ELC 310 Day 24 Agenda Course evaluation Seventh Student Case Travelocity by Randy presentations at least 15 min before class so I may upload to web server One more case to GO Discussion/lecture The Future of Digital Marketing Grade Generation for analysis Demonstrated Mastery of Case Study 35% Understanding of How Case Study Fits 35% Presentation effectiveness 10% Quality of PowerPoint 10% Ability to Engage the Class in Discussion 10% 2 nd round of grades will be posted Dec 12 Rest of Schedule Today Course evaluations Travelocity (Randy) The Future of Digital Marketing Dec 12 Citibank Online (Emlyn) Take Home Quiz #4 Assigned Dec 1 PM Take Home Quiz #4 Due Written Case Study & Presentations Due Overview Introduction Marketing Structural Changes All Marketing is Digital Marketing Implications for Marketing Managers Unanswered questions The final picture Introduction We have reached the end of the beginning The Internet, eCommerce and eMarketing are maturing Will penetrate all aspects of life and business Interconnectivity will increase in depth and reach Key indicators Cell 3G Consumer Internet access Broadband Wireless expanding reach Digital computing & telecommunications getting cheaper and increasing in value every day Marketing Structural Changes Three key areas More information Marketers must add depth to their content Offline channels drive consumer to information rich online channel Consumer self-education Information must be Timely, realizable, accusable, in-depth Free, perfect and now More Channels Marketing using multichannel communications Customers want online access to everything Last mile problems solved by online order and offline pickup Goal is up sell, cress sell and build relationship with customer Requires intensive coordination between channel to provide a one face, one voice view to the customers regardless of what channel the customer chooses to use More Innovation Digital technology is an innovation accelerator All Marketing is Digital Marketing In the beginning, companies had separate e-business units Now Business = eBusiness Customer power can only increase Better information Multichannel access Time poor and information rich means no tolerance for marketing funny business B2B customers End to end integration Size wont matter More efficient operation Lower switching costs as technology gets cheaper and more standardized More emphasis on value-added B2B relationships All Marketing is Digital Marketing The rise of trust, the Fall of the Untrustworthy customer power + cost of CRM = trust based marketing Push marketing will die off Customers dont want low valued products and services Trust based marketing requires new tools and software Larger companies have advantage Product divide Commodity Push High value luxury items Trust Implications for Marketing Managers Lots of new opportunities Leverage technology to create new marketing strategies New value propositions for customers More ways to connect Technology greater automation Frees up marketers to become more strategic Increased demand for seamless, high quality service Unanswered questions How far down the economic ladder will digital technologies penetrate, and will government encourage and mandate some form of universal service or broadband digital dial tone? How will other countries and other cultures ( with their different viewpoints on intellectual property rights, personal freedom, data privacy, trust levels, business regulations, and so on) pursue the adoption of digital technologies and benefit from them? What will happen as the likes of Microsoft, America Online, Dell, T-Mobile, Sony, and Visa jockey for a greater slice of the digital economic pie and insert themselves into a greater percentage of on-line interactions? Unanswered Questions Will regulators, entertainment producers, entertainment distributors, and consumer electronics maker agree on mechanisms for distributing music and video in a way that respects fair use, provides equitable payments to copyright owners, is economically viable for distributors, and is easy too use by consumers? Will government impose regulations to preserve privacy and security of personal data? What will happen if the US Postal Service implements its proposed plan to provide anaddress for every physical address in the country? Will cagey consumers seek ever more powerful methods of blocking spam, banner ads, cookies, TV commercials, and sales calls through some combination of technology and government regulation? Will stockholders evaluate long-run customers relationships positively and pay more for their stock? Understanding customer needs and behavior Formulate a strategy to fill needs Implement effectively and efficiently Build trusting relationship with customers Understanding customer needs and behavior New feedback and data-gathering channels to uncover customer's needs Reduced costs for high-volume data warehousing New data analysis methods and software tools to spot developing trends New on-line tools to test concepts and query customers Formulate a strategy to fill needs New knowledge work tools to coordinate strategy internally New simulations and modeling tools to forecast response New reach to leverage the products and services of business partners Implement effectively and efficiently Multiple media for connecting with and delivering service to customers New enterprise tools for internal operation excellence Supply chain coordination tools to aid in promotions and fulfillment Multiple channels for distribution and reaching customers Build trusting relationship with customers New tools to customize products and services Trust-based advisors to help customers make the right decisions Increased transparency Reduced costs for deeper long-run relationships with customers