E-Marketing, 3rd edition   Judy Strauss, Adel I. El-Ansary,   and Raymond Frost Chapter 1: The Big Picture  © Prentice Hal...
Overview  <ul><li>The Emergence of E-Marketing:  The Google Story </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><l...
The  Google  story shows: <ul><li>Markets always welcome an innovative new product providing customer value.  </li></ul><u...
Key questions for corporations: <ul><li>How to use information technology profitably ? </li></ul><ul><li>How to understand...
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?   </li></ul><ul><li>What Is E-Busin...
What is E-Marketing? <ul><ul><li>E-Marketing is the application of a broad range of information technologies for:  </li></...
What is E-Marketing? <ul><ul><li>Alternative definition:  E-marketing is the result of information technology applied to t...
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
What Is E-Business? <ul><ul><li>E-business  “is the continuous optimization of a firm’s business activities through digita...
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
The Big Picture <ul><li>Easy, inexpensive, and quick access to digital information transforms: </li></ul><ul><li>economies...
Uneven impact of the Internet across the globe: <ul><li>530 million users connected to the Internet worldwide = 8.5% of th...
Undesirable changes created by a networked world <ul><li>Societies change as global communities based on interests form, <...
Undesirable changes created by a networked world <ul><li>Class divisions will grow, preventing the upward mobility of peop...
The digital environment is enhancing processes and activities across the entire organization: <ul><li>Cross-functional tea...
The digital environment is enhancing processes and activities across the entire organization: <ul><li>Production and opera...
Important e-business benefits according  to U.S. top executives: <ul><li>Building better quality customer relationships, <...
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
Tough Times <ul><li>The first generation of e-business was like a gold rush = creation of a Web presence and experimentati...
Tough Times <ul><li>Marketers return to their traditional roots and rely on well-grounded strategy and sound marketing pra...
The Most Important Benefits of E-Business to U.S. Executives Source : “Key Business and Marketing...” (2002) <ul><li>Benef...
What will the future be? <ul><li>Gartner Group predicts that a  true  e-business model will emerge, and by 2008 the “e” wi...
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
There is Hope After the Trough of Disillusion Source:  Adapted from Raskino and Andren of Gartner Research (2001) E-Market...
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
Environment, Strategy, and Performance (ESP) <ul><li>Business environment: legal, technological, competitive, market-relat...
 
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
Key environmental factors  affecting e-marketing <ul><li>1. Legal,  </li></ul><ul><li>2. Technological  </li></ul><ul><li>...
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
Legal Factors <ul><li>Current and pending legislation can greatly influence e-marketing strategies: </li></ul><ul><li>Priv...
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
Technology <ul><li>Technological developments influence: </li></ul><ul><li>The composition of Internet audiences, </li></u...
Technology <ul><li>Technology lowers costs: Many firms have saved money on staff and paperwork via electronic order proces...
What is the Internet? <ul><li>The  Internet  is a global network of interconnected networks: </li></ul><ul><li>Millions of...
What is the Internet? <ul><li>Three important types of networks form part of the Internet: </li></ul><ul><ul><li>Intranet ...
It’s Bigger Than the Internet <ul><li>Electronic marketing reaches far beyond the Web:   </li></ul><ul><ul><li>Many e-mark...
It’s Bigger Than the Internet <ul><li>The Internet holds more than one Web: </li></ul><ul><ul><li>The Web that most users ...
It’s Bigger Than the Internet <ul><li>Offline electronic data-collection devices such as bar code scanners. </li></ul><ul>...
Internet Properties and Marketing Implications <ul><li>Marketers who grasp what Internet technologies can do will be bette...
Internet Properties and Marketing Implications <ul><li>Internet technologies have changed traditional marketing in a numbe...
 
 
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
E-Business Markets  <ul><li>Once marketers identify appropriate markets, information technology facilitates relationships ...
 
Business Market <ul><li>It is huge: more businesses are connected to the internet than consumers. </li></ul><ul><li>It is ...
Consumer Market <ul><li>E-marketers must understand consumers in potential geographic segments: </li></ul><ul><ul><li>Icel...
Consumer Market <ul><li>The consumer market is huge and quite active online: </li></ul><ul><li>28% of consumers said they ...
Revenge of the Consumer <ul><li>The rebellion started with television channel surfing using the remote control. Consumers ...
Consumer Needs <ul><li>What do customers want in the information economy?  </li></ul><ul><li>Privacy: Customers want marke...
