INTERNET MARKETING - DEFINITIONS

- Marketing is a process by which companies create value for customers and build strong
relationships to capture value from customers in return.
- Market offerings are some combination of products, services, information or experiences offered to
a market to satisfy a need or want.
- Marketing myopia is focusing only in existing want and losing sight of underlying consumer needs.
- Exchange is the act of obtaining a desired object from someone by offering something in return.
- Markets are the set of actual and potential buyers of a product.
- Marketing management is the art and science of choosing target markets and building profitable
relationships with them.
- Marketing segmentation refers to dividing the markets into segments of customers.
- Target marketing refers to which segments to go after.
- Value proposition set of benefits or values a company promises to deliver to customers to satisfy
their needs.
- Production concept is the idea that consumers will favor products that are available or highly
affordable.
- Product concept is the idea that consumers will favor products that offer the most quality,
performance and features.
- Selling concept is the idea that consumers will not buy enough of the firms products unless it
undertakes a large scale selling and promotion effort.
- Marketing concept is the idea that achieving organizational goals depends on knowing the needs
and wants of the target markets and delivering the desired satisfactions better than competitors do.
- Societal marketing concept is the idea that company should make good marketing decisions by
considering consumers wants, the companys requirements, consumers long-term interests and
societys long-run interests.
- The marketing mix set of tools (four Ps) the firm uses to implement its marketing strategy. It
includes product, price, promotion and place.
- Integrated marketing program comprehensive plan that communicates and delivers the intended
value to chosen customers.
- Customer Relationship Management (CRM) the overall process of building and maintaining
profitable customer relationships by delivering superios customer value and satisfaction.
- Customer perceived value the difference between total customer value and total customer cost.
- Customer satisfaction the extent to which a products perceived performance matches a buyers
expectations.
- Customer managed relationships marketing relationships in which customers, empowered by
todays new digital technologies, interact with companies and with each to shape their relationships
with brands.
- Partner relationship management involves working closely with partners in other company
departments and outside the company to jointly bring greater value to customers.
- Supply chain is a channel that stretches from raw materials to components to final products to final
buyers.
- Customer lifetime value is the value of the entire stream of purchases that the customer would
make over a lifetime of patronage.
- Share of customer is the portion of the customers purchasing that a company gets in its product
categories.
- Customer equity is the total combined customer lifetime values of all of the companys customers.
- Strategic planning is the process of developing and maintaining a strategic fit between the
organizations goals and capabilities and its changing marketing opportunities.
- Market oriented mission statement defines the business in terms of satisfying basic customer
needs.

- The business portfolio is the collection of businesses and products that make up the company.
- Portfolio analysis is a major activity in strategic planning whereby management evaluates the
products and businesses that make up the company.
- Product/market expansion grid is a tool for identifying company growth opportunities through
market penetration, market development, product development or diversification.
- Market penetration is a growth strategy increasing sales to current market segments without
changing the product.
- Market development is a growth strategy that identifies and develops new market segements for
current products.
- Product development is a growth strategy that offers new or modified products to existing market
segments.
- Diversification is a growth strategy through starting up or acquiring businesses outside the
companys current products and markets.
- Downsizing is the reduction of the business portfolio by eliminating products or business units that
are not profitable or that no longer fit the companys overall strategy.
- Value chain is a series of departments that carry out value-creating activities to design, produce,
market, deliver and support a firms products.
- Value delivery network is made up of the company, suppliers, distributors and ultimately
customers who partner with each other to improve performance of the entire system.
- Market segmentation is the division of a market into distinct groups of buyers who have different
needs, characteristics or behavior and who might require separate products or marketing mixes.
- Market segment is a group of consumers who respond in a similar way to a given set of marketing
efforts.
- Market targeting is the process of evaluating each market segments attractiveness and selecting
one or more segments to enter.
- Market positioning is the arranging for a product to occupy a clear, distinctive and desirable place
relative to competing products in the minds of target consumer.
- Marketing mix is the set of controllable tactical marketing tools: product, price, place and
promotion that the firm blends to produce the response it wants in the target market.
- Marketing implementation is the process that turns marketing plans into marketing actions to
accomplish strategic marketing objectives.
- Controlling is the measurement and evaluation of results and the taking of corrective action as
needed to ensure the objectives are achieved.
- Return on marketing investment is the net return from a marketing investment divided by the
costs of the marketing investment.

INTERNET MARKETING NABROJUVANKI

The marketing process:
- Understand the marketplace and customer needs
- Design a customer-driven marketing strategy
- Construct an integrated marketing program that delivers superior value
- Build profitable relationships and create customer delight
- Capture value from customers to create profits and customer equity
Customer needs:
- Needs
- Wants

- Demands
Customer value and satisfaction expectations:
Marketers:
- Set the right level of expectations
- Not too high or low
Customers:
- Value
- Satisfaction
Marketing management:
- What customers will we serve ?
- How can we best serve these customers ?
Selecting customers to serve:
- Market segmentation
- Target marketing
Marketing management orientations:
- Production concept
- Product concept
- Selling concept
- Marketing concept
- Societal concept
Designing a customer-driven marketing strategy:
- Company (profits)
- Consumers (want satisfaction)
- Society (human welfare)
Relationship building blocks:
- Customer perceived value
- Customer satisfaction
Customer relationship levels and tools:
- Basic relationships
- Full partnerships
Partners inside the company is every function are interacting with
customers:
- Electronically
- Cross-functional teams
Capturing value from customers:

