1. Chapter 3: E-Business Communication
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

2. LEARNING OBJECTIVES (1)
List the audiences with whom an e-business would need to communicate.
Compare and contrast a one-to-many and many-to-many communication model.
Explain how the communication process works.
Describe the role involvement plays in Web site design.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

3. LEARNING OBJECTIVES (2)
List the various types of e-business communication platforms.
Recommend a strategy for developing an marketing campaign.
Conceive an integrated internal communication system for a business.
Specify the overall economic welfare considerations related to the use of e-business communication platforms
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

4. Case 3.1: In The Web Driving Seat
Thinking Strategically
Visit the BMW Web site (
Determine if the site is designed just for current BMW owners or if it is targeting potential owners as well.
List the types of e-business communication platforms used by BMW.
How does BMW develop and maintain relationships using these platforms?
Decide if this site appeals to individuals with high or low levels of automotive involvement.
Visit a Web site for another automobile manufacturer.
Determine if that site is designed to appeal to the same individuals as the BMW site.
Specify why a potential customer or owner would return to this site.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

5. The Internet as a Communication Medium
The Internet is used to communicate to constituencies or audiences both external and internal to the e-business.
External audiences include customers, stockholders, the general public, and other specifically targeted audiences.
Internal audiences can include both employees and suppliers.
Integrated marketing communication: Uses a variety of communication technologies to reach organizational goals.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

6. Hypermedia
Hypermedia allow companies to deliver targeted messages to specific audiences.
Hypermedia environments are distributed network that allow for hyperlinks and nonlinear search and retrieval processes to collect information.
Examples: World Wide Web, interactive television, interactive Web based cellular telephones, and other portable devices.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

7. Linear Communication
Traditional media often follow a one-to-many communication model where a single promotion, such as a print ad or television commercial, is sent by one source and seen by many without the opportunity for immediate feedback.
Linear communication follows a scripted flow.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

8. Non-Linear Communication
Interactivity and hyperlinks allow for a type of two-way communication between the e-business and its audience.
Non-linear communication allows for a free flow and exchange of information.
Most conversations individuals have with others are non-linear. Good sales presentations are free flows of communication.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

9. Figure 3.1: Hypermedia Connections to Multiple Pages
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

10. Figure 3.2: The Communication System
SENDER
Encode
MESSAGE
Media
Decode
TARGETED SEGMENT
NOISE
NOISE
FEEDBACK
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

11. Many-to-Many Model (1)
The many-to-many model places the hypermedia in the center of the communication process.
Hypermedia become a meeting place where anyone can communicate with anyone else.
Both firms and customers can obtain and deliver content.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

12. Typology Of Interactions
Consumer-to-consumer (C-to-C)
(Internet based)
Business-to-consumer (B-to-C)
Consumer-to-business (C-to-B)
Business-to-Employee (B-to-E)
(Intranet based)
Employee -to-Employee (E-to-E)
Business-to-business (B-to-B)
(Extranet based)
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

13. Figure 3.3: Many-to-Many Model
Firm
Customer
Firm
Customer
E-Business Communication Platforms
(Hypermedia)
Customer
Employee
Employee
Customer
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

14. Table 3.1: E-Business Communication Platforms
Icon
Description
Web page
An HTML based information document.
Text
A text based computer-to-computer messaging system.
HTML
A HTML based computer-to-computer messaging system designed to look and work like a Web page. HTML based is allowing for the growth of rich media , or the inclusion of multimedia.
Chat
A chat online involves a number of individuals who leave messages for others to see. These can be placed in a repository or chat room for viewing at later times or could be “live,” with individuals writing to others in real time.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

15. Table 3.1: E-Business Communication Platforms
Icon
Description
Discussion Group (Forum)
Allows individuals to add to an initial message with successive messages. Newsgroup users add to a thread, or single conversation by indicating a response to the prior message. Messages are available for others to read and are indented under topic headings:
Initial Post
First response
Second response, etc.
Instant Message
The process of send messages instantaneously from individual to individual through land line based or wireless devices.
Rich Media
Rich media refers to the use of Internet technology that adds more than just text, graphics, or sound alone.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

16. Hypermedia Communication Goals
A Web site can provide a little or a great depth of information for a site visitor.
A single site can be designed for goal-directed buyers as well as for those who are net surfing and are looking only to experience the site.
The Web site can be designed to allow links to other individuals who share the same interests.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

17. High Involvement (1)
Individuals with high involvement for a product or product category are:
likely to see a topic as interesting or important
attend to information more
are more likely to comprehend complex messages
may be willing to spend more time with a Web site.
Involvement levels of individuals can be high when they are goal directed, such as attempting to gather information to make a purchase.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

18. High Involvement (2)
Individuals can also have high enduring involvement with products or product categories, and engage in net surfing to obtain high levels of interactivity with sites.
Enduring involvement exists when an individual has a high level interest in a topic over and extended time period.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