Consumer Needs <ul><li>Fortunately, e-marketing can meet all these needs: </li></ul><ul><li>With  mass customization  indi...
 
Government Market <ul><li>The U. S. government is the world’s largest buyer, purchasing over $200 billion in goods and ser...
Government Market <ul><li>Businesses wishing to sell to governments face challenges unique to this market: </li></ul><ul><...
Overview  <ul><li>The Emergence of E-Marketing  </li></ul><ul><li>What is E-Marketing?  </li></ul><ul><li>What Is E-Busine...
What’s Next? <ul><li>Regardless of the current disillusion with e-business, many solid successes exist today and exciting ...
Key Terms <ul><li>Business-to-Business (B2B) </li></ul><ul><li>Business-to-Consumer (B2C) </li></ul><ul><li>Business-to-Go...
Review Questions <ul><ul><li>1. Define e-business and e-marketing. </li></ul></ul><ul><ul><li>2. What are performance metr...
Discussion Questions <ul><ul><li>1.  As a marketer, do you agree with the U.S. executives who say “better quality customer...
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Marketing on the Internet

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Transcript of "Marketing on the Internet"

  1. 1. E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 1: The Big Picture © Prentice Hall 2003
  2. 2. Overview <ul><li>The Emergence of E-Marketing: The Google Story </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  3. 3. The Google story shows: <ul><li>Markets always welcome an innovative new product providing customer value. </li></ul><ul><li>Customers trust good brands. </li></ul><ul><li>Well-crafted marketing mix strategies can be effective in helping newcomers enter crowded markets. </li></ul>
  4. 4. Key questions for corporations: <ul><li>How to use information technology profitably ? </li></ul><ul><li>How to understand what technology means for their business strategies? </li></ul><ul><li>How time-tested concepts by marketers can be enhanced by the Internet, databases, wireless mobile devices, and other technologies? </li></ul><ul><li>What’s next after the rapid growth of the Internet and the dot-com bubble has marketers wondering ? </li></ul>
  5. 5. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  6. 6. What is E-Marketing? <ul><ul><li>E-Marketing is the application of a broad range of information technologies for: </li></ul></ul><ul><ul><li>Transforming marketing strategies to create more customer value (more effective segmentation, targeting, differentiation, and positioning strategies), </li></ul></ul><ul><ul><li>More efficiently planning and executing the conception, distribution, promotion and pricing of goods, services, and ideas, </li></ul></ul><ul><ul><li>Creating exchanges that satisfy individual consumer and organizational customers’ objectives. </li></ul></ul>
  7. 7. What is E-Marketing? <ul><ul><li>Alternative definition: E-marketing is the result of information technology applied to traditional marketing. </li></ul></ul><ul><ul><li>E-marketing affects traditional marketing in two ways: </li></ul></ul><ul><ul><ul><li>Increases efficiency in traditional marketing functions, </li></ul></ul></ul><ul><ul><ul><li>The technology of e-marketing transforms many marketing strategies. </li></ul></ul></ul><ul><li>Results: new business models that add customer value and/or increase company profitability. </li></ul>
  8. 8. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  9. 9. What Is E-Business? <ul><ul><li>E-business “is the continuous optimization of a firm’s business activities through digital technology” </li></ul></ul><ul><ul><li>Digital technologies = information technology are things like computers and the Internet, that allow the storage and transmission of data in digital formats (1’s and 0’s) </li></ul></ul>
  10. 10. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  11. 11. The Big Picture <ul><li>Easy, inexpensive, and quick access to digital information transforms: </li></ul><ul><li>economies, - societies, </li></ul><ul><li>governments, - businesses. </li></ul><ul><li>Digital information enhances economies through: </li></ul><ul><ul><li>more efficient markets, </li></ul></ul><ul><ul><li>more jobs, </li></ul></ul><ul><ul><li>information access, </li></ul></ul><ul><ul><li>communication globalization, </li></ul></ul><ul><ul><li>lower barriers to foreign trade and investment, and more. </li></ul></ul>
  12. 12. Uneven impact of the Internet across the globe: <ul><li>530 million users connected to the Internet worldwide = 8.5% of the global population, </li></ul><ul><li>Developed nations = 15% of the world’s population = 88% of all Internet users, </li></ul><ul><li>U.S. Internet users = 182 million = 64% of the population, </li></ul><ul><li>Indigenous peoples in remote locations gaining health, legal, and other advice, or selling native products using the Internet. </li></ul>
