This week covered the topic ‘Marketing in a wired world’. This week discussed the 4P’s which are:
· Product
· Price
· Place
· Promotion
And the 4 C’s which are:
· Cost
· Communication with company
· Customer needs and wants
· Customer convenience
Online brand option are:
· Migrate traditional brands online
· Extended traditional brand
· Partner with a traditional brand
· Create a new digital brand
There are different purchase methods of digital products. The methods are purchase, rental or subscription and pay per use.
This topic discussed four places which are:
PLACE 1: Place of purchase
PLACE 2: New channel structure which is disintermediation, reintermediation, countermediation.
PLACE 3: Channel conflict
PLACE 4: Virtual organisation.
Lastly promotional tools which can be used are:
· Advertising
· Sales promotion
· Personal selling
· Public relations
· Direct marketing
Sunday, August 23, 2009
Week 4: Marketing in a wired world
1) A decrease in prices is inevitable in an online marketing environment. Do you agree or disagree?
When discussing the statement a decrease in prices is inevitable in an online marketing environment there are many different opinions to this statement. In the lecture slides there are two views which are pro and con for this issue.
View 1 is decreased prices inevitable and View 2 which is decrease in prices is unnecessary. In my opinion I have mixed feelings about this issue. Generally when purchasing a product online there is a conceived notion that the price of the product would be cheaper than buying the product in store. Ideally when purchasing products online seem to be cheaper because of the wait time for the product. Instead of buying the product in store at the exact time of purchase and having the product, the product needs to be ordered and the consumer needs to wait.
On the other hand a decrease in prices is unnecessary because consumers buy the products online because it’s more convenient. There is a perceived notion which is that the prices are the same and does not really matter. The notion is that buying products online are easier and less time consuming because you can just purchase which ever item you want without leaving your home.
Overall marketing online is cheaper than marketing offline because the company website and other mediums are less expensive than offline marketing. Offline marketing which is generally television, radio, magazines and newspapers are more expensive in the long run then online marketing.
Overall I agree in which that a decrease in prices are inevitable because most consumers have the idea that buying products online means cheaper prices.
2) Disintermediation will ultimately lead to channel conflict. Discuss.
When discussing disintermediation first of all have to define what this actually means. Disintermediation is “removing the middleman”. Ideally this means that companies make transactions directly to the customer instead of using such intermediaries as retailers. An example would be buying a laptop through the company such as Dell instead of buying the product through a shop called Harvey Norman.
The lecture slides discussed channel conflicts. In this situation channel conflict can depend on:
· Communication channel
· Distribution channel to intermediaries
· Direct sales channel to customer
· Or a combination of all.
When discussing disintermediation leading channel conflict ideally the idea of disintermediation is to cut out the intermediaries to decrease confliction. By cutting out the middle intermediaries such as broker or wholesaler this decreases the chance of “lost in translation”. So when there is an issue with a product or missing the delivery the business can track where the issue is because there is no middle area. Such as when making a purchase through an online supplier such as Dell, if the product is not delivered within the cited time then the consumer can call the company and the company will know when the product was sent to be delivered and would be able to fix up the situation. When there are intermediaries such as wholesaler or retailer there is more of a chance that when a product is lost, the time to find where and who made the mistake will take longer to fix the situation.
On the other hand disintermediation could lead to channel conflict in which the company has to promote and sell the product through different mediums. This is because selling direct from the company can be harder than selling through intermediaries. Intermediaries such as retailer can sell products in different locations and increase the product recognition. Channel conflict can become an issue if the company has a tough time selling the product direct. The communication channel can become an issue if the company only uses the company website. If the company only uses their company website then the company may not have a large recognition factor causing major difficulty.
Overall disintermediation has potential to cause channel conflict but ideally the use of disintermediation is to prevent that.
3) What are the five elements of promotion and what are some examples of combining online/offline promotion?
The five elements of promotion are:
· Advertising
· Sales promotion
· Personal selling
· Public relations
· Direct marketing
Advertising is when a company tries to sell a product. Advertising ideally is to “persuade and to inform” (Tutor2u, n.d). Examples of online advertising are websites, social websites. Examples of offline promotion are television, radio, magazines, billboards and newspapers.
Sales promotion is when types of packages are made to increase sales. Examples of online promotion are sales on the businesses website which state a promotional deal such as buy online and receive a 10% discount or multiple purchases. Offline promotion is like in store sales promotion which is like discounts or special deals.
Personal selling is ideally when a customer is approached or receives assistance by a sales representative in person or verbal conversation.
Public relations are when a business receives publicity for free. An example would be videos made on you tube such as someone using the product or talking about it. Another example would be a reporter writing an article about the service or product of a business. Another example is the television report on the business.
Direct marketing is when there is a relationship between the company and the individual (Tutor2u, n.d).
