ELC 310 Day 21

Agenda Questions? Assignment 3 Due Two major assignments Left –C–Case study analysis of an existing case Week after break –C–Creation of a case study Last week of the semester Case Study Proposals Due Nov 23 –L–Less than one page on the company you will be writing a case study on and where you will be getting the research. Exam 3 graded –1–1 A, 2 B’s and 2 C’s String today we will be in the text ebusiness.marketing –T–Today, Nov 16 Chap 1 & 2 –F–Friday, Nov 20 Chap 3 & 4

Case Study Possibilities Marshall Industries Charles Schwab K-mart (or Wal-Mart) Sears GM (or Ford or Chrysler) e-bay Monster. COM

Discussion of Albert Text Explores impact of technology on traditional marketing models First 4 Chapters establish a conceptual framework for e-marketing and introduces analytic tools Chap provide case studies of 8 different companies Chap 13 & 14 explores the future of e-marketing and research methodologies

For next class Read Albert Chapters 1-4 Look at Chaps 6-12 and decide which of these case studies you would like to analyze and present to the class Expect to occupy 20 minutes of class time for your presentation and discussion Rubric for grading of Case study analysis will be passed out next class

Some marketing terms Direct marketing Branding Advertising Telemarketing Customer relations Public relations Channel Stakeholder Marketplace Profiling Market research – Demographics – Target market NPD – New Product development

Marketing Review The 5 P’s of Marketing (sometimes only four!) – Product – Price – Promotion – Placement – Planning

Background Why does e-Marketing exist? Role of Technology – Enabler – Database – Internet

Overview of E-Business Marketing Components of E-Business E-Business Marketing Concept Overview – Process to Create and Deliver Goods, Services, and Ideas – Valuable Exchange Process – Multiple Group Involvement Definition of-eBusiness Marketing Is History Repeating itself? – New Technologies have fast adaptations rates Understanding technology and Technology Personnel – IT Departmental Orientation and Goals

E-Business Definition Five Components – E-Commerce (EC) – Business Intelligence (BI) – Customer Relationship Management (CRM) – Supply Chain Management (SCM) – Enterprise Resource Planning (ERP)

E-Business Components (page 4) E-Commerce Business Intelligence Customer Relationship Management Above the line is the customers’ perspective Below the line is a business perspective Supply Chain Management Enterprise Resource Planning

3 Common Themes of Marketing Process for creating and delivering goods, services and ideas to customers Based on Exchanges that are valuable to both the customer and the company Many groups involved in marketing concept

Marketing Concepts Three common themes – creation and delivery Customer service NPD Fulfillment – value-laden exchanges Price Value Add Market Differentiators – different groups (stakeholders) Integrated marketing communications Value Chain

Marketing Stakeholders Customers and potential customers Employees Investors Suppliers Partners

Mix and match Components – E-Commerce (EC) – Business Intelligence (BI) – Customer Relationship Management (CRM) – Supply Chain Management (SCM) – Enterprise Resource Planning (ERP) Concepts – creation and delivery – value-laden exchanges – different groups (stakeholders) The P’s – Price – Product – Promotion – Placement – Planning

Definition E-Business marketing is a concept and process of adapting the relevant and current technologies to the philosophy of marketing and its management. Growth – One billion people online – 10 million web sites – 80% of traffic goes to 0.4% of websites The paradox – mass-personalization – Consumer desire for privacy Historical perspective – Radio 38 – TV 13 – Internet 5

Is History repeating Itself? Radio in 1899 – Beginning of mass marketing, Branding – 38 years for 50 million households Televisions 1945 – 13 years for 50 million households PC 1960 – 16 years for 50 million households – CRM and database marketing Internet 1994 – 5 years for 50 million households

Role of IT Departments Importance Communication Task Forces/Committees – shared goals Seeks homeostasis Goal displacement

Chapter Two The Marketing Mix Transformation

Overview The Transformation of the Marketing Mix The Internet's Impact on the Marketing Mix Business-to-Consumer Marketplace B2C and Traditional Distribution Business-to-Business Marketplace Ranged Marketing Complexity Theory Fuzzy Logic Elements of Ranged Marketing The Key Role of Change The Role of Ranged Marketing

“Traditional” Marketing Mix Four Ps (McCarthy, 1960s) Four Cs (Schultz, 1990s) – main causes of transformation Database Outside looking in Internet impact on the 4Ps/4Cs – Product >> customer solution – Price >> customer price – Promotion >> communication – Place >> convenience

Marketing Mix E-Business enables transformation 4 Ps to the 4Cs Product Customer Solution Price Customer Cost Promotion Communication Place Convenience Caveat emptor Cave emptorum

Internet enabled outcomes Leverage database marketing technology – Quantitative information Purchase patterns Demographics Psychographics Attitudes, Interest and opinions Targeted promotion Personalization on a Massive scale Distribution

Impact on Services Marketing What is Services Marketing? Four factors impacted – Intangibility – Simultaneity – Heterogeneity – Perishability 4 extra P’s – People – Processes – Physical image – productivity

Internet Business Environments B2B – definition – size/opportunity B2C – definition – size/opportunity C2C – definition – how did the Internet enable this?

Background for Ranged Marketing Complexity Theory (chaos) – Small permutations create massive change – Fractals – Fuzzy Logic – Nothing is perfectly predictable – Lorenz’s Butterfly effect Results – The unexpected occurs – Change is certain – The market is heterogeneous

Ranged Marketing Marketing is a combination of many disciplines Ranged marketing incorporates sociological theory – Increased communication accelerates change Other research – Hoffman and Novak Hoffman and Novak – Organic solidarity Organic solidarity E. Durkheim

Elements of Ranged Marketing Range of……... Use Expertise Target Markets Development Life Adaptation Change

Change/Transformation Successful company example – Volvo – UPS UPS as traditional company – transformation into e-business – – successful? – What was their “formula”?

Words to think about “The future ain’t what it used to be.” – Yogi Berra “It’s not the strongest or most intelligent that survive, but the ones most responsive to change.” – Charles Darwin