Principles of marketing: Lecture 42

MGT301
Principles of Marketing
Lecture­42


Summary
of  
Lecture­41


Global Marketing


Global Marketplace


Looking
Lookingat
atthe
theglobal
globalmarketing
marketing
environment
environment
Deciding
Decidingwhether
whetherto
togo
gointernational
international
Deciding

Decidingwhich
whichmarkets
marketsto
toenter
enter
Deciding
Decidinghow
howto
toenter
enterthe
themarket
market
Deciding
Decidingon
onthe
theglobal
globalmarketing
marketing
program
program
Deciding
Decidingon
onthe
theglobal
globalmarketing
marketing
organization
organization

Think Globally Act Locally


Today’s Topics
E­Marketing
Internet marketing


e­Marketing


Internet Marketing


The Birth of the Internet
•

Internet was used for the first time in 1982.

•

It began to expand in 1991 with the World Wide Web.

•

Internet technologies pose managerial implications to 
business.

•

Students must learn how technology affects business 
operations.



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”


•

New Types of Intermediaries
– Brick­and­mortar firms often face disintermediation 
from click­only competitors
– The click­and­mortar business model has been 
highly successful


The Role of the Internet in Marketing

The Role of the Internet in Marketing






The fastest growing communications 
technology.
Within the first five years, 50 million people were 
connected.
Capable of interactively sharing information in 
real time. 


New Tool to Reach Consumer


Internet
Internet

Telephone
Telephone

Radio

Postal
Postal Service
Service

Television


The Internet Presence
Engage
Engagein
ininteractive,
interactive, personalized
personalized communications
communications
E-mail
E-mail

Web
WebSites
Sites

On-line
On-line
Banner
Banner Ads
Ads

Virtual
Virtualstorefronts
storefrontsand
and inventory
inventory systems
systems
Reduces

Reduces
Inventory
Inventory

Lower
Lower storage
storage
costs
costs

Easy
Easyaccess
accessto
to
delivery
deliveryinfo
info


Internet Demographics and 
Trends
Attitude toward technology

Factors
Influencing
On-Line
Buying
Behaviour

Income

Motivation to use
Technology


Electronic Commerce 


retailer / manufacturer

Financial Institution
internet

consumer


Definitions
•

E­ Commerce

•

E­Marketing

•

E­Business

E­Commerce
 The process of conducting business 
transactions over electronic networks, 
mostly the Internet


E­Marketing
The process of utilizing Information Technology in the 
conception, distribution, promotion, and pricing of 
goods, services, and ideas to create exchanges that 
satisfy individual and organizational objectives


E­Business
 The use of Information Technology in all business 
tasks including production, marketing, accounting, 
finance, and human resources management