E-Business in Contemporary
Download
1 / 25

Chapter Objectives - PowerPoint PPT Presentation


  • 60 Views
  • Uploaded on

E-Business in Contemporary Marketing. CHAPTER 4. Chapter Objectives. Define e-business and discuss how marketers use the Internet to achieve business success. Distinguish between a corporate Web site and a marketing Web site. List the major forms of B2B marketing.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter Objectives' - dolph


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Slide1 l.jpg

E-Business in Contemporary Marketing

CHAPTER4

Chapter Objectives

Define e-business and discuss how marketers use the Internet to achieve business success.

Distinguish between a corporate Web site and a marketing Web site.

List the major forms of B2B marketing.

Explain business-to-consumer (B2C) e-marketing.

Identify online buyers and sellers.

Describe some of the challenges associated with online marketing and e-business.

Discuss how marketers use the communication function of the Web as part of their online marketing strategies.

Outline the steps involved in developing successful e-business Web sites and identify methods for measuring Web site effectiveness.

4

1

7

5

2

6

8

3


Slide2 l.jpg

• E-business Firm that targets customers by collecting and analyzing business information, conducting customer transactions, and maintaining online relationships with customers.

• Online retails sales in the U.S. totaled nearly $86 billion in a recent year.

• 205 million Americans access the Internet as of May 2006, according to World Internet Statistics.

• One billion people worldwide access the Internet.

• More than 25 million Americans have sold something online.

• A recent report estimates that the average Brit and average American spend more time online than watching television.


Slide3 l.jpg

WHAT IS E-BUSINESS?

• E-tailing, virtual storefronts on Web sites.

• Business-to-business transactions.

• Electronic data interchanges, the B2B exchange of data.

• E-mail, instant messaging and other Web-enabled communication tools.

• The gathering and use of demographic, product, and other information through Web contacts.

• E-marketing Strategic process of creating, distributing, promoting, and pricing goods and services to a target market over the Internet or through digital tools. Examples:

• Researching computer printers on CNet.com and then placing an order at Newegg.com.

• Legally downloading music and videos from Apple Computer’s iTunes Web site.



Slide5 l.jpg

TYPES OF BUSINESS WEB SITES

• Corporate Web site Site designed to increase a firm’s visibility, promote its offerings, and provide information to interested parties.

• Purpose is to build customer goodwill and assist channel members in their marketing efforts.

• Marketing Web site Site whose main purpose is to increase purchases by visitors.

• Many try to engage visitors in interactions that move them closer to a desired marketing outcome.


Slide6 l.jpg

B2B E-MARKETING

• Business-to-business (B2B) e-marketing Use of the Internet for business transactions between organizations.

• Accounts for 90 percent of all e-business activity.

• Accounts for 10 percent of all B2B transactions.

• Increases efficiency of business transactions, which typically involve more steps than consumer transactions.


Slide7 l.jpg

ELECTRONIC DATA INTERCHANGE, WEB SERVICES, EXTRANETS, AND PRIVATE EXCHANGES

• Electronic data interchange.

• Computer-to-computer exchanges of price quotations, purchase orders, invoices, and other sales information between buyers and sellers.

• Cuts paper flow, speeds the order cycle, and reduces errors.

• Allows companies to set production schedules to better match demand.

• Requires compatible hardware and software systems.

• Web services.

• Internet-based systems that allow parties to communicate electronically with one another regardless of the computer operating system they use.

• Rely on open source XML.


Slide8 l.jpg

ELECTRONIC DATA INTERCHANGE, WEB SERVICES, EXTRANETS, AND PRIVATE EXCHANGES

• Extranets.

• Secure networks used for e-marketing and accessible through the firm’s Web site by external customers, suppliers, or other authorized users.

• Give selected outsiders access to internal information.

• Private exchanges.

• A secure Web site at which a company and its suppliers share all types of data related to e-marketing, from product design through delivery of orders.

• Sometimes called c-business, “c” for “collaboration.”

• Often used for collaborating on product ideas, production scheduling, distribution, order tracking, and other business functions.


Slide9 l.jpg

ELECTRONIC EXCHANGES AND E-PROCUREMENT PRIVATE EXCHANGES

• Electronic exchanges.

• Online marketplaces that bring buyers and sellers together in one electronic marketplace and cater to a specific industry’s needs.

• Use has declined because suppliers weren’t happy with process and buyers preferred to develop long-term relationships with buyers they knew.

• E-procurement.

• Web-based systems that enable all types of organizations to improve the efficiency of their bidding and purchasing processes.

• Streamlines purchasing process and reduces costs.

• Example: In North Carolina, state and local government agencies, public schools, and other public entities use e-procurement to purchase from vendors.


Slide10 l.jpg

ONLINE SHOPPING AND B2C E-MARKETING PRIVATE EXCHANGES

• Business-to-consumer (B2C) e-marketing Selling directly to consumers over the Internet. Also called e-tailing.

• Growing rapidly by convenience and improved security for transferring credit card information.

• Service providers such as banks are an important segment of e-tailing.

• Two types of B2C Web sites

• Shopping sites such as Gap.com where customers can get product information and make purchases online.

• Information sites such as Toyota.com where customers can get product information but cannot make purchases online.


Slide11 l.jpg

ELECTRONIC STOREFRONTS PRIVATE EXCHANGES

• Electronic storefront Company Web site that sells products to customers.

• Example: Walmart’s electronic storefront.

• Example: Land’s End’s electronic storefront.

