hi-tech marketing

7/30/2019 hi-tech marketing

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1. Convergence


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Objectives

Explain how the Internet and informationtechnology offers benefits and challenges toconsumers, businesses, marketers, and society.

Distinguish between e-business and e-marketing.

Describe the Internet and the use of intranets,extranets and the Web.

Explain how increasing buyer control is changingthe marketing landscape.

Understand the distinction between informationor entertainment as data, and the informationreceiving appliance used to view or hear it.


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The Music Industry

File sharing programs, such as KaZaA, enableconsumers to illegally download music.

The Recording Industry Association of Americahas sued over 400 consumers for piracy.

14% U.S. consumers still download illegal files

CD sales plunged to $13 million in 1999; $10.6billion in 2003

Apple Computer introduced iTunes at .99 each.


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E-marketing Defined

The use of information technology

to create, communicate, and deliver valueto customers.

for managing customer relationships tobenefit the organization.

The result of information technology applied

to traditional marketing.


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E-Business, E-Commerce, andE-Marketing

E-business is the continuous optimization of afirms business activities through digitaltechnology.

E-commerce is the subset of e-business focusedon transactions.

E-marketing is one part of an organizations e-business activities.


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The Internet

A global network of interconnected networks. E-mail and data files move over phone lines,cables and satellites.

Three types of networks form part of the

Internet:

Intranet: network that runs internally in anorganization.

Extranet: two joined networks that shareinformation.

Web: GUI for navigation with a browser(IE). Most people refer this as Internet.


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However, e-marketing is bigger than Web

First, many e-marketing technologies exist

predating the web - CRM, SCM, EDI etc Second, non-Web Internet communication (e-

mail, newsgroups) are effective avenues formarketing.

Third, Internet delivers text, video, audio, andgraphics to many more information-receivingappliances than simply PCs.

Finally, offline electronic data-collection

devices, such as bar code scanners anddatabases, receive and send data over anintranet.


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Web Is One Aspect of E-Marketing

Internet

WebRefrigerator

E-mail

Cell Phone

PDA Bar Code Scanner Television

Database

PC

Automobile


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Past, Present, and Future

The first generation of e-business was like agold rush.

From 2000-2002, over 500 Internet firms shutdown in the U.S.

Almost 60% of dot-coms were profitable inthe fourth quarter of 2003.

Today, the Internet is mainstream in

industrialized nations. 20 nations comprise 90% of all Internet

users.


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E-Marketing Today

Power shift from sellers to buyers

Marketing fragmentation: mass market to onecustomer

Death of distance

Time compression

Knowledge/database management is key/easy

Marketing and technology: an interdisciplinaryfocus

Intellectual capital is important resource


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Consumer Control

New technologies such as personal videorecorders (PVRs) etc will increase consumercontrol.

Convergence of television, radio, print, etc.

Customer-controlled entertainment, andshopping on demand.


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Improved Internet StrategyIntegration

Organizations will integrate informationtechnology seamlessly into marketingstrategy.

Multichannel marketing: Web site, retailstore, and catalog

Integration of inventory databases

Integration of customer service acrosschannels


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Refined Metrics

Internet provides great deal of data, not all ofwhich is very useful.

Tracking customer acquisition cost (CAC) andother key metrics is a critical marketingfunction still in its infancy.

Future metrics will provide better measures of

performance, return on investment, etc.


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Wireless Networking Increases

Cell phones, PDAs and laptops connectto the Internet via wireless modemworldwide.

Hang-out joints like CCD, StarbucksHotels and airports

Train stations

Customers will have information,entertainment and communicationwhen, where and how they want it.


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Appliance Convergence

The receiving appliance is separate from themedia type.

Computers can receive digital radio and TV.

TV sets can receive the Web.

New types of smart receiving appliances willemerge.

Internet refrigerator is many digitalappliances in one.

Global position systems (GPS) allow in-car

communication and entertainment.


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Semantic Web

The Semantic Web will utilize a standarddefinition protocol that will allow users to findinformation based on its type, such as:

The next available appointment for a doctor

Details about an upcoming concert

Menu at the local restaurant

Represents the next huge advance: providingworldwide access to data on demand withouteffort.


