Business / Marketing Minor Marketing Fundamentals M21439 Session 10: Changes & Innovations

Business / Marketing Minor

Marketing FundamentalsM21439

Session 10:

Changes & Innovations

Key Concepts

• The role of the internet

• E-marketing

• E-mail

• Viral marketing

• iTV marketing

• Ethical issues

• Social responsibility

The Internet (Porter)

• Does not change the fundamentals of doing ‘good business’ or ‘good marketing’.

• Important to keep core strategic objectives in mind and use the Internet to achieve these objectives.

• Must not view Internet applications as a diversification, separate from the core objectives - if you do you will fail.

Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall

New Marketing Communications Media

• E-mail marketing.

• Viral marketing.

• Wireless marketing (m-marketing or mobile marketing).

• Interactive television (iTV)


Nature of Internet Marketing

• PR - reinforcing the company image and dissemination of information.

• Sales promotion - offering competitions and ‘freebies’.

• Brochureware.

• Direct selling.

• Customer relationship marketing.

• Market research.

• Managing supplier relationships.


The 5Ss - Benefits of E-marketing

(Smith & Chaffey 2001)

• Selling goods and services online.

• Additional customer service.

• Saving overhead costs.

• Means of speaking and entering into one to one dialogue with customers.

• Exciting and sizzling means of visual impact.


Benefits of E-marketing

• Valuable means of small businesses communicating with global audiences.

• Useful way for non-profit organisations to explain their work and tout for donations.


Good Website Design

According to Gaudin 2002:

• Must be continually updated.

• Be easy to navigate.

• Have in depth information.

• Offer quick loading and response times.

Other researchers have found honesty, respect, trust and reliability to be of importance.


Consumer Penetration & Spending

Source: Euromonitor (2002), extracted from Table 12.7, p. 286. In Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall

Spending OnlineConsumers:

• BMRB report that in 2002 565 of UK Internet users are shopping online.

• UK consumers appear to be spending more online than other European consumers.

B2B:

• Estimated $4.3 trillion spend by 2005 (IDC).

• Convenience, cost saving, customer and competitor pressure, opportunities to generate new revenue are all reasons for growth.

• Online procurement - a large part of B2B online commerce.


Advantages of Using the Web as a Distribution Channel

• Every hit could gain a potential customer.

• Print and mailing costs are lower.

• Reduction in order processing and handling costs.

• Enhanced after sales service.

• Distribution of digital products via the web.

• Get closer to the customer through disintermediation.


The Web as an Advertising Medium

Source: Adapted from Integrated Marketing Communications, Financial Times Prentice-Hall, (Pickton, D. and Broderick, A. 2001), Copyright © 2001 David Pickton and Amanda Broderick, reprinted by permission of Pearson Education Limited.

Extracted from Exhibit 11.3, p. 210.

The Web as an Advertising Medium

Source: Adapted from Integrated Marketing Communications, Financial Times Prentice-Hall, (Pickton, D. and Broderick, A. 2001), Copyright © 2001 David Pickton and Amanda Broderick, reprinted by permission of Pearson Education Limited.

Extracted from Exhibit 11.3, p. 210.

Engendering Customer Loyalty

• Levels of interaction between customer and an organisation and its brand(s) can help reinforce loyalty.

• Brand values and image can be enhanced.

• Providing a trusted quality product online.


The Future for Internet Marketing

• Bandwidth increases enabling more powerful applications and real time communications.

• More integrated technologies (TV, PCs, mobile based technologies) making the internet more interesting and more accessible.

• Infomediaries who will replace traditional intermediaries.

• Opportunities to attract transient trade.


Marketing and New Media

Digital technology:- Enabling marketing to be driven by databases that can

track interactions between a business and itscustomers.

- Creating new media opportunities to personalise and

target messages better.- Customers have to opt in to new media and give

permission.


E- Mail

• A powerful means of communication and promotional activity.

• Can help create initial contact and develop online relationship once transactions have taken place.

• Encourage readers to look at a website.

• Gain permission to send more information.

• Surveys suggest that e-mail campaigns are still in infancy.


E-mail Marketing Evolution

Source: Rizzi (2001). Copyright © 2002 e-Dialog Inc. In Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall

Viral Marketing

• Word of mouth e-mail.

• Achieved by using the forwarding facility (e-mail a page to a friend).

• Effective form of communication in terms of believability and trust.

• Can build up e-mailing list.

• Some customers may view this as a form of unsolicited mail.


Wireless Marketing

• Sometimes called m-marketing or mobile marketing.

• Using text messaging as a means of targeting customers.

• Marketers must consider customer lifestyles and be careful about setting the right tone of the communication.

• Any message must be short usually alerting customer to a special offer or promotion.

• Can fail to inspire or encourage interactivity.

• Audience tend to be younger people.Source: Brassington,F. & Pettitt,S. (2003) Principles of Marketing 3rd ed. UK:Prentice Hall

iTV Marketing

• Interactive television marketing is still in its infancy.

• Allows the user to tailor information, content and actions to their needs.

• Provides two way communication between consumer and service provider.

• Take up of digital television is a critical factor here.

• Marketers can target niche audiences and can personalise dialogue.


Marketing Ethics

• The Nature of Marketing Ethics– Marketing Ethics Defined– Marketing Ethics Are Controversial

• Understanding the Ethical Decision-Making Process– Individual Factors– Organizational Relationships– Opportunity

Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin

Factors That Influence the Ethical Decision-making Process


Ethical Issues

• Ethical Issues in Marketing– Product Issues– Promotion Issues– Pricing Issues– Distribution Issues

• Improving Ethical Decisions In Marketing– Codes of Ethics– Controlling Unethical Behaviour


The Pyramid of Corporate Social Responsibility

Source: Reprinted from Business Horizons, July/August 1991. Copyright © 1991 by the Foundation for the School of Business at Indiana University. Used with permission.

Social Responsibility

• The Nature of Social Responsibility (continued)– Impact of Social Responsibility on

Marketing– Social Responsibility Issues

• Consumer Movement• Community Relations• Green Marketing• Diversity


Social Responsibility

• The Nature of Social Responsibility (continued)– Strategies for Dealing with Social

Responsibility Issues• Reaction Strategy• Defence Strategy• Accommodation Strategy• Proactive Strategy

• Social Responsibility and Marketing Ethics


Documents

Business / Marketing Minor Marketing Fundamentals M21439 Session 10: Changes & Innovations