strategic electronic marketing: managing e-business, 2e ch03

7/28/2019 Strategic Electronic Marketing: Managing E-Business, 2e ch03

1/45

For use with Strategic Electronic Marketing:Managing E-Business, 2e

Copyright 2003 South-Western College Publishing

Chapter 3 Slide: 1

Chapter 3:

E-Business Communication


2/45



Chapter 3 Slide: 2

LEARNING OBJECTIVES (1)

List the audiences with whom an e-business

would need to communicate.

Compare and contrast a one-to-many and

many-to-many communication model.

Explain how the communication process

works.

Describe the role involvement plays in Web

site design.


3/45



Chapter 3 Slide: 3

LEARNING OBJECTIVES (2)

List the various types of e-businesscommunication platforms.

Recommend a strategy for developing an

email marketing campaign. Conceive an integrated internal

communication system for a business.

Specify the overall economic welfareconsiderations related to the use of e-

business communication platforms


4/45



Chapter 3 Slide: 4

Case 3.1: In The Web Driving Seat

Thinking Strategically

Visit the BMW Web site (www.bmwusa.com).

Determine if the site is designed just for current BMW owners or ifit is targeting potential owners as well.

List the types of e-business communication platforms used by

BMW. How does BMW develop and maintain relationships using these

platforms?

Decide if this site appeals to individuals with high or low levels ofautomotive involvement.

Visit a Web site for another automobile manufacturer.

Determine if that site is designed to appeal to the same individualsas the BMW site.

Specify why a potential customer or owner would return to thissite.
http://www.bmwusa.com/http://www.bmwusa.com/


5/45



Chapter 3 Slide: 5

The Internet as a Communication

Medium

The Internet is used to communicate toconstituencies or audiences both external andinternal to the e-business.

External audiences include customers, stockholders,the general public, and other specifically targetedaudiences.

Internal audiences can include both employees andsuppliers.

Integrated marketing communication: Uses avariety of communication technologies to reachorganizational goals.


6/45



Chapter 3 Slide: 6

Hypermedia

Hypermedia allow companies to deliver

targeted messages to specific audiences.

Hypermedia environments are distributed

network that allow for hyperlinks and

nonlinear search and retrieval processes to

collect information.

Examples: World Wide Web, interactive television,interactive Web based cellular telephones, and other

portable devices.


7/45



Chapter 3 Slide: 7

Linear Communication

Traditional media often follow a one-to-

many communication model where a

single promotion, such as a print ad or

television commercial, is sent by one source

and seen by many without the opportunity

for immediate feedback.

Linear communication follows a scripted

flow.


8/45



Chapter 3 Slide: 8

Non-Linear Communication

Interactivity and hyperlinks allow for a type

of two-way communication between the e-

business and its audience.

Non-linear communication allows for a

free flow and exchange of information.

Most conversations individuals have with

others are non-linear. Good sales presentations

are free flows ofcommunication.


9/45



Chapter 3 Slide: 9

Figure 3.1: Hypermedia

Connections to Multiple Pages


10/45



Chapter 3 Slide: 10

Figure 3.2: The Communication System

COMMUNICATION SYSTEM

MESSAGEMedia

SENDER

FEEDBACK

NOISENOISE

TARGETEDSEGMENTEncode Decode


11/45



Chapter 3 Slide: 11

Many-to-Many Model (1)

The many-to-many model places the

hypermedia in the center of the

communication process.

Hypermedia become a meeting place where

anyone can communicate with anyone else.

Both firms and customers can obtain anddeliver content.


12/45



Chapter 3 Slide: 12

Typology Of Interactions

Consumer-to-consumer (C-to-C) (Internet based)

Business-to-consumer (B-to-C) (Internet based)

Consumer-to-business (C-to-B) (Internet based)

Business-to-Employee (B-to-E) (Intranet based)

Employee -to-Employee (E-to-E) (Intranet based)

Business-to-business (B-to-B) (Extranet based)


13/45


Copyright 2003 South-Western College PublishingChapter 3 Slide: 13

E-Business

Communication

Platforms

(Hypermedia)

Figure 3.3: Many-to-Many Model

Customer

Employe

e

Firm

Fir

m

Custome

r

Custome

r

Custome

r

Employe

e


14/45

For use with Strategic Electronic Marketing:

Managing E-Business, 2e


Table 3.1: E-Business

Communication PlatformsPlatform Icon Description

Web page An HTML based information document.