  13. 13. Undesirable changes created by a networked world <ul><li>Societies change as global communities based on interests form, </li></ul><ul><li>Worldwide information access slowly decreases cultural and language differences, </li></ul><ul><li>Easy computer networking = work and home boundaries are blurring = more convenient work = encourage more workaholism and less time with family. </li></ul>
  14. 14. Undesirable changes created by a networked world <ul><li>Class divisions will grow, preventing the upward mobility of people on lower socioeconomic levels and even entire developing countries, </li></ul><ul><li>Digital divide: Internet adoption occurs when folks have: </li></ul><ul><ul><li>Enough money to buy a computer, </li></ul></ul><ul><ul><li>The literacy to read what is on Web pages, </li></ul></ul><ul><ul><li>The education to be motivated to do it. </li></ul></ul>
  15. 15. The digital environment is enhancing processes and activities across the entire organization: <ul><li>Cross-functional teams using computer networks to share and apply knowledge for increased efficiency and profitability, </li></ul><ul><li>Financial experts communicate shareholder information online, file required government statements, and invent new ways to value risk, etc., </li></ul><ul><li>Human resources personnel use the Net for electronic recruiting and training; an increasing number are managing organizational knowledge and workflow through corporate Web portals. </li></ul>
  16. 16. The digital environment is enhancing processes and activities across the entire organization: <ul><li>Production and operation managers can adjust manufacturing based on the Internet’s ability to give immediate sales feedback resulting in truly just-in-time inventory and building products to order, </li></ul><ul><li>Strategists are leveraging the Net to apply the firm’s knowledge in building and maintaining a competitive edge (easy access to data). </li></ul>
  17. 17. Important e-business benefits according to U.S. top executives: <ul><li>Building better quality customer relationships, </li></ul><ul><li>Finding more business partners and other development opportunities, </li></ul><ul><li>Building better brand visibility. </li></ul>
  18. 18. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  19. 19. Tough Times <ul><li>The first generation of e-business was like a gold rush = creation of a Web presence and experimentation. </li></ul><ul><li>Results: </li></ul><ul><ul><li>Huge sales and market share, </li></ul></ul><ul><ul><li>BUT little was brought to the bottom line and profit was negative, </li></ul></ul><ul><ul><li>Since January 2000, however, over 500 Internet firms have shut down in the U.S. alone. </li></ul></ul><ul><li>E.g: CDNow , Lycos , DoubleClick , E*Trade , and Amazon.com </li></ul><ul><li>The “ trough of disillusion” is based 30% on the technology recession and 70% on disappointment with e-business results. </li></ul>
  20. 20. Tough Times <ul><li>Marketers return to their traditional roots and rely on well-grounded strategy and sound marketing practices. </li></ul><ul><li>During the dot-com shakeout from 2000-2002, there was much industry consolidation: </li></ul><ul><ul><li>Some firms, such as Levi Strauss, stopped selling online = not efficient + created channel conflict . </li></ul></ul><ul><ul><li>Other firms merged, </li></ul></ul><ul><ul><li>E.g. e-business firm took over a traditional firm = AOL purchased Time-Warner. </li></ul></ul>
  21. 21. The Most Important Benefits of E-Business to U.S. Executives Source : “Key Business and Marketing...” (2002) <ul><li>Benefit % Mentioning </li></ul><ul><li>Better quality customer relationships 61 </li></ul><ul><li>More business development opportunities 50 </li></ul><ul><li>Better brand visibility 50 </li></ul><ul><li>Drive fat from supply chain 42 </li></ul><ul><li>Reduce time-to-market 33 </li></ul><ul><li>Increase customer quantity 25 </li></ul>
  22. 22. What will the future be? <ul><li>Gartner Group predicts that a true e-business model will emerge, and by 2008 the “e” will be dropped, making electronic business just part of the way things are done. </li></ul><ul><li>Some say that “E-business has become just business. E-commerce has become just commerce. The new economy has become just the economy (Aronica and Fingar 2001). </li></ul><ul><li>” Others say that this is far from the truth—for them, e-business will always have its own models, concepts, and practices. </li></ul><ul><li>Charles Schwab has already gone through the entire cycle allowing e.Schwab.com to cannibalize the larger brick-and-mortar securities firm in 1998. </li></ul>
  23. 23. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  24. 24. There is Hope After the Trough of Disillusion Source: Adapted from Raskino and Andren of Gartner Research (2001) E-Marketing in Context: W here does e-marketing fit into this picture?