Ideally when combining online and offline promotion this is generally through the company’s website combining the products selling online and offline. An example would be selling a product such as an ipod in store during a sales promotion and linking the sales promotion to the online website to increase sales. The online and offline promotions have to be consistent. The reason for combining both online and offline is because this allows consumers to look for specials or prices which reflect the instore and online presence.
References:
Tutor2u.(n.d). Promotion. Retrieved August 23, 2009 from: http://tutor2u.net/business/marketing/promotion_factors.asp
Lecture slides by Ian Knox.
When discussing the statement a decrease in prices is inevitable in an online marketing environment there are many different opinions to this statement. In the lecture slides there are two views which are pro and con for this issue.
View 1 is decreased prices inevitable and View 2 which is decrease in prices is unnecessary. In my opinion I have mixed feelings about this issue. Generally when purchasing a product online there is a conceived notion that the price of the product would be cheaper than buying the product in store. Ideally when purchasing products online seem to be cheaper because of the wait time for the product. Instead of buying the product in store at the exact time of purchase and having the product, the product needs to be ordered and the consumer needs to wait.
On the other hand a decrease in prices is unnecessary because consumers buy the products online because it’s more convenient. There is a perceived notion which is that the prices are the same and does not really matter. The notion is that buying products online are easier and less time consuming because you can just purchase which ever item you want without leaving your home.
Overall marketing online is cheaper than marketing offline because the company website and other mediums are less expensive than offline marketing. Offline marketing which is generally television, radio, magazines and newspapers are more expensive in the long run then online marketing.
Overall I agree in which that a decrease in prices are inevitable because most consumers have the idea that buying products online means cheaper prices.
2) Disintermediation will ultimately lead to channel conflict. Discuss.
When discussing disintermediation first of all have to define what this actually means. Disintermediation is “removing the middleman”. Ideally this means that companies make transactions directly to the customer instead of using such intermediaries as retailers. An example would be buying a laptop through the company such as Dell instead of buying the product through a shop called Harvey Norman.
The lecture slides discussed channel conflicts. In this situation channel conflict can depend on:
· Communication channel
· Distribution channel to intermediaries
· Direct sales channel to customer
· Or a combination of all.
When discussing disintermediation leading channel conflict ideally the idea of disintermediation is to cut out the intermediaries to decrease confliction. By cutting out the middle intermediaries such as broker or wholesaler this decreases the chance of “lost in translation”. So when there is an issue with a product or missing the delivery the business can track where the issue is because there is no middle area. Such as when making a purchase through an online supplier such as Dell, if the product is not delivered within the cited time then the consumer can call the company and the company will know when the product was sent to be delivered and would be able to fix up the situation. When there are intermediaries such as wholesaler or retailer there is more of a chance that when a product is lost, the time to find where and who made the mistake will take longer to fix the situation.
On the other hand disintermediation could lead to channel conflict in which the company has to promote and sell the product through different mediums. This is because selling direct from the company can be harder than selling through intermediaries. Intermediaries such as retailer can sell products in different locations and increase the product recognition. Channel conflict can become an issue if the company has a tough time selling the product direct. The communication channel can become an issue if the company only uses the company website. If the company only uses their company website then the company may not have a large recognition factor causing major difficulty.
Overall disintermediation has potential to cause channel conflict but ideally the use of disintermediation is to prevent that.
3) What are the five elements of promotion and what are some examples of combining online/offline promotion?
The five elements of promotion are:
· Advertising
· Sales promotion
· Personal selling
· Public relations
· Direct marketing
Advertising is when a company tries to sell a product. Advertising ideally is to “persuade and to inform” (Tutor2u, n.d). Examples of online advertising are websites, social websites. Examples of offline promotion are television, radio, magazines, billboards and newspapers.
Sales promotion is when types of packages are made to increase sales. Examples of online promotion are sales on the businesses website which state a promotional deal such as buy online and receive a 10% discount or multiple purchases. Offline promotion is like in store sales promotion which is like discounts or special deals.
Personal selling is ideally when a customer is approached or receives assistance by a sales representative in person or verbal conversation.
Public relations are when a business receives publicity for free. An example would be videos made on you tube such as someone using the product or talking about it. Another example would be a reporter writing an article about the service or product of a business. Another example is the television report on the business.
Direct marketing is when there is a relationship between the company and the individual (Tutor2u, n.d).
Ideally when combining online and offline promotion this is generally through the company’s website combining the products selling online and offline. An example would be selling a product such as an ipod in store during a sales promotion and linking the sales promotion to the online website to increase sales. The online and offline promotions have to be consistent. The reason for combining both online and offline is because this allows consumers to look for specials or prices which reflect the instore and online presence.
References:
Tutor2u.(n.d). Promotion. Retrieved August 23, 2009 from: http://tutor2u.net/business/marketing/promotion_factors.asp
Lecture slides by Ian Knox.
