Download ELECTRONIC AGE MARKETING

ELECTRONIC AGE MARKETING
 Internet basics
 Domains and domain
names
 Economics of ecommerce
 Desktop publishing in
Word
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
1
Internet Basics
 Access to the Internet
 Dial-up
 Broadband
 For businesses and organizations (e.g., T1, T3)
 For individuals
 Cable, DSL, other
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Hardware
 Servers
 Local
 Remote
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Routers—direct “traffic” to and from work stations
 Large office
 Home networks
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
2
More Internet Basics
 Internet design for redundancy
 Different possible paths between two points
 Computer “down” time
 Some Internet tools
 E-mail
 World Wide Web
 USENET
 FTP (file transfer protocol—for uploading or
downloading files)
 Telnet (access to large “mini” or mainframe computers
with unsophisticated interface)
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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More Internet Basics
 Intranets (within organization) vs. extranets
 Web addresses
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MKTG 476
Uniform Resource Locator (URL) (e.g.,
sdsu.edu)—will “route” a user to a numeric
location (e.g., 192.107.41.31)
Protocol preface: http:// (hypertext transfer
protocol)
Domain names: Prefix (e.g., sdsu); suffix
(e.g., .edu, .com)
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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Domain names
 Uniform Resource Locators (URLs)
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Standard way to access an Internet location
Used to translate meaningful words into
numerical address
E.g.,
 http://www.sdsu.edu
Protocol ID: Within
domain
location
MKTG 476
Domain
name
MARKETING IN THE ELECTRONIC AGE
Top
level
domain
Lars Perner, Instructor
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Other examples
 http://mea.consumerpsychologist.com
 http://Ivcampus.sdsu.edu
 http://www.amazon.co.uk
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
6
Wireless connections
 Reach

“Hot spots” vs. broader reach
 Speed
 Security
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
7
Economics of Internet Commerce
 Intense competition for large demand products (large quantity
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demanded attracts many sellers)
Use of large demand products as loss leaders (e.g.,
Amazon.com bestsellers)
Competition will force reduced costs—if any—to be passed on
to customers
Competition makes charging for shipping and handling difficult.
This is often more expensive than traditional distribution.
Less competition on specialty products
Established “brick-and-mortar” firms have large cash reserves
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
8
Considerations in Evaluating ECommerce Potential
 Value-to-bulk ratio
 Ability of consumer to evaluate quality and fit
through online description
 Extent of customization needed
 Geographic dispersal of consumers
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
9
How Suitable For Internet Commerce?
Are There Differences Among Segments?
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
10
Business Models of e-Commerce
 Business model design
 Revenue models
 Customer/seller models
 E-auctions
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
11
Business Model Design
 Business assessment
 Digitalitality level of a business
 Profit orientation (profit center business or loss center
for spillover benefits)
 Delivering customer value
 Four Ps of Value
 Product
 Price
 Place
 Promotion
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
12
Revenue Models
 Revenue streams
 Evaluating streams
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Strength
Stability
Cyclicality
Resource needs
 Interrelationships between streams
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
13
Source of Site Income
 Free access sites—profit derived through
 Advertising/commissions
 Sponsorships
 Promotion or support of other business line
 Paid access
 Complete access for one charge
 Access to core with extra charge for premium
 Problems of “micro payments)
 Hybrids
 One party pays (e.g., job recruitment sites)
 Two-tier—some free access; charge for premium
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
14
Types of Business (Pure) Models
Seller
Buyer
Business
Consumer
Business
B2B
B2C
Consumer
C2B
C2C
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
15
Hybrids
 B-2-B+C (Business to business and
consumer)
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E.g., Staples.com
 Complex:

MKTG 476
Amazon.com: B2C and C2C
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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B2C
 Direct sellers
 Intermediaries
 Advertising-based businesses
 Community-based model
 Fee-based model
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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Characteristics of Successful B2C
Companies
 High number of visitors
 High conversion rates
 Higher revenue per transaction
 Higher average gross margin
 No impact of
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MKTG 476
Number of transactions per consumer
Acquisition cost
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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“Clicks-and-Bricks” Model
 Integration of electronic and traditional commerce
 Consumers can shop and return both ways
 Synergies
 Forms
 Spin-offs
 Strategic partnerships
 Joint ventures
 Within-company division
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
19
B2B
 Typical characteristics
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MKTG 476
High volume, value
Purchase specificity
Team buying/decision making
Long term relationships
Leasing issues
Competitive bidding
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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C2C
 Usually require intermediary (e.g., eBay)
 Issues of reputation
 “Infrastructure” issues (e.g., ability to take
credit card payments)
 Economics of
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MKTG 476
Labor (seller)
Cost of search (buyer)
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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C2B
 Rare category
 Agency coordinating sales of
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MKTG 476
Property (e.g., antiques)
Personal skills
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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E-Auctions
 Types
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English
Dutch
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Speedier
May result in lower prices when multiple items are
sold
 Bidding behavior issues
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MKTG 476
Timing of bids
“Sniping”
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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Desktop Publishing in Word
 Desktop publishing software
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Word, WordPerfect
Fancier programs: MS Publisher, InDesign,
Adobe Illustrator, Macromedia Fireworks,
Adobe Photoshop
 Possibilities within Word
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MKTG 476
Brochures
Posters
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
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Some Features
 Columns
 Tables
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Imported
Created in Word
 Graphics
 Fonts
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
25
Tables
 Use for
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Control of formatting—e.g., course document
header
Control of placement—e.g., graphics
Organization of information
 “Merge” and “split” cells
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
26
Posters
 Paper orientation
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“Portrait” (regular)
“Landscape” (rotated 90 degrees)
 Tables for graphics
 Fonts
 Images
 Document borders
 Fonts
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
27
Fonts
 Monospace (e.g.,
Courier) vs.
proportionally spaced
(e.g., Arial, Times
Roman)
 Font sizes
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
MKTG 476
Measured in “Points”
(average length and
height of a letter)
All fonts with the same
“size” are not equally
large! (Times Roman is
more “efficient”)
 Serif vs. sans-serif
 Serif fonts have sharp
edges (e.g., Times
Roman)
 Easier to read for
longer documents—
less eye strain
 Sans-serif lack sharp
edges
 Generally look more
pleasant
 Used for headlines
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
28
Some “Standard Fonts”
 Courier (not used much in contemporary
documents, but has been found effective in
direct mail)—looks like a typewriter
 Times Roman—default on many programs
 Arial (Helvetica)—common sans-serif font
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
29
Fonts Usually Standard in Windows
(But Not Necessarily Macintosh)
 Comic Sans
 Letter gothic (monospace)
 Trebuchet (proportional, hybrid serif/sans-
serif)
 Book Antiqua (proportional, serif)
 Century gothic (proportional, sans-serif)
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
30
Preserving Formatting
 Use of “standard” fonts
 Testing across
 Multiple browsers
 Computer types and configurations
 Use of invisible “tables”
 Use of Adobe Acrobat (PDF) files
 Good for preserving document formatting
while avoiding large task of reformatting
 May require the user’s browser to open Adobe
Acrobat (resulting in delay)
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
31
Brochures
 4 page 5.5x8.5 brochure:
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Use landscape orientation
Reduce right and left margins to 0.5”
Make page into two columns
Start in column 2 on first page
Last page is column 1 of first page
 Templates
 Font selection
 Inserting graphics
MKTG 476
MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
32
Printing Brochures and Posters
 Large quantity:
 File submitted to
printing firm
 Choice of paper
 Glossiness
 Thickness
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 Small quantity in-office
printing
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MKTG 476
Large posters
Laser printing vs. inkjet
Inkjet usually
provides superior
quality
 Laser is usually
cheaper
Paper choices
 Absorbency
 Thickness
 Glossiness
Quality of print
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MARKETING IN THE ELECTRONIC AGE
Lars Perner, Instructor
33