumers, and provides many case studies of how retail businesses are tackling
such marketing. n Chapter
11 Business-to-business Internet marketing examines the different area of
marketing to other businesses, and provides many examples of how companies are
achieving this to support international marketing. It also discusses the
different stages of the buying decision such as supplier search, product
evaluation and selection, purchase, post-purchase customer service and
evaluation and feedback. Who should use this book? Students This book has been created primarily as the main student text for
undergraduate and postgraduate students taking specialist marketing courses or
modules which cover e-marketing, Internet and digital marketing, electronic
commerce and e-business. The book is relevant to students who are: n Undergraduates on business programmes
which include modules on the use of the Internet and e-commerce. This includes
specialist degrees such as Internet marketing, electronic commerce, marketing,
tourism and accounting or general business degrees such as business studies,
business administration and business management. n Undergraduate
project students who select this topic for final year projects/dissertations
– this book is an excellent supporting text for these students. n Undergraduates
completing a work placement in a company using the Internet to promote its
products. n Students at
college aiming for vocational qualifications such
as the HNC/HND in Business Management or Computer Studies. n Postgraduate
students taking specialist masters degrees in electronic commerce or
Internet marketing, generic MBAs and courses leading to qualifications such as
Certificate in Management or Diploma in Management Studies which involve
modules on electronic commerce and digital marketing. Practitioners There is also much of relevance in this book for marketing
practitioners, including: n Marketing managers or specialists such as
e-commerce managers or e-marketing managers responsible for defining an
Internet marketing strategy and implementing and maintaining the company web
site. n Senior
managers and directors wishing to understand the potential of Internet
marketing for a company and who need practical guidelines for how to exploit
this potential. n Technical
project managers or webmasters who may understand the technical details of
building a site, but have a limited knowledge of marketing fundamentals and how
to develop an Internet marketing strategy. What does the book offer to lecturers
teaching these courses? The book is intended to be a comprehensive guide to all aspects
of using the Internet and other digital media to support marketing. The book
builds on existing marketing theories and concepts, and questions the validity
of models in the light of the differences between the Internet and other media.
The book references the emerging body of literature specific to Internet
marketing. It can therefore be used across several modules. Lecturers will find
the book has a good range of case studies, activities and exercises to support
their teaching. Web site references are given in the text and at the end of
each chapter to important information sources for particular topics. Student learning features A range of features have been incorporated into this book to help
the reader get the most out of it. They have been designed to assist
understanding, reinforce learning and help readers find information easily. The
features are described in the order in which you will encounter them. At the start of each chapter The ‘chapter at a glance’ page provides
easy navigation for each chapter, it contains: n Main
topics: the main topics and their page numbers. n Case
studies: the main cases. n Learning
objectives: a list describing what readers can learn through reading the
chapter and completing the exercises. n Key
questions for marketers: explains the relevance of the chapter for
practitioners. n Links to other
chapters: a summary of related information in other
chapters. In each chapter n Definitions:
when significant terms are first introduced the main text contains succinct
definitions in boxes for easy reference. n Web
references: where appropriate, web addresses are given to enable readers to
obtain further information. They are provided in the main text where they are
directly relevant as well as at the end of the chapter. n Case
studies: real-world examples of how companies are using the Internet for
marketing. Questions at the end of the case study are intended to highlight the
main learning points from the example. n Minicase
studies: short features which give a more detailed example, or explanation,
than is practical in the main text. They do not contain supplementary
questions. n Activities:
exercises in the main text which give readers the opportunity to practise and
apply the techniques described in the text. n Chapter
summaries: intended as revision aids to summarise the main learning points
from the chapter. At the end of each chapter n Self-assessment
exercises: short questions which will test understanding of terms and
concepts described in the chapter. n Discussion
questions: these require longer essay-style answers discussing themes from
the chapter. They can be used either as topics for individual essays or as the
basis for seminar discussion. n Essay questions: conventional essay
questions. n Examination
questions: typical short answer questions of the type that are encountered
in exams. These can also be used for revision. n References:
these are references to books, articles or papers referred to within the
chapter. n Further
reading: supplementary texts or papers on the main themes of the chapter.
Where appropriate a brief commentary is provided on recommended supplementary
reading on the main themes of the chapters. n Web links:
these are significant sites that provide further information on the
concepts and topics of the chapter. This list does not repeat all the web site
references given within the chapter, for example company sites. For clarity,
the web site address prefix ‘http://’ is omitted. At the end of the book n Glossary:
definitions of all key terms and phrases used within the main text,
cross-referenced for ease of use. n Index:
all key words and abbreviations referred to in the main text. Support material Free supplementary materials are available via the Pearson
Education companion books web site at www.booksites.net/chaffey to
support all users of the book. This regularly updated web site contains advice,
comment, support materials and hyperlinks to reference sites relevant to the
text. There is a password-protected area for lecturers only to discuss issues
arising from using the text; additional examination-type questions and answers;
a multiple choice question bank with answers; additional cases with suggestions
for discussion; a downloadable version of the Lecturer’s Guide and OHP Masters. Table
P.1 Coverage of marketing topics in
different chapters Topic 1 2 3 4 5 6 7 8 9 10 11 Advertising 3 3 3 Branding 3 3 3 Buyer behaviour 3 3 3 3 3 3 3 3 3 3 Channel and
market structure 3 3 3 3 3 Communications
mix 3 3 3 Communications
theory 3 3 Customer service
quality 3 3 3 3 3 Direct marketing 3 3 3 Ethical
marketing 3 International
marketing 3 3 3 3 3 3 Marketing
concept 3 3 3 3 3 Marketing mix 3 3 3 3 3 3 Marketing
planning 3 3 3 3 Marketing
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