Text

Email

A text based computer-to-computer messaging system.

HTML

Email

A HTML based computer-to-computer messaging

system designed to look and work like a Web page.

HTML based email is allowing for the growth of rich

media email, or the inclusion of multimedia.

Chat A chat online involves a number of individuals wholeave messages for others to see. These can be placed in

a repository or chat room for viewing at later times or

could be live, with individuals writing to others in

real time.


15/45




Table 3.1: E-Business

Communication PlatformsPlatform Icon Description

Discussion

Group

(Forum)

Allows individuals to add to an initial message with

successive messages. Newsgroup users add to a thread,

or single conversation by indicating a response to the

prior message. Messages are available for others to read

and are indented under topic headings:Initial Post

First response

Second response, etc.

Instant

Message

The process of send messages instantaneously from

individual to individual through land line based or

wireless devices.

Rich

Media

Rich media refers to the use of Internet technology that

adds more than just text, graphics, or sound alone.


16/45




Hypermedia Communication Goals

A Web site can provide a little or a great

depth of information for a site visitor.

A single site can be designed for goal-directed buyers as well as for those who are

net surfing and are looking only to

experience the site.

The Web site can be designed to allow links to

other individuals who share the same interests.


17/45




High Involvement (1)

Individuals with high involvement for a

product or product category are:

likely to see a topic as interesting or important

attend to information more

are more likely to comprehend complex messages

may be willing to spend more time with a Web site.

Involvement levels of individuals can be high whenthey are goal directed, such as attempting to gather

information to make a purchase.


18/45




High Involvement (2)

Individuals can also have high enduring

involvement with products or product

categories, and engage in net surfing to

obtain high levels of interactivity with sites.

Enduring involvement exists when an

individual has a high level interest in a topic

over and extended time period.


19/45




From Public Relations to

Supporting Relationships Brochure sites are designed as an advertising orpublic relations tool.

May contain the same information as a business print

material.

These sites are designed to make visitors aware of and

informed about a business's image or products.

This can be seen as a simple extension of traditional

media campaigns.

Brochure sites should be designed to enhance the

overall promotional campaign.


20/45




The Public Face of a Business

For non-brick and mortar pure-play Internet

businesses, the Web page may be the only

chance a customer has to interact with the

business.

The Web page must project and protect the

image of the company.

Protecting a company's image is a concern

on the Internet.


21/45




Web Sites and Company Image

Some companies that have registered domain namesto prevent attack include:

Charles Schwab: !#%*schwab.com and

schwab!#%*.com.

BellAtlantic: Bigyellow!#%*.comChase Manhattan Bank: Chase!#%*.com

Cox Communications Inc.: Cox!#%*.com

Vail Resorts: vailresorts!#%*.com

Volvo Cars of North America: volvo!#%*.com

Playboy Enterprises: Playboy!#%*.com

!#%* represents a deleted offending word


22/45




Relationship Sites

Relationship sites target individuals who

may have higher levels of information

involvement.

Sites can designed for individuals with high

levels of enduring involvement.

They often contain games, chat groups, or other

interactive components to maintainrelationships with customers.


23/45




Case 3.1 Banking on a Relationship

Thinking Strategically:

Describe how Wells Fargo develops and maintains

relationships with customers.

Speculate on the future of a wireless as a banking tool. Describe the advantages that individuals could gain by

wireless banking.

Justify the use of ATMs for broadband Internet

delivery. Speculate on how this could make a transition to other

broadband devices for individuals.


24/45




Communicating Through

Extranets and Internets Extranets and Intranets use the common IPinterface and have the same communication

considerations as Internet based Web

communication. Intranets use browsers, servers, and Internet

protocols, but are not open to unauthorized users.

Bandwidth inside organizations is often higher than

home users allowing for the potential for

applications such as voice, video, and conferencing

online.


25/45




E-Mail Marketing

E-mail marketing allows an e-business to directmessages to specific market segments or to customizemessages for individuals, much the same way as directmail. E-mail is the most common e-business communication platform.

Targeted e-mail is one of the most effective hypermediacommunication platforms.

Targeted e-mail allows firms to directly contactindividuals. Targeted e-mail works best with individuals who have already

given their permission to receive messages. Permission marketing is where the customerops-in, or signs inat a Web site and agrees to receive email based direct marketing.

Virtual prospecting using bulk lists is not permission based.While this can be very cheap, the email can be seen as spamming.


