Internet Marketing News Analysis
Source: http://www.internetretailer.com/dailyNews.asp?id=25531
What I learned:
This article is about how the NHL is capturing information about their fans, and using it to market things to them. The article states that fans are anywhere from 50%-300% more likely to respond to something that has their team name on it, as it seems to be some sort of emotional attachment for them. The NHL has also been negotiating with companies that sponsor them, to share information about its consumers. In the past year, the customer data-base has grown 40% and although they do not post sales, the NHL says they too are up by about 35%. One more marketing technique they are using is to list web pages that fans can use, right in their direct mail catalog. This way fans can order what ever they want, right off the internet. This just goes to show how companies are finding more and more ways to make money and fill the need for what we as consumers have created with the internet and its shopping compatibilities. The more we shop, the more they are going to try to market directly to us.
Reflections:
Chapter five talks about understanding the internet consumer. The internet has gone from a service used by scientists and "geeks" to a product fueled powerhouse. The rapid speed of change of this technology makes understanding the internet consumer very difficult. It also has had a huge effect on younger internet users, most children have more knowledge of how the net works then their parents do. Because of the rate of growth, the dynamics of the web have not only changed greatly, but any statistic is usually out-dated before it can be printed. Because of this, companies are working hard to understand and stay ahead of consumer behavior.
It is estimated that in the U.S. alone, e-commerce retail will grow from $172 billion in 2005 to $329 billion in 2010. This adds up to be a 14% compounded annual growth rate. These numbers are growing just as rapidly in other countries as well. Going hand in hand with shopping, people are using the internet to also search for what they are looking to buy. The book says that search plays a role in roughly half of on-line purchases and that over half of the searches were done at least two weeks in advance. I find this statistic to apply to my own shopping habits. What better way to shop around and make sure your getting the best deals, then being able to compare products and companies all over the world, then from the comfort of your own home. The book also says that travel sites are most influenced by web-sites. Is there really any other way to plan a trip or find a flight any more?
Because of all the consumption on the internet, marketing research has moved in that direction with a vengeance. There are significant advantages to on-line marketing research. Its quicker, cheaper and has way better access to larger groups of people. It is also able to collect more in depth information then regular mail surveys, and more convent (thus more likely to be completed by) the respondent. Whether first-hand, secondary or even third party data, market researchers have defiantly found a great way to monitor customer interactions as well as buying patterns and habits. This essentially leads to stronger target marketing and even product development research. It is here to stay.
Thursday, February 28, 2008
Wednesday, February 20, 2008
Chapter4 Internet Marketing News Analysis and Reflections
Internet Marketing News Analysis
Source: http://money.cnn.com/2007/10/02/technology/videousedcars.biz2/index.htm?postversion=2007100307
What I Learned:
This article is about how people have gone from buying used cars on a car lot to posting videos of them for anyone who is looking. Hotswap was invented by Luke Thomas who was interested in buying a car on-line, but was disappointed when all the vehicles seemed to look better in their photos then in real life. Launched in March, it is estimated to have over 11,000 listing by the end of the year and about $2 million in funding from venture firm Kinsey Hills group. The article states that video is what people want, and goes on to say that Americans spent $358 billion on used cars just last year, with 1/4 of cars being bought on the internet. The Hotswap listing is free and allows users to see every scratch, dent and imperfection on the autos with the use of the video camera.
Analysis:
What will they think of next? The internet is evolving at a speed fast enough to keep up with almost every demand and need that a consumer could have. Companies are willing to fund and promote these new ideas because they have proven effective in reaching huge target markets and filling a need. I bet if I told my parents ten years ago that I would be buying a car on-line, they would have checked my head. Now, it seems as though a great way to save time and energy, all the while finding what ever it is that you truly want.
Reflections:
Chapter four teaches us that the internet is a direct response medium, that allows interactivity more then any other marketing medium. Marketing has four characteristics (known as the four I's) that are described as being powerfully affected by the internet and its capabilities. These qualities are, Interactive, Information-driven, Immediate and Involving and have changed the way we do business.
Being Interactive allows marketers to initiate two way conversations or communications between the consumers and themselves. Being Information-driven allows marketers to inform consumers on mass levels, contacting and notifying them of new products, services or even changes to existing things. Being Immediate allows marketers to reply to consumers quickly and efficiently and is much more cost effective then trying to manage call centers or mail rooms. Getting consumers interested has become somewhat of a chore in todays heavily marketed environment, the internet offers a great way to get consumers involved with promotions and incentives. Combining brand marketing with direct response motivates consumers to act on what they have seen.