Sunday, August 16, 2009
Reflection on learning on topic 3- Remix
This week has covered the topic of the effects of the remix. This week covered online and offline marketing of products/services showing their similarities and differences. The powerpoint covered the marketing mix of the 7 ‘P’s.
· Product
· Price
· Promotion
· People
· Process
· Physical evidence
· Partnership
This weeks questions covered dynamic pricing models and offline and online marketing of products such as Hepburn Spas and Subway. This topic demonstrated how marketing differs for different services and products also demonstrating how pricing can be flexible and customised depending on the product or service.
· Product
· Price
· Promotion
· People
· Process
· Physical evidence
· Partnership
This weeks questions covered dynamic pricing models and offline and online marketing of products such as Hepburn Spas and Subway. This topic demonstrated how marketing differs for different services and products also demonstrating how pricing can be flexible and customised depending on the product or service.
Week 3: Remix
(1) Consider a restaurant in Sturt Street Ballarat. On the discussion page write down all the offline marketing activities you can think of and then start a separate list and write down all the online activities you can think of.
When looking at restaurants in Sturt Street the only main restaurant which I can remember is La Porchetta. La Porchetta is a large chain which can be found in different parts of Australia. When looking at the offline marketing activities of La Porchetta there are a few different methods La Porchetta has used to spread recognition of the brand.
Offline marketing:
· Television advertisement
· Radio advertisement
· Newspaper adverts
· Coupons
· Signs
· Word of mouth
Online marketing:
· Website
· Restaurant websites
· Social websites such as facebook become a fan.
What if, any were the different in the lists?
The differences are basically how they advertise using different methods. By using television, radio and newspaper advertising this is similar to using the internet it is just a different type of method to get recognition. The website gives a lot of information about the restaurant and allows consumers to check out information which relates to their needs. Adverts such as the radio and television refer to viewing the website which brings a link to online and offline marketing.
(2) Consider two other products/services of your choice. Write down all the offline/online marketing possibilities you can think of.
When considering two different products or services I have chosen two services. The two services are Hepburn spas and Subway. These two services are different in which one is a fast food chain and the other is a relaxing spa resort. By having two different services this should demonstrate a few similarities and differences of online and offline marketing.
Hepburn Spas:
Online marketing:
· Hepburn Spas has a website which describes all the different treatments which consumers can have when going to the resort. This online marketing details how much each treatment costs and where the spa is located.
· Online advertisement would be a connection with the location such as when going to Daylesford what you can do.
Offline Marketing:
· Brochures
· Tv adverts
· Radio adverts
· Newspaper adverts
· Magazines
· Tv specials such as Getaway and travel type of shows.
· Word of mouth
Subway:
Online marketing:
· Subway has an official website which states their locations, menu, frachises and trading hours.
· Online competitions
· Restaurant information such as when googling locations and places to eat.
Offline marketing:
· Tv adverts
· Radio adverts
· Coupons
· Newspaper adverts
· Magazine adverts
· Billboards
· Location signs
(3) What makes a great online product from a marketers point of view? How would you measure success?
A great online product in a marketers view would be a product which can be sold. An example of a tough online product to sell would be space. Consumers can not touch it or even use it for different things. A great online product would be something which a consumer can see and decide whether they want the product or not. Even a service can be good to sell such as a holiday which can be demonstrated through pictures and moving description of the destination. A good product to sell online would be something which consumers want or can be influenced to want. In my opinion success would be measured through how many hits the website has had. For example marketers can measure how many people have been on the website which would be a good indication to whether the website is being viewed. Another way to measure success would be increase in sales after introducing the online presence.
(4) Preview the pricing of two products and consider some dynamic pricing models.
Going with the same theme of Hepburn Spa and Subway there are different pricing models which can be used to price products.
According to Sadhana there are five different pricing models. Which are:
· Inventory based model
· Data driven models
· Machine learning models
· Game theory model
· Simulation model.
Looking at Subway and their rolls costing on average of $6 for a 6inch sub this is an example of inventory based model because Subway dispels coupons for cheaper subs to bring in more sales. This demonstrates product sales and customer sales. Hepburn Spas on the other hand ideally is the same model but is different in the sense that their pricing is not a flexible pricing strategy but a customised. Hepburn Spas are customised pricing which means they have a particular price such as a treatment package can range from $140. This differs from Subway which is flexible and constantly changing to suit consumers such as through coupons (Sadhana, 2005).
(5) What are some of the issues these (pricing) models raise?
Some of the issues which these models raise are what if the product does not fit these certain categories? These five models are broad but do not cover all aspects of business decisions on pricing. Products being flexible and customised priced can also change because of consumer demand. Also the demand and supply can change which changes the pricing of products. If products/services do to make money they the business will also lose money.
