Session 2: Marketing in the Age

of the Internet
 SESSION 2: Marketing
the era of the Internet.

Session Plan

a) Digital Marketing
b) Traditional vs. Digital Marketing
c) Digital Marketing Approach
d) The main components of a digital
marketing plan
SESSION 2: Marketing
the age of the Internet

a) Digital Marketing
SESSION 2: Marketing in the Age
the Internet.
Definition.

Digital Marketing:

Join the Customer, inform, sell him a

product or service and make after sales
service through electronic equipment.
And without direct physical contact with
the person.
IPVR = Inform, Promote, Sell, Gather
SESSION 2: Marketing
the era of the Internet.

b) Traditional Marketing
vs
Digital marketing
SESSION 2: Marketing in the Age
the Internet.
Traditional vs digital.

Traditional Marketing:
– Standardization of values, mass
marketing.

Digital Marketing:
– Case by case, informed interest and
consumer groups, one to one marketing.
 SESSION 2: Marketing in the Age
of the Internet.
Traditional vs digital.

traditional marketing model

Target

Business CONTENT MEDIA Target

Target

Target
SESSION 2: Marketing in the Age of
the Internet.
Traditional vs digital.

E
C E
E
CONTENT

C CONTENT MEDIA CONTENT E

CONTENT

C
Digital Marketing Model
Source: A New Paradigm for Electronic
C Trade
SESSION 2: Marketing in the Age
the Internet. Approach

c) Digital Marketing Approach

SESSION 2: Marketing in the Age
the Internet. Approach.

Digital Marketing Approach

IT expertise and customer information are

the cornerstones to reach each customer
according to their preferences and values.

fluid capitalism where buyers and sellers

have an almost perfect knowledge of
supply and demand for a given product.
SESSION 2: Marketing in the Age
the Internet. Approach.

Marketing Approach digital

Don Tapscott, author of The Digital Economy

and Growing Up Digital"the end of the
distribution (broadcasting) is near ... There
will be more prime time but the my time.
The image of the brand, that advertising
tends to foam, no more. More picture, a
value of relationship with the individual".
Robert Dutrisac, a paradigm shift that concerns advertising, The duty, December
31, 1998
SESSION 2: Marketing in the Age
of the Internet. Approach.

The Bishop Analysis Model

 The traditional marketing environment is linear:

all the steps and activities are virtually one after

the other:
research Product creation Product distribution
advertising placement sales report adjustment to
production.

Source: Strategic Marketing for the Digital Age. NTC Business Book 1998.
SESSION 2: Marketing in the Age
the Internet. Approach.

The Bishop Analysis Model

 The digital marketing space environment:

 all the steps and activities are actually
simultaneously.

Research, product creation, distribution

product, advertising placement, report
Sales, Adjustment
production
SESSION 2: Marketing in the Age
the Internet. Approach.

The Bishop Analysis Model

 The traditional promotional offer: often an

intrusion (ad-newspaper, billboard), while the
promotional offer on the web: usually desired or
at least more accepted.

 The traditional promotional offer: calls for more

emotionWhile the digital promotional offer:
appeals more to reason.
SESSION 2: Marketing in the Age
the Internet. Approach.

The Bishop Analysis Model

 Selling pressure is less effective in the environment

of digital marketing for the vendor-customer
relationship is based more on exchange and
collaboration.

 Other differences:
- Better know consumers (personal preferences,
purchasing habits, etc.)
- consumers can be more involved in the creation of
their products
SESSION 2: Marketing in the Age
the Internet. Approach.

The Bishop analysis model .... some consequences

 The consumer as an individual is the basis of this

model:

 use of the Web provides valuable information

about the current and potential consumer.
Thereafter: the company develops products and
services to meet the needs and establishes a
basis for ongoing dialogue.
SESSION 2: Marketing in the Age
the Internet. Approach.

Peppers analysis model and Rogers

 The traditional competitive model between

companies is based on the exploitation of an
aggregated market comprising undifferentiated
consumers.

A consumer sample is analyzed and products are

created accordingly. There is little room for the
measure.

Source: Enterprise One to One. Don Peppers and Martha Rogers. Currency
Doubleday. 1997
SESSION 2: Marketing in the Age
the Internet. Approach.

