Transcript School of Management, HUST

Chapter 2
Electronic Markets
School of Management, HUST
1
Learning Objectives
Define the factors that determine the
business models of electronic marketing
Design the desirable relationship in a direct
marketing setting
Analyze the critical success factors of
electronic intermediaries
Identify the typical products that sold well in
the electronic market
School of Management, HUST
2
Learning Objectives (cont.)
 Describe the consumer’s shopping
procedures on the Internet
 Discuss the types of aiding-comparisonshopping devices
 Describe the impact of EC on
disintermediation and re-intermediation in
retailing
School of Management, HUST
3
Opening case---- Blue Nile
Blue Nile Changes the market of Jewelry
Selling diamonds online---E-retailing store
Change the traditional business model
Opportunities
basic EC model----low price----high allotment in
marketplace
detailed information of diamond
reliable classification of diamond
guaranteed drawback within 30 days
School of Management, HUST
4
Results
2003 revenue got to $129 million
the 8th specialized jewelry companies in the
USA
one of the most successful IPO in 2004
School of Management, HUST
5
Revelation
Electronic directory
Shopping cart
Customer services
Impact on trade
low cost & global business
School of Management, HUST
6
2.1 Electronic Marketplaces
 Concept
A marketplace in which sellers and buyers exchange goods and
services for money (or for other goods and services)
 Functions
 Matching buyers and sellers;
Facilitating the exchange of information, goods, services, and
payments associated with market transactions;
Providing an institutional infrastructure, such as a legal and
regulation framework, which enables the efficient functioning of
the market.
School of Management, HUST
7
Electronic Marketplaces (cont.)
 E-Marketplaces changed several of the processes
 Greater information richness
 Lower information search costs for buyers
 Diminished information asymmetry(不对称) between
sellers and buyers
 Greater temporal separation between time of
purchase and time of possession
 Greater temporal proximity between time of
purchase and time of possession
 Ability of buyers and sellers to be in different
locations
School of Management, HUST
8
Electronic Market (cont.)
 Elements of Electronic Market
Consumers
 Sellers
Products or services
Infrastructure
Front end (前端) (portal, electronic catalog, shopping-cart,
search engines, auction engines, payment gateway)
Back end (order handling, inventory management(库存管理）,
purchasing management, finance & accounting, payment
processing, packaging, delivery, etc.)
Intermediaries create online market , matching buyers and
sellers
Other business partner supply chain
Support services (authentication, 3rd assurance, content
support)
School of Management, HUST
9
Electronic Market (cont.)
 Types of Electronic Market
Private electronic market
Sell-side e-market (1- m) for example: Cisco Corp.
Buy-side e-market (m-1)
Public electronic market
Business-oriented Electronic Marketing (B2B)
Needs more precise record keeping, track ability,
accountability, and formal contracts, usually with high
volume of transactions and large amount payments
School of Management, HUST
10
2.2 Business Model of E-market
Direct Marketing Manufacturers
Vs.
Indirect Marketing Manufacturers
Active Strategic Posture
Vs.
Re-active Strategic Posture
Global Marketing
Vs.
Regional Marketing
Electronic Store
Vs.
Electronic Mall
Sales
Vs.
Customer Services
Full Cybermarketing
Vs.
Partial Cybermarketing
Electronic Store
Vs.
Electronic Broker（经纪人）
Generalized Mall
Vs.
Specialized Mall/Store
School of Management, HUST
11
2.3 Direct Marketing
 Active and full direct Marketing
Dell Computer Corporation Case
Founding spirit of dell: e-marketing
Astonishing high growth and returns
Revenue via the Internet
Dell’s products on the Internet
School of Management, HUST
12
Direct Marketing (cont.)
Dell’s Critical Success Factors
Price competitiveness owing to masscustomization and direct marketing
Database marketing and customer intimacy
Global reach and value added services at a
single contact point
High reliability and reputation
Delivery support
Advanced web applications
School of Management, HUST
13
2.4 Online Customer Service
Provided in conjunction with online sales
Provided to products which are sold offline
Example: service and support homepage of
Hewlett Packard (HP)
By using computer telephone integration (CTI)
technology, the same screen that a customer
sees can be automatically displayed to the
human agent (and vice versa) who responds to
the customer’s call watching the online data
about the customer
School of Management, HUST
14
Active Electronic Intermediaries
 Pure electronic mall
Company’s retailing business exists only on the Internet
Electronic distributors
take full responsibility of fulfilling orders and collecting
payments
Electronic brokers
assist the search process of finding the appropriate
products and their vendors(suppliers)
 Partial electronic mall
Electronic mall as one of existing distribution channels
School of Management, HUST
15
Flow of information
Products & Services
Information
intermediaries
seller
Advertisement
Buyers info
buyers
Matching
Matching
Searching
Searching
Private
Private
Infrastructure
Infrastructure
Content
Content
Community
Community
Flow of products / services
Transaction
Member
Figure 2.1 Information intermediaries
School of Management, HUST
Member
Transaction
Advertisement
16
Active Electronic Intermediaries (cont.)
Generalized Electronic Intermediaries
Examples : Choice Mall, and iMall
Provide a directory, keyword search engine, message
encryption(加密), optional Web site hosting service and a
common platform of electronic payments
Necessary factors to make shopping successful
 Screening quality and reliability for assurance
• customers need a reliable screening capability of quality and
reliability of brands and companies
• e-brokers should create a trusted third party
 Competing electronic channels
• several electronic channels help in finding the items needed
• e-brokers should provide some differentiated attraction
School of Management, HUST
17
Active Electronic Intermediaries (cont.)