26/45




Table 3.2: Types of Op-Ins

Alternative Description Example

Single

Opt-In

Customers supply email address or check on a

box to allow email to be sent. This gives

permission for the company to send email, or to

allow other third party companies to send email

to the individual. Customers are notified as to

the terms of the permission.

Do you wish to subscribe to

our weekly email newsletter?

Yes No

Double

Opt-In

As in the single opt-in, customers supply email

address or check on a box to allow email to be

sent. Customers are expected to reconfirm by

replying to a confirmation email.

This maximizes the chances ofnot being seen as

sending spam.

Thank you for registering for

our email letter. In order to

serve you better, please log in

and update your email

preferences. You can log in at

the web address below:https://account.companyX.com

/login.html

Thank you!


27/45




Table 3.2: Types of Op-Ins

Alternative Description Example

Opt-Out A subscription is assumed and the customer

must click to remove the subscription if they

wish to opt-out of receiving email for the

company or other third party companies.

Occasionally we send our

subscribers email special

offers from relevant

businesses/organizations. If

you do NOT want to receive

such offers, please check here.


28/45




Recommendations For Developing

An Email Marketing Strategy Capture email addresses at a point of customer contact.

Collect information that can be used to personalize the email.

Dont send unsolicited bulk email. This has a higher cost per saleand risks being seen as spam.

Clearly state the confidentiality policy.

Clearly indicate that email will be used in-house only. Ask permission before sending to third party.

Acknowledge the registration with a return email. A thank you and restatement of subscription decreases likelihood of

opting out.

Respond quickly with first targeted email.

Maintain records of registration. Allows for the handling of complaints from targeted individuals.

Include clear instruction on how to unsubcribe. Attempt to maintain low unsubscibe rates.


29/45




Recommendations For Developing

An Email Marketing Strategy Content:

Personalize content. Avoid untargeted messages.

Create content for both text and HTML formats.

Keep content short for small file sizes and quick reads.

Hyperlinks can provide access to larger amounts of content at a website,but be sure they link to content relevant pages.

Change email content over time to limit individuals opting out.

Test messages and analyze results.

Assign an email manager or team. Have a contact person to handle responses and problems.

Optional: hire an ASP for email services.

Keep email list secure. Do not allow email receivers to obtain lists so a reply to all does not

create spam.


30/45




Table 3.3: Cost Effectiveness Of

Direct Marketing Alternatives

Customer Acquisition Customer Retention

Direct Mail

to Rented

List

Banner

Advertising

Email to

Rented List

Direct Mail

to In-House

List

Email to In-

House List

Cost per 1,000

(CPM)

$850 $13 $200 $686 $5

Clickthrough NA 0.8% 3.5% NA 100%

Purchase Rate 1.2% 2.0% 2.0% 3.9% 2.5%

Cost per Sale $71 $100 $286 $18 $2


31/45




Case 3.2 Email Flower Power

Thinking Strategically

Use Figure 3.4 to illustrate how Proflowers

models its targeted email campaign.

Explain why this campaign would be effective

for these customers with this product.

Evaluate the outcome measures for this

campaign, determine if these could beimproved by the use of other measurements.


32/45


Managing E-Business, 2eCopyright 2003 South-Western College Publishing

Chapter 3 Slide: 32

Customer 2

Figure 3.4: Targeted Email

Marketing Model

Target

Website

Friends

Email

Customer 1

Viral

Marketing

Directed

Links

Current

Customer

Database(relationship

maintenance)

DynamicData

Email

ServerIndividualsPermission

Sniffer

Purchased

Database

(Prospects)


33/45



Chapter 3 Slide: 33

Spam

Spam is the practice of sending unwanted email to

a large number of individuals.

Spam is unlike postal junk mail, e-mail spammers

do not need to purchase postage for every messagesent and therefore are able to greatly expand the

number of people they can reach. This shifts costs

from the sender to the network and receiver.

Spammers believe that the more email sent, thebetter their chances.

Mail Abuse Prevention System (MAPS) (http://mail-abuse.org)
http://mail-abuse.org/http://mail-abuse.org/http://mail-abuse.org/http://mail-abuse.org/


34/45



Chapter 3 Slide: 34

Mailing Lists &

Discussion Groups

Threaded discussion lists (newsgroups, forums)

allow individuals to add to an initial message with

successive messages. This allows a newsgroup

user to add to a thread, or single conversation, byindicating their response to the prior message.

