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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)
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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.
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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/Top Related