Learning objectives
After reading this chapter, the reader should be able to:
Identify the different elements of the Internet environment that
impact on an organisation’s Internet marketing strategy
Assess competitor, customer and intermediary use of the Internet
Evaluate the relevance of changes in trading patterns and business
models enabled by e-commerce
Questions for marketers
Key questions for marketing managers related to this chapter are:
How are the competitive forces and value chain changed by the
Internet?
How do I assess the demand for Internet services from customers?
How do I compare our online marketing with that of competitors?
What is the relevance of the new intermediaries?
Links to other chapters
This chapter, together with the following one, provides a foundation for
later chapters on Internet marketing strategy and implementation:
Chapter 3, The Internet macro-environment complements this
chapter
Chapter 4, Internet marketing strategy explains how environment
analysis is used as part of strategy development
Chapter 5, The Internet and the marketing mix considers the role of
‘Place’ in the online marketing mix
2
Main topics
Marketplace 45
Customers 61
Online buyer behaviour 74
Competitors 85
Suppliers 86
Intermediaries 86
Case study 2
Zopa launches a new lending
model 90
Chapter at a glance
The Internet
micro-environment