Transcript Document

Chapter 3:
E-Business Communication
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 1
LEARNING OBJECTIVES (1)
• List the audiences with whom an e-business
would need to communicate.
• Compare and contrast a one-to-many and
many-to-many communication model.
• Explain how the communication process
works.
• Describe the role involvement plays in Web
site design.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 2
LEARNING OBJECTIVES (2)
• List the various types of e-business
communication platforms.
• Recommend a strategy for developing an
email marketing campaign.
• Conceive an integrated internal
communication system for a business.
• Specify the overall economic welfare
considerations related to the use of ebusiness communication platforms
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 3
Case 3.1: In The Web Driving Seat
• Thinking Strategically
– Visit the BMW Web site (www.bmwusa.com).
– Determine if the site is designed just for current BMW owners or if
it is targeting potential owners as well.
– List the types of e-business communication platforms used by
BMW.
– How does BMW develop and maintain relationships using these
platforms?
– Decide if this site appeals to individuals with high or low levels of
automotive involvement.
– Visit a Web site for another automobile manufacturer.
– Determine if that site is designed to appeal to the same individuals
as the BMW site.
– Specify why a potential customer or owner would return to this
site.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 4
The Internet as a Communication
Medium
• The Internet is used to communicate to
constituencies or audiences both external and
internal to the e-business.
– External audiences include customers, stockholders,
the general public, and other specifically targeted
audiences.
– Internal audiences can include both employees and
suppliers.
• Integrated marketing communication: Uses a
variety of communication technologies to reach
organizational goals.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 5
Hypermedia
• Hypermedia allow companies to deliver
targeted messages to specific audiences.
– Hypermedia environments are distributed
network that allow for hyperlinks and
nonlinear search and retrieval processes to
collect information.
• Examples: World Wide Web, interactive television,
interactive Web based cellular telephones, and other
portable devices.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 6
Linear Communication
• Traditional media often follow a one-tomany communication model where a
single promotion, such as a print ad or
television commercial, is sent by one source
and seen by many without the opportunity
for immediate feedback.
• Linear communication follows a scripted
flow.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 7
Non-Linear Communication
• Interactivity and hyperlinks allow for a type
of two-way communication between the ebusiness and its audience.
• Non-linear communication allows for a
free flow and exchange of information.
– Most conversations individuals have with
others are non-linear. Good sales presentations
are free flows of communication.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 8
Figure 3.1: Hypermedia
Connections to Multiple Pages
For use with Strategic Electronic Marketing:
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Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 9
Figure 3.2: The Communication System
COMMUNICATION SYSTEM
SENDER
Encode
NOISE
MESSAGE
Media
Decode
NOISE
TARGETED
SEGMENT
FEEDBACK
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 10
Many-to-Many Model (1)
• The many-to-many model places the
hypermedia in the center of the
communication process.
• Hypermedia become a meeting place where
anyone can communicate with anyone else.
• Both firms and customers can obtain and
deliver content.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 11
Typology Of Interactions
• Consumer-to-consumer (C-to-C)
– (Internet based)
• Business-to-consumer (B-to-C)
– (Internet based)
• Consumer-to-business (C-to-B)
– (Internet based)
• Business-to-Employee (B-to-E)
– (Intranet based)
• Employee -to-Employee (E-to-E)
– (Intranet based)
• Business-to-business (B-to-B)
– (Extranet based)
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 12
Figure 3.3: Many-to-Many Model
Custome
r
Fir
m
Custome
r
Fir
m
Custome
r
E-Business
Communication
Platforms
(Hypermedia)
Employe
e
Employe
e
Custome
r
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 13
Table 3.1: E-Business
Communication Platforms
Platform
Icon
Description
Web page
An HTML based information document.
Text
Email
A text based computer-to-computer messaging system.
HTML
Email
A HTML based computer-to-computer messaging
system designed to look and work like a Web page.
HTML based email is allowing for the growth of rich
media email, or the inclusion of multimedia.
