electric comerce ch 2

Chapter 2

Retailing in Electronic Commerce

Ijaz Ahmad Lecturer in Computer Science

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Internet Marketing and Electronic Retailing

• Overview of Electronic Retailing

electronic retailing (e-tailing)Retailing conducted online, over the Internet

e-tailersRetailers who sell over the Internet

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• Computer hardware and software

• Consumer electronics• Office supplies• Sporting goods• Books and music

• Toys• Health and beauty• Clothing• Jewelry• Cars• Services• Others

What Sells Well on the Internet?

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• Characteristics of Successful E-Tailing– High brand recognition– A guarantee provided by highly reliable or well-known vendors– Digitized format (nothing is manual)– Relatively inexpensive items (no tax, no commissions) – Supplies with standard specifications– Well-known packaged items that cannot be opened even in a

traditional store

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Business Model of E-Marketing

Direct marketing

Broadly, marketing that takes place without intermediaries between manufacturers and buyers;

In the context of E-Commerce, marketing done online between any seller and buyer

E.g.

http://www.hp.com/#Support

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• Direct Sales by Manufacturers (Advantages)– Sellers can understand their markets better because

of the direct connection to consumers (using e- surveys, feedback etc)

– Consumers gain greater information about the products through their direct connection to the manufacturers

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Indirect Marketing

Broadly, marketing that takes place having intermediaries between manufacturers and buyers;

In the context of E-Commerce, marketing done online between any seller and buyer


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Disadvantages Indirect Marketing

• Relatively expensive i.e

• Taxes

• Commission


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Full Cyber Marketing Vs

Firms that sell directly to consumers over the Internet without maintaining a physical sales channel

Partial Cyber Marketing

The companies or distributors that sell not only through internet but also through traditional physical stores or other channels.


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Business Models E-Marketing

Electronic Distributor Vs

Who supplies directly to consumer with out having physical channel.ie intermediaries.

E-Brokere-broker only produce supplies who deal with the items that the customer are looking for…………….

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Business Models of E-Marketing

• Electronic Shopping Malls Vs– A shopping mall or shopping centre is a building or

set of buildings which contain retail units, with interconnecting walkways enabling visitors to easily walk from unit to unit.

– Online shopping malls offering easy access to online stores with online shopping directories, price comparison shopping and cash back rebates

– Referring Directories (Categories of Products)– Malls with Shared Services

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• Electronic Store

E-Store as an electronic distributor whose dealing items are handled by a single store.


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• Generalized E-Malls/Stores Vs

The generalized e-malls/stores deal with various categories of items,so the supply items is very wide.eg A to Z

. Specialized E-Malls/Stores

The Specialized e-malls/stores focus on only special types of items.




• Global Vs Regional Marketing

• Global Marketing

All over the World

. Regional Marketing

With in a specific area.

Sales Vs Customer Services

The website of some companies are used mainly for customers.




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Travel and Tourism Services Online

• Online travel is probably the most successful e-commerce implementation

• Services provided include:– General information – Reserving and purchasing tickets, accommodations,

and entertainment– Travel tips – Electronic travel magazines– Fare comparisons

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• Benefits of Online Travel Services– Benefits to consumers

• Large amount of free information available 24/7

• Substantial discounts can be found

– Benefits to providers• Airlines, hotels, and cruise lines are selling otherwise-

empty spaces

• Direct selling saves the provider’s commission and its processing

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• Limitations of Online Travel Services– Many people do not use the Internet– The amount of time and the difficulty of using virtual

travel agencies may be significant– Complex trips or those that require stopovers may not

be available online because they require specialized knowledge and arrangements

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Electronic Intermediaries

• e-Broker– Use to assists the search for appropriate product and

its vendor.

• e-Distributor– Takes responsibility of order fulfillment and collection of

payment like e-bay or Amazon.

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• Generalized e-Broker

– www.openmarket.com– www.internet-mall.com– In 1996 47,000 shops were register with open market.

– Now its 2009 use your imagination.

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• Specialized e-Distributor

– Cyber Book store• www.ebooke.com

– Cyber CD store

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Reactive e-Department stores

• Websites of the physical stores, use for the advertisement purpose in the beginning but now also entertain online order and product delivery to compete pure EC stores like Amazon.

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• What are befits to costumer?

– Reduced price?– Reduced shopping time?– Offering products that cant be found at physical stores?– Convenience of shopping of any time from any place?

THEN WHY ITS IMPORTANT ?

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Because it’s a good source of attracting costumers to the

Physical store

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Regional Shopping Services

• Place your order online and near by partner Super Market packs the items and deliver it at appointed days and time.– Tidbits offers Dunkin Doughnuts

• “Peapod” case study page 54

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Procedure for Internet Shopping

• Determine the requirements

• Search for needed available items

• Compare the products

• Place and order

• Pay the bill

• Receive the delivered items and inspect them.

• Contact the vendor for service and support or to return if disappointed.

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On-Demand Delivery Services and E-grocers

on-demand delivery service

Express delivery made fairly quickly after an online order is received

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Assignment

• Which business model was more successful Generalized e-broker or Specialized e-stores? Explain with example for each model.

• Describe process of internet shopping. List its major steps.• How does the quality assurance of the e-mall work in

ordering an unknown brand?

Note: for question 3 ask your marketing teacher for processin physical environment.

Dead Line22,23 Feb 2010

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electric comerce ch 2

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