ELECTRONIC AGE MARKETING

MKTG 476 MARKETING IN THE ELECTRONIC AGE Lars Perner, Instructor 1

ELECTRONIC AGE MARKETING

Internet basics Domains and domain

names Economics of e-

commerce Desktop publishing in

Word


Internet Basics Access to the Internet

Dial-up Broadband

For businesses and organizations (e.g., T1, T3) For individuals

Cable, DSL, other Hardware

Servers Local Remote

Routers—direct “traffic” to and from work stations Large office Home networks


More Internet Basics Internet design for redundancy

Different possible paths between two points Computer “down” time

Some Internet tools E-mail World Wide Web USENET FTP (file transfer protocol—for uploading or

downloading files) Telnet (access to large “mini” or mainframe computers

with unsophisticated interface)


More Internet Basics

Intranets (within organization) vs. extranets Web addresses

Uniform Resource Locator (URL) (e.g., sdsu.edu)—will “route” a user to a numeric location (e.g., 192.107.41.31)

Protocol preface: http:// (hypertext transfer protocol)

Domain names: Prefix (e.g., sdsu); suffix (e.g., .edu, .com)


Domain names

Uniform Resource Locators (URLs) Standard way to access an Internet location Used to translate meaningful words into

numerical address E.g.,

http://www.sdsu.edu

Protocol ID: Within domain location

Domain name

Top level domain


Other examples

http://mea.consumerpsychologist.com http://Ivcampus.sdsu.edu http://www.amazon.co.uk

http://ivcampus.sdsu.edu/


Wireless connections

Reach “Hot spots” vs. broader reach

Speed Security


Economics of Internet Commerce Intense competition for large demand products (large quantity

demanded attracts many sellers) Use of large demand products as loss leaders (e.g.,

Amazon.com bestsellers) Competition will force reduced costs—if any—to be passed on

to customers Competition makes charging for shipping and handling difficult.

This is often more expensive than traditional distribution. Less competition on specialty products Established “brick-and-mortar” firms have large cash reserves


Considerations in Evaluating E-Commerce Potential Value-to-bulk ratio Ability of consumer to evaluate quality and fit

through online description Extent of customization needed Geographic dispersal of consumers


How Suitable For Internet Commerce? Are There Differences Among Segments?

http://images.amazon.com/images/P/1880418568.01.LZZZZZZZ.jpg

http://www.amazon.com/exec/obidos/tg/detail/-/B0000990XP/002-4587118-2168029?v=glance&s=electronics&n=1203566&me=A3LJ5WMKNRFKQS&vi=pictures&img=14


Business Models of e-Commerce

Business model design Revenue models Customer/seller models E-auctions


Business Model Design Business assessment

Digitalitality level of a business Profit orientation (profit center business or loss center

for spillover benefits) Delivering customer value Four Ps of Value

Product Price Place Promotion


Revenue Models

Revenue streams Evaluating streams

Strength Stability Cyclicality Resource needs

Interrelationships between streams


Source of Site Income Free access sites—profit derived through

Advertising/commissions Sponsorships Promotion or support of other business line

Paid access Complete access for one charge Access to core with extra charge for premium Problems of “micro payments)

Hybrids One party pays (e.g., job recruitment sites) Two-tier—some free access; charge for premium


Types of Business (Pure) Models

Seller Buyer

Business Consumer

Business B2B B2C

Consumer C2B C2C


Hybrids

B-2-B+C (Business to business and consumer) E.g., Staples.com

Complex: Amazon.com: B2C and C2C


B2C

Direct sellers Intermediaries Advertising-based businesses Community-based model Fee-based model


Characteristics of Successful B2C Companies High number of visitors High conversion rates Higher revenue per transaction Higher average gross margin No impact of

Number of transactions per consumer Acquisition cost


“Clicks-and-Bricks” Model Integration of electronic and traditional commerce Consumers can shop and return both ways Synergies Forms

Spin-offs Strategic partnerships Joint ventures Within-company division


B2B

Typical characteristics High volume, value Purchase specificity Team buying/decision making Long term relationships Leasing issues Competitive bidding


C2C

Usually require intermediary (e.g., eBay) Issues of reputation “Infrastructure” issues (e.g., ability to take

credit card payments) Economics of

Labor (seller) Cost of search (buyer)


C2B

Rare category Agency coordinating sales of

Property (e.g., antiques) Personal skills


E-Auctions

Types English Dutch

Speedier May result in lower prices when multiple items

are sold Bidding behavior issues

Timing of bids “Sniping”


Desktop Publishing in Word

Desktop publishing software Word, WordPerfect Fancier programs: MS Publisher, InDesign,

Adobe Illustrator, Macromedia Fireworks, Adobe Photoshop

Possibilities within Word Brochures Posters


Some Features

Columns Tables

Imported Created in Word

Graphics Fonts


Tables

Use for Control of formatting—e.g., course document

header Control of placement—e.g., graphics Organization of information

“Merge” and “split” cells


Posters

Paper orientation “Portrait” (regular) “Landscape” (rotated 90 degrees)

Tables for graphics Fonts Images Document borders Fonts


Fonts Monospace (e.g., Courier) vs. proportionally spaced (e.g., Arial, Times Roman)

Font sizes Measured in “Points”

(average length and height of a letter)

All fonts with the same “size” are not equally large! (Times Roman is more “efficient”)

Serif vs. sans-serif Serif fonts have sharp

edges (e.g., Times Roman)

Easier to read for longer documents—less eye strain

Sans-serif lack sharp edges

Generally look more pleasant

Used for headlines


Some “Standard Fonts”

Courier (not used much in contemporary documents, but has been found effective in direct mail)—looks like a typewriter

Times Roman—default on many programs Arial (Helvetica)—common sans-serif font


Fonts Usually Standard in Windows (But Not Necessarily Macintosh) Comic Sans Letter gothic (monospace) Trebuchet (proportional, hybrid

serif/sans-serif) Book Antiqua (proportional, serif) Century gothic (proportional, sans-serif)


Preserving Formatting Use of “standard” fonts Testing across

Multiple browsers Computer types and configurations

Use of invisible “tables” Use of Adobe Acrobat (PDF) files

Good for preserving document formatting while avoiding large task of reformatting

May require the user’s browser to open Adobe Acrobat (resulting in delay)


Brochures

4 page 5.5x8.5 brochure: Use landscape orientation Reduce right and left margins to 0.5” Make page into two columns Start in column 2 on first page Last page is column 1 of first page

Templates Font selection Inserting graphics


Printing Brochures and Posters Large quantity:

File submitted to printing firm

Choice of paper Glossiness Thickness

Small quantity in-office printing Large posters Laser printing vs. inkjet

Inkjet usually provides superior quality

Laser is usually cheaper

Paper choices Absorbency Thickness Glossiness

Quality of print

ELECTRONIC AGE MARKETING

Documents

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