1. Chapter 1 Marketing in the Digital Age14
Marketing in the Digital Age

2. ROAD MAP: Previewing the Concepts
Identify the major forces shaping the new Digital Age.
Explain how companies have responded to the Internet and other powerful new technologies with e-business strategies, and how these strategies have resulted in benefits to both buyers and sellers.
Describe the four major e-commerce domains.
Discuss how companies go about conducting e-commerce to profitably deliver more value to customers.
Overview the promise and challenges that e-commerce presents for the future.

3. Forces Shaping the Digital Age

4. Forces Shaping the Digital Age
Digitalization & Connectivity
Intranets – connect people within a company.
Extranets – connect a company with its suppliers, distributors, and outside partners.
Internet – connects users around the world.
Internet Explosion
Explosive worldwide growth forms the heart of the New Economy.
Increasing numbers of users each month.
Companies must adopt Internet technology or risk being left behind.

5. Forces Shaping the Digital Age
New Types of Intermediaries:
Direct selling via the Internet bypassed existing intermediaries (disintermediation).
“Brick-and-mortar” firms became “click-and-mortar” companies.
As a result, some “click-only” companies have failed.

6. Forces Shaping the Digital Age
Customization and Customerization:
With customization, the company custom designs the market offering for the customer.
With customerization, the customer designs the market offering and the company makes it.

7. Marketing Strategy in the Digital Age
Requires a new model for marketing strategy and practice
Some suggest that all buying and selling will eventually be done electronically
Companies need to retain old skills and practices but add new competencies

8. E-Business in the Digital Age
Involves the use of electronic platforms to conduct company business.
Web sites for selling and customer relations
Intranets for within-company communication
Extranets connecting with major suppliers and distributors

9. E-Commerce in the Digital Age
More specific than e-business.
Involves buying and selling processes supported by electronic means, primarily the Internet.
Includes:
e-marketing
e-purchasing (e-procurement)

10. E-Commerce Networks
Global eXchange Services (GXS) consists of more than 100,000 trading partners in 58 countries. GXS completes some 1 billion transactions each year, accounting for $1 trillion worth of goods and services.

11. E-Marketing in the Digital Age
The marketing side of e-commerce.
Includes efforts to communicate about, promote, and sell products and services over the Internet.
E-purchasing is the buying side of e-commerce.
It consists of companies purchasing goods, services, and information from online suppliers.

12. Benefits to Buyers Convenience Buying is easy and private
Provides greater product access and selection
Provides access to comparative information
Buying is interactive and immediate

13. Benefits to Sellers Powerful tool for building customer relationships
Can reduce costs
Can increase speed and efficiency
Offers greater flexibility in offers and programs
Is a truly global medium

14. E-Marketing Domains

15. B2C (Business to Consumer)
The online selling of goods and services to final consumers.
Expected to generate $428 billion in 2004.
There is increasing diversity in buyers.
This provides increasing opportunities for targeting markets.
Is customer initiated and controlled.

16. B2B (Business to Business)
By 2005, more than 500,000 enterprises will participate as buyers, sellers, or both.
Most major B2B marketers offer product information, purchasing, and support services online.
Open trading exchanges—huge specialty e-marketspaces to conduct transactions.
Click Here to Visit Covisint's Web Site
More private trading networks being developed.

17. C2C (Consumer to Consumer)
Occurs on the Web and includes a wide range of products and services.
Forums: discussion groups located on commercial online services.
Newsgroups: the Internet version of forums.

18. C2B (Consumer to Business)
Consumers can search out sellers, view offers, initiate purchases, and give feedback.
Example: on priceline.com, one can bid for airline tickets, hotel rooms, etc. and decide whether to accept company offers.
Click Here to Visit priceline.com

19. Interactive Student Assignment
Chapter 1
Choose a partner and talk about the types of online purchases you have made.
What are your major concerns about making online purchases?
What types of things can an online retailer do to create a more secure buying environment?

20. Types of e-Marketers

21. Click-Only Companies Types of Sites E-tailers
Chapter 1
Click-Only Companies
E-tailers
Enabler Sites
Search Engines and Portals
Types of Sites
Content Sites
E-tailers: Amazon.com, CDNow
Search Engines & Portals: Yahoo, Excite, Google
ISPs: Juno, AOL
Transactions Sites: auction sites
Content Sites: Newspapers, other databases
Enabler Sites: Provide hardware and software the enable internet communication.
Internet Service Providers
Transaction Sites

22. Reasons for dot.com Failures
Poor research or planning.
Relied on spin and hype instead of marketing strategies.
Spent too heavily on brand identities.
Devoted too much effort to acquiring new customers instead of building loyalty.

23. Click-and-Mortar Companies
Most established companies resisted adding Web sites because of the potential for channel conflict and cannibalization.
Many are now doing better than click-only companies.
Reasons:
Trusted brand names and more resources
Large customer bases
More knowledge and experience
Good relationships with suppliers
Can offer customers more options

24. Setting Up for E-Marketing

25. Types of Web Sites Corporate Web Site:
Designed to build customer goodwill and supplement other sales channels.
Offers information to customers.
Builds closer customer relationships.
Generates excitement about the company.
Marketing Web Site:
Engages consumers in an interaction that moves them closer to a direct purchase.
Provides information about the products.

26. Designing Attractive Web Sites
Chapter 1
Designing Attractive Web Sites
Context
Content
Community
Customization
Communication
Connection
Commerce
The 7 Cs of Effective Web Site Design
Context: site’s layout and design
Content: text, pictures, sound, and video that the website contains.
Community: the ways that the site enables user-to-user communications
Customization: site’s ability to tailor itself to different users or to allow users to personalize the site.
Communication: The ways the site enables site-to-user, user-to-site, or two-way communication.
Connection: degree that the site is linked to other sites
Commerce: site’s capabilities to enable commercial transaction

27. Chapter 1
Discussion Question
What features do you look for on a Web site that you feel make the site appealing?

28. Online Ads and Promotion
Forms of online advertising & promotion:
Banner ads & tickers (move across the screen)
Skyscrapers (tall, skinny ads at the side of a page)
Rectangles (boxes that are larger than a banner)
Interstitials (pop up between changes on Web site)
Content sponsorships (sponsoring special content)
Microsites (limited areas paid for by an external company)
Viral marketing (Internet version of word-of-mouth)

29. Viral Marketing
Gillette used viral marketing to introduce the 3-bladed Venus razor for women, greatly expanding the audience reached by its “Reveal the Goddess in You” truck tour and beach-site promotions.

30. The Future of Online Advertising
Web communities:
Allows members to congregate online and exchange views on issues of common interest
Use of “enriched” messages
Backlash against spam can be problem
Allow people to opt-out of promotions

31. Legal and Ethical Issues
Online privacy
Online security
Internet fraud
Segmentation and discrimination
Access by vulnerable or unauthorized groups

32. Rest Stop: Reviewing the Concepts
Chapter 1
Rest Stop: Reviewing the Concepts
Identify the major forces shaping the Digital Age.
Explain how companies have responded to the Internet and other powerful new technologies with e-business strategies, and how these strategies have resulted in benefits to both buyers and sellers.
Describe the four major e-commerce domains.
Discuss how companies go about conducting e-commerce to profitably deliver more value to customers.
Overview the promise and challenges that e-commerce presents for the future.