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Marketing on the Web

Marketing on the Web

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CHAPTER 4

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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Learning Objectives

In this chapter, you will learn:

How firms use product-based and customer-based marketing strategies

Strategies for communicating with different market segments

To identify customer’s characteristics as they move through the customer relationship life cycle

How online advertising has developed and grown

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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Learning Objectives (cont’d.)

About e-mail marketing strategies

About technology-enabled customer relationship management

How to create and maintain brands on the Web

How businesses use social media in viral marketing campaigns

About search engine positioning tactics and domain name selection strategies

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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Introduction

When household products were purchased primarily by women, ads depicting the father as inept might have made sense

Men now take a larger role in these decisions and companies have turned away from adverting that makes a joke of men’s experiences

In 2012 Kimberly-Clark faced a firestorm of criticism for portraying men as incompetent caregivers

Company now regularly engages with “dad-focused” social media outlets and participates in the annual Dad 2.0 Summit

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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The Four Ps of Marketing

Product is the physical item or service sold

Brand is the customers’ product perception

Price is amount customer pays for product

Customer value is customer benefits minus total cost

Promotion includes any means to spread word about product

Place (distribution) is the need to have products or services available in many different locations

Getting right products to the right places at the best time to sell them

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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FIGURE 4-1 The four Ps of marketing contribute to marketing strategy

© Cengage Learning 2017

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Product-Based Marketing Strategies

Managers often think in terms of products and services sold

Works well when customers think of needs in terms of product categories

Web site examples: Office Depot, Staples, Sears

Not an efficient Web site design when customers look to fulfill a specific need

Design Web site to meet individual customer needs

Offer alternative shopping paths

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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Customer-Based Marketing Strategies

Web sites designed to meet various types of customers’ specific needs

Initial step is to identify customer groups sharing common characteristics (demographic)

Make site more accessible and useful for each group

Companies need to take view beyond internal perspective

Current university Web sites focus design on needs of stakeholders (current students, prospective students, parents of students, potential donors, faculty)

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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Communicating with Different Market Segments

Media selection or choosing where to market and advertise a company can be critical for an on-line only firm

No physical presence

Only customer contact made through image projected through media and Web site

Online firm challenge is to obtain customer trust with no physical presence

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

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Trust, Complexity, and Media Choice

The Web is a very broad, intermediate step between

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