CHAPTER 1 RESOURCES OF ELECTRONIC MARKETING

On-Line Age Narrowcasting Specific product for specific market Listservs On-line messages Electronic funds transfer EDI Video environment WWW Integrating messaging and fax combined

On-Line System Electronic Marketing Any activity that facilitates electronic commerce exchange process Electronic Commerce Satisfying customer and business’ wants and needs through online Integrated marketing Communication(IMC) Coordinates the objectives and strategies of the promotional mix on on-line to enhance each of the element of promotional mix through speed, accuracy, interactivity and benefit to users.

Electronic Marketing Resources Interactive Web sites Shopping Agents Avatars Represents people/objects in virtual reality environment Cyber shopping malls Fax-on-demand information CD-ROM presentations

Classification of the EC field by the nature of transactions B2B B2C C2C C2B Non-business EC Intra-business EC: All internet activities including exchange of goods, services and information

Interdisciplinary Nature of EC Marketing Computer Science Consumer Behavior and Psychology(B2C) Finance Economics MIS Accounting and Auding Management

Importance of Electronic Marketing Better you can serve Better you can understand their needs Speed and accuracy in order fulfillment Added value services Better reputation in competition Marketing research Business-to-business exchanges

Importance of Electronic Marketing (cont.) Speed, accuracy, accessibility, accuracy and competitive advantage Ability to personalize message with product Convenience Internet: computers connected global networked environment Intranet: a corporate network that function with internet technologies Extranet: communication networks that links the intranet of business partner over the internet

Identify Key Target Stakeholders — Whom are you trying to influence? Access Privileges Level of Information resources required Firewall Internet - Prospects - The Press/Media - Financial Community (analysts) - Potential Employees Public Extranet - Existing Customers - Business Partners (Vendors/Suppliers) - Retail Networks - Sales-force(s) Entitled Intranet - Employees Private 9 RappDigital Confidential

e-Branding — Offline vs. Online Brand Expressions Offline The brand is created by the advertiser and expressed to the consumer The medium reveals the brand The advertiser is in control Online The advertiser empowers the consumer with tools to help him/her define an experience that creates the brand The medium creates the brand The consumer is in control

e-Branding — Online Brand Expectations The Web has engendered a set of expectations inherent to the medium: Speed I want it now  If the site is slow, or if the advertiser is slow to respond (e.g. support), it’s a withdrawal from the brand bank Control I’m in charge, NOT the advertiser  Anything that strips me of control is bad; conversely, things that promote my control are good Value I understand and appreciate the efficiencies of the Web (e.g. e-SCM)  I expect offerings on the Web to be cheaper; if they’re not, I’m being ripped off

The Benefits of EC Benefits to Organizations: Expand s the market place to national and international markets Decreases the cost of creating, processing, distributing, storing, and retrieving paper based information Ability to create highly specialized business Allows reduce inventories and overhead by facilitating ‘pull’ type supply-chain management Lower the telecommunication costs Improve image, customer service, compressed cycle and delivery time, eliminate paper, reduced transportation costs and increased flexibility

Benefits of EC (cont.) Benefits to Consumers: Available 24 hours a day Provides more choices to customers Frequently helps to find cheaper product/service Allows quick delivery Provides detailed information in a second Makes it possible to participate in virtual auction Allows customers to interact with others in electronic communities, exchange ideas as well as compare experiences Facilitates competition, which result in substantial discount

Benefits of EC (cont.) Benefits to Society: Allows more people shop at home, less traffic and lower pollution Offer cheaper and affordable prices Offer products to the consumers of third world countries and in the rural regions Facilitates the delivery of health care, education, training, social services at reduced cost

Limitations of EC Technical Limitations: System security, reliability and standards Insufficient telecommunication bandwidth Vendors may need special Web server and other infrastructures in addition to the network server Some EC software might not fit some hardware, or may be incompatible with some operating systems

Limitations of EC Non-technical Limitations: Cost and justification Security and privacy Lack of trust and user resistance Legal issues such as copyright Accessibility to internet may be expensive