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Internet-Time Analogy(Awaiting the next Technological Breakthrough)

3500 BCSundial

1583 ADPendulum

1600sMechanical

1929Quartz Crystal

1949Automatic

Web is here

Now
http://images.google.co.in/imgres?imgurl=http://www.dargate.com/232_auction/232_images/1007.jpg&imgrefurl=http://www.dargate.com/232_auction/232_images/232catalog.htm&h=356&w=475&sz=49&hl=en&start=25&um=1&tbnid=mR5eN_ESwbv2gM:&tbnh=97&tbnw=129&prev=/images%3Fq%3D1949%2Batomic%2Bwatch%26start%3D20%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DNhttp://images.google.co.in/imgres?imgurl=http://www.kenmarwatches.com/images/prod_mini/32/adeekaye_23632.jpg&imgrefurl=http://www.kenmarwatches.com/adee-kaye-AK4008-MIPB.html&h=100&w=77&sz=4&hl=en&start=92&um=1&tbnid=AcFuPBP_3QigCM:&tbnh=82&tbnw=63&prev=/images%3Fq%3Dquatrz%2Bcrystal%26start%3D80%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DNhttp://images.google.co.in/imgres?imgurl=http://www.germes-online.com/direct/dbimage/50250684/Mechanical_Stopwatch.jpg&imgrefurl=http://www.germes-online.com/catalog/81/39/1331/194349/sell_mechanical_stopwatch.html&h=360&w=360&sz=37&hl=en&start=31&um=1&tbnid=tKfJ1iNgmPTH5M:&tbnh=121&tbnw=121&prev=/images%3Fq%3DMechanical%26start%3D20%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DNhttp://images.google.co.in/imgres?imgurl=http://img.alibaba.com/photo/11355972/Pendulum_Clock.jpg&imgrefurl=http://22447574.trustpass.alibaba.com/product/11355972/Pendulum_Clock.html&h=743&w=410&sz=63&hl=en&start=85&um=1&tbnid=QDmZvvBAVrZ-cM:&tbnh=141&tbnw=78&prev=/images%3Fq%3DPendulum%26start%3D80%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DNhttp://images.google.co.in/imgres?imgurl=http://www.antiquesextant.com/images/sunsphere1.jpg&imgrefurl=http://www.antiquesextant.com/sunsphere.htm&h=557&w=460&sz=34&hl=en&start=151&um=1&tbnid=RYDPyHx4WWmuWM:&tbnh=133&tbnw=110&prev=/images%3Fq%3Dsundial%26start%3D140%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DN


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Discussion Questions


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Di i Q i 2


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Discussion Question 2

Q: What are metrics and why are they important?

Specific measures designed to evaluateeffectiveness and efficiency of the e-business ande-marketing operations.

The problem occurs in trying to sort through allthe data to identify metrics that help marketersunderstand how consumer behavior translates tosales and profits - without spending too muchtime or money collecting, analyzing, andreporting.

As a marketer you are accountable for the ROIfor your strategies, hence you must identify thebest measures to indicate success during andafter marketing plan implementation.

Di i Q ti 3


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Q3: How does technology change traditionalmarketing?

Firstly, it increases efficiency and effectiveness.

Secondly, it transforms many marketingstrategies, resulting in new business models that

add customer value, in view of the followingproperties of Information Technology:

Bits not atoms, Mediating technology, Globalreach, Network externality, Time moderator,Information equalizer, Scalable capacity, OpenStandard, Market deconstruct, and Task

Automation.

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Q4: As a technology, how does the Internetcompare with the telephone?

Telephone is a mediating technology, has globalreach, and has network externality.

In contrast, the Internet has properties thatcreate opportunities beyond those possible withthe telephone, television, postal mail, or othercommunication media.

It is these differences that excite marketers andmakes them wonder how to best capitalize onthem.

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Q5: What are some of the marketing implicationsof Internet technologies?

1. Bits not atoms: Can be stored, sent, receivedinstantaneously. Text, audio, video, graphics, andphotos can all be digitized, but digital productscannot be touched, tasted, or smelled.

2. Mediating technology: Peer-to-peerrelationships (business partnerships, auctions,music file sharing etc) can be formed regardlessof geographic location.

3. Global reach: Opens new markets and allows

for worldwide partnerships, employeecollaboration, and salesperson telecommuting.

