Internet Marketing - ADN Mexico

579 Pages·2006·8.34 MB·English

by  Alex Mould

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‘The authors have been highly successful in showing that they not only understand the relevant academic aa
literaturebut are also familiar with the complexities of real life experienced by many practitioners.’ tetett
Dr Ahmad Jamal, Cardiff Business School ggee
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‘Comprehensive, up-to-date and practical in focus.’ Im Imrr
Dr Lisa Harris, Brunel University
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Internet Marketing: Strategy, Implementation and Practice, Third Editionprovides a comprehensive guide to how organisations nntt
can use the Internet to support their marketing activities, and covers all aspects of Internet marketing — environment, tt
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analysis, strategy development, and digital marketing campaign-planning and execution. tt
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The book is based on emerging academic models and examples of best practice from leading experts in digital media. nn

The practical knowledge developed through reviewing these concepts and practices will enable the reader to exploit the aa
opportunities of marketing using the Internet while minimising risks. nnaa
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New features in this edition include: tt
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(cid:2) In-depth global cases illustrating best practice and the challenges of online marketing from well-known global ee
e-businesses, including Amazon and eBay tt
(cid:2) Updated references to the full range of digital media, including blogging, RSS, instant messaging, podcasting, ii
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digital TV and mobile marketing
(cid:2) Improved four-colour design to increase clarity and ease readability
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(cid:2) Greater focus on strategy and development, with a revised chapter on Improving E-Marketing Performance
A Companion Website at www.pearsoned.co.uk/chaffey contains additional study materials for students, as well as
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extensive links to relevant websites and extra pedagogical resources designed for lecturers.
EEDDIITTIIOONN
Dave Chaffey(www.davechaffey.com) is an Internet Marketing trainer and consultant for Marketing Insights Limited. He is
a lecturer on e-marketing courses at Cranfield and Warwick Universities and the Institute of Direct Marketing. Dave has
been recognised by the CIM as one of the 50 marketing 'gurus' worldwide who have shaped the future of marketing. EECC
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Fiona Ellis-Chadwickis a lecturer in Marketing at the Business School at Loughborough University and is a member of the isisaa
Marketing and Retailing Research Group. Her work has been published in Journal of Business Research, International --ffff
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Journal of Retail Distribution and Management, European Journal of Marketing, Internet Research, and Journal of Retailing and
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Consumer Services.
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Richard Mayeris a Senior Lecturer in Marketing at the University of Derby, where he is the programme manager for CIM dd J J
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qualifications. He is also the Director of his own Marketing Training Company, specialising in Strategic Marketing, Business
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to Business Marketing and Marketing Communications. ccnn
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Kevin Johnstonis a Senior Lecturer at Liverpool John Moores University, specialising in marketing, strategy and e-commerce. tt
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He previously lectured at the University of Derby, where he created one of the UK’s first e-commerce degree programmes. MM
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ISBN 0-273-69405-7
Additional student supportat
www.pearsoned.co.uk/chaffey
9 780273 694052
Cover image: www.pearson-books.com Additional student supportat
An imprint of © Eureka/Alamy www.pearsoned.co.uk/chaffey
INMA_A01.QXD 17/5/06 12:00 Page i
Internet Marketing
Strategy, Implementation and Practice
Visit the Internet Marketing, third editionCompanion Website at
www.pearsoned.co.uk/chaffeyto find valuable studentlearning material
including:
(cid:1) Web links to case study materials, academic articles and examples of
best practice
(cid:1) Guidance on tools and techniques for effective web sites
(cid:1) A comprehensive online glossary
INMA_A01.QXD 17/5/06 12:00 Page ii
We work with leading authors to develop the strongest
educational materials in business and management,
bringing cutting-edge thinking and best learning practice
to a global market.
