MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 1 ELECTRONIC AGE MARKETING Internet basics Domains and domain names Economics of e- commerce Desktop publishing in Word

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 2 Internet Basics Access to the Internet Dial-up Broadband For businesses and organizations (e.g., T1, T3) For individuals Cable, DSL, other Hardware Servers Local Remote Routersdirect traffic to and from work stations Large office Home networks

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 3 More Internet Basics Internet design for redundancy Different possible paths between two points Computer down time Some Internet tools World Wide Web USENET FTP (file transfer protocolfor uploading or downloading files) Telnet (access to large mini or mainframe computers with unsophisticated interface)

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 4 More Internet Basics Intranets (within organization) vs. extranets Web addresses Uniform Resource Locator (URL) (e.g., sdsu.edu)will route a user to a numeric location (e.g., ) Protocol preface: (hypertext transfer protocol) Domain names: Prefix (e.g., sdsu); suffix (e.g.,.edu,.com)

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 5 Domain names Uniform Resource Locators (URLs) Standard way to access an Internet location Used to translate meaningful words into numerical address E.g., Protocol ID: Within domain location Domain name Top level domain

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 6 Other examples

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 7 Wireless connections Reach Hot spots vs. broader reach Speed Security

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 8 Economics of Internet Commerce Intense competition for large demand products (large quantity demanded attracts many sellers) Use of large demand products as loss leaders (e.g., Amazon.com bestsellers) Competition will force reduced costsif anyto be passed on to customers Competition makes charging for shipping and handling difficult. This is often more expensive than traditional distribution. Less competition on specialty products Established brick-and-mortar firms have large cash reserves

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 9 Considerations in Evaluating E- Commerce Potential Value-to-bulk ratio Ability of consumer to evaluate quality and fit through online description Extent of customization needed Geographic dispersal of consumers

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 10 How Suitable For Internet Commerce? Are There Differences Among Segments?

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 11 Business Models of e-Commerce Business model design Revenue models Customer/seller models E-auctions

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 12 Business Model Design Business assessment Digitalitality level of a business Profit orientation (profit center business or loss center for spillover benefits) Delivering customer value Four Ps of Value Product Price Place Promotion

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 13 Revenue Models Revenue streams Evaluating streams Strength Stability Cyclicality Resource needs Interrelationships between streams

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 14 Source of Site Income Free access sitesprofit derived through Advertising/commissions Sponsorships Promotion or support of other business line Paid access Complete access for one charge Access to core with extra charge for premium Problems of micro payments) Hybrids One party pays (e.g., job recruitment sites) Two-tiersome free access; charge for premium

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 15 Types of Business (Pure) Models SellerBuyer BusinessConsumer BusinessB2BB2C ConsumerC2BC2C

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 16 Hybrids B-2-B+C (Business to business and consumer) E.g., Staples.com Complex: Amazon.com: B2C and C2C

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 17 B2C Direct sellers Intermediaries Advertising-based businesses Community-based model Fee-based model

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 18 Characteristics of Successful B2C Companies High number of visitors High conversion rates Higher revenue per transaction Higher average gross margin No impact of Number of transactions per consumer Acquisition cost

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 19 Clicks-and-Bricks Model Integration of electronic and traditional commerce Consumers can shop and return both ways Synergies Forms Spin-offs Strategic partnerships Joint ventures Within-company division

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 20 B2B Typical characteristics High volume, value Purchase specificity Team buying/decision making Long term relationships Leasing issues Competitive bidding

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 21 C2C Usually require intermediary (e.g., eBay) Issues of reputation Infrastructure issues (e.g., ability to take credit card payments) Economics of Labor (seller) Cost of search (buyer)

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 22 C2B Rare category Agency coordinating sales of Property (e.g., antiques) Personal skills

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 23 E-Auctions Types English Dutch Speedier May result in lower prices when multiple items are sold Bidding behavior issues Timing of bids Sniping

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 24 Desktop Publishing in Word Desktop publishing software Word, WordPerfect Fancier programs: MS Publisher, InDesign, Adobe Illustrator, Macromedia Fireworks, Adobe Photoshop Possibilities within Word Brochures Posters

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 25 Some Features Columns Tables Imported Created in Word Graphics Fonts

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 26 Tables Use for Control of formattinge.g., course document header Control of placemente.g., graphics Organization of information Merge and split cells

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 27 Posters Paper orientation Portrait (regular) Landscape (rotated 90 degrees) Tables for graphics Fonts Images Document borders Fonts

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 28 Fonts Monospace (e.g., Courier ) vs. proportionally spaced (e.g., Arial, Times Roman ) Font sizes Measured in Points (average length and height of a letter) All fonts with the same size are not equally large! (Times Roman is more efficient) Serif vs. sans-serif Serif fonts have sharp edges (e.g., Times Roman) Easier to read for longer documents less eye strain Sans-serif lack sharp edges Generally look more pleasant Used for headlines

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 29 Some Standard Fonts Courier (not used much in contemporary documents, but has been found effective in direct mail)looks like a typewriter Times Roman default on many programs Arial (Helvetica)common sans-serif font

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 30 Fonts Usually Standard in Windows (But Not Necessarily Macintosh) Comic Sans Letter gothic (monospace) Trebuchet (proportional, hybrid serif/sans- serif) Book Antiqua (proportional, serif) Century gothic (proportional, sans-serif)

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 31 Preserving Formatting Use of standard fonts Testing across Multiple browsers Computer types and configurations Use of invisible tables Use of Adobe Acrobat (PDF) files Good for preserving document formatting while avoiding large task of reformatting May require the users browser to open Adobe Acrobat (resulting in delay)

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 32 Brochures 4 page 5.5x8.5 brochure: Use landscape orientation Reduce right and left margins to 0.5 Make page into two columns Start in column 2 on first page Last page is column 1 of first page Templates Font selection Inserting graphics

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 33 Printing Brochures and Posters Large quantity: File submitted to printing firm Choice of paper Glossiness Thickness Small quantity in-office printing Large posters Laser printing vs. inkjet Inkjet usually provides superior quality Laser is usually cheaper Paper choices Absorbency Thickness Glossiness Quality of print