1. ELC 310
Day 19

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

3. 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
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

4. 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
Chap 11
Insurance
SCM
Chap 12
Financial Services
E-commerce and BI

5. The Marketing Mix Transformation
Chapter Two
The Marketing Mix Transformation

6. 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

7. “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

8. 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

9. 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

10. 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

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

12. 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

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

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

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

16. 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

17. Chapter Three
The Value Bubble

18. 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

19. 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

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

21. Figure One Attract (Building Traffic)

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

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

24. Figure Two Engage--Building Loyalty

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

26. Figure Three Retain--Strengthening the Relationship

27. 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

28. Figure Four Learn--Building the Database

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

30. Figure Five Relate--Data-driven Interactions

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

32. 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.