Under a range of well-known imprints, including
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To find out more about the complete range of our
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INMA_A01.QXD 17/5/06 12:00 Page iii
Third Edition
Internet Marketing
Strategy, Implementation and Practice
Dave Chaffey
Fiona Ellis-Chadwick
Richard Mayer
Kevin Johnston
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Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsoned.co.uk
First published 2000
Second edition published 2003
Third edition published 2006
© Pearson Education Limited 2000, 2003, 2006
The right of Fiona Ellis-Chadwick to be identified as author of
this work has been asserted by her in accordance with the
Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
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ISBN-13: 978-0-273-69405-2
ISBN-10: 0-273-69405-7
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalogue record for this book is available from the Library of Congress
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Typeset in 9/12.5pt Stone Serif by 30
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Brief contents
Preface xiii
Guided tour xxii
About the authors xxv
Acknowledgements xxvi
Part 1 Internet marketing fundamentals
1 An introduction to Internet marketing 3
2 The Internet micro-environment 41
3 The Internet macro-environment 97
Part 2 Internet strategy development
4 Internet marketing strategy 151
5 The Internet and the marketing mix 214
6 Relationship marketing using the Internet 256
Part 3 Internet marketing: implementation and practice
7 Delivering the online customer experience 301
8 Interactive marketing communications 348
9 Maintaining and monitoring the online presence 415
10 Business-to-consumer Internet marketing 451
11 Business-to-business Internet marketing 484
Glossary 514
Index 534
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1
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Contents
Preface xiii Introduction 42
Guided tour xxii Different environment components 43
About the authors xxv Marketplace 45
Acknowledgements xxvi Competitive forces 46
Value creation and value chain analysis 49
New channel structures 53
Part 1
Location of trading in marketplace 57
INTERNET MARKETING FUNDAMENTALS
Commercial arrangement for transactions 58
Business models in e-commerce 59
1 An introduction to Internet marketing 3 Revenue models 61
Learning objectives / Questions for marketers / Customers 61
Links to other chapters 3
Assessing demand for e-commerce services 62
Introduction – how significant is the Internet for Online demand for business services 72
marketing? 4
Online buyer behaviour 74
Marketing applications of Internet marketing 5
Customer persona and scenario analysis 75
Our changing media consumption 6
Multi-channel customer experiences 77
Our changing buyer behaviour 7
Models of online buyer behaviour 78
What is Internet marketing? 8
Competitors 85
E-marketing defined 9
Digital marketing defined 10 Suppliers 86
E-commerce and e-business defined 11 Intermediaries 86
E-business defined 11
Case Study 2 Zopa launches a new lending model 90
Business or consumer model? 12
Summary 92
What benefits does the Internet provide for the
marketer? 14 Exercises 93
Self-assessment exercises 93
A strategic approach to Internet marketing 18
Essay and discussion questions 93
How do Internet marketing communications differ
Examination questions 94
from traditional marketing communications? 20
References 94
A short introduction to Internet technology 26
Further reading 96
How does the Internet work? 27
Web links 96
From the Internet to intranets and extranets 32
Case Study 1 eBay thrives in the global
3 The Internet macro-environment 97
marketplace 33
Learning objectives / Questions for marketers /
Summary 37
Links to other chapters 97
Exercises 38
Introduction 98
Self-assessment exercises 38
Social factors 99
Essay and discussion questions 38
Social exclusion 100
Examination questions 38
Legal and ethical issues of Internet usage 101
References 39
Further reading 39 Privacy legislation 101
Web links 40 Other e-commerce legislation 113
Technological factors 116
2 The Internet micro-environment 41 Alternative digital technologies 120
Learning objectives / Questions for marketers / Digital radio 129
Links to other chapters 41 Security 131
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CONTENTS
Economic factors 136 Summary 209
Globalisation 137
Exercises 210
Political factors 138 Self-assessment exercises 210
Internet governance 139 Essay and discussion questions 210
Taxation 140 Examination questions 211
Tax jurisdiction 140
References 211
Case Study 3 Boo hoo – learning from the largest Further reading 213
European dot-com failure 141 Web links 213
Summary 144
Exercises 144 5 The Internet and the marketing mix 214
Self-assessment exercises 144 Learning objectives / Questions for marketers /
Essay and discussion questions 144 Links to other chapters 214
Examination questions 145 Introduction 215
References 145
Product 217
