e-Marketing (eBiz/Mktg 543) Web address: www.arvind.info A Quick Recap Arvind Rangaswamy Web address: www.arvind.info email: arvindr@psu.edu December 5, 2016

Recap of Contexts and Cases We Covered Digital products (Demand Media, New York Times, Bank of America?) and Non-digital products (e.g., Denver Museum, Dove, Apple, Nike). Retail (Sephora, Zulily), Packaged goods (Dove), Services (Bank of America, Airbnb), Publishing (Demand Media, NYT), and Sports and Entertainment (MLB, Nike). New business models (Demand Media, Airbnb, Amazon, Google, Facebook)

The New Strategic Context for Marketing Yesterday’s Business Leading Businesses Today Technology as a tool Seller-centric markets Value from physical assets Decreasing returns to scale Market share Firm-centric marketing strategies Technology as a transformer Customer-centric markets Value from knowledge assets Increasing returns to scale and scope Strategic control (Network-centric (connected and collaborative) marketing strategies

Some Takeaway Questions Should technology be an enabler or a driver of our business model? (The answer depends on whether you are primarily a digital or non-digital business. The answer also depends on developing a good understanding of the role of digital, social, and mobile technologies in changing customer behaviors and competitive responses). How should we use digital/mobile/social (DMS) technologies to create value for our stakeholders, especially value they cannot get offline? (You need a good understanding of how these technologies are changing your stakeholders’ expectations and behaviors, and how you could meet or exceed those expectations). How should we extract value for our shareholders? (You need a good understanding of the impact of DMS technologies on business performance, especially on the topline and the bottom line). How do we deploy online marketing to enhance one or more of the following? (1) marketing productivity, (2) customer engagement/ responsiveness, (3) brand or product differentiation, and (4) innovative offerings.

Some Takeaway Questions How do we innovate on our business model using DMS technologies? (i.e., how do we build enduring advantages from these technologies?). How do we ensure continuous engagement with our customers using digital technologies? How should we help them through their decision journeys? How should we use DMS technologies to become a more real-time business? (particularly important to tie organizational data to drive actions). How do we get to know our customers, without “knowing” them? (i.e., without knowing their specific identity?) How do we increase customers’ trust, enhance perceived security and privacy, and facilitate/simplify choice in DMS?

Some Takeaway Questions How should we manage the “infrastructure risk” dealing with prominent infrastructure providers that operate “winner take all” platforms? (i.e. how do we hedge? how do we create robust strategies that work across infrastructure?) How do we become an organization that has on-going experiments in the DMS space? How do we become a more connected and collaborative organization? What organizational structures and processes do we need to be most effective in incorporating DMS technologies?