MarketingintheDigitalAge:MakingNewCustomerConnectionsChapter33-1Objectives•Beabletoidentifythemajorforcesshapingthenewdigitalage.•UnderstandhowcompanieshaverespondedtotheInternetwithe-businessstrategies.•Beabletodescribethefourmajore-commercedomains.3-2Objectives•Understandhowcompaniesusee-commercetoprofitablydelivergreatervaluetocustomers.•Realizethepromiseandchallengesthate-commercepresentsforthefuture.3-3•Inventeddiscountbrokeragecategory•FirstU.S.majorplayertogoonline•Initiallyofferedtwo-tieredtradingsystemtoprotectprofits/stopcannibalization•Laterbecamefirsttrueclick-and-mortarfull-servicebrokerage•Nowworld’slargeste-commercesite•85%onlinetrades;21%oftradevolume;StrongstockreturnCharlesSchwabCaseStudy3-4MajorForcesShapingtheDigitalAge•DigitalizationandConnectivityTheflowofdigitalinformationrequiresconnectivityIntranets,Extranets,andtheInternet•TheInternetExplosionKeydriverofthe“neweconomy”3-5•NewTypesofIntermediariesBrick-and-mortarfirmsoftenfacedisintermediationfromclick-onlycompetitorsTheclick-and-mortarbusinessmodelhasbeenhighlysuccessful•CustomizationandCustomerizationMajorForcesShapingtheDigitalAge3-6MarketingStrategyintheDigitalAge•E-business:useselectronicmeansandplatformstoconductbusiness.•E-commerce:facilitatesthesaleofproductsandservicesbyelectronicmeans.3-7MarketingStrategyintheDigitalAge•E-marketing:Includeseffortsthatinform,communicate,promote,andsellproductsandservicesovertheInternet.•E-commercebenefitsbothbuyersandsellers3-8MarketingStrategyintheDigitalAge•BuyerBenefitsofE-Commerce:ConvenienceEasyandprivateGreaterproductaccess/selectionAccesstocomparativeinformationInteractiveandimmediate3-9MarketingStrategyintheDigitalAge•SellerBenefitsofE-Commerce:RelationshipbuildingReducedcostsIncreasedspeedandefficiencyFlexibilityGlobalaccess,globalreach3-10E-MarketingDomainsE-CommerceDomainsTargetedtoconsumersInitiatedbybusinessesB2CTargetedtobusinessesInitiatedbyconsumersC2CC2BB2B3-11E-CommerceDomains•B2C•B2B•C2C•C2B•OnlineconsumersNowmoremainstreamanddiverseHascreatednewtargetingopportunitiesOnlinebehaviordiffersbyageOnlineconsumersdifferfromtraditionaloff-lineconsumersTheyinitiateandcontroltheexchangeprocessValueinformationhighlyMajorDomains3-12E-CommerceDomains•B2C•B2B•C2C•C2B•B2BsalesfarexceedB2CsalesB2Bsalesareestimatedtoreach$4.3trillionin2005•OpentradingnetworksE-marketspacebringingsellersandbuyerstogether•PrivatetradingnetworksLinkssellerswiththeirowntradingpartnersMajorDomains3-13E-CommerceDomains•B2C•B2B•C2C•C2B•C2CwebsiteshelpconsumersexchangegoodsorinformationeBayisoneexample•AuctionsitesfacilitatetheexchangeprocessAllowaccesstoamuchlargeraudience•Newsgroups/forumsHelpconsumerstofindandshareinformationMajorDomains3-14E-CommerceDomains•B2C•B2B•C2C•C2B•Allowconsumerstosearchoutsellers,learnaboutoffers,initiatepurchase,ordictatepurchasetermsEx:Priceline.com•SomesitesfacilitatethefeedbackprocessbetweencustomersandcompaniesEx:Planetfeed.comMajorDomains3-15ConductingE-Commerce•Click-Only-CompetitorsE-tailers,searchenginesandportals,ISPs,transactionsites,enablersites•Dot.comsfailedformanyreasonsLackofplanningandresearchOveremphasisonacquisitionvs.retentionPoorwebsitedesign/distributionsystemsLowmargins3-16ConductingE-Commerce•Click-and-MortarCompaniesChannelconflictwasinitiallyaconcernE-commerceoftencreatednewcustomers,ratherthancannibalizingexistingonesManyfirmsnowenjoygreatersuccessthantheirclick-onlycompetitionTrustedbrandnames,greaterfinancialresources,largercustomerbase,industryknowledge,andstrongsupplierrelationshipswerekeyadvantages3-17ConductingE-Commerce•CorporatewebsitesBuildgoodwillandrelationships;generateexcitement•MarketingwebsitesEngageconsumersandattempttoinfluencepurchase•Websitedesign7CsofeffectivewebsitedesignE-Marketing•Creatingwebsites•Placingonlineadsandpromotions•Creatingorusingwebcommunities•UsingE-mailandwebcasting3-18SevenC’sofWebSiteDesignConductingE-Commerce•Context•Content•Community•Communication•Connection•Commerce•Customization3-19ConductingE-Commerce•OnlineformsofadsandpromotionsBannerads/tickersSkyscrapersInterstitialsBrowseradsContentsponsorshipsMicrositesViralmarketing•FutureofonlineadsE-Marketing•Creatingwebsites•Placingonlineadsandpromotions•Creatingorusingwebcommunities•UsingE-mailandwebcasting3-20ConductingE-Commerce•WebcommunitiesallowmemberswithspecialintereststoexchangeviewsSocialcommunitiesWork-relatedcommunities•Marketersfindwell-defineddemographicsandsharedinterestsusefulwhenmarketingE-Marketing•Creatingwebsites•Placingon-lineadsandpromotions•Creatingorusingwebcommunities•UsingE-mailandwebcasting3-21ConductingE-Commerce•E-mailmarketingKeytoolforB2BandB2CmarketingClutterisaproblemEnrichedformsofe-mailattempttobreakthroughclutter•WebcastingAutodownloadingofcustomizedcontenttorecipients’PCsE-Marketing•Creatingwebsites•Placingon-lineadsandpromotions•Creatingorusingwebcommunities•UsingE-mailandwebcasting3-22PromiseandChallengesofE-Commerce•ThePromiseofE-CommerceThefutureofB2BE-commerceisbrightAf