Further reading 146
The long tail concept 223
Web links 147
The Internet and branding 224
The importance of brand online 229
Part 2 Price 231
INTERNET STRATEGY DEVELOPMENT 1 Increased price transparency 231
2 Downward pressure on price 233
3 New pricing approaches (including auctions) 235
4 Internet marketing strategy 151
4 Alternative pricing structure or policies 237
Learning objectives / Questions for marketers /
Links to other chapters 151 Place 237
1 Place of purchase 238
Introduction 152
2 New channel structures 240
Internet strategy is a channel marketing strategy 152
3 Channel conflicts 240
The scope of Internet marketing strategy 153
4 Virtual organisations 242
An integrated Internet marketing strategy 154
Promotion 243
Is a separate Internet marketing plan needed? 154
People, process and physical evidence 245
A generic strategic approach 157
People 245
Situation review 160
Process 248
Internal audit or analysis 160
Physical evidence 248
External audits or analysis 166
Case Study 5 The re-launched Napster changes
Strategic goal setting 168
the music marketing mix 248
Frameworks for objective setting 172
Summary 251
Strategy formulation 174
Exercises 252
Decision 1: Market and product development
Self-assessment exercises 252
strategies 176
Essay and discussion questions 252
Decision 2: Business and revenue models strategies 179
Examination questions 252
Decision 3: Target marketing strategy 180
Decision 4: Positioning and differentiation References 253
strategy (including the marketing mix) 185 Further reading 255
Decision 5: Multi-channel distribution strategy 191 Web links 255
Decision 6: Multi-channel communications
6 Relationship marketing using the
strategy 194
Decision 7: Online communications mix and budget 196 Internet 256
Decision 8: Organisational capabilities (7S) 197 Learning objectives / Questions for marketers /
Links to other chapters 256
Strategy implementation 204
Case Study 4 Tesco.com uses the Internet to Introduction 257
support its diversification strategy 207 Key concepts of relationship marketing 258
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CONTENTS
Benefits of relationship marketing 258 Web site prototyping 308
Differentiating customers by value 260 Initiation of the web site project 309
Key concepts of electronic customer relationship Domain name registration 309
management (e-CRM) 262 Selecting an Internet service provider (ISP) 310
Benefits of e-CRM 263 Researching site users’ requirements 312
Marketing applications of CRM 264 Usability 312
CRM technologies and data 264 Web accessibility 314
Customer lifecycle management 267 Localisation 317
Permission marketing 268 Reviewing competitors’ web sites 317
Personalisation and mass customisation 270 Designing the information architecture 318
Online and multi-channel service quality 272 Designing the user experience 322
Approaches to implementing e-CRM 272 Developing customer-oriented content 323
Stage 1: Attract new and existing customers to site 273 Marketing-led site design 324
Stage 2a: Incentivise visitors to action 273 Elements of site design 324
Stage 2b: Capture customer information to Site design and structure 324
maintain relationship 273 Page design 332
Content design 332
Stage 3: Maintain dialogue using online
communication 275 Development and testing of content 334
Stage 4: Maintain dialogue using offline Testing content 334
communication 276 Tools for web site development and testing 334
The IDIC approach to relationship building 277 Promote site 335
Techniques for managing customer activity and
Service quality 335
value 278
Tangibles 336
Lifetime value modelling 278
Reliability 337
Loyalty schemes 286
Responsiveness 337
Virtual communities 288
Assurance 338
Customer experience – the missing element
Empathy 338
required for customer loyalty 290
The relationship between service quality, customer
Case Study 6 Boots mine diamonds in their satisfaction and loyalty 339
customer data 291
Case Study 7 Refining the online customer
Summary 293 experience at dabs.com 341
Exercises 294 Summary 343
Self-assessment exercises 294 Exercises 344
Essay and discussion questions 294 Self-assessment exercises 344
Examination questions 294 Essay and discussion questions 345
References 295 Examination questions 345
Further reading 296 References 345
Web links 296 Further reading 347
Web links 347
Part 3
8 Interactive marketing communications 348
INTERNET MARKETING:
IMPLEMENTATION AND PRACTICE Learning objectives / Questions for marketers /
Links to other chapters 348
Introduction 349
7 Delivering the online customer
The characteristics of interactive marketing
experience 301
communications 350
Learning objectives / Questions for marketers /
Differences in advertising between traditional and
Links to other chapters 301
digital media 354
Introduction 302
Integrated Internet marketing communications 357
Planning web site design and build 304
Integration through time 360
Who is involved in a web site project? 306 Campaign response mechanics 362
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