Marketing in the

Digital Age: Making

New Customer
Connections
Chapter 3
 Major Forces Shaping
the Digital Age
• Digitalization and Connectivity
▪ The flow of digital information
requires connectivity
❖ Intranets, Extranets, and the Internet
• The Internet Explosion
▪ Key driver of the “new economy”
3-1
 Major Forces Shaping
the Digital Age
• New Types of Intermediaries
▪ Brick-and-mortar firms often face
disintermediation from click-only
competitors
▪ The click-and-mortar business model
has been highly successful
• Customization and Customerization
3-2
 Marketing Strategy in
the Digital Age
• E-business:
▪ uses electronic means and platforms
to conduct business.
• E-commerce:
▪ facilitates the sale of products and
services by electronic means.
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 Marketing Strategy in
the Digital Age
• E-marketing:
▪ Includes efforts that inform,
communicate, promote, and sell
products and services over the
Internet.
• E-commerce benefits both buyers
and sellers
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 Marketing Strategy in
the Digital Age
• Buyer Benefits of E-Commerce:
▪ Convenience
▪ Easy and private
▪ Greater product access/selection
▪ Access to comparative information
▪ Interactive and immediate
3-5
 Marketing Strategy in
the Digital Age
• Seller Benefits of E-Commerce:
▪ Relationship building
▪ Reduced costs
▪ Increased speed and efficiency
▪ Flexibility
▪ Global access, global reach
3-6
 E-Commerce Domains
E-Marketing Domains
Targeted to Targeted to
consumers businesses

Initiated by
businesses
B2C B2B

Initiated by
consumers
C2C C2B

3-7
 E-Commerce Domains
• Online consumers
Major Domains ▪ Now more mainstream
and diverse
❖ Has created new targeting
• B2C opportunities
❖ Online behavior differs by
age
• B2B ▪ Online consumers differ
from traditional off-line
• C2C consumers
❖ They initiate and control
the exchange process
• C2B ❖ Value information highly

3-8
 E-Commerce Domains
• B2B sales far exceed B2C
Major Domains sales
▪ B2B sales are estimated
to reach $4.3 trillion in
• B2C 2005
• Open trading networks
• B2B ▪ E-marketspace bringing
sellers and buyers
together
• C2C
• Private trading networks
• C2B ▪ Links sellers with their
own trading partners

3-9
 E-Commerce Domains
• C2C web sites help
Major Domains consumers exchange
goods or information
▪ eBay is one example
• B2C • Auction sites facilitate
the exchange process
• B2B ▪ Allow access to a
much larger audience
• C2C
• Newsgroups / forums
• C2B ▪ Help consumers to find
and share information

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 E-Commerce Domains
• Allow consumers to
Major Domains search out sellers, learn
about offers, initiate
purchase, or dictate
• B2C purchase terms
▪ Ex: Priceline.com
• B2B • Some sites facilitate the
feedback process
• C2C between customers and
companies
• C2B ▪ Ex: Planetfeed.com

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