References:
La Porchetta.(2005). La Porchetta Restaurant. Retrieved August 16, 2009 from: http://www.laporchetta.com.au/home/
Hepburn Spas.(2009). Hepburn Spas. Retrieved August 15, 2009 from: http://www.hepburnspa.com.au/hepburn_spa_australia.html
Subway.(2009). Subway Restaurants. Retrieved August 15, 2009 from: http://www.subway.com.au/content.asp
Sadhana.(2005). Dynamic pricing models for electronic business. Retrieved on August 15, 2009 from: http://www.ias.ac.in/sadhana/Pdf2005AprJun/Pe1337.pdf
When looking at restaurants in Sturt Street the only main restaurant which I can remember is La Porchetta. La Porchetta is a large chain which can be found in different parts of Australia. When looking at the offline marketing activities of La Porchetta there are a few different methods La Porchetta has used to spread recognition of the brand.
Offline marketing:
· Television advertisement
· Radio advertisement
· Newspaper adverts
· Coupons
· Signs
· Word of mouth
Online marketing:
· Website
· Restaurant websites
· Social websites such as facebook become a fan.
What if, any were the different in the lists?
The differences are basically how they advertise using different methods. By using television, radio and newspaper advertising this is similar to using the internet it is just a different type of method to get recognition. The website gives a lot of information about the restaurant and allows consumers to check out information which relates to their needs. Adverts such as the radio and television refer to viewing the website which brings a link to online and offline marketing.
(2) Consider two other products/services of your choice. Write down all the offline/online marketing possibilities you can think of.
When considering two different products or services I have chosen two services. The two services are Hepburn spas and Subway. These two services are different in which one is a fast food chain and the other is a relaxing spa resort. By having two different services this should demonstrate a few similarities and differences of online and offline marketing.
Hepburn Spas:
Online marketing:
· Hepburn Spas has a website which describes all the different treatments which consumers can have when going to the resort. This online marketing details how much each treatment costs and where the spa is located.
· Online advertisement would be a connection with the location such as when going to Daylesford what you can do.
Offline Marketing:
· Brochures
· Tv adverts
· Radio adverts
· Newspaper adverts
· Magazines
· Tv specials such as Getaway and travel type of shows.
· Word of mouth
Subway:
Online marketing:
· Subway has an official website which states their locations, menu, frachises and trading hours.
· Online competitions
· Restaurant information such as when googling locations and places to eat.
Offline marketing:
· Tv adverts
· Radio adverts
· Coupons
· Newspaper adverts
· Magazine adverts
· Billboards
· Location signs
(3) What makes a great online product from a marketers point of view? How would you measure success?
A great online product in a marketers view would be a product which can be sold. An example of a tough online product to sell would be space. Consumers can not touch it or even use it for different things. A great online product would be something which a consumer can see and decide whether they want the product or not. Even a service can be good to sell such as a holiday which can be demonstrated through pictures and moving description of the destination. A good product to sell online would be something which consumers want or can be influenced to want. In my opinion success would be measured through how many hits the website has had. For example marketers can measure how many people have been on the website which would be a good indication to whether the website is being viewed. Another way to measure success would be increase in sales after introducing the online presence.
(4) Preview the pricing of two products and consider some dynamic pricing models.
Going with the same theme of Hepburn Spa and Subway there are different pricing models which can be used to price products.
According to Sadhana there are five different pricing models. Which are:
· Inventory based model
· Data driven models
· Machine learning models
· Game theory model
· Simulation model.
Looking at Subway and their rolls costing on average of $6 for a 6inch sub this is an example of inventory based model because Subway dispels coupons for cheaper subs to bring in more sales. This demonstrates product sales and customer sales. Hepburn Spas on the other hand ideally is the same model but is different in the sense that their pricing is not a flexible pricing strategy but a customised. Hepburn Spas are customised pricing which means they have a particular price such as a treatment package can range from $140. This differs from Subway which is flexible and constantly changing to suit consumers such as through coupons (Sadhana, 2005).
(5) What are some of the issues these (pricing) models raise?
Some of the issues which these models raise are what if the product does not fit these certain categories? These five models are broad but do not cover all aspects of business decisions on pricing. Products being flexible and customised priced can also change because of consumer demand. Also the demand and supply can change which changes the pricing of products. If products/services do to make money they the business will also lose money.
References:
La Porchetta.(2005). La Porchetta Restaurant. Retrieved August 16, 2009 from: http://www.laporchetta.com.au/home/
Hepburn Spas.(2009). Hepburn Spas. Retrieved August 15, 2009 from: http://www.hepburnspa.com.au/hepburn_spa_australia.html
Subway.(2009). Subway Restaurants. Retrieved August 15, 2009 from: http://www.subway.com.au/content.asp
Sadhana.(2005). Dynamic pricing models for electronic business. Retrieved on August 15, 2009 from: http://www.ias.ac.in/sadhana/Pdf2005AprJun/Pe1337.pdf
Sunday, August 9, 2009
Reflection of learning on topic 2- Strategic eMarketing:
Week two focused on Strategic e-marketing. This topic discussed types of online businesses, consumer needs, objectives of e-marketing. This week’s questions referred to poor e-marketing and how this can affect businesses. There are six choices of online marketing. These choices show the different levels in which businesses can choose to market their product or services.
