MGT301 Principles of Marketing Lecture-42

Summary of Lecture-41

Global Marketing

Global Marketplace

Looking at the global marketing environment Deciding whether to go international Deciding which markets to enter Deciding how to enter the market Deciding on the global marketing program Deciding on the global marketing organization

Think Globally Act Locally

Today’s Topics E-Marketing Internet marketing

e-Marketing

Internet Marketing

Internet was used for the first time in Internet was used for the first time in It began to expand in 1991 with the World Wide Web. It began to expand in 1991 with the World Wide Web. Internet technologies pose managerial implications to business. Internet technologies pose managerial implications to business. Students must learn how technology affects business operations. Students must learn how technology affects business operations. The Birth of the Internet

Digitalization and Connectivity Digitalization and Connectivity –The flow of digital information requires connectivity  Intranets, Extranets, and the Internet The Internet Explosion The Internet Explosion –Key driver of the “new economy” Major Forces Shaping the Digital Age

New Types of Intermediaries New Types of Intermediaries –Brick-and-mortar firms often face disintermediation from click-only competitors –The click-and-mortar business model has been highly successful

The Role of the Internet in Marketing

 The fastest growing communications technology.  Within the first five years, 50 million people were connected.  Capable of interactively sharing information in real time. The Role of the Internet in Marketing

New Tool to Reach Consumer

Internet Postal Service Television Telephone Radio

The Internet Presence Engage in interactive, personalized communications Web Sites On-line Banner Ads On-line Banner Ads Virtual storefronts and inventory systems Easy access to delivery info Easy access to delivery info Lower storage costs Lower storage costs Reduces Inventory Reduces Inventory

Internet Demographics and Trends Factors Influencing On-Line Buying Behaviour Factors Influencing On-Line Buying Behaviour Attitude toward technology Income Motivation to use Technology

Electronic Commerce

Financial Institution consumer retailer / manufacturer internet

Definitions E- Commerce E- Commerce E-Marketing E-Marketing E-Business E-Business

E-Commerce The process of conducting business transactions over electronic networks, mostly the Internet The process of conducting business transactions over electronic networks, mostly the Internet

E-Marketing The process of utilizing Information Technology in the conception, distribution, promotion, and pricing of goods, services, and ideas to create exchanges that satisfy individual and organizational objectives

E-Business The use of Information Technology in all business tasks including production, marketing, accounting, finance, and human resources management The use of Information Technology in all business tasks including production, marketing, accounting, finance, and human resources management

Marketing: Marketing: –Use of 4 “P’s” to meet customer’s needs E-Marketing: E-Marketing: –Supply Chain Management –Use of technology to increase efficiency of marketing –Increases company profitability and adds customer value

1. Power Shift from sellers to buyers 2. Increasing Velocity 3. Death of Distance 4. Global reach 5. Time compression 6. Knowledge management is key 7. Market deconstruction 8. Intellectual capital rule Rules of E-Marketing

6. Knowledge management is key 7. Market deconstruction 8. Intellectual capital rules

Buyer Benefits of E-Commerce Convenience Convenience Easy and private Easy and private Greater product access/selection Greater product access/selection Access to comparative information Access to comparative information Interactive and immediate Interactive and immediate

Seller Benefits of E-Commerce: Relationship building Relationship building Reduced costs Reduced costs Increased speed and efficiency Increased speed and efficiency Flexibility Flexibility Global access, global reach Global access, global reach

marketing Key tool for B2B and B2C marketing Key tool for B2B and B2C marketing Clutter is a problem Clutter is a problem Enriched forms of attempt to break through clutter Enriched forms of attempt to break through clutter

Business-to-Consumer (B2C) Business-to-Consumer (B2C) Basic Forms of Electronic Commerce Basic Forms of Electronic Commerce Business-to-Business (B2B) Business-to-Business (B2B) Basic Forms of Virtual Business

The Virtual Community Bulletin Boards Chat Rooms Newsletters Discussion Lists Types of Virtual Communities Types of Virtual Communities

Internet’s Influence on The Global Village Broadens and enhances access in developing nations Broadens and enhances access in developing nations Allows businesses to “leapfrog” into development Allows businesses to “leapfrog” into development Levels playing field for disadvantaged countries Levels playing field for disadvantaged countries

Key Success Factor for Internet Businesses

Strategies for Web Success 1. Offer Customer Driven Products 1. Offer Customer Driven Products 2. Define the Product 3. Set the Price 4. Distribute the goods

Decision Variables of the Marketing Mix Decision Variables of the Marketing Mix

Decision Variables Organizations moving away from standardized, mass distributed products Customer Service and Relationship building Using technology to provide consumers with “virtual” trial products Pricing Strategies Decision Variables of the Marketing Mix Decision Variables of the Marketing Mix

Internet Marketing Objectives

Internet Marketing Objectives Internet Marketing Objectives Sales Level Repeat Purchase Market Positioning Image Brand Awareness On-Line Market Share Internet Marketing Objectives

On-Line Promotion Banner Advertisements Button Advertisements Interstitial Advertisements Untargeted Marketing Targeted Marketing

Value Speed Global Marketing Implications The Digital World

Catch for Pakistani Business

Use it as a Tool to do Business Use it as a Tool to do Business Increase your Customers Base Increase your Customers Base Increase your Efficiency and Effectiveness Increase your Efficiency and Effectiveness Cost Effective Cost Effective Time Saving Time Saving Open New Venue Open New Venue Be the Part of Global Economy Be the Part of Global Economy

Enough for today...

Summary E- Marketing E- Marketing The birth of the Internet The birth of the Internet The role of the internet in the marketing The role of the internet in the marketing

e-Marketing

The Birth of the Internet

The Role of the Internet in Marketing

Definitions E- Commerce E- Commerce E-Marketing E-Marketing E-Business E-Business

Rules of E-Marketing

Basic Forms of Virtual Business

Business-to-Consumer (B2C) Business-to-Consumer (B2C) Basic Forms of Electronic Commerce Basic Forms of Electronic Commerce Business-to-Business (B2B) Business-to-Business (B2B) Basic Forms of Virtual Business

Decision Variables of the Marketing Mix Decision Variables of the Marketing Mix

Catch for Pakistani Business

Next…. Marketing and Society

MGT301 Principles of Marketing Lecture-42