Peppers analysis model and Rogers

 The digital revolution and the development of the

computer favors the emergence of a new model:
the consumer-oriented model (costumer-driven
model).

 delivery of products and customized services

and meeting the particular needs of consumers
and in the context a consumer at a time.
SESSION 2: Marketing in the Age
the Internet. Approach.

Peppers analysis model and Rogers

 The consumer oriented model is a marketing

model one to one (one-to-one marketing). It is
made possible because the information
technology allows:

- to keep track of interactions with consumers

(Information Management)
- interact with consumers (Interactive
communication)
- to offer mass customization (Customized
production)
SESSION 2: Marketing in the Age
the Internet. Approach.

Peppers analysis model and Rogers .... some

consequences

 The databases containing information on

consumers are considered the most important
asset of the company. Furthermore, this base
should provide information as to the concept of
perceived value and business value.

 The company must be able to adapt its production

to the expectations and needs of each consumer.
SESSION 2: Marketing in the Age
the Internet. Approach.

Peppers analysis model and Rogers .... some

consequences

 marketing communication activities should be

integrated and interactions with consumers are to
be combined in a spirit of coherence and
continuity (constant dialogue).

The company must change its distribution channel

and sales so that it takes into account the new
strategy of satisfying consumer needs.
SESSION 2: Marketing in the Age
the Internet. Approach.

Peppers analysis model and Rogers ... .. some

consequences

 The company's leaders must impose an internal

reorganization to reflect these new features and
measure performance.
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

d) The main components of a digital

marketing plan
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

– Going into business on the Web without a

plan of attack is very risky. It is
recommended to build an integrated
marketing communications plan
(traditional component and / or digital
component).

– To create conditions for success, the plan

should take into account the realities of
the new business environment and new
marketing context.
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

– Found on the web and in many specialized

books, several marketing plan templates
or digital marketing communications (1)
– The most important is to include digital
marketing plan for the strategic planning
of traditional communication of the
company.
– Here in brief the main elements that
should contain a plan based on previous
concepts.
(1) Here are two examples: marketing Interactive and The Internet
Marketing PlanKim Bayne, Wiley & Sons, 1997.
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

 Internet statistical analysis based on the target

market

To include:
statistics demonstrating the use of the Internet in
general in the target and market the products in
question (a comparison with other geographic
markets can be very useful).
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

 Analysis Web competition for the intended

market

To include:
number of competitors, analysis of their strategy
and their offer (Including website, products,
strengths and weaknesses), estimated from
market, etc.
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

 Identifying a business opportunity

To include:
accurately identify the business opportunity (ex .:
sell Cuban cigars) and demonstrate what exactly it
answers a need expressed by the targeted
audiences.

This corresponds to the concept of perceived value

of the offer. (Supported primary or secondary
research).
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

If you can not reach the stage 3, the

chances of success are compromised.

The project is to reconsider!

SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

 Strategic planning

To include:
Products
the distribution model (taking into account the
Internet reality)
the customer service strategy (interactive means
envisaged)
the implantation steps
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

 Strategic planning

To include:
the products and services (description benefits
key, perceptions)
the objectives (market share, sales, etc.)
target markets
the precise offer including pricing strategy
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

 The design and production of a website

To include:
architecture and sitemap considered with
emphasis on its distinctive elements
approach and navigation model
technology used on the site
process type of a purchase
Technical aspects and accommodation (eg link to
databases)
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

 The promotion

To include:
interactive and traditional means to increase the
frequency of visits and shopping (keywords, search
engines, banners on other websites, exchanges,
electronic mail, discussion lists, etc.)
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

 provided funding and budget

To include:
budget scenarios based on attendance
assumptions and shopping on the site
evaluating the effectiveness and profitability
taking into account the following budget elements:
start operations (including promotion)
identification of sources of financing conditions
SESSION 2: Marketing in the Age
the Internet. Elements of a plan
digital marketing.

 Budget

To include:
each item is detailed
SESSION 2: Marketing in the Age
the Internet.

This presentation was designed and prepared in

January 1999 by Lorraine Hébert and Jean Ethier
lecturers at the School of Higher Commercial
Studies of Montreal

© Lorraine Hébert and Jean Ethier