Electronic Marketing

Electronic MarketingWhat is Marketing?PowerPoint PresentationSlide 4Slide 5Slide 6Slide 7Seven Stages of Internet MarketingFraming the market opportunityFormulating the marketing strategyDesigning the customers experienceCrafting the customer interfaceSlide 13Slide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Electronic MarketingRobert ChiWhat is Marketing?•A process–Market analysis–Market planning–Implementation–Control•A mix of –Product–Promotion–Pricing–distribution4A Model of EC Consumer BehaviorPurchasing decision begins with customer’s reaction to stimuliDecisionMakingProcessVendors’ controlled SystemLogisticSupportPayments,deliveryTechnicalsupportWeb design,Intelligent-agentsCustomerserviceFAQ,e-mail,call centers,one-to-oneStimuliMarketingPricePromotionProductQualityOthersEconomicalTechnologyPoliticalCulturalBuyers’ DecisionsBuy or notWhat to buyWhere (vendor)WhenHow much to spendRepeat purchasesIndividualCharacteristicsAge, gender, ethnicity,education, lift style,psychological, knowledge,values, personalityEnvironmentCharacteristicsSocial, family,communities5 Consumer Types Individual consumers : get much of the media attention Organizational buyers : do most of the shopping in cyberspace Purchasing types Impulsive buyers : purchase products quickly Patient buyers : purchase products after making some comparisons Analytical buyers : do a substantial research before making the decision to purchase products or servicesPurchasing experiences Utilitarian : shopping “to achieve a goal” or “complete a task” Hedonic : shopping because “it is fun and I love it”A Model of EC Consumer Behavior (cont.)Variables InfluencingDecision Making ProcessEnvironmental Variables Social variablespeople influenced by family members, friends, co-workers, “what’s in fashion this year”, Internet communities and discussion groups Cultural variables Psychology variables Other environmental variables available information, government regulations, legal constraints, and situational factors11Consumer Purchasing Decision-MakingRoles of people play in the decision making process Initiator : the person who first suggests or thinks of the idea of buying a particular product or service Influencer : a person whose advice or views carry some weight in making a final buying decision Decider : the person who ultimately makes a buying decision or any part of it - whether to buy, what to buy, how to buy, or where to buy Buyer : the person who makes an actual purchase User : the person who consumers or uses a product or service12After purchase serviceand evaluationPurchase and deliveryAlternative evaluation,negotiation and selectionInformation search(what? From whom?)The Purchasing decision Making ModelConsumer Purchasing Decision-Making(cont.)Need identification(Recognition)Seven Stages of Internet Marketing•Framing the market opportunity•Formulating the marketing strategy•Designing the customers experience•Crafting the customer interface•Designing the marketing program•Leveraging customer information through technology•Evaluating the marketing programFraming the market opportunity•Trapped value•New to the world value•Hybrid valueFormulating the marketing strategy•SegmentationMeaningful - Actionable - Financially attractive•Target market selection•Positioning•Marketing mixDesigning the customers experience•Stage 1: functionality•Stage 2: Intimacy•Stage 3: EvagelismCrafting the customer interface•Context•Content•Community•Customization•Communication•Connection•commerceLink between marketing strategy and business strategy-Goal alignment set up a goal- Resource alignment more resources to the same direction-Activity alignment do the same activities-Implementation alignmentMarketing mix-Price- Product-Promotion-DistributionSegmentation Prioritization (when you have a choice)1. Buyer – Readiness strategy (affordable)2. Attitude – receptive to the product (want to)3. Trend/Market leaders4. Willingness to payPure vs. Mixed Business models in marketing strategyPure Online E – CommerceSegmentation Base – Demographic - Geographic - Psycho graphic - Cognitive & Behavioral Effective segmentation - Meaningful - Actionable - Financially AttractiveTarget Market Selection- Segment size and growth – Financially- Structural attractiveness – Porter’s model -Company resources - FeasiblePositioningDisney – Happiness or FunStarbucks Coffee – Relax & EnjoyMercedes – Symbol of StatusPositioning Plan1. Identify current postion2. Identify ideal position3. Develop alternatives to achieve ideal4. Select and implement promising5. Compare new actual with ideal postionBrick and Mortar modelSegmentation-No change-Market expansion-Reclassification – Expansion/Reduction-Reclassification