Front end and back end marketing are an important part of the marketing process. Front end activities are things that happen before or during a sale. Coupons for example are front end marketing. Back end marketing is everything that occurs after the sale, including fulfillment and customer service. It is unfortunate but Internet marketers have seem to forgotten the back end part of marketing. This is a result of not having to deal with consumers directly or in large numbers. This is a big deal because over time it will affect customer retention, and we are all aware of the 80-20 rule.
Direct response programs are a great way for marketers to track consumer trends and habits. The internet allows an advantage when it comes to direct response over traditional mass media in many ways. For one, its way more cost effective. Another plus is the fact that if it is not reaching markets in the way it was intended, it can simply be deleted or fine tuned. One way to conduct a marketing test is to do a A/B split where one group of consumers is divided into two groups. Different marketing is sent to the two groups and essentially seeing who reacts to what. This is a great way to acquire psychographics to better target your market, hoping to stick out from all the clutter.
Source: http://money.cnn.com/2007/10/02/technology/videousedcars.biz2/index.htm?postversion=2007100307
What I Learned:
This article is about how people have gone from buying used cars on a car lot to posting videos of them for anyone who is looking. Hotswap was invented by Luke Thomas who was interested in buying a car on-line, but was disappointed when all the vehicles seemed to look better in their photos then in real life. Launched in March, it is estimated to have over 11,000 listing by the end of the year and about $2 million in funding from venture firm Kinsey Hills group. The article states that video is what people want, and goes on to say that Americans spent $358 billion on used cars just last year, with 1/4 of cars being bought on the internet. The Hotswap listing is free and allows users to see every scratch, dent and imperfection on the autos with the use of the video camera.
Analysis:
What will they think of next? The internet is evolving at a speed fast enough to keep up with almost every demand and need that a consumer could have. Companies are willing to fund and promote these new ideas because they have proven effective in reaching huge target markets and filling a need. I bet if I told my parents ten years ago that I would be buying a car on-line, they would have checked my head. Now, it seems as though a great way to save time and energy, all the while finding what ever it is that you truly want.
Reflections:
Chapter four teaches us that the internet is a direct response medium, that allows interactivity more then any other marketing medium. Marketing has four characteristics (known as the four I's) that are described as being powerfully affected by the internet and its capabilities. These qualities are, Interactive, Information-driven, Immediate and Involving and have changed the way we do business.
Being Interactive allows marketers to initiate two way conversations or communications between the consumers and themselves. Being Information-driven allows marketers to inform consumers on mass levels, contacting and notifying them of new products, services or even changes to existing things. Being Immediate allows marketers to reply to consumers quickly and efficiently and is much more cost effective then trying to manage call centers or mail rooms. Getting consumers interested has become somewhat of a chore in todays heavily marketed environment, the internet offers a great way to get consumers involved with promotions and incentives. Combining brand marketing with direct response motivates consumers to act on what they have seen.
Front end and back end marketing are an important part of the marketing process. Front end activities are things that happen before or during a sale. Coupons for example are front end marketing. Back end marketing is everything that occurs after the sale, including fulfillment and customer service. It is unfortunate but Internet marketers have seem to forgotten the back end part of marketing. This is a result of not having to deal with consumers directly or in large numbers. This is a big deal because over time it will affect customer retention, and we are all aware of the 80-20 rule.
Direct response programs are a great way for marketers to track consumer trends and habits. The internet allows an advantage when it comes to direct response over traditional mass media in many ways. For one, its way more cost effective. Another plus is the fact that if it is not reaching markets in the way it was intended, it can simply be deleted or fine tuned. One way to conduct a marketing test is to do a A/B split where one group of consumers is divided into two groups. Different marketing is sent to the two groups and essentially seeing who reacts to what. This is a great way to acquire psychographics to better target your market, hoping to stick out from all the clutter.
Wednesday, February 13, 2008
Chapter 3 Internet Marketing News Analysis and Reflections
Internet Marketing News Analysis
Source: http://www.emarketer.com/Article.aspx?id=1005929
What I learned:
This article is about the percent of the worlds population who are currently Internet users, a whopping 17.5% as of 2007. It is predicted that by the year 2012 that number will rise to 24.5% of the human race that will access the internet at least once a month. It is said that 2008 will be the year that China will over take the U.S. as the most populous Internet nation in the world, with over 500 million internet users. As of now, the Netherlands and Scandinavian countries lead the word in internet penetration with 80% of their population being internet users. Over the next five years the world will look to countries such as, China, Russia, India, Brazil and Mexico to be the primary drivers for Internet user growth.
