Download PowerPoint Chapter 5

Chapter 5
E-Commerce:
Electronic Marketing
and the Internet for
Dot.com and Brickand-Mortar
Marketers
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The ability to reach anyone
that is “connected” is
demonstrated through this
Monster.com commercial.
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What is Electronic Commerce?
 Electronic commerce
 Electronic marketing
 Digital tools
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 Mondera.com
 An online retailer
targets buyers of
fine jewelry
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AutoTrader.com: An
Example of a Service
Marketer Connecting
Buyers and Sellers Online
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Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Capability
Description
Global reach
The ability to reach anyone connected to a
PC anywhere in the world
One-to-one
marketing
Creating products to meet customer
specifications
Interactive
marketing
Buyer–seller communications through
technology-based channels
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Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Capability
Description
Right-time
marketing
The ability to provide a good or service at
the exact time needed
Integrated
marketing
Coordination of all promotional activities to
produce a unified, customer-focused
promotional message
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Interactivity and E-Commerce
 Interactive Marketing
Buyer-seller communications in which the
customer controls the amount and type of
information received from a marketer
through such channels as the Internet, CDROMs, interactive toll-free telephone
numbers, and virtual reality kiosks
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 BabyGap
 Traditional store outlets and the Internet
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One company that has
enhanced its success by
including the internet as a
part of its overall marketing
strategy is Nike Shoes.
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 The Internet
Intranets
Extranets
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 The History of The Internet
“The history of the Internet begins at the
height of the cold war in the 1960's. People
at the Rand Corporation, America's
foremost military think tank, were trying to
figure out an important strategic problem:
how could US authorities talk to each other
in the aftermath of a nuclear attack?”
Source: the pbs home page
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 Four Web Functions
Communication
Information
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 Four Web Functions
Entertainment
E-Commerce
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Advertisement for an ECommerce Firm Specializing
in Providing A Service
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 Accessing the Internet
Internet Service Provider
Portal
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Northern Light: One of the Many
Portals, is Featured in This
High Tech Advertisement. The
Website Has Changed its
Positioning Since the Ad First Aired.
5-17
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 Lycos
 Web portal
Lycos.com
promoting the speed
of its search engine
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E-Commerce and the Economy
 The fuel of the 21st century
 Changing the world
 A new universe
 Business-to-Business Online Marketing
Involves professional buyers and sellers
Requires less glitz and glamour
Represents huge dollars
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 Benefits of Business-to-Business
Online Marketing
Finding new markets and customers
Cost savings in every area of the
marketing mix
Time reduced in reaching markets
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 Roadway Express
 An example of an
advertisement
explaining Businessto-Business use of
the Web
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 IBM E-Business: Providing E-Commerce Solutions
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 Online Consumer Marketing
Lower Prices
Convenience
Personalization
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 Ask Jeeves
 A Bot, Ask.com
promoting its
unique search
engine
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 Lands’ End Tailoring Products for Online Consumers
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 Determinants of Online Purchasing Behavior
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 Benefits of Online Consumer Marketing
Relationship Building
Increased Efficiency
Cost reductions
More level playing field
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 Online Marketing is International
Marketing
Examples of Companies With Global Web
Sites
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 Security and Privacy Issues of E-commerce
Critical factors in building a relationship online
Credit card security
Authenticity of item offered
Payment guarantees
Fraud protection
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 American Express
 Promoting the use
of its card on the
Web by
guaranteeing the
Web users will not
be held responsible
for any
unauthorized
charge
5-30
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Who Are the Online Buyer and Sellers?
 Online buyers
Annual household income of $30K-$75K
Live in urban areas
75% of employed people use the Internet at
work; 87% of college students
 Online sellers
At first, offered familiar products
Now offering a wider variety of goods
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Interactive Online Marketing
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Creating an Effective Web Presence
Measuring
Effectiveness
Managing a
Web Site
Building an
Effective Web Site
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 Building an Effective Web Site
Establish a Mission for the company’s site
Identify the purpose of the site
Create a clear site design
 Managing a Web Site
Update the site frequently
Flag new merchandise and services
Ensure that site is current
Update software as needed
Track costs and revenues
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Monster.com: A Company with
an Effective Website and High
Impact Advertisements Like
These two
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 Martha Stewart
 Satisfying Wants
and Needs with its
site
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 Measuring Effectiveness of Online
Marketing
An elusive task
Measurement Tools Include
Profitability
Web site traffic counts
Click-through rates
Conversion rates
Research studies
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 Boo.com
 Promoting its online
sportswear electronic
storefront
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