e-marketing (mktg 543)

1© 1998-2017, Arvind Rangaswamy (All Rights Reserved)

October 16, 2017

e-Marketing (MKTG 543)

Introduction and Course Overview

Arvind Rangaswamy

Web address: www.arvind.info

email: [email protected]

My Background in Digital Marketing


My Research Publications in This Area

Rangaswamy, Arvind and G. Richard Shell (1997) “Using Computers to Realize

Joint Gains in Negotiations: Toward An ‘Electronic Bargaining Table,’” Management

Science, Vol. 43, No. 8 (August), p. 1147-1163

Winer, Russell S., John Deighton, Sunil Gupta, Eric J. Johnson, Barbara Mellers,

Vicki G. Morwitz, Thomas O’Guinn, Arvind Rangaswamy, and Alan G. Sawyer (1997),

“Choice in New Media Environments,” Marketing Letters, Vol. 8., No.3, (July), p. 287-

296

Degeratu, Alexandru, Arvind Rangaswamy, and Jianan Wu (2000), “Consumer

Choice Behavior in Online and Traditional Supermarkets: The Effects of Brand

Name, Price, and Other Search Attributes,” International Journal of Research in

Marketing, Vol. 17, No. 1, p. 55-78. Finalist for the best-paper award competition of

IJRM for 2001 (with honorable mention). Winner of Jan-Benedict E.M. Steenkamp

Award for Long-Term Impact (2011).

Wind, Jerry and Arvind Rangaswamy (2001), “Customerization: The Next Revolution

in Mass Customization,” Journal of Interactive Marketing, Vol. 15,. No. 1, p. 13-32.



Srinivasan, Raji, Gary L. Lilien, and Arvind Rangaswamy (2002), “The Role of

Technological Opportunism in Radical Technology Adoption: An Application

to e-Business,” Journal of Marketing, Vol. 66, No. 3 (July), p. 47-60.

Shankar, Venkatesh, Amy Smith, and Arvind Rangaswamy (2003), “The

Relationship Between Customer Satisfaction and Loyalty in Online and

Offline Environments,” International Journal of Research in Marketing, Vol.

20, No. 2 (June), p. 153-175. Finalist for best-paper award of IJRM for 2003

(with honorable mention). Winner of Jan-Benedict E.M. Steenkamp Award for

Long-Term Impact (2014).

Jianan Wu and Arvind Rangaswamy (2003), “A Fuzzy Set Model of

Consideration Set Formation Calibrated on Data from an Online

Supermarket,” Marketing Science, Vol. 22, No. 3, p. 411-434.

Rangaswamy, Arvind and Gerrit Van Bruggen (2005), “Special Issue:

Multichannel Marketing,” (Editors), Journal of Interactive Marketing, Vol. 19,

No. 2 (Spring).



Steckel, Joel, Russ Winer, Randolph E. Bucklin, Benedict Dellaert, Xavier

Drèze, Gerald Häubl, Sandy Jap, John D.C. Little, Tom Meyvis, Alan

Montogmery, and Arvind Rangaswamy (2005), “Choice in Interactive

Environments,” Marketing Letters, Vol.16, No. 3-4 (December), p. 310-320.

Rangaswamy, Arvind, C. Lee Giles and Silvija Seres (2009), “A Strategic

Perspective on Search Engines: Thought Candies for Practitioners and

Researchers.” Journal of Interactive Marketing, Vol. 23, No. 1 (February),

p. 49-60.(10th Anniversary Special Issue).

Hennig-Thurau, Thorsten, Edward C. Malthouse, Christian Friege, Sonja

Gensler, Lara Lobschat, Arvind Rangaswamy, and Bernd Skiera (2010),

“The Impact of New Media on Customer Relationships,” Journal of

Service Research, Vol. 13, No. 3 (August), p. 311-330. Finalist for the

“Best Article” in Journal of Service Research in 2010.


My Research Publicationsin This Area

Sorescu, Alina, Ruud T. Frambach, Jagdip Singh, Arvind Rangaswamy, and Cheryl

Bridges (2011), “Innovations in Retail Business Models,” Journal of Retailing, Vol.

87S, No. 1, p. S3-S16.

