ELC 310

Day 21

Agenda

Two major assignments Left– Case study analysis of an existing case

Week after break 10% (Nov 28 & Dec 1 )– Creation of a case study

16% on Finals Day Case Study Proposals Due Nov 21

– Less than one page on the company you will be writing a case study on and where you will be getting the research.

– Brick and mortar company that used a eMarketing strategy Starting today we will be in the text ebusiness.marketing

– Today Nov 14 Chap 2& 3 – Friday Nov 17 Chap 4

Case Study Analysis

Deliverables– 15 min oral presentation in front of class

Overview of Company Discussion of e-marketing goal or strategy Identification of primary Stakeholders Value Bubble analysis Discussion of perceived success or failure of e-Marketing goal or strategy

– 5 min question and answer period with classmates and Instructor As a minima the student should be able to define the Key Terms and answer the Questions to Ask at the end of

each case study – A PowerPoint presentation corresponding to the Oral Presentation

Expectations– Student should be able to demonstrate a mastery of the material covered in first four chapters of the

Albert Text and understand how the Case Study under analysis fits into the framework established in previous chapters.

– Students should have read the case studies being presented by the other students and be able to ask intelligent questions of the presenter of the case study.

– Every case study should prompt a class discussion of the issues raised in the Case Study

Grade Generation for analysis

Four Components– Class Grade for Presenter

25% of Total Grade Average of the grades submitted by students

– Presenter Grade for Class participation 25% of Total Grade Average of the grades submitted by presenter

– Instructor Grade for Presenter 25% of Total grade

– Instructor Grade for Class Participation 25% of Total Grade

Grading Rubric for Presenter– Demonstrated Mastery of Case Study 30%– Understanding of How Case Study Fits 30%– Presentation effectiveness 20%– Quality of PowerPoint 20%

Grading Rubric for Class Participation

– Subjective interpretation 100%

Schedule for last days of class

Today 14– Albert Chap 2 & 3

November 17– Albert chap 4

November 21– Instructor presentation of

case study analysis (2) November 28

– Student Case study analysis presentations (3)

December 1– Student Case study

analysis presentations (3) December 5

– Albert Chap 13 & 14 December 8

– Quiz 4 December 14, 1 – 3 PM

– Written Case study & presentations Due

Case studies (must pick one)

Chap 5– Specialty manufacturer– CRM

Chap 6– Steel Industry– ERP

Chap 7– Hardware distributor– SCM

Chap 8– Utilities– BI

Chap 9– Not-for-Profit– CRM

Chap 10– Consumer Packed Goods – CRM

Chap 11– Insurance– SCM

Chap 12– Financial Services– E-commerce and BI

Chapter Two

The Marketing Mix Transformation

Overview

The Transformation of the Marketing Mix The Internet's Impact on the Marketing Mix Business-to-Consumer Marketplace B2C and Traditional Distribution Business-to-Business Marketplace Ranged Marketing Complexity Theory Fuzzy Logic Elements of Ranged Marketing The Key Role of Change The Role of Ranged Marketing

“Traditional” Marketing Mix

Four Ps (McCarthy, 1960s) Four Cs (Schultz, 1990s)

– main causes of transformation Database Outside looking in versus in side looking out

Internet impact on the 4Ps/4Cs– Product >> customer solution– Price >> customer price– Promotion >> communication– Place >> convenience

Marketing Mix

E-Business enables transformation 4 Ps to the 4Cs

– Product Customer Solution– Price Customer Cost– Promotion Communication– Place Convenience

Caveat emptor Cave emptorum

Internet enabled outcomes

Leverage database marketing technology– Quantitative information

Purchase patterns Demographics Psychographics Attitudes, Interest and opinions

Targeted promotion Personalization on a Massive scale Distribution

Impact on Services Marketing

What is Services Marketing?

Four factors impacted– Intangibility (can’t touch)– Simultaneity (produced/consumed at the same time)– Heterogeneity (different each time)– Perishability (can’t be stored, use or lose it)

4 extra P’s – People– Processes– Physical image– Productivity

Internet Business Environments

B2B– definition– size/opportunity

B2C– definition– size/opportunity

C2C– definition– how did the Internet enable this?