19. From Public Relations to Supporting Relationships
Brochure sites are designed as an advertising or public relations tool.
May contain the same information as a business’ print material.
These sites are designed to make visitors aware of and informed about a business's image or products.
This can be seen as a simple extension of traditional media campaigns.
Brochure sites should be designed to enhance the overall promotional campaign.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

20. The Public Face of a Business
For non-brick and mortar pure-play Internet businesses, the Web page may be the only chance a customer has to interact with the business.
The Web page must project and protect the image of the company.
Protecting a company's image is a concern on the Internet.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

21. Web Sites and Company Image
Some companies that have registered domain names to prevent attack include:
Charles Schwab: !#%*schwab.com and schwab!#%*.com.
BellAtlantic: Bigyellow!#%*.com
Chase Manhattan Bank: Chase!#%*.com
Cox Communications Inc.: Cox!#%*.com
Vail Resorts: vailresorts!#%*.com
Volvo Cars of North America: volvo!#%*.com
Playboy Enterprises: Playboy!#%*.com
!#%* represents a deleted offending word
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

22. Relationship Sites
Relationship sites target individuals who may have higher levels of information involvement.
Sites can designed for individuals with high levels of enduring involvement.
They often contain games, chat groups, or other interactive components to maintain relationships with customers.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

23. Case 3.1 Banking on a Relationship
Thinking Strategically:
Describe how Wells Fargo develops and maintains relationships with customers.
Speculate on the future of a wireless as a banking tool.
Describe the advantages that individuals could gain by wireless banking.
Justify the use of ATMs for broadband Internet delivery.
Speculate on how this could make a transition to other broadband devices for individuals.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

24. Communicating Through Extranets and Internets
Extranets and Intranets use the common IP interface and have the same communication considerations as Internet based Web communication.
Intranets use browsers, servers, and Internet protocols, but are not open to unauthorized users.
Bandwidth inside organizations is often higher than home users allowing for the potential for applications such as voice, video, and conferencing online.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

25. Marketing
marketing allows an e-business to direct messages to specific market segments or to customize messages for individuals, much the same way as direct mail.
is the most common e-business communication platform.
Targeted is one of the most effective hypermedia communication platforms.
Targeted allows firms to directly contact individuals.
Targeted works best with individuals who have already given their permission to receive messages.
Permission marketing is where the customer ops-in, or signs in at a Web site and agrees to receive based direct marketing.
Virtual prospecting using bulk lists is not permission based. While this can be very cheap, the can be seen as spamming.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

26. Table 3.2: Types of Op-Ins Alternative Description Example Single
Opt-In
Customers supply address or check on a box to allow to be sent. This gives permission for the company to send , or to allow other third party companies to send to the individual. Customers are notified as to the terms of the permission.
Do you wish to subscribe to our weekly newsletter?
Yes    No
Double Opt-In
As in the single opt-in, customers supply address or check on a box to allow to be sent. Customers are expected to reconfirm by replying to a confirmation .
This maximizes the chances of not being seen as sending spam.
Thank you for registering for our letter.  In order to serve you better, please log in and update your preferences.  You can log in at the web address below: Thank you!
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

27. Table 3.2: Types of Op-Ins Alternative Description Example Opt-Out
A subscription is assumed and the customer must click to remove the subscription if they wish to opt-out of receiving for the company or other third party companies.
Occasionally we send our subscribers special offers from relevant businesses/organizations. If you do NOT want to receive such offers, please check here.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

28. Recommendations For Developing An Email Marketing Strategy
Capture addresses at a point of customer contact.
Collect information that can be used to personalize the .
Don’t send unsolicited bulk . This has a higher cost per sale and risks being seen as spam.
Clearly state the confidentiality policy.
Clearly indicate that will be used in-house only.
Ask permission before sending to third party.
Acknowledge the registration with a return .
A thank you and restatement of subscription decreases likelihood of opting out.
Respond quickly with first targeted .
Maintain records of registration.
Allows for the handling of complaints from targeted individuals.
Include clear instruction on how to unsubcribe.
Attempt to maintain low unsubscibe rates.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

29. Recommendations For Developing An Email Marketing Strategy
Content:
Personalize content.
Avoid untargeted messages.
Create content for both text and HTML formats.
Keep content short for small file sizes and quick reads.
Hyperlinks can provide access to larger amounts of content at a website, but be sure they link to content relevant pages.
Change content over time to limit individuals opting out.
Test messages and analyze results.
Assign an manager or team.
Have a contact person to handle responses and problems.
Optional: hire an ASP for services.
Keep list secure.
Do not allow receivers to obtain lists so a “reply to all” does not create spam.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

30. Table 3.3: Cost Effectiveness Of Direct Marketing Alternatives
Customer Acquisition
Customer Retention
Direct Mail to Rented List
Banner Advertising
to Rented List
Direct Mail to In-House List
to In-House List
Cost per 1,000 (CPM)
$850
$13
$200
$686 $5
Clickthrough NA
0.8%
3.5%
100%
Purchase Rate
1.2%
2.0%
3.9%
2.5%
Cost per Sale
$71
$100
$286
$18 $2
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

