ELC 310 Day 19

Agenda Questions? Two major assignments Left –C–Case study analysis of an existing case Week after break 10% –C–Creation of a case study Last week of the semester 16% Case Study Proposals Due Nov 29 –L–Less than one page on the company you will be writing a case study on and where you will be getting the research. –B–Brick and mortar company that used a eMarketing strategy Starting today we will be in the text ebusiness.marketing –F–Friday, Nov 20 Chap 2 & 3 –T–Tuesday, Nov 22 Chap 4

Schedule for last days of class November 18 – Albert Chap 2 & 3 November 22 – Albert chap 4 November 29 – Instructor presentation of case study analysis December 2 – Student Case study analysis presentations December 6 – Student Case study analysis presentations December 9 – Student Case study analysis presentations December 13 – Albert Chap 13 & 14 December 16 – Written Case Studies Due – Quiz 4 December 22 in Finals week at 3PM – Case study presentations

Case studies (must pick one by next Tuesday) Chap 5 – Specialty manufacturer – CRM Chap 6 – Steel Industry – ERP Chap 7 – Hardware distributor – SCM Chap 8 – Utilities – BI Chap 9 – Bot-for-Profit – CRM Chap 10 – Consumer Packed Goods – CRM Chap 11 – Insurance – SCM Chap 12 – Financial Services – E-commerce and BI

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 versus in side looking out 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 (can’t touch) – Simultaneity (produced/consumed) – Heterogeneity (different each time) – Perishability (can’t be stored) 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

Chapter Three The Value Bubble

Overview Five Elements of the Value Bubble Applying the Value Bubble Attracting (Building Traffic) Engaging (Building Loyalty) Retaining (Strengthening the Relationship) Learning (Building the Database) Relating (Data-Driven Interactions) Business-to-Business Value Bubble Adaptations

McKinsey Model A model for Marketing On-line Originated in mid-1990s Updated through ongoing research Three opportunities in original model – lower cost of providing services – relationship building – redefine channel intermediation

Five Steps Attract Engage Retain Learn Relate Extension from Learn: GIST (chapter 14) – Gather->Infer->Segment->Track Most companies falter in last 2 steps

Figure One Attract (Building Traffic)

“Formula to Attract” Offline Online PR Buzz Traditional Stores Links Microsegmentation Involvement

Technology Attraction Flash Graphics – dancing baloney Jakob Nielsen’s work – Useability – BI component

Figure Two Engage--Building Loyalty

Engage Strategies Form and Substance BI “One voice” EC--the sale Client side/server side Beginnings of CRM

Figure Three Retain--Strengthening the Relationship

Retaining Strategies Repeat Visits--site is the firm E-Service Quality Model – Purchase – Loyalty – WoM Web features and attributes – e-service quality dimension Core Service Recovery CLV precision Cookies

Figure Four Learn--Building the Database

Learning Strategies Integrated databases – offline and online Log files Clickstreams GIST model – Gather – Infer – Segment – Track

Figure Five Relate--Data-driven Interactions

Relating Strategies Segments of one Privacy (the paradox) Targeted communication – s Competitive edge

Business-to-Business Financial advisors’ study Adoption rate by web site features Different motivation (“buying criteria”) – extrinsic – SCM, ERP leading to CRM – more obvious than B2C Organic solidarity – "...Even where society relies most completely upon the division of labor, it does not become a jumble of juxtaposed atoms, between which it can establish only external, transient contacts. Rather the members are united by ties which extend deeper and far beyond the short moments during which the exchange is made. Each of the functions that they exercise is, in a fixed way, dependent upon others, and with them forms a solidary system." >> Durkheim, Emile The Division of Labor in Society Translated by George Simpson. New York: The Free Press.