Transcript Document

Slide 4.1
Marketing in the Internet age
Chapter 4
Slide 4.2
Forces shaping the Internet age
Figure 4.1 Forces shaping the Internet age
Slide 4.3
Major forces shaping the Internet age
• Digitalisation and connectivity
– The flow of digital information requires
• Intranets, Extranets and the Internet
• The Internet explosion
– Key driver of the “New Economy”
Slide 4.4
Major forces shaping the Internet age
• New types of intermediaries
– Brick-and-mortar firms often face
disintermediation from click-only competitors
– The click-and-mortar business model has been
highly successful Jfr banker
• Customisation and customerisation
Slide 4.5
Marketing strategy in the new digital age
• E-business
– Uses electronic means and platforms to
conduct business
• E-commerce
– Facilitates the sale of products and services by
electronic means
• E-marketing
– Includes efforts that inform, communicate,
promote, and sell products over the Internet.
Slide 4.6
Benefits of the Internet
To buyers:
• Convenience
• Easy and private
• Greater product
• Access to comparative
• Interactive and
Vilken är baksidan?
To sellers:
• Relationship building
• Reduced costs
• Increased speed and
• Flexibility
• Global access, global
Slide 4.7
E-marketing domains
Figure 4.2 E-marketing domains
Slide 4.8
B2C (business to consumer)
• The online selling to final consumers
– Now more mainstream and diverse
• Has created new targeting opportunities
• Online behaviour differs by demographic
– Online consumers differ from traditional off-line
• They initiate and control the exchange process
• Value information highly
Slide 4.9
B2B (business to business)
• B2B sales far exceed B2C sales
– B2B are estimated to reach €3.6 trillion in 2005
• Open trading networks
– Huge e-marketplaces bringing buyers and
sellers together
• Private trading networks
– Link sellers with their own trading partners
Slide 4.10
C2C (consumer to consumer)
• C2C websites help consumers exchange
goods or information
– eBay is one example
• Auction sites facilitate the exchange process
– By allowing access to a much larger audience
• Newsgroups / forums
– Help consumers to find and share information
Slide 4.11
C2B (consumer to business)
• Allows consumers to search out sellers, learn
about offers, initiate purchase or dictate
purchase terms
– is an example
• Some sites facilitate the feedback process
between customers and companies
– is an example
Slide 4.12
Conducting e-commerce
• Click-only companies
– E-tailers, search engines and portals, ISPs,
transaction sites, enabler sites
• Click-and-mortar companies
– Channel conflict was initially a concern
– E-commerce often created new customers,
rather than cannibalising existing ones
– Many firms now enjoy greater success than
their click-only competition (e.g.Tesco)
Slide 4.13
Setting up for e-marketing
Figure 4.3 Setting up for e-marketing
Slide 4.14
Conducting e-commerce
Creating websites
Placing ads and promotions online
Creating or participating in web communities
Using email and webcasting
Slide 4.15
Seven C’s of website design
layout •
budskap •
• Community
Förenar olika
• Communication
• Connection länkar
• Commerce
• Customisation
Slide 4.16
Online forms of ads and promotions
Banner ads/tickers
Förhatliga popups
Browser ads
Content sponsorships
Viral marketing Word-of-mouth
Slide 4.17
The promise and challenges of e-commerce
• For most companies online marketing will
remain just one important approach to the
• Two major sets of concern:
– Profitability
• Few B2C companies are profitable
– Legal and ethical issues:
• Online privacy and security
• Internet fraud, the digital divide, access by
vulnerable or unauthorised groups
Case Cool diamonds s127