Internet Marketing : Strategy, Implementation and Practice

by Chaffey, Dave

• ISBN13: 9780273694052
• ISBN10: 0273694057
• Edition: 3rd
• Format: Paperback
• Copyright: 2006-01-01
• Publisher: Prentice Hall

Summary

Internet Marketing: Strategy, Implementation and Practice, Third Edition provides a comprehensive guide to how organisations can use the Internet to support their marketing activities, and covers all aspects of Internet marketing - environment, analysis, strategy development, and digital marketing campaign-planning and execution. The book is based on emerging academic models and examples of best practice from leading experts in digital media. The practical knowledge developed through reviewing these concepts and practices will enable the reader to exploit the opportunities of marketing using the Internet while minimising risks.

Author Biography

Dave Chaffey is a lecturer on e-marketing courses at Cranfield and Warwick Universities and the Institute of Direct Marketing Fiona Ellis-Chadwick is a lecturer in Marketing at the Business School at Loughborough University Richard Mayer is a Senior Lecturer in Marketing at the University of Derby Kevin Johnston is a Senior Lecturer at Liverpool John Moores University

Table of Contents

Preface	p. xiii
Guided tour	p. xxii
About the authors	p. xxv
Acknowledgements	p. xxvi
Internet Marketing Fundamentals
An introduction to Internet marketing	p. 3
Learning objectives / Questions for marketers / Links to other chapters	p. 3
Introduction - how significant is the Internet for marketing?	p. 4
Marketing applications of lnternet marketing	p. 5
Our changing media consumption	p. 6
Our changing buyer behaviour	p. 7
What is Internet marketing?	p. 8
E-marketing defined	p. 9
Digital marketing defined	p. 10
E-commerce and e-business defined	p. 11
E-business defined	p. 11
Business or consumer model?	p. 12
What benefits does the Internet provide for the marketer?	p. 14
A strategic approach to Internet marketing	p. 18
How do Internet marketing communications differ from traditional marketing communications?	p. 20
A short introduction to Internet technology	p. 26
How does the Internet work?	p. 27
From the Internet to intranets and extranets	p. 32
eBay thrives in the global marketplace	p. 33
Summary	p. 37
Exercises	p. 38
Self-assessment exercises	p. 38
Essay and discussion questions	p. 38
Examination questions	p. 38
References	p. 39
Further reading	p. 39
Web links	p. 40
The Internet micro-environment	p. 41
Learning objectives / Questions for marketers / Links to other chapters	p. 41
Introduction	p. 42
Different environment components	p. 43
Marketplace	p. 45
Competitive forces	p. 46
Value creation and value chain analysis	p. 49
New channel structures	p. 53
Location of trading in marketplace	p. 57
Commercial arrangement for transactions	p. 58
Business models in e-commerce	p. 59
Revenue models	p. 61
Customers	p. 61
Assessing demand for e-commerce services	p. 62
Online demand for business services	p. 72
Online buyer behaviour	p. 74
Customer persona and scenario analysis	p. 75
Multi-channel customer experiences	p. 77
Models of online buyer behaviour	p. 78
Competitors	p. 85
Suppliers	p. 86
Intermediaries	p. 86
Zopa launches a new lending model	p. 90
Summary	p. 92
Exercises	p. 93
Self-assessment exercises	p. 93
Essay and discussion questions	p. 93
Examination questions	p. 94
References	p. 94
Further reading	p. 96
Web links	p. 96
The Internet macro-environment	p. 97
Learning objectives / Questions for marketers / Links to other chapters	p. 97
Introduction	p. 98
Social factors	p. 99
Social exclusion	p. 100
Legal and ethical issues of Internet usage	p. 101
Privacy legislation	p. 101
Other e-commerce legislation	p. 113
Technological factors	p. 116
Alternative digital technologies	p. 120
Digital radio	p. 129
Security	p. 131
Economic factors	p. 136
Globalisation	p. 137
Political factors	p. 138
Internet governance	p. 139
Taxation	p. 140
Tax jurisdiction	p. 140
Boo hoo - learning from the largest European dot-com failure	p. 141
Summary	p. 144
Exercises	p. 144
Self-assessment exercises	p. 144
Essay and discussion questions	p. 144
Examination questions	p. 145
References	p. 145
Further reading	p. 146
Web links	p. 147
Internet Strategy Development
Internet marketing strategy	p. 151
Learning objectives / Questions for marketers / Links to other chapters	p. 151
Introduction	p. 152
Internet strategy is a channel marketing strategy	p. 152
The scope of Internet marketing strategy	p. 153
An integrated Internet marketing strategy	p. 154
Is a separate Internet marketing plan needed?	p. 154
A generic strategic approach	p. 157
Situation review	p. 160
Internal audit or analysis	p. 160
