EBUS/520 2/16/05- Joanne T. Witt1 EBUS 520 e-Marketing Theory and Application Week One Instructor:...
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Transcript of EBUS/520 2/16/05- Joanne T. Witt1 EBUS 520 e-Marketing Theory and Application Week One Instructor:...
EBUS/520 2/16/05- Joanne T. Witt 1
EBUS 520e-Marketing Theory and
ApplicationWeek One
Instructor: Joanne T. Witt
February 16, 2005
EBUS/520 2/16/05- Joanne T. Witt 2
Goal
• Learn about the theory and application of electronic marketing– What new tools or approaches are available,
because of the internet, as a means for delivery and capture of information?
– How does e-marketing differ from classical marketing?
EBUS/520 2/16/05- Joanne T. Witt 3
Introductions
• Who am I?– Joanne T. Witt
• Who are you?– Name– Current position and company– How has the internet changed the way you
live and work?
EBUS/520 2/16/05- Joanne T. Witt 4
Class Information
• Name cards• Course schedule – course ends 10/6• All materials can be found on the
resource page• All presentations can be found at
www.joannewitt.com • Review topics• Breaks – 7:00 /7:15 for 30 minutes and
at 9:00 p.m.
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Class Information
• Assignments
• Grading
• Learning teams
• Breaks – 7:00 /7:15 for 30 minutes and at 9:00 p.m.
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Moore’s Law
Metcalfe’s law
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 7
DIFFUSION OF INNOVATIONS
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 8
Growth of Various Media
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 9
Timeline
• History:– http://www.zakon.org/robert/internet/
timeline/
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Internet
• How do you and your family and friends use the internet?
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e-Marketing Implications
• CRM
• Response Time – Expectations
• Information Integration
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THE CUSTOMER HAS NO MORE TIME
• The Struggle to Acquire Customers is Exceeded Only by the Struggle to Retain Them.
Marketer
Visitor
• Internet Time is not Readily Devoted to the Advertising There.
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 13
Organizational Transformation
• Focus: Customer
• MIS
• Managing and Using Knowledge
• Marketing Intelligence
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External Environmental Factors
• Social and Cultural
• Political and Legal
• Competitive
• Technological
• Environmental
• Demographic
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UNIQUE CHARACTERISTICS/BENEFITS
• Common Platform
• Perfect Information
• Interactive
• Global
• Distance Is No Longer Relevant
– Size Is Relevant to Brand Strength and Resources
• Always on
• Many-to-many
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 16
IT IS POSSIBLE TO CALCULATE DEMAND WITH PRECISION
• Information Flows– Quickly– Freely
Up and Down the Value Chain
• Winners and Losers Can be Spotted Quickly
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 17
COSTS FOR MANY PRODUCTS FOLLOW A MODEL OF HIGH FIXED DEVELOPMENT
COSTS AND VIRTUALLY NO VARIABLE COST OF PRODUCTION.
• High Up-Front Costs for
Necessary Technology
• Serving An Incremental
Customer Almost Cost-
Free Except for
Distribution
• Stair-Step Fixed Costs
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 18
SCALE IS MORE LIKELY TO BE DEFINED BY NUMBER OF CUSTOMERS
THAN BY PRODUCTION CAPACITY.
• Fewer Resources Devoted
to Physical Production
• Serving a Large Customer
Base is Cost Effective
• BUT It is Important to
Devote Sufficient Resources
to Distribution and Customer
Service
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 20
ECONOMICS OF E-BUSINESS
1. Shift From An Economy of Scarcity to One of Abundance.
2. Both Businesses and Consumers Have a Glut of Marketplace Choices.
3. Transaction and Coordination Costs are Disappearing.4. It is Possible to Calculate Demand With Precision.5. Switching Costs Approach Zero in the Absence of
Actions by Marketers.6. Costs for Many Products Have High Fixed Costs of
Development and Virtually No Variable Cost of Production.
7. Scale is More Likely to be Defined by Number of Customers Than by Production Capacity.
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 21
SHIFT FROM AN ECONOMY OF SCARCITY TO ONE OF ABUNDANCE
Amazon is a Good Example of Information
Becoming More Valuable As It Is Shared
• Broad and Deep Assortment of Products• Abundance of Content Provided by Visitors• Use of Data to Provide Personalized • Purchase Recommendations
• Customer Behavior on Site• Behavior of Similar Customers
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 22
TRANSACTION AND COORDINATION COSTS ARE DISAPPEARING
Affiliate Marketing
as Portrayed
By Amazon
Used with permission of Amazon.com
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 23
External Environmental Factors
• Social and Cultural• Political and Legal• Competitive• Technological• Environmental • Demographic
Which one of these impacts your organization?
Which one impacts your job?
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FORECASTS OF B2B E-COMMERCE
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 26
Horizontal versus Vertical
• http://www.gxs.com/index.jsp,
• http://www.neoforma.com/corp/index.html
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• Programmed
• Relationship
• Transactional
• Bargain Hunter
B2B CUSTOMER SEGMENTS
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 28
B2B INTERNET MARKET SEGMENTS
www.accenture.com
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 29
B2B INTERNET MODELS
• Marketplace/Exchange
• Application Service Provider
• Infomediary
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
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B2C
• Portals
• Communities
• Search Engines
• Product
• Service
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MARKETPLACE SUCCESS FACTORS
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 32
MANY MARKETPLACES HAVE FAILED
‘LIQUIDITY’ IS MAJOR REASON
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 33
B2E
• Intranets– Best Designed Intranets of 2003 – Jakob
Nielsen
http://www.useit.com/alertbox/20031013.html
• eRoomhttp://www.documentum.com/solutions/collaboration/
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Genesis:From An Internal System
To A Successful Information Product
Used with permission of Sabre.
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
EBUS/520 2/16/05- Joanne T. Witt 35
ORGANIZATIONS IN THE NETWORKED ECONOMY
The Flexible, Market-Focused Organization
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.
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G2C
• City Government – Houstonhttp://www.tax.co.harris.tx.us/
• County Governmenthttp://www.hcad.org/
• State Governmenthttp://www.state.tx.us/
• US Governmenthttp://www.firstgov.gov/
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C2C
• Auctions– http://www.ebay.com/
• Bulletin Boards – http://groups.yahoo.com/
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Mohan Sawhney’s Pyramid
• Activity
• Business Process
• Enterprise
• Pure Play
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Discussion Questions
• How has your organization integrated e-marketing into its marketing activities? – If it hasn’t, why hasn’t it? – What recommendations would you have for
integrating e-marketing?
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Discussion Questions
• What external environmental factors effect e-marketing? – How?
• How do you determine the appropriate level of organizational commitment to e-business?– What factors would you consider in your
evaluation?– Why?