Clement, Michel, Arvind Rangaswamy, and Srikant Vadali (2012), “Consumer

Responses to Legal Music Download Services that Compete with Illegal

Alternatives,” Service Science, Vol. 4, No. 1, p. 4-23 (Lead article).

Ebbes, Peter, Zan Huang, and Arvind Rangaswamy (2016), “Sampling Designs for

Recovering Local and Global Characteristics of Social Networks,” International

Journal of Research in Marketing, Vol. 33, No. 3 (September), p. 578–599.

Kalyanam, Kirthi, Peter Lenk, and Arvind Rangaswamy (2016), “Understanding the

Structure and Evolution of Perceived Service Quality from Online User Ratings and

Sentiments” (Working paper).

Xu, Dong, Arvind Rangaswamy, and Nazrul I. Shaikh (2017), “New methods for

generating synthetic equivalents of real social networks” (Working paper).


Outline for Today’sSession

Course overview

The emerging space of real-time, global, digital, networked organizations

Role of e-Marketing in a connected world

Course Overview

Course Web Site at Canvas


Course Objectives

Provide an understanding of the business rationale for e-Marketing, and the potential value of e-Marketing to consumers, to companies, to the marketing function, and to society at large.

Expose students to the essential vocabulary they need to meaningfully discuss current developments in e-Marketing.

Offer useful frameworks for dissecting and understanding the elements of value creation, value delivery, and value appropriation via e-Marketing. And, to use these frameworks to leverage the online medium to strengthen customer relationships and exploit market opportunities.

Help students to critically evaluate an e-Marketing problem and develop strategic and operational plans appropriate for that problem.

Identify and articulate the key management issues that arise in implementing e-Marketing strategies.


Course Materials

Required Materials

Case packet with cases (available at bookstore).

Any other materials will be handed in class, or posted as a link at Canvas course site.

Canvas Course Web site

All other materials required for the course are available under the Calendar tab at Canvas – keyed to each session.


Wed, Oct 18 Amazon, Apple, Facebook, and Google (in class discussion)

Mon, Oct 23 Dove: Evolution of a Brand (in-class discussion)

Wed, Oct 25 Denver Museum of Nature and Science

Mon, Oct 30 Sephora Direct

Wed, Nov 1 New York Times Paywall

Mon, Nov 6 Major League Baseball

Mon, Nov 13 Online Marketing at Big Skinny

Wed, Nov 15 Improving Repurchase Rates at Zulily

Mon, Nov 27 Bank of America: Mobile Banking

Wed Nov 29 Social Strategy at Nike

Mon Dec 4 Maersk Line: B2B Social Media

Cases in the Course


Grading

Class participation (30%)

Group case presentations and write-ups (35%)

e-Marketing audit/new initiative (35%)


Class Preparation/Participation

Meet with group to prepare for class.

Quality of participation is far more important than quantity of participation.

Everyone is here to learn from each other.


3-Stage Learning Process


Grading

-- - + ++

++ Outstanding – the work speaks for itself and

reflects non-obvious and generalizable insights

+ Clearly beats my expectations/norms for the course

Meets my expectations for the course

- Below my expectations, but can improve

-- Should be taking a course in a different subject area

Strategic Overview of e-Marketing


Growth of the Internet

Commerce (~1991)Communications (~1980)

Contraptions (~2009)

Community (~2003)

Internet of

everything (now)


Digital-Networked-MobileConvergence

Analog

Standalone

Fixed location

Digital

Networked

Mobile

Digital and

Networked

Digital, Mobile

Networked

Digital,

Mobile

Museum

MobileNetworked

Businesses are more real-time, global, social, and mobile

http://images.google.com/imgres?imgurl=http://www.ilovelanguages.com/Wallpaper/papers/loc1.jpg&imgrefurl=http://www.june29.com/Wallpaper/page-9.html&h=768&w=1024&sz=113&tbnid=Lh9WXBbjgkfv5M:&tbnh=112&tbnw=150&hl=en&start=7&prev=/images?q%3Dlibrary%2Bof%2Bcongress%26svnum%3D10%26hl%3Den%26lr%3D

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http://images.google.com/imgres?imgurl=http://faxmachines.azspecifications.com/img/36-large.jpg&imgrefurl=http://faxmachines.azspecifications.com/Panasonic_KX-FL511_Laser_Fax_Machine.html&h=480&w=479&sz=17&tbnid=2R79rt7w-r8D_M:&tbnh=126&tbnw=125&hl=en&start=27&prev=/images?q%3Dfax%2Bmachine%26start%3D20%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN

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http://images.google.com/imgres?imgurl=http://www.winforkids.org/About/Fed ex.JPG&imgrefurl=http://www.winforkids.org/Sponsorship/2005sponsors.htm&h=184&w=319&sz=17&tbnid=KudzgHTp3UTzyM:&tbnh=65&tbnw=113&hl=en&start=2&prev=/images?q%3Dfed%2Bex%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DG

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22© 1998-2017, Arvind Rangaswamy (All Rights Reserved)10/15/2017

22

Supplier

network

Customer/Market

network

Extranet Intranet Internet

e-Operations e-Marketing

Company’s

digital

infrastructure

Real-timeEnterprise

Emerging real-time organizations, powered by customer-centered

information and process management architectures, for anticipating and

responding to changing customer and market needs as fast, or faster than,

those changes.

Customer-driven

Activities and flows

Emerging Global Real-Time

Enterprises Focused on Customers

22


What Wal-Mart did on 9/11/2001

Within a few hours of the 9/11 attacks, sales of flags and other patriotic items started skyrocketing.

On Sept 11, the 2,700 Wal-Mart stores sold over 100,000 flags (compared to 6,400 the previous year on that day), and over 200,000 on Sept 12th.

Detecting these increases, Wal-Mart locked up all the supplies it could find before its competitors (like Kmart) could react.

Real-time tracking and analysis helped “adapt” to a demand surge.


The Evolution of OnlineCapabilities at Leading Companies

Fu

ncti

on

ality

1997

Static content

Dynamic content

Transactions

1992 2000 2003 2007

Process management

Web-centricenterprise

2011

Real time business


Streetlights for SmartPhoneZombies (Bodegraven, NL)

Source: McKinsey Global

Institute, Digital America

Report, December 2015

Jan 16, 2014


Growing Interest inDigital Marketing

From www.google.com/trends (accessed October 7, 2016)

Each series is indexed to 100 for its maximum value during this period, and indicates the interest in the

topic based`on Google searches conducted on those terms. The absolute number of searches for

“Digital marketing” is much smaller than the absolute number of searches for “Marketing.”

http://www.google.com/trends


Changing Conceptions of Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

-- American Marketing Association (July 2013)

want us to be.”

-- Senior executive of travel company


Changing Conceptions of Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

-- American Marketing Association (July 2013)

Marketing is an adaptive, technology-enabled process by which firms collaborate with customers and partners to jointly create, deliver, and sustain value for all stakeholders.

— Emerging view

“Marketing is a way of thinking and doing that enables us to be whatever today’s customers want us to be.”

-- Senior executive of travel company


The Marketing Process in a Connected World

• Create offerings

• Customize offerings

• Simplify channels

• Design customer

experience

• Build platforms

• Generate externalities

• Expand ecosystem

• Enhance customer

experience

Sustain

value

Augment

value

Realize

value

Communicate

value

Architect

value

Refine

value

Find

value

Customer

Relationship

Repository

Adapt

• Sense market trends

• Understand customers

• Identify opportunities

• Redefine markets • Segment customers

• Choose desirable segments

• Craft value propositions

• Validate/adapt value propositions

• Expand touchpoints

• Price to maximize yield

• Bundle/unbundle offerings

• Adapt pricing/revenue strategy

• Manage brand

• Deliver consistent message

• Optimize communications mix

• Integrate communications

• Monitor customer experience

• Personalize relationships

• Develop complete offerings

• Institute loyalty programs

Source: Adapted from Mohan Sawhney


Some Opportunitiesfor Marketers Today

Real-time/Contextualized marketing

“Customerization” that increases value for all stake-holders

Market expansion (scaling) due to disappearing boundaries

Supply-demand integration (end-to-end visibility)


And, Some Challenges

Loss of control (e.g., user-generated content)

Potential loss of brand power

Fragmentation of consumer decision processes (e.g., separation of choice from purchase)

“Tax” paid to Internet choke points (e.g., Google)


Source: Bughin, J. L. LaBerge, and A. Mellbye, McKinsey Reports, Feb 2017.

Uneven Returns to Digital Initiatives

e-marketing (mktg 543)

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