© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Internet Marketing & e-Commerce Ward Hanson Kirthi Kalyanam Requests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENT THOMSON BUSINESS and ECONOMICS 5109 Natorp Boulevard Mason, OH Phone: (800)

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Part Three: Chapter 17 Organizing for Online Marketing “The businessman of the present day must be continually on the jump, the slow express train will not answer his purpose, and the poor merchant has no other way in which to secure a living for his family. He must use the telegraph.” New York businessman W.E. Dodge, 1868

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Internet as Appliance As it becomes ingrained into everyday life, the Internet increasingly functions as an appliance or utility

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Internet as Appliance As it becomes ingrained into everyday life, the Internet increasingly functions as an appliance or utility As an appliance, the Internet is well understood, even expected, and consumer behavior has adapted to it

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Internet as Appliance As it becomes ingrained into everyday life, the Internet increasingly functions as an appliance or utility As an appliance, the Internet is well understood, even expected, and consumer behavior has adapted to it With ubiquity comes new legal issues, organizational demands, higher standards for safety, accessibility

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Internet as Appliance Improving technical performance is less important as a technology becomes an appliance. SOURCE: Adapted from Donald Norman, The Invisible Computer (Cambridge, MA: MIT Press, 1998), 32-33

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing Adopting Internet technologies forces organizational restructuring and investments to meet new challenges of interaction and personalization SOURCE: George Day, “Organizing for Interactivity,” Journal of Interactive Marketing 12, no. 1 (Winter 1998): 47-53

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing Publishing sites maintain simple organization but face challenge of providing timely information to keep pace with consumer expectations

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing SOURCE: ©1998 G.B. Trudeau. Reprinted by permission of UNIVERSAL PRESS SYNDICATE

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing To support dynamic content, greater organizational demands –Importance of creating access policies –Coordinating range of contacts and technologies –Live marketing databases and full- customer databases

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing Creating a dialogue with markets of individual consumers strains most existing organizational structures –The span-of-control problem –The problem of slow response times

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing Solving the span-of-control problem: –Regional organization –Product organization –Customer organization – fast gaining favor with Net marketers

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing Alternative organizational emphasis

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing Solving the problem of slow response –24-hour benchmark for responses to customer –Key considerations in responses Resources devoted Uniqueness of message Appropriateness of message Technology for interaction

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing SOURCE: Purdue University Benchmark Study, November 2004 Slow response in company replies to customer

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing SOURCE: Modified from eGain Corp. Flowchart for automating message responses

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Organizing for Online Marketing Matching technologies and response rates

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Avoiding Legal Pitfalls New marketing technologies open field of emerging case law All marketers working with intellectual property require basic understanding of trademark and copyright laws, accuracy of information and risk of unsolicited communications

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Avoiding Legal Pitfalls Understanding when external materials can be used without encountering copyright issues

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Avoiding Legal Pitfalls Network connections and jurisdiction –For domain names, registration alone does not eliminate trademark issues –Challenges of establishing personal/legal jurisdiction for online entities –Tax rules influence e-commerce, location of physical properties, and encourage digital product delivery

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Avoiding Legal Pitfalls Highly individualized information raises legal implications and questions of accuracy and privacy Key areas for inaccuracy concerns: –Credit reports –Criticism of individuals or companies –Information for critical decision making

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Avoiding Legal Pitfalls Privacy policies alleviate consumer concerns about disclosure Core areas outlined by FTC: –Notice/Awareness –Consent/Choice –Access/Participation –Integrity/Security –Enforcement/Redress

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Avoiding Legal Pitfalls Privacy policies often lack compliance with FTC core areas Risk of legal exposure and loss of consumer trust Model from the TrustE organization, installing of chief privacy officers (CPOs)

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation The Online Road Ahead Assume Internet marketing GPTs will continue rapid pace of development

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation The Online Road Ahead Assume Internet marketing GPTs will continue rapid pace of development Potential issues of cost effectiveness: consumer demand could lag behind engineering capabilities

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation The Online Road Ahead Assume Internet marketing GPTs will continue rapid pace of development Potential issues of cost effectiveness: consumer demand could lag behind engineering capabilities As Internet marketing emerges as primary means of interacting with customers, new determinations navigate problem of machines evolving faster than humans

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation The Online Road Ahead A (modest) glimpse of the future – and a reminder of the difficulty of looking ahead – from Looking Backward, Edward Bellamy’s 1887 novel

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation The Online Road Ahead “The orders are read over, recorded, and sent to be filled, like lightning. … The packages are then delivered by larger tubes to the city districts, and thence distributed to the houses. You may understand how quickly it is all done when I tell you that my order will probably be at home sooner than I could have carried it from here.” Edward Bellamy, Looking Backward, 1887