JM503 - eMarketing

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JM503 - eMarketing

description

JM503 - eMarketing. The unit will consist of four broad topics: Remix – beyond the marketing mix e-Models – altering the corporate mindset. Strategic marketing applications for the Internet. e-Planning. Overview. Suggested Text - PowerPoint PPT Presentation

Transcript of JM503 - eMarketing

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JM503 - eMarketing

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Overview

• The unit will consist of four broad topics:• Remix – beyond the marketing mix• e-Models – altering the corporate mindset. • Strategic marketing applications for the

Internet.• e-Planning.

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References

Suggested Text

• Because eMarketing and indeed eBusiness is changing so rapidly I have not prescribed a text, but I would recommend that you consider buying as it will be the main text I will be using -

Smith, PR., and Chaffey, D. (2005) eMarketing excellence. The Heart of eBusiness. Oxford: Elsevier Butterworth-Heinemann.

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Additional References• Chaffey, D., Mayer, R., Johnston, K. and Ellis-

Chadwick, F. (2003). Internet Marketing. Essex: Prentice Hall, Financial Times.

• Michael, A, and Salter, B. (2006) Mobile Marketing: Achieving Competitive Advantage through Wireless Technology. Oxford: Elsevier Butterworth-Heinemann.

• Saren, M. (2006) Marketing Graffiti the View from the Street. Oxford: Butterwoth Heinemann.

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The Google story shows:

• Markets always welcome an innovative new product providing customer value.

• Customers trust good brands.

• Well-crafted marketing mix strategies can be effective in helping newcomers enter crowded markets.

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Key questions for corporations:

• How to use information technology profitably ?

• How to understand what technology means for their business strategies?

• How time-tested concepts by marketers can be enhanced by the Internet, databases, wireless mobile devices, and other technologies?

• What’s next after the rapid growth of the Internet and the dot-com bubble has marketers wondering ?

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What is E-Marketing?

– Alternative definition: E-marketing is the result of information technology applied to traditional marketing.

– E-marketing affects traditional marketing in two ways:• Increases efficiency in traditional marketing functions,• The technology of e-marketing transforms many marketing

strategies.

Results: new business models that add customer value and/or increase company profitability.

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What Is E-Business?

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Uneven distribution

• 530 million users connected to the Internet worldwide = 8.5% of the global population,

• Developed nations = 15% of the world’s population = 88% of all Internet users,

• U.S. Internet users = 182 million = 64% of the population,

• Indigenous peoples in remote locations gaining health, legal,

and other advice, or selling native products using the Internet.

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Tough Times

Marketers return to their traditional roots and rely on well-grounded strategy and sound marketing practices.

During the dot-com shakeout from 2000-2002, there was much industry consolidation:

– Some firms, such as Levi Strauss, stopped selling online = not efficient + created channel conflict.

– Other firms merged, E.g. e-business firm took over a traditional firm =

AOL purchased Time-Warner.

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‘e-marketing is not about building a web site, but building a web business….harmonising the power of customers’. Siegel (2000)

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Web Sites

• http://news.zdnet.com• http://www.revolutionmagazine.com/• http://www.wired.com/• http://www.clickz.com/• http://www.brandrepublic.com/• http://www.redherring.com/• http://www.editorandpublisher.com/eandp/

index.jsp

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• Dilbert• http://www.dilbert.com/• My space• http://news.zdnet.com/2100-9588_22-

6097525.html• http://education.zdnet.com/?p=288

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Key environmental factors affecting e-marketing

1. Legal,

2. Technological

3. Market-related factors

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Legal Factors

Current and pending legislation can greatly influence e-marketing strategies:

• Privacy: Difficult to legislate + Critical because consumers yield personal information over the Internet

Opt-out e-mail: when users must uncheck a Web page box to avoid being put on a company’s e-mail list,

• Difficult for governments to balance freedom of expression against consumer needs,

• New technology brings new opportunities for fraud: enforcement is difficult in a networked world.

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Technology

• Technological developments influence:- The composition of Internet audiences,- The quality of material that can be delivered to

them.

• E-marketing is evolving through software advances: Technologies can target consumers according to their online behavior to give a firm a distinct competitive advantage.

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Technology

• Technology lowers costs: Many firms have saved money on staff and paperwork via electronic order processing, billing, and e-mail.

• Technology requires costly investments: - Web page development costs millions of dollars, - E-commerce operations require expensive hardware and

software,- New technologies continue to emerge, which make current

investments obsolete, - Putting technology to use entails a steep learning curve.

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What is the Internet?

• It’s Bigger Than the InternetElectronic marketing reaches far beyond the Web:

– Many e-marketing technologies exist = Customer relationship management, supply chain

management, and electronic data interchange arrangements predating the Web,

– Non-Web Internet services such as e-mail and newsgroups

= Effective avenues for marketing.

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• The Internet holds more than one Web:– The Web that most users access from PCs,

– Subsets of the Web with content specially formatted for the unique display properties:

• Web TV, • Personal digital assistants, • Cell phones, • Text-only browsers.

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• Offline electronic data-collection devices such as bar code scanners.

• Portion of the Web containing high-bandwidth content for users who have either cable modems or digital subscriber loop (DSL) connections.

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Internet Properties and Marketing Implications

Internet technologies have changed traditional marketing in a number of critical ways:

Power shift from sellers to buyers, Death of distance, Time compression, Knowledge management is key, Interdisciplinary focus, Intellectual capital rules.

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Revenge of the Consumer

• The rebellion started with television channel surfing using the remote control. Consumers did not seem to appreciate that commercials pay for broadcast TV programs.

• 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.

• Consumers are more demanding and more sophisticated, and marketers will have to become better at delivering customer value.

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Consumer Needs

What do customers want in the information economy?

• Privacy: Customers want marketers to keep their data confidential + don’t want to be bothered by sales calls at home during dinner,

• To safeguard children from objectionable sites,

• Want marketers to ask permission before sending commercial e-mail messages,

• Want e-commerce to provide convenience, self-service, speed, good customer service, personal attention, and value.

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Consumer Needs

Fortunately, e-marketing can meet all these needs:

• With mass customization individuals can contact firms over the Internet and receive responses tailored to their needs,

• Business can also customize and personalize products and communications to strengthen long-term relationships with customers.

E.g. Amazon.com presents personalized Web pages to users

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What’s Next?

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Review Questions

1.Define e-business and e-marketing.

2.What are performance metrics and why are they important?

3.What are some of the key legal issues that affect e-marketing?

4.How does technology both raise and lower costs for companies?

5.As a technology, how does the Internet compare with the telephone?

6.What are some of the marketing implications of Internet technologies?

7.What are the three main markets of e-business, and how do they differ?

8.In the context of e-marketing, what does “revenge of the consumer” mean?

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By next week

• Build a wiki page – see ewiki• Post answers to review questions on your wiki

page and also bring to the tutorial