Transcript Business-to-consumer Internet Marketing

Business-to-consumer Internet
Marketing
Week 13
Some Definitions
• Virtual or electronic mall – a web site that
brings together different electronic retailers
at a single virtual (online) location.
• Destination store – a retail store which the
merchandise, selection, presentation,
pricing or other unique feature acts as a
magnet for customers
Internet Retail Market (IRM)
• Established retailers using the IRM strategically or
tactically as a marketing tool
• Virtual merchants designing their operating format
to accommodate the demands of online trading
• Intermediaries who link Internet technology and
retail suppliers with the consumer
• Manufacturers using the Internet to take their
goods direct to the consumer
A Model of Internet Retail
Market
Manufacturers
Existing retailers
Fixed
location
Non-store
Virtual merchants
Own
distributor
Other
distributors
Internet retail
market
Replace current
trading environment?
Intermediaries
Complement current
trading environment?
Types of retail companies
• Those operating from fixed-location stores,
such as department and convenience stores
• Non-store-based operations, such as
catalogue retailing and direct selling
• Internet retailing has rapidly emerged
emulating non-store-based operations
Components of IRM
• Online retailers
• Online consumers
• Online products
Informational Functions
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Product information
Financial information
Company information
Educational information
Press releases
Recruitment information
Interactive Functions
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Marketing communication tool
Direct communications
Marketing research tool
Sales channel
Factors influencing adopter
behavior
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Accessibility
Costs
New markets
Technical considerations
Logistics
Themes affecting retail adoption
of IRM
• Internal inhibitors and facilitators
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Appropriate products
Resource availability
Strategic vision
Assessment strategy
• Environmental inhibitors and facilitators
– Competitive pressures
– Market for internet trade
– Technological considerations
• The Internet’s comparative advantage over existing retail channels
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Market development opportunities
Technological capabilities
Financial potential
Marketing opportunities
Ethical considerations