E-markets 2000 Craig Lizotte. Overview What is e-marketing The use of information technology in the processes of creating, communication, and delivering.
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Overview What is e-marketing The use of information technology in the processes of creating, communication, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders. (result of information technology applied to traditional marketing.)
History As new technologies emerged in the early 90 there was a seen potential to capture new emerging markets on the web. E-markets peaked in 1999-2000 then dropped into a recession slowly recovering.
Goals and strategy Market procurement was the ultimate goal due to lack of finances some companies would have a difficult time to penetrate the market. Some competitors joined forces to synergistically build a new market, this wasn’t feasible to some companies since 80 year old competitors didn’t want to team up for the short term. Which made it Winner takes all.
How does e-marketing effect traditional marketing Increases efficiency and effectiveness in traditional marketing functions. Technology of e-marketing transforms many marketing strategies resulting in new business models.
Bleeding edge Technology New emerging technology means that the waters have not been tested. Sellers must Adapt to the rapid changing environments. They must evolve to survive until it reaches and equilibrium. Strategy is a means to obtain a particular goal and identify your target customer and market to them as needed keeping in mind the strategy of your competition and staying ahead of them. Even if in the short term it hurts your business it will pay off in later off. (winner takes all.)
How the internet changed marketing Reach to larger customer base flexibility and ease of use PersonalizationInteractivity Asynchronous communication
Market Segmentation Geographic Location LocationDemographics Age Age Income Income Gender Gender Education Education Ethnicity EthnicityPsychographics Activities Activities Interest Interest Opinions Opinions Personality Personality Values ValuesBehavior Benefits sought Usage Brand loyalty User status
Value Bubble In order to create a market there must be a demand. AttractEngageRetainingLearnRelating advertisers can Attract people to their site to engage and retain them into online communities. ex: Such as youtube, myspace, e-mail sites.
Competitive Risks Monopoistic – large seller to buy ratio Oligopolistic – few sellers many buyers any decisions one seller makes has an effect on the price of the other sellers. Fear that e-markets would commoditize.
Primary Stake Holders Employees Business customers in the supply chain suppliers Lateral partners Investors Law makers Financial institution
Frame work Efficient Commerce Hub Dynamic marketplaces Neutral Exchange Neutral Exchange Buyer Advocate Buyer Advocate Seller Advocate Seller Advocate Content and Community Portal
Objectives identify goals for e-market strategy. Tier 2 Offer product Offer product Value (price) Value (price) Distribution (place) Distribution (place) Communication (promotion) Communication (promotion)CRM/PRMImplementationBudgetEvaluation
Evolution form ERP to E-Markets ERP Core Common intracompany systems Common intracompany systems Internal efficiencies, lower cost Internal efficiencies, lower cost Real-time Data access improves service to customers Real-time Data access improves service to customers Extended enterprise (extranets and Web storefronts) One-to-many links between company and trading partners One-to-many links between company and trading partners Reduced costs and time to market due to limited information sharing and collaboration Reduced costs and time to market due to limited information sharing and collaborationE-Markets Many to many communication Many to many communication Product, process, and availability transparency Product, process, and availability transparency New pricing and sales models New pricing and sales models Automation of business processes Automation of business processes Enhanced data exchange leading to collaboration Enhanced data exchange leading to collaboration
Benefits consumer Benefits24/7 Find any thing you want Save travel expense Convenient Compare prices Weakness Can’t try it before you buy it shipping time Trust in seller
Seller Benefits Out sourcing Greater customer reach Reduced store store inventory cost Reduced inventory to pay overhead Ability to reach global markets If out of stock can find another suppler or can sell their surplus inventory Weakness Gaining market share Risk Staying competitive Bigger market = more competition. Competition is a few clicks away which gave the buyer more power.
Industry and market discussion In 1999 there were15 countries connected to the internet. Number of people on the web where 284 million users. 75,000,000 WebPages. Since this industry has been around for 10 years it is new which can allow it to move in any direction.
Perspectives Technology infrastructures XML XML
Internet as technology allowed Greater reach flexibility and ease of use personalizationinteractivity asynchronous communication
DSIR The value of the hub increase with the number or users connected to it. S x B S = connected suppliers R = connected Buyers = S x B potential trading relationships.
competitive risks Monopoistic – large seller to buy ratio Oligopolistic – few sellers many buyers any decisions one seller makes has an effect on the price of the other sellers.
Missed opportunities Companies who didn’t invest in internet because they fear commoditization.
Problems Predicted that by 2004 5 mega exchanges would dominate most e-marketing Chick and egg concept Ineffective efforts to set standards XML had many dialects standards were needed. Legitimate and qualified suppliers Internet users are becoming indifferent to banner adds, popup adds and spam.
Concerns with privacy Used to better target customers. Cookies Data mining Identity theft Surveys Trust in online exchange