Ch._14 - 14 Marketing in the Digital Age Forces Shaping the...

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Unformatted text preview: 14 Marketing in the Digital Age Forces Shaping the Digital Age 14-2 Forces Shaping the Digital Age Digitalization & Connectivity Internet Explosion Intranets connect people within a company. Extranets connect a company with its suppliers, distributors, and outside partners. Internet connects users around the world. Explosive worldwide growth forms the heart of the New Economy. Increasing numbers of users each month. Companies must adopt Internet technology or risk being left behind. 14-3 Forces Shaping the Digital Age New Types of Intermediaries: Direct selling via the Internet bypassed existing intermediaries (disintermediation). "Brickandmortar" firms became "clickand mortar" companies. As a result, some "clickonly" companies have failed. 14-4 Forces Shaping the Digital Age Customization and Customerization: With customization, the company custom designs the market offering for the customer. With customerization, the customer designs the market offering and the company makes it. 14-5 Marketing Strategy in the Digital Age Requires a new model for marketing strategy and practice Some suggest that all buying and selling will eventually be done electronically Companies need to retain old skills and practices but add new competencies 14-6 e-Business, e-Commerce, and e-Marketing in the Internet Age e-Business Involves the Use of Intranets, Extranets & the Internet to Conduct a Company's Business e-Commerce Involves Buying & Selling Processes Supported by Electronic Means E-Marketing "e-selling" side of e-commerce 14-7 Benefits to Buyers Convenience Buying is easy and private Provides greater product access and selection Provides access to comparative information Buying is interactive and immediate 14-8 Benefits to Sellers Powerful tool for building customer relationships Can reduce costs Can increase speed and efficiency Offers greater flexibility in offers and programs Is a truly global medium 14-9 E-Marketing Domains 14-10 Types of e-Marketers 14-11 Click-Only Companies Etailers Enabler Sites Search Engines and Portals Internet Service Providers Content Sites Types of Sites Transaction Sites 14-12 Reasons for Failures Poor research or planning. Relied on spin and hype instead of marketing strategies. Spent too heavily on brand identities. Devoted too much effort to acquiring new customers instead of building loyalty. 14-13 Click-and-Mortar Companies Most established companies resisted adding Web sites because of the potential for channel conflict and cannibalization. Many are now doing better than clickonly companies. Reasons: Trusted brand names and more resources Large customer bases More knowledge and experience Good relationships with suppliers Can offer customers more options 14-14 Setting Up for E-Marketing 14-15 Designing Attractive Web Sites Context Commerce Content The 7 Cs of Effective Connection Web Site Design Community Communication Customization 14-16 The Future of Online Advertising Web communities: Email: Allows members to congregate online and exchange views on issues of common interest Use of "enriched" email messages Backlash against spam can be problem Allow people to optout of promotions 14-17 Legal and Ethical Issues Online privacy Online security Internet fraud Segmentation and discrimination Access by vulnerable or unauthorized groups 14-18 ...
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