Basic Marketing, 16e - McGraw Hill Higher Education
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Transcript Basic Marketing, 16e - McGraw Hill Higher Education
Chapter 5
Electronic Commerce:
Strategies for the New
Economy
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
INTRODUCTION
E-commerce is changing everything
Electronic commerce (ecommerce) – commerce, but it is
commerce accelerated and enhanced
by IT
Build powerful relationships with
customers
Build powerful relationships with suppliers
Build powerful relationships with partners
5-2
E-COMMERCE BUSINESS
MODELS
5-3
B2B & B2C E-Commerce
B2B e-commerce – business sells
products and services to customers
who are primarily other businesses
Where all the e-commerce money is
B2C)e-commerce – business sells
products and services to customers
who are primarily individuals
B2C is the glitzy e-commerce like
iTunes, eBay, etc
5-4
UNDERSTAND YOUR BUSINESS,
PRODUCTS, SERVICES, &
CUSTOMERS
To be successful, you must…
Define your products and services
Define your target customers
B2B (other businesses)
B2C (individuals)
Define your customers perception of the
value of your products and services
5-5
B2C: Convenience Versus
Specialty
Convenience vs. specialty
Lower vs. high priced
Frequency of purchase
Food items vs. stereos and computers
Commoditylike and digital
Same no matter where you purchase it
Delivered over the Internet
Best product types for B2C e-commerce
5-6
B2B: Horizontal Versus Vertical
E-Marketplaces
Electronic
marketplace (emarketplace) –
interactive business
providing a central
market where
multiple buyers and
sellers can engage
in e-commerce
5-7
FIND CUSTOMERS AND
ESTABLISH RELATIONSHIPS
You must first find customers
Then establish relationships
Otherwise, you can’t make a sale
B2C and B2B techniques are very
different
5-8
Business to Consumer
Determine your marketing mix set of marketing tools your
organization will use to pursue its
marketing objectives in reaching and
attracting potential customers
Search engines
Online ads
Viral marketing
Affiliate programs
5-9
Business to Business Marketing
Much more personal
Not usually done with generic ads
designed for mass distribution
Often take place in e-marketplaces
5-10
MOVE MONEY EASILY &
SECURELY
In e-commerce, security becomes
very important
B2C
Credit cards, financial cybermediaries,
electronic checks, EBPP, & smart cards
B2B
Electronic data interchange (EDI)
Value-added networks (VANs)
Financial EDI
5-11
E-BUSINESS TREND – LONG
TAIL
Long Tail –
first offered
by Chris
Anderson;
explains ecommerce
profitability
in terms of a
sales curve
5-12
E-BUSINESS TREND CROWDSOURCING
Crowdsourcing – when businesses
provide enabling technologies that
allow people – instead of designated
employees – to create, modify, and
oversee the development of a
product or service.
Netflix – gave a million $$ to improve
its recommendation engine by 10%
eBay, Facebook, Twitter, YouTube
5-13
E-BUSINESS TREND –
VIRTUAL GOODS
Virtual good – nonphysical object
Music
E-cards
Toys, weapons, clothes, and accessories
you buy in online communities like
Farmville and World of Warcraft
2007 - $2.1 billion
2010 - $7.3 billion (245% increase)
2014 - $14 billion (projected)
5-14
E-BUSINESS TREND – MOBILE
COMMERCE
Mobile commerce – electronic
commerce transactions conducted
over a wireless device such as a
smartphone, laptop, or tablet PC.
5-15