Analysis:
This world wide Internet growth over the next four years means a great many things to internet marketing. For one, it means that companies are going to work harder and spend more money to reach internet users while marketing their products. Another conclusion from this information would be that the technology being used today will probably start to change at an even faster rate then it currently is, not only to keep up with everyone, but also to keep existing internet users hooked. One more thing that I gather from this article is that with so many other countries driving the internet growth, we will come to see many new services and products introduced to us via Internet!
Reflections:
Reading chapter three taught me the importance of a Business Model. The book says the Business Model is essentially " a unique configuration of elements that make up the business' goals, strategies, processes, technology's and structure. This is important for many reasons. The most important of those being to determine cost structure and profit potential. What good is it to market something if there is no chance of making a profit. The second most important use for this is to determine a market segment or figure out who is going to use your product for what. This conclusion leads to where and to whom you will market your product.
With so many business' turning to the internet to sell products, the business model is as important as ever. First off, companies must look around to see if they can sell products at or below competition on-line. Secondly, they need to make sure they define and market to the correct target market to ensure that they are standing out from all the rest of the clutter and competition. Things like formulating a competitive strategy are becoming more and more essential not only to the retail markets but increasingly so to the on-line market.
Another thing that caught my attention while reading this chapter was the segment on marketplaces. E-bay does $1,000 dollars in transactions EVERY second?!?! This is HUGE! It is just another testament to the fact that we are living in a computer based world. With local sites in twenty two countries and a partnership in Latin America, we had better be paying attention to this huge trend of shopping from home. The site offers not only a chance for people to shop, but also a gigantic sellers market. They have everything a seller may need to be as profitable as possible, from tips to how to be a great seller to incentives to sell as much stuff as you possibly can.
This just goes to show the effect of cause and demand. When E-bay began, people were selling their actual automobiles under the toy car heading. Seeing the need for a auto sales market, E-bay launched a section dedicated to just that. Today the auto sales category is worth 30% of the sales on the entire site. Once again it just goes to show that the internet is here, people like it for many reasons, and if companies want to stand out or get ahead, the better get a good concept of and hold on internet marketing.
Source: http://www.emarketer.com/Article.aspx?id=1005929
What I learned:
This article is about the percent of the worlds population who are currently Internet users, a whopping 17.5% as of 2007. It is predicted that by the year 2012 that number will rise to 24.5% of the human race that will access the internet at least once a month. It is said that 2008 will be the year that China will over take the U.S. as the most populous Internet nation in the world, with over 500 million internet users. As of now, the Netherlands and Scandinavian countries lead the word in internet penetration with 80% of their population being internet users. Over the next five years the world will look to countries such as, China, Russia, India, Brazil and Mexico to be the primary drivers for Internet user growth.
Analysis:
This world wide Internet growth over the next four years means a great many things to internet marketing. For one, it means that companies are going to work harder and spend more money to reach internet users while marketing their products. Another conclusion from this information would be that the technology being used today will probably start to change at an even faster rate then it currently is, not only to keep up with everyone, but also to keep existing internet users hooked. One more thing that I gather from this article is that with so many other countries driving the internet growth, we will come to see many new services and products introduced to us via Internet!
Reflections:
Reading chapter three taught me the importance of a Business Model. The book says the Business Model is essentially " a unique configuration of elements that make up the business' goals, strategies, processes, technology's and structure. This is important for many reasons. The most important of those being to determine cost structure and profit potential. What good is it to market something if there is no chance of making a profit. The second most important use for this is to determine a market segment or figure out who is going to use your product for what. This conclusion leads to where and to whom you will market your product.
With so many business' turning to the internet to sell products, the business model is as important as ever. First off, companies must look around to see if they can sell products at or below competition on-line. Secondly, they need to make sure they define and market to the correct target market to ensure that they are standing out from all the rest of the clutter and competition. Things like formulating a competitive strategy are becoming more and more essential not only to the retail markets but increasingly so to the on-line market.