  25. 25. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  26. 26. Environment, Strategy, and Performance (ESP) <ul><li>Business environment: legal, technological, competitive, market-related, and other environmental factors external to the firm = Opportunities and Threats , </li></ul><ul><li>SWOT analyses = Strengths and Weaknesses, </li></ul><ul><li>E-business strategies + e-business models + e-marketing plans = Help the firm accomplish its overall goals, </li></ul><ul><li>Determine the success of the strategies and plans by measuring results. </li></ul><ul><ul><ul><li>= Performance metrics, specific measures designed to evaluate the effectiveness and efficiency of the e-business and e-marketing operations. </li></ul></ul></ul>
  27. 28. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  28. 29. Key environmental factors affecting e-marketing <ul><li>1. Legal, </li></ul><ul><li>2. Technological </li></ul><ul><li>3. Market-related factors </li></ul>
  29. 30. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  30. 31. Legal Factors <ul><li>Current and pending legislation can greatly influence e-marketing strategies: </li></ul><ul><li>Privacy: Difficult to legislate + Critical because consumers yield personal information over the Internet </li></ul><ul><li>Opt-out e-mail: when users must uncheck a Web page box to avoid being put on a company’s e-mail list, </li></ul><ul><li>Difficult for governments to balance freedom of expression against consumer needs, </li></ul><ul><li>New technology brings new opportunities for fraud: enforcement is difficult in a networked world. </li></ul>
  31. 32. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  32. 33. Technology <ul><li>Technological developments influence: </li></ul><ul><li>The composition of Internet audiences, </li></ul><ul><li>The quality of material that can be delivered to them. </li></ul><ul><li>E-marketing is evolving through software advances: Technologies can target consumers according to their online behavior to give a firm a distinct competitive advantage. </li></ul>
  33. 34. Technology <ul><li>Technology lowers costs: Many firms have saved money on staff and paperwork via electronic order processing, billing, and e-mail. </li></ul><ul><li>Technology requires costly investments: </li></ul><ul><li>Web page development costs millions of dollars, </li></ul><ul><li>E-commerce operations require expensive hardware and software, </li></ul><ul><li>New technologies continue to emerge, which make current investments obsolete, </li></ul><ul><li>Putting technology to use entails a steep learning curve. </li></ul>
  34. 35. What is the Internet? <ul><li>The Internet is a global network of interconnected networks: </li></ul><ul><li>Millions of corporate, government, organizational, and private networks, </li></ul><ul><li>The Internet consists of computers with data, users who send and receive the data files, and a technology infrastructure to move, create, and view or listen to the content. </li></ul>
  35. 36. What is the Internet? <ul><li>Three important types of networks form part of the Internet: </li></ul><ul><ul><li>Intranet = A network running internally in a corporation + using Internet standards (HTML and browsers) = a mini-Internet but only for internal corporate consumption, </li></ul></ul><ul><ul><li>Extranet = An intranet with value chain partners + the access is normally only partial, </li></ul></ul><ul><ul><li>Web = The portion of the Internet that supports a graphical user interface for hypertext navigation with a browser (Netscape / Internet Explorer). The Web is what most people think about when they think of the Internet. </li></ul></ul>
  36. 37. It’s Bigger Than the Internet <ul><li>Electronic marketing reaches far beyond the Web: </li></ul><ul><ul><li>Many e-marketing technologies exist </li></ul></ul><ul><ul><li>= Customer relationship management, supply chain management, and electronic data interchange arrangements predating the Web, </li></ul></ul><ul><ul><li>Non-Web Internet services such as e-mail and newsgroups </li></ul></ul><ul><ul><li>= Effective avenues for marketing. </li></ul></ul>
  37. 38. It’s Bigger Than the Internet <ul><li>The Internet holds more than one Web: </li></ul><ul><ul><li>The Web that most users access from PCs, </li></ul></ul><ul><ul><li>Subsets of the Web with content specially formatted for the unique display properties: </li></ul></ul><ul><ul><ul><li>Web TV, </li></ul></ul></ul><ul><ul><ul><li>Personal digital assistants, </li></ul></ul></ul><ul><ul><ul><li>Cell phones, </li></ul></ul></ul><ul><ul><ul><li>Text-only browsers. </li></ul></ul></ul>
