1. ©2006 Prentice Hall 1-1
MRKG 2312 E-Commerce

2. ©2006 Prentice Hall 1-1
Agenda
• Roll Call
• Introduction
• Syllabus Review
• Introduction to eMarketing

3. ©2006 Prentice Hall 1-1
Instructional Philosophy
• Out-Come based education
• Would rather discuss than lecture
• Requires student preparation
• Hate grading assignments
• Especially LATE assignments
• Use class interaction, assignments,
quizzes and projects to determine if
outcomes are met.

4. ©2006 Prentice Hall 1-1
MRKG 2312 Outcomes
• Learn about the transformation of the traditional or physical
marketplace into the virtual marketplace through theoretical
frameworks and applied practices and examples.
• Understand the Internet environment and the opportunities and
challenges organizations ( profit and nonprofit) face while entering
into the electronic age.
• Understand the following e-commerce components and be able
understand the contribution of each component to electronic
marketing
• Business intelligence
• Customer Relationship Management in electronic marketing
• Supply Chain Management
• Value Chains
• Enterprise Resource Planning

5. ©2006 Prentice Hall 1-1
MRKG 2312 Outcomes (con’t)
• Understand how consumers use the Internet to research
and purchase goods and services
• Plan an electronic marketing strategy for a small business
or for an e-commerce initiative within a larger firm
• Be able to analyze and present an existing Case Study on
electronic marketing
• Be able to conduct research for, create and present a
Case Study on electronic marketing

6. ©2006 Prentice Hall 1-1
If you want to survive...
• Read Material BEFORE the class discussion
• Use the additional resources
• ASK questions about what you didn’t understand in readings
• DON’T do assignments and projects at last minute.
• REVEIW lectures and notes
• Seek HELP if you are having difficulties
• OFFER feedback and suggestions to the instructor in a
constructive manner

7. ©2006 Prentice Hall 1-1
Syllabus Overview
• Course grading
• Course calendar
• Assignment, midterm, and final overview

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E-Marketing 4/E
Judy Strauss, Adel I. El-Ansary, and Raymond Frost
Chapter 1: Convergence

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Chapter 1 Objectives
• After reading Chapter 1 you will be able to:
• Explain how the Internet and information technology
offers benefits and challenges to consumers,
businesses, marketers, and society.
• Distinguish between e-business and e-marketing.
• Describe the Internet and the use of intranets,
extranets and the Web.
• Explain how increasing buyer control is changing
the marketing landscape.
• Understand the distinction between information or
entertainment as data, and the information receiving
appliance used to view or hear it.

10. ©2006 Prentice Hall 1-4
The Music Industry
• File sharing programs, such as KaZaA, enable
consumers to illegally download music.
• The Recording Industry Association of America
has sued over 400 consumers for piracy.
• 14% U.S. consumers still download illegal files
• CD sales plunged to $13 million in 1999; $10.6
billion in 2003
• Apple Computer introduced iTunes at .99 each.
• http://www.usatoday.com/life/music/news/2006-01-04

11. ©2006 Prentice Hall 1-5
What will happen to the music industry?
• The actual cost of producing a CD is $10.17.
• Value = benefits – costs
• Value of CD vs MP3 to consumer?
• Only $1.29 goes to the artist.
• Value of CD vs MP3 to artist?
• Online distribution makes sense.
• What do you think will happen to the music
industry?
• What do you think will happen to the movie
industry?

12. ©2006 Prentice Hall 1-6
E-marketing Defined
• The use of information technology
• to create, communicate, and deliver value to
customers.
• for managing customer relationships to benefit the
organization & stakeholders.
• The result of information technology applied to
traditional marketing.

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E-Business, E-Commerce, and
E-Marketing
• E-business is the continuous optimization of a
firm’s business activities through digital
technology.
• E-commerce is the subset of e-business
focused on transactions.
• E-marketing is one part of an organization’s e-
business activities.

14. ©2006 Prentice Hall 1-8
The Internet
• A global network of interconnected networks.
• E-mail and data files move over phone lines,
cables and satellites.
• Three types of networks form part of the
Internet:
• Intranet: network that runs internally in an
organization.
• Extranet: two joined networks that share
information.
• Web: how most people refer to the Internet.

15. ©2006 Prentice Hall 1-9
The Web Is One Aspect
of E-Marketing
E-mail
Internet
UPC Scanner
PDA
Cell Phone
Web
PC
Television
Refrigerator
Database
Automobile

16. ©2006 Prentice Hall 1-10
Past, Present, and Future
• The first generation of e-business was like a
gold rush.
• From 2000-2002, over 500 Internet firms shut
down in the U.S.
• Almost 60% of dot-coms were profitable in the
fourth quarter of 2003.
• Today, the Internet is mainstream in
industrialized nations.
• 20 nations comprise 90% of all Internet users.

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Technology Peak of Trough of Slope of Plateau of
Trigger Inflated Disillusionment Enlightenment Profitability
Expectation
1990-1996 1999 2000 2001 2002 2003 2004 2005 2006
Equity Times Debt Times Positive Cash Flow
Visibility
Dot-Com
Peak
U.S.
Recession
E-Business
Becomes “Just
Business”
E-Business Recovery Is Sweet

18. ©2006 Prentice Hall 1-12
E-Marketing Today
• Power shift from sellers to buyers
• Marketing fragmentation: mass market to one
customer
• Death of distance
• Time compression
• Knowledge/database management is key
• Marketing and technology: an interdisciplinary
focus
• Intellectual capital is important resource

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Consumer Control
• New technologies such as personal video
recorders (PVRs) and TiVo will increase
consumer control.
• Convergence of television, radio, print, etc.
• Customer-controlled entertainment, and shopping
on demand.

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Improved Internet Strategy Integration
• Organizations will integrate information
technology seamlessly into marketing strategy.
• Multichannel marketing: Web site, retail store, and
catalog
• Integration of inventory databases
• Integration of customer service across channels

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Refined Metrics
• Internet provides great deal of data, not all of
which is very useful.
• Tracking customer acquisition cost (CAC) and
other key metrics is a critical marketing function
still in its infancy.
• Future metrics will provide better measures of
performance, return on investment, etc.
• Customer lifetime value
• Profit derived from customer - CAC

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Wireless Networking Increases
• Cell phones, PDAs and laptops connect to the
Internet via wireless modem worldwide.
• Cafe'
• Hotels and airports
• Luxury liner (Airbus 380)
• Airport, train stations
• Customers will have information, entertainment
and communication when, where and how they
want it.

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WiFi at Train Station in France

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Appliance Convergence
• The receiving appliance is separate from the
media type.
• Computers can receive digital radio and TV.
• TV sets can receive the Web.
• New types of “smart” receiving appliances will
emerge.
• Internet refrigerator is many digital appliances in
one.
• Global position systems (GPS) allow in-car
communication and entertainment.

25. ©2006 Prentice Hall 1-19
Semantic Web
The Semantic Web will utilize a standard
definition protocol that will allow users to find
information based on its type, such as:
• The next available appointment for a doctor
• Details about an upcoming concert
• Menu at the local restaurant
• Represents the next huge advance: providing
worldwide access to data on demand without
effort.
• http://www.w3.org/2001/sw/

26. ©2006 Prentice Hall 1-20
Internet-Time Analogy
1949 Atomic1929 Quartz Crystal1600’s Mechanical1583 AD Pendulum3500 BC Sundial
Web is here in 2007