ELC 310

DAY 1

Agenda Roll Call Introduction WebCT Overview Syllabus Review Introduction to eMarketing

INSTRUCTOR

Tony Gauvin, Assistant Professor of E-Commerce

Contact info 216 Nadeau TonyG@maine.edu (207) 834-7519 or ext 7519 WebCT (Tony Gauvin)

Instructional Philosophy Out-Come based education Would rather discuss than lecture

Requires student preparation Hate grading assignments

Especially LATE assignments Use class interaction, assignments,

quizzes and projects to determine if outcomes are met.

ELC 310 Outcomes Learn about the transformation of the traditional or

physical marketplace into the virtual marketplace through theoretical frameworks and applied practices and examples.

Understand the Internet environment and the opportunities and challenges organizations ( profit and nonprofit) face while entering into the electronic age.

Understand the following e-commerce components and be able understand the contribution of each component to electronic marketing

Business intelligence Customer Relationship Management in electronic marketing Supply Chain Management Value Chains Enterprise Resource Planning

ELC 310 Outcomes (con’t) Understand how consumers use the

Internet to research and purchase goods and services

Be able to analyze and present an existing Case Study on electronic marketing

Be able to conduct research for, create and present a Case Study on electronic marketing

Plan an electronic marketing strategy for a small business or for an e-commerce initiative within a larger firm

ELC 310 Survival Primer Read Material BEFORE the class discussion Check WebCT Often Use the additional resources identified in syllabus ASK questions about what you didn’t

understand in readings DON’T do assignments and projects at last

minute. REVEIW lectures and notes Seek HELP if you are having difficulties OFFER feedback and suggestions to the

instructor in a constructive manner

Computer Accounts Computer login

Sys admin Pete Cyr (x7547) or Art Drolet (x7809)

Applications MSDN Academic Alliance

Free Stuff See Dr Ray Albert

Access Cards $10 deposit See Lisa Fournier

WebCT http://webct.umfk.maine.edu Login

First name. Last Name John Doe John.Doe Initial password is webct

Help with WebCT available from Blake Library staff

All quizzes and assignments will be administered from WebCT

Syllabus review

Requirements Grading Course outline Special Notes Subject to change

E-Marketing, 3rd edition

Judy Strauss, Adel I. El-Ansary, and Raymond Frost

Chapter 1: The Big Picture

© Prentice Hall 2003

The Emergence of E-Marketing: The Google StoryWhat is E-Marketing? What Is E-Business?

The Big Picture Tough Times E-Marketing in Context

Environment, Strategy, and Performance (ESP) E-Marketing Environment

Legal Factors Technology E-Business Markets

What’s Next?

Overview

The Google story shows:

Markets always welcome an innovative new product providing customer value.

Customers trust good brands.

Well-crafted marketing mix strategies can be effective in helping newcomers enter crowded markets.

Key questions for corporations:

How to use information technology profitably ?

How to understand what technology means for their business strategies?

How time-tested concepts by marketers can be enhanced by the Internet, databases, wireless mobile devices, and other technologies?

What’s next after the rapid growth of the Internet and the dot-com bubble has marketers wondering ?

The Emergence of E-Marketing What is E-Marketing? What Is E-Business?

The Big Picture Tough Times E-Marketing in Context

Environment, Strategy, and Performance (ESP) E-Marketing Environment

Legal Factors Technology E-Business Markets

What’s Next?

Overview

What is E-Marketing?

E-Marketing is the application of a broad range of information technologies for:

Transforming marketing strategies to create more customer value (more effective segmentation, targeting, differentiation, and positioning strategies),

More efficiently planning and executing the conception, distribution, promotion and pricing of goods, services, and ideas,

Creating exchanges that satisfy individual consumer and organizational customers’ objectives.

What is E-Marketing? Alternative definition:

E-marketing is the result of information technology applied to traditional marketing.

E-marketing affects traditional marketing in two ways:

Increases efficiency in traditional marketing functions, The technology of e-marketing transforms many

marketing strategies.

Results: new business models that add customer value and/or increase company profitability.

The Emergence of E-Marketing What is E-Marketing? What Is E-Business?

The Big Picture Tough Times E-Marketing in Context

Environment, Strategy, and Performance (ESP) E-Marketing Environment

Legal Factors Technology E-Business Markets

What’s Next?

Overview

What Is E-Business?

“E-Business is important, powerful, and unstoppable”

E-business “is the continuous optimization of a firm’s business activities through digital technology”

Digital technologies = information technology are things like computers and the Internet, that allow the storage and transmission of data in digital formats (1’s and 0’s)

A Definition of E-Commerce

An attempt to increase transactional efficiency and effectiveness in all aspects of the design, production, marketing and sales of products or services for existing and developing marketplaces through the utilization of current and emerging electronic technologies

The Emergence of E-Marketing What is E-Marketing? What Is E-Business?

The Big Picture Tough Times E-Marketing in Context

Environment, Strategy, and Performance (ESP) E-Marketing Environment

Legal Factors Technology E-Business Markets

What’s Next?