Week 2: Strategic eMarketing
1. Give an example from your own experience of poor eMarketing.
One example of poor eMarketing which has affected me is when I was looking for a television series. When looking at the website with the product stated a different price then the instore price was selling at. The website stated that the store which I was to retrieve the series from did not have the series in stock. The DVD was selling $10 cheaper on the website then instore. This was rather frustrating because when buying something I rather know the price before hand and having a website is much easier to know prices and what’s in stock. To have the website being misleading makes things very annoying.
2. List 5 examples of poor eMarketing.
Five examples of poor eMarketing are:
· Poor navigation- When a website is not easy and simple to navigate then this is an example of poor eMarketing.
· Impersonal emails- When signing up for a website, the website can send out group emails which are impersonal. Consumers generally do not appreciate receiving spam type of emails which may not concern them. If a consumer is to receive emails an example of good eMarketing is if the consumer received emails concerning items which are of interest. An example would be if I was interested in a TV series such as Supernatual a website could send me out a notification about the new season is coming out.
· Broken links- Broken links are an example of poor eMarketing. If a consumer is on a website and tries to navigate onto another page and the link is broken then this is a disadvantage to the company. If the link is broken then the consumer has to look at another website because they cannot go onto another page or the link just doesn’t work.
· Security- Security is a big issue for eMarketing. If a consumer views a website to be untrustworthy then a consumer will not make a transaction with the website meaning the business would not get business. A website has to be trustworthy because when putting personal information on a website the website has to have security. Security is a major factor because no consumer wants their personal information all over the internet for other people to see.
· Updated information- A website when dealing with eMarketing has to have their information up to date so their products and prices are not misleading. If a website has information on the website which are out of date consumers can assume that products and pricing are the same which can be misleading. Websites have to be updated to show current stock and prices.
3. Provide one example (from Ballarat or your experience) of each of the six levels of eMarketing. List these on your blog page with a brief description of each. You need to work this one out it is important that you understand the different types. Of course there is also Mobile marketing which we will examine later.The following information was based on the week 2 powerpoint presentation.
The six different levels of e-marketing are:
• Level 0: Level 0 is when there is no e-marketing
• Level 1: Level 1 is a basic web presence: This is ideally when a website has a list of businesses which someone can click on to view their website. An example would be the website Menulog which lists restaurants in Melton and allows the consumer to click onto a page to view the information.
http://www.menulog.com.au/melton_vic
Level 2: Level 2 is a Simple static information site. This is a website which contains information about a destination. For example the hanging rock website which has information about the destination and what consumers can do when they go to Hanging rock.
http://www.hangingrock.info/
Level 3: Level 3 is a Simple interactive site. These are websites which consumers can look up information on the website and make enquires. These websites allow consumers/users to locate information which they search for. An example would be the Ballarat University. The Ballarat website allows people to go onto the website search for information which they want. For example if a uni student wanted to search for semester information they can type it into the search and pick the most relevant website.
www.ballarat.edu.au
Level 4: Level 4 is an Interactive site supporting transactions with users. Level 4 represents websites that deal with transactions. Such websites as Jb hifi deal with showing a list of products consumers can buy online.
http://www.jbhifi.com.au/
Level 5: Level 5 is Fully interactive site supporting the whole buying process. An example of such a website would be eBay. eBay deals with consumers who find something which they are interested in buying and purchase the item online.
http://www.ebay.com.au/
Reference:
Week 2 powerpoint
One example of poor eMarketing which has affected me is when I was looking for a television series. When looking at the website with the product stated a different price then the instore price was selling at. The website stated that the store which I was to retrieve the series from did not have the series in stock. The DVD was selling $10 cheaper on the website then instore. This was rather frustrating because when buying something I rather know the price before hand and having a website is much easier to know prices and what’s in stock. To have the website being misleading makes things very annoying.
2. List 5 examples of poor eMarketing.
Five examples of poor eMarketing are:
· Poor navigation- When a website is not easy and simple to navigate then this is an example of poor eMarketing.
· Impersonal emails- When signing up for a website, the website can send out group emails which are impersonal. Consumers generally do not appreciate receiving spam type of emails which may not concern them. If a consumer is to receive emails an example of good eMarketing is if the consumer received emails concerning items which are of interest. An example would be if I was interested in a TV series such as Supernatual a website could send me out a notification about the new season is coming out.
· Broken links- Broken links are an example of poor eMarketing. If a consumer is on a website and tries to navigate onto another page and the link is broken then this is a disadvantage to the company. If the link is broken then the consumer has to look at another website because they cannot go onto another page or the link just doesn’t work.
· Security- Security is a big issue for eMarketing. If a consumer views a website to be untrustworthy then a consumer will not make a transaction with the website meaning the business would not get business. A website has to be trustworthy because when putting personal information on a website the website has to have security. Security is a major factor because no consumer wants their personal information all over the internet for other people to see.