Messages are available for other to read and are

indented under topics headings:

Initial Post First response

Second response


35/45



Chapter 3 Slide: 35

Instant Messaging & Chat

Instant messaging (IM). Messages are send instantaneously from individual to

individual through buddy lists allowing individuals toknow when someone else is online. This could be a

friend, or someone who has been identified as havingshared interests.

Chatting Online involves a number of individuals who leave

messages for others to see.

This can be placed in a repository or chat rooms forviewing at later times or could be live in thatindividuals write to others in real time.


36/45



Chapter 3 Slide: 36

Figure 3.5: Rich Media Process

Images

Sound

Graphics

Video

Programming

Authoring

Software

Or HTML BasedMultimedia

Streaming

Server


37/45



Chapter 3 Slide: 37

Free Speech

Large media companies no longer control widelybroadcast public speech. Small independent

communications systems have shifted power.

Political elections around the world have

demonstrated that candidates are able to use theInternet to spread information at a fairly low cost.

Political thoughts can also travel across borders

allowing dissidents, human rights information, andalternative political parties to provide information to

those who gain access to the Web.


38/45



Chapter 3 Slide: 38

Free Speech

Free speech issues:

Cybersmearing:

defaming online.

Rogue sites:

allow individuals to express their feelings about a

companies, products, or organizations.

Rumors: Spreading of un-truths online.


39/45



Chapter 3 Slide: 39

Rumors

The ease of posting information over the

Internet allows for the dissemination of rumors.

This could be due to the lack of research

undertaken by the sender of information, or itcould be purposeful sending of misinformation.

Internet users to learn to gain a critical eye for

information sent over the Internet.

Consumers of Internet information learn "Net

Literacy" or how to evaluate information that

they find online.


40/45



Chapter 3 Slide: 40

Netiquette (1)

Netiquette: proper etiquette over networks.This includes the rules for common courtesy online

and the informal "rules of the road" for cyberspace.

Basic considerations of going online with email

are: Be respectful of others online. Behave as if you

were having a conversation with someone inperson.

The Internet is a global medium, others online mayhave a culture, language, and humor that isdifferent from the sender. Jokes and sarcasm maynot travel well.


41/45



Chapter 3 Slide: 41

Netiquette (2)

Basic considerations of going online (continued) Respect the copyright on material reproduced.

Don't send chain letters through e-mail. Chain lettersare forbidden on the Internet.

When in a chat group, observe the discussion to get afeel for the group culture before making comments.

Use mixed case. UPPER CASE LOOKS AS IFYOU'RE SHOUTING.

Keep file sizes small. Don't send large amounts of unsolicited information

to people.


42/45



Chapter 3 Slide: 42

Exercise 3.1 Evaluate Web Sites

Read theE-Mailing to the Showershortcase.

Evaluate the e-mail marketing campaign

used by the company. Use the Targeted E-Mail Marketing Model

(Figure 3.4) on page 85 to illustrate how

this campaign was designed. List the measurement criteria used to

determine if the campaign was successful.


43/45



Chapter 3 Slide: 43

Develop a strategy using e-mail marketing

techniques to market a product or service.

Use the Targeted E-Mail Marketing Model

(Figure 3.4) on page 85 as a guide.

Include information on the profile of the

market you plan to target.

List the measurement criteria used to

determine if this was a successful campaign.

Exercise 3.2 Developing E-Mail

Marketing Campaigns


44/45



Chapter 3 Slide: 44

Exercise 3.3 Devising a Strategy

for Intrafirm Communication

Assume that you have been placed in charge of developingan integrated e-business communication system tofacilitate employee-to-employee and business-to-employeecommunication.

Determine the types of communication needed within thefirm.

Which platforms would best serve those communicationneeds?

Speculate on new platforms the employees may be using inthe future and decide how your business will respond tothese new technologies.


45/45

For use with Strategic Electronic Marketing: Chapter 3 Slide: 45

Competitive Exercise 3.4

Devising a Strategy for

Business-to-Customer Communication Assume that you are asked to develop an integrated e-

business communication system to serve your customers.

What types of communication would your customers liketo have with your business?

Identify the platforms that would best serve thosecommunication needs.

What new platforms will your customer base be using inthe future?

How will your business use these new technologies? Justify why your plan should be adopted by your company.

strategic electronic marketing: managing e-business, 2e ch03

Documents