ELECTRONIC AGE MARKETING

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Transcript ELECTRONIC AGE MARKETING

ELECTRONIC AGE MARKETING
 Internet basics
 Domains and domain
names
 Economics of ecommerce
 Desktop publishing in
Word
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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Internet Basics
 Access to the Internet
 Dial-up
 Broadband
 For businesses and organizations (e.g., T1, T3)
 For individuals
 Cable, DSL, other
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Hardware
 Servers
 Local
 Remote
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Routers—direct “traffic” to and from work stations
 Large office
 Home networks
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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)
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More Internet Basics
 Intranets (within organization) vs. extranets
 Web addresses
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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)
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Domain names
 Uniform Resource Locators (URLs)
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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
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Domain
name
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Top
level
domain
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Other examples
 http://mea.consumerpsychologist.com
 http://Ivcampus.sdsu.edu
 http://www.amazon.co.uk
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Wireless connections
 Reach
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“Hot spots” vs. broader reach
 Speed
 Security
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Economics of Internet Commerce
 Intense competition for large demand products (large quantity
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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
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MARKETING IN THE ELECTRONIC AGE
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Considerations in Evaluating ECommerce Potential
 Value-to-bulk ratio
 Ability of consumer to evaluate quality and fit
through online description
 Extent of customization needed
 Geographic dispersal of consumers
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How Suitable For Internet Commerce?
Are There Differences Among Segments?
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Business Models of e-Commerce
 Business model design
 Revenue models
 Customer/seller models
 E-auctions
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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
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Revenue Models
 Revenue streams
 Evaluating streams
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Strength
Stability
Cyclicality
Resource needs
 Interrelationships between streams
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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
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Types of Business (Pure) Models
Seller
Buyer
Business
Consumer
Business
B2B
B2C
Consumer
C2B
C2C
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Hybrids
 B-2-B+C (Business to business and
consumer)
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E.g., Staples.com
 Complex:
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Amazon.com: B2C and C2C
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B2C
 Direct sellers
 Intermediaries
 Advertising-based businesses
 Community-based model
 Fee-based model
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Characteristics of Successful B2C
Companies
 High number of visitors
 High conversion rates
 Higher revenue per transaction
 Higher average gross margin
 No impact of
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Number of transactions per consumer
Acquisition cost
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“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
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B2B
 Typical characteristics
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High volume, value
Purchase specificity
Team buying/decision making
Long term relationships
Leasing issues
Competitive bidding
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C2C
 Usually require intermediary (e.g., eBay)
 Issues of reputation
 “Infrastructure” issues (e.g., ability to take
credit card payments)
 Economics of
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Labor (seller)
Cost of search (buyer)
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C2B
 Rare category
 Agency coordinating sales of
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Property (e.g., antiques)
Personal skills
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E-Auctions
 Types
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English
Dutch
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Speedier
May result in lower prices when multiple items are
sold
 Bidding behavior issues
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Timing of bids
“Sniping”
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Desktop Publishing in Word
 Desktop publishing software
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Word, WordPerfect
Fancier programs: MS Publisher, InDesign,
Adobe Illustrator, Macromedia Fireworks,
Adobe Photoshop
 Possibilities within Word
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Brochures
Posters
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Some Features
 Columns
 Tables
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Imported
Created in Word
 Graphics
 Fonts
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Tables
 Use for
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Control of formatting—e.g., course document
header
Control of placement—e.g., graphics
Organization of information
 “Merge” and “split” cells
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Posters
 Paper orientation
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“Portrait” (regular)
“Landscape” (rotated 90 degrees)
 Tables for graphics
 Fonts
 Images
 Document borders
 Fonts
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Fonts
 Monospace (e.g.,
Courier) vs.
proportionally spaced
(e.g., Arial, Times
Roman)
 Font sizes
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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
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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
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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)
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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)
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Brochures
 4 page 5.5x8.5 brochure:
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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
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Printing Brochures and Posters
 Large quantity:
 File submitted to
printing firm
 Choice of paper
 Glossiness
 Thickness
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 Small quantity in-office
printing
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Large posters
Laser printing vs. inkjet
Inkjet usually
provides superior
quality
 Laser is usually
cheaper
Paper choices
 Absorbency
 Thickness
 Glossiness
Quality of print
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