External audits or analysis	p. 166
Strategic goal setting	p. 168
Frameworks for objective setting	p. 172
Strategy formulation	p. 174
Market and product development strategies	p. 176
Business and revenue models strategies	p. 179
Target marketing strategy	p. 180
Positioning and differentiation strategy (including the marketing mix)	p. 185
Multi-channel distribution strategy	p. 191
Multi-channel communications strategy	p. 194
Online communications mix and budget	p. 196
Organisational capabilities (7S)	p. 197
Strategy implementation	p. 204
Tesco.com uses the Internet to support its diversification strategy	p. 207
Summary	p. 209
Exercises	p. 210
Self-assessment exercises	p. 210
Essay and discussion questions	p. 210
Examination questions	p. 211
References	p. 211
Further reading	p. 213
Web links	p. 213
The Internet and the marketing mix	p. 214
Learning objectives / Questions for marketers / Links to other chapters	p. 214
Introduction	p. 215
Product	p. 217
The long tail concept	p. 223
The Internet and branding	p. 224
The importance of brand online	p. 229
Price	p. 231
Increased price transparency	p. 231
Downward pressure on price	p. 233
New pricing approaches (including auctions)	p. 235
Alternative pricing structure or policies	p. 237
Place	p. 237
Place of purchase	p. 238
New channel structures	p. 240
Channel conflicts	p. 240
Virtual organisations	p. 242
Promotion	p. 243
People, process and physical evidence	p. 245
People	p. 245
Process	p. 248
Physical evidence	p. 248
The re-launched Napster changes the music marketing mix	p. 248
Summary	p. 251
Exercises	p. 252
Self-assessment exercises	p. 252
Essay and discussion questions	p. 252
Examination questions	p. 252
References	p. 253
Further reading	p. 255
Web links	p. 255
Relationship marketing using the Internet	p. 256
Learning objectives / Questions for marketers / Links to other chapters	p. 256
Introduction	p. 257
Key concepts of relationship marketing	p. 258
Benefits of relationship marketing	p. 258
Differentiating customers by value	p. 260
Key concepts of electronic customer relationship management (e-CRM)	p. 262
Benefits of e-CRM	p. 263
Marketing applications of CRM	p. 264
CRM technologies and data	p. 264
Customer lifecycle management	p. 267
Permission marketing	p. 268
Personalisation and mass customisation	p. 270
Online and multi-channel service quality	p. 272
Approaches to implementing e-CRM	p. 272
Attract new and existing customers to site	p. 273
Incentivise visitors to action	p. 273
Capture customer information to maintain relationship	p. 273
Maintain dialogue using online communication	p. 275
Maintain dialogue using offline communication	p. 276
The IDIC approach to relationship building	p. 277
Techniques for managing customer activity and value	p. 278
Lifetime value modelling	p. 278
Loyalty schemes	p. 286
Virtual communities	p. 288
Customer experience - the missing element required for customer loyalty	p. 290
Boots mine diamonds in their customer data	p. 291
Summary	p. 293
Exercises	p. 294
Self-assessment exercises	p. 294
Essay and discussion questions	p. 294
Examination questions	p. 294
References	p. 295
Further reading	p. 296
Web links	p. 296
Internet Marketing: Implementation and Practice
Delivering the online customer experience	p. 301
Learning objectives / Questions for marketers / Links to other chapters	p. 301
Introduction	p. 302
Planning web site design and build	p. 304
Who is involved in a web site project?	p. 306
Web site prototyping	p. 308
Initiation of the web site project	p. 309
Domain name registration	p. 309
Selecting an Internet service provider (ISP)	p. 310
Researching site users' requirements	p. 312
Usability	p. 312
Web accessibility	p. 314
Localisation	p. 317
Reviewing competitors' web sites	p. 317
Designing the information architecture	p. 318
Designing the user experience	p. 322
Developing customer-oriented content	p. 323
Marketing-led site design	p. 324
Elements of site design	p. 324
Site design and structure	p. 324
Page design	p. 332
Content design	p. 332
Development and testing of content	p. 334
Testing content	p. 334
Tools for web site development and testing	p. 334
Promote site	p. 335
Service quality	p. 335
Tangibles	p. 336
Reliability	p. 337
Responsiveness	p. 337
Assurance	p. 338
Empathy	p. 338
The relationship between service quality, customer satisfaction and loyalty	p. 339
Refining the online customer experience at dabs.com	p. 341
Summary	p. 343
Exercises	p. 344
Self-assessment exercises	p. 344
Essay and discussion questions	p. 345
Examination questions	p. 345
References	p. 345
Further reading	p. 347
Web links	p. 347
Interactive marketing communications	p. 348
Learning objectives / Questions for marketers / Links to other chapters	p. 348
