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Agenda
Questions? Two major assignments Left
– Case study analysis of an existing case Week after break 10%
– Creation of a case study Last week of the semester 16%
Case Study Proposals Due Nov 29– Less than one page on the company you will be writing a case study
on and where you will be getting the research.– Brick and mortar company that used a eMarketing strategy
Starting today we will be in the text ebusiness.marketing– Friday, Nov 20 Chap 2 & 3– Tuesday, Nov 22 Chap 4
Schedule for last days of class
November 18– Albert Chap 2 & 3
November 22– Albert chap 4
November 29– Instructor presentation of
case study analysis December 2
– Student Case study analysis presentations
December 6– Student Case study
analysis presentations
December 9– Student Case study
analysis presentations December 13
– Albert Chap 13 & 14 December 16
– Written Case Studies Due– Quiz 4
December 22 in Finals week at 3PM
– Case study presentations
Case studies (must pick one by next Tuesday)
Chap 5– Specialty manufacturer– CRM
Chap 6– Steel Industry– ERP
Chap 7– Hardware distributor– SCM
Chap 8– Utilities– BI
Chap 9– Bot-for-Profit– CRM
Chap 10– Consumer Packed Goods – CRM
Chap 11– Insurance– SCM
Chap 12– Financial Services– E-commerce and BI
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 versus in side looking out
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 (can’t touch)– Simultaneity (produced/consumed)– Heterogeneity (different each time)– Perishability (can’t be stored)
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
Overview
Five Elements of the Value Bubble Applying the Value Bubble Attracting (Building Traffic) Engaging (Building Loyalty) Retaining (Strengthening the Relationship) Learning (Building the Database) Relating (Data-Driven Interactions) Business-to-Business Value Bubble Adaptations
McKinsey Model
A model for Marketing On-line Originated in mid-1990s Updated through ongoing research Three opportunities in original model
– lower cost of providing services– relationship building– redefine channel intermediation
Five Steps
Attract Engage Retain Learn Relate Extension from Learn: GIST (chapter 14)
– Gather->Infer->Segment->Track Most companies falter in last 2 steps
Figure OneAttract (Building Traffic)
piggyback marketing(all points of contact)
build it they will come misconception consistent branding(online and offline)
Attract Stakeholder to Site or Storefront
Technology Attraction
Flash Graphics
– dancing baloney
Jakob Nielsen’s work– Useability– http://www.useit.com/
BI component
Figure TwoEngage--Building Loyalty
m os t s ites lose h ere con ten t & visu a l c rite ria u n iq u e in te rac tion(va lu e-ad d ed )
E n g ag e S takeh o ld ers
Engage Strategies
Form and Substance BI “One voice” EC--the sale Client side/server side Beginnings of CRM
Figure ThreeRetain--Strengthening the Relationship
databaseintegration
hidden expense re-fresh, re-fresh
online servicequality
switching costs
Retain Stakeholders(Repeat Visits andBuilding Loyalty)
Retaining Strategies
Repeat Visits--site is the firm E-Service Quality Model
– Purchase– Loyalty– WoM
Web features and attributes– e-service quality dimension
Core Service Recovery
CLV precision Cookies
Figure FourLearn--Building the Database
u n p reced en ted
seg m en ta tion
in te llig en t m arke tin gfo r p e rson a liza tionor cu s tom iza tion
sou rces(on lin e " foo tp rin t")
L earn ab ou t S takeh o ld e rs
Learning Strategies
Integrated databases– offline and online
Log files Clickstreams GIST model
– Gather– Infer– Segment– Track
Figure FiveRelate--Data-driven Interactions
greatest contribution
segmentation
customize theinteraction
interactiv ity(attribute of communication)
Relate to Stakeholders
Relating Strategies
Segments of one Privacy (the paradox) Targeted communication
– emails
Competitive edge
Business-to-Business
Financial advisors’ study Adoption rate by web site features Different motivation (“buying criteria”)
– extrinsic– SCM, ERP leading to CRM– more obvious than B2C
Organic solidarity– "...Even where society relies most completely upon the division of labor, it
does not become a jumble of juxtaposed atoms, between which it can establish only external, transient contacts. Rather the members are united by ties which extend deeper and far beyond the short moments during which the exchange is made. Each of the functions that they exercise is, in a fixed way, dependent upon others, and with them forms a solidary system."
>> Durkheim, Emile. 1933. The Division of Labor in Society Translated by George Simpson. New York: The Free Press.