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Spring 12 BMS MKTG Lecture 6

The document discusses how marketing is changing in the new internet economy. Major forces driving this change include digitalization and connectivity through technologies like intranets, extranets, and the internet [1]. The internet is exploding in growth and companies must adopt internet technologies or risk falling behind [2]. Marketing strategy must now involve direct electronic connections between companies and customers [4]. E-business, e-commerce, and e-marketing are emerging and involve using digital technologies to conduct business and sales [5-6]. This new digital landscape provides both benefits to buyers like convenience and sellers like reducing costs [7-8].

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97 views15 pages

Spring 12 BMS MKTG Lecture 6

The document discusses how marketing is changing in the new internet economy. Major forces driving this change include digitalization and connectivity through technologies like intranets, extranets, and the internet [1]. The internet is exploding in growth and companies must adopt internet technologies or risk falling behind [2]. Marketing strategy must now involve direct electronic connections between companies and customers [4]. E-business, e-commerce, and e-marketing are emerging and involve using digital technologies to conduct business and sales [5-6]. This new digital landscape provides both benefits to buyers like convenience and sellers like reducing costs [7-8].

Uploaded by

talha89
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Marketing in the New Internet Economy

Major Forces Shaping the Internet Age (Fig. 3-1)

Major Forces Shaping the Internet Age


Digitalization & Connectivity
Intranets connect people within a company. Extranets connect a company with its suppliers. Internet connects users all around the world.

Internet Explosion
Explosive growth forms the heart of the New Economy. Companies must adopt Internet technology or risk being left behind.

Customization and Customerization


Old Economy Revolved Around Manufacturing Companies. New Economy Revolves Around Information Businesses. Company Customizes the Market Offering

Customers Design the Market Offering

Marketing Strategy in the New Internet Age


Conducting business in the new Internet Age will call for a new model for marketing strategy and practice. All buying and selling may involve direct electronic connections between companies and customers. Marketing should play the lead role in shaping new company strategy.

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


e-Business Involves 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-selling side of e-commerce


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Benefits to Buyers
e-commerce Yields the Following Benefits to Buyers
Convenient Buying is Easy and Private Greater Product Access and Selection Access to Comparative Information Buying is Interactive and Immediate
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Benefits to Sellers
e-commerce Yields the Following Benefits to Sellers
Customer Relationship Building Reducing Costs & Increasing Speed and Efficiency Offers Greater Flexibility Truly Global Medium
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E-Commerce Domains (Fig. 3-2)

B2C (Business to Consumer)


Sales expected to increase from $34 billion in 2001 to $130 billion by 2006. Provides e-marketers with access to consumers in all age groups. More customer-initiated and customer-controlled.
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B2B (Business to Business)

Estimates are that B2B e-commerce will reach $3.6 trillion in 2003. By 2005, more than 500,000 enterprises will participate as buyers, sellers, or both.

Much e-commerce takes place in open trading networks:


[Link] om/

Some companies are also setting up private trading networks (PTNs)


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C2C (Consumer to Consumer)


Occurs between people over a wide range of products and services.
EBays C2C transacted more than $5 billion in trades last year. Involves interchanges of information through:
Forums Newsgroups
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C2B (Consumer to Business)

Todays consumers can contact and communicate with companies. Consumers can search out sellers on the Web, learn about their offers, and initiate purchases. Example: Using [Link] consumers can bid for airline tickets, hotel rooms, etc. Then, sellers decide whether to accept their offers.
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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 of potential for channel conflict and cannibalization. Many are doing better than brick or click-only operations i.e. [Link] 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.
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