Marketing in the Digital Age 14. 14-2 Forces Shaping the Digital Age

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    26-Dec-2015

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  • Slide 1
  • Marketing in the Digital Age 14
  • Slide 2
  • 14-2 Forces Shaping the Digital Age
  • Slide 3
  • 14-3 Forces Shaping the Digital Age Digitalization & Connectivity 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. Internet Explosion 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.
  • Slide 4
  • 14-4 Forces Shaping the Digital Age New Types of Intermediaries: New Types of Intermediaries: Direct selling via the Internet bypassed existing intermediaries Brick-and-mortar firms became click-and- mortar companies. As a result, some click-only companies have failed.
  • Slide 5
  • 14-5 Forces Shaping the Digital Age Customization and Customerization: Customization and Customerization: With ___________, the company custom designs the market offering for the customer. Levis creating jeans for each individual With customerization, the customer designs the market offering and the company makes it. You creating a pair of Levis jeans for yourself
  • Slide 6
  • 14-6 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
  • Slide 7
  • 14-7 e-Business, e-Commerce, and e-Marketing in the Internet Age e-Business Involves the Use of Intranets, Extranets & the Internet to Conduct a Companys Business Involves Buying & Selling Processes Supported by Electronic Means E-Marketing e-selling side of e-commerce
  • Slide 8
  • 14-8 E-Business in the Digital Age Involves the use of electronic platforms to conduct company business. Involves the use of electronic platforms to conduct company business. Web sites for selling and customer relations Extranets connecting with major suppliers and distributors
  • Slide 9
  • 14-9 E-Commerce in the Digital Age More specific than e-business. More specific than e-business. Involves buying and selling processes supported by electronic means, primarily the Internet. Involves buying and selling processes supported by electronic means, primarily the Internet. Includes: Includes: e-marketing e-purchasing (e-procurement)
  • Slide 10
  • 14-10 E-Marketing in the Digital Age The marketing side of e-commerce. The marketing side of e-commerce. Includes efforts to communicate about, promote, and sell products and services over the Internet. Includes efforts to communicate about, promote, and sell products and services over the Internet. E-purchasing is the buying side of e- commerce. E-purchasing is the buying side of e- commerce. It consists of companies purchasing goods, services, and information from online suppliers.
  • Slide 11
  • 14-11 Benefits to Buyers Provides greater product access and selection Provides access to comparative information Buying is interactive and immediate
  • Slide 12
  • 14-12 Benefits to Sellers Powerful tool for building customer relationships Can increase speed and efficiency Offers greater flexibility in offers and programs Is a truly global medium
  • Slide 13
  • 14-13 E-Marketing Domains
  • Slide 14
  • 14-14 B2C (Business to Consumer) The online selling of goods and services to final consumers. The online selling of goods and services to final consumers. Expected to generate $428 billion in 2004. Expected to generate $428 billion in 2004. There is increasing diversity in buyers. There is increasing diversity in buyers. This provides increasing opportunities for targeting markets.
  • Slide 15
  • 14-15 Who is the Online Customer? They used to be younger, more affluent, better educated, and more male than the general population; BUT has shifted towards becoming more mainstream. They used to be younger, more affluent, better educated, and more male than the general population; BUT has shifted towards becoming more mainstream. Other characteristic of net users: Other characteristic of net users: Differ psychographically, in approaches to buying and responses to marketing. Word of Web
  • Slide 16
  • 14-16 B2B (Business to Business) By 2005, more than 500,000 enterprises will participate as buyers, sellers, or both. 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. Most major B2B marketers offer product information, purchasing, and support services online. Open trading exchangeshuge specialty e-marketspaces to conduct transactions. Open trading exchangeshuge specialty e-marketspaces to conduct transactions. More private trading networks being developed. More private trading networks being developed.
  • Slide 17
  • 14-17 C2C (Consumer to Consumer) Occurs on the Web and includes a wide range of products and services. Occurs on the Web and includes a wide range of products and services. Forums: discussion groups located on commercial online services. Forums: discussion groups located on commercial online services. Newsgroups: the Internet version of forums. Newsgroups: the Internet version of forums. Word of Web: advantages & disadvantages Word of Web: advantages & disadvantages
  • Slide 18
  • 14-18 C2B (Consumer to Business) Consumers can search out sellers, view offers, initiate purchases, and give feedback. Consumers can search out sellers, view offers, initiate purchases, and give feedback.
  • Slide 19
  • 14-19 Types of e-Marketers
  • Slide 20
  • 14-20 Click-Only Companies E-tailers Search Engines and Portals Internet Service Providers Transaction Sites Content Sites Enabler Sites Types of Sites
  • Slide 21
  • 14-21 There is Hope After the Trough of Disillusion Source: Adapted from Raskino and Andren of Gartner Research (2001) E-Marketing in Context: Where does e-marketing fit into this picture?
  • Slide 22
  • 14-22 Reasons for Dot.com Failures Prices and margins were often very low Prices and margins were often very low Lack of good distribution delivery processes Lack of good distribution delivery processes Attention on gathering new customers instead of building brand loyalty Attention on gathering new customers instead of building brand loyalty Spending offline to establish brand identities Spending offline to establish brand identities Spin & hype instead of marketing strategies Spin & hype instead of marketing strategies Failure to research or plan Failure to research or plan
  • Slide 23
  • 14-23 Click-and-Mortar Companies Many resisted adding e-commerce because of potential for channel conflict and cannibalization. Many resisted adding e-commerce because of potential for channel conflict and cannibalization. Many are doing better than brick or click-only operations Many are doing better than brick or click-only operations Trusted brand names & financial resources, Large customer bases, Knowledge & experience, Good relationships with key suppliers, Ability to offer customers more options, Buy online & return unwanted merchandise to store.
  • Slide 24
  • 14-24 Setting Up for E-Marketing
  • Slide 25
  • 14-25 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. Marketing Web Site: Engages consumers in an interaction that moves them closer to a direct purchase. Provides information about the products.
  • Slide 26
  • 14-26 Designing Attractive Web Sites The 7 Cs of Effective Web Site Design The 7 Cs of Effective Web Site Design Create value and excitement Context Content Community Customization Communication Connection Commerce
  • Slide 27
  • 14-27 Online Ads and Promotion Forms of online advertising & 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)
  • Slide 28
  • 14-28 The Future of Online Advertising Web communities: Web communities: Allows members to congregate online and exchange views on issues of common interest E-mail: E-mail: Use of enriched e-mail messages Backlash against spam can be problem
  • Slide 29
  • 14-29 Promise and Challenge of e- Commerce Limited exposure and buying Limited exposure and buying Skewed demographics and psychographics Skewed demographics and psychographics Chaos and clutter Chaos and clutter
  • Slide 30
  • 14-30 Legal and Ethical Issues Online privacy Online privacy Online security Online security Internet fraud Internet fraud Segmentation and discrimination Segmentation and discrimination Access by vulnerable