- Creating customer loyalty and retention

- Growing share of customer
Growing share of customer
- Share of customer
- Customer equity
Uncertain economic environment:
- New consumer frugality
- Marketers focus on value for the customer
Digital age:
- People are connected continuously to people and information worldwide
- Marketers have great new tools to communicate with customers
- Internet + mobile communication devices creates environment for online
marketing
- Rapid globalization
- Sustainable marketing
- Not for profit marketing
Steps in strategic planning:
-Defining the company mission
- Setting company objectives and goals
- Designing the business portfolio
- Planning marketing and other functional strategies

Setting company objectives and goals:

Business objectives:
- Build profitable customer relationships
- Invest in research
- Improve profits
Marketing objectives:
- Increase market share
- Create local partnerships
- Increase promotion
Designing the business portfolio:
- The business portfolio
- Portfolio analysis

Strategic business units can be:

- Company division
- Product line within a division
- Single product or brand
Analyzing the current business portfolio:
- Identify key businesses that make up the company
- Decide how much support each SBU deserves
Companywide strategic planning:
- Star
- Cash cow
- Dog
- Question mark
Problems with matrix approaches:
- Difficulty in defining SBUs and measuring market share and growth
- Time consuming
- Expensive
- Focus on current businesses, not future planning
Developing strategies for growth and downsizing:
- Market penetration
- Market development
- Product development
- Diversification

Partnering to build customer relationships:

- Value chain
- Value delivery network
Customer- driven marketing strategy:
- Market segmentation
- Market segment
Customer- centered marketing strategy:
- Market targeting
- Market positioning
Developing an integrated marketing mix:
Product:
- Variety
- Quality

- Design
- Features
- Brand name
- Services
Price:
- List price
- Discounts
- Allowances
- Payment period
- Credit terms
Promotion:
- Advertising
- Personal selling
- Sales promotion
- Public relations
Place:
- Channels
- Coverage
- Assortments
- Locations
- Inventory
- Transporatation
- Logistics

Managing the marketing effort:

- Analysis
- Planning
- Implementation
- Control
Marketing analysis SWOT analysis:
- Strenghts
- Opportunities
- Weaknesses
- Threats
Market planning parts of a marketing plan:
- Executive summary
- Marketing situation
- Objective and issues
- Marketing strategy

- Action programs
- Budgets
Marketing department organization:
- Functional organization
- Geographic organization
- Product management organization
- Market or customer management
Marketing control:
- Operating control
- Strategic control
Marketing is management process responsible for:
- Identifying
- Anticipating
- Satisfying
Why is a digital strategy needed ?
- To set clear goeals for digital channels
- To align with business strategy
- Create a specific online value proposition
- Specify communications tools to drive visitors
- Integrate digital and traditional channels
- Manage customer lifestyle
Applications of digital marketing:
- An advertising medium
- A direct-response medium
- A platform for sales transactions
- A lead-generation method
- A distribution channel
- A customer service mechanism
- A relationship-building medium
Benefit of e-marketing:
- Self grow sales
- Serve add value
- Speak get closer to customers
- Save save costs
- Sizzle extend the brand online
Different forms of web presence:
- Transactional e-commerce site

Services-oriented/relationship building
Brand building site
Portal or media site
Social network or media site

Element of 7S model:
- Strategy
- Structure
- Systems
- Staff
- Style
- Skills
- Superordinate goals
Marketing communications term:
- Medium (media)
- Discipline
- Channel (tools)
- Vehicle
Key marketing communications concepts:
- Search marketing
- Online PR
- Online partnership
- Interactive ads
- Opt-in email
- Viral marketing
Offline communications:
- Advertising
- Personal selling
- Sales promotion
- PR
- Sponsorship
- Direct email
- Exhibitions
- Merchandising
- Packaking
- Word-of-mouth
Benefits of digital media for the marketer:
- Interactivity
- Intelligence
- Individualization

- Integration
- Industry restructuring
- Independence of location
Integration:
- Company
- Intermediary
- Customer
Demand analysis and conversion modeling:
- Cost of access
- Value proposition
- Perception of ease of use
- Perception of security
Conversion models:
- Using marketing communications to maximize conversion of potential customers
to actual customers
- Ratios

Multichannel conversion models:

- Response efficiency
- Conversion to lead efficiency
- Conversion to sale efficiency
Evaluating demand levels:
- Level of internet access
- Consumers influenced by using online channel
- Transact online
Consumer characteristics:
- Demographics
- Webographics
- Personas
Example personas:
- First time buyer
- Part time Mum
- Single Mum
Business consumer characteristics:
- Variation in organization characteristics
- Individual role

Consumer behavior models:

- Information / experience seeking behaviour models
- Hierarchy of response buying process models
- Multi-channel buying models
- Trust-based models
- Community participation models
Information / experience seeking behaviour models:
- Directed information seekers
- Undirected information-seekers
- Directed buyers
- Bargain hunters
- Entertainment seekers
Porters five forces:
- Bargaining power of customers
- Threat of substitutes
- Threat of new entrants
- Extent of rivalry between competitors
- Power of suppliers
Factors of the Internet Macro Environment:
- Social factors
- Legal and ethical issues
- Technological factors
- Economics factors
- Political factors
Minimize all the three divides:
- The access divide
- The usage divide
- Quality of use
Cultural factors:
- Local language
- Culture of the organization
- Impact of Google translate
Significant laws which control digital marketing:
- Data protection and privacy law
- Disability and discrimination law
- Brand and trademark protection
- Intellectual property right

- Contract law
- Online advertising law
Types of information collected online and the related technologies:
- Contact information
- Profile information including personal information
- Access platform usages
- Behavioural information on a single site
- Behavioural information across multiple sites
Ethical issues:
- Privacy
- Accuracy
- Property
- Accessibility

Element of proposition:
- Not fixed location
- Location-based services
- Instant access/conveniences
- Privacy
- Personalisation
- Security