Download Buying online is slowly catching on with Canadian consumers.

E-Commerce
“Buying and selling of goods online and the transfer
of funds via digital communications.”
 Amazon.ca
 Chapters.Indigo.ca
Buying online is slowly catching on with
Canadian consumers.
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E-Business
E-Business is more embracing than e-commerce.
 Buying and selling online
 Electronic transfer of information (EDI)
facilitating movement of goods
 Billing and payments electronically
The emphasis on CRM along with communications
technology encourage e-business activity in a B2B
environment.
Copyright © 2007 Pearson Education Canada
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Internet Usage
 7.9 million Canadian households use regularly
 Greater usage in mid- to high-income households
 Households with children use more frequently
 Higher educated households use more regularly.
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Online Behaviour
1. Internet usage increasing; traditional media
usage decreasing.
2. Internet is a popular research tool for online
and offline purchases.
Popular activities:
 E-mail, instant messaging, and chat rooms
 Playing games, surfing, shopping
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Online Marketing Opportunities
The Internet presents three significant opportunities:
1. Reaches youth and young adult markets
effectively; other age segments growing
2. Online transactions possible
3. Mass customization
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Mass Customization
“Creating systems that can personalize
messages and develop products for an
audience of one.”
Dell Computer Corp. produces your
computer after you order it.
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Research Applications
Focus
Groups
Qualitative assessments in a
speedy manner; can’t observe
respondent
Online
Observations
Electronic surveillance; data
available for e-mail lists.
Online
Surveys
Quantitative assessments in a
fast, inexpensive way.
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Product Strategy
Products with certain characteristics have been
sold more successfully online.
 Non-perishable
 High relative value
 Information intensive
 High-tech in nature
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Branding Considerations
Offline image and online image should be
identical.
Site name should be easy to remember and spell
(typing errors discourage visits).
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Brand Names
Some options for domain names include:
Company Name:
Nike.ca
Brand Name:
Tide.com
Acronym:
cbc.ca
Unique name:
savingyoumoney.com
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Upward Influences on Price
Online prices are not much lower than offline
prices. Certain factors increase price:
 Shipping costs
 Auctions
 Web site development costs
 Marketing costs
Costs associated with 24/7 service and customization
are also increasing prices.
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Downward Influences on Price
The rapid pace of technology puts pressure on
prices. Certain factors help lower prices:
 Competition (shoppers comparison shop)
 Product life cycles
 Streamlined order processing
 Location and management of inventory
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Distribution Strategy
The Internet can perform all distribution roles but
in a different way.
 Market Intelligence
 Customer Communications
 Buyer Contact
 Matching Products to Needs
 Physical Distribution
 Financing
 Price Negotiation
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The Online Channel
Offline distributors (disintermediation) have been
replaced with online distributors (reintermediation).
Traditional Channel
Manufacturer
Distributor
Travel Agent
Consumer
Distributor
Travelocity
Consumer
Online Channel
Manufacturer
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Marketing Communications
Organizations can employ any combination of
alternatives:
Online Ads
Sponsorships
E-mail Advertising
Sales Promotion
Public Relations
Web Site
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Customer Relationship
Management
The Internet is an ideal vehicle for building a true
CRM program. To make it work an organization
must:
1. Predict changing needs of e-consumers
2. Pursue e-marketing strategies relevant to
each customer
3. Identify high-value customers and repeatedly
satisfy them
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