· Updated information- A website when dealing with eMarketing has to have their information up to date so their products and prices are not misleading. If a website has information on the website which are out of date consumers can assume that products and pricing are the same which can be misleading. Websites have to be updated to show current stock and prices.
3. Provide one example (from Ballarat or your experience) of each of the six levels of eMarketing. List these on your blog page with a brief description of each. You need to work this one out it is important that you understand the different types. Of course there is also Mobile marketing which we will examine later.The following information was based on the week 2 powerpoint presentation.
The six different levels of e-marketing are:
• Level 0: Level 0 is when there is no e-marketing
• Level 1: Level 1 is a basic web presence: This is ideally when a website has a list of businesses which someone can click on to view their website. An example would be the website Menulog which lists restaurants in Melton and allows the consumer to click onto a page to view the information.
http://www.menulog.com.au/melton_vic
Level 2: Level 2 is a Simple static information site. This is a website which contains information about a destination. For example the hanging rock website which has information about the destination and what consumers can do when they go to Hanging rock.
http://www.hangingrock.info/
Level 3: Level 3 is a Simple interactive site. These are websites which consumers can look up information on the website and make enquires. These websites allow consumers/users to locate information which they search for. An example would be the Ballarat University. The Ballarat website allows people to go onto the website search for information which they want. For example if a uni student wanted to search for semester information they can type it into the search and pick the most relevant website.
www.ballarat.edu.au
Level 4: Level 4 is an Interactive site supporting transactions with users. Level 4 represents websites that deal with transactions. Such websites as Jb hifi deal with showing a list of products consumers can buy online.
http://www.jbhifi.com.au/
Level 5: Level 5 is Fully interactive site supporting the whole buying process. An example of such a website would be eBay. eBay deals with consumers who find something which they are interested in buying and purchase the item online.
http://www.ebay.com.au/
Reference:
Week 2 powerpoint
Reflection of learning on topic 1-eMarketing:
Week one focused on the differences between e-marketing and e-business. This week focused on what is e-marketing. This topic discussed the legal, technological and market related factors affecting e-marketing. The three main markets concerning e business are consumer, business and government markets.
Monday, August 3, 2009
Week 1: E-marketing questions
1. Define e-business and e-marketing.
E-business can be defined as a company or person using the internet for their business. Alexandrou defines e-business as “conducting business using the internet” (Alexandrou, 2009). Whereas e-marketing can be defined as using the internet “moving elements of marketing strategies and activities to a computerized environment” (Aede, n.d). This means that marketers use traditional marketing strategies but use the traditional marketing in context of using the internet. E-marketing consists of marketers using the internet and digital tools to market products and services. When marketing a product, marketers have to use different strategies to ‘create, distribute, promote and price goods over the internet’ (Aede, n.d).
2. What are performance metrics and why are they important?
Chaffey defines performance metrics as a way to measure and evaluate to improve the efficiency and effectiveness of business processes (Chaffey, 2009). Performance metrics are important because if a business does not evaluate how to improve the efficiency and effectiveness of the business then the business may not operate to their full potential. By having a performance metrics this allows the business to know where the company is lacking and where improvements are needed.
3. What are some of the key legal issues that affect e-marketing?
Legal issues which affect e-marketing are privacy, the government and technology. These legal issues affect e-marketing in different ways. Legal issues affect e-marketing because legislation which has been put in place can affect a business if the legislation is not followed. Privacy affects e-marketing because of customers have to give their personal information over the internet. The main issue is that legislation is difficult but is required because customers need privacy and security when giving personal information over the internet. No customer wants to give their personal information if everyone can see their details without their consent. Another issue affecting e-marketing is trying to distinguish “freedom of expression against consumer needs” (Knox, 2009). This is an issue for the government. When dealing with e-marketing the government has to find a balance. Another legal issue is that with new technology this causes concern because businesses can be fraudulent, causing more “opportunities for fraud” (Knox, 2009). By marketing products over the internet this causes consumers to have to be able to trust the website because certain businesses can be fraudulent and cheat people out of what they purchased. Legislation influences e-marketing strategies because businesses have to follow what the legislation says or the business can get into trouble.
4. How does technology both raise and lower costs for companies?
When dealing with technology there are many ways which can lower costs of a company but also can raise the cost. Technology can lower costs because businesses save money on such things as staff and paperwork. This decreases costs because with less staff this means the company has fewer wage to pay. Technology lowers costs with paper work because companies can “electronic order processing, billing and e-mailing” (Knox, 2009). Although with new technology this also means a rise in costs for the company because technology costs money. Such elements which contribute to a higher price concerning technology are that web page development is expensive, e-commerce “requires expensive hardware and software” (Knox, 2009). Technology is being improved all the time causing new technology to come out causing current investments of technology to become out of date. When using new technology the company has to learn how to use the technology. This means that all staff has to learn how to use it (Knox, 2009).
