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Chapter 1
Examples:
– Email and Newsgroups
– Web TV, Cell Phones, and text-only browsers
– Bar Code Scanners
– Cable Modem and DSL connections
What is E-Business (EB)?
Defined as the continuous optimization of a firm’s
business through digital technology
Where,
• EI = e-commerce
• BI = business intelligence
• CRM = customer relationship management
• SCM = supply chain management
• ERP = enterprise resource planning
E-Business continued
EC - uses digital technologies to enable buying/selling
Effectiveness Customer
(Incremental sales, Business Process relationship
customer retention) management
Efficiency Brochureware,
(Cost Activity Order processing
reduction)
E-Marketing:
– Use of technology to increase efficiency of
marketing
– Increases company profitability and adds
customer value
The Big Picture
Too much digital technology creates:
– Decreasing cultural/language differences
– Workaholism; less family time
– Social class divisions because of high literacy
requirements
– Intranet smallest
– Corporate portal
– Extranet
– Hub
– Portal
• Lycos
• Excite
– Web
– Internet largest
The Internet
Statistics: Forrester.com; ACNielsen
Businesses
Technology
Five Markets
Business-to-Consumer (B2C)
– Example: www.iGo.com
Business-to-Business (B2B)
– Example: www.amazon.com
Consumer-to-Consumer (C2C)
– Example: www.eBay.com
Business-to-Government (B2G)
Government-to-Consumer (G2C)
Revenge of the Consumer
1930s:
– Caveat emptor (“let the buyer beware”)
2000s:
– Consumers have control
Opportunities:
– Ways of generating revenue
– Greater interdependence in their value chain
Exhibit 1 - 5 Amazon.com Uses Mass Customization to Personalize
Web Pages
Source: www.amazon.com Amazon.com is a registered trademark or
trademark of Amazon.com, Inc. in the United States and/or other
countries. © 2000 by Amazon.com. All rights reserved.
Technology
Can lower costs on staff and paperwork
Security issues
Low bandwidth
E-Marketing Delivers
Value = Benefits – Costs
Price
Distribution
Marketing Communication
Relationship Marketing
Marketing Mix Component Chapter Business Model
Content sponsorship
Direct selling
Infomediary
Intermediaries
Broker: Online exchange
Online auction
Distribution 5 Agent: Manufacturer’s agent
Affiliate program
Metamediary
Virtual mall
Shopping agent
Reverse auction
Buyer cooperative
E-tailer Bit vendor
Tangible products
Online advertising
Marketing Communication 6 Online sales promotion
Content publishing
E-mail
Models:
– Content Sponsorship Model
– Direct Selling Model
– Infomediary Model
– Intermediaries Model
Content Sponsorship Model
Companies create valuable content or
services on their Websites
Self-advertising
– Examples:
• Yahoo!
• gURL.com
Direct-Selling Model
Manufacturers eliminating channel
intermediaries and sell directly to
consumers
Known as “Disintermediation”
Dell Computers
Infomediary Model
An organization that collects and sells
information about consumers or businesses
Hoover’s
Intermediary Model
Brokers and agents bring buyers and sellers
together but neither purchase nor take possession
of the actual products
– Brokerage firms
• E-Trade, E-Bay, Metalsite
– Agent firms
• Travelocity
Models:
– Online Advertising Model
– Online Sales Promotion Model
– Content Publishing Model
– Email Model
Online Advertising Model
Firms purchase advertising space on
Websites owned by other firms
Dogpile
Online Sales and
Promotion Model
Sampling digital products
E-Music
Content Publishing Model
A company’s Website
Brochureware
Pure Fishing
E-Mail Model
Three types:
– Target Promotions
• Companies target users through research and data mining to
send e-mail
• Bulk Email Software Marketing
– Reverse Channel
• User to firm
• Customer service
• Bass Pro Shops
– Consumer-to-Consumer
• Word of mouth
Relationship Marketing
Customer Relationship Marketing (CRM)
Model:
– Community Building Model
Community Building Model
Website developed to create a special interest
community
Ivillage
Marketing Plan Tasks
Situation Analysis
– Environmental Factors – Marketers collect and
analyze external elements that include economic
analysis, social and demographic trends, and more
– Market opportunity analysis – This entails a supply
and demand analysis along with a SWOT analysis.
The SWOT analysis determines the strengths,
weaknesses, opportunities, and threats.
3. Set objectives
Environmental Scan
6. Budget
7. Evaluation plan