Internet Marketing Paradigm

Four distinct generic goals

1.  Customer acquisition - is a foundation goal of all marketers.

2.  Customer conversion - is the process of changing visitors, shoppers, or prospects into actual customer.

3.  Customer retention - involves turning the newly found customer into a loyal one who will remain with the enterprise over an extended period.

4.  Customer value growth - the equity that exists in the enterprise’s customer base, is the end goal of the acquisition, conversion, and retention process.

Internet Marketing Inputs

1.  Internet Business Models

a.  Transaction Models – are the way in which Internet businesses organize to carry out exchange whether it be content or commercial transactions.

b.  Revenue Models – are the various streams of revenues that businesses can employ to support their activities.

c.  Multichannel Marketing – is the driving force behind many business models.  It requires the integration of both offline (physical world) and online (interactive) channels.

2.  Interactive Channels

a.  Websites and blogs – it become channels of communication for many businesses, especially in B2B markets.

b.  Search marketing – includes search engine optimization (SEO) and pay-per-click (PPC) advertising, is the single most important way that marketers drive visitors to their websites.

c.  E-mail marketing – is a key tool of the Internet marketer.  It can be used in customer acquisition programs, but is especially important in customer retention campaign.

It is directly marketing a commercial message to a group of people using email.  Every email sent to a potential or current customer could be considered email marketing.  It usually involves using email to send ads, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. 

d.  Mobile marketing – is a well-developed channel in Europe and Asia and rapidly growing in the United States.

It is marketing on or with a mobile device, such as a smart phone.  It can provide customers with time and location sensitive, personalized information that promotes goods, services and ideas.

3.  Social Media Channels

a.      Social networks for communication

      Three largest social networks used by people for personal communication and by business for communication and brand development.

a.1  Facebook

a.2  Twitter

a.3  LinkedIn

b.      Social platforms for creation of branded channels.

      Social platforms that allow marketers to establish communities around a particular brand or a subject of mutual interest.

b.1  Ning community platform

b.2  WordPress platform

4.  Offline Channels

a.  Mass media

b.  Events

c.  Sponsorship

d.  Public relations

5.  Social and regulatory issues

a.  Privacy

b.  Security

c.  CAN-SPAM

d.  Pending regulation

Internet Marketing Actions

            1.  Advertising and promotion

Online advertising and promotion that can be used to incite the viewer to immediate action or to build the image of the brand.

•      Direct response

•      Brand development

2.  E-commerce

Refers to commercial transactions on the internet.

•      Business to business (B2B)

•      Business to consumer (B2C)

•      Business to government and nonprofit organizations (B2G and NP)

3.  Customer service and support

The quality of customer service can be improved at the same time the cost to deliver it can be decreased by judicious use of the Internet.

•      Automated

•      Human agents

•      Preventative