5. As a technology, how does the Internet compare with the telephone?
In my opinion when comparing the telephone and the internet as a technology there are many advantages and disadvantages with using these technologies. We are living in a society which is using the internet more and more for everyday things. In the context of marketing it only makes sense that marketers would use the internet to sell and expose the general public of items. When marketers use the telephone to sell products a lot of consumers do not like this method of marketing causing using the telephone to not be hugely successful. As more and more consumers use the internet, this technology can be seen as more successful because consumers are not interrupted doing something else but are already on the internet and can close the pop up box if they do not wish to look at the advert. The use of the telephone is decreasing although mobile phones improve because of technology because more and more mobiles have the internet which they can access whenever and wherever.
6. What are some of the marketing implications of Internet technologies?
Some of the marketing implications of internet technologies are that they internet has changed traditional marketing by causing such changes as:
· Causing a “power shift from sellers to buyers” (Knox, 2009). This means that instead of the sellers having all control the buyers have more power since the internet allows consumers to search for what they want and if they want to see an advert. Consumers can set their internet to stop pop ups appearing causing a lot of adverts on the internet to be blocked.
· Distance is not an issue with the internet. By marketing over the internet this allows more people to be reached instead of a company marketing to a certain area such as Melbourne. The internet allows a wider audience and not just aimed at a small portion of the country.
· Time compression has changed because of the use of the internet.
· Other changes are Knowledge management, Interdisciplinary focus and Intellectual capital rules. (Knox, 2009)
7. What are the three main markets of e-business, and how do they differ?
The three main markets of e-business are the business market, government market and the consumer market. When looking at these three markets the difference is their purpose.
· The business market consists of business to business which is when a business buys products from another business such as buying from a wholesaler. Business to consumer is when a business sells something to the consumer. Business to government is the business pays tax and renews their license (Digital Smith, 2005).
· The government market is when the government makes consumers and businesses pay tax and legislation (Digital Smith, 2005).
· The consumer market consists of consumer to consumer which is when a consumer sells something to another consumer such as through eBay. Consumer to business is when the consumer knows what they want and chooses the business which has the best price. Consumer to government is when the consumer pays tax to the government (Digital Smith, 2005).
The key differences between the three markets are their purpose which is the business market is there to sell, consumer market buys and the government insures everything is regulated and receives taxes from businesses and consumers.
8.In the context of e-marketing, what does “revenge of the consumer” mean?
In the context of e-marketing revenge of the consumer basically means that the consumer has the power. When an advert pops on the screen when on the internet, the consumer does not have to watch the advert because they can just close the window. Consumers now can block adverts on their computer which means that adverts do not appear. Just like on TV when an ad is on the consumer can change the channel, on the internet the consumer can just block pop up ads. The internet has given consumers more power because if they are looking for an item the internet allows the consumer to look online to find what they want.
References:
Aede.(n.d). Glossary. Retrieved July 30, 2009 from: http://aede.osu.edu/programs/e-agbiz/pageglossary/main.html
Alexandrou, M.(2009). ebusiness definition. Retrieved on July 30, 2009 from: http://www.mariosalexandrou.com/definition/ebusiness.asp
Chaffey, D.(2009). E-marketing. Retrieved July 30, 2009 from: http://www.davechaffey.com/E-marketing-Glossary/Performance-metrics.htm
Digital Smith.(2005). E-commerce definition. Retrieved July 30, 2009 from: http://www.digitsmith.com/ecommerce-definition.html
Knox, I.(2009). E-marketing. Powerpoint presentation
E-business can be defined as a company or person using the internet for their business. Alexandrou defines e-business as “conducting business using the internet” (Alexandrou, 2009). Whereas e-marketing can be defined as using the internet “moving elements of marketing strategies and activities to a computerized environment” (Aede, n.d). This means that marketers use traditional marketing strategies but use the traditional marketing in context of using the internet. E-marketing consists of marketers using the internet and digital tools to market products and services. When marketing a product, marketers have to use different strategies to ‘create, distribute, promote and price goods over the internet’ (Aede, n.d).
2. What are performance metrics and why are they important?
Chaffey defines performance metrics as a way to measure and evaluate to improve the efficiency and effectiveness of business processes (Chaffey, 2009). Performance metrics are important because if a business does not evaluate how to improve the efficiency and effectiveness of the business then the business may not operate to their full potential. By having a performance metrics this allows the business to know where the company is lacking and where improvements are needed.
