Marketing Management

Marketing Management. Welcome to.

Course Learning Outcomes. By the end of this course, you will be able to: Understanding Marketing Fundamentals: Students will demonstrate a comprehensive understanding of marketing concepts, including its definition, scope, historical evolution, and the distinction between marketing and selling. Analyzing Market Environment: Students will be able to analyze microenvironment and macroenvironment factors that influence marketing decisions, employing tools such as SWOT analysis and PESTEL analysis to assess internal and external business environments. Exploring Consumer Behavior: Students will gain insights into consumer behavior, including cultural, social, personal, and psychological factors that impact purchasing decisions. They will also comprehend the buyer decision process, segmentation, targeting, and positioning concepts. Managing Products and Brands: Students will learn to classify and manage products based on their life cycle stages, understand the new product development process, and recognize the significance of branding, brand equity, and brand loyalty in modern marketing strategies. Navigating E-Business Strategies: Students will grasp the fundamentals of e-business and e-commerce, explore online business models, formulate e-business strategies, and comprehend the legal and ethical considerations associated with e-business practices..

Welcome to Module 9. After the end of this Module 9 E-Business Strategy, you will learn about • Definition and scope of e-business and e-commerce • Online business models (B2B, B2C, C2C, C2B) • Formulating e-business strategies (marketplace selection, competitive positioning, value proposition) • Legal and ethical considerations in e-business (privacy, security, intellectual property).

E-Business Strategy. E-business strategy refers to a comprehensive plan that outlines how a business will leverage digital technologies and the internet to achieve its objectives and gain a competitive advantage. It encompasses a range of activities, including online marketing, sales, customer service, and transaction processing. A successful e-business strategy involves identifying target markets, selecting appropriate online business models (such as B2B, B2C, C2C, or C2B), and formulating strategies for marketplace selection, competitive positioning, and value proposition. Additionally, it requires careful consideration of legal and ethical considerations in the digital realm, including privacy, security, and intellectual property protection. By aligning business goals with the capabilities and opportunities provided by digital platforms, an effective e-business strategy can lead to increased market reach, improved customer engagement, streamlined operations, and enhanced profitability in the evolving landscape of electronic commerce..

Let’s start with 9.1 Definition and scope of e-business and e-commerce.

Scope of E-Business: E-business extends beyond the realms of commerce and sales. It encompasses the digital transformation of various business processes, including: 1. Supply Chain Management: E-business enables the optimization of supply chain processes through digital technologies, enhancing coordination among suppliers, manufacturers, distributors, and retailers. This leads to reduced costs, improved inventory management, and quicker order fulfillment. 2. Customer Relationship Management (CRM): E-business facilitates personalized customer interactions and relationship management. Companies use CRM systems to analyze customer data, improve engagement, and tailor their offerings to individual preferences. 3. Human Resources: Online platforms are utilized for recruitment, employee training, performance management, and payroll processing. E-business streamlines HR operations, ensuring efficient personnel management. 4. Financial Transactions: Digital payment systems and online banking enable secure and convenient financial transactions for both businesses and customers. E-business ensures swift and hassle-free financial operations. 5. Marketing and Advertising: E-business plays a pivotal role in digital marketing efforts, including email marketing, social media advertising, search engine optimization (SEO), and content marketing. It allows companies to reach wider audiences, target specific demographics, and measure campaign effectiveness..

Scope of E-Commerce: E-commerce focuses primarily on online buying and selling activities: 1. B2B (Business-to-Business): In this model, businesses trade goods and services with other businesses. E-commerce streamlines B2B transactions, providing a platform for procurement, negotiation, and collaboration. 2. B2C (Business-to-Consumer): B2C e-commerce involves businesses selling products directly to consumers. Online shopping platforms and e-commerce websites make it convenient for customers to browse catalogs, make purchases, and have products delivered to their doorstep. 3. C2C (Consumer-to-Consumer): Online platforms enable individuals to sell products directly to other consumers. This model is prevalent in online marketplaces where users can list items for sale and engage in peer-to-peer transactions. 4. C2B (Consumer-to-Business): This emerging model involves individuals offering products or services to businesses. For example, freelance platforms allow individuals to offer their skills and services to companies seeking specific expertise..

