ch04 e environment
DESCRIPTION
E EnvironmentTRANSCRIPT
Slide 4.1
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
CHAPTER 4E-ENVIRONMENT
Slide 4.2
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Learning outcomes Identify the different elements of an
organization macro-environment that impact on an organization e-business and e-marketing strategy
Assess the impact of legal, privacy and ethical constraints or opportunities on a company
Assess the role of macro-economic factors such as governmental e-business policies, economics, taxation and legal constraints.
Slide 4.3
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Management issues What are the constraints placed on
developing and implementing an e-business strategy by thee-environment?
What factors influence the adoption of new digital media and how can we estimate future demand for online services?
How trust and privacy can be assured for the customer while seeking to achieve marketing objectives of customer acquisition and retention?
Slide 4.4
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Macro-environment (SLEPT factors)
Micro-environment (e-marketplace)
Social The organization
Legal, ethical It’s customer
Economic Its suppliers
Political Its competitors
Technological Intermediaries
Factors in the macro- and micro- environment
Figure 4.1 ‘Waves of change’ – different timescales for change in the environment
Slide 4.6
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
SLEPT Factors/PEST Factors Macro-environment
Social:Include the influence of consumer
perceptions in determining usage of the Internet for different activities
Legal: Determine the method by which products can be
promoted and sold online Governments, on behalf of society, seek to
safeguard individuals right to privacy
Slide 4.7
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
SLEPT:
Economic:Variations in the economic performance
in different countries and region affects spending patterns and international trade
Political:National governments and transnational
organizations have an important role in determining the future adoption and control of the Internet and the rules by which it is governed
Slide 4.8
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
SLEPT
Technological:
Changes in technology offer new opportunities to the ways products can be marketed
Slide 4.9
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Factors governing Internet adoption Cost of access Value proposition Ease of use Security Fear of the unknown
Slide 4.10
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Internet Access
Consumers and businesses who uses Internet vary according to countries
Within each country, adoption of the Internet vary significantly according to individual demographic characteristics
Broadband adoption
Figure 4.2 Global variation in number of PCs per hundred population and percentage Internet access in 2004Source: ITU (www.itu.int/ITU-D/ict/statistics/)
Figure 4.3 Variation in demographic characteristics of UK Internet users: (a) gender, (b) age, (c) social gradeSource: eMori Technology Tracker – www.mori.com/technology/trackerdata.shtml
Slide 4.13
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Consumers influenced by using the online channel Psychographic segmentation
Realistic enthusiasts Confident brand shoppers Carefree spenders Cautious shoppers Bargain hunters Unfulfilled
Figure 4.4 Percentage by category who bought offline after researching onlineSource: BrandNewWorld: AOL UK / Anne Molen (Cranfield School of Management) / Henley Centre, 2004
Figure 4.5 Development of experience in Internet usage
Slide 4.16
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
B2B Profiles
The percentage of companies with access
Influenced online Purchase online
Figure 4.6 Percentage of businesses that order onlineSource: DTI (2004), Fig 7.3a
Slide 4.18
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Why personal data are valuable?1. Contact information2. Profile information3. Behavioral information (on a single
site)4. Behavioral information (on multiple
site)
Slide 4.19
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Ethical issues and data protection
Ethical issues concerned with personal information ownership have been usefully summarized by Mason (1986) into four areas:
1. Privacy – what information is held about the individual?
2. Accuracy – is it correct?3. Property – who owns it and how can ownership be
transferred?4. Accessibility – who is allowed to access this
information, and under which conditions?
Slide 4.20
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Ethics – Fletcher’s view Fletcher (2001) provides an alternative
perspective, raising these issues of concern for both the individual and the marketer:
1. Transparency – who is collecting what information?
2. Security – how is information protected once collected by a company?
3. Liability – who is responsible if data is abused?
Slide 4.21
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
The eight principles for data protection
Fairly and lawfully processed; Processed for limited purposes; Adequate, relevant and not excessive; Accurate; Not kept longer than necessary; Processed in accordance with the data subject's
rights; Secure; Not transferred to countries without adequate
protection.