Another thing that caught my attention while reading this chapter was the segment on marketplaces. E-bay does $1,000 dollars in transactions EVERY second?!?! This is HUGE! It is just another testament to the fact that we are living in a computer based world. With local sites in twenty two countries and a partnership in Latin America, we had better be paying attention to this huge trend of shopping from home. The site offers not only a chance for people to shop, but also a gigantic sellers market. They have everything a seller may need to be as profitable as possible, from tips to how to be a great seller to incentives to sell as much stuff as you possibly can.
This just goes to show the effect of cause and demand. When E-bay began, people were selling their actual automobiles under the toy car heading. Seeing the need for a auto sales market, E-bay launched a section dedicated to just that. Today the auto sales category is worth 30% of the sales on the entire site. Once again it just goes to show that the internet is here, people like it for many reasons, and if companies want to stand out or get ahead, the better get a good concept of and hold on internet marketing.
Friday, February 8, 2008
Chapter 2 Internet Marketing News Analysis and Reflections
Chapter 2 Internet Marketing News Analysis and Reflections
Internet News Analysis
Source: http://blog.clickz.com/080208-102255.html
What I learned:
The auto maker, Mazda, has just introduced a new "video game" to You Tube called The Drive. The Drive was inspired by actual Mazda Drivers who posted footage of them driving on the popular site, You Tube. It allows uses to choose and customize between two of their new cars, for what they call the "immersive on-live driving experience, and allows divers to pick everything from the type of road the want to travel on, the the type of music. It is intended to target drivers with a sport car driver mentality.
Analysis:
This relates Internet marking in the fact that even auto makers are having to find their "nitch" on the internet. In the readings from this week, I learned how very important it is for companies to be able to stand out from their competition, and I believe that with this, Mazda is doing just that.
Reflections:
One thing that I learned from the lesson this week was that I defiantly take the internet and its contents for granted. The amount of thought and time that goes into say, Dells Internet Chain, is tremendous. In our day and age of immediate results and constant change, the internet has defiantly revolutionized the way we work and live on every level. Much of this new technology is quietly adapted into our everyday lives, and although we may notice a slight difference in the way we live, I dont think we realize the impact it has made. Take for example the RFID system. Not only is it being used in stores for inventory and marketing proposes, but looked at the way it has changed the everyday commute with a little thing they call the I-Pass. How excellent is it to be able to pay a toll with out having to stop?! I can only imagine the near feature when we will be able to grocery shop like that.
Another thing that caught my attention is the fact that not only has internet marketing taken over on a corporate level, but they are now writing self-help books on how to actually do it at home your self. Something so complicated that many of us dont even attempt, yet so easy to figure out that that it can be taught in a 204 page book. Just as Im sure the creators of the internet had no idea the impact of it would be, we are yet to see the peak of the marketing techniques in store for us.
Internet News Analysis
Source: http://blog.clickz.com/080208-102255.html
What I learned:
The auto maker, Mazda, has just introduced a new "video game" to You Tube called The Drive. The Drive was inspired by actual Mazda Drivers who posted footage of them driving on the popular site, You Tube. It allows uses to choose and customize between two of their new cars, for what they call the "immersive on-live driving experience, and allows divers to pick everything from the type of road the want to travel on, the the type of music. It is intended to target drivers with a sport car driver mentality.
Analysis:
This relates Internet marking in the fact that even auto makers are having to find their "nitch" on the internet. In the readings from this week, I learned how very important it is for companies to be able to stand out from their competition, and I believe that with this, Mazda is doing just that.
Reflections:
One thing that I learned from the lesson this week was that I defiantly take the internet and its contents for granted. The amount of thought and time that goes into say, Dells Internet Chain, is tremendous. In our day and age of immediate results and constant change, the internet has defiantly revolutionized the way we work and live on every level. Much of this new technology is quietly adapted into our everyday lives, and although we may notice a slight difference in the way we live, I dont think we realize the impact it has made. Take for example the RFID system. Not only is it being used in stores for inventory and marketing proposes, but looked at the way it has changed the everyday commute with a little thing they call the I-Pass. How excellent is it to be able to pay a toll with out having to stop?! I can only imagine the near feature when we will be able to grocery shop like that.
Another thing that caught my attention is the fact that not only has internet marketing taken over on a corporate level, but they are now writing self-help books on how to actually do it at home your self. Something so complicated that many of us dont even attempt, yet so easy to figure out that that it can be taught in a 204 page book. Just as Im sure the creators of the internet had no idea the impact of it would be, we are yet to see the peak of the marketing techniques in store for us.
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