Moving on to 9.2 Online business models. 1. Business-to-Consumer (B2C): B2C e-commerce involves businesses selling products and services directly to individual consumers. It has transformed the retail industry by eliminating geographical constraints and offering customers the convenience of shopping from their homes. Examples include: • Amazon: The global e-commerce giant allows customers to purchase a wide range of products, from electronics to clothing, with doorstep delivery. • Zappos: Specializing in footwear and apparel, Zappos offers a user-friendly online platform for customers to shop for trendy fashion items. 2. Business-to-Business (B2B): B2B e-commerce facilitates transactions between businesses, streamlining procurement processes and enabling efficient supply chain management. Examples include: • Alibaba: This platform connects global suppliers and manufacturers with businesses seeking bulk purchases of goods and materials. • Cisco: The technology company provides networking and communication solutions to other businesses through its online portal..

3. Consumer-to-Consumer (C2C): C2C platforms enable individuals to buy and sell products directly to other consumers. These platforms have democratized commerce and transformed the way people exchange goods. Examples include: • eBay: As a pioneer in the C2C space, eBay enables users to auction or list items for sale, creating a dynamic marketplace. • Airbnb: The platform allows individuals to rent out their properties to travelers, creating a new revenue stream for homeowners and offering unique accommodation options. 4. Consumer-to-Business (C2B): In this model, individual consumers offer their products or services to businesses, reversing the traditional buyer-seller relationship. Examples include: • Freelance Platforms: Websites like Upwork and Freelancer allow individuals to offer their skills and expertise to businesses seeking specific services. • User-Generated Content Platforms: Social media influencers and content creators collaborate with businesses to promote products and services, bridging the gap between consumers and brands..

5. Subscription-Based Models: Subscription-based models offer consumers ongoing access to products or services for a recurring fee. These models enhance customer loyalty and predictability for businesses. Examples include: • Netflix: The streaming giant provides subscribers with access to a vast library of movies and TV shows for a monthly fee. • HelloFresh: The meal kit delivery service sends subscribers pre-portioned ingredients and recipes on a regular basis. 6. Peer-to-Peer (P2P) Marketplaces: P2P platforms facilitate direct transactions between individuals, often eliminating intermediaries and connecting people with shared interests. Examples include: • Uber: The ride-hailing service connects passengers with drivers, offering an alternative to traditional taxis. • Etsy: This platform enables artisans and crafters to sell their unique handmade products directly to buyers. 7. Direct-to-Consumer (D2C): D2C models involve brands selling their products directly to consumers, bypassing traditional retail channels. This approach allows for better control over branding and customer experience. Examples include: • Warby Parker: The eyewear company designs and sells glasses directly to customers, cutting out middlemen and offering competitive prices. • Casper: This mattress company sells its products exclusively online, focusing on providing high-quality mattresses directly to consumers' homes..

Continuing to 9.3 Formulating e-business strategies.

3. Value Proposition: An effective value proposition communicates the benefits customers will gain from a product or service. It's essential to address pain points and showcase how the offering addresses specific customer needs. Examples include: • Netflix: Netflix's value proposition centers on providing unlimited access to a vast library of entertainment content, allowing users to watch what they want, when they want. • Uber: Uber's value proposition revolves around convenient and affordable transportation, enabling users to book rides with ease. 4. Customer Engagement and Experience: Creating a seamless and user-friendly online experience is crucial for customer satisfaction and retention. This involves optimizing website design, navigation, and customer service channels. Examples include: • Zappos: The online shoe retailer is renowned for exceptional customer service, offering free shipping and easy returns to provide a hassle-free shopping experience. • Airbnb: Airbnb's platform allows users to browse and book accommodations worldwide, offering personalized recommendations and reviews for enhanced user engagement..

5. Integration of Digital Marketing: Digital marketing strategies play a pivotal role in promoting e-businesses. Social media marketing, content creation, search engine optimization (SEO), and email campaigns contribute to visibility and customer acquisition. Examples include: • Coca-Cola: The brand uses social media platforms to engage with customers, sharing interactive content and running campaigns to build a loyal online community. • Dollar Shave Club: The subscription-based company gained traction through a viral video campaign, showcasing its product's unique value proposition and disruptive approach. 6. Data-Driven Insights: Leveraging data analytics provides insights into customer behavior, preferences, and trends. This information guides decision-making and helps refine strategies for better results. Examples include: • Amazon: Amazon's data-driven approach includes personalized recommendations based on past purchases, enhancing user experience and increasing sales. • Google: Google's data analytics tools empower businesses to monitor website performance, user engagement, and marketing effectiveness..

Continuing to 9.4 Legal and ethical considerations in e-business.

