Welcome

TO THE ERA

OF

INTERNET MARKETING
 The Supply Chains: Channels
and Flows

Suppliers
Mfr. Distributors
Retailer Consumers

Goods
Information
Funds

The Traditional View

Global Supply Chains are being
transformed

Manufacturer
Supplier Consumer
Retailer
Distributor

The Contemporary View

 Yoox.com
• e-Tailer focused in the fashion industry, started in
2000 by an Italian entrepreneur Federico Marchetti,
Founder and CEO,
• 300 well known and luxury brands The group
operates in 53 countries
• Sales of 2003: 22 millions €
• Sales of 2005: 53 millions € (47% more than 2004)
• Sales of 2007 91 millions € ( 38% more that 2006)
• Reached the breakeven after 2 years (when the
competitors was running out of business)
• Target: Young consumers (51% of customers in the
age group of 25-34 years)
 The e-marketing Channel
• The company’s website is customised in 28 versions:
this differentiation involves different pricing, offer and
communication for each single country.
• Two thirds of customers are women; they look for high
quality products and are used to making online
purchases.
• Their age ranges from 19 to 29 years
• Customer can send the product back without producing
any justification
• Three millions visitors each month, 190,000 orders,
400,000 items; number of items proposed on the website
is between 100,000 and 150,000 depending upon
season. More than 4,000 new daily arrivals.
 The e-marketing Channel
• The company’s website is customised in 28 versions:
this differentiation involves different pricing, offer and
communication for each single country.
• Two thirds of customers are women; they look for high
quality products and are used to making online
purchases.
• Their age ranges from 19 to 29 years
• Customer can send the product back without producing
any justification
• Three millions visitors each month, 190,000 orders,
400,000 items; number of items proposed on the website
is between 100,000 and 150,000 depending upon
season. More than 4,000 new daily arrivals.
MARKETING APPLICATIONS OF IM
AS AN ADVERTISING MEDIUM
A DIRECT RESPONSE MEDIUM
A PLATFORM FOR SALES TRANSACTIONS
A DISTRIBUTION CHANNEL
A RELATIONSHIP BULDING MEDIUM
E-business and e-commerce

The distinction between buy-side and sell-side e-commerce

5 “S” of IM
 Types of web presence
• 1. Transactional e-commerce site:
Examples – Amazon, Dell

• 2. Services-oriented/relationship building
– Accenture, British Gas

• 3. Brand Building site

– Tango, Guinness

• 4. Portal or media site

– Yahoo!, Silicon.com
A generic internet marketing strategy development process
 INTERNET MARKETING
Vs
TRADITIONAL MARKETING
Interactivity and intelligence
Individualization
Integration
 INDUSTRY RESTRUCTRING
Disintermediation: The elimination of organizations
or business process layers responsible for certain
intermediary steps in a value chain, reducing costs
to the consumer

Reintermediation: The shifting of the intermediary

role in a value chain to a new source, adding
additional value to the consumer
INDEPENDENCE OF LOCATION
INTERNET TECHNOLOGY
 The Internet is a global system
of interconnected computer networks
that use the standard Internet Protocol Suite
(TCP/IP) to serve billions of users worldwide.
It is a network of networks that consists of
millions of private and public, academic,
business, and government networks of local to
global scope that are linked by a broad array of
electronic and optical networking technologies.
The Internet carries a vast array of information
resources and services, most notably the inter-
linked hypertext documents of the World Wide
Web (WWW) and the infrastructure to support
electronic mail.
 Technology
• DOMAIN NAMES: NAME OF WEB SERVER

.com represents any company such as

http://www.travelagency.com

.co.uk represents a company based in the UK such as

http://www.thomascook.co.uk/.

.ac.uk a UK based University (e.g. http://www.derby.ac.uk)

.org.uk or .org are not for profit organisations (e.g.

www.greenpeace.org)

.net a network provider such as www.freeserve.net.

How it works – client/server
How it works - HTML
Internet, intranet and extranet