Marketing of High-Technology Products and Innovations Chapter 11: E-Business, E-Commerce and the Internet.

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Marketing of High-Technology Products and Innovations Chapter 11: E-Business, E-Commerce and the Internet

© Mohr, Sengupta, Slater 2005 Chapter Overview Lessons from the Dot Com Boom and Bust Effective Website Design and Management Consumer Behavior and the Internet E-business and Organizational (Business) Behavior Realizing the Internet’s Full Potential

© Mohr, Sengupta, Slater 2005 Definitions E-business: the application of Internet technologies to streamline business processes E-commerce: the subset of E-business activities that enables and supports customers to do online transactions

© Mohr, Sengupta, Slater 2005 History of the Internet

© Mohr, Sengupta, Slater 2005 Lessons from the Dot Com Bust - Startups Dot Com founders lacked business experience Websites lacked value proposition for users Lack of vision and strategy Overspent on customer acquisition Intense competition

© Mohr, Sengupta, Slater 2005 Lessons from the Dot Com Bust - Venture Capitalists Inadequate due diligence on startups Imitated competitors Unfamiliar with consumer marketing Understaffed, spread too thin Micro-managed startups

© Mohr, Sengupta, Slater 2005 Lessons from the Dot Com Bust - Competition Reactive, venture-funded startups Low entry barriers, overcapacity Lack of differentiation among Websites Formidable competition from traditional businesses, bricks-and-clicks

© Mohr, Sengupta, Slater 2005 Lessons from the Dot Com Bust - Overall Every E-business needs a solid foundation of business strategy Business model or business plan Capitalize on unique characteristics of online environment Lower communication cost

© Mohr, Sengupta, Slater 2005 Framework for Online Business Strategy

© Mohr, Sengupta, Slater 2005 Online Business Models Portals Market makers Seller storefronts E-tailers E-procurement

© Mohr, Sengupta, Slater 2005 Effective Web Site Design*

© Mohr, Sengupta, Slater 2005 Website Management Build Site Traffic Network effects Scale economies Retention rates Manage Online Customer Relationships

© Mohr, Sengupta, Slater 2005 Consumer Behavior and the Internet Inhibitors Not compatible with consumer behavior Access to technology Spam Viruses, hackers, and fraud Concerns about privacy Facilitators Empowerment (via access to information and transaction cost efficiencies) Bricks-and-Clicks channel Capability to join online communities Peer-to-peer commuting Broadband technologies Wireless technologies

© Mohr, Sengupta, Slater 2005 E-Business Organizational Behavior

© Mohr, Sengupta, Slater 2005 Realizing the Internet’s Full Potential New Devices for Access Diffusion of Broadband Semantic Web Overcoming Other Barriers: Quality/reliability Privacy Sociocultural/legal questions Internet taxes