Chat
A chat online involves a number of individuals who
leave messages for others to see. These can be placed in
a repository or chat room for viewing at later times or
could be “live,” with individuals writing to others in
real time.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 14
Table 3.1: E-Business
Communication Platforms
Platform
Icon
Description
Discussion
Group
(Forum)
Allows individuals to add to an initial message with
successive messages. Newsgroup users add to a thread,
or single conversation by indicating a response to the
prior message. Messages are available for others to read
and are indented under topic headings:
Initial Post
First response
Second response, etc.
Instant
Message
The process of send messages instantaneously from
individual to individual through land line based or
wireless devices.
Rich
Media
Rich media refers to the use of Internet technology that
adds more than just text, graphics, or sound alone.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 15
Hypermedia Communication Goals
• A Web site can provide a little or a great
depth of information for a site visitor.
• A single site can be designed for goaldirected buyers as well as for those who are
net surfing and are looking only to
experience the site.
– The Web site can be designed to allow links to
other individuals who share the same interests.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 16
High Involvement (1)
• Individuals with high involvement for a
product or product category are:
– likely to see a topic as interesting or important
– attend to information more
– are more likely to comprehend complex messages
– may be willing to spend more time with a Web site.
• Involvement levels of individuals can be high when
they are goal directed, such as attempting to gather
information to make a purchase.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 17
High Involvement (2)
• Individuals can also have high enduring
involvement with products or product
categories, and engage in net surfing to
obtain high levels of interactivity with sites.
– Enduring involvement exists when an
individual has a high level interest in a topic
over and extended time period.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 18
From Public Relations to
Supporting Relationships
• Brochure sites are designed as an advertising or
public relations tool.
– May contain the same information as a business’ print
material.
– These sites are designed to make visitors aware of and
informed about a business's image or products.
– This can be seen as a simple extension of traditional
media campaigns.
– Brochure sites should be designed to enhance the
overall promotional campaign.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 19
The Public Face of a Business
• For non-brick and mortar pure-play Internet
businesses, the Web page may be the only
chance a customer has to interact with the
business.
• The Web page must project and protect the
image of the company.
• Protecting a company's image is a concern
on the Internet.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 20
Web Sites and Company Image
Some companies that have registered domain names
to prevent attack include:
Charles Schwab: !#%*schwab.com and
schwab!#%*.com.
BellAtlantic: Bigyellow!#%*.com
Chase Manhattan Bank: Chase!#%*.com
Cox Communications Inc.: Cox!#%*.com
Vail Resorts: vailresorts!#%*.com
Volvo Cars of North America: volvo!#%*.com
Playboy Enterprises: Playboy!#%*.com
!#%* represents a deleted offending word
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 21
Relationship Sites
• Relationship sites target individuals who
may have higher levels of information
involvement.
– Sites can designed for individuals with high
levels of enduring involvement.
– They often contain games, chat groups, or other
interactive components to maintain
relationships with customers.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 22
Case 3.1 Banking on a Relationship
• Thinking Strategically:
– Describe how Wells Fargo develops and maintains
relationships with customers.
– Speculate on the future of a wireless as a banking tool.
– Describe the advantages that individuals could gain by
wireless banking.
– Justify the use of ATMs for broadband Internet delivery.
– Speculate on how this could make a transition to other
broadband devices for individuals.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 23
Communicating Through
Extranets and Internets
• Extranets and Intranets use the common IP
interface and have the same communication
considerations as Internet based Web
communication.
• Intranets use browsers, servers, and Internet
protocols, but are not open to unauthorized users.
– Bandwidth inside organizations is often higher than
home users allowing for the potential for
applications such as voice, video, and conferencing
online.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 24
E-Mail Marketing
• E-mail marketing allows an e-business to direct
messages to specific market segments or to customize
messages for individuals, much the same way as direct
mail.
– E-mail is the most common e-business communication platform.
– Targeted e-mail is one of the most effective hypermedia
communication platforms.
• Targeted e-mail allows firms to directly contact
individuals.
– Targeted e-mail works best with individuals who have already
given their permission to receive messages.
• Permission marketing is where the customer ops-in, or signs in
at a Web site and agrees to receive email based direct marketing.
• Virtual prospecting using bulk lists is not permission based.
While this can be very cheap, the email can be seen as spamming.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 25
Table 3.2: Types of Op-Ins
Alternative
Description
Example
Single
Opt-In
Customers supply email address or check on a
box to allow email to be sent. This gives
permission for the company to send email, or to
allow other third party companies to send email
to the individual. Customers are notified as to
the terms of the permission.
