E Commerce-2
- 1. E-Commerce Marketing in the Digital Age: Making New Customer Connections
- 2. Objectives Be able to identify the major forces shaping the new digital age. Understand how companies have responded to the Internet with e-business strategies. Be able to describe the four major e-commerce domains.
- 3. Objectives Understand how companies use e-commerce to profitably deliver greater value to customers. Realize the promise and challenges that e-commerce presents for the future.
- 4. Invented discount brokerage category First U.S. major player to go online Initially offered two-tiered trading system to protect profits / stop cannibalization Later became first true click-and-mortar full-service brokerage Now world’s largest e-commerce site 85% online trades; 21% of trade volume; Strong stock return Case Study
- 5. Major Forces Shaping the Digital Age Digitalization and Connectivity The flow of digital information requires connectivity Intranets, Extranets, and the Internet The Internet Explosion Key driver of the “new economy”
- 6. New Types of Intermediaries Brick-and-mortar firms often face disintermediation from click-only competitors The click-and-mortar business model has been highly successful Customization and Customerization Major Forces Shaping the Digital Age
- 7. Marketing Strategy in the Digital Age E-business: uses electronic means and platforms to conduct business. E-commerce: facilitates the sale of products and services by electronic means.
- 8. Marketing Strategy in the Digital Age E-marketing: Includes efforts that inform, communicate, promote, and sell products and services over the Internet. E-commerce benefits both buyers and sellers
- 9. Marketing Strategy in the Digital Age Buyer Benefits of E-Commerce: Convenience Easy and private Greater product access/selection Access to comparative information Interactive and immediate
- 10. Marketing Strategy in the Digital Age Seller Benefits of E-Commerce: Relationship building Reduced costs Increased speed and efficiency Flexibility Global access, global reach
- 11. E-Commerce Domains E-Marketing Domains Targeted to consumers Initiated by businesses B2C Targeted to businesses Initiated by consumers C2C C2B B2B
- 12. E-Commerce Domains B2C B2B C2C C2B Online consumers Now more mainstream and diverse Has created new targeting opportunities Online behavior differs by age Online consumers differ from traditional off-line consumers They initiate and control the exchange process Value information highly Major Domains
- 13. E-Commerce Domains B2C B2B C2C C2B B2B sales far exceed B2C sales B2B sales are estimated to reach $4.3 trillion in 2005 Open trading networks E-marketspace bringing sellers and buyers together Private trading networks Links sellers with their own trading partners Major Domains
- 14. E-Commerce Domains B2C B2B C2C C2B C2C web sites help consumers exchange goods or information eBay is one example Auction sites facilitate the exchange process Allow access to a much larger audience Newsgroups / forums Help consumers to find and share information Major Domains
- 15. E-Commerce Domains B2C B2B C2C C2B Allow consumers to search out sellers, learn about offers, initiate purchase, or dictate purchase terms Ex: Priceline.com Some sites facilitate the feedback process between customers and companies Ex: Planetfeed.com Major Domains
- 16. Conducting E-Commerce Click-Only-Competitors E-tailers, search engines and portals, ISPs, transaction sites, enabler sites Dot.coms failed for many reasons Lack of planning and research Over emphasis on acquisition vs. retention Poor web site design / distribution systems Low margins
- 17. Conducting E-Commerce Click-and-Mortar Companies Channel conflict was initially a concern E-commerce often created new customers, rather than cannibalizing existing ones Many firms now enjoy greater success than their click-only competition Trusted brand names, greater financial resources, larger customer base, industry knowledge, and strong supplier relationships were key advantages
- 18. Conducting E-Commerce Corporate web sites Build goodwill and relationships; generate excitement Marketing web sites Engage consumers and attempt to influence purchase Web site design 7 Cs of effective web site design Creating web sites Placing online ads and promotions Creating or using web communities Using E-mail and webcasting E-Marketing
- 19. Conducting E-Commerce Context Content Community Communication Connection Commerce Seven C’s of Web Site Design Customization
- 20. Conducting E-Commerce Online forms of ads and promotions Banner ads/tickers Skyscrapers Interstitials Browser ads Content sponsorships Microsites Viral marketing Future of online ads Creating web sites Placing online ads and promotions Creating or using web communities Using E-mail and webcasting E-Marketing
- 21. Conducting E-Commerce Web communities allow members with special interests to exchange views Social communities Work-related communities Marketers find well-defined demographics and shared interests useful when marketing Creating web sites Placing on-line ads and promotions Creating or using web communities Using E-mail and webcasting E-Marketing
- 22. Conducting E-Commerce E-mail marketing Key tool for B2B and B2C marketing Clutter is a problem Enriched forms of e-mail attempt to break through clutter Webcasting Auto downloading of customized content to recipients’ PCs Creating web sites Placing on-line ads and promotions Creating or using web communities Using E-mail and webcasting E-Marketing
- 23. Promise and Challenges of E-Commerce The Promise of E-Commerce The future of B2B E-commerce is bright A few click-only companies may succeed Most companies will integrate online marketing into the marketing mix
- 24. Promise and Challenges of E-Commerce Challenges: The Web’s Darker Side Few B2C companies are profitable Limited exposure, skewed demographics Navigating the web is often problematic Challenge: Legal and Ethical Issues Online privacy and security concerns Internet fraud, the digital divide, access by vulnerable or unauthorized groups