The frequently cited quote that opens this chapter, although not to be taken too literally, is a stark warning that organizations must revisit all facets of their operations when going online. Marketing is no exception. The Internet is a powerful new tool for the marketer, opening new channels of communication between buyer and seller and making it easier to develop long distance relationships. It can significantly reduce promotional costs as well as allowing offers to be customized. This chapter looks at Internet marketing and assesses how it differs from conventional marketing.

The basis of all marketing is meeting, or ideally surpassing, a customer's needs and wants with your products and services. The marketer's starting point is the acquisition of good knowledge about potential customers: their success factors, individual requirements, buying patterns and so on. On the Internet this is initially difficult, since a potential customer visiting your website is 'invisible'. On the other hand, the very nature of the Internet means that its users leave tracks as they click from Web page to Web page. By using tools that analyse these 'click streams' marketers can build up a detailed picture of each user's online habits and interests. Another strand of analysis that is needed is a critical review of your own company's capabilities. What are its core competencies? What are its strengths and weaknesses for those factors that customers consider important? By evaluating these alongside the capabilities of competitors,...