Do you wish to subscribe to
our weekly email newsletter?
Yes No
Double
Opt-In
As in the single opt-in, customers supply email
address or check on a box to allow email to be
sent. Customers are expected to reconfirm by
replying to a confirmation email.
This maximizes the chances of not being seen as
sending spam.
Thank you for registering for
our email letter. In order to
serve you better, please log in
and update your email
preferences. You can log in at
the web address below:
https://account.companyX.com
/login.html
Thank you!
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 26
Table 3.2: Types of Op-Ins
Alternative
Description
Example
Opt-Out
A subscription is assumed and the customer
must click to remove the subscription if they
wish to opt-out of receiving email for the
company or other third party companies.
Occasionally we send our
subscribers email special
offers from relevant
businesses/organizations. If
you do NOT want to receive
such offers, please check here.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 27
Recommendations For Developing
An Email Marketing Strategy
•
Capture email addresses at a point of customer contact.
–
•
Collect information that can be used to personalize the email.
Don’t send unsolicited bulk email. This has a higher cost per sale
and risks being seen as spam.
Clearly state the confidentiality policy.
•
–
–
•
Clearly indicate that email will be used in-house only.
Ask permission before sending to third party.
Acknowledge the registration with a return email.
–
–
•
A thank you and restatement of subscription decreases likelihood of
opting out.
Respond quickly with first targeted email.
Maintain records of registration.
–
•
Allows for the handling of complaints from targeted individuals.
Include clear instruction on how to unsubcribe.
–
Attempt to maintain low unsubscibe rates.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 28
Recommendations For Developing
An Email Marketing Strategy
•
Content:
–
Personalize content.
•
–
–
Create content for both text and HTML formats.
Keep content short for small file sizes and quick reads.
•
–
–
•
Avoid untargeted messages.
Hyperlinks can provide access to larger amounts of content at a website,
but be sure they link to content relevant pages.
Change email content over time to limit individuals opting out.
Test messages and analyze results.
Assign an email manager or team.
–
–
•
Have a contact person to handle responses and problems.
Optional: hire an ASP for email services.
Keep email list secure.
–
Do not allow email receivers to obtain lists so a “reply to all” does not
create spam.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 29
Table 3.3: Cost Effectiveness Of
Direct Marketing Alternatives
Customer Acquisition
Customer Retention
Direct Mail
to Rented
List
Banner
Advertising
Email to
Rented List
Direct Mail
to In-House
List
Email to InHouse List
Cost per 1,000
(CPM)
$850
$13
$200
$686
$5
Clickthrough
NA
0.8%
3.5%
NA
100%
Purchase Rate
1.2%
2.0%
2.0%
3.9%
2.5%
Cost per Sale
$71
$100
$286
$18
$2
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 30
Case 3.2 Email Flower Power
• Thinking Strategically
– Use Figure 3.4 to illustrate how Proflowers
models its targeted email campaign.
– Explain why this campaign would be effective
for these customers with this product.
– Evaluate the outcome measures for this
campaign, determine if these could be
improved by the use of other measurements.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 31
Figure 3.4: Targeted Email
Marketing Model
Customer 1
Individual’s
Permission
Purchased
Database
(Prospects)
Dynamic
Data
Email
Server
Target
Website
Directed
Links
Sniffer
Viral
Marketing
Friend’s
Customer 2
Email
Current
Customer
Database
(relationship
maintenance)
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 32
Spam
• Spam is the practice of sending unwanted email to
a large number of individuals.
– Spam is unlike postal junk mail, e-mail spammers
do not need to purchase postage for every message
sent and therefore are able to greatly expand the
number of people they can reach. This shifts costs
from the sender to the network and receiver.
– Spammers believe that the more email sent, the
better their chances.
Mail Abuse Prevention System (MAPS) (http://mail-abuse.org)
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 33
Mailing Lists &
Discussion Groups
• Threaded discussion lists (newsgroups, forums)
allow individuals to add to an initial message with
successive messages. This allows a newsgroup
user to add to a thread, or single conversation, by
indicating their response to the prior message.
