Transcript Chapter 8 Notes

CHAPTER 8
Marketing for
E-commerce
8.1 What Is E-Commerce?
8.2 The Growing Importance of E-Commerce
8.3 Impact of E-Commerce on Distribution
Channels
8.4 Role of Promotion for E-Commerce
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WHAT IS E-COMMERCE?
GOALS for Lesson 8.1
Describe the differences between
dot.com businesses and bricks and
mortar businesses.
Discuss the importance of a marketing
orientation to successful e-commerce.
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The New World
of E-Commerce
Business on the Net
From bricks to dot.coms
Stages of development
 Information stage
 Interaction stage
 Integration stage
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The Internet
and Marketing
Advantages of e-commerce
E-commerce disadvantages
The marketing concept applied to
e-commerce
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THE GROWING IMPORTANCE
OF E-COMMERCE
GOALS for Lesson 8.2
Identify evidence of the growth of the
Internet.
Describe the various business uses of
the Internet for e-commerce.
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Growth of the Internet
Countries with the highest number of Internet
users in 2003 (in millions)
United States
132.2
Japan
56.0
China
45.8
Germany
44.1
United Kingdom 34.3
South Korea
France
Italy
Russia
Canada
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25.6
21.8
19.3
18.0
16.8
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Businesses Uses
of the Internet
Business communications
Information gathering
Improving operations
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IMPACT OF E-COMMERCE ON
DISTRIBUTION CHANNELS
GOALS for Lesson 8.3
Describe new distribution methods
using the Internet.
Identify distribution problems
experienced by e-business.
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Distribution
for E-Commerce
Finding and buying products
Order processing
Product distribution
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Average Cost Savings when
Customers Use the Internet
Product
Computer software
Banking services
Airline tickets
Stocks
Books
Toys and gifts
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Savings
99%
89%
87%
78%
56%
48%
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Distribution Problems
and Solutions
Transaction security
Expanded distribution and customer
service
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ROLE OF PROMOTION
FOR E-COMMERCE
GOALS for Lesson 8.4
Describe how companies use promotion
on the Internet.
Identify ways to increase the
effectiveness of online promotion.
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Communicating
with Internet Users
Advertising expenditures
Types of Internet promotion
 Online advertising
 Web sponsorship
 Priority placement
 Consumer information
 Other types of promotion
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Promotion for
E-Commerce
Planning the shopping experience
Effective promotion methods
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Customer Satisfaction
with Types of Shopping
Type
% satisfied
Shopping online
73%
Shopping with catalogs
56%
Shopping in stores
60%
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Features Likely to
Increase Online Purchasing
 Close-up images of products
 Information on product availability
 Product comparison guides
 An easy-to-use search function
 1-800 Customer Service number
 Consumer reviews and product evaluations
 An easy-to-use “shopping cart” and check
out feature
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