Transcript Unit 4.8 * E-Commerce

Unit 4.8 – E-Commerce
IB Business/Management
Chapter Goals
 Describe the features of e-commerce
 Analyze how changing technology and e-
commerce impacts the marketing mix
 Distinguish between the three types of ecommerce
 Discuss the costs and benefits of e-commerce to
firms and consumers
Feature of e-commerce
 Ubiquity – widely available 24/7
 Customization – messages can be personalized
 Global reach – internet breaks traditional
boundaries
 Integration – allows use of audio, video & text to
present a marketing message
 Universal standards – one set of global internet
standards
E-commerce & the Marketing Mix
 Product
 Wider customer base
 Wider range of products to meet demand
 Customers able to tailor products
 Example - interactive websites to “build” custom cars
 Should lead to greater customer satisfaction
 Price




Prices more transparent
Consumers can easily check prices
Allow the “middle man” to be cut out
Products more affordable
E-commerce & the Marketing Mix
 Promotion
 Additional medium;
 Many businesses supplement traditional advertising with online advertising
 Provides more ways for businesses to advertise
 Feedback from customers can be immediate
 Place
 Able to reach a global audience at a fraction of the cost
 Distribution Channels shortened
 Internet more convenient
 Language translation can expand markets even further
Types of e-commerce
 Business to Business - E-commerce focused on the
needs of other businesses
 Corporate banking; Equipment suppliers
 Business to Consumer - Directly focused on the
end-user, or consumer
 Consumer to consumer – transactions between
two consumers
Benefits of E-commerce to firms
 Can reach a wider market
 More cost effective
 Another place to generate revenue
 Example – Facebook advertising
 Excessive packaging can be reduced
 Example – computer manuals downloaded, rather
than included with produce
Benefits to consumers
 Convenience
 Can shop from your own home any time
 Increased choice
 Can easily compare products from many different
sites
 Good customer service = customer satisfaction
Costs of E-commerce to firms
 Security concerns regarding payments
 Need to guard against on-line fraud = expensive
 Vulnerable to competition
 May not be suited for every type of business
 Setting up and maintaining a website can be
expensive
Costs of E-commerce to
consumers
 Consumers don’t have the ability to try out the
product
 Not everything can be purchased on-line
 On-line pop-ups considered a distraction
 Not all areas have great internet connectivity
 Information overload!