  38. 39. It’s Bigger Than the Internet <ul><li>Offline electronic data-collection devices such as bar code scanners. </li></ul><ul><li>Portion of the Web containing high-bandwidth content for users who have either cable modems or digital subscriber loop (DSL) connections. </li></ul>
  39. 40. Internet Properties and Marketing Implications <ul><li>Marketers who grasp what Internet technologies can do will be better poised to capitalize on information technology. </li></ul><ul><li>Internet properties: </li></ul><ul><ul><ul><li>Create opportunities beyond those possible with the telephone, television, postal mail, or other communication media, </li></ul></ul></ul><ul><ul><ul><li>More effective and efficient marketing strategy + tactical implementation + change the way marketing is conducted. </li></ul></ul></ul><ul><li>E.g. The idea of digitizing data (bits not atoms) has transformed media and software delivery methods + created a new transaction channel. </li></ul>
  40. 41. Internet Properties and Marketing Implications <ul><li>Internet technologies have changed traditional marketing in a number of critical ways: </li></ul><ul><ul><li>Power shift from sellers to buyers, </li></ul></ul><ul><ul><li>Death of distance, </li></ul></ul><ul><ul><li>Time compression, </li></ul></ul><ul><ul><li>Knowledge management is key, </li></ul></ul><ul><ul><li>Interdisciplinary focus, </li></ul></ul><ul><ul><li>Intellectual capital rules. </li></ul></ul>
  41. 44. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  42. 45. E-Business Markets <ul><li>Once marketers identify appropriate markets, information technology facilitates relationships before and after the transaction with: </li></ul><ul><ul><li>Prospects, </li></ul></ul><ul><ul><li>Customers, </li></ul></ul><ul><li>There are three important markets that both sell and buy to each other: </li></ul><ul><ul><li>Businesses, </li></ul></ul><ul><ul><li>Consumers, </li></ul></ul><ul><ul><li>Governments. </li></ul></ul><ul><ul><li>Partners, </li></ul></ul><ul><ul><li>Supply chain members. </li></ul></ul>
  43. 47. Business Market <ul><li>It is huge: more businesses are connected to the internet than consumers. </li></ul><ul><li>It is transparent to consumers: it involves proprietary networks that allow information and database sharing. </li></ul><ul><li>E.g. FedEx , the package delivery firm: </li></ul><ul><ul><li>Its customers can schedule a package pick-up using the Web site, </li></ul></ul><ul><ul><li>Track the package using a PC or handheld PalmPilot, </li></ul></ul><ul><ul><li>Pay the shipping bill online. </li></ul></ul>
  44. 48. Consumer Market <ul><li>E-marketers must understand consumers in potential geographic segments: </li></ul><ul><ul><li>Iceland and Denmark = 2 of the most wired countries in the world = 60% Internet penetration, </li></ul></ul><ul><ul><li>Consumers in many countries pay by the minute for local phone access = determine the kind of casual surfing practiced by Internet users. </li></ul></ul>
  45. 49. Consumer Market <ul><li>The consumer market is huge and quite active online: </li></ul><ul><li>28% of consumers said they have shopped online or plan to shop online in the next six months, </li></ul><ul><li>15% purchased offline as a direct result of online information, </li></ul><ul><li>U.S. consumers are the biggest online shoppers, spending US$53 billion in 2001, an increase of nearly 20% from 2000. </li></ul>
  46. 50. Revenge of the Consumer <ul><li>The rebellion started with television channel surfing using the remote control. Consumers did not seem to appreciate that commercials pay for broadcast TV programs. </li></ul><ul><li>At the start of the 21st century, consumers have control via the mouse. When television, radio, print media, entertainment, and shopping all converge seamlessly on a computer-like device, consumers will truly have information on demand. </li></ul><ul><li>Consumers are more demanding and more sophisticated, and marketers will have to become better at delivering customer value. </li></ul>
  47. 51. Consumer Needs <ul><li>What do customers want in the information economy? </li></ul><ul><li>Privacy: Customers want marketers to keep their data confidential + don’t want to be bothered by sales calls at home during dinner, </li></ul><ul><li>To safeguard children from objectionable sites, </li></ul><ul><li>Want marketers to ask permission before sending commercial e-mail messages, </li></ul><ul><li>Want e-commerce to provide convenience, self-service, speed, good customer service, personal attention, and value. </li></ul>
