What is E-Marketing?

E-Marketing is the application of a broad range of information technologies for:

Transforming marketing strategies to create more customer value (more effective segmentation, targeting, differentiation, and positioning strategies), More efficiently planning and executing the conception, distribution, promotion and pricing of goods, services, and ideas, Creating exchanges that satisfy individual consumer and organizational customers objectives.

What is E-Marketing?

Alternative definition: E-marketing is the result of information technology applied to traditional marketing. E-marketing affects traditional marketing in two ways:

Increases efficiency in traditional marketing functions, The technology of e-marketing transforms many marketing strategies.

Results: new business models that add customer value and/or increase company profitability.

What Is E-Business?

E-business is the continuous optimization of a firms business activities through digital technology Digital technologies = information technology are things like computers and the Internet, that allow the storage and transmission of data in digital formats (1s and 0s)

The Big Picture

Easy, inexpensive, and quick access to digital information transforms: economies, - societies, governments, - businesses.
Digital information enhances economies through:

more efficient markets, more jobs, information access, communication globalization, lower barriers to foreign trade and investment, and more.

Uneven impact of the Internet across the globe:

530 million users connected to the Internet worldwide = 8.5% of the global population, Developed nations = 15% of the worlds population = 88% of all Internet users, U.S. Internet users = 182 million = 64% of the population, Indigenous peoples in remote locations gaining health, legal, and other advice, or selling native products using the Internet.

Undesirable changes created by a networked world

Societies change as global communities based on interests form,

Worldwide information access slowly decreases cultural and language differences,

Easy computer networking = work and home boundaries are blurring = more convenient work = encourage more workaholism and less time with family.

Undesirable changes created by a networked world

Class divisions will grow, preventing the upward mobility of people on lower socioeconomic levels and even entire developing countries, Digital divide: Internet adoption occurs when folks have:

Enough money to buy a computer, The literacy to read what is on Web pages, The education to be motivated to do it.

What will the future be?

Gartner Group predicts that a true e-business model will emerge, and by 2008 the e will be dropped, making electronic business just part of the way things are done. Some say that E-business has become just business. E-commerce has become just commerce. The new economy has become just the economy (Aronica and Fingar 2001). Others say that this is far from the truthfor them, e-business will always have its own models, concepts, and practices. Charles Schwab has already gone through the entire cycle allowing e.Schwab.com to cannibalize the larger brick-and-mortar securities firm in 1998.

E-Marketing in Context: Where does e-marketing fit into this picture?

Visibility

Dot-com peak

U.S. Recesssion

E-Business becomes just business

Technology Peak of Trigger Inflated Expectation 1990-1996 1999 Equity times 2000

Trough of Disillusion

Slope of Enlightnment

Plateau of Profitability

2001 2002 Debt Times

2003

2004 2005 2006 Positive Cash Flow

There is Hope After the Trough of Disillusion Source: Adapted from Raskino and Andren of Gartner Research (2001)

Overview
The Emergence of E-Marketing What is E-Marketing? What Is E-Business? The Big Picture Tough Times E-Marketing in Context Environment, Strategy, and Performance (ESP) E-Marketing Environment Legal Factors Technology E-Business Markets Whats Next?

Key environmental factors affecting e-marketing

1. Legal,

2. Technological
3. Market-related factors

Overview
The Emergence of E-Marketing What is E-Marketing? What Is E-Business? The Big Picture Tough Times E-Marketing in Context Environment, Strategy, and Performance (ESP) E-Marketing Environment Legal Factors Technology E-Business Markets Whats Next?

Legal Factors
Current and pending legislation can greatly influence emarketing strategies:

Privacy: Difficult to legislate + Critical because consumers yield personal information over the Internet Opt-out e-mail: when users must uncheck a Web page box to avoid being put on a companys e-mail list, Difficult for governments to balance freedom of expression against consumer needs, New technology brings new opportunities for fraud: enforcement is difficult in a networked world.

Overview
The Emergence of E-Marketing What is E-Marketing? What Is E-Business? The Big Picture Tough Times E-Marketing in Context Environment, Strategy, and Performance (ESP) E-Marketing Environment Legal Factors Technology E-Business Markets Whats Next?

Technology

Technological developments influence: The composition of Internet audiences, The quality of material that can be delivered to them.
E-marketing is evolving through software advances: Technologies can target consumers according to their online behavior to give a firm a distinct competitive advantage.

Technology

Technology lowers costs: Many firms have saved money on staff and paperwork via electronic order processing, billing, and e-mail. Technology requires costly investments: Web page development costs millions of dollars, E-commerce operations require expensive hardware and software, New technologies continue to emerge, which make current investments obsolete,
Putting technology to use entails a steep learning curve.

What is the Internet?

The Internet is a global network of interconnected networks:
-

Millions of corporate, government, organizational, and private networks, The Internet consists of computers with data, users who send and receive the data files, and a technology infrastructure to move, create, and view or listen to the content.

What is the Internet?

Three important types of networks form part of the Internet:

Intranet = A network running internally in a corporation + using Internet standards (HTML and browsers) = a mini-Internet but only for internal corporate consumption, Extranet = An intranet with value chain partners + the access is normally only partial, Web = The portion of the Internet that supports a graphical user interface for hypertext navigation with a browser (Netscape / Internet Explorer). The Web is what most people think about when they think of the Internet.