electronic commerce
DESCRIPTION
Electronic commerceTRANSCRIPT
Chapter 9
Interactive Marketing and
Electronic Commerce
2
Electronic Commerce
…any activity that uses some form of
electronic communication in the inventory,
exchange, advertisement, distribution, and
payment of goods and services.
3
Marketing Opportunities in Marketspace
Products best suited for e-commerce:
product information important, but not pre-purchase trial
audio or video demonstration
digitally deliverable items
unique items
routine purchases, convenience important
highly standardized products, price information important
4
E-Commerce Models: Sales Revenue
Model
• involves marketing products and services through the
Internet
• companies seek to earn a margin on actual sales or a
fee charged for rendering a service
• few companies that market consumer products actually
make an operating profit using this model exclusively
• Examples – CDNow.com and Cisco Systems
5
E-Commerce Models: Advertising Support
Model
• emphasizes the selling of advertising on a company’s
Web site
• often prices are listed at or below their cost
• often used to complement the selling model, but
sometimes used alone to generate revenue
• Examples – Buy.com and Yahoo.com
6
E-Commerce Models: Cost Elimination
Model
• used when delivery of the product, service,
or information through the Internet
significantly lowers costs
• Examples – banks and airlines
7
E-Commerce Models: Subscription Support
Model
• generates revenue from users in the form of
monthly or annual subscriptions based on the
value of the content or service provided
• Examples – aol.com and wsj.com
8
E-Commerce Models: Information Trading
Model
• company gathers information about
consumer interests or purchase intentions,
and sells the information to a retailer or
manufacturer for a fee
• Example – Popular Demand, Inc.
9
E-Commerce Models: Infomediary
Model
sells information about a market and creates
a platform on which buyer and sellers can do
business in marketspace
Three Types: aggregators – e.g., chemdex.com
auctioneers – e.g., eBay.com
exchanges – e.g., nte.net
10
Customer Value Proposition in Marketspace
ValueProposition
ChoiceConvenience
CoordinationCustomization
Cost
Customer Service
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Types of Marketing Web Sites
Transactional sites
e.g., L.L.Bean and gap.com
Promotional sites
e.g., saturn.com and cathay-usa.com
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Transactional Websites
are essentially electronic storefronts
focus on turning online browsers into online buyers
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Promotional Websites
promote a company’s products
provide information on how product can be used and where it
can be purchased
often engage the visitor in an interactive experience
can be effective in generating interest in and trial of a
company’s products
14
Marketing Websites and IMC
Web sites complement direct selling and supplement
advertising
play a cost-effective role in the communication mix
cost-effective in providing feedback on product
performance
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Managing Product-Market Convergence
increasing number of companies maintaining presence in
both marketplace and marketspace. This necessitates:
coordinating marketing efforts
managing trade relations