MRKT 410

Internet Marketing

Prepared by Dr. Ahmad Al-Fadly

 Internet Marketing

Chapter (1)

Internet Marketing as Part of the

Marketing Communications Mix
 Objectives
In this chapter;
• We will study the evolution of the Internet.
• The implication of Web 2.0 and Web 3.0
• We will understand the generic marketing objectives that from the
basis for Internet marketing strategies.
• We will learn how did marketers take advantage of the Internet to
perform the three basic marketing activities; customer acquisition,
conversion, and retention, Which in turn led to increasing customer
value.
• And how the Internet provides to business an environment that is
different from natural-based traditional economy.
 Introduction

How has the Internet changed the way you

• Live
• Work
• Communicate
 The Evolution of the Internet
Growth Accelerated after 1991
Internet Timeline
 Semi-Automatic Business Research Environment
(SABRE)

SABRE Holdings From an Internal Network To a Commercial Product

To an Enterprise with a Portfolio of Brands.

In 1957: IBM and American Airlines team up to from SABRE, the

Semi-Automatic Business Research Environment. It is based on the
Semi-Automatic Ground Environment (SAGE), the first major system
to use interactive, real-time computing – which IBM helped develop
for the military.
 The differences between Web 2.0 and Web 3.0

Web 2.0 makes use of read-write web, web applications, blogs, viral
media, rich media, tagging whereas sharing content or focusing on
the communities.

Web 3.0 standard makes use of semantic web, widgets, drag and
drop mashups, economy or user behaviour, user engagement,
advertisement, focuses on individuals and consolidates dynamic
content.
 Introduction

The Figure below shows numerous productivity and revenue elements that can
increase as a result of using a social business software.
Global brands – combination of Online and Offline
The Internet Marketing Paradigm
 The Internet Marketing Paradigm
The Internet marketing paradigm is seen as a complex environment
in which marketers attempt to achieve FOUR distinct generic goals:

1.Customer acquisition (attract new customers).

2.Customer conversion (the process of persuading visitors to
become actual customers).
3.Customer retention (involves turning customers into a loyal).
4.Customer value growth (improve the value of the overall
customer base).
 The Internet Marketing Paradigm
The inputs and actions that marketers to achieve these goals as
follow:
 The Internet Infrastructure Stack
The technical infrastructure of the Internet:
 Computing ‘in the Cloud’

•Computing and Data Storage on ‘Public Clouds’ or ‘Private Clouds’

•Suppliers like Amazon, Salesforce.com or Private, Custom Sites for
Corporations, Government Agencies
•Fee for Services Instead of Investment
•Do not Have to Maintain Hardware and Software
Client Services ‘in the Cloud’
 Consumers Benefit from Cloud

1.Web-based Email
2.Store Photos or Videos Online
3.Use Apps Like Google Docs, Photoshop Express
4.Store or Backup Files Online
 Profile of the Internet and Its Users

The size and scope of the Internet

Mobile Driving Growth Worldwide
Who Uses the Internet,
for What?
1. Consumers: Marketers use various
types of data to segment their target
markets and to study their target market
in depth. Demographic data (Table 1.3) are
Necessary but not sufficient. Behavioral
data (Fig 1.9) are key to understanding the
Internet consumer from information search
all the way through to purchase.
Who Uses the Internet,
for What?

2. Businesses around the world use the

Internet to attract new customers,
to sell their products and services,
to retain existing customers, and
to deliver customer support and service.
 Strategic Drives of the Internet Economy
There are ten strategic drivers of the Internet economy as follow:
1. Information Creates Greatest Value Added,-All Products, Services
2. Size and Distance Often Do Not Matter (availability of resources critical)
3. Speed and Flexibility Essential
4. People are the Key Assets
5. Growth in the Network Causes Exponential Increase in Value
6. Marketers Can Deal with Customers One-to-One
7. Demand Can Be Predicted with Greater Accuracy
8. Cost Patterns Change as Transaction, Coordination (B2B) and Switching (B2C)
Costs Decrease
9. Consumers Have Power in Information-Rich Channels
10. The Information Economy is Characterized by Choice, Abundance
 Assignment 1

What Can Other Organizations Learn

From the Way Google Started its Business
And the Way it Continues to Operate?