Presentation on theme: "JM503 - eMarketing. Overview The unit will consist of four broad topics: Remix – beyond the marketing mix e-Models – altering the corporate mindset. Strategic."— Presentation transcript:
JM503 - eMarketing
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.
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.
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.
The Google story shows:Google 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.
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? Whats next after the rapid growth of the Internet and the dot-com bubble has marketers wondering ?
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.
What Is E-Business?
Uneven distribution 530 million users connected to the Internet worldwide = 8.5% of the global population, Developed nations = 15% of the worlds 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.
Tough Times Marketers return to their traditional roots and rely on well-grounded strategy and sound marketing practices. During the dot-com shakeout from , 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.
e-marketing is not about building a web site, but building a web business….harmonising the power of customers. Siegel (2000)
Web Sites x.jsphttp://www.editorandpublisher.com/eandp/inde x.jsp
Dilbert My space htmlhttp://news.zdnet.com/ _ html
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 when users must uncheck a Web page box to avoid being put on a companys 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.
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.
Technology Technology lowers costs: Many firms have saved money on staff and paperwork via electronic order processing, billing, and . 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.
What is the Internet? Its Bigger Than the Internet Electronic 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 and newsgroups = Effective avenues for marketing.
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.
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.
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.
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.
Consumer Needs What do customers want in the information economy? Privacy: Customers want marketers to keep their data confidential + dont 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 messages, Want e-commerce to provide convenience, self-service, speed, good customer service, personal attention, and value.
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 usersAmazon.com
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?
By next week Build a wiki page – see ewikiewiki Post answers to review questions on your wiki page and also bring to the tutorial