1. Marketers and the Internet
1. Who markets online?
2. What are the effects of the Internet?
3. How do marketers respond?

2. A General Overview Constraints and opportunities
Need to understand what consumers are doing
To develop “products” that meet needs
To leverage their interactions (even with third parties) to meet marketing objectives
Need to understand opportunities for business
Implications for marketing action

3. Describing Marketers Three different perspectives #1: A Company Focus
.coms versus other companies
Pure-players
CAMS and BAMs
Online marketing
Selling
Online transaction and delivery
Online transaction and offline delivery
Online referral for offline transaction
Other marketing purposes
Online e-commerce-but-not-really-what-we-would-call-marketing processes
 e-commerce continuum, netcentricity

4. Moving Along the Continuum

5. Online Marketers
#2: A Product Focus
Who’s selling what?

6. Online Marketers #3 A Customer Focus To whom? B2C v. B2B B2B is big
business

7. Marketing: More Than Sales
Creating an opportunity for consumption
Developing the product concept
Guiding product dissemination
Pricing, Promotion, Distribution
Internet affects activity along the demand chain
Opportunities and challenges
The 5 C’s
Things that can’t be controlled
From least controllable to most controllable

8. Environmental Factors and Marketing Adaptivity: 5 C’s
Conditions
e.g., Shifts in regulation and capability
Competition
e.g., Shifts in structure (alliances)
Customers
e.g., Shifts in attitude and in behavior
Channels
e.g., Shifts in structure and in relational power
Company
e.g., Shifts in structure and in function responsibility

9. Adapting to Conditions
Economic
E.g., recession
Social
E.g., “digital divide”
Political
E.g., legislation
Technological
E.g., industry standards, not designed for commercial use

10. Adapting to Customers Ability to get product information
 increased price transparency and quality
Ability to find other sources
Ability to spread information (w-o-m)
Research online, but buy offline
 create loyalty

11. Adapting to Competition
Product Development
Internet time
Information acceleration
Increase in pace of product introductions
Power of Cooperation
Strategic alliances
Strategic networks
 “Co-opetition”
Novel Product Strategies
Same product, different ways to consumer
Trading stocks
Reading newspapers and magazines
Listening to music, watching movies
New types of business models

12. Adapting to Channels New ways to move goods
New channels of distribution
Multichannel strategies (e.g., CAMs)
Channel issues
Disintermediation
Reintermediation
New functional opportunities for business
Take over some channel activities?

13. Adapting the Company Two key effects: organization and culture
Organization effects
Where people work
Telecommuting
Tethered to technology: Laptops at home
Decentralized structures
How people work
Platform approach
Knowledge management
Workflow

14. Adapting the Company, part 2
Company culture: why is it good?
Managing a virtual company
Where’s the culture? Decreased hierarchy…
How do you create culture?
Internet opportunities
Instant messaging
Intranets
Corporate portals (also good for knowledge mgemt)
Internet challenges
abuse (amount, netiquette, dissemination)internalmemos
Web-surfing
 EIM software
Hiring software fitability.com

15. Thriving in the Internet Environment
Effects on business structures
Decentralized processes
Less hierarchical structure
Effects on business performance/processes
Doing more, faster and better (in theory)
“Internet time”
Increased information and communications
Greater process transparency
To consumers
To competition