Download Ch-17 - Kutztown University

Internet Marketing & e-Commerce
Ward Hanson
Kirthi Kalyanam
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Part Three: Chapter 17
Organizing for Online Marketing
“The businessman of the present day must be continually on
the jump, the slow express train will not answer his purpose,
and the poor merchant has no other way in which to secure a
living for his family. He must use the telegraph.”
New York businessman W.E. Dodge, 1868
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Internet as Appliance
• As it becomes ingrained into everyday
life, the Internet increasingly functions
as an appliance or utility
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Internet as Appliance
• As it becomes ingrained into everyday
life, the Internet increasingly functions
as an appliance or utility
• As an appliance, the Internet is well
understood, even expected, and
consumer behavior has adapted to it
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Internet as Appliance
• As it becomes ingrained into everyday
life, the Internet increasingly functions
as an appliance or utility
• As an appliance, the Internet is well
understood, even expected, and
consumer behavior has adapted to it
• With ubiquity comes new legal issues,
organizational demands, higher
standards for safety, accessibility
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Internet as Appliance
Improving technical
performance is less
important as a
technology becomes
an appliance.
SOURCE: Adapted from Donald Norman,
The Invisible Computer (Cambridge, MA:
MIT Press, 1998), 32-33
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Organizing for Online Marketing
SOURCE: George Day, “Organizing for Interactivity,” Journal of
Interactive Marketing 12, no. 1 (Winter 1998): 47-53
Adopting Internet technologies forces organizational
restructuring and investments to meet new
challenges of interaction and personalization
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Organizing for Online Marketing
• Publishing sites maintain simple
organization but face challenge of
providing timely information to keep
pace with consumer expectations
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Organizing for Online Marketing
SOURCE: ©1998 G.B. Trudeau. Reprinted by permission of UNIVERSAL PRESS SYNDICATE
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Organizing for Online Marketing
• To support dynamic content, greater
organizational demands
– Importance of creating access policies
– Coordinating range of contacts and
technologies
– Live marketing databases and fullcustomer databases
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Organizing for Online Marketing
• Creating a dialogue with markets of
individual consumers strains most
existing organizational structures
– The span-of-control problem
– The problem of slow response times
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Organizing for Online Marketing
• Solving the span-of-control problem:
– Regional organization
– Product organization
– Customer organization – fast gaining
favor with Net marketers
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Organizing for Online Marketing
Alternative organizational emphasis
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Organizing for Online Marketing
• Solving the problem of slow response
– 24-hour benchmark for responses to
customer email
– Key considerations in responses
•
•
•
•
Resources devoted
Uniqueness of message
Appropriateness of message
Technology for interaction
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Organizing for Online Marketing
SOURCE: Purdue University Benchmark Study, November 2004
Slow response in company replies to customer email
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
Organizing for Online Marketing
SOURCE: Modified from eGain Corp.
Flowchart for automating message responses
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Organizing for Online Marketing
Matching technologies and response rates
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Avoiding Legal Pitfalls
• New marketing technologies open field
of emerging case law
• All marketers working with intellectual
property require basic understanding of
trademark and copyright laws,
accuracy of information and risk of
unsolicited communications
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Avoiding Legal Pitfalls
Understanding when external materials can be
used without encountering copyright issues
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Avoiding Legal Pitfalls
• Network connections and jurisdiction
– For domain names, registration alone
does not eliminate trademark issues
– Challenges of establishing personal/legal
jurisdiction for online entities
– Tax rules influence e-commerce, location
of physical properties, and encourage
digital product delivery
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Avoiding Legal Pitfalls
• Highly individualized information raises
legal implications and questions of
accuracy and privacy
• Key areas for inaccuracy concerns:
– Credit reports
– Criticism of individuals or companies
– Information for critical decision making
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Avoiding Legal Pitfalls
• Privacy policies alleviate consumer
concerns about disclosure
• Core areas outlined by FTC:
– Notice/Awareness
– Consent/Choice
– Access/Participation
– Integrity/Security
– Enforcement/Redress
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Avoiding Legal Pitfalls
• Privacy policies often lack compliance
with FTC core areas
• Risk of legal exposure and loss of
consumer trust
• Model from the TrustE organization,
installing of chief privacy officers
(CPOs)
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The Online Road Ahead
• Assume Internet marketing GPTs will
continue rapid pace of development
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The Online Road Ahead
• Assume Internet marketing GPTs will
continue rapid pace of development
• Potential issues of cost effectiveness:
consumer demand could lag behind
engineering capabilities
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation
The Online Road Ahead
• Assume Internet marketing GPTs will
continue rapid pace of development
• Potential issues of cost effectiveness:
consumer demand could lag behind
engineering capabilities
• As Internet marketing emerges as primary
means of interacting with customers, new
determinations navigate problem of
machines evolving faster than humans
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The Online Road Ahead
• A (modest) glimpse of the future – and
a reminder of the difficulty of looking
ahead – from Looking Backward,
Edward Bellamy’s 1887 novel
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The Online Road Ahead
“The orders are read over, recorded, and
sent to be filled, like lightning. … The
packages are then delivered by larger tubes
to the city districts, and thence distributed to
the houses. You may understand how
quickly it is all done when I tell you that my
order will probably be at home sooner than I
could have carried it from here.”
Edward Bellamy, Looking Backward, 1887
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