1. Chapter 1 Marketing in the Digital Age14
Marketing in the Digital Age

2. Forces Shaping the Digital Age

3. Forces Shaping the Digital Age
Digitalization & Connectivity
Intranets – connect people within a company.
Extranets – connect a company with its suppliers, distributors, and outside partners.
Internet – connects users around the world.
Internet Explosion
Explosive worldwide growth forms the heart of the New Economy.
Increasing numbers of users each month.
Companies must adopt Internet technology or risk being left behind.

4. Forces Shaping the Digital Age
New Types of Intermediaries:
Direct selling via the Internet bypassed existing intermediaries
“Brick-and-mortar” firms became “click-and-mortar” companies.
As a result, some “click-only” companies have failed.

5. Forces Shaping the Digital Age
Customization and Customerization:
With ___________, the company custom designs the market offering for the customer. Levi’s creating jeans for each individual
With customerization, the customer designs the market offering and the company makes it. You creating a pair of Levis’ jeans for yourself

6. Marketing Strategy in the Digital Age
Requires a new model for marketing strategy and practice
Some suggest that all buying and selling will eventually be done electronically
Companies need to retain old skills and practices but add new competencies

7. e-Business, e-Commerce, and e-Marketing in the Internet Age
e-Business Involves the Use of Intranets, Extranets & the Internet to Conduct a Company’s Business
Involves Buying & Selling Processes Supported by Electronic Means
E-Marketing “e-selling” side of e-commerce

8. E-Business in the Digital Age
Involves the use of electronic platforms to conduct company business.
Web sites for selling and customer relations
Extranets connecting with major suppliers and distributors

9. E-Commerce in the Digital Age
More specific than e-business.
Involves buying and selling processes supported by electronic means, primarily the Internet.
Includes:
e-marketing
e-purchasing (e-procurement)

10. E-Marketing in the Digital Age
The marketing side of e-commerce.
Includes efforts to communicate about, promote, and sell products and services over the Internet.
E-purchasing is the buying side of e-commerce.
It consists of companies purchasing goods, services, and information from online suppliers.

11. Benefits to Buyers Provides greater product access and selection
Provides access to comparative information
Buying is interactive and immediate

12. Benefits to Sellers Powerful tool for building customer relationships
Can increase speed and efficiency
Offers greater flexibility in offers and programs
Is a truly global medium

13. E-Marketing Domains

14. B2C (Business to Consumer)
The online selling of goods and services to final consumers.
Expected to generate $428 billion in 2004.
There is increasing diversity in buyers.
This provides increasing opportunities for targeting markets.

15. Who is the Online Customer?
Chapter 1
Who is the Online Customer?
They used to be younger, more affluent, better educated, and more male than the general population; BUT has shifted towards becoming more mainstream.
Other characteristic of net users:
Differ psychographically, in approaches to buying and responses to marketing.
“Word of Web”

16. B2B (Business to Business)
By 2005, more than 500,000 enterprises will participate as buyers, sellers, or both.
Most major B2B marketers offer product information, purchasing, and support services online.
Open trading exchanges—huge specialty e-marketspaces to conduct transactions.
More private trading networks being developed.

17. C2C (Consumer to Consumer)
Occurs on the Web and includes a wide range of products and services.
Forums: discussion groups located on commercial online services.
Newsgroups: the Internet version of forums.
Word of Web: advantages & disadvantages

18. C2B (Consumer to Business)
Consumers can search out sellers, view offers, initiate purchases, and give feedback.

19. Types of e-Marketers

20. Click-Only Companies Types of Sites E-tailers
Chapter 1
Click-Only Companies
E-tailers
Enabler Sites
Search Engines and Portals
Types of Sites
Content Sites
E-tailers: Amazon.com, CDNow
Search Engines & Portals: Yahoo, Excite, Google
ISPs: Juno, AOL
Transactions Sites: auction sites
Content Sites: Newspapers, other databases
Enabler Sites: Provide hardware and software the enable internet communication.
Internet Service Providers
Transaction Sites

21. E-Marketing in Context: Where does e-marketing fit into this picture?
There is Hope After the Trough of Disillusion Source: Adapted from Raskino and Andren of Gartner Research (2001)

22. Reasons for Dot.com Failures
Failure to research or plan
Spin & hype instead of marketing strategies
Spending offline to establish brand identities
Attention on gathering new customers instead of building brand loyalty
Lack of good distribution delivery processes
Prices and margins were often very low

23. Click-and-Mortar Companies
Many resisted adding e-commerce because of potential for channel conflict and cannibalization.
Many are doing better than brick or click-only operations
Trusted brand names & financial resources,
Large customer bases,
Knowledge & experience,
Good relationships with key suppliers,
Ability to offer customers more options,
Buy online & return unwanted merchandise to store.

24. Setting Up for E-Marketing

25. Types of Web Sites Corporate Web Site:
Designed to build customer goodwill and supplement other sales channels.
Offers information to customers.
Builds closer customer relationships.
Generates excitement about the company.
Marketing Web Site:
Engages consumers in an interaction that moves them closer to a direct purchase.
Provides information about the products.

26. Designing Attractive Web Sites
Chapter 1
Designing Attractive Web Sites
Context
Content
Community
Customization
Communication
Connection
Commerce
The 7 Cs of Effective Web Site Design
Create value and excitement
Context: site’s layout and design
Content: text, pictures, sound, and video that the website contains.
Community: the ways that the site enables user-to-user communications
Customization: site’s ability to tailor itself to different users or to allow users to personalize the site.
Communication: The ways the site enables site-to-user, user-to-site, or two-way communication.
Connection: degree that the site is linked to other sites
Commerce: site’s capabilities to enable commercial transaction

27. Online Ads and Promotion
Forms of online advertising & promotion:
Banner ads & tickers (move across the screen)
Skyscrapers (tall, skinny ads at the side of a page)
Rectangles (boxes that are larger than a banner)
Interstitials (pop up between changes on Web site)
Content sponsorships (sponsoring special content)
Microsites (limited areas paid for by an external company)
Viral marketing (Internet version of word-of-mouth)

28. The Future of Online Advertising
Web communities:
Allows members to congregate online and exchange views on issues of common interest
Use of “enriched” messages
Backlash against spam can be problem

29. Promise and Challenge of e-Commerce
Limited exposure and buying
Skewed demographics and psychographics
Chaos and clutter

30. Legal and Ethical Issues
Online privacy
Online security
Internet fraud
Segmentation and discrimination
Access by vulnerable or unauthorized groups