Marketing in the Digital Age by jizhen1947

VIEWS: 22 PAGES: 28

									Marketing in the
  Digital Age

    Chapter 3
 Road Map: Previewing the
        Concepts
• Identify the major forces shaping the new
  Digital Age.
• 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.

                                          14 - 2
Road Map: Previewing the
       Concepts
• Describe the four major e-commerce
  domains.
• Discuss how companies go about
  conducting e-commerce to profitably
  deliver more value to customers.
• Overview the promise and challenges
  that e-commerce presents for the future.


                                       14 - 3
          Forces Shaping the
             Digital Age
•       Digitalization & Connectivity
        Intranets – connect people within a
         company.
        Extranets – connect a company with
         its suppliers, distributors, and
         outside partners.
        Internet – connects users around
         the world.

                                          14 - 4
          Forces Shaping the
             Digital Age
•       Internet Explosion
        Explosive worldwide growth forms
         the heart of the New Economy.
        Increasing numbers of users each
         month.
        Companies must adopt Internet
         technology or risk being left behind.

                                             14 - 5
          Forces Shaping the
             Digital Age
•       New Types of Intermediaries:
        Direct selling via the Internet
         bypassed existing intermediaries
         (disintermediation).
        “Brick-and-mortar” firms became
         “click-and-mortar” companies.
        As a result, some “click-only”
         companies have failed.

                                            14 - 6
           Forces Shaping the
              Digital Age
•       Customization and Customerization:
        With customization, the company
         custom designs the market offering
         for the customer.

        With customerization, the customer
         designs the market offering and the
         company makes it.

                                               14 - 7
Marketing Strategy in the
      Digital Age
•   Requires a new model for
    marketing strategy and practice.
•   Some suggest that all buying and
    selling will eventually be done
    electronically.
•   Companies need to retain old
    skills and practices but add new
    competencies.

                                       14 - 8
            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
         Extranets connecting with major suppliers
          and distributors

                                                  14 - 9
         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
        e-purchasing (e-procurement)

                                        14 - 10
          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
          goods, services, and information from
          online suppliers.

                                                  14 - 11
     Benefits to Buyers
•   Convenience
•   Buying is easy and private
•   Provides greater product access and
    selection
•   Provides access to comparative
    information
•   Buying is interactive and immediate

                                          14 - 12
     Benefits to Sellers
•   Powerful tool for building
    customer relationships.
•   Can reduce costs.
•   Can increase speed and efficiency.
•   Offers greater flexibility in offers
    and programs.
•   Is a truly global medium.

                                      14 - 13
B2C (Business to Consumer)
•       The online selling of goods and
        services to final consumers.
•       Expected to generate $428 billion in
        2004.
•       There is increasing diversity in buyers.
         This provides increasing opportunities for
          targeting markets.
•       Is customer initiated and controlled.

                                                  14 - 14
B2B (Business to Business)
•   By 2005, more than 500,000 enterprises
    will participate as buyers, sellers, or both.
•   Most major B2B marketers offer product
    information, purchasing, and support
    services online.
•   Open trading exchanges—huge specialty
    e-marketspaces to conduct transactions.
•   More private trading networks being
    developed.


                                                14 - 15
C2C (Consumer to Consumer)
•   Occurs on the Web and includes a
    wide range of products and
    services.
•   Forums: discussion groups located
    on commercial online services.
•   Newsgroups: the Internet version
    of forums.

                                   14 - 16
C2B (Consumer to Business)
•       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 decide whether to accept
          company offers.

                                              14 - 17
    Click-Only Companies
•    E-tailers
•    Search engines and portals
•    Internet service providers
•    Transaction sites
•    Content sites
•    Enabler sites
                                  14 - 18
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 new customers instead
    of building loyalty.
                                    14 - 19
Click-and-Mortar Companies
 •       Most established companies resisted adding
         Web sites because of the potential for
         channel conflict and cannibalization.
 •       Many are now doing better than click-only
         companies.
 •       Reasons:
          Trusted brand names and more resources
          Large customer bases
          More knowledge and experience
          Good relationships with suppliers
          Can offer customers more options

                                                    14 - 20
     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.
•   Generates excitement about the
    company.

                                            14 - 21
    Types of Web Sites
         Marketing Web Site:
•   Engages consumers in an
    interaction that moves them
    closer to a direct purchase.
•   Provides information about the
    products.

                                     14 - 22
        Designing Attractive
             Web Sites
•       The 7 Cs of Effective Web Site Design
         Context
         Content
         Community
         Customization
         Communication
         Connection
         Commerce
                                           14 - 23
Online Ads and Promotion
•       Forms of online advertising & promotion:
         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)
         Interstitials (pop up between changes on Web
          site)
         Content sponsorships (sponsoring special
          content)
         Microsites (limited areas paid for by an external
          company)
         Viral marketing (Internet version of word-of-
          mouth)


                                                         14 - 24
        The Future of Online
            Advertising
•       Web communities:
         Allows members to congregate online
          and exchange views on issues of common
          interest
•       E-mail:
         Use of “enriched” e-mail messages
         Backlash against spam can be problem
         Allow people to opt-out of promotions


                                                  14 - 25
Legal and Ethical Issues
•   Online privacy
•   Online security
•   Internet fraud
•   Segmentation and discrimination
•   Access by vulnerable or
    unauthorized groups

                                      14 - 26
Rest Stop: Reviewing the Concepts

1. Identify the major forces shaping the
   Digital Age.
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-commerce
   domains.

                                         14 - 27
Rest Stop: Reviewing the Concepts

4. Discuss how companies go
   about conducting e-commerce
   to profitably deliver more value
   to customers.
5. Overview the promise and
   challenges that e-commerce
   presents for the future.
                                 14 - 28

								
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