Introduction	p. 349
The characteristics of interactive marketing communications	p. 350
Differences in advertising between traditional and digital media	p. 354
Integrated Internet marketing communications	p. 357
Integration through time	p. 360
Campaign response mechanics	p. 362
Objectives and measurement for interactive marketing communications	p. 363
Conversion marketing objectives	p. 365
Timescales for objective setting	p. 366
Campaign cost objectives	p. 367
Offline promotion techniques	p. 370
Advantages and disadvantages of using offline communications to support e-commerce	p. 371
Incidental and specific advertising of the online presence	p. 371
Public relations	p. 372
Direct marketing	p. 372
Other physical reminders	p. 372
Word of mouth	p. 373
Online promotion techniques	p. 373
Search engine marketing	p. 373
Search engine optimisation (SEO)	p. 376
Pay-per-click (PPC) search marketing	p. 381
Trusted feed	p. 383
Online PR	p. 384
What is PR?	p. 384
What is online PR?	p. 385
Differences between online PR and traditional PR	p. 385
Online PR activities	p. 386
Online partnerships	p. 388
Affiliate marketing	p. 388
Online sponsorship	p. 390
Interactive advertising	p. 391
Fundamentals of online advertising	p. 391
The purpose of interactive advertising	p. 392
Measurement of interactive ad effectiveness	p. 393
Interactive ad targeting options	p. 393
Interactive ad formats	p. 394
Making banner advertising work	p. 395
Buying advertising	p. 395
E-mail marketing	p. 397
Opt-in e-mail options for customer acquisition	p. 398
Opt-in e-mail options for prospect conversion and customer retention (house list)	p. 398
E-mail marketing success factors	p. 399
Managing inbound e-mail communications	p. 400
Viral marketing	p. 400
On-site promotional techniques	p. 402
Selecting the optimal communications mix	p. 403
Making FMCG brands sizzle online	p. 407
Summary	p. 409
Exercises	p. 410
Self-assessment exercises	p. 410
Essay and discussion questions	p. 411
Examination questions	p. 411
References	p. 411
Further reading	p. 413
Web links	p. 413
Maintaining and monitoring the online presence	p. 415
Learning objectives / Questions for marketers / Links to other chapters	p. 415
Introduction	p. 416
Performance management for Internet marketing	p. 417
Creating a performance management system	p. 418
Defining the performance metrics framework	p. 420
Tools and techniques for collecting metrics and summarising results	p. 424
The maintenance process	p. 433
How often should material be updated?	p. 434
Responsibilities in web site maintenance	p. 435
Who owns the process?	p. 435
Who owns the content?	p. 438
Who owns the format?	p. 438
Who owns the technology?	p. 438
Content management	p. 440
Learning from Amazon's culture of metrics	p. 441
Summary	p. 446
Exercises	p. 447
Self-assessment exercises	p. 447
Essay and discussion questions	p. 448
Examination questions	p. 448
References	p. 448
Further reading	p. 449
Web links	p. 449
Business-to-consumer internet marketing	p. 451
Learning objectives / Questions for marketers / Links to other chapters	p. 451
Introduction	p. 452
Key themes and concepts	p. 452
Online customers	p. 453
Who are the online customers?	p. 453
Online customers' expectations and motivations	p. 457
E-retailing	p. 462
Development of e-retailing	p. 462
E-retailing: the virtual channel	p. 467
E-retail activities	p. 467
Information functions	p. 467
Interactive functions	p. 468
Who are the e-retailers and what are they selling?	p. 469
Implications for e-retail marketing strategy	p. 472
lastminute.com: establishing and maintaining a competitive position	p. 478
Summary	p. 480
Exercises	p. 481
Self-assessment exercises	p. 481
Essay and discussion questions	p. 481
Examination questions	p. 481
References	p. 481
Further reading	p. 483
Web links	p. 483
Business-to-business Internet marketing	p. 484
Learning objectives / Questions for marketers / Links to other chapters	p. 484
Introduction	p. 485
Key themes and concepts	p. 485
B2B e-context	p. 486
Online environment analysis	p. 486
Commercial exchanges in B2B markets	p. 493
The electronic marketplace	p. 493
How organisations are using Internet technologies	p. 495
Trading relationships in B2B markets	p. 501
The exchange process	p. 502
The buying function	p. 502
Trading partnerships	p. 503
Digital marketing strategies	p. 504
Growth, volume and dispersion of electronic markets	p. 506
Summary	p. 510
Exercises	p. 511
Self-assessment exercises	p. 511
Essay and discussion question	p. 511
Examination question	p. 511
References	p. 511
Further reading	p. 513
Web links	p. 513
Glossary	p. 514
Index	p. 534
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