E Marketing Week10


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Week 10 of 13 of the 2007 Internet Marketing Course. Content is based in part on Dann, S and Dann S 2004 Strategic Internet Marketing 2.0, Milton: Wiley. Diagrams taken from the Dann and Dann text are copyright to their respective copyright holders.

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E Marketing Week10

  1. 1. MKTG7037 / MKTG2032 E-marketing Week n+1 where n=“last week”
  2. 2. Course Structure Chapter 15 International marketing 21 May 12 Chapter 14 Relationship marketing 28 May 13 Chapter 13 Services marketing online 14 May 11 Chapter 12 Distribution 7 May 10 Chapter 11 Pricing strategies 30 April 9 Chapter 10 Promotion 2: the internet as a promotional medium 23 April 8 Chapter 9 Promotion: the internet in the promotional mix 2 April 7 Chapter 8 The role of product in internet marketing 26 March 6 Chapter 7 The internet in marketing strategy 19 March* 5 Chapter 6 Applications for business and non-business 12 March 4 Chapter 5 Creating cybercommunities 5 March 3 Chapter 4 Consumer behaviour 26 February 2 Chapter 3 Unique features of internet-based marketing 19 February 1 Topic(s)/Task(s) Week beginning Week No
  3. 3. Assessment Due Dates <ul><li>Task Weighting Due </li></ul><ul><li>Essay Registration 01 March 16 </li></ul><ul><li>Solo Assignment 20 March 26 </li></ul><ul><li>Group-Optional Essay 29 May 21 </li></ul><ul><li>Final Examination 30 June </li></ul><ul><li>Online Forum 20 During semester </li></ul>
  4. 4. Now, a very serious question of internet related matters
  5. 5. Pirates versus Ninjas? <ul><li>LOLPIRATES AND ICANHASNINJASTARCATS DO NOT COUNT </li></ul>
  6. 6. Twitter Redux <ul><li>Just when you thought I had a life* </li></ul><ul><ul><li>http://twitthis.com/ </li></ul></ul><ul><li>*Actually you probably didn’t… </li></ul>
  7. 7. Second Life <ul><li>A Supercharged Hoover Deluxe in a world of vastly superior alternatives. </li></ul><ul><ul><li>(And if I’m wrong, I don’t care. I still don’t like the current implementation) </li></ul></ul>
  8. 9. SL v WoW
  9. 10. World of Add-on Packs <ul><li>Wow Basic </li></ul><ul><ul><li>Not good </li></ul></ul><ul><li>WoW + 3 rd Party Plugins </li></ul><ul><ul><li>ROCK ON! </li></ul></ul>
  10. 11. Distribution Oh yeah, the content
  11. 12. Reputation Distribution <ul><li>People can make or break companies. </li></ul><ul><li>People make the difference between relevance and obsolescence. </li></ul><ul><li>People foster innovation, or kill it dead. </li></ul><ul><li>People are your ticket to growth and success. </li></ul><ul><ul><li>http://thebrandbuilder.blogspot.com/2007/05/people-principle.html </li></ul></ul>
  12. 13. Social Media as a Distribution Hub <ul><li>del.icio.us </li></ul><ul><li>Digg it </li></ul><ul><li>ma.gnolia </li></ul><ul><li>Yahoo MyWeb </li></ul><ul><li>Google </li></ul><ul><li>StumbleUpon </li></ul><ul><li>If the product is data, ideas or reputation, the shipping agency is other people </li></ul>
  13. 14. Web2.0 Distribution metaphors <ul><li>I think of Velcro as an analogy for how Web 2.0 works by allowing for lots of little connections. Viewed one way, it's messy. Viewed another it's rather beautiful. And offers the possibility of a lot of grip... </li></ul><ul><li>http://www.johnniemoore.com/blog/archives/001748.php </li></ul>
  14. 15. Distributions and the Mix
  15. 16. Distribution and product <ul><li>The first and foremost aspect of the impact of distribution is that it determines in part what product can be offered through the Internet channel </li></ul><ul><li>Three elements of information-based marketing </li></ul><ul><ul><li>Digital transmission of information </li></ul></ul><ul><ul><li>Interactive transmission of information </li></ul></ul><ul><ul><li>Individualised transmission </li></ul></ul>
  16. 17. Distribution and price <ul><li>Consumers have problems with cost of shipping </li></ul><ul><li>uncertainty stems from the following: </li></ul><ul><ul><li>Shipping speed </li></ul></ul><ul><ul><li>Viability of shipping fragile or perishable goods </li></ul></ul><ul><ul><li>Local alternatives for face-to-face pick-up </li></ul></ul>
  17. 18. Distribution and Promotion <ul><li>Ideas / brands / reputation can be distributed as they’re promoted </li></ul><ul><li>Promotion v marketspace </li></ul><ul><li>An area to look to your own experience for an example and answer. </li></ul><ul><li>http:// blog.digg.com/?p =74 </li></ul>