Specialized Electronic Distributors
Cyber Bookstores
Amazon, Barnes and Noble
Cyber CD Stores
Columbia House, Music Boulevard, CD Universe,
and CDNow
Digitized Products and Services Stores
Software, games, CDs, and videos
Cyber Flower Stores
1800-Flowers.com
School of Management, HUST
18
Reactive Electronic Department Store (cont.)
Electronic Department Stores Worldwide
Marks & Spencer in the U.K., La Redoute in France,
Jusco in Japan, Nordstrom in the U.S.A., and Lotte
and Hyundai in Korea
Common strategy is finding significant benefits from
merchandising online
Offering electronic service on the Internet is a
supplementary channel of advertisement
In the U.S. almost all the major retailing have done
online
School of Management, HUST
19
2.5 Procedures for Internet Shopping :
The Consumer’s Perspective (cont.)
Preliminary requirement determination to meet the
needs
 Search for the available items that can meet the
requirements
 Compare the candidate items with multiple
perspectives: specification, price, delivery date, and
other items and conditions
Place an order
Pay the bill
Receive the delivered items and inspect; possibly while
using
Contact the vendor to get service and support, or to
return if disappointed

School of Management, HUST
20
Aiding Comparison Shopping
Search hypertext(超文本) files by agents
Search in a web-based database both by
human and software agents within an e-mall
Comparable item retrieval(检索) and tabular (列
表)comparison
Comparisons over multiple malls
Comparisons as a multiple criteria decision
making
School of Management, HUST
21
BestBook Buys.com Finds the Best Price
 Best Book Buys has won the 1998 “Coolest Book Site of the Year”
Award at the fourth annual Cool Site of the Year Awards in New York
City,beating out Amazon,Barnes&Noble,Borders,and Audio Book
Club.
 The Best Book Buys search engine searches 18 electronic bookstores
including Amazon and Barnes & Noble. Agents collect these data and
display them in a comparison table.Try to find a book through Best
Book Buys.com. Find out the prices of the book at Amazon and
Barnes & Noble
1. Does Amazon or Barnes & Noble offer the cheapest price?
2.Will you still order from Amazon or Barnes&Noble?
3.What is the expected behavior of overall book buyers?
4.Will Amazon allow the visit of agents for price comparison ?
5.If the lowest price is not the most attractive aspect of a certain
cyber-book-store,what should be a differentiated benefit to offer to the
customers?
School of Management, HUST
22
Managerial Issues
From a manufacturer’s point of view:
Fully committed to
direct marketing,
restructuring the
current manufacturing
and distribution systems
OR
Regard the electronic
store as an additional
channel of distribution
School of Management, HUST
23
Managerial Issues (cont.)
From an intermediary’s point of view:
Commit to the
directory service
OR
Retailing a
specialized breed
of items
For existing retailer in the physical space:
How to transform its business posture to get the
highest possible customer satisfaction at a
minimum operating cost?
School of Management, HUST
24
School of Management, HUST
25
School of Management, HUST
26
School of Management, HUST
27
School of Management, HUST
28
School of Management, HUST
29
School of Management, HUST
30
Exercises
 Matt. Remes 开办了一家小企业，并创建了一个电
子商务网站向订阅者销售专题通讯，从《苹果种植文
摘》到《野外徒步旅行通讯》等各种专题。由于有很
多组织和个人都在销售这方面专题通讯，你的工作任
务就是提高你们的专题通讯的知名度。所有专题通讯
都是半月刊或月刊。与传统订阅服务不同的是，你同
出版商达成协议，可按单期或三年期来销售订阅权。
你不想让订阅者用结算卡办理两年以内的订阅服务，
但60%以上的新用户在购买一年以上的订阅权之前希
望看到样刊。讨论并提出可能的解决方案，提出哪种
不依赖订阅者所持信用卡的系统。
School of Management, HUST
31
Evan Moskowitz 开了一家在线讲授计算机课
程的网络公司，名为Teach-U-Comp。最先提
供的课程主要是程序设计语言，包括Visual
Basic, .NET, Java, C#, 学生任意选课，每门
课四周学完，收费为95美元/门，学生按课程
进度和难度继续学习其他课程。 Evan忙着创
建在线内容，并安装课程传输软件。请帮助
Evan了解目前除信用卡结算系统之外实现电
子钱包系统的可行性，调查两种电子钱包软件
。
School of Management, HUST
32
 假设你是一家大型工业设备分销商MEI公司聘请的信息技术顾问
，这家公司的产品包括流水线和包装线使用的物流设备、液压设
备、软管等。MEI已有70年的历史了，每年向3，000个客户销售
2亿多美元的零件和设备。客户分布世界各地。公司和其他三家
合作伙伴共同建立了一个门户网站，MEI公司的销售主管乔已经
成立了一个小组来测试门户网站的便捷性，成员包括销售、财务
、工程和IT服务部门的员工。这个小组已提出在推出门户网站之
前要解决的安全问题。乔希望你帮助小组成员了解有关电子商务
安全方面的几个问题。
1、什么是数字证书？什么是加密技术？它分为哪几类？
2、MEI建立门户网站后，要求每个客户都要有数字证书，数字证书
是怎样获取的？它包括哪些基本的信息？
3、对于客户而言，为什么要先有数字证书？
School of Management, HUST
33