Principles of Marketing Lecture-42 Summary of Lecture-41

Principles of Marketing Lecture-42

Summary of Lecture-41

Global Marketing

Global Marketplace

Looking at the global marketing environment Deciding whether to go international Deciding which markets to enter Deciding how to enter the market Deciding on the global marketing program Deciding on the global marketing organization

Think Globally Act Locally

Today’s Topics

e-Marketing

Internet Marketing 9

The Birth of the Internet

• Internet was used for the first time in 1982. • It began to expand in 1991 with the World Wide Web. • Internet technologies pose managerial implications to business. • Students must learn how technology affects business operations.

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”

• 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

The Role of the Internet in Marketing

• The fastest growing communications technology. • Within the first five years, 50 million people were connected. • Capable of interactively sharing information in real time.

New Tool to Reach Consumer

Internet Telephone Radio Postal Service Television

The Internet Presence Engage in interactive, personalized communications E-mail Web Sites On-line Banner Ads Virtual storefronts and inventory systems Reduces Inventory Lower storage costs Easy access to delivery info

Internet Demographics and Trends Attitude toward technology Factors Influencing On-Line Buying Behaviour Income Motivation to use Technology

Electronic Commerce

retailer / manufacturer Financial Institution internet consumer

Definitions • E- Commerce • E-Marketing • E-Business

E-Commerce The process of conducting business transactions over electronic networks, mostly the Internet

E-Marketing The process of utilizing Information Technology in the conception, distribution, promotion, and pricing of goods, services, and ideas to create exchanges that satisfy individual and organizational objectives

E-Business The use of Information Technology in all business tasks including production, marketing, accounting, finance, and human resources management

• Marketing: – Use of 4 “P’s” to meet customer’s needs • E-Marketing: – Supply Chain Management – Use of technology to increase efficiency of marketing – Increases company profitability and adds customer value

Rules of E -Marketing

1. Power Shift from sellers to buyers 2. Increasing Velocity 3. Death of Distance 4. Global reach 5. Time compression

6. Knowledge management is key 7. Market deconstruction 8. Intellectual capital rules

Buyer Benefits of E-Commerce • Convenience • Easy and private • Greater product access/selection • Access to comparative information • Interactive and immediate

Seller Benefits of E-Commerce: • Relationship building • Reduced costs • Increased speed and efficiency • Flexibility • Global access, global reach

E-mail marketing • Key tool for B 2 B and B 2 C marketing • Clutter is a problem • Enriched forms of e-mail attempt to break through clutter

Basic Forms of Virtual Business

Business-to-Consumer (B 2 C) Basic Forms of Electronic Commerce Business-to-Business (B 2 B)

The Virtual Community Bulletin Boards Types of Virtual Communities Chat Rooms Newsletters Discussion Lists

Internet’s Influence on The Global Village Broadens and enhances access in developing nations Allows businesses to “leapfrog” into development Levels playing field for disadvantaged countries

Key Success Factor for Internet Businesses

Strategies for Web Success 4. Distribute the goods 3. Set the Price 2. Define the Product 1. Offer Customer Driven Products

Decision Variables of the Marketing Mix

Organizations moving away from standardized, mass distributed products Customer Service and Relationship building Decision Variables Using technology to provide consumers with “virtual” trial products Pricing Strategies

Internet Marketing Objectives

On-Line Market Share Sales Level Internet Marketing Objectives Repeat Purchase Market Positioning Image Brand Awareness

On-Line Promotion Banner Advertisements Button Advertisements Interstitial Advertisements Untargeted E-Mail Marketing Targeted E-Mail Marketing

The Digital World

Speed Global Marketing Implications Value

Catch for Pakistani Business

• Use it as a Tool to do Business • Increase your Customers Base • Increase your Efficiency and Effectiveness • Cost Effective • Time Saving • Open New Venue • Be the Part of Global Economy

Enough for today. . .

Summary

e-Marketing

The Birth of the Internet

The Role of the Internet in Marketing

Definitions • E- Commerce • E-Marketing • E-Business

Rules of E -Marketing

Basic Forms of Virtual Business

Business-to-Consumer (B 2 C) Basic Forms of Electronic Commerce Business-to-Business (B 2 B)

Decision Variables of the Marketing Mix

Catch for Pakistani Business

Next….

Marketing and Society

Principles of Marketing Lecture-42