Spring 12 BMS Mktg Lecture 6

8/2/2019 Spring 12 BMS Mktg Lecture 6

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Marketing in the New Internet Economy


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Major Forces Shaping the

Internet Age (Fig. 3-1)


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Major Forces Shaping the

Internet Age

Digitalization &Connectivity Intranets connect

people within acompany.

Extranets connect acompany with itssuppliers.

Internet connectsusers all around theworld.

Internet Explosion

Explosive growth formsthe heart of the New

Economy. Companies must adopt

Internet technology orrisk being left behind.


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Company

Customizesthe

Market Offering

Customers Design

the Market Offering

Old Economy Revolved Around ManufacturingCompanies. New Economy Revolves Around

Information Businesses.

Customization and Customerization


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Marketing Strategy in the New

Internet Age

Conducting business inthe new Internet Agewill call for a new model

for marketing strategyand practice.

All buying and sellingmay involve directelectronic connections

between companiesand customers.

Marketing should playthe lead rolein shaping

new company strategy.


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e-Business, e-Commerce, ande-Marketing in the Internet Age

e-BusinessInvolves the Use of Intranets, Extranets & the Internet

to Conduct a Companys Business

e-Commerce Involves Buying &Selling Processes Supported by Electronic Means

E-Marketing e-sellingside of e-commerce


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Benefits to Buyers

Convenient

Buying is Easy and Private

Greater Product Access and Selection

Access to Comparative Information

Buying is Interactive and Immediate

e-commerce Yields the Following Benefits

to Buyers


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Benefits to Sellers

Customer Relationship Building

Reducing Costs & Increasing Speed and

Efficiency

Offers Greater Flexibility

Truly Global Medium

e-commerce Yields the Following Benefits

to Sellers


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E-Commerce Domains (Fig. 3-2)


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B2C (Business to Consumer) Sales expected to

increase from $34 billion

in 2001 to $130 billion by2006.

Provides e-marketerswith access to

consumers in all agegroups.

More customer-initiated

and customer-controlled.


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B2B (Business to Business)

Estimates are thatB2B e-commerce will

reach $3.6 trillion in2003.

By 2005, more than

500,000 enterpriseswill participate asbuyers, sellers, orboth.

Much e-commercetakes place in open

trading networks: http://www.plasticsnet.c

om/

Some companies arealso setting up privatetrading networks(PTNs)
http://www.plasticsnet.com/http://www.plasticsnet.com/http://www.plasticsnet.com/http://www.plasticsnet.com/


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C2C (Consumer to Consumer) Occurs between people

over a wide range of

products and services. EBays C2C transactedmore than $5 billion intrades last year.

Involves interchanges ofinformation through:

Forums

Newsgroups


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C2B (Consumer to Business)

Todays consumers can contact andcommunicate with companies.

Consumers can search out sellers on theWeb, learn about their offers, and initiatepurchases.

Example: Using http://www.priceline.com/,

consumers can bid for airline tickets, hotelrooms, etc.

Then, sellers decide whether to accept theiroffers.
http://www.priceline.com/http://www.priceline.com/


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Types of e-Marketers (Fig. 3-3)


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Click-and-Mortar Companies

Many resisted adding e-commerce because ofpotential for channel conflict and cannibalization.

Many are doing better than brick or click-onlyoperations i.e. http://staples.com. Why? Trusted brand names & financial resources,

Large customer bases,

Knowledge & experience, Good relationships with key suppliers,

Ability to offer customers more options,

Buy online & return unwanted merchandise to store.
http://www.staples.com/http://www.staples.com/

Documents

Spring 12 BMS Mktg Lecture 6