  18. 19. Distribution.
  19. 20. Determining the right distribution <ul><li>Mols (1998) outlines a three-step model to determine distribution: </li></ul><ul><ul><li>Ask first </li></ul></ul><ul><ul><li>How can the services be provided? </li></ul></ul><ul><ul><li>What are the costs of the alternative channels? </li></ul></ul>
  20. 21. Marketspace: the place of electronic distribution <ul><li>Marketspaces are an artificial intangible market for information. A marketspace is defined by three parameters: </li></ul><ul><ul><li>Content: the idea or information being traded </li></ul></ul><ul><ul><li>Context: the digital channel </li></ul></ul><ul><ul><li>Infrastructure: the Internet </li></ul></ul>
  21. 22. Marketspace, marketplace and the value chain Source: Weiber, R. & Kollman, T. 1998, ‘Competitive advantages in virtual markets –– perspectives of information-based marketing in cyberspace’, European Journal of Marketing , vol. 32, no. 7/8, pp. 603–15.
  22. 23. Big issues in Internet distribution <ul><li>Channel conflict: </li></ul><ul><ul><li>Channel conflict </li></ul></ul><ul><ul><li>Territory </li></ul></ul><ul><ul><li>International distribution </li></ul></ul><ul><li>Non-store distribution: </li></ul><ul><ul><li>Offering a money-back guarantee </li></ul></ul><ul><ul><li>Offering well-known brands </li></ul></ul><ul><ul><li>Selling at a reduced price </li></ul></ul><ul><li>Contemporary Distribution Issues </li></ul><ul><ul><li>Physical delays in shipping </li></ul></ul><ul><ul><li>Peer2peer networks </li></ul></ul><ul><ul><li>Copyright, patents, legal blocks, DRM and EULA </li></ul></ul><ul><ul><li>Last mile capacity </li></ul></ul>
  23. 24. Technical implications of Internet distribution <ul><li>Technical considerations of distribution channel on the Internet are affected by the type of product and the nature of the distribution channel: </li></ul><ul><ul><li>Non-store information channel </li></ul></ul><ul><ul><li>Non-store reservation channel </li></ul></ul><ul><ul><li>Non-store purchase and distribution channel </li></ul></ul><ul><li>Keeping it real </li></ul><ul><ul><li>Network access </li></ul></ul><ul><ul><li>Server capacity </li></ul></ul><ul><ul><li>compatibility </li></ul></ul>
  24. 25. Compatibility <ul><li>Technical </li></ul><ul><ul><li>Windows </li></ul></ul><ul><ul><ul><li>Which flavour? </li></ul></ul></ul><ul><ul><li>Linux </li></ul></ul><ul><ul><ul><li>Which build? </li></ul></ul></ul><ul><ul><li>Mac </li></ul></ul><ul><ul><ul><li>Which version? </li></ul></ul></ul><ul><li>How new? </li></ul><ul><ul><li>Bleeding edge </li></ul></ul><ul><ul><li>Cutting edge </li></ul></ul><ul><ul><li>The rest of the population </li></ul></ul><ul><li>Rogers’ five features of innovations: </li></ul><ul><ul><li>Relative advantage </li></ul></ul><ul><ul><li>Compatibility </li></ul></ul><ul><ul><li>Complexity </li></ul></ul><ul><ul><li>Trialability </li></ul></ul><ul><ul><li>Observability </li></ul></ul>
  25. 26. Rules for compatibility for e-distribution <ul><li>There are five general rules for establishing compatibility to the widest market: </li></ul><ul><ul><li>Use the widest protocol. </li></ul></ul><ul><ul><li>Macintosh, Linux and Unix users may also like to see products. </li></ul></ul><ul><ul><li>Accept that the bleeding edge/cutting edge is the narrowest part of the user base. </li></ul></ul><ul><ul><li>Use Mols (1998) to establish distribution. </li></ul></ul><ul><ul><li>Provide free software if you must establish unique protocols. </li></ul></ul>
  26. 27. Strategic value – last mile solutions <ul><li>four forms of ‘last mile’ solutions for the movement of physical goods ordered online: </li></ul><ul><ul><li>Unattended home delivery </li></ul></ul><ul><ul><li>Attended home delivery </li></ul></ul><ul><ul><li>Reception boxes </li></ul></ul><ul><ul><li>Shared reception boxes </li></ul></ul><ul><li>Bear box </li></ul><ul><ul><li>www.bearbox.com </li></ul></ul>
  27. 28. Discussion Questions for the Board <ul><li>Define ‘marketspace’ in your own words. </li></ul><ul><li>Give an example of a set of marketspaces that do not have a physical world marketplace counterpart. </li></ul><ul><li>Can a marketplace exist without having a marketspace associated with it? </li></ul>