E-markets 2000E-markets 2000

Craig LizotteCraig Lizotte

OverviewOverview

What is e-marketingWhat is e-marketingThe use of information technology in the The use of information technology in the processes of creating, communication, processes of creating, communication, and delivering value to customers, and for and delivering value to customers, and for managing customer relationships in ways managing customer relationships in ways that benefit the organization and its that benefit the organization and its stakeholders. (result of information stakeholders. (result of information technology applied to traditional technology applied to traditional marketing.)marketing.)

HistoryHistory

As new technologies emerged in the early As new technologies emerged in the early 90 there was a seen potential to capture 90 there was a seen potential to capture new emerging markets on the web. new emerging markets on the web.

E-markets peaked in 1999-2000 then E-markets peaked in 1999-2000 then dropped into a recession slowly dropped into a recession slowly recovering. recovering.

Goals and strategy Goals and strategy

Market procurement was the ultimate goal Market procurement was the ultimate goal due to lack of finances some companies due to lack of finances some companies would have a difficult time to penetrate the would have a difficult time to penetrate the market. Some competitors joined forces to market. Some competitors joined forces to synergistically build a new market, this synergistically build a new market, this wasn’t feasible to some companies since wasn’t feasible to some companies since 80 year old competitors didn’t want to 80 year old competitors didn’t want to team up for the short term. Which made it team up for the short term. Which made it Winner takes all.Winner takes all.

How does e-marketing effect How does e-marketing effect traditional marketingtraditional marketing

Increases efficiency and effectiveness in Increases efficiency and effectiveness in traditional marketing functions.traditional marketing functions.

Technology of e-marketing transforms Technology of e-marketing transforms many marketing strategies resulting in new many marketing strategies resulting in new business models. business models.

Bleeding edge Technology Bleeding edge Technology

New emerging technology means that the waters have New emerging technology means that the waters have not been tested. not been tested.

Sellers must Adapt to the rapid changing environments.Sellers must Adapt to the rapid changing environments.

They must evolve to survive until it reaches and They must evolve to survive until it reaches and equilibrium. equilibrium.

Strategy is a means to obtain a particular goal and Strategy is a means to obtain a particular goal and identify your target customer and market to them as identify your target customer and market to them as needed keeping in mind the strategy of your competition needed keeping in mind the strategy of your competition and staying ahead of them. Even if in the short term it and staying ahead of them. Even if in the short term it hurts your business it will pay off in later off. (winner hurts your business it will pay off in later off. (winner takes all.)takes all.)

How the internet changed marketing How the internet changed marketing

Reach to larger customer baseReach to larger customer base

flexibility and ease of useflexibility and ease of use

PersonalizationPersonalization

Interactivity Interactivity

Asynchronous communicationAsynchronous communication

Market Segmentation Market Segmentation

GeographicGeographic LocationLocation

DemographicsDemographics AgeAge IncomeIncome GenderGender EducationEducation EthnicityEthnicity

PsychographicsPsychographics Activities Activities InterestInterest OpinionsOpinions PersonalityPersonality ValuesValues

BehaviorBehavior Benefits soughtBenefits sought UsageUsage Brand loyaltyBrand loyalty User status User status

Types of MarketsTypes of Markets

B2BB2B

B2GB2G

B2CB2C

C2CC2C

Value BubbleValue Bubble

In order to create a market there must be a demand. In order to create a market there must be a demand.

AttractAttractEngageEngageRetainingRetainingLearnLearnRelatingRelating

advertisers can Attract people to their site to engage and advertisers can Attract people to their site to engage and retain them into online communities. retain them into online communities. ex: Such as youtube, myspace, e-mail sites. ex: Such as youtube, myspace, e-mail sites.

Competitive RisksCompetitive Risks

Monopoistic – large seller to buy ratioMonopoistic – large seller to buy ratio

Oligopolistic – few sellers many buyers Oligopolistic – few sellers many buyers any decisions one seller makes has an any decisions one seller makes has an effect on the price of the other sellers.effect on the price of the other sellers.

Fear that e-markets would commoditize. Fear that e-markets would commoditize.