Background for Ranged Marketing

Complexity Theory (chaos)– Small permutations create massive change– Fractals– Fuzzy Logic– Nothing is perfectly predictable– Lorenz’s Butterfly effect

http://www.cmp.caltech.edu/~mcc/chaos_new/Lorenz.html Results

– The unexpected occurs– Change is certain– The market is heterogeneous

http://en.wikipedia.org/wiki/Mandelbrot_set

Ranged Marketing

Marketing is a combination of many disciplines Ranged marketing incorporates sociological

theory– Increased communication accelerates change

Other research– Hoffman and Novak– Organic solidarity

E. Durkheim

Elements of Ranged Marketing

Range of……... Use Expertise Target Markets Development Life Adaptation Change

Change/Transformation

Successful company example– Volvo– UPS

UPS as traditional company– transformation into e-business – www.ec.ups.com– successful?– What was their “formula”?

Words to think about

“The future ain’t what it used to be.”– Yogi Berra

“It’s not the strongest or most intelligent that survive, but the ones most responsive to change.”– Charles Darwin

Chapter Three

The Value Bubble

Overview

Five Elements of the Value Bubble Applying the Value Bubble Attracting (Building Traffic) Engaging (Building Loyalty) Retaining (Strengthening the Relationship) Learning (Building the Database) Relating (Data-Driven Interactions) Business-to-Business Value Bubble Adaptations

McKinsey Model

A model for Marketing On-line Originated in mid-1990s Updated through ongoing research Three opportunities in original model

– lower cost of providing services– relationship building– redefine channel intermediation

Five Steps

Attract Engage Retain Learn Relate Extension from Learn: GIST (chapter 14)

– Gather->Infer->Segment->Track Most companies falter in last 2 steps

Figure OneAttract (Building Traffic)

piggyback marketing(all points of contact)

build it they will come misconception consistent branding(online and offline)

Attract Stakeholder to Site or Storefront

“Formula to Attract”

Offline Online PR Buzz Traditional Stores Links Microsegmentation Involvement

Technology Attraction

Flash Graphics

– dancing baloney

Jakob Nielsen’s work– Useability– http://www.useit.com/

BI component

Figure TwoEngage--Building Loyalty

m os t s ites lose h ere con ten t & visu a l c rite ria u n iq u e in te rac tion(va lu e-ad d ed )

E n g ag e S takeh o ld ers

Engage Strategies

Form and Substance BI “One voice” EC--the sale Client side/server side Beginnings of CRM

Engage Technologies

Client Side– JavaScript– Java– Flash

Server Side– CGI– ASP– PHP

XML

Figure ThreeRetain--Strengthening the Relationship

databaseintegration

hidden expense re-fresh, re-fresh

online servicequality

switching costs

Retain Stakeholders(Repeat Visits andBuilding Loyalty)

Retaining Strategies

Repeat Visits--site is the firm E-Service Quality Model

– Purchase– Loyalty– WoM

Web features and attributes– e-service quality dimension

Core Service Recovery

CLV precision Cookies

Retain technologies

Mostly design & apllication– Bookmarks– Navigation– Clear exit– Customizable

Figure FourLearn--Building the Database

u n p reced en ted

seg m en ta tion

in te llig en t m arke tin gfo r p e rson a liza tionor cu s tom iza tion

sou rces(on lin e " foo tp rin t")

L earn ab ou t S takeh o ld e rs

Learning Strategies

Integrated databases– offline and online

Log files Clickstreams GIST model

– Gather– Infer– Segment– Track

Learning technologies

Click stream analysis Log files Database

Figure FiveRelate--Data-driven Interactions

greatest contribution

segmentation

customize theinteraction

interactiv ity(attribute of communication)

Relate to Stakeholders

Relating Strategies

Segments of one Privacy (the paradox) Targeted communication

– emails

Competitive edge

Business-to-Business

Financial advisors’ study Adoption rate by web site features Different motivation (“buying criteria”)

– extrinsic– SCM, ERP leading to CRM– more obvious than B2C

Organic solidarity– "...Even where society relies most completely upon the division of labor, it

does not become a jumble of juxtaposed atoms, between which it can establish only external, transient contacts. Rather the members are united by ties which extend deeper and far beyond the short moments during which the exchange is made. Each of the functions that they exercise is, in a fixed way, dependent upon others, and with them forms a solidary system."

>> Durkheim, Emile. 1933. The Division of Labor in Society Translated by George Simpson. New York: The Free Press.