• Items for purchase are placed in an electronic shopping cart.

• Growth anticipated with the increase in broadband connections.

• Broadband shoppers typically spend 34 percent more online than narrowband shoppers.


Slide12 l.jpg

BENEFITS OF B2C E-MARKETING PRIVATE EXCHANGES

• In a recent survey, more than half of consumers said they prefer shopping online more than in stores.

Lower Prices

• Sixty percent of online shoppers cite lower prices as the reason for shopping online.

• Internet allows easy price comparisons, including through bots such as Shopping.com.

Convenience

• Allow orders from anywhere at anytime; product tracking.

Personalization

• Software analyzes past user purchases to customize experience.

• Goal is to create loyal customers who make repeat purchases.


Slide13 l.jpg

ONLINE BUYERS AND SELLERS PRIVATE EXCHANGES

• Demographics of customers are changing as Internet penetration grows.


Slide15 l.jpg

E-BUSINESS AND E-MARKETING CHALLENGES PRIVATE EXCHANGES

ONLINE PAYMENT SYSTEMS

• Companies have developed secure payment systems to protect customer information.

• Encryption, process of encoding data for security purposes.

• Secure Sockets Layer, technology that encrypts information and provides authentication.

• Electronic wallet, a computer data file at an e-business site’s checkout counter that contains credit card information and owner identification.


Slide16 l.jpg

PRIVACY ISSUES PRIVATE EXCHANGES

• Customers’ top security concern is protection of their personal information.

• Through electronic signatures, parties can enter into legal contracts such as mortgages and insurance policies online.

• Cookies and spyware allow companies to personalize Internet experience but also invade computer users’ privacy.

• To reassure customers, many online merchants have signed on with online privacy organizations such as TRUSTe.

• Companies install firewalls to protect private corporate data.


Slide17 l.jpg

INTERNET FRAUD PRIVATE EXCHANGES

• Complaints about Internet fraud are compiled by the Internet Crime Complaint Center.

• Logged more than 231,000 complaints in a recent year.

• Sixty-five percent of complaints referred to law enforcement concern online auctions.

• Phishing High-tech scam that uses authentic-looking e-mail or pop-up messages to get unsuspecting victims to reveal personal information.

• Payment fraud is also growing.

• Cardholder fraudulently claims ordered merchandise was never delivered and asks credit issuer for a chargeback.


Slide18 l.jpg

WEB SITE DESIGN AND SERVICE PRIVATE EXCHANGES

• As many as 70 percent of Internet shopping carts are abandoned before any purchase is made.

• Negative experiences on Web sites can hurt a company’s future online and in-store sales.

• Delivery and returns pose challenges.

• Companies that have brick-and-mortar experience often have more experience satisfying customers than Internet-only retailers.

CHANNEL CONFLICTS

• Direct sales to customers can compete with business partners such as retailers and distributors, disputes called channel conflicts.

• Example: Mattel sells only specialty products online.


Slide19 l.jpg

USING THE WEB’S COMMUNICATION FUNCTION PRIVATE EXCHANGES

• Web has four main functions: e-business, entertainment, information, and communication.

• Communication is Web’s most popular function.

• Firms use e-mail to communicate with customers, suppliers, and other partners.

• Spam Popular name for junk e-mail.

ONLINE COMMUNITIES

• Internet forums, newsgroups, electronic bulletin boards, and Web communities that appeal to people who share common interests.


Slide20 l.jpg

BLOGS PRIVATE EXCHANGES

• Blog Short for Web log, an online journal written by a blogger.

• Some incorporate wikis, a Web page that anyone can edit.

• Some incorporate podcasts, video recordings that are posted online. According to iPodder.org, more than 3,000 podcasts operate worldwide.

• Corporate blogs can help build brand trust.

• Example: Apple’s iLounge

• Builds iPod brand.

• Gives Apple ideas for product improvement.

• Employee blogs present ethical issues.

• Negative comments can harm company.

• Form of free speech that humanizes a company.


Slide21 l.jpg

WEB-BASED PROMOTIONS PRIVATE EXCHANGES

• Companies buy banner ads and pop-up ads on Web sites customers are likely to visit.

• Search marketing Paying search engines, such as Google, a fee to make sure that the company’s listing appears toward the top of the search results.

• Companies use online coupons to promote their products.

• Example: ValPak Marketing Systems.


Slide22 l.jpg

MANAGING A WEB SITE PRIVATE EXCHANGES

DEVELOPING SUCCESSFUL WEB SITES


Slide23 l.jpg

Planning and Preparation PRIVATE EXCHANGES

• What is the company’s goal for its Web site?

• Determines content and design.

• Determines scope.

• Will the site be maintained in-house or by a contractor?

• What will the site be named?

Content and Connections

• Content an important factor for whether visitors return to a site.

• Available resources should be relevant to viewers, easy to access and understand, updated regularly, and written or displayed in a compelling, entertaining way.

• Most small businesses are better off outsourcing to meet their hosting and maintenance needs.


Slide24 l.jpg

Costs and Maintenance PRIVATE EXCHANGES

• Variety of costs:

• Development.

• Placing the site on a Web server.

• Maintaining and updating the site.

• Promoting the site.


Slide25 l.jpg

MEASURING WEB SITE EFFECTIVENESS PRIVATE EXCHANGES

Click-through rate Percentage of people presented with a banner ad who click on it.

Conversion rate Percentage of visitors to a Web site who make a purchase.