4. Network externality: Businesses can reachmore of their markets with automated

communication, and consumers can disseminatebrand attitudes worldwide in an instant.


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Di i Q ti 6


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Discussion Question 6 Q6: In the context of e-marketing, what does

the medium is not the appliance mean?

Digital mediaare simply data that can be sent toviewers a number of ways.

Television programs, radio shows, news, movies,books, and photos are sent by their creators in

electronic form via satellite, telephone wires, orcable, and then viewed by the audience onreceiving appliances such as televisions,computers, radios, cell phones, PDAs, and others.

Contrary to popular usage, the receiving

appliance is separate from the media type. Inother words, watching a television set doesntmean one must be viewing televisionprogramming. Computers can receive digitalradio and television transmissions, and televisionsets can receive the Web.

Di i Q ti 7


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Q7: Describe the important Internet properties

that affect marketing Answer7: As answered earlier

Di i Q ti 8


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Discussion Question 8 Q8: What fundamental changes has the Internet

brought to marketing?

The balance of power is shifting to buyers. Coshave practically lost control of brand images dueto blogs, online bulletin boards, and other onlinecommunication. Other changes include:

Market fragmentation: Internet put finality to thistrend by extending to its ultimate a market sizeof one customer - and prompted marketers tocreate products and communication to small

target groups. Death of distance: Geographic location is no

longer a factor when collaborating with businesspartners, supply chain firms, or customers, or just

chatting with friends.


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Q9: As a marketer, do you agree with theexecutives who say better quality customerrelationships is one of the most important e-business benefits? Why?

As competitors and consumers can easily andquickly check prices by visiting their respective

Web sites, the need for additional value addedattributes or services is very enhanced. In fact, selling firms must differentiate their

products on some basis other than price that is

important to buyers: non-price competition. Undoubtedly better quality customer relationshipsis critical in differentiation their product in thisincreasingly commoditized market.



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Q10: As a consumer, are you likely to benefitwhen e-business becomes just business in thenear future? Explain your answer.

Eventually, online integration of e-business intoeveryday life is expected. Ubiquitous existence of

technology will create a highly specialized marketfor consumers allowing them to find specializedproducts with greater ease.

Very likely consumers buying habits and other

data will be recorded leading to privacy issues.

The just business part will seamlessly come asmore and more users adopt technology of future,

the way telephones and TV changed marketing!



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Q11: Some economists suggest that the increase in e-commerce within the B2B market will lead to greater

competition and more goods and services becomingcommodities, meaning they compete solely on price. Howdo you think this competition is likely to affect buyerswithin the B2B market? How would it affect sellers?

Answer: Competition might increase because purchasing firms caneasily and quickly check prices for competing selling firms simply byvisiting their Web sites. In fact, the selling firm will send e-mail andprovide customized Web pages to make it even easier for buyers.Sellers can similarly view competitors prices and thus may try tomatch them. In this environment, firms must differentiate theirproducts on some basis other than price that is important to buyers:non-price competition. They can use the Web to help them byconducting market research to see what customers want, how theyperceive various competitive products, and by using these data tomodify product offerings. They further can use the Web to customize

communication to buyers thus adding value.



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Discussion Question 12 Q12: What concerns about consumer privacy are raised

by the increased use of wireless computing and handheld

devices outside the home or workplace? Privacy refers to: the right to be left alone, and the

right to keep ones personal information private.

With regard to wireless computing, one big concern is

text message spamming. Another is can intercept wireless transmissions, accessing

personal information sent over wireless networks. With services that broadcast data throughout the air,

consumers have reason to be even more concerned. The

same issues with privacy, credit cards numbers, personalinformation, etc. apply, except now people can listen inand even jump onto your network.

Encryption standards are still widely debated. In futurewith mobile commerce and automated account transfers

over wireless networks, security will become paramount.



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Q13: As a consumer, how will your life changewhen the Semantic Web becomes a reality?

Consumers will define tasks for their personaldigital agents, which will search for pieces of dataand return them as movies to the television set,

appointments to the PDA, contact information tothe address book, and more. There could be many future scenarios. For

example, one could be personal agents tosynchronize personal calendars, personalizeddatabases, and entertainment on demand. TheInternet refrigerator could scan products the userremoves, and either automatically find recipesonline, or add them to the shopping list if not

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