basic14_ppt.ppt 202KB Sep 05 2010 10:45:52 PM

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Chapter

Fourteen

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Roadmap:

Previewing the Concepts

1. Discuss how the digital age is affecting both consumers and the marketers who serve them.

2. Explain how companies have responded to the Internet and other powerful new technologies with e-business strategies, and how these

strategies have resulted in benefits to both buyers and sellers.

3. Describe the four major e-marketing domains.

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Background

 _{Began selling books; now}

markets many other merchandise lines.

 _{One of the best known}

names on the Web.

 _{Sales have been strong}

but firm did not turn a profit until 2003.

Amazon.com – Online Pioneer

Case Study

Marketing Efforts

 _{Customer-driven: strives to}

design the best customer experience on the Web.

 _{Personalized sign-on pages}

and recommendations,

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Forces Shaping the Digital Age

 _{Digitalization andConnectivity} – Intranets

• connect people within a company.

– Extranets

• connect a company with its suppliers, distributors, and outside partners.

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Forces Shaping the Digital Age

 _{Internet Explosion}

– Explosive worldwide growth forms the heart of the New Economy.

– _{Increasing numbers of users worldwide,}

and broadband users in the U.S.

– Greater numbers of consumers are accessing information on the Internet.

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Marketing Strategy in the

Digital Age

 _{Requires a new model for marketing}

strategy and practice.

 _{Companies need to retain old skills and}

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E-Business in the Digital Age

 _{Involves the use of electronic platforms}

to conduct company business.

– Web sites for selling and customer relations.

– _{Intranets for within-company}

communication.

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E-Commerce in the Digital Age

 _{More specific than e-business.}

 _{Involves buying and selling processes}

supported by electronic means, primarily the Internet.

 _Includes:

– _e-marketing

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E-Marketing in the Digital Age

 _{The marketing side of e-commerce.}

 _{Includes efforts to communicate about,}

promote, and sell products and services over the Internet.

 _{E-purchasing is the buying side of}

e-commerce.

– _{It consists of companies purchasing}

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Benefits to Buyers

 _Convenience.

 _{Buying is easy and private.}

 _{Provides greater product access and}

selection.

 _{Provides access to comparative}

information.

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Benefits to Sellers

 _{Powerful tool for building customer}

relationships.

 _{Can reduce costs.}

 _{Can increase speed and efficiency.}

 _{Offers greater flexibility in offers and}

programs.

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E-Marketing Domains

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Business to Consumer (B2C)

 _{The online selling of goods and}

services to final consumers.

– Expected to generate $316 billion in 2010, or 13% of retail sales.

– _{There is increasing diversity in buyers.}

• This provides increasing opportunities for targeting markets.

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Business to Business (B2B)

 _{B2B sales dwarf B2C sales:}

– B2B e-commerce was nearly $4 trillion in 2003.

– Uses trading networks, auction & barter sites, spot exchanges, online product catalogs, and more.

 _{Most major B2B marketers offer online}

product information, purchasing, and support.  _{Open trading exchanges:}

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Consumer to Consumer (C2C)

 _{Occurs on the Web and includes a wide}

range of products and services.

– Auction sites such as eBay offer

marketplaces to buy or exchange goods. – _{Blogs and forums}_{facilitate information}

interchanges.

• Blog: online journals where people post thoughts on a narrowly defined topic.

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Consumer to Business (C2B)

 _{Consumers can search out sellers,}

view offers, initiate purchases, and give feedback.

– _Example:_{on priceline.com, one can bid for} airline tickets, hotel rooms, etc., and

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Click-Only Companies

 _E-tailers

 _{Search engines and portals}  _{Shopping comparison sites}  _{Internet service providers}  _{Transaction sites}

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Reasons for dot.com Failures

 _{Poor research or planning.}

 _{Relied on spin and hype instead of}

marketing strategies.

 _{Spent too heavily on brand identities.}  _{Devoted too much effort to acquiring}

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Click-and-Mortar Companies

 _{Established firms initially resisted adding}

Web sites because of channel conflict and

cannibalization concerns.

 _{Risk of online competition forced firms to}

become click-and-mortar companies. Most are now doing better than click-only

companies because of:

– Trusted brand names and more resources

– Large customer bases

– More knowledge and experience

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Online Marketing

 _{Creating a Web site}

 _{Placing ads and promotions online}  _{Setting up and participating in Web}

communities

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Types of Web Sites

Corporate Web Site:

 _{Designed to build customer goodwill}

and supplement other sales channels.

– _{Offers information to customers.}

– Builds closer customer relationships.

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Types of Web Sites

Marketing Web Site:

 _{Engages consumers in an interaction}

that moves them closer to a direct

purchase or other marketing outcome.

– _{May include catalogs, shopping tips,}

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Designing Attractive Web Sites

 _{The 7 Cs of Effective Web Site Design:}

– Context

– Content

– Community

– Customization

– Communication

– Connection

– Commerce

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Online Ads

 _{Forms of online advertising:}

– Banner ads:

• Tickers (move across the screen)

• Skyscrapers (tall, skinny ads at the side of a page)

• Rectangles (boxes that are larger than a banner)

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Online Promotion

 _{Forms of online promotion:}

– Content sponsorships (sponsoring special content)

– _{Microsites (limited areas paid for by an}

external company)

– Alliances and affiliate programs (work with firms to promote each other)

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word-The Future of Online Advertising

 _{May grow to 10-15% of media mix for}

low-involvement product categories.

 _{Web communities:}

– Allow members to congregate online and exchange views on issues of interest.

 _E-mail:

– _{Use of “enriched” e-mail messages.}

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E-Commerce Problems and

Challenges

 _{Likely that online marketing will remain}

a technique working with full IMC mix.

 _{Internet profitability remains}

problematic for B2C firms.

 _{Navigation difficulties continue as the}

number of Web sites grows.

 _{Dot.com retailers are facing growing}

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Legal and Ethical Issues

 _{Online privacy}  _{Online security}  _{Internet fraud}

 _{Segmentation and discrimination}

 _{Access by vulnerable or unauthorized}

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Rest Stop:

Reviewing the Concepts

1. Discuss how the digital age is affecting both consumers and the marketers who serve them.

2. Explain how companies have responded to the Internet and other powerful new technologies with e-business strategies, and how these

strategies have resulted in benefits to both buyers and sellers.

3. Describe the four major e-marketing domains.