  48. 52. Consumer Needs <ul><li>Fortunately, e-marketing can meet all these needs: </li></ul><ul><li>With mass customization individuals can contact firms over the Internet and receive responses tailored to their needs, </li></ul><ul><li>Business can also customize and personalize products and communications to strengthen long-term relationships with customers. </li></ul><ul><li>E.g. Amazon.com presents personalized Web pages to users </li></ul>
  49. 54. Government Market <ul><li>The U. S. government is the world’s largest buyer, purchasing over $200 billion in goods and services every year (see www.isbdcorp.org/gmag ). </li></ul><ul><li>Add to this the purchasing power of U.S. states, counties, cities, and other municipal agencies, and this makes for a huge market. </li></ul><ul><li>Small and large businesses usually have an equal chance of selling to governments + government Web sites announce their buying needs in advance of the bidding process. </li></ul>
  50. 55. Government Market <ul><li>Businesses wishing to sell to governments face challenges unique to this market: </li></ul><ul><ul><li>Follow rules regarding qualifications, paperwork, etc., </li></ul></ul><ul><ul><li>Must compete to be on the government list of approved suppliers + compete for specific contracts through a bidding process, </li></ul></ul><ul><ul><li>Have to conform to very particular timely delivery of quality products at reasonable prices. </li></ul></ul>
  51. 56. Overview <ul><li>The Emergence of E-Marketing </li></ul><ul><li>What is E-Marketing? </li></ul><ul><li>What Is E-Business? </li></ul><ul><li>The Big Picture </li></ul><ul><li>Tough Times </li></ul><ul><li>E-Marketing in Context </li></ul><ul><ul><li>Environment, Strategy, and Performance (ESP) </li></ul></ul><ul><li>E-Marketing Environment </li></ul><ul><li>Legal Factors </li></ul><ul><li>Technology </li></ul><ul><li>E-Business Markets </li></ul><ul><li>What’s Next? </li></ul>
  52. 57. What’s Next? <ul><li>Regardless of the current disillusion with e-business, many solid successes exist today and exciting new growth areas will soon emerge. </li></ul><ul><li>Seven trends that will help businesses move forward into e-marketing : </li></ul><ul><ul><li>Integrating IT software, </li></ul></ul><ul><ul><li>Boom in Web services, </li></ul></ul><ul><ul><li>Collaboration software, </li></ul></ul><ul><ul><li>Dealing with too much data, </li></ul></ul><ul><ul><li>Data security, </li></ul></ul><ul><ul><li>Wireless is here to stay, </li></ul></ul><ul><ul><li>Growth in portable computing. </li></ul></ul>
  53. 58. Key Terms <ul><li>Business-to-Business (B2B) </li></ul><ul><li>Business-to-Consumer (B2C) </li></ul><ul><li>Business-to-Government (B2G) </li></ul><ul><li>Consumer-to-Consumer (C2C) </li></ul><ul><li>Digital technology </li></ul><ul><li>E-business </li></ul><ul><li>E-commerce </li></ul><ul><li>E-marketing Extranet </li></ul><ul><li>Information technology </li></ul><ul><li>Internet </li></ul><ul><li>Intranet </li></ul><ul><li>Mass customization </li></ul><ul><li>Performance metrics </li></ul><ul><li>Web </li></ul><ul><li>Web services </li></ul>
  54. 59. Review Questions <ul><ul><li>1. Define e-business and e-marketing. </li></ul></ul><ul><ul><li>2. What are performance metrics and why are they important? </li></ul></ul><ul><ul><li>3. What are some of the key legal issues that affect e-marketing? </li></ul></ul><ul><ul><li>4. How does technology both raise and lower costs for companies? </li></ul></ul><ul><ul><li>5. As a technology, how does the Internet compare with the telephone? </li></ul></ul><ul><ul><li>6. What are some of the marketing implications of Internet technologies? </li></ul></ul><ul><ul><li>7. What are the three main markets of e-business, and how do they differ? </li></ul></ul><ul><ul><li>8.In the context of e-marketing, what does “revenge of the consumer” mean? </li></ul></ul>
  55. 60. Discussion Questions <ul><ul><li>1. As a marketer, do you agree with the U.S. executives who say “better quality customer relationships” is one of the most important e-business benefits? Why? </li></ul></ul><ul><ul><li>2. As a consumer, are you likely to benefit when e-business becomes “just business” in the near future? Explain your answer. </li></ul></ul><ul><ul><li>3. Some economists suggest that the increase in e-commerce within the B2B market will lead to greater competition and more goods and services becoming commodities  that is, solely competing on price. How do you think this is likely to affect buyers within the B2B market? How would it affect sellers? </li></ul></ul><ul><ul><li>4. What concerns about consumer privacy are raised by the increased use of wireless computing and handheld devices outside the home or workplace? </li></ul></ul>
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