Copyright © 2005 Pearson Education Inc. Marketing in the Digital Age Chapter 3 PowerPoint slides Express version Instructor name Course name School name Date Principles of Marketing, Sixth Canadian Edition

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.2 Learning Objectives After studying this chapter, you should be able to: –Identify the major forces shaping the new digital age –Explain how companies have responded to the Internet and new technologies with e-business strategies, resulting in benefits for both buyers and sellers –Describe the four major e-commerce domains –Discuss how companies conduct e- commerce to profitably deliver more value to customers –Overview the promise and challenges that e-commerce presents for the future

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.3 Major Forces Shaping the Internet Age Connectivity The explosion of the Internet New types of intermediaries Customization Figure 3.1

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.4 Electronic Business Terms Ebusiness –Using electronic platforms (intranets, extranets, Internet) to conduct business Ecommerce: –Buying and selling processes supported by electronic means –Includes Internet (online) marketing –Includes epurchasing (eprocurement) Emarkets: –Marketspaces instead of marketplaces

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.5 Benefits of E-Marketing To buyers: –Convenience –Easy –Private –Greater product access and selection –Wealth of comparative information –Interactive and immediate –Greater consumer control using permission-based marketing To sellers: –Interactive tool for building customer relationships –Reduced facility and operating costs –Improved cash flow –Increased speed and efficiency –Greater flexibility –Global medium

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.6 Ecommerce Domains B2C ecommerce B2B ecommerce –Open trading networks –Private trading networks C2C ecommerce C2B ecommerce Figure 3.2

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.7 Types of E-Marketers Pure play companies: –Etailers –Search engines –Internet service providers (ISP) –Transaction sites –Portals or content sites Figure 3.3

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.8 Sources of E-Commerce Revenue Product and service sales income Advertising income Sponsorship income Alliance income Membership and subscription income Profile income Transaction commissions and fees Market research and information fees Referral income Table 3.1

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.9 Setting Up an E-Marketing Presence Creating a web site –Corporate web site –Marketing web site Designing attractive web sites: –Context –Content –Community –Customization –Communication –Connection –Commerce Figure 3.4

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.10 Setting Up an E-Marketing Presence Online advertising and promotion: –Banner and ticker advertisements –Interstitials –Skyscrapers –Browser advertisements –Content sponsorship –Microsites Viral marketing Web communities Webcasting Figure 3.4

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.11 Promise and Challenges of Ecommerce Continuing promise of ecommerce: –From a complete revolution in conducting business, to –Just one approach in a fully integrated marketing mix Internet profitability Legal and ethical issues –Online privacy and security –Internet fraud –Segmentation and discrimination –Access by vulnerable or unauthorized groups Canadian federal law Personal Information Protection and Electronic Documents Act (2001): Consumer knowledge and consent Limitations Accuracy Right to access

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 3.12 In Conclusion… The learning objectives for this chapter were: –Identify the major forces shaping the new digital age –Explain how companies have responded to the Internet and new technologies with e-business strategies, resulting in benefits for both buyers and sellers –Describe the four major e-commerce domains –Discuss how companies conduct e- commerce to profitably deliver more value to customers –Overview the promise and challenges that e-commerce presents for the future