Marketing in the
Digital Age: Making New
Customer Connections
3 - <number>
Marketing in the
Digital Age: Making New
Customer Connections
3 - <number>
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 - <number>
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 - <number>
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.
3 - <number>
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
3 - <number>
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 - <number>
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 - <number>
E-Commerce Domains
E-Marketing Domains
Targeted to
consumers
Targeted to
businesses
Initiated by
businesses
B2C
B2B
Initiated by
consumers
C2C
C2B
3 - <number>
E-Commerce Domains
Major
Domains
B2C
B2B
C2C
C2B
Online consumers
Now more mainstream and
diverse
Has created new targeting
opportunities
Online behavior differs by
age
Online consumers differ
from traditional off-line
consumers
They initiate and control the
exchange process
Value information highly
3 - <number>
E-Commerce Domains
Major
Domains
B2C
B2B
C2C
C2B
B2B sales far exceed B2C
sales
B2B sales are estimated
to reach $4.3 trillion
Open trading networks
E-marketspace bringing
sellers and buyers
together
Private trading networks
Links sellers with their
own trading partners
3 - <number>
E-Commerce Domains
Major
Domains
B2C
B2B
C2C
C2B
C2C web sites help
consumers exchange
goods or information
eBay is one example
Auction sites facilitate the
exchange process
Allow access to a much
larger audience
Newsgroups / forums
Help consumers to find
and share information
3 - <number>
E-Commerce Domains
Major
Domains
B2C
B2B
C2C
C2B
Allow consumers to
search out sellers, learn
about offers, initiate
purchase, or dictate
purchase terms
Ex: Priceline.com
Some sites facilitate the
feedback process
between customers and
companies
Ex: Planetfeed.com
3 - <number>
The Marketing
Environment
Key Environments
Marketing Environment
The actors and forces that affect a firm’s
ability to build and maintain successful
relationships with customers.
Aspects of the marketing environment:
Microenvironment
Macroenvironment
4- <number>
The Microenvironment
Actors Affecting a Firm’s Ability
to Serve Customers
Company
Suppliers
Customer
Markets
Competitors
Publics
Marketing
Intermediaries
4- <number>
The Microenvironment
Departments within the company impact
marketing planning.
Suppliers help create and deliver
customer value.
Treat suppliers as partners.
Marketing intermediaries help sell,
promote, and distribute goods.
Intermediaries take many forms.
4- <number>
The Microenvironment
Customer markets must be studied.
Consumer, business, government, reseller and
international markets exist.
Successful companies provide better
customer value than the competition.
Size and industry position help to determine the
appropriate competitive strategy.
Various publics must also be considered.
4- <number>
The Microenvironment
Types of Publics
Financial
Media
Government
Local
General
Internal
Citizen Action
4- <number>
The Macroenvironment
Macro environmental Forces
Demographic
Economic
Natural
Technological
Political
Cultural
4- <number>
The Macroenvironment
Key Demographic Trends
World population growth
Changing age structure
The U.S. population consists of seven
generational groups.
Baby boomers, Generation X, and
Generation Y are key groups.
Distinct segments typically exist within
these generational groups.
4- <number>
The Macroenvironment
Key Demographic Trends
Changing Global household
Geographic population shifts
Better-educated, more white-collar
workforce
Increasing Diversity
4- <number>
The Macroenvironment
The Economic Environment
Affects consumer purchasing power
and spending patterns.
Consumers now spend carefully
and desire greater value.
Consumer spending patterns are
changing.
4- <number>
The Macroenvironment
The Natural Environment
Concern for the natural environment
has grown steadily, increasing the
importance of these trends:
Shortage of raw materials
Increased pollution
Increased governmental intervention
4- <number>
The Macroenvironment
Key Technological Trends
The technological environment is
characterized by rapid change.
New technologies create new
opportunities and markets but make
old technologies obsolete.
4- <number>
The Macroenvironment
The Political Environment
Includes laws, governmental agencies, and
pressure groups that impact organizations and
individuals. Key trends include:
Increased legislation to protect businesses
as well as consumers.
Changes in governmental agency enforcement.
Increased emphasis on ethical behavior and
social responsibility.
4- <number>
The Macroenvironment
The Cultural Environment
Is composed of institutions and other
forces that affect a society’s basic values,
perceptions, preferences, and behaviors.
Culture can influence decision making.
Core beliefs are persistent; secondary cultural
values change and shift more easily.
The cultural values of a society are expressed
through people’s views.
4- <number>
Responding to the
Marketing Environment
Reactive: Passive Acceptance and
Adaptation
Companies design strategies that avoid threats
and capitalize upon opportunities.
Proactive: Environmental Management
Use of lobbyists, PR, advertorials, lawsuits,
complaints, and contractual agreements to
influence environmental forces.
4- <number>