Messages are available for other to read and are
indented under topics headings:
– Initial Post
• First response
– Second response
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 34
Instant Messaging & Chat
• Instant messaging (IM).
– Messages are send instantaneously from individual to
individual through buddy lists allowing individuals to
know when someone else is online. This could be a
friend, or someone who has been identified as having
shared interests.
• Chatting
– Online involves a number of individuals who leave
messages for others to see.
– This can be placed in a repository or chat rooms for
viewing at later times or could be “live” in that
individuals write to others in real time.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 35
Figure 3.5: Rich Media Process
Images
Sound
Graphics
Authoring
Software
Or HTML Based
Multimedia
Streaming
Server
Video
Programming
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 36
Free Speech
• Large media companies no longer control widely
broadcast public speech. Small independent
communications systems have shifted power.
• Political elections around the world have
demonstrated that candidates are able to use the
Internet to spread information at a fairly low cost.
• Political thoughts can also travel across borders
allowing dissidents, human rights information, and
alternative political parties to provide information to
those who gain access to the Web.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 37
Free Speech
• Free speech issues:
– Cybersmearing:
• defaming online.
– Rogue sites:
• allow individuals to express their feelings about a
companies, products, or organizations.
– Rumors:
• Spreading of un-truths online.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 38
Rumors
• The ease of posting information over the
Internet allows for the dissemination of rumors.
– This could be due to the lack of research
undertaken by the sender of information, or it
could be purposeful sending of misinformation.
– Internet users to learn to gain a critical eye for
information sent over the Internet.
– Consumers of Internet information learn "Net
Literacy" or how to evaluate information that
they find online.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 39
Netiquette (1)
• Netiquette: proper etiquette over networks.
– This includes the rules for common courtesy online
and the informal "rules of the road" for cyberspace.
• Basic considerations of going online with email
are:
• Be respectful of others online. Behave as if you
were having a conversation with someone in
person.
• The Internet is a global medium, others online may
have a culture, language, and humor that is
different from the sender. Jokes and sarcasm may
not travel well.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 40
Netiquette (2)
• Basic considerations of going online (continued)
• Respect the copyright on material reproduced.
• Don't send chain letters through e-mail. Chain letters
are forbidden on the Internet.
• When in a chat group, observe the discussion to get a
feel for the group culture before making comments.
• Use mixed case. UPPER CASE LOOKS AS IF
YOU'RE SHOUTING.
• Keep file sizes small.
• Don't send large amounts of unsolicited information
to people.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 41
Exercise 3.1 Evaluate Web Sites
• Read the E-Mailing to the Shower short
case.
• Evaluate the e-mail marketing campaign
used by the company.
• Use the Targeted E-Mail Marketing Model
(Figure 3.4) on page 85 to illustrate how
this campaign was designed.
• List the measurement criteria used to
determine if the campaign was successful.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 42
Exercise 3.2 Developing E-Mail
Marketing Campaigns
• Develop a strategy using e-mail marketing
techniques to market a product or service.
• Use the Targeted E-Mail Marketing Model
(Figure 3.4) on page 85 as a guide.
• Include information on the profile of the
market you plan to target.
• List the measurement criteria used to
determine if this was a successful campaign.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 43
Exercise 3.3 Devising a Strategy
for Intrafirm Communication
• Assume that you have been placed in charge of developing
an integrated e-business communication system to
facilitate employee-to-employee and business-to-employee
communication.
• Determine the types of communication needed within the
firm.
• Which platforms would best serve those communication
needs?
• Speculate on new platforms the employees may be using in
the future and decide how your business will respond to
these new technologies.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 44
Competitive Exercise 3.4
Devising a Strategy for
Business-to-Customer Communication
• Assume that you are asked to develop an integrated ebusiness communication system to serve your customers.
• What types of communication would your customers like
to have with your business?
• Identify the platforms that would best serve those
communication needs.
• What new platforms will your customer base be using in
the future?
• How will your business use these new technologies?
• Justify why your plan should be adopted by your company.
For use with Strategic Electronic Marketing:
Managing E-Business, 2e
Copyright 2003 South-Western College Publishing
Chapter 3 Slide: 45