Week4_EBusinessFunctional Areas-SCM

NPTEL Online Certification Courses

Course Overview

  • Course Title: Business E-Marketing

  • Instructor: Prof. Mamata Jenamani, IIT Kharagpur

Week 4: Lecture Topics

  • Role of the Internet in Marketing

  • Online Customer Model in Marketing

  • Activities Under Marketing Information System

Purpose of Marketing

  • Existing Markets: Planning, promotion, and sale of current products.

  • New Development: Creating new products and markets to better serve customers.

AIDA Model of Marketing Communication

  • Attention: Captivating prospective customers.

  • Interest: Generating interest through product benefits.

  • Desire: Persuading customers that a product meets their needs.

  • Action: Encouraging purchase behavior.

E-Marketing

  • Definition: Utilizes the Internet as a communications tool supporting the AIDA model.

  • Paradigm Shift: Transition from mass marketing to mass customized marketing.

Transformation in Marketing Paradigm

  • Historical Stages:

    • Undifferentiated Mass Marketing (1940-50)

    • Differentiated Mass Marketing (1950-60)

    • Segment-Oriented Marketing (1960-70)

    • Niche Marketing (1970-80)

    • Individual Customer Marketing (1980-90)

    • Mass Customized Marketing (1990-Present)

Characteristics of E-Marketing

  • Information Acquisition: Associative and customizable.

  • Marketing Strategies: Market pull and customized push.

  • Customer Integration: Involves customers in creating the value chain.

  • Ubiquity: Marketing presence is everywhere.

  • Disintermediation: Reduction in intermediary roles.

Development Model for Online Customers

  • Online Surfers: Aimlessly browse websites.

  • Online Consumers: Engaged with specific goals and bookmark sites.

  • Online Prosumers: Customize products and services sharing personal preferences.

  • Online Buyers: Engage in online purchases.

  • Key Online Customers: Repeat buyers likely to make multiple purchases.

Activities Under Marketing

  • Types of Marketing Activities:

    • Interactive Marketing

    • Sales Force Automation

    • Sales Management

    • Customer Relationship Management (CRM)

    • Market Research & Forecasting

    • Advertising & Promotion

    • Product Management (4Ps: Product, Price, Place, Promotion)

Interactive Marketing

  • Nature: Two-way transactions with customers.

  • Tools: Chat groups, web forms, questionnaires, instant messaging.

Sales Force Automation and Management

  • Capabilities: Real-time capture and sales data analysis online.

  • Importance: Supports online decision-making.

Market Research and Forecasting

  • Data Collection Trends: Using explicit and implicit data from structured and unstructured formats.

Advertising and Promotion Strategies

  • Push vs. Pull Principles:

    • Push: Initiates promotions by providers.

    • Pull: Users request information actively.

Types of Online Promotions

  • Banner advertising, buttons, microsites, and branded content.

Targeting Components for Promotion

  • Community: Custom ads for specific virtual communities.

  • Content: Related advertisements on other organizational websites.

  • Context: Ads targeted at interested users.

Product Management Strategies

  • B-to-C Models: Interactive design and store locator.

Supply Chain Management (Week 4, Lecture 2)

  • Core Topics:

    • Definition of Supply Chain

    • Activities in a Supply Chain

    • Information Flow

    • Benefits of Information Sharing

    • E-Supply Chain Definitions

    • Objectives and Challenges

Definition of Supply Chain

  • A system involving organizations, people, activities, information, and resources to deliver products/services from suppliers to customers.

Supply Chain Cycles

  • Four Main Cycles:

    • Customer Buying Cycle

    • Replenishment Cycle

    • Manufacturing Cycle

    • Procurement Cycle

Information Flow in Supply Chains

  • Components: Requests for Quotes, Purchase Orders, Shipping Notices, Invoices, etc.

Variability in Supply Chains

  • Impact Factors: Demand forecasting, lead times, batch ordering, etc.

  • Bullwhip Effect: Variability increases as one moves up the supply chain.

E-Supply Chain Benefits

  • Real-time updates across the chain ensuring better understanding of customer needs and order fulfillment.

Supply Chain Integration (Week 4, Lecture 3)

  • Key Concepts: Integration, interoperability, collaboration models.

Supply Chain Integration

  • Objective: To maximize value through efficient flow management of services, products, information, and decisions.

Interoperability Dimensions

  • Definition: The ability of different systems to exchange and use shared information.

Collaboration Strategies

  • Types of Collaboration:

    • Collaborative Planning

    • Vendor Managed Inventory (VMI)

    • Synchronized Supply Chains

    • Traditional Supply Chain Management

Logistics and Distribution (Week 4, Lecture 4)

  • Focus Areas:

    • Logistics activities

    • Components of a logistics info system

    • Warehouse management system

    • Transportation management system

Types of Logistics

  • Definition: Efficient transfer of goods from suppliers to customers while maintaining service standards.

Warehouse Management System (WMS)

  • Characteristics: Interacts with the main transaction system to manage warehouse operations.

WMS Functionalities

  • Receives, stores, picks, packs, and dispatches products while also tracking inventory levels.

Transportation Functions

  • Strategic, Tactical, and Operational elements such as managing delivery routes, capacities, performance, and documentation.

E-Commerce Supply Chain Management (Week 4, Lecture 5)

  • Topics Covered: Distribution of digital goods, hybrid distribution, and on-demand production.

Advantages of Online Distribution

  • Immediate fulfillment of customer orders.

  • Direct customer contact with suppliers.

  • Lower production and distribution costs.

Disadvantages of Online Distribution

  • Risk of digital piracy, security issues, and loss of customer loyalty due to lack of personal interaction.

On-Demand Production

  • Combines mass production efficiencies with customer customization to produce goods as requested.