3. Online Transactions and Consumer Protection: Ensuring transparency, fairness, and security in online transactions is essential for building consumer trust. Laws like the Consumer Rights Directive regulate e-commerce practices. Examples include: • eBay: eBay enforces buyer and seller protection policies to ensure fair transactions and address issues such as non-delivery or misrepresented items. • Alibaba: The company's platforms include measures like buyer protection and dispute resolution to enhance consumer confidence in cross-border transactions. 4. Truthful and Transparent Marketing: E-businesses must uphold truthfulness and transparency in their marketing efforts to avoid misleading customers. The Federal Trade Commission (FTC) enforces regulations against deceptive advertising. Examples include: • Volkswagen: The company faced legal consequences for deceptive marketing practices related to emission standards, highlighting the need for transparent communication. • ASOS: The online fashion retailer is known for its clear product descriptions, honest sizing information, and user-generated content that accurately represents products..

5. Ethical Use of Emerging Technologies: As technologies like artificial intelligence (AI) and machine learning advance, organizations must ensure their ethical use and minimize biases. Examples include: • Microsoft: Microsoft has adopted ethical principles for AI development, focusing on fairness, transparency, accountability, and inclusiveness. • IBM: The company emphasizes responsible AI use through its AI Ethics Board, ensuring that AI technologies align with ethical guidelines. 6. Social Responsibility and Sustainability: E-businesses are expected to contribute positively to society and the environment. Practices like green e-commerce and ethical sourcing are becoming increasingly important. Examples include: • Patagonia: The outdoor apparel company integrates sustainability into its e-business model, promoting repairability, recycling, and responsible consumption. • Etsy: Etsy showcases its commitment to sustainable practices by highlighting products made from eco-friendly materials and supporting artisans who prioritize ethical production..

Let’s discuss a Case Study on Amazon's E-Business Strategy.

Value Proposition and Customer Engagement: Amazon's customer-centric approach focused on delivering convenience, selection, and competitive prices. The introduction of features like Amazon Prime, which offers fast shipping and exclusive access to entertainment content, further enhanced its value proposition. This strategy not only attracted customers but also encouraged repeat purchases and loyalty. Data-Driven Insights and Personalization: Amazon's sophisticated recommendation system analyzes user behavior to offer personalized product suggestions. This data-driven approach enhances customer experiences and drives cross-selling and upselling. Amazon's "Customers who bought this also bought" feature is a prime example of how data insights shape e-business strategies. Market Disruption and Innovation: Amazon disrupted traditional retail models by introducing innovations like Kindle e-readers, Amazon Web Services (AWS) cloud computing, and Amazon Echo smart speakers. These innovations extended its influence beyond e-commerce, showcasing the power of diversification and innovation within an e-business strategy. Supply Chain Management and Fulfillment: Amazon invested significantly in optimizing its supply chain and fulfillment processes. Initiatives like Amazon Fulfillment Centers and Prime Air drones exemplify its commitment to efficient order processing and timely delivery. This strategy enhances customer satisfaction by reducing delivery times and offering a seamless shopping experience..

Digital Marketing and Customer Engagement: Amazon employs various digital marketing strategies, including targeted ads, email campaigns, and Amazon Advertising services. Its "Customers who viewed this also viewed" and "Frequently bought together" sections encourage additional purchases, contributing to revenue growth. Ethical and Social Responsibility: Amazon emphasizes sustainability through initiatives like its "Amazon Second Chance" program, encouraging customers to recycle electronics responsibly. The company's investment in renewable energy sources for its operations showcases its commitment to environmental responsibility. Legal Considerations: Amazon navigates complex legal considerations related to data privacy, third-party seller agreements, and international regulations. Balancing these legal obligations while delivering a seamless customer experience requires careful strategic planning..

In conclusion, Amazon's success as an e-business can be attributed to its strategic marketplace selection, value proposition, customer engagement, data-driven insights, innovation, supply chain optimization, digital marketing, and commitment to ethics and legality. The case of Amazon highlights the importance of aligning business strategies with changing consumer preferences and emerging technologies. By continually adapting and evolving its e-business strategies, Amazon has set a precedent for how organizations can leverage the digital landscape to not only succeed but also redefine industries and customer expectations..

