MAR 4933001

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MAR 4933-001

• E-Commerce Marketing
• Summer 2003
• Communication and PromotionWrap-Up
• Rich Gonzalez
• University of South Florida
• July 15, 2003

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URLs

• www.ml.com/woml/forum/ecommerce1.htm
• www.theacsi.org

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Agenda July 15, 2003

• Web Site/Biz Model EvalautionFinal Thoughts
• WAP 5 Discussion
• Trust--Fukuyama
• Usenet Conversations, Trust, Word of Net
• Promotion
• Due For July 17

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Web Site/Biz Model Evaluation

• PresentationNotes of Specific Points
  CoveredOpinionsOther Comments
• Grade 50 Pts. Max

• Written ReportNotes of Specific Points
  CoveredOpinionsOther Comments
• Grade 50 Pts. Max

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Web Site/Biz Model Evaluation

• Items Missed
• Business Model
• FormatBulletsLength
• Critique Framework Nielsen Tahir

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For Today July 15

• Analysis Paper 5Usenet and Consumer
  Information
• Chapter 7 E-Business Promotion
• Dr. Francis Fukuyama The Virtual Handshake
  E-Commerce and the Challenge of Trust, The
  Merrill Lynch Forumwww.ml.com/woml/forum/ecommer
  ce1.htm

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Trust

• Trust is defined as a willingness to rely on an
  exchange partner in whom one has confidence.
• Trust exists when one party has confidence in
  an exchange partner's reliability and integrity.
• Commitment and Trust lead directly to
  cooperative behaviors that are conducive to
  relationship marketing success.

Moorman, et al., 1993 Morgan Hunt, 1994
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Trust

• Security
• Loyalty
• Easier Decisions
• Ease of Mind
• Confidence
• Relationship
• Competitive Advantage

Class Exercise
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E-Commerce and the Challenge of Trust

• Technology and Trust
• Brands and Social Networks
• Trust Is Not Security
• Why Important?
• Human Relations Productive Relationships

• www.ml.com/woml/forum/ecommerce1.htm

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E-Commerce and the Challenge of Trust

• Technology and Trust
• Brands and Social Networks
• Trust Is Not Security
• Why Important?
• Human Relations Productive Relationships

• Brand Trust
• Information
• Fukuyama Internet Trust Brokers
• Digital networks reside on top of social
  networks.
• Lack of trust hinders digital commerce.

• www.ml.com/woml/forum/ecommerce1.htm

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Strategic Electronic Marketing, Kleindl

• 1 Introduction to E-Business
• 2 Skim
• 3 E-Business Communication
• 4 E-Business Distribution Systems and SCM
• 5 E-Business Value Strategies
• 6 E-Commerce
• 7 E-Business Promotion

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Final ExamJuly 17, 2003

• Part 1SUBJECTIVE
• 2 Essay Questions
• Based on readings, text, discussions and papers

• Part 2OBJECTIVE
• 30 QuestionsMC, FIB, T/F
• Based on same

2 Questions Released Today July 10
Here at 330 PM Scantron
Grades by 900 AM On Thursday, July 24
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WAP 5
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Weekly Analysis Paper 5

• Usenet
• Based on our discussion and demo of
  rec.autos.makers.chrysler and the other service
  newsgroup, accessible via Google Groups
• Pick a product or service that you are interested
  in as a consumer
• Find a thread (conversation) about that product
  or service and participate in it, by posting. One
  way to do this is by STARTING a thread.
• Deliverable (Due July 15)
• 1.5 pages, single spaced, bolded headings, cover
  sheet
• Newsgroup Name and description
• As a Consumer What DID YOU Learn About the
  Product?
• As a Marketer What Are Some Implications of this
  Thread?
• Word of Net vs. Word of Mouth
• Also include copy of the thread posts and the
  chronological summary

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Online Consumer BehaviorText Exchange Spaces

