Internet Marketing - MEC

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Internet Marketing

Strategy, Implementation and Practice

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Third Edition

Internet Marketing

Strategy, Implementation and Practice

Dave Chaffey Fiona Ellis-Chadwick Richard Mayer Kevin Johnston

Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: pearsoned.co.uk First published 2000 Second edition published 2003 Third edition published 2006 ? Pearson Education Limited 2000, 2003, 2006 The right of Fiona Ellis-Chadwick to be identified as author of this work has been asserted by her in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. ISBN-13: 978-0-273-69405-2 ISBN-10: 0-273-69405-7 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalogue record for this book is available from the Library of Congress 10 9 8 7 6 5 4 3 2 1 10 09 08 07 06 Typeset in 9/12.5pt Stone Serif by 30 Printed and bound by Mateu Cromo Artes Graficas, Spain The publisher's policy is to use paper manufactured from sustainable forests.

iv

Brief contents

Preface

xiii

Guided tour

xxii

About the authors

xxv

Acknowledgements

xxvi

Part 1 Internet marketing fundamentals

1 An introduction to Internet marketing

3

2 The Internet micro-environment

41

3 The Internet macro-environment

97

Part 2 Internet strategy development

4 Internet marketing strategy

151

5 The Internet and the marketing mix

214

6 Relationship marketing using the Internet

256

Part 3 Internet marketing: implementation and practice

7 Delivering the online customer experience

301

8 Interactive marketing communications

348

9 Maintaining and monitoring the online presence

415

10 Business-to-consumer Internet marketing

451

11 Business-to-business Internet marketing

484

Glossary

514

Index

534

v

1

Contents

Preface

xiii

Guided tour

xxii

About the authors

xxv

Acknowledgements

xxvi

Part 1 INTERNET MARKETING FUNDAMENTALS

1 An introduction to Internet marketing 3

Learning objectives / Questions for marketers /

Links to other chapters

3

Introduction ? how significant is the Internet for

marketing?

4

Marketing applications of Internet marketing

5

Our changing media consumption

6

Our changing buyer behaviour

7

What is Internet marketing?

8

E-marketing defined

9

Digital marketing defined

10

E-commerce and e-business defined

11

E-business defined

11

Business or consumer model?

12

What benefits does the Internet provide for the

marketer?

14

A strategic approach to Internet marketing

18

How do Internet marketing communications differ

from traditional marketing communications?

20

A short introduction to Internet technology

26

How does the Internet work?

27

From the Internet to intranets and extranets

32

Case Study 1 eBay thrives in the global

marketplace

33

Summary

37

Exercises

38

Self-assessment exercises

38

Essay and discussion questions

38

Examination questions

38

References

39

Further reading

39

Web links

40

2 The Internet micro-environment

41

Learning objectives / Questions for marketers /

Links to other chapters

41

Introduction

42

Different environment components

43

Marketplace

45

Competitive forces

46

Value creation and value chain analysis

49

New channel structures

53

Location of trading in marketplace

57

Commercial arrangement for transactions

58

Business models in e-commerce

59

Revenue models

61

Customers

61

Assessing demand for e-commerce services

62

Online demand for business services

72

Online buyer behaviour

74

Customer persona and scenario analysis

75

Multi-channel customer experiences

77

Models of online buyer behaviour

78

Competitors

85

Suppliers

86

Intermediaries

86

Case Study 2 Zopa launches a new lending model 90

Summary

92

Exercises

93

Self-assessment exercises

93

Essay and discussion questions

93

Examination questions

94

References

94

Further reading

96

Web links

96

3 The Internet macro-environment

97

Learning objectives / Questions for marketers /

Links to other chapters

97

Introduction

98

Social factors

99

Social exclusion

100

Legal and ethical issues of Internet usage

101

Privacy legislation

101

Other e-commerce legislation

113

Technological factors

116

Alternative digital technologies

120

Digital radio

129

Security

131

vii

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