3. What are some of the key legal issues that affect e-marketing?
Legal issues which affect e-marketing are privacy, the government and technology. These legal issues affect e-marketing in different ways. Legal issues affect e-marketing because legislation which has been put in place can affect a business if the legislation is not followed. Privacy affects e-marketing because of customers have to give their personal information over the internet. The main issue is that legislation is difficult but is required because customers need privacy and security when giving personal information over the internet. No customer wants to give their personal information if everyone can see their details without their consent. Another issue affecting e-marketing is trying to distinguish “freedom of expression against consumer needs” (Knox, 2009). This is an issue for the government. When dealing with e-marketing the government has to find a balance. Another legal issue is that with new technology this causes concern because businesses can be fraudulent, causing more “opportunities for fraud” (Knox, 2009). By marketing products over the internet this causes consumers to have to be able to trust the website because certain businesses can be fraudulent and cheat people out of what they purchased. Legislation influences e-marketing strategies because businesses have to follow what the legislation says or the business can get into trouble.
4. How does technology both raise and lower costs for companies?
When dealing with technology there are many ways which can lower costs of a company but also can raise the cost. Technology can lower costs because businesses save money on such things as staff and paperwork. This decreases costs because with less staff this means the company has fewer wage to pay. Technology lowers costs with paper work because companies can “electronic order processing, billing and e-mailing” (Knox, 2009). Although with new technology this also means a rise in costs for the company because technology costs money. Such elements which contribute to a higher price concerning technology are that web page development is expensive, e-commerce “requires expensive hardware and software” (Knox, 2009). Technology is being improved all the time causing new technology to come out causing current investments of technology to become out of date. When using new technology the company has to learn how to use the technology. This means that all staff has to learn how to use it (Knox, 2009).
5. As a technology, how does the Internet compare with the telephone?
In my opinion when comparing the telephone and the internet as a technology there are many advantages and disadvantages with using these technologies. We are living in a society which is using the internet more and more for everyday things. In the context of marketing it only makes sense that marketers would use the internet to sell and expose the general public of items. When marketers use the telephone to sell products a lot of consumers do not like this method of marketing causing using the telephone to not be hugely successful. As more and more consumers use the internet, this technology can be seen as more successful because consumers are not interrupted doing something else but are already on the internet and can close the pop up box if they do not wish to look at the advert. The use of the telephone is decreasing although mobile phones improve because of technology because more and more mobiles have the internet which they can access whenever and wherever.
6. What are some of the marketing implications of Internet technologies?
Some of the marketing implications of internet technologies are that they internet has changed traditional marketing by causing such changes as:
· Causing a “power shift from sellers to buyers” (Knox, 2009). This means that instead of the sellers having all control the buyers have more power since the internet allows consumers to search for what they want and if they want to see an advert. Consumers can set their internet to stop pop ups appearing causing a lot of adverts on the internet to be blocked.
· Distance is not an issue with the internet. By marketing over the internet this allows more people to be reached instead of a company marketing to a certain area such as Melbourne. The internet allows a wider audience and not just aimed at a small portion of the country.
· Time compression has changed because of the use of the internet.
· Other changes are Knowledge management, Interdisciplinary focus and Intellectual capital rules. (Knox, 2009)
7. What are the three main markets of e-business, and how do they differ?
The three main markets of e-business are the business market, government market and the consumer market. When looking at these three markets the difference is their purpose.
· The business market consists of business to business which is when a business buys products from another business such as buying from a wholesaler. Business to consumer is when a business sells something to the consumer. Business to government is the business pays tax and renews their license (Digital Smith, 2005).
· The government market is when the government makes consumers and businesses pay tax and legislation (Digital Smith, 2005).
· The consumer market consists of consumer to consumer which is when a consumer sells something to another consumer such as through eBay. Consumer to business is when the consumer knows what they want and chooses the business which has the best price. Consumer to government is when the consumer pays tax to the government (Digital Smith, 2005).
The key differences between the three markets are their purpose which is the business market is there to sell, consumer market buys and the government insures everything is regulated and receives taxes from businesses and consumers.
8.In the context of e-marketing, what does “revenge of the consumer” mean?
In the context of e-marketing revenge of the consumer basically means that the consumer has the power. When an advert pops on the screen when on the internet, the consumer does not have to watch the advert because they can just close the window. Consumers now can block adverts on their computer which means that adverts do not appear. Just like on TV when an ad is on the consumer can change the channel, on the internet the consumer can just block pop up ads. The internet has given consumers more power because if they are looking for an item the internet allows the consumer to look online to find what they want.
References:
Aede.(n.d). Glossary. Retrieved July 30, 2009 from: http://aede.osu.edu/programs/e-agbiz/pageglossary/main.html
Alexandrou, M.(2009). ebusiness definition. Retrieved on July 30, 2009 from: http://www.mariosalexandrou.com/definition/ebusiness.asp
Chaffey, D.(2009). E-marketing. Retrieved July 30, 2009 from: http://www.davechaffey.com/E-marketing-Glossary/Performance-metrics.htm
Digital Smith.(2005). E-commerce definition. Retrieved July 30, 2009 from: http://www.digitsmith.com/ecommerce-definition.html
Knox, I.(2009). E-marketing. Powerpoint presentation
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