www.dataprotection.gov.uk
Figure 4.7 Information flows that need to be understood for compliance with data protection legislation
Slide 4.23
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Anti-spam legislation
To protect individual privacy and with intention of reducing spam or unsolicited commercial e-mail (UCE)
‘Sending Persistent Annoying e-Mail’ Anti-spam legislation can be viewed at
http://www.spamlaws.com
Slide 4.24
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Avoiding SPAM
Slide 4.25
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Regulations on privacy and electronic communications Privacy and Electronic Communications
Regulations (PECR) Act1. Applies to consumer marketing using
email or SMS text messages2. Is an ‘opt-in’ regime3. Requires an opt-out option4. Does not apply to existing customers
when marketing similar products5. Contact details must be provided
Slide 4.26
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Regulations on privacy and electronic communications
6. The ‘From’ identification of the sender must be clear
7. Applies to direct marketing communications
8. Restricts the use of cookies
Slide 4.27
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Understanding cookies
A data file placed on your computer that identifies an individual computer Persistent Temporary or session First-party Third-party
Cookies are stored as individual text files dave_chaffey@british_airways.txt FLT_VIS\K:bapzRnGdxBYUU\D:Jul-25-1999\
british-airways.com\0 425259904 293574 26 1170747936 *
Slide 4.28
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Using Cookies
Slide 4.29
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
What are cookies used for?
Personalizing a site for individual Online ordering systems Tracking within a site Tracking across sites
Slide 4.30
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Viral e-mail marketing
To reassure web users about threats to their personal information
TRUSTe ISIS – a UK accreditation initiative getsafeonline
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Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
TRUSTe and ISIS
Slide 4.32
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Checklist of compliance
Follow privacy and consumer protection Inform the user Ask for consent for collecting sensitive personal
data Reassure customers by providing clear privacy
statements Let individual know when cookies are used Never collect or retain personal data Amend incorrect data Only use data for marketing Provide the option to stop receive information Use appropriate security technology
Slide 4.33
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Legal – Sparrows eight areas1. Marketing your e-commerce business 2. Forming an electronic contract 3. Making and accepting payment 4. Authenticating contracts concluded over
the Internet5. E-mail risks 6. Protecting Intellectual Property 7. Advertising on the Internet 8. Data protection.
Slide 4.34
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
1.Marketing your e-commerce business Domain name registration Using competitor names and trademarks
in meta tags Using competitor names and trademarks
in pay-per-click advertising Accessibility law
Slide 4.35
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
2.Forming an electronic contract E-commerce sites must contain easily
accessible content that clearly states The company’s identity including address The main features of the goods or services Prices information The period for which the offer or price is
valid Payment, delivery and fulfillment Substitution
Slide 4.36
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Economic/Political Ensuring companies competitive
Funding for education and technology Promoting new technology e.g. broadband 12% in UK, 70%
Taiwan, South Korea Achieving government efficiencies
E-government – all UK services online by 2005 Singapore ‘Intelligent Island’
Taxation regimes Legislation for offshore trading.
Figure 4.8 A framework describing the e-economySource: Booz Allen Hamilton (2002). International E-Economy: Benchmarking The World’s Most Effective Policy for the E-Economy . Report published 19 November, London.www.e-envoy.gov.uk/oee/oee/nsf/sections/summit_benchmarking/$file/indexpage.htm © Crown copyright 2002
Figure 4.9 Leaders and laggards in e-commerceSource: © 2005 Adapted from Economist Intelligence Unit data © 2005, Economist Intelligence Unit
Slide 4.39
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
E-commerce and globalization The increase of international trading and
shared social and cultural values Language and cultural understanding English becoming the lingua franca of
commerce Tailoring e-commerce services for
individual countries or regions
Slide 4.40
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Localization
Slide 4.41
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Political factors
Promoting the benefits of adopting the Internet
Enacting legislation to protect privacy or control taxation
Providing guidelines and assistance for compliance with legislation
Setting up international bodies to coordinate the Internet
Slide 4.42
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
E-government
The application of e-commerce technologies to government and public services
Slide 4.43
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Technological issues Need to be able to assess new innovation Rate of change
Which new technologies should we adopt? Monitoring for new techniques Evaluation – are we early adopter Re-skilling and training
Are our systems secure?
Figure 4.10 Diffusion–adoption curve
Figure 4.11 Example of a Gartner hype cycleSource: Gartner (2005) Gartner’s Hype Cycle Special Report for 2005
Figure 4.12 Alternative responses to changes in technology
Slide 4.47
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Activity 4.1 List all the social, legal and ethical issues
that the manager of a sell-side e-commerce web site needs to consider to avoid damaging relationships with users of his or her site or which may leave the company facing prosecution.
You can base your answer on issues which may concern you, your friends or your family when accessing a web site.
Slide 4.48
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Activity answer – this lecture Cookies – laws and consumer perception on
placing these Are we limiting access to information from certain
sections of society (social exclusion)? Privacy of personal information entered on a web
site Sending unsolicited e-mail Replying promptly to e-mail Copyright Site content and promotional offers/adverts are in
keeping with the different laws in different countries
Providing text, graphics and personality in keeping with social mores of different countries