MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

MKTG7037 / MKTG2032

E-marketingWeek n+1 where n=“last week”

Course StructureWeek No Week beginning Topic(s)/Task(s)

1 19 February Chapter 3 Unique features of internet-based marketing

2 26 February Chapter 4 Consumer behaviour

3 5 March Chapter 5 Creating cybercommunities

4 12 March Chapter 6 Applications for business and non-business

5 19 March* Chapter 7 The internet in marketing strategy

6 26 March Chapter 8 The role of product in internet marketing

7 2 April Chapter 9 Promotion: the internet in the promotional mix

8 23 April Chapter 10 Promotion 2: the internet as a promotional medium

9 30 April Chapter 11 Pricing strategies

10 7 May Chapter 12 Distribution

11 14 May Chapter 13 Services marketing online

13 28 May Chapter 14 Relationship marketing

12 21 May Chapter 15 International marketing

Assessment Due Dates

Task Weighting Due• Essay Registration 01 March 16• Solo Assignment 20 March 26• Group-Optional Essay 29 May 21• Final Examination 30 June• Online Forum 20 During semester

MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

Now, a very serious question of internet related

matters

Pirates versus Ninjas?

LOLPIRATES AND ICANHASNINJASTARCATS DO NOT COUNT

Twitter Redux

• Just when you thought I had a life*– http://twitthis.com/

*Actually you probably didn’t…

Second Life

• A Supercharged Hoover Deluxe in a world of vastly superior alternatives.– (And if I’m wrong, I don’t care. I still don’t like the

current implementation)

SL v WoW

World of Add-on Packs

• Wow Basic– Not good

• WoW + 3rd Party Plugins– ROCK ON!

MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

Distribution

Oh yeah, the content

Reputation Distribution

• People can make or break companies.• People make the difference between

relevance and obsolescence.• People foster innovation, or kill it dead.• People are your ticket to growth and

success. – http://thebrandbuilder.blogspot.com/2007/05/p

eople-principle.html

Social Media as a Distribution Hub

• del.icio.us • Digg it • ma.gnolia • Yahoo MyWeb • Google • StumbleUpon

• If the product is data, ideas or reputation, the shipping agency is other people

Web2.0 Distribution metaphors

• I think of Velcro as an analogy for how Web 2.0 works by allowing for lots of little connections. Viewed one way, it's messy. Viewed another it's rather beautiful. And offers the possibility of a lot of grip...

• http://www.johnniemoore.com/blog/archives/001748.php

MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

Distributions and the Mix

Distribution and product

• The first and foremost aspect of the impact of distribution is that it determines in part what product can be offered through the Internet channel

• Three elements of information-based marketing– Digital transmission of information– Interactive transmission of information– Individualised transmission

Distribution and price

• Consumers have problems with cost of shipping

• uncertainty stems from the following:– Shipping speed– Viability of shipping fragile or perishable goods– Local alternatives for face-to-face pick-up

Distribution and Promotion

• Ideas / brands / reputation can be distributed as they’re promoted

• Promotion v marketspace

• An area to look to your own experience for an example and answer.

• http://blog.digg.com/?p=74

MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

Distribution.

Determining the right distribution

• Mols (1998) outlines a three-step model to determine distribution:– Ask first– How can the services be provided?– What are the costs of the alternative channels?

Marketspace: the place of electronic distribution

• Marketspaces are an artificial intangible market for information. A marketspace is defined by three parameters:– Content: the idea or information being traded– Context: the digital channel– Infrastructure: the Internet

Marketspace, marketplace and the value chain

Source: Weiber, R. & Kollman, T. 1998,

‘Competitive advantages in virtual

markets –– perspectives of

information-based marketing in

cyberspace’, European Journal of Marketing, vol. 32,

no. 7/8, pp. 603–15.

Big issues in Internet distribution

• Channel conflict:– Channel conflict– Territory– International

distribution

• Non-store distribution:– Offering a money-back

guarantee– Offering well-known

brands– Selling at a reduced

price

• Contemporary Distribution Issues– Physical delays in

shipping– Peer2peer networks– Copyright, patents,

legal blocks, DRM and EULA

– Last mile capacity

Technical implications of Internet distribution

• Technical considerations of distribution channel on the Internet are affected by the type of product and the nature of the distribution channel:– Non-store information channel– Non-store reservation channel– Non-store purchase and distribution channel

• Keeping it real– Network access– Server capacity– compatibility

Compatibility

• Technical– Windows

• Which flavour?

– Linux• Which build?

– Mac• Which version?

• How new?– Bleeding edge– Cutting edge– The rest of the

population

• Rogers’ five features of innovations:– Relative advantage– Compatibility– Complexity– Trialability– Observability

Rules for compatibility for e-distribution

• There are five general rules for establishing compatibility to the widest market:– Use the widest protocol.

– Macintosh, Linux and Unix users may also like to see products.

– Accept that the bleeding edge/cutting edge is the narrowest part of the user base.

– Use Mols (1998) to establish distribution.

– Provide free software if you must establish unique protocols.

Strategic value – last mile solutions

• four forms of ‘last mile’ solutions for the movement of physical goods ordered online:– Unattended home

delivery– Attended home delivery– Reception boxes– Shared reception boxes

• Bear box– www.bearbox.com

Discussion Questions for the Board

• Define ‘marketspace’ in your own words.

• Give an example of a set of marketspaces that do not have a physical world marketplace counterpart.

• Can a marketplace exist without having a marketspace associated with it?