Glossary of Key Terms- Module 9. 1. E-Business: The use of digital technologies, including the internet, to conduct various business operations, such as marketing, sales, customer service, and transactions. 2. E-Commerce: The online buying and selling of goods and services over the internet. 3. Online Business Models: Structured approaches that guide how businesses operate and generate revenue in the digital environment. 4. B2B (Business-to-Business): E-commerce model involving transactions between businesses, such as suppliers and manufacturers. 5. B2C (Business-to-Consumer): E-commerce model where businesses sell products directly to individual consumers. 6. C2C (Consumer-to-Consumer): E-commerce model enabling individuals to buy and sell products directly to other consumers. 7. C2B (Consumer-to-Business): E-commerce model where individuals offer products or services to businesses..

8. Marketplace Selection: The process of choosing the appropriate online platform for conducting e-commerce activities. 9. Competitive Positioning: Determining a unique position in the market that distinguishes a business from its competitors. 10. Value Proposition: A promise of the value a product or service will deliver to customers, addressing their needs and preferences. 11. Data Privacy: Protection of personal information collected from customers to ensure confidentiality and prevent misuse. 12. Intellectual Property Protection: Safeguarding of creative works and inventions through copyrights, trademarks, and patents. 13. Consumer Rights: Legal provisions that protect consumers in online transactions, ensuring transparency and fair practices..

14. Transparency: Openness and honesty in business practices, particularly in marketing and communication. 15. E-Business Strategy: A comprehensive plan outlining how a business will leverage digital technologies to achieve its goals. 16. Data-Driven Insights: Information obtained through data analysis that informs decision-making and strategy formulation. 17. Innovation: The introduction of new ideas, products, or processes that lead to improvement or transformation. 18. Supply Chain Management: The coordination of activities involved in sourcing, producing, and delivering goods to customers. 19. Digital Marketing: Promoting products or services using digital channels, such as social media, email, and search engines. 20. Ethical Considerations: Factors related to morals and principles that guide business practices and decision-making in e-commerce..

Test your Knowledge, with the following Multiple Choice Questions.

Answer is C) Leveraging digital technologies for business operations.

Question 2) Which e-commerce model involves individuals offering products or services to businesses? A) B2C (Business-to-Consumer) B) C2C (Consumer-to-Consumer) C) B2B (Business-to-Business) D) C2B (Consumer-to-Business).

Answer is D) C2B (Consumer-to-Business).

Question 3) What is a value proposition in e-business? A) A pricing strategy B) A promise of the value a product or service offers to customers C) A legal contract between buyers and sellers D) An e-commerce platform.

Answer is: B) A promise of the value a product or service offers to customers.

Question 4) Which term refers to the protection of personal information collected from customers in e-business? A) Intellectual property protection B) Data privacy C) Consumer rights D) Ethical considerations.

Answer is: B) Data privacy.

Question 5) Which technology company emphasizes responsible AI use through its AI Ethics Board? A) Apple B) Amazon C) Google D) Microsoft.

Answer is: D) Microsoft.

Question 6) What does B2B stand for in e-commerce? A) Buy to Buy B) Business to Business C) Buy to Business D) Business to Buy.

Answer is: B) Business to Business.

Question 7) What is the primary objective of Amazon Prime's fast shipping and exclusive content? A) Reducing customer engagement B) Increasing product prices C) Enhancing customer loyalty D) Reducing product variety.

Answer is: C) Enhancing customer loyalty.

Question 8) Which e-commerce model involves transactions between businesses, such as suppliers and manufacturers? A) B2C (Business-to-Consumer) B) C2C (Consumer-to-Consumer) C) B2B (Business-to-Business) D) C2B (Consumer-to-Business).

Answer is: C) B2B (Business-to-Business).

Question 9) What term refers to the process of choosing the appropriate online platform for conducting e-commerce activities? A) Competitive positioning B) Data privacy C) Marketplace selection D) Value proposition.

Answer is: C) Marketplace selection.

Question 10) Which company is known for its commitment to sustainability through initiatives like "Amazon Second Chance"? A) Alibaba B) eBay C) Patagonia D) Walmart.

Answer is: C) Patagonia.

Assignment Style Question. Situation 1: Sophie is a talented freelance graphic designer with a strong online presence. She has decided to offer her design services to businesses looking to revamp their branding. Which e-commerce model is Sophie adopting, and how can she ensure her offerings are appealing to potential clients while maintaining ethical practices? Situation 2: John is a small business owner who sells handcrafted jewelry. He wants to expand his market reach and has been considering selling his products through online platforms. How can John decide on the most suitable online marketplace for his jewelry business? What e-business strategies should he employ to stand out in a competitive online market while ensuring the protection of his intellectual property?.

End of Module 9. Thank you for watching!.