CHAPTER 2!

Strategic Planning – The Managerial process of developing and maintaining a viable fit between the organization’s objectives, skills, and resources and its changing market opportunities. (Kotler and Keller 2006)

Part of this is to identify the firm’s goals – growth, competitive position, geographic scope, etc.

Performance Metrics – Specific measures designed to evaluate the effectiveness and efficiency of the e-business and e-marketing operations.

Strategy – Means to achieve a goal.

E-business strategy – The deployment of enterprise resources to capitalize on technologies for reaching specified objectives that ultimately improve performance and create sustainable competitive advantage.

E-marketing strategy – the design of marketing strategy that capitalizes on the organization’s electronic or information technology capabilities to reach specified objectives; the combination of technology and marketing strategy.

Business model – A method by which the organization sustains itself in the long term and includes its value proposition for partners and customers as well as its revenue streams.

Critical components to appraise a business model – Customer value, scope, price, revenue sources, connected activities, implementation, capabilities, sustainability.

E-business Model – A method by which the organization sustains itself in the long term using information technology.

Marketing concept – Social and economic justification of an organization is the satisfaction of customer wants and needs while meeting organizational objectives.

Organizations should ask these questions prior to embarking on any e-business strategy – 1. Are the business models likely to change in my industry? 2. What does the answer to question 1 mean to my company? 3. When do I need to be ready? 4. How do I get there from here?

Pure Play – Dot-com, Amazon, Myspace – Online businesses that do not have any sort of brick and mortar presence.

Enterprise – Online and offline, Dell, most retailers. E-Commerce – online transactions, either in a single sale or in a subscription format. Virtual worlds – subscription based “avatar” like thing, re: Second Life, WoW. Direct Distribution – basically what the name says. Content sponsorship – e-commerce in which companies sell ads either on their site or through email. Portal – point of entry to the internet; Yahoo, AOL. Social Networking – I hope you guys all know what these are. Online brokers – intermediaries who assist in purchase negotiations without actually representing buyers or sellers, such as E*Trade. Different types of online agents: selling, manufacturing, purchasing, shopping, and reverse auction agents.

Business Process – Customer Relationship Management – retaining and growing business and individual customers through strategies that ensure their satisfaction with the firm and its products. Knowledge management – combination of a firm’s database, the technology used to create the system, and the transformation of data into useful info and knowledge. Supply chain management – coordination of the distribution channel to deliver products more effectively and efficiently to customers. Community building - the use of websites to draw groups of special interest users. Affiliate programs – when firms put a link to someone else’s retail website and earn a commission on all purchases by referred customers. Database marketing – collecting, analyzing, and disseminating electronic information about customers, prospects, and products to increase profits. Enterprise resource planning (ERP) – back-office system for order entry, purchasing, invoicing, and inventory control. Mass customization – Internet’s unique ability to customize marketing mixes electronically and automatically to the individual level.

Activity – Email, Blog. Types of E-Business models - Online purchasing, order processing, e-mail, content publishing, business intelligence, online advertising and PR, online sales promotions, pricing strategies.

Performance metrics to come shortly!