Overview

The Big Picture Easy, inexpensive, and quick access to digital

information transforms:- economies, - societies, - governments, - businesses.

Digital information enhances economies through: more efficient markets, more jobs, information access, communication globalization, lower barriers to foreign trade and investment, and

more.

Uneven impact of the Internet across the globe:

530 million users connected to the Internet worldwide = 8.5% of the global population,

Developed nations = 15% of the world’s population = 88% of all Internet users,

U.S. Internet users = 182 million = 64% of the population,

Indigenous peoples in remote locations gaining health,

legal, and other advice, or selling native products using the Internet.

Undesirable changes created by a networked world

Societies change as global communities based on interests form,

Worldwide information access slowly decreases cultural and language differences,

Easy computer networking = work and home boundaries are blurring = more convenient work = encourage more workaholism and less time with family.

Undesirable changes created by a networked world

Class divisions will grow, preventing the upward mobility of people on lower socioeconomic levels and even entire developing countries,

Digital divide: Internet adoption occurs when folks have:

Enough money to buy a computer, The literacy to read what is on Web pages, The education to be motivated to do it.

The digital environment is enhancing processes and activities across the entire organization:

Cross-functional teams using computer networks to share and apply knowledge for increased efficiency and profitability,

Financial experts communicate shareholder information online, file required government statements, and invent new ways to value risk, etc.,

Human resources personnel use the Net for electronic recruiting and training; an increasing number are managing organizational knowledge and workflow through corporate Web portals.

The digital environment is enhancing processes and activities across the entire organization:

Production and operation managers can adjust manufacturing based on the Internet’s ability to give immediate sales feedback resulting in truly just-in-time inventory and building products to order,

Strategists are leveraging the Net to apply the firm’s knowledge in building and maintaining a competitive edge (easy access to data).

Important e-business benefits according to U.S. top executives:

Building better quality customer relationships,

Finding more business partners and other development opportunities,

Building better brand visibility.

The Emergence of E-Marketing What is E-Marketing? What Is E-Business?

The Big Picture Tough Times E-Marketing in Context

Environment, Strategy, and Performance (ESP) E-Marketing Environment

Legal Factors Technology E-Business Markets

What’s Next?

Overview

There is Hope After the Trough of DisillusionSource: Adapted from Raskino and Andren of Gartner Research (2001)

Technology Peak of Trough of Slope of Plateau of Trigger Inflated Disillusion Enlightnment Profitability Expectation 1990-1996 1999 2000 2001 2002 2003 2004 2005 2006 Equity times Debt Times Positive Cash Flow

Visibility

Dot-com peak

U.S. Recesssion E-Business

becomes “just business”

Life Cycle of E-Business

Tough Times

The first generation of e-business was like a gold rush = creation of a Web presence and experimentation.

Results: Huge sales and market share, BUT little was brought to the bottom line and profit was

negative, Since January 2000, however, over 500 Internet firms have

shut down in the U.S. alone.

E.g: CDNow, Lycos, DoubleClick, E*Trade, and Amazon.com

The “trough of disillusion” is based 30% on the technology recession and 70% on disappointment with e-business results.

Tough Times

Marketers return to their traditional roots and rely on well-grounded strategy and sound marketing practices.

During the dot-com shakeout from 2000-2002, there was much industry consolidation:

Some firms, such as Levi Strauss, stopped selling online = not efficient + created channel conflict.

Other firms merged, E.g. e-business firm took over a traditional firm =

AOL purchased Time-Warner.

The Most Important Benefits of E-Business to U.S. ExecutivesSource: “Key Business and Marketing...” (2002)

Benefit % Mentioning

Better quality customer relationships 61More business development opportunities 50Better brand visibility 50Drive fat from supply chain 42Reduce time-to-market 33Increase customer quantity 25

What will the future be?

Gartner Group predicts that a true e-business model will emerge, and by 2008 the “e” will be dropped, making electronic business just part of the way things are done.

Some say that “E-business has become just business. E-commerce has become just commerce. The new economy has become just the economy (Aronica and Fingar 2001).

” Others say that this is far from the truth—for them, e-business will always have its own models, concepts, and practices.

Charles Schwab has already gone through the entire cycle allowing e.Schwab.com to cannibalize the larger brick-and-mortar securities firm in 1998.

The Emergence of E-Marketing What is E-Marketing? What Is E-Business?

The Big Picture Tough Times E-Marketing in Context

Environment, Strategy, and Performance (ESP) E-Marketing Environment

Legal Factors Technology E-Business Markets

What’s Next?

Overview

There is Hope After the Trough of DisillusionSource: Adapted from Raskino and Andren of Gartner Research (2001)

Technology Peak of Trough of Slope of Plateau of Trigger Inflated Disillusion Enlightnment Profitability Expectation 1990-1996 1999 2000 2001 2002 2003 2004 2005 2006 Equity times Debt Times Positive Cash Flow

Visibility

Dot-com peak

U.S. Recesssion E-Business

becomes “just business”

E-Marketing in Context: Where does e-marketing fit into this picture?