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Marketing in the Digital Age

•Chapter 3

•PowerPoint slides

•Express version

•Instructor name

•Course name

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Principles of Marketing, Sixth Canadian Edition

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Learning Objectives

• After studying this chapter, you should be able to:– Identify the major forces shaping the new digital age

– Explain how companies have responded to the Internet and new technologies with e-business strategies, resulting in benefits for both buyers and sellers

– Describe the four major e-commerce domains

– Discuss how companies conduct e-commerce to profitably deliver more value to customers

– Overview the promise and challenges that e-commerce presents for the future

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Major Forces Shaping the Internet Age

• Connectivity

• The explosion of the Internet

• New types of intermediaries• Customization

Figure 3.1

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Electronic Business Terms

• Ebusiness– Using electronic platforms (intranets, extranets, Internet) to

conduct business

• Ecommerce:– Buying and selling processes supported by electronic means

– Includes Internet (online) marketing

– Includes epurchasing (eprocurement)

• Emarkets:– Marketspaces instead of marketplaces

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Benefits of E-Marketing

To buyers:– Convenience

– Easy

– Private

– Greater product access and selection

– Wealth of comparative information

– Interactive and immediate

– Greater consumer control using permission-based marketing

To sellers:– Interactive tool for

building customer relationships

– Reduced facility and operating costs

– Improved cash flow

– Increased speed and efficiency

– Greater flexibility

– Global medium

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Ecommerce Domains

• B2C ecommerce

• B2B ecommerce– Open trading networks

– Private trading networks

• C2C ecommerce

• C2B ecommerceFigure 3.2

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Types of E-Marketers

• Pure play companies:– Etailers

– Search engines

– Internet service providers (ISP)

– Transaction sites

– Portals or content sites

Figure 3.3

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Sources of E-Commerce Revenue

• Product and service sales income

• Advertising income

• Sponsorship income

• Alliance income

• Membership and subscription income

• Profile income

• Transaction commissions and fees

• Market research and information fees

• Referral income

Table 3.1

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Setting Up an E-Marketing Presence

• Creating a web site– Corporate web site

– Marketing web site

• Designing attractive web sites:

– Context

– Content

– Community

– Customization

– Communication

– Connection

– Commerce

Figure 3.4

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Setting Up an E-Marketing Presence

• Online advertising and promotion:– Banner and ticker advertisements

– Interstitials

– Skyscrapers– Browser advertisements

– Content sponsorship

– Microsites

• Viral marketing

• Web communities

• E-mail

• Webcasting

Figure 3.4

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Promise and Challenges of Ecommerce

• Continuing promise of ecommerce:– From a complete revolution in conducting business, to

– Just one approach in a fully integrated marketing mix

• Internet profitability

• Legal and ethical issues– Online privacy and security

– Internet fraud

– Segmentation and discrimination

– Access by vulnerable or unauthorized groups

Canadian federal lawPersonal Information Protection and ElectronicDocuments Act (2001):

•Consumer knowledge and consent•Limitations•Accuracy•Right to access

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In Conclusion…

• The learning objectives for this chapter were:– Identify the major forces shaping the new digital age

– Explain how companies have responded to the Internet and new technologies with e-business strategies, resulting in benefits for both buyers and sellers

– Describe the four major e-commerce domains

– Discuss how companies conduct e-commerce to profitably deliver more value to customers

– Overview the promise and challenges that e-commerce presents for the future