Introduction to eMarketing

1
Topic 2
e-Marketing (MAR3880) By Kanghyun Yoon

• Introduction to e-Marketing

2
Lecture Outline

• Review what strategic planning process and
  marketing are.
• Discuss why dot.coms were not successful in the
  market around 2000.
• Case study Dot-Combat The Web Grocers Wars
• Be familiar with important terminologies
  regarding e-Marketing.
• Discuss major forces that shape the Internet
  Age.
• Discuss the impacts or roles of the Internet
  technology, especially to the sellers and the
  buyers.
• Summarize for this question What is
  e-Marketing?

3
Review of What Marketing Is

• Lets review what we have studied so far.
• What is Marketing?
• What is the definition of marketing?
• Shortly speaking, marketing is ...
• Broadly speaking, marketing is
• Two goals of marketing
• Five Core Marketing Concepts
• Those core concepts are
• Customer Value Total Benefits Total Costs
• Strategic Planning Process
• What does that mean by strategic planning?
• Two sources of strategic planning.
• Four stages of strategic planning process.

4
Case Study

• Lets discuss the following case.
• Case study Dot-Combat The Web Grocer Wars
• Three questions to be considered
• Question 1 Why did they enter the online grocery
  market?
• What kinds of opportunities did they see from
  changing environment?
• Question 2 What kinds of competitive advantages
  do both companies have over the traditional
  grocery stores in offline market?
• What kinds of values are both companies trying to
  deliver to what types of customers (e.g., market
  segment)?
• Question 3 If you were their owner or marketing
  manager, what are you going to do to make this
  business successful?
• What should be the key successful factors for
  Peapod and Webvan?

5
Discussion of Why Dot.coms Failed

• Remember the case of Dot-Combat The Web Grocer
  Wars
• Several key unsuccessful factors
• Discuss why Dot.coms have failed in the market
  around the year 2000!!!
• Reasons are

6
Key Terminologies

• Be familiar with several important terminologies
  that characterize e-Business and e-Marketing
  environment
• Internet, Intranet, and Extranet
• e-Business, e-Commerce, and e-Marketing
• e-Business strategy, e-Marketing strategy, and
  e-Business model
• The value chain system (integrated logistics) and
  e-Procurement
• Brick-and-Mortar companies, Click-and-Mortar
  companies, and Click-only companies (e.g., pure
  dot.com)
• B2C (Business to Consumer), B2B (Business to
  Business), C2C (Consumer to Consumer), C2B
  (Consumer to Business)

7
Major Forces Shaping the Internet Age

• Digitalization and Connectivity
• From analog to digital information.
• A telecommunication network intranet, extranet,
  and internet.
• Information highway.
• The Internet explosion
• 1.5 billion of web surfers by 2007 (Computer
  Industry Almanac Inc. 2002).
• Impacts of the Internet technology on purchasing
  patterns of consumers.
• New Types of Intermediaries
• Disintermediation
• Reintermediation
• Customization and Customerization
• From standardization to customization.
• From being consumers to being prosumers.

8
Effects of Internet Technology

• How does the Internet technology change the way
  of doing business or marketing activities
  (Strauss et al. 2006)?
• Examples are
• Benefits of the Internet Technology
• To the sellers
• Benefits are
• To the buyers
• Benefits are

9
The Role of Internet Technology

• Consider two different perspectives regarding the
  role of the internet technology
• At the business level How does it improve the
  company value (e.g., customer equity)?
• At the marketing level How does it improve the
  customer value?
• Example Type 1 How do the following companies
  use the internet technology to achieve their
  competitive advantages in the market?
• Dell computer
• Wal-Mart
• Amazon.com
• Online auctions such as e-Bay and group buying
  companies
• Example Type 2 How do the following companies
  use the internet technology in delivering unique
  values to their customers?
• Dell and Nike
• Sonymusic.com, BMG Music club, and Columbia House
  Music club
• Amazon.com vs. Barnes and Noble
• Carnival
• Epinions.com

10
What is e-Marketing?

• e-Marketing practices are not new and not
  different from traditional marketing practices.
  Especially, when it comes to e-Marketing,
  marketing managers should focus on how to utilize
  the information technology in creating customer
  values and customer equity.
• In the textbook, Strauss, El-Ansary, and Frost
  (2006) say
• E-Marketing is the use of information technology
  in the process of creating, communicating, and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its shareholders.
• Simply speaking, given the definition of
  marketing by Kotler and Armstrong (2004),
  e-Marketing consists of
• e-Marketing traditional marketing internet
  technology.
• So, this class suggests the following definition
• e-Marketing is managing long-term profitable
  relationship with customers by delivering
  superior value and creating customer satisfaction
  that meets customers needs and/or wants, using
  the information technology, primarily the
  Internet.

11
Reference

• Strauss, Judy, Adel El-Ansary, and Raymond Frost
  (2006), E-Marketing, 4th ed., Pearson
  Prentice-Hall, New Jersey.
• Kotler, Philip and Gary Armstrong (2004),
  Principles of Marketing, 10th ed., Prentice Hall.
  (see chapter 1 and 2)
• Blackwell, Roger D., Paul W. Miniard, and James
  F. Engel (2001), Consumer Behavior, 9th ed.,
  Harcourt College Publishers. (see chapter 3 - 6)
• Zikmund, William G. (2003), Essentials of
  Marketing Research , 2nd ed., Thomson
  South-Western. (see chapter 1)
• McDaniel, Carl and Roger Gates (2004), Marketing
  Research Essentials, 4th ed., John Wiley Sons,
  Inc. (see chapter 1)