Marketing the e-business

368 Pages·2002·1.515 MB·English

by  Harris, Lisa

1111 Marketing the e-Business
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As effective marketing becomes increasingly tied up with the Internet and other elec-
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tronic media, making the most of the Internet and other new technologies is key to
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a company’s success – from the brand image portrayed on its Web site to the devel-
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opment, maintenance and enhancement of customer relationships.
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But since the much-hyped dotcom crash, treading the e-Business path can be
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daunting. In these increasingly uncertain and cynical times, Marketing the e-Business
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unpicks the challenges of e-Marketing for many types of business. It uses topical case
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studies and accompanying Web material to provide an up-to-date study of effective
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marketing strategies, for example:
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(cid:2) Multi-channel marketing
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(cid:2) Change management
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(cid:2) Lessons learned from the dotcom crash
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(cid:2) Branding, e-Retail and relationship-building
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(cid:2) Digital divides, privacy and data security
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Providing a new approach to the subject matter, this book analyses the benefits of e-
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Marketing as a tool for improving efficiency and effectiveness rather than for business
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revolution. Considering the practicalities of marketing in an e-Business context, it is
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the first book of its kind to voice such a rigorous argument for the importance of e-
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Marketing, and is a crucial text for anyone studying or practising e-Business in the
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real bricks ’n’ clicks world.
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Lisa Harris is a Chartered Marketer and lecturer in Marketing at Brunel University.
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She is founder of the University’s e-Commerce Research Group and is Course Director
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for the B.Sc in e-Commerce.
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Charles Dennis is a Chartered Marketer and lectures in Marketing and Retail
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Management at Brunel University. Internationally published, he is currently researching
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e-Retailing.
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Routledge e-Business series
Routledge e-Business is a bold new series examining key aspects of the e-Business
world, designed to provide students and academics with a more structured learning
resource. Introducing issues of marketing, Human Resource Management, ethics, oper-
ations management, law, design, computing and the e-Business environment, it offers a
broad overview of key e-Business issues from both managerial and technical perspec-
tives.
Marketing the e-Business
Lisa Harris and Charles Dennis
e-Business Fundamentals
Edited by Paul Jackson
e-Retailing
Charles Dennis, Bill Merrilees and Tino French
Marketing the
e-Business
Lisa Harris and
Charles Dennis
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Taylor&Francis Group LondonandNew York
First published 2002 by Routledge
11 New Fetter Lane, London EC4P 4EE
Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York NY 10001
Routledge is an imprint of the Taylor & Francis Group
This edition published in the Taylor & Francis e-Library, 2004.
© 2002 Lisa Harris and Charles Dennis
All rights reserved. No part of this book may be reprinted or
reproduced or utilized in any form or by any electronic,
mechanical, or other means, now known or hereafter invented,
including photocopying and recording, or in any information
storage or retrieval system, without permission in writing from
the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British
Library
Library of Congress Cataloging in Publication Data
A catalog record for this book has been requested
ISBN 0-203-16696-5 Master e-book ISBN
ISBN 0-203-26173-9 (Adobe eReader Format)
ISBN 0–415–25600–3 (hbk)
ISBN 0–415–25601–1 (pbk)
Every effort has been made to contact copyright holders for their permission to
reprint material in this book. The publishers would be grateful to hear from any
copyright holder who is not here acknowledged and will undertake to rectify errors
or omissions in future editions of the book.
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Contents
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3111 List of illustrations vi
4 List of contributors viii
5 Acknowledgements ix
6 List of abbreviations x
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8 Introduction 1
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1 History, definitions and frameworks 7
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1 2 Marketing research 35
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3 Change management 68
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4 Strategy 94
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5 5 Branding 130
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6 Relationship marketing 155
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8 7 Multi-channel marketing 189
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8 The marketing mix 219
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1 9 e-Retailing 242
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10 Marketing planning 268
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11 Legal, ethical and public policy issues 295
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5 Conclusion 328
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7 Glossary 330
8 References 336
9 Index 345
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Illustrations
FIGURES
1.1 The relationship between business to business (B2B) and business
to consumer (B2C) 20
2.1 The research process 39
2.2 ‘Getting beneath the surface’ 41
2.3 Online surveys 50
2.4 Displaying research results to build trust 50
2.5 Southwest Airlines’ Web site 53
2.6 Web site of DoubleClick 61
3.1 Moving to e-Business 71
3.2 Assessing the extent to which employees may resist change 76
4.1 Internal marketing planning model 97
4.2 Progressive transformation from ‘bricks’ to ‘clicks’, and structural
alternatives for ‘clicks and mortar’ organizations 100
4.3 The seamless company 107
4.4 The e-Business ladder 109
4.5 Business to business: the next wave of the information revolution? 121
4.6 Percentage of Internet users visiting banking sites 123
5.1 The benefits of branding to different stakeholder groups 134
5.2 The relationship between profitability and market share 135
5.3 Brand strategies on the Internet 146
6.1 The relationship marketing ladder of customer loyalty 162
6.2 Organizing for email marketing 177
6.3 Reactions to permission marketing as compared with those to spam 178
7.1 The evolution of interactive marketing 191
7.2 Mobile v. PC Internet access: worldwide trends 192
7.3 Growth of various means of accessing the Internet 196
7.4 Projected European mobile advertising spend 197
7.5 Internet access mechanisms by social group 203
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ILLUSTRATIONS
1111 7.6 Market penetration of Internet access mechanisms 207
2 7.7 The new economy is powered by connectivity 209
3 9.1 Why Internet-connected customers do not e-Shop 246
4 9.2 Comparing ratings: the Internet versus a west London shopping
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6 9.3 Growth of online shopping: surveys for 1997 to 2001, forecasts
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8 9.4 e-Retailing as a percentage of total shopping in the UK 257
9 9.5 What e-Shoppers buy 257
1011 9.6 What m-Shoppers buy 262
1 10.1 The relationship between different aspects of a company’s
2 environment 272
3111 11.1 United Airlines’ home page 298
4 11.2 The www.untied.com ‘vigilante’ site 299
5 11.3 Using technology to help the hungry 314
6 11.4 Net Nanny allows parents to control what their children see and
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TABLES
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1 1.1 Internet penetration by country 13
2 1.2 Zwass’s hierarchical framework for e-Commerce 18
3 1.3 Online business model typology 22
4 2.1 ‘Exposing the myths of online buyer behaviour’ by Accenture 63
5 4.1 Impact of the Internet on Porter’s Five Forces 105
6 5.1 Brand league table 136
7 5.2 The scope of branding 137
8 5.3 Brand logos 139
9 6.1 Transaction marketing versus relationship marketing 163
30111 9.1 Sample products with likely high electronic shopping potential scores 251
1 10.1 Customer analysis 274
2 10.2 SWOT analysis for W. H. Smith 281
3 10.3 Marketing mix for River Island 285
4 10.4 Summary audit for Yuri’s Toys 286
5 10.5 Marketing mix for Yuri’s Toys 287
6 11.1 Attitudes towards social responsibility 319
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Contributors
LISA HARRIS ACIB, Dip.M., MCIM, MBA, Ph.D., Chartered Marketer
Dr Lisa Harris is a lecturer in Brunel University’s School of Business and Management, and
Course Director of the e-Commerce B.Sc. She worked in the banking industry for ten years
and her Ph.D. research examined the management of change in the banking industry in the
early days of the Internet. Lisa is currently running a research project reviewing emerging
trends in the ethics of e-Commerce. She is a Chartered Marketer, Education Officer for the
Royal Counties branch of the Chartered Institute of Marketing, and teaches Marketing
courses for the Student Support Group and Oxford College of Marketing.
CHARLES DENNIS Dip.D.M., DMS, Ph.D., C.Eng., M.I.Chem.E., MCIM
Dr Charles Dennis is a Chartered Marketer and a lecturer in Marketing and Retail
Management at Brunel University, London, where he co-ordinates the ‘Marketing’
pathway of the University’s B.Sc. (Business and Management) degree. Originally a
Chartered Chemical Engineer, he spent some years in engineering and technical posts,
latterly with a ‘marketing’ emphasis. The industrial experience was followed by seven
years with ‘Marketing Methods’, as an Institute of Marketing-approved consultant. He
has been full time in the current post since 1993. Charles has published internationally
on consumer shopping behaviour and is now researching e-Shopping and e-Retailing.
GERALDINE COHEN Dipl.Ing., MBA (INSEAD), MCIM, Chartered Marketer
Geraldine has more than twenty-five years of international business and marketing expe-
rience acquired at Fairchild Semiconductors in Germany, Cummins Engine Company in
the USA, and Rank Xerox and ECI Ventures in the UK. In the 1980s and part of the
1990s, she ran her own marketing consultancy, advising industrial and commercial clients
as well as non-profit organizations. Geraldine has a Diplôme Ingénieur degree in Electrical
and Electronic Engineering and an MBA from INSEAD, France. She is a member of the
Chartered Institute of Marketing and has been a Chartered Marketer since 1998. She has
been a non-executive director of Mount Vernon and Watford NHS Trust, as well as
Trust Convenor, and has chaired a number of trust management committees. Geraldine
has been teaching at the Brunel School of Business and Management since 1998.
Geraldine’s current research interests lie in the areas of marketing for professional services
and corporate branding.
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Acknowledgements
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111 The authors would like to thank the following individuals for their invaluable
support, examples, explanations, patience and encouragement throughout this
project:
■ Stuart Newstead, General Manager, Business Partners, O2 (UK) Ltd
■ Paul McAleese, Global Commercial Director, Genie Internet
■ Andrew Jones, Managing Director, Aerodeon
0111 ■ Jon Twomey, Director, Student Support Group
■ Chris Barker, Head of Fixed Income e-Commerce, BNP Paribas, London
■ Rosie Phipps, Principal, Oxford College of Marketing
■ Dr Leslie Budd, Open University Business School
Thanks are also due to a number of staff and students of Brunel University:
■ Dr Laura Spence º■ Simran Grewal
■ Lefki Papacharalambou ■ Christine Chazakis
■ Yuri Gandamihardja ■ Laura Pegg
0111 ■ Tamira King ■ David McLaverty
■ Glen Freeman ■ Gurpal Dhensa
■ Alaina Dixon ■ Ketan Makwana
■ Alan McGuinness ■ Craig Martin
■ Balraj Sandhu ■ Spencer Tarring
Particular votes of thanks must go to Simran Grewal for some excellent
diagrams, to Chris Barker for his diverting emails and to George the Dog for
keeping us all sane!
Lisa Harris and Charles Dennis,
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February 2002
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