Transcript Chapter 4 E-Business: Managing the Customer Experience

Principles of
Contemporary Marketing
Kurtz & Boone
Chapter 4
E-Business:
Managing the
Customer Experience
CHAPTER 4 E-Business: Managing the Customer Experience
Chapter Objectives
1. Describe the growth of Internet use worldwide.
2. Define e-business and e-marketing, and list the opportunities
e-marketing presents.
3. Distinguish between a corporate Web site and a marketing
Web site.
4. List the major forms of B2B e-marketing.
5. Explain business-to-consumer (B2C) e-marketing.
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CHAPTER 4 E-Business: Managing the Customer Experience
Chapter Objectives
6. Identify online buyers and sellers.
7. Describe some of the challenges associated with online
marketing and e-business.
8. Discuss how marketers use the communication function of the
Web as part of their online marketing strategies.
9. Outline the steps involved in developing successful e-business
Web sites and identify methods for assessing Web site
effectiveness.
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CHAPTER 4 E-Business: Managing the Customer Experience
The Digital World
o Almost three-quarters of the U.S. population access
the Internet at home, school, work, or public access
sites
o What do people do online?
o United States – Communication, information, and
purchases
o China – Downloading, streaming music, online gaming,
videogaming, and social networking
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CHAPTER 4 E-Business: Managing the Customer Experience
E-Business
o The wide range of business activities that take place via
Internet applications
o It can be divided into five broad categories:
o E-tailing
o Business-to-business transactions
o Electronic data interchanges (EDI)
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CHAPTER 4 E-Business: Managing the Customer Experience
E-Business
o Web-enabled communication tools and their use as
media for reaching prospective and existing customers
o The gathering and use of demographic, product, and
other information through Web contacts
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CHAPTER 4 E-Business: Managing the Customer Experience
E-Marketing
o Strategic process of creating, distributing, promoting,
and pricing goods and services to a target market over
the Internet or through digital tools
o Application of electronic tools to contemporary
marketing has the potential to:
o Greatly reduce costs
o Increase customer satisfaction
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CHAPTER 4 E-Business: Managing the Customer Experience
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 4 E-Business: Managing the Customer Experience
Web Business Models
o Corporate Web site - Designed to increase a firm’s
visibility, promote its offerings, and provide
information to interested parties
o Marketing Web site - Aim is to increase purchases by
visitors
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CHAPTER 4 E-Business: Managing the Customer Experience
Proprietary B2B Transactions
o Electronic data interchange
o Web services
o Extranets
o Intranets
o Private exchanges
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CHAPTER 4 E-Business: Managing the Customer Experience
B2C E-Marketing
o Selling directly to consumers over the Internet
o Benefits:
o Competitive pricing
o Access and convenience
o Personalized service
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CHAPTER 4 E-Business: Managing the Customer Experience
Challenges in E-Business and E-Marketing
o Safety of online payment
o Companies have developed secure payment systems to
protect customer information
o Encryption - Encoding data for security purposes
o Secure Sockets Layer - Technology that encrypts
information and provides authentication
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CHAPTER 4 E-Business: Managing the Customer Experience
Frauds and Scams
o Phishing
o Vishing
o Payment fraud
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CHAPTER 4 E-Business: Managing the Customer Experience
Site Design and Customer Service
o Not all Web sites are well designed and easy to use
o Merchandise delivery and returns pose challenges
o Companies that have brick-and-mortar stores often
have more experience satisfying customers than
Internet-only retailers
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CHAPTER 4 E-Business: Managing the Customer Experience
Marketing and Web Communication
o The Internet has four main functions:
o E-business
o Entertainment
o Information
o Communication – most popular function
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CHAPTER 4 E-Business: Managing the Customer Experience
Blogs and Podcasts
o Blog - Short for Web log— an online journal for an
individual or organization
o Some blogs incorporate wikis, a Web page that
anyone can edit
o Podcast - Online audio or video file that can be
downloaded to other digital devices
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CHAPTER 4 E-Business: Managing the Customer Experience
Promotions on the Web
o Banner ad
o Pop-up ad
o Preroll video ad
o Widget
o Search marketing
o Online coupons
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CHAPTER 4 E-Business: Managing the Customer Experience
Building an Effective Web Presence
o An e-business Web site can:
o Broaden customer bases
o Provide immediate access to current catalogs
o Accept and process orders
o Offer personalized customer service
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 4 E-Business: Managing the Customer Experience
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 4 E-Business: Managing the Customer Experience
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.