Wednesday, October 10, 2007

Sibtain Ali
ID # 2A7202
The Internet is an enabling technology, creating value innovations it has allowed companies to affect both their demand and costs at the same time. In my research I divided the “Impact of Internet on E-Marketing strategy” in to two perspectives.
1. Macro Perspective
2. Micro Perspective

1. Macro perspective

1.1 Organizational Issues
Sharma and Sheth propose that organizations need to change their focus from “supplier perspective” to “customer perspective.” In order to succeed, companies will have to be more concerned with better responding to customer demand. With customers as starting point, organizations will seek relationship with financially and strategically sound customers. Also, the Internet will blur the distinctions between advertising, personals selling and distribution. Successful companies will adopt a more integrated view of the e-marketing function, translating into new organizational designs. New forms of organization will come into being and much research is needed to understand the organizational evolution.

1.2 Strategic alliances
To put it simply, organizations not only have to integrate functions within their organization, but also need to develop strategic alliances to survive in this uncertain global business environment. Internet alliances allow an organization to offer an infinite array of products and value-added service at lower levels of investment and risk. Alliances add value by deepening product/service offerings, gaining channel access, gaining access to partner's customer base and gaining access to technology and e-marketing services.

1.3 Privacy issues at the societal level
Langenderfer and Cook argue that a national agency regulating privacy concerns would benefit both consumers and businesses by creating a predictable legal environment. Langenderfer and Cook advocate quasi-public regulation at the federal level. Whatever the requirement of today's laws, the message is loud and clear: companies must undertake appropriate measures to protect data privacy in order to attract consumers to the online environment.

2. Micro Perspective

2.1 Typologies of e-shoppers
The typology of online shoppers may change as more consumers adopt the online environment. Consumers will be drawn to the online environment, as more “brick and click” types enter this market. Bricks and clicks offer the convenience of online ordering and receiving goods in a relatively short period of time from the store nearby with added convenience of returning items to any store. Such value enhancement may change the shopping typologies and therefore deserve some attention. Britain's Tesco.com is a good example. Tesco delivers online orders from nearby neighborhood Tesco stores using only few trucks per store. Tesco delivers from nearly 250 stores and it is within a half-hour reach of 91% of the British population. With around 3.7 million orders per year, Tesco's online sales were around 450 million with a net margin of more than 5%.

2.2 Heuristics used in the search process
Reliance on hotlists shortens the search process and therefore hotlists positively affect the likelihood of visiting a website. More research is needed to understand consumer search for products and services in an online environment and the heuristics that guide decision-making in that environment.

2.3 Web design
Rosen and Purinton, based on research, recommends that web designers should integrate minimalism, appeal, access, fast loading and distinctiveness into their websites in order to be more effective. Dailey, in a related research on web design, found that restrictive navigational cues act as barriers that threaten consumers' control over web navigation which, in turn, arouses psychological reactance and leads to negative consequences for the web marketer.

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