INTRODUCTIONWELCOMESlide 3BIRTH PHASEBIRTH PHASE (continued)WHAT’S NOT WORKINGWHAT’S WORKINGINDUSTRIES REVOLUTIONIZEDLESSONSMORE LESSONSSlide 11EXPECTATIONS GROWTH PER YEAR B2B +B2CVIEWS OF THE INTERNETGROWTH DRIVERSSUMMARYCOURSE REVIEWSlide 17STRATEGIC QUESTIONSSTRATEGIC QUESTIONS (CONT.)ADMINISTRATIONFEEDBACKINTRODUCTIONInternet Marketing 15.823Professor Glen L. UrbanSpring 2001WELCOME•EXCITING TIME -- New Technology•LIFE CYCLE -- State of the Art•WHAT’S NOT WORKING -- WHAT IS•LESSONS OF BIRTH PHASE•EXPECTATIONS•OUTLINE OF COURSELife Cycle of TechnologyBirth Growth MaturityBIRTH PHASE•High Expectations•Gold Rush•Claim the High Ground -- Grow Big Fast•Get Sales then Worry About Profit•Ready Venture Capital•Natural ExperimentationBIRTH PHASE (continued)•Substitution with Technology–Information (search engines)–Catalogues–Self service•Early Innovation–Shopping malls–Supply chain–Aggregation–PriceWHAT’S NOT WORKING•Pure Play B2C–High acquisition cost–Low Conversion, Repeat, Repurchase, Margins•Advertising Model–Small Audience–Click Through and cost/000 down •Exchanges–Not Include channel Players–Little Solution/Decision Content•Technology Play Only•BuzzWHAT’S WORKING•Large Volume Branded Sites–Portals–2nd generation eTailers•Reverse and Commodity Auctions•Transaction Fee Models•Clicks and Mortar•Infrastructure -- software, computers, networksINDUSTRIES REVOLUTIONIZED•Stock Trading•Autos•Travel•Telecom/Computers•GamesLESSONS•Fundamentals–Value to customer–Technology Link to Customer Need–Business Model - ROI•Operations–Reliability/Scalability–fulfillment/service•Finance–Do not Be Over Influenced by $$$–Realism -- Contingency PlanMORE LESSONS•Marketing–Core Benefit Proposition–Selling is Tough Job–Allocate Resources Here•Innovation–Internet Speed is High Risk–Adoption May be Slow–Need Structured ProcessEXPECTATIONSBirthGrowthMatureEXPECTATIONSGROWTH PER YEAR B2B +B2C•0-10%•10-25%•25-50%•50-75%•75-100%•Over 100%VIEWS OF THE INTERNET•Direct Mail / Catalog Substitute•Advertising Enhancement•Magazine/Newspaper Substitute•New Information Source•An Additional Store•New Channel / Relationship•New WorldGROWTH DRIVERS•Customer Experience -- Recommendations and Personalization•Profit -- ROI•Community•Established Firms•eMarketing -- Sales Productivity and CRM•Technology -- wireless/broadband•TrustSUMMARY•Bright Future for Growth•Profit Opportunities•Good Fundamental Management RequiredCOURSE REVIEW•Outline•Cases•ProjectsUnderstanding CustomersConsumer BehaviorB2C vs B2BStrategy FormulationTrust vs. PushProduct DesignSegmentationPositioningCustomer AcquisitionAdvertising / PR/SellingPricing & PromotionDistributionChannelLogisticsRelationship BuildingFulfillmentServiceSTRATEGIC QUESTIONS•Why are people buying on the Internet/why is conversion rate so low?•Trust Based Marketing-- When to use it?•Are there any opportunities left? How do you find them?•Is personalization and one to one marketing the ultimate segmentation?•How do we compete if we are not the first entrant?STRATEGIC QUESTIONS (CONT.)•What are the roles of Advertising and Selling in eMarketing success?•Is Internet Marketing going to be a price game only?•Is a separate company the only way to solve the Internet channel conflict?•Will single sources (portals/mega retailers) own the customer relationship?•What is the next wave in Internet Marketing and how do you ride it?ADMINISTRATION•TA’s–Ben Gibbon–Sebastian Periera–Shyan Wen–Srinath Narayanan•URLFEEDBACK•Evaluation–project (group) -- 40%–class participation -- 20%–case discussion -- 40% •Student Feedback–To TA’s–Mid Course Input–Final Course