ELC 310

Day 21

Agenda

Questions? Assignment 3 Due Two major assignments Left

– Case study analysis of an existing case Week after break

– Creation of a case study Last week of the semester

Case Study Proposals Due Nov 23 – Less than one page on the company you will be writing a case study on and

where you will be getting the research. Exam 3 graded

– 1 A, 2 B’s and 2 C’s String today we will be in the text ebusiness.marketing

– Today, Nov 16 Chap 1 & 2– Friday, Nov 20 Chap 3 & 4

Case Study Possibilities

Marshall Industries Charles Schwab K-mart (or Wal-Mart) Sears GM (or Ford or Chrysler) e-bay Monster. COM

Discussion of Albert Text

Explores impact of technology on traditional marketing models

First 4 Chapters establish a conceptual framework for e-marketing and introduces analytic tools

Chap 5 -12 provide case studies of 8 different companies

Chap 13 & 14 explores the future of e-marketing and research methodologies

http://www.sandlight.com/albert/ebizNow.html

For next class

Read Albert Chapters 1-4 Look at Chaps 6-12 and decide which of

these case studies you would like to analyze and present to the class

Expect to occupy 20 minutes of class time for your presentation and discussion

Rubric for grading of Case study analysis will be passed out next class

Some marketing terms

Direct marketing Branding Advertising Telemarketing Customer relations Public relations Channel Stakeholder

Marketplace Profiling Market research

– Demographics– Target market

NPD– New Product

development

Marketing Review

The 5 P’s of Marketing (sometimes only four!)– Product– Price– Promotion– Placement– Planning

Background

Why does e-Marketing exist? Role of Technology

– Enabler– Database– Internet

Overview of E-Business Marketing

Components of E-Business E-Business Marketing Concept Overview

– Process to Create and Deliver Goods, Services, and Ideas – Valuable Exchange Process – Multiple Group Involvement

Definition of-eBusiness Marketing Is History Repeating itself?

– New Technologies have fast adaptations rates Understanding technology and Technology

Personnel– IT Departmental Orientation and Goals

E-Business Definition

Five Components– E-Commerce (EC)– Business Intelligence (BI)– Customer Relationship Management (CRM)– Supply Chain Management (SCM)– Enterprise Resource Planning (ERP)

E-Business Components (page 4)

E-Commerce Business Intelligence Customer Relationship Management

Above the line is the customers’ perspective

Below the line is a business perspective

Supply Chain Management Enterprise Resource Planning

3 Common Themes of Marketing

Process for creating and delivering goods, services and ideas to customers

Based on Exchanges that are valuable to both the customer and the company

Many groups involved in marketing concept

Marketing Concepts

Three common themes– creation and delivery

Customer service NPD Fulfillment

– value-laden exchanges Price Value Add Market Differentiators

– different groups (stakeholders) Integrated marketing communications Value Chain

Marketing Stakeholders

Customers and potential customers Employees Investors Suppliers Partners

Mix and match

Components– E-Commerce (EC)– Business Intelligence

(BI)– Customer Relationship

Management (CRM)– Supply Chain

Management (SCM)– Enterprise Resource

Planning (ERP)

Concepts– creation and delivery– value-laden exchanges– different groups

(stakeholders)

The P’s– Price– Product– Promotion– Placement– Planning

Definition

E-Business marketing is a concept and process of adapting the relevant and current technologies to the philosophy of marketing and its management.

Growth– One billion people online– 10 million web sites– 80% of traffic goes to 0.4% of websites

The paradox– mass-personalization– Consumer desire for privacy

Historical perspective– Radio 38– TV 13– Internet 5

Is History repeating Itself?

Radio in 1899– Beginning of mass marketing, Branding– 38 years for 50 million households

Televisions 1945– 13 years for 50 million households

PC 1960– 16 years for 50 million households– CRM and database marketing

Internet 1994– 5 years for 50 million households

Role of IT Departments

Importance Communication Task Forces/Committees

– shared goals

Seeks homeostasis Goal displacement

Chapter Two

The Marketing Mix Transformation

Overview

The Transformation of the Marketing Mix The Internet's Impact on the Marketing Mix Business-to-Consumer Marketplace B2C and Traditional Distribution Business-to-Business Marketplace Ranged Marketing Complexity Theory Fuzzy Logic Elements of Ranged Marketing The Key Role of Change The Role of Ranged Marketing

“Traditional” Marketing Mix

Four Ps (McCarthy, 1960s) Four Cs (Schultz, 1990s)

– main causes of transformation Database Outside looking in

Internet impact on the 4Ps/4Cs– Product >> customer solution– Price >> customer price– Promotion >> communication– Place >> convenience

Marketing Mix

E-Business enables transformation 4 Ps to the 4Cs Product Customer Solution Price Customer Cost Promotion Communication Place Convenience Caveat emptor Cave emptorum

Internet enabled outcomes

Leverage database marketing technology– Quantitative information

Purchase patterns Demographics Psychographics Attitudes, Interest and opinions

Targeted promotion Personalization on a Massive scale Distribution

Impact on Services Marketing

What is Services Marketing?

Four factors impacted– Intangibility– Simultaneity– Heterogeneity– Perishability

4 extra P’s – People– Processes– Physical image– productivity

Internet Business Environments

B2B– definition– size/opportunity

B2C– definition– size/opportunity

C2C– definition– how did the Internet enable this?

Background for Ranged Marketing

Complexity Theory (chaos)– Small permutations create massive change– Fractals– Fuzzy Logic– Nothing is perfectly predictable– Lorenz’s Butterfly effect

http://www.cmp.caltech.edu/~mcc/chaos_new/Lorenz.html Results

– The unexpected occurs– Change is certain– The market is heterogeneous

Ranged Marketing

Marketing is a combination of many disciplines

Ranged marketing incorporates sociological theory

– Increased communication accelerates change

Other research– Hoffman and Novak– Organic solidarity

E. Durkheim

Elements of Ranged Marketing

Range of……... Use Expertise Target Markets Development Life Adaptation Change

Change/Transformation

Successful company example– Volvo– UPS

UPS as traditional company– transformation into e-business – www.ec.ups.com– successful?– What was their “formula”?

Words to think about

“The future ain’t what it used to be.”– Yogi Berra

“It’s not the strongest or most intelligent that survive, but the ones most responsive to change.”– Charles Darwin