1 © Arvind Rangaswamy, 2005-2009 (All Rights Reserved) February 24, 2009 e-Marketing (eBiz/Mktg 543) A Quick Recap Arvind Rangaswamy Web address:

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© Arvind Rangaswamy, 2005-2009 (All Rights Reserved)

February 24, 2009

e-Marketing (eBiz/Mktg 543)

A Quick Recap

Arvind Rangaswamy

Web address: www.arvind.infoemail: [email protected]

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Recap of Cases/Contexts We Covered

Digital (Paypal, Real Networks) and Non-digital (Dove, Avon, Burger King).

Technology-driven (e.g., Online Grocers, Paypal) and Business-driven (e.g., Four Seasons, Dove).

Successful (e.g., Avon) and unsuccessful (e.g., Webvan) online attempts.

Different business models (e.g., Online grocers, MedNet).

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High-Level Overview

Question 1: To what extent should we digitize our product, service, process, or relationships? What incremental value would that offer to our customers and other stakeholders?

Question 2: Should we “network” our product, service, process, or relationships? What incremental value would that offer to our customers and other stakeholders?

Question 3: Can we improve current “reality” by adopting e-marketing strategies?

Question 4: How do we align online marketing strategies with business strategies to improve one or more of the following: (1) marketing productivity, (2) customer responsiveness, (3) company or product differentiation, or (4) innovation.

Marketing in the connected world of tomorrow is going to look very different from marketing in yesterday’s world – it will be more of an interactive and collaborative process.

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Learning PointsEmerging Strategic Context of Marketing

Technology as an enabler

Seller-centric markets

Physical assets

Decreasing returns to scale

Vertical integration (size)

Market share

Firm-centric marketing strategies

Technology as a transformer

Customer-centric markets

Physical + Knowledge assets

Sometimes increasing returns to scale (network effects)

Virtual integration (speed)

Strategic control

Network-centric and customer-centric marketing strategies (connected and collaborative marketing processes)

Yesterday’s Economy Tomorrow’s Economy

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Digital-Networked-Mobile Convergence:The Evolution of Information Access

AnalogStandaloneFixed location

Digital

Networked

Mobile

Digital andNetworked

Digital, MobileNetworked

Digital, Mobile

Library

MobileNetworked

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Supplier network

Customer/Market network

Extranet Intranet Internet

e-Operations e-Marketing

Company’s digital

infrastructure

Real-timeEnterprise

Real-time is an organizational capability, 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-drivenActivities and flows

Emerging Global Real-Time Enterprises Focused on Customers

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© 1998-2005, Arvind Rangaswamy (All Rights Reserved)

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The Increasing Need forStrategy/IT Alignment

Mar

ket

sC

orp

orat

e

IT

Architecture

Processes ResourcesProcesses/Capabilities

Resources

Governance

IT Scope

Systemic Competencies

ITGovernance

Distinctive Competencies

(Why?)

Business Scope

(What?)

Governance(How?)

Business Strategy IT Strategy

Business operations IT operations

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Multi-Channel Marketing

Corporate

Marketing Product

Divisions

Customers

Store/

Retailers Catalog

SalesForce

CallCenter

WebSiteTh

ird P

arty

Logistics

Pro

vid

ers

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Marketing Funnel(Example Conversion Rates)

$$Spent

$$$Got

300

100

10%

Impressions (can also have multiple impressions per visitor)

Clickthroughs

Conversion toSales

ROI

1%

5%

10%

1%

Visitors

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Offering Augmentation (1-800-Flowers)

Flower / Gift Decision Process

Need Recognition

Search For Ideas and Offerings

Purchase Decision

Message Selection

Post Sales Support and Perks

Education on Flowers and Decoration

Gift reminder service Holiday specials Everyday celebrations

suggestions Special occasion suggestions

Product price Product picture Product description Delivery information Delivery availability

Gizmo fully-animated greeting cards

Physical cards in gifts

Post-Sales Support Order receipt email eQ&A online

customer service FAQ Customer service

inquiry formPerks

Miles earned with flower purchases

Free gifts Discounts at AOL &

BN with flower purchases

Member specials

“Care and handling” “Do it yourself” Special events and

educational workshops held at stores

Evaluation of Alternatives

Gift guru Favorite gifts Gift frequency Gift impossible Gift baskets Corporate gift services

Ideas and Information Floral ideas Garden ideas Home ideas Gift ideas Gourmet ideas Store locator Recommendations by budget Best sellers

Gift Recommendations

Shopping basket e-commerce transaction Special shopping features

– Delivery outside U.S.– 1-800-lasfloras.com

Offering

Source: Adapted fromRayport and Jaworski

Documents

1 © Arvind Rangaswamy, 2005-2009 (All Rights Reserved) February 24, 2009 e-Marketing (eBiz/Mktg 543) A Quick Recap Arvind Rangaswamy Web address: