Review Question!!!!!!!!!!!!!!!!

1.Define e-business and e-marketing.

E-Marketing is the application of a broad range of information technologies for:

Transforming marketing strategies to create more customer value (more effective segmentation,

targeting, differentiation, and positioning strategies), More efficiently planning and executing the

conception, distribution, promotion and pricing of goods, services, and ideas, Creating exchanges that satisfy individual consumer and organizational customers’ objectives.

Alternative definition:

E-marketing is the result of information technology applied to traditional marketing.

E-business “is the continuous optimization of a firm’s business activities through digital technology

.

2.What are performance metrics and why are they important?

A performance metric is a measure of an organization's activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees. While traditionally many metrics are financed based, inwardly focusing on the performance of the organization, metrics may also focus on the performance against customer requirements and value. In project management, performance metrics are used to assess the health of the project and consist of the measuring of six criteria: time, cost, resources, scope, quality, and actions.

Developing performance metrics usually follows a process of:

1. Establishing critical processes/customer requirements,
2. Developing measures,
3. Establishing targets which the results can be scored against.

A criticism of performance metrics is that when the value of information is computed using mathematical methods, it shows that even performance metrics professionals choose measures that have little value. This is referred to as the "measurement inversion". For example, metrics seem to emphasize what organizations find immediately measurable — even if those are low value — and tend to ignore high value measurements simply because they seem harder to measure (whether they are or not).

To correct for the measurement inversion other methods, like applied information economics, introduce the "value of information analysis" step in the process so that metrics focus on high-value measures. Organizations where this has been applied find that they define completely different metrics than they otherwise would have and, often, fewer metrics.
There are a variety of ways in which organizations may react to results. This may be to trigger specific activity relating to performance (i.e., an improvement plan) or to use the data merely for statistical information. Often closely tied in with outputs, performance metrics should usually encourage improvement, effectiveness and appropriate levels of control.
Performance metrics are often linked in with corporate strategy and are often derived in order to measure performance against a critical success factor.

3.What are some of the key legal issues that affect e-marketing?

Privacy: Difficult to legislate + Critical because consumers yield personal information over the

Internet

Opt-out e-mail: when users must uncheck a Web page box to avoid being put on a company’s e-mail list,

Difficult for governments to balance freedom of expression against consumer needs,

New technology brings new opportunities for fraud:enforcement is difficult in a networked world.

4.How does technology both raise and lower costs for companies?

E-marketing is evolving through software advances: Technologies can target consumers
according to their online behavior to give a firm a distinct competitive advantage.

Technology lowers costs: Many firms have saved money on staff and paperwork via electronic order processing, billing, and e-mail.

Technology requires costly investments:

Web page development costs millions of dollars, E-commerce operations require expensive hardware and software,

New technologies continue to emerge, which make current investments obsolete,

Putting technology to use entails a steep learning curve.

5.As a technology.how does the Internet compare with the telephone?

The Internet is a global network of interconnected networks:

Millions of corporate, government, organizational, and private networks,

The Internet consists of computers with data, users who send and receive the data files, and a technology infrastructure to move, create, and view or listen to the content.

6.What are some of the marketing implications of Internet technologies?

Internet technologies have changed traditional marketing in a number of critical ways:

Power shift from sellers to buyers,
Death of distance,
Time compression,
Knowledge management is key,
Interdisciplinary focus,

Intellectual capital rules.

7.What are the 3 main markets of e-business,and how do they differ?

There are three important markets that both sell and buy to each other:

Businesses,

Consumers,

Governments

8.In the context of e-marketing,what does ''revenge of the consumer'' mean?

The rebellion started with television channel surfing using the remote control. Consumers did not seem to appreciate that commercials pay for broadcast TV programs. At the start of the 21st century, consumers have control via the mouse. When television, radio, print media, entertainment, and shopping all converge seamlessly on a computer-like device, consumers will truly have information on demand.

Consumers are more demanding and more sophisticated, and marketers will have to become better at delivering customer value.