1. International MBA Refresher E-Marketing /Technological Marketing Professor: Jacques Nantel, Ph.D HEC Montréal Canada

2. Content Adding value to the business plan (10 min) Retailing (20 min) –Workout session : Amazon.com (30 min) –Presentations (15 minutes) Advertising (15 min) Market places (15 min) Break (30 min) Data base marketing (20 min) –Workout session : MSN passport (30 min) –Presentations (15 minutes) Conclusion (10 min)

3. Starting positions E-marketing is not a strategy It is merely a catalyst To apply it is not necessarily a plus To ignore it is a minus It can help the firm by –reducing costs –Increasing revenues

4. The e-sky is falling! (Amazon.com)

5. Yet…. There are more consumers surfing Who stay longer on the net And who buy more and more

6. “…global marketing information from a global research company, with unequalled expertise and experience in internet issues …” Taylor Nelson Sofres Interactive - Global eCommerce Report 2001 Taylor Nelson Sofres Interactive - Global eCommerce Report 2001

7. E-commerce World growth

8. Internet users across the world 2001 Percentage of total adult population Percentage of the population who have personally used the Internet during the past month Country average (31%) GeR Japan results = 68% (data collected in the TNS AP M-commerce study) China results = 23% (data collected in the TNS AP M-commerce study)

9. Percentage of Internet users Percentage of Internet users who have bought goods or services online during the past month The USA retains its position as the nation with the greatest proportion of online shoppers at 33%. This compares with the global average of 15%. In India, the Philippines,Thailand and Turkey, 2% or less of the online population shop online. Country average (15%) GeR

10. Percentage of Internet users Percentage of Internet users who have bought goods or services offline as a result of information found online during the past month The Internet as an information channel for offline purchasing continues to be important. Hong Kong, demonstrates this well, supplementing online purchasing with substantial offline revenues. Country average (15%) GeR

11. Products purchased online Percentage of Internet users who shop online GeR

12. In brief, a growing market but one has to understand the real opportunities Internet will not be the revolution that some had predicted It will not be a fad For most retailers it will be a necessary evil

13. Building a new distribution network does not create any new demand There are not two types of consumers one virtual the other one tangible Forget the first mover’s advantage Technology is important but having a decent profit making business plan is still crucial. Some dying myths

14. Different strategies for different products

16. 1-Digital products New networks Cost and price reduction Standard technology

17. Sales of music on the Internet (000 $ us) Source: Forrester Sept 2001

18. Source: MediaMetrix oct 2001

20. 2- Services Travel agencies, Law, Medical services Cost reduction, standardization of basic functions Cross marketing and up-selling Ex: Merrill Lynch

21. 3- Convenience goods Most of them are available within 1 mile from the source of demand 80% of consumption is made by 20% of goods (Pareto law)

22. Thus... Consumers will want to shop in store AND surf on the net Retailers must provide both opportunities Retailers must provide real time information including their stocks Sell popular products in store with low margins Sell products with slow turnovers on line with increased margins

24. 4- Specialty products Car, furnitures Inventory cost are often huge Yet consumers are still waiting often more than a month

26. Workout session: Amazon.com

27. 2- What about advertising ?

31. Yet, there are opportunities Focus on the consumer not on the content Keep in mind that the consumer is active and searching Provide indication for your ROI Use personalization

33. Various strategies Banner ads Permission marketing (yesmail.com) Viral marketing Affiliate marketing Product placement

34. Market Places B2B The marginal contribution of e-commerce where EDI was already established –True opportunities for the standardization of protocols Winners: SAP, Oracle etc. –Important order givers gained power over small suppliers Market places –For commodities and indirect inputs Verticalnet Vs Dell computers Changing business models –From registration fees to transaction fees –Volume is the key

37. Market places can be profitable if The operate in areas where buyers seek and compare several suppliers Trade indirect inputs or commodities Are able to capture critical masses

38. CRM systems

39. What they do The critical importance of owning a central data basis Data basis must be updated Sales force must be part of it ROI must be evaluated

43. Workout session: MSN.com