Primary Stake HoldersPrimary Stake Holders

Employees Employees

Business customers in the supply chainBusiness customers in the supply chain

supplierssuppliers

Lateral partnersLateral partners

Investors Investors

Law makers Law makers

Financial institutionFinancial institution

Frame workFrame work

Efficient Commerce HubEfficient Commerce Hub

Dynamic marketplacesDynamic marketplaces Neutral ExchangeNeutral Exchange Buyer AdvocateBuyer Advocate Seller AdvocateSeller Advocate

Content and Community PortalContent and Community Portal

7 Step Marketing Plan 7 Step Marketing Plan

Situation analysisSituation analysis SWOT analysisSWOT analysis StrategyStrategy

Tier 1Tier 1 PositioningPositioning DifferentiationDifferentiation TargetingTargeting

Objectives identify goals for e-market Objectives identify goals for e-market strategy.strategy.Tier 2Tier 2 Offer productOffer product Value (price)Value (price) Distribution (place)Distribution (place) Communication (promotion)Communication (promotion)

CRM/PRM CRM/PRM ImplementationImplementationBudgetBudgetEvaluationEvaluation

Evolution form ERP to E-MarketsEvolution form ERP to E-Markets

ERP CoreERP Core Common intracompany systemsCommon intracompany systems Internal efficiencies, lower costInternal efficiencies, lower cost Real-time Data access improves service to customers Real-time Data access improves service to customers

Extended enterprise (extranets and Web storefronts) Extended enterprise (extranets and Web storefronts) One-to-many links between company and trading partnersOne-to-many links between company and trading partners Reduced costs and time to market due to limited information sharing Reduced costs and time to market due to limited information sharing

and collaborationand collaboration

E-MarketsE-Markets Many to many communicationMany to many communication Product, process, and availability transparencyProduct, process, and availability transparency New pricing and sales modelsNew pricing and sales models Automation of business processesAutomation of business processes Enhanced data exchange leading to collaborationEnhanced data exchange leading to collaboration

Benefits consumerBenefits consumer

BenefitsBenefits

24/724/7

Find any thing you Find any thing you want want

Save travel expenseSave travel expense

Convenient Convenient

Compare pricesCompare prices

WeaknessWeakness

Can’t try it before you Can’t try it before you buy it buy it

shipping timeshipping time

Trust in sellerTrust in seller

Seller Seller BenefitsBenefits

Out sourcingOut sourcingGreater customer reachGreater customer reachReduced store store Reduced store store inventory cost inventory cost Reduced inventory to pay Reduced inventory to pay overhead overhead Ability to reach global Ability to reach global marketsmarketsIf out of stock can find If out of stock can find another suppler or can sell another suppler or can sell their surplus inventorytheir surplus inventory

WeaknessWeaknessGaining market shareGaining market shareRiskRiskStaying competitiveStaying competitiveBigger market = more Bigger market = more competition. competition. Competition is a few Competition is a few clicks away which gave clicks away which gave the buyer more power. the buyer more power.

Industry and market discussionIndustry and market discussion

In 1999 there were15 countries connected In 1999 there were15 countries connected to the internet.to the internet.

Number of people on the web where 284 Number of people on the web where 284 million users.million users.

75,000,000 WebPages. 75,000,000 WebPages.

Since this industry has been around for 10 Since this industry has been around for 10 years it is new which can allow it to move years it is new which can allow it to move in any direction.in any direction.

PerspectivesPerspectives

Technology infrastructuresTechnology infrastructures XMLXML

Internet as technology allowedInternet as technology allowed

Greater reach Greater reach

flexibility and ease of useflexibility and ease of use

personalizationpersonalization

interactivity interactivity

asynchronous communicationasynchronous communication

DSIRDSIR

The value of the hub increase with the The value of the hub increase with the number or users connected to it.number or users connected to it.

S x BS x B

S = connected suppliersS = connected suppliers

R = connected BuyersR = connected Buyers

= S x B potential trading relationships.= S x B potential trading relationships.

competitive riskscompetitive risks

Monopoistic – large seller to buy ratioMonopoistic – large seller to buy ratio

Oligopolistic – few sellers many buyers Oligopolistic – few sellers many buyers any decisions one seller makes has an any decisions one seller makes has an effect on the price of the other sellers.effect on the price of the other sellers.

Missed opportunitiesMissed opportunities

Companies who didn’t invest in internet Companies who didn’t invest in internet because they fear commoditization. because they fear commoditization.

ProblemsProblems

Predicted that by 2004 5 mega exchanges Predicted that by 2004 5 mega exchanges would dominate most e-marketingwould dominate most e-marketingChick and egg conceptChick and egg conceptIneffective efforts to set standardsIneffective efforts to set standardsXML had many dialects standards were XML had many dialects standards were needed.needed.Legitimate and qualified suppliers Legitimate and qualified suppliers Internet users are becoming indifferent to Internet users are becoming indifferent to banner adds, popup adds and spam. banner adds, popup adds and spam.

Concerns with privacyConcerns with privacy

Used to better target customers.Used to better target customers.

Cookies Cookies

Data mining Data mining

Identity theftIdentity theft

SurveysSurveys

Trust in online exchange Trust in online exchange