e marketing week02

MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

MKTG7037 / MKTG2032

E-marketing

Course StructureWeek No Week beginning Topic(s)/Task(s)

1 19 February Chapter 3 Unique features of internet-based marketing

2 26 February Chapter 4 Consumer behaviour

3 5 March Chapter 5 Creating cybercommunities

4 12 March Chapter 6 Applications for business and non-business

5 19 March* Chapter 7 The internet in marketing strategy

6 26 March Chapter 8 The role of product in internet marketing

7 2 April Chapter 9 Promotion: the internet in the promotional mix

8 23 April Chapter 10 Promotion 2: the internet as a promotional medium

9 30 April Chapter 11 Pricing strategies

10 7 May Chapter 12 Distribution

11 14 May Chapter 13 Services marketing online

13 28 May Chapter 14 Relationship marketing

12 21 May Chapter 15 International marketing

Assessment Due DatesTask Weighting Due• Tutorial/Lab Assessment 20 During semester• Essay Registration 01 March 16• Solo Assignment 20 March 26• Group-Optional Essay 29 May 21• Final Examination 30 June

Solo Assignment• Due: March 26, Monday Week 6, no later than 7pm.

– Electronic Upload via WebCT

• Topic: “Hype or Hope? The value of a new technology for marketing”– This assessment item is a solo paper where the student examines value

of a contemporary technology for marketing practice. The list of contemporary technology includes:

• RFID tags for marketing and marketing research• m-commerce, including m-gaming, m-gambling and m-shopping• MMORPG environments such as Second Life• social media marketing • online viral marketing

• You are expected to write between 1000 and 1500 words addressing the value of one of the five topic areas for marketing, using references to marketing theory, practice and internet theory.

• Full referencing is expected. Penalties apply for not using references.

Group-Optional Essay

• 500 word proposal– Due Friday, Week 4, no later than 7pm

• 4000 word assignment – Due: Monday Week 12 no later than 7pm.

• 1-4 people per group,

• Electronic Upload via WebCT

Possible Essay Topics• “This is not like TV, only better. This is

life”. Discuss this quote in the context of passive consumption of push-media versus active consumption of internet media such as blogs, virtual worlds and self published website”

Tutorials• Forum based

assessment– 17 posters to Week 1.– A good start

• What stopped the rest of you?

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A little diversion into the internet

• Let us remember that there are multiple theories of Intelligent Design. I and many others around the world are of the strong belief that the universe was created by a Flying Spaghetti Monster. It was He who created all that we see and all that we feel. We feel strongly that the overwhelming scientific evidence pointing towards evolutionary processes is nothing but a coincidence, put in place by Him.

– http://www.venganza.org

Talk like a pirate day• Talk like a Pirate Day

– September 19

Snakes on a Plane• Snakes on a blog

– http://www.snakesonablog.com/

• Snakes. On. A PLANE.– http://

www.snakesonaplane.com/

• Cobra Starship

All your base• are belong to us• http://allyourbase.planettribes.gamespy.com/

• http://allyourbase.planettribes.gamespy.com/video3_view.shtml

Remix Culture

Ning• Ning is the fast and

free way to create custom Social Websites– http://www.ning.com/

• No idea what it does, but it looks kinda cool.

ZeFrank• In the category of “I really should know

better”, I present

ZeFrank

• http://www.zefrank.com/snowflake/

• The Show with ZeFrank• http://www.zefrank.com/theshow/archives/2007/02/022207.html

MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

Posting to the Forum

A few points

Styles• Pack leader

– Post an original topic, post it early– Advantage: you set the agenda– Disadvantage: You get the commentary, and have to

defend your post

• Pack follower– Post an original topic, post it late (after the third or fourth

topic)– Advantage: benefit from the experience of others– Disadvantage: Must read the rest of the comments and

threads, and make reference to where the others have already agreed with your position

Styles II• Commentator

– Replies to post– Actively engaged in debate with other users– Needs to show that they’re integrating the

debates from other threads into their position.

• Lurker– Doesn’t post

• You’ll learn something, but no post means no marks

MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

Consumer Behaviour Online

Innovation and adoption• Adoption of the really new product:

– The really new product (RNP) defines a new product category.

– RNPs represent development of a new technology incompatible with existing one.

– RNPs have a propensity to set standards.– RNP is never an easy prospect for consumers to

adopt because of the newness.

Diffusion of innovations• Rogers’ five features of innovations:

– Relative advantage– Compatibility– Complexity– Trialability– Observability

Adoption of Internet users• Innovators: Venturesome (try anything

once)• Early adopters: Respectable (the Net is hip –

adopt now to be a social leader)• Early majority: Deliberate (needs and

wants)• Late majority: Sceptical (ends up needing,

not always wanting)• Laggards: Traditional (want and adopt not)

Rogers’ five categories of innovators

Source: Rogers, M. R. 1983, Diffusion of Innovations, 3rd edn, Macmillan, London.

Internet user categories1. Directed information seekers2. Undirected information seekers3. Bargain hunters4. Entertainment seekers5. Directed buyers

Internet use behaviours• Why people use the Internet:

– Anonymity and the non-corporeal body– Communications: reach out and chat with

someone– Convenience– Information seeking – Global access

Internet use behaviours• Why people use the Internet (contd):

– Community/sense of belonging/pursuit of common interests and goals

– Utility/necessity/fear of being left behind– Recreation, leisure and pleasure– Inherent merit

Internet use behaviours• How people use the Internet – six common

behaviours online:– Search behaviours – involve how people explore

the Internet– Self-service technologies in e-commerce – where

the consumer is engaged in self-service behaviour– Self-representation – the creation of the user’s

identity in CMEs

Internet use behaviours• How people use the Internet – six common

behaviours online (contd):– Self-publication – the creation and publication of

web content– Cybercommuning – active involvement in web

communities– Flow behaviour – engaging in the flow state of

Internet usage

Internet use behaviours• How people use the Internet

– Self-service technologies (SSTs)• SSTs are any form of technology that allows (or

forces) a consumer to replace a personal service (e.g. banking) with a consumer-produced service alternative (electronic banking)

• SSTs are notable among the following types of businesses:

- Airline tickets- Electronic banking- Self-diagnosis medical systems

Internet use behaviours• How people use the Internet

– The key features of SSTs need to be as follows:• Predictable• Customisable• Trialable• Clearly useful

Flow state • The flow state is a result of a consumer’s

interaction with the Internet environment.• A flow state experience can be measured by

a series of factors or ‘symptoms’.• Flow, being a naturally occurring

phenomenon, is difficult to research in marketing.

Flow state• Factors that indicate a ‘flow state’:

– The merging of action and awareness– A higher level of concentration on the task at

hand– A loss of self-awareness and self-consciousness,

and a reduced attention to the opinion that others may hold of the individual

Flow state• Factors that indicate a ‘flow state’ (contd):

– Feelings of control and empowerment– Enjoyment, pleasure and satisfaction from the

flow state– A sense of time distortion, or a loss of time– A sense of telepresence

Flow state• Elements of flow:

– Control– Attention focus– Curiosity and perceived challenge– Intrinsic interest

Flow state• Four common methods or ‘routes’ to the

flow state from perceived challenges:– Search/research/problem solving– Reading/interaction– Composition/creation– Communication

Flow state• What facilitates flow:

– An active involvement– Immediate response– A series of task-oriented activities

Flow state• What inhibits flow:

– The nature of the flow state experience– Speed of feedback– Navigation errors, complications and failures– Advertising mechanisms– Self-consciousness– Fun and enjoyment– Boredom

Flow state• Designing the Web for flow:

Flow state (contd)

Source: Rettie, R. 200, ‘An exploration of flow state during Internet use’, Internet Research: Electronic Networking Applications and Policy, vol. 11, no. 2, pp. 103–13.

Factors preventing full use of the Internet

• Cost: time and money• Internet literacy• Fear• Lack of desire: no benefit, no

consequence and no value• Expectation gap: promised the earth,

delivered a bucket of soil

What can marketers do?• Lower the barriers• Lower the expectations: deliver more

than promised• Secure the Internet• Accept rejection as a legitimate

choice

Discussion Questions for the Board

• Which one of Rogers’ (1985) factors do you believe was the most important for your adoption of the Internet and why?