BA320 Summer 2006

Marketing in the Digital Age

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Agenda for TodayAgenda for Today

Explain how companies have responded to the Internet and other powerful new technologies with e-business strategies, and how these strategies have resulted in benefits to both buyers and sellers.

Describe the four major e-marketing domains.

Discuss how companies go about conducting e-marketing to profitably deliver more value to customers.

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Figure 14-1E-Marketing Domains

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Business to Consumer (B2C)

The online selling of goods and services to final consumers.– Expected to generate $316 billion in 2010,

or 13% of retail sales.– There is increasing diversity in buyers.• This provides increasing opportunities

for targeting markets.– Is customer initiated and controlled,

requiring new marketing approaches.

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Business to Business (B2B)

B2B sales dwarf B2C sales:– B2B e-commerce was nearly $4 trillion in 2003.– Uses trading networks, auction & barter sites, spot

exchanges, online product catalogs, and more. Most major B2B marketers offer online

product information, purchasing, and support. Open trading exchanges:– huge specialty e-marketspaces to conduct

transactions. More private trading exchanges are being

developed for B2B transactions.

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B2B Open Trading Exchange

Plasticsnet.com is an Internet marketplace that connects more than 200 suppliers with over 90,000 buyers monthly.

Marketing in Action

www.plasticsnet.com

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Consumer to Consumer (C2C)

Occurs on the Web and includes a wide range of products and services.– Auction sites such as eBay offer

marketplaces to buy or exchange goods.– Blogs and forums facilitate information

interchanges.• Blog: online journals where people post

thoughts on a narrowly defined topic.• Forums: discussion groups located on

commercial online services.

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Consumer to Business (C2B)

Consumers can search out sellers, view offers, initiate purchases, and give feedback.– At Priceline.com,

consumers can name their own price for a flight.

www.priceline.com

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Movietickets.com sells movie theatre tickets over the Internet.

Let’s Talk!

www.movietickets.com

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Figure 14-2Types of E-Marketers

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Click-Only Companies

E-tailers Search engines and portals Shopping comparison sites Internet service providers Transaction sites Content sites

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Reasons for dot.com 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.

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Click-and-Mortar Companies

Established firms initially resisted adding Web sites because of channel conflict and cannibalization concerns.

Risk of online competition forced firms to become click-and-mortar companies. Most are now doing better than click-only companies because of:– Trusted brand names and more resources– Large customer bases– More knowledge and experience– Good relationships with suppliers– Can offer customers more options

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Figure 14-3Setting Up for Online Marketing

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Corporate Website

Designed to build customer goodwill and supplement other sales channels.– Offers information

to customers.– Builds closer

customer relationships.

– Generates excitement about the company.

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Marketing Website

Engages consumers in an interaction that moves them closer to a direct purchase or other marketing outcome.– May include catalogs,

shopping tips, promotional features, and more.

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Designing Attractive Web Sites

The 7 Cs of Effective Web Site Design:– Context– Content– Community– Customization– Communication– Connection– Commerce

Constant change helps encourage repeat visits.

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Let’s Talk!

www.ragu.com/

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Online Ads

Forms of online advertising:– Banner ads:• Tickers (move across the screen)• Skyscrapers (tall, skinny ads at the side of a

page)• Rectangles (boxes that are larger than a

banner)– Interstitials (pop up OR pop under between

changes on Web site)– Search-related ads (contextual advertising)– Rich media ads (incorporate animation, video,

sound, and interactivity).

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Forms of Online Ads

Pennlive.com takes the mystery out of buying online ads, by showing samples of common formats available for purchase.

Visit the Interactive Advertising Bureau for additional information.

Marketing in Action

http://www.iab.net

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Online Promotion

Forms of online promotion:– Content sponsorships (sponsoring special

content)–Microsites (limited areas paid for by an

external company)– Alliances and affiliate programs (work with

firms to promote each other)– Viral marketing (Internet version of word-

of-mouth)

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Viral Marketing

Marketing in Action

Got Milk? Apparently aliens didn’t until they started abducting our cows. The cowabduction.com Web site is an by the California Milk Processors Board to promote milk in a fun fashion, and to stimulate viral marketing. http://www.cowabduction.com/

BA320- Summer 2006 17-23

1. Explain how companies have responded to the Internet and other powerful new technologies with e-business strategies, and how these strategies have resulted in benefits to both buyers and sellers.

2. Describe the four major e-marketing domains.

3. Discuss how companies go about conducting e-marketing to profitably deliver more value to customers.

Rest Stop: Reviewing the Concepts