ELC 310

Day 19

Agenda

Questions? Two major assignments Left

– Case study analysis of an existing case Week after break 10%

– Creation of a case study Last week of the semester 16%

Case Study Proposals Due Nov 29– Less than one page on the company you will be writing a case study

on and where you will be getting the research.– Brick and mortar company that used a eMarketing strategy

Starting today we will be in the text ebusiness.marketing– Friday, Nov 20 Chap 2 & 3– Tuesday, Nov 22 Chap 4

Schedule for last days of class

November 18– Albert Chap 2 & 3

November 22– Albert chap 4

November 29– Instructor presentation of

case study analysis December 2

– Student Case study analysis presentations

December 6– Student Case study

analysis presentations

December 9– Student Case study

analysis presentations December 13

– Albert Chap 13 & 14 December 16

– Written Case Studies Due– Quiz 4

December 22 in Finals week at 3PM

– Case study presentations

Case studies (must pick one by next Tuesday)

Chap 5– Specialty manufacturer– CRM

Chap 6– Steel Industry– ERP

Chap 7– Hardware distributor– SCM

Chap 8– Utilities– BI

Chap 9– Bot-for-Profit– CRM

Chap 10– Consumer Packed Goods – CRM

Chap 11– Insurance– SCM

Chap 12– Financial Services– E-commerce and BI

Chapter Two

The Marketing Mix Transformation

Overview

The Transformation of the Marketing Mix The Internet's Impact on the Marketing Mix Business-to-Consumer Marketplace B2C and Traditional Distribution Business-to-Business Marketplace Ranged Marketing Complexity Theory Fuzzy Logic Elements of Ranged Marketing The Key Role of Change The Role of Ranged Marketing

“Traditional” Marketing Mix

Four Ps (McCarthy, 1960s) Four Cs (Schultz, 1990s)

– main causes of transformation Database Outside looking in versus in side looking out

Internet impact on the 4Ps/4Cs– Product >> customer solution– Price >> customer price– Promotion >> communication– Place >> convenience

Marketing Mix

E-Business enables transformation 4 Ps to the 4Cs

– Product Customer Solution– Price Customer Cost– Promotion Communication– Place Convenience

Caveat emptor Cave emptorum

Internet enabled outcomes

Leverage database marketing technology– Quantitative information

Purchase patterns Demographics Psychographics Attitudes, Interest and opinions

Targeted promotion Personalization on a Massive scale Distribution

Impact on Services Marketing

What is Services Marketing?

Four factors impacted– Intangibility (can’t touch)– Simultaneity (produced/consumed)– Heterogeneity (different each time)– Perishability (can’t be stored)

4 extra P’s – People– Processes– Physical image– Productivity

Internet Business Environments

B2B– definition– size/opportunity

B2C– definition– size/opportunity

C2C– definition– how did the Internet enable this?

Background for Ranged Marketing

Complexity Theory (chaos)– Small permutations create massive change– Fractals– Fuzzy Logic– Nothing is perfectly predictable– Lorenz’s Butterfly effect

http://www.cmp.caltech.edu/~mcc/chaos_new/Lorenz.html Results

– The unexpected occurs– Change is certain– The market is heterogeneous

Ranged Marketing

Marketing is a combination of many disciplines

Ranged marketing incorporates sociological theory

– Increased communication accelerates change

Other research– Hoffman and Novak– Organic solidarity

E. Durkheim

Elements of Ranged Marketing

Range of……... Use Expertise Target Markets Development Life Adaptation Change

Change/Transformation

Successful company example– Volvo– UPS

UPS as traditional company– transformation into e-business – www.ec.ups.com– successful?– What was their “formula”?

Words to think about

“The future ain’t what it used to be.”– Yogi Berra

“It’s not the strongest or most intelligent that survive, but the ones most responsive to change.”– Charles Darwin

Chapter Three

The Value Bubble

Overview

Five Elements of the Value Bubble Applying the Value Bubble Attracting (Building Traffic) Engaging (Building Loyalty) Retaining (Strengthening the Relationship) Learning (Building the Database) Relating (Data-Driven Interactions) Business-to-Business Value Bubble Adaptations

McKinsey Model

A model for Marketing On-line Originated in mid-1990s Updated through ongoing research Three opportunities in original model

– lower cost of providing services– relationship building– redefine channel intermediation

Five Steps

Attract Engage Retain Learn Relate Extension from Learn: GIST (chapter 14)

– Gather->Infer->Segment->Track Most companies falter in last 2 steps

Figure OneAttract (Building Traffic)

piggyback marketing(all points of contact)

build it they will come misconception consistent branding(online and offline)

Attract Stakeholder to Site or Storefront

“Formula to Attract”

Offline Online PR Buzz Traditional Stores Links Microsegmentation Involvement

Technology Attraction

Flash Graphics

– dancing baloney

Jakob Nielsen’s work– Useability– http://www.useit.com/

BI component

Figure TwoEngage--Building Loyalty

m os t s ites lose h ere con ten t & visu a l c rite ria u n iq u e in te rac tion(va lu e-ad d ed )

E n g ag e S takeh o ld ers

Engage Strategies

Form and Substance BI “One voice” EC--the sale Client side/server side Beginnings of CRM

Figure ThreeRetain--Strengthening the Relationship

databaseintegration

hidden expense re-fresh, re-fresh

online servicequality

switching costs

Retain Stakeholders(Repeat Visits andBuilding Loyalty)

Retaining Strategies

Repeat Visits--site is the firm E-Service Quality Model

– Purchase– Loyalty– WoM

Web features and attributes– e-service quality dimension

Core Service Recovery

CLV precision Cookies

Figure FourLearn--Building the Database

u n p reced en ted

seg m en ta tion

in te llig en t m arke tin gfo r p e rson a liza tionor cu s tom iza tion

sou rces(on lin e " foo tp rin t")

L earn ab ou t S takeh o ld e rs

Learning Strategies

Integrated databases– offline and online

Log files Clickstreams GIST model

– Gather– Infer– Segment– Track

Figure FiveRelate--Data-driven Interactions

greatest contribution

segmentation

customize theinteraction

interactiv ity(attribute of communication)

Relate to Stakeholders

Relating Strategies

Segments of one Privacy (the paradox) Targeted communication

– emails

Competitive edge

Business-to-Business

Financial advisors’ study Adoption rate by web site features Different motivation (“buying criteria”)

– extrinsic– SCM, ERP leading to CRM– more obvious than B2C

Organic solidarity– "...Even where society relies most completely upon the division of labor, it

does not become a jumble of juxtaposed atoms, between which it can establish only external, transient contacts. Rather the members are united by ties which extend deeper and far beyond the short moments during which the exchange is made. Each of the functions that they exercise is, in a fixed way, dependent upon others, and with them forms a solidary system."

>> Durkheim, Emile. 1933. The Division of Labor in Society Translated by George Simpson. New York: The Free Press.