Objectives:

• Identify the current state of e-business.
• Explain how the basic marketing functions apply in the world of electronic business. 
• Analyze how e-commerce firms implement marketing fundamentals on their Web sites. 
• Compare Internet marketing with traditional marketing.

Essential Readings:

• Chapter 1, E-Marketing, Strauss and Frost.

Before starting the specific study of Electronic Commerce, we need to focus on the foundations marketing to see how they are altered and applied to the world of e-business.  The basic foundations and functions of marketing apply equally to e-business as they do to brick and mortar business. 

First, we will explore some basic marketing definitions and concepts.  According the American Marketing Association, the definition of Marketing is as follows:

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. 

Marketing Education

Marketing occupations represent nearly one in every four jobs in the U.S. economy. The first job a teenager holds is often a marketing job in retailing or service businesses. On the other hand, the most successful entrepreneurs and executives in the largest international organizations are often experienced
marketers. Marketing moves our economy and increasingly demands highly educated, well prepared employees with leadership, communication, and technological skills. 

Marketing Education has been a part of the curriculum of our schools over a century. Today, it represents the best of American education. The Marketing Education curriculum is grounded in academics—effective communications, mathematics, economics, and the new technology requirements.  It integrates learning as students apply principles of psychology, human relations, oral and written communications, and mathematics as they learn how businesses plan, produce, price, distribute and sell the many products and services demanded by consumers around the world.

Marketing has been in the forefront of applied learning. Students in Marketing Education programs often participate in cooperative education or internships where they can test and improve job skills in a real-world setting while improving their knowledge of marketing and business practices in the classroom. In addition, Marketing Education develops students’ leadership, decision making, and team skills through the activities of DECA, the national association for Marketing students.

For a refresher on marketing and Marketing Education, visit

Marketing and Marketing Education refresher

When you are done, be sure to close the window by clicking on the "x" at the top right hand corner of your browser.  It will bring you back to here.

Assignment:

1.  Explore the Web site www.amazon.com and identify how it addresses the following marketing concepts:
               What is their main product? 
               How does the exchange of value take place? 
               How do they communicate with their customers? 
               How do they identify their customer's wants and needs? 

2.  In the refresher above, the definition of marketing is

Marketing is a total system of business activities designed to plan, price, promote, and distribute want-satisfying products to target markets in order to achieve organizational objectives.

3.  The marketing concept--as noted in the refresher above--is based on three beliefs.   Based on your examination of their Web site, how has Amazon.com applied these three beliefs into their business? 

Read Chapter 1 in your text E-Marketing by Strauss and Frost. 
Answer the following questions:

4.  Explain what the author means by "first generation e-business" and "second generation e-business."

5.  What is the difference between e-business and e-commerce?

6.  What percentage of e-commerce occurs in the B2B market?

Complete the following Activities:

7.  Activity 1, p. 27 (however, use mysimon.com instead of evenbetter.com)
8.  Activity 3, p. 28 
9. Do the Internet Exercise on p. 28 and answer questions 1, 2 and 4. 

10.  Describe what you feel is the major difference between Internet marketing and traditional marketing.