Transcript elc310day20
ELC 310 Day 19 Agenda Questions? Two major assignments Left – Case study analysis of an existing case – Creation of a case study Last week of the semester 16% Case Study Proposals Due Nov 29 – – Week after break 10% 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 – – Instructor presentation of case study analysis Student Case study analysis presentations December 6 – Student Case study analysis presentations Albert Chap 13 & 14 December 16 – – Student Case study analysis presentations December 13 – December 2 – December 9 Albert chap 4 November 29 – November 22 – Albert Chap 2 & 3 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 – – – – – – – – Utilities BI Consumer Packed Goods CRM Chap 11 – – Bot-for-Profit CRM Chap 10 – Hardware distributor SCM Chap 8 Chap 9 – Steel Industry ERP Chap 7 – Specialty manufacturer CRM Chap 6 – Insurance SCM Chap 12 – – Financial Services E-commerce and BI Chapter Two The Marketing Mix Transformation 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 Price Promotion Place Caveat emptor Customer Solution Customer Cost Communication Convenience 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 – – B2C – – definition size/opportunity 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 Chapter Three The Value Bubble 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 One Attract (Building Traffic) Attract Stakeholder to Site or Storefront piggyback marketing (all points of contact) build it they will come misconception consistent branding (online and offline) “Formula to Attract” Offline Online PR Buzz Traditional Stores Links Microsegmentation Involvement Technology Attraction Flash Graphics – Jakob Nielsen’s work – – dancing baloney Useability http://www.useit.com/ BI component Figure Two Engage--Building Loyalty Engage Stakeholders most sites lose here content & visual criteria unique interaction (value-added) Engage Strategies Form and Substance BI “One voice” EC--the sale Client side/server side Beginnings of CRM Figure Three Retain--Strengthening the Relationship Retain Stakeholders (Repeat Vis it s and Building Loy alty) hidden expense database integration re-f res h, re-f resh s w itching costs online s erv ic e quality 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 Four Learn--Building the Database Learn about Stakeholders unprecedented intelligent marketing for personalization or customization segmentation sources (online "footprint") Learning Strategies Integrated databases – offline and online Log files Clickstreams GIST model – – – – Gather Infer Segment Track Figure Five Relate--Data-driven Interactions Relat e t o S takeholders great est contribut ion custom ize t he int eract ion segment ati on int eract ivit y (at tribut e of com muni cati on) 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.