Transcript What is e-marketing

E-markets 2000
Craig Lizotte
Overview
What is e-marketing
The use of information technology in the
processes of creating, communication,
and delivering value to customers, and for
managing customer relationships in ways
that benefit the organization and its
stakeholders. (result of information
technology applied to traditional
marketing.)
History
As new technologies emerged in the early
90 there was a seen potential to capture
new emerging markets on the web.
E-markets peaked in 1999-2000 then
dropped into a recession slowly
recovering.
Goals and strategy
Market procurement was the ultimate goal
due to lack of finances some companies
would have a difficult time to penetrate the
market. Some competitors joined forces to
synergistically build a new market, this
wasn’t feasible to some companies since
80 year old competitors didn’t want to
team up for the short term. Which made it
Winner takes all.
How does e-marketing effect
traditional marketing
Increases efficiency and effectiveness in
traditional marketing functions.
Technology of e-marketing transforms
many marketing strategies resulting in new
business models.
Bleeding edge Technology
New emerging technology means that the waters have
not been tested.
Sellers must Adapt to the rapid changing environments.
They must evolve to survive until it reaches and
equilibrium.
Strategy is a means to obtain a particular goal and
identify your target customer and market to them as
needed keeping in mind the strategy of your competition
and staying ahead of them. Even if in the short term it
hurts your business it will pay off in later off. (winner
takes all.)
How the internet changed marketing
Reach to larger customer base
flexibility and ease of use
Personalization
Interactivity
Asynchronous communication
Market Segmentation
Geographic
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Location
Behavior
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Demographics
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Age
Income
Gender
Education
Ethnicity
Psychographics
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Activities
Interest
Opinions
Personality
Values
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Benefits sought
Usage
Brand loyalty
User status
Types of Markets
B2B
B2G
B2C
C2C
Value Bubble
In order to create a market there must be a demand.
Attract
Engage
Retaining
Learn
Relating
advertisers can Attract people to their site to engage and
retain them into online communities.
ex: Such as youtube, myspace, e-mail sites.
Competitive Risks
Monopoistic – large seller to buy ratio
Oligopolistic – few sellers many buyers
any decisions one seller makes has an
effect on the price of the other sellers.
Fear that e-markets would commoditize.
Primary Stake Holders
Employees
Business customers in the supply chain
suppliers
Lateral partners
Investors
Law makers
Financial institution
Frame work
Efficient Commerce Hub
Dynamic marketplaces
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Neutral Exchange
Buyer Advocate
Seller Advocate
Content and Community Portal
7 Step Marketing Plan
Situation analysis
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SWOT analysis
Strategy
Tier 1
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Positioning
Differentiation
Targeting
Objectives identify goals for e-market
strategy.
Tier 2
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Offer product
Value (price)
Distribution (place)
Communication (promotion)
CRM/PRM
Implementation
Budget
Evaluation
Evolution form ERP to E-Markets
ERP Core
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Common intracompany systems
Internal efficiencies, lower cost
Real-time Data access improves service to customers
Extended enterprise (extranets and Web storefronts)
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One-to-many links between company and trading partners
Reduced costs and time to market due to limited information sharing
and collaboration
E-Markets
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Many to many communication
Product, process, and availability transparency
New pricing and sales models
Automation of business processes
Enhanced data exchange leading to collaboration
Benefits consumer
Benefits
24/7
Find any thing you
want
Save travel expense
Convenient
Compare prices
Weakness
Can’t try it before you
buy it
shipping time
Trust in seller
Seller
Benefits
Out sourcing
Greater customer reach
Reduced store store
inventory cost
Reduced inventory to pay
overhead
Ability to reach global
markets
If out of stock can find
another suppler or can sell
their surplus inventory
Weakness
Gaining market share
Risk
Staying competitive
Bigger market = more
competition.
Competition is a few
clicks away which gave
the buyer more power.
Industry and market discussion
In 1999 there were15 countries connected
to the internet.
Number of people on the web where 284
million users.
75,000,000 WebPages.
Since this industry has been around for 10
years it is new which can allow it to move
in any direction.
Perspectives
Technology infrastructures
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XML
Internet as technology allowed
Greater reach
flexibility and ease of use
personalization
interactivity
asynchronous communication
DSIR
The value of the hub increase with the
number or users connected to it.
SxB
S = connected suppliers
R = connected Buyers
= S x B potential trading relationships.
competitive risks
Monopoistic – large seller to buy ratio
Oligopolistic – few sellers many buyers
any decisions one seller makes has an
effect on the price of the other sellers.
Missed opportunities
Companies who didn’t invest in internet
because they fear commoditization.
Problems
Predicted that by 2004 5 mega exchanges
would dominate most e-marketing
Chick and egg concept
Ineffective efforts to set standards
XML had many dialects standards were
needed.
Legitimate and qualified suppliers
Internet users are becoming indifferent to
banner adds, popup adds and spam.
Concerns with privacy
Used to better target customers.
Cookies
Data mining
Identity theft
Surveys
Trust in online exchange