Consumer Benefits of Web Marketing Access to greater amounts of dynamic information to support queries for consumer decision making Deep, nonlinear searches are customer-driven, not firm-driven
Consumer Benefits of Web Marketing Ability to pre-test and purchase products online Reduced costs for industrial consumers
Company Benefits of Web Marketing Reduction or elimination of distribution costs Selling function is transferred to the customer Opportunities to capture customer information
Company Benefits of Web Marketing Increased interaction between buyer and seller Competition based on “specialty” rather than price Reduced errors, costs, and time for information processing
Company Benefits of Web Marketing Reduced costs to suppliers on-line databases of bid opportunities on-line ability to submit bids on-line review of awards Creation of new markets and segments
Classification of Commercial Web Sites On-line storefront Internet presence flat ad image and information
Classification of Commercial Web Sites Content fee-based sponsored, searchable database Mall Incentive site
Effects of Electronic Commerce on Market Relationships Relationships with producers vertical integration outsourcing virtual corporation Shift from vertical integration to virtual corporation
Effects of Electronic Commerce on Market Relationships Change in buyer-seller relationship eliminating the middleman relationship marketing reduced product and market complexity, increased market penetration
Effects of Electronic Commerce on Market Relationships Change in buyer-seller relationship (cont’d) new technologies electronic catalogs and on-line shopping on-line consultation and sales database marketing real-time interactive customer interaction
New Information Partnerships Benefits of information partnerships: sharing hardware and software investments data sharing increased sales opportunities improved customer service
New Information Partnerships Joint Marketing Participating companies gain access to new markets and gain economies of scale One channel, many services Complementary relationship
New Information Partnerships Intra-industry Competitive companies pool resources for survival Third party networks and industry associations manage relationship
New Information Partnerships Buyer-Seller Direct link between partner’s operations Reduction of operations staff, paperwork
New Information Partnerships IT Vendor-Driven Technology provider gets new markets Industry participants offer new services Vendor can “beta test” new technologies
Securing Electronic Commerce Authorization Authentication Integrity Privacy Theft Sabotage