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