• rec.autos.4x4
• rec.radio.broadcasting
• rec.autos.makers.ford.explorer
• rec.food.equipment
• rec.scuba
• rec.sport.golf
• rec.sport.triathlon
• rec.boats.paddle
• alt.fashion
• alt.auto.mercedes
• comp.sys.laptops
• rec.gambling.poker

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Information-Enabled Consumer

• Customers will become more efficient in CDP
• Better information, less effort
• Information Constraints Removed
• Information Overload a Danger

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Consumer Decision Process

• ProblemInfo-SeekingEvaluationPurchaseUse
• Search Internal and External
• Price, Attributes....and External Information

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Word of Net

• Information, knowledge, influence, and emotion in
  primarily text based online discussion spaces,
  pertinent to consumer products and services.
• Such exchanges affect the consumer decision
  process

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What Did You Learn About the Product?

• Dodge Trucks 5.2 or 4.7 both get bad mileage
• XM Radio is a hybrid satellite-terrestrial system
• Entertainment Software Rating Board tones down
  video games in U.S. (language, sex, violence)
• PowerBook T4sLots of people like Unix

Class Exercise
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Marketing Implications

• Everybody can know about the lousy mileage of the
  Dodge Ram 1500, more specifically
• Catch 22 Contributors all have
  opinions/facts--Marketers have truth or
  BiasMarketers have to get involved.
• PricingAffected In Many Ways

Class Exercise
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WOM vs. WON

• WON is far more effective
• Sphere of influence is widermore perfect
  information is attainable/feasible
• WON stays more originaltruer to original
  utterance
• Asynchronous
• WON may lack trust compared to WOM

Class Exercise
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Stewart Brand

• Information wants to be free.

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Word of Net vs. Word of Mouth

• WON diff from WOM, trust factor
• WON is more directly applicable to questions
• No body language in WON
• WON text is documented
• WON audience is global,huge
• Asynchronous
• Archivable and Searchable

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Describe, Categorize Interpret

• Content of Threads
• Problem Solving Stage
• Type of Poster
• Types of Questions Answers
• Context of Threads
• Type of External Information Source

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Entry Point
Seek More Knowledge
Determine Objective i.e.,Better Vision
(Surgery)Support (Facts)
Report Results To Group
Intention About Surgery
Online Community Focused Learning Process
Locate Newsgroup-(Discussion)
Develop Competence
Compose Question
Participant Benefits Current Information
Informed Opinion Hardware Details Research
Directions
Negotiate Inquiry
Framework PCK and Purchase Decision
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Promotion
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Advertising

• 6 B in 2002
• PreviouslyMost Ads Were Online Companies
• NowTop 100 Traditional Advertisers Do 30 of Ads
• Ford, Disney, Hertz, Daimler Chrysler...
• 1.2 B Impressions of SUVs 1Q03
• 11 of Top Ads Use Flash Technology

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What Is Promotion?

• Promotion is a communication process consisting
  of advertising, publicity, sales promotion, and
  salesmanship.

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The AIDA model

• AIDA model is a framework for understanding how
  hypermedia can be used to reach promotional
  goals.
• The AIDA process indicates that
• First the attention of the target audience must
  be gained
• Then interest created in the product or service
• Desire generated
• Action taken by the targeted audience.
• The AIDA process is based on attitude models in
  which
• The audience first thinks about an object
  (cognition)
• Develops feelings (affect)
• Engages in some type of behavior (conation).

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Gaining Attention

• Traditional media gain attention by designing
  messages with enough impact to gain and hold the
  audience or the message can be repeated numerous
  times.
• A Web site differs from traditional media in that
  the receiver must actually use the Internet to
  link to Web page content.
• An individual will not be exposed to the message
  unless they participate in some active measure to
  view a Web site.

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Key Attributes of Successful Web Sites
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Rest of Chapter 7

• On Your Own

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10 Weeks Is Not Enough Time

• But Thats All We Had
• Good Luck to All, Have a Great Summer
• Congrats to the Grads

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End