BA320

1
Marketing in the Digital Age

• BA320
• Summer 2006

2
Agenda for Today

• Explain how companies have responded to the
  Internet and other powerful new technologies with
  e-business strategies, and how these strategies
  have resulted in benefits to both buyers and
  sellers.
• Describe the four major e-marketing domains.
• Discuss how companies go about conducting
  e-marketing to profitably deliver more value to
  customers.

3
Figure 14-1E-Marketing Domains
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Business to Consumer (B2C)

• The online selling of goods and services to final
  consumers.
• Expected to generate 316 billion in 2010, or 13
  of retail sales.
• There is increasing diversity in buyers.
• This provides increasing opportunities for
  targeting markets.
• Is customer initiated and controlled, requiring
  new marketing approaches.

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Business to Business (B2B)

• B2B sales dwarf B2C sales
• B2B e-commerce was nearly 4 trillion in 2003.
• Uses trading networks, auction barter sites,
  spot exchanges, online product catalogs, and
  more.
• Most major B2B marketers offer online product
  information, purchasing, and support.
• Open trading exchanges
• huge specialty e-marketspaces to conduct
  transactions.
• More private trading exchanges are being
  developed for B2B transactions.

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B2B Open Trading Exchange
Marketing in Action

• Plasticsnet.com is an Internet marketplace that
  connects more than 200 suppliers with over 90,000
  buyers monthly.

www.plasticsnet.com
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Consumer to Consumer (C2C)

• Occurs on the Web and includes a wide range of
  products and services.
• Auction sites such as eBay offer marketplaces to
  buy or exchange goods.
• Blogs and forums facilitate information
  interchanges.
• Blog online journals where people post thoughts
  on a narrowly defined topic.
• Forums discussion groups located on commercial
  online services.

8
Consumer to Business (C2B)

• Consumers can search out sellers, view offers,
  initiate purchases, and give feedback.
• At Priceline.com, consumers can name their own
  price for a flight.

www.priceline.com
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Lets Talk!

• Movietickets.com sells movie theatre tickets over
  the Internet.

www.movietickets.com
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Figure 14-2Types of E-Marketers
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Click-Only Companies

• E-tailers
• Search engines and portals
• Shopping comparison sites
• Internet service providers
• Transaction sites
• Content sites

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Reasons for dot.com Failures

• Poor research or planning.
• Relied on spin and hype instead of marketing
  strategies.
• Spent too heavily on brand identities.
• Devoted too much effort to acquiring new
  customers instead of building loyalty.

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Click-and-Mortar Companies

• Established firms initially resisted adding Web
  sites because of channel conflict and
  cannibalization concerns.
• Risk of online competition forced firms to become
  click-and-mortar companies. Most are now doing
  better than click-only companies because of
• Trusted brand names and more resources
• Large customer bases
• More knowledge and experience
• Good relationships with suppliers
• Can offer customers more options

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Figure 14-3Setting Up for Online Marketing
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Corporate Website

• Designed to build customer goodwill and
  supplement other sales channels.
• Offers information to customers.
• Builds closer customer relationships.
• Generates excitement about the company.

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Marketing Website

• Engages consumers in an interaction that moves
  them closer to a direct purchase or other
  marketing outcome.
• May include catalogs, shopping tips, promotional
  features, and more.

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Designing Attractive Web Sites

• The 7 Cs of Effective Web Site Design
• Context
• Content
• Community
• Customization
• Communication
• Connection
• Commerce
• Constant change helps encourage repeat visits.

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Lets Talk!
www.ragu.com/
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Online Ads

• Forms of online advertising
• Banner ads
• Tickers (move across the screen)
• Skyscrapers (tall, skinny ads at the side of a
  page)
• Rectangles (boxes that are larger than a banner)
• Interstitials (pop up OR pop under between
  changes on Web site)
• Search-related ads (contextual advertising)
• Rich media ads (incorporate animation, video,
  sound, and interactivity).

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Forms of Online Ads
Marketing in Action

• Pennlive.com takes the mystery out of buying
  online ads, by showing samples of common formats
  available for purchase.
• Visit the Interactive Advertising Bureau for
  additional information.

http//www.iab.net
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Online Promotion

• Forms of online promotion
• Content sponsorships (sponsoring special content)
• Microsites (limited areas paid for by an external
  company)
• Alliances and affiliate programs (work with firms
  to promote each other)
• Viral marketing (Internet version of
  word-of-mouth)

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Viral Marketing
Marketing in Action
Got Milk? Apparently aliens didnt until they
started abducting our cows. The cowabduction.com
Web site is an by the California Milk Processors
Board to promote milk in a fun fashion, and to
stimulate viral marketing.
http//www.cowabduction.com/
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Rest Stop Reviewing the Concepts

• Explain how companies have responded to the
  Internet and other powerful new technologies with
  e-business strategies, and how these strategies
  have resulted in benefits to both buyers and
  sellers.
• Describe the four major e-marketing domains.
• Discuss how companies go about conducting
  e-marketing to profitably deliver more value to
  customers.