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Chapter 3 E-environment

OHT 4.2

Learning objectives
Identify the different elements of the e-environment that impact
on an organisations e-business and e-marketing strategy.
Assess the impact of legal, moral and ethical constraints or
opportunities on a company and devise solutions to
accommodate them.
Assess the role of macro-economic factors such as economics,
taxation and legal constraints

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OHT 4.3

Issues for managers


What are the constraints placed on developing
and implementing an e-business strategy by the
e-environment?
What factors influence the adoption of new
digital media and how can we estimate future
demand for online services?
How can trust and privacy be assured for the
customer while seeking to achieve marketing
objectives of customer acquisition and
retention?

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OHT 4.4

Activity 4.1
List all the social, legal and ethical issues that the
manager of a sell-side e-commerce web site needs to
consider to avoid damaging relationships with users of his
or her site or which may leave the company facing
prosecution. You can base your answer on issues which
may concern you, your friends or family when you access
a web site.

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Activity answer this


lecture

OHT 4.5

Cookies laws and consumer perception on placing


these
Are we limiting access to information from certain
sections of society (social exclusion)?
Privacy of personal information entered on a web site
Sending unsolicited e-mail
Replying promptly to e-mail
Copyright
Site content and promotional offers/adverts are in
keeping with the different laws in different countries
Providing text, graphics and personality in keeping
with social mores of different countries
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OHT 4.6

SLEPT Factors
Macro-environment
Social
Legal
Economic
Political
Technological

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OHT 4.7

Social
Demand analysis (part of microenvironment)
Have access to the channel.
Are influenced by using the channel.
Purchase using the channel.

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OHT 4.8

Popularity of online
activities

Figure 4.1 Popular online activities in the UK showing variation between


October 2000 and October 2002
Source: Copyright Crown copyright 2002, Crown copyright material is reproduced with the permission
of the Controller of HMSO.
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OHT 4.9

Internet access worldwide

Figure 4.2 Percentage of global population with Internet access


Source: Reprinted from CyberAtlas.com, a publication of Jupitermedia Corporation. Copyright 2003
Jupitermedia Corporation
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OHT 4.10

Internet and PC
penetration

Figure 4.3 Global variation in number of PCs per hundred population and
percentage Internet access in 2002
Source: International Telecommunications Union

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OHT 4.11

Demographics of UK
population

Figure 4.4 Variation in demographic characteristics of UK Internet users


Source: ONS (2002)

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% of employees that
access Internet

OHT 4.12

Figure 4.6 Average percentage of employees using the Internet at least once a
month
Source: DTI (2002)

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% businesses who
identify suppliers online

OHT 4.13

Figure 4.7 Percentage of businesses that identify suppliers online


Source: DTI (2002)

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Ethical issues and data


protection

OHT 4.14

Ethical issues concerned with personal


information ownership have been usefully
summarised by Mason (1986) into four areas:
1.Privacy what information is held about the
individual?
2.Accuracy is it correct?
3.Property who owns it and how can
ownership be transferred?
4.Accessibility who is allowed to access this
information, and under which conditions?
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OHT 4.15

Ethics Fletchers view

Fletcher (2001) provides an alternative perspective, raising


these issues of concern for both the individual and the
marketer:

Transparency who is collecting what


information?
Security how is information protected
once collected by a company?
Liability who is responsible if data is
abused?
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The eight principles for


data protection

OHT 4.16

Fairly and lawfully processed;


processed for limited purposes;
adequate, relevant and not excessive;
accurate;
not kept longer than necessary;
processed in accordance with the data subject's
rights;
secure;
not transferred to countries without adequate
protection.

www.dataprotection.gov.uk
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OHT 4.17

Opt-in vs opt-out

Figure 4.8 (a) Opt-in online form, (b) opt-out form


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Opt-in vs opt-out
OHT 4.18

Figure 4.8 (c) implicit opt-in


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Information flows for data


protection
OHT 4.19

Figure 4.9 Information flows that need to be understood for compliance with
data protection legislation
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OHT 4.20

TRUSTe

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OHT 4.21

Legal Sparrows eight


1. Marketing your e-commerce business
areas
2.

Forming an electronic contract

3.

Making and accepting payment

4.

Authenticating contracts concluded over the Internet

5.

E-mail risks

6.

Protecting intellectual property

7.

Advertising on the Internet

8.

Data protection

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OHT 4.22

Economic / Political
Ensuring companies competitive

Funding for education and technology:


e.g. www.ukonlineforbusiness.gov.uk
Promoting new technology e.g. broadband
12% in UK, 70% Taiwan, South Korea

Achieving government efficiencies

E-government all UK services online 2005


Singapore Intelligent Island

Taxation regimes

Legislation for offshore trading


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E-economy
framework
OHT 4.23

Figure 4.11 A framework describing the e-economy


Source: Booz Allen Hamilton (2002). Copyright Crown copyright 2002, Crown copyright material is
reproduced with the permission of the Controller of HMSO.
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Leaders and laggards in


e-commerce
OHT 4.24

Figure 4.12 Leaders and laggards in e-commerce


Source: 2003 Reproduced by permission of the Economist Intelligence Unit. E-readiness Rankings 2003
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OHT 4.25

Technological issues
Rate of change
Which new technologies should we adopt?
Monitoring for new techniques
Evaluation are we early adopter?
Re-skilling and training

Are our systems secure?

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OHT 4.26

Diffusion of adoption
curve

Figure 4.13 Diffusionadoption curve


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Personalisation at
RS Components
OHT 4.27

Figure 4.14 Personalization at RS Components (www.rswww.com)


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Responses to change in
technology

OHT 4.28

Figure 4.15 Alternative responses to changes in technology


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