31. Case 3.2 Email Flower Power
Thinking Strategically
Use Figure 3.4 to illustrate how Proflowers models its targeted campaign.
Explain why this campaign would be effective for these customers with this product.
Evaluate the outcome measures for this campaign, determine if these could be improved by the use of other measurements.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

32. Figure 3.4: Targeted Email Marketing Model
Customer 1
Target Website
Purchased Database
(Prospects)
Server
Directed Links
Individual’s Permission
Dynamic Data
Current Customer Database
(relationship maintenance)
Sniffer
Viral Marketing
Customer 2
Friend’s
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

33. Mail Abuse Prevention System (MAPS) (http://mail-abuse.org)
Spam
Spam is the practice of sending unwanted to a large number of individuals.
Spam is unlike postal junk mail, spammers do not need to purchase postage for every message sent and therefore are able to greatly expand the number of people they can reach. This shifts costs from the sender to the network and receiver.
Spammers believe that the more sent, the better their chances.
Mail Abuse Prevention System (MAPS) (
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

34. Mailing Lists & Discussion Groups
Threaded discussion lists (newsgroups, forums) allow individuals to add to an initial message with successive messages. This allows a newsgroup user to add to a thread, or single conversation, by indicating their response to the prior message. Messages are available for other to read and are indented under topics headings:
Initial Post
First response
Second response
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

35. Instant Messaging & Chat
Instant messaging (IM).
Messages are send instantaneously from individual to individual through buddy lists allowing individuals to know when someone else is online. This could be a friend, or someone who has been identified as having shared interests.
Chatting
Online involves a number of individuals who leave messages for others to see.
This can be placed in a repository or chat rooms for viewing at later times or could be “live” in that individuals write to others in real time.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

36. Figure 3.5: Rich Media Process
Images
Sound
Authoring Software
Or HTML Based Multimedia
Streaming Server
Graphics
Video
Programming
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

37. Free Speech
Large media companies no longer control widely broadcast public speech. Small independent communications systems have shifted power.
Political elections around the world have demonstrated that candidates are able to use the Internet to spread information at a fairly low cost.
Political thoughts can also travel across borders allowing dissidents, human rights information, and alternative political parties to provide information to those who gain access to the Web.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

38. Free Speech Free speech issues: Cybersmearing: Rogue sites: Rumors:
defaming online.
Rogue sites:
allow individuals to express their feelings about a companies, products, or organizations.
Rumors:
Spreading of un-truths online.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

39. Rumors
The ease of posting information over the Internet allows for the dissemination of rumors.
This could be due to the lack of research undertaken by the sender of information, or it could be purposeful sending of misinformation.
Internet users to learn to gain a critical eye for information sent over the Internet.
Consumers of Internet information learn "Net Literacy" or how to evaluate information that they find online.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

40. Netiquette (1) Netiquette: proper etiquette over networks.
This includes the rules for common courtesy online and the informal "rules of the road" for cyberspace.
Basic considerations of going online with are:
Be respectful of others online. Behave as if you were having a conversation with someone in person.
The Internet is a global medium, others online may have a culture, language, and humor that is different from the sender. Jokes and sarcasm may not travel well.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

41. Netiquette (2) Basic considerations of going online (continued)
Respect the copyright on material reproduced.
Don't send chain letters through . Chain letters are forbidden on the Internet.
When in a chat group, observe the discussion to get a feel for the group culture before making comments.
Use mixed case. UPPER CASE LOOKS AS IF YOU'RE SHOUTING.
Keep file sizes small.
Don't send large amounts of unsolicited information to people.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

42. Exercise 3.1 Evaluate Web Sites
Read the ing to the Shower short case.
Evaluate the marketing campaign used by the company.
Use the Targeted Marketing Model (Figure 3.4) on page 85 to illustrate how this campaign was designed.
List the measurement criteria used to determine if the campaign was successful.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

43. Exercise 3.2 Developing E-Mail Marketing Campaigns
Develop a strategy using marketing techniques to market a product or service.
Use the Targeted Marketing Model (Figure 3.4) on page 85 as a guide.
Include information on the profile of the market you plan to target.
List the measurement criteria used to determine if this was a successful campaign.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

44. Exercise 3.3 Devising a Strategy for Intrafirm Communication
Assume that you have been placed in charge of developing an integrated e-business communication system to facilitate employee-to-employee and business-to-employee communication.
Determine the types of communication needed within the firm.
Which platforms would best serve those communication needs?
Speculate on new platforms the employees may be using in the future and decide how your business will respond to these new technologies.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing

45. Competitive Exercise 3.4 Devising a Strategy for Business-to-Customer Communication
Assume that you are asked to develop an integrated e-business communication system to serve your customers.
What types of communication would your customers like to have with your business?
Identify the platforms that would best serve those communication needs.
What new platforms will your customer base be using in the future?
How will your business use these new technologies?
Justify why your plan should be adopted by your company.
For use with Strategic Electronic Marketing: Managing E-Business, 2e
Copyright 2003 South-Western College Publishing