How is the internet used? How can I satisfy customers?

 The conducting of business and communication transactions by electronic means

Bricks and mortar business  A business with an actual physical location, or store front  Ex. McDonalds Multi channel retailer  A retailer that sells its product via traditional channels as well as via an online channel  Ex. Dicks Sporting goods Pure play retailers  Sell primarily through the internet  Ex. Amazon.com

 Fastest growing form of commerce in the world

 Any process a business conducts over a computer network Video conferencing

 save time by not going to a store  can shop when stores are closed  avoid the holiday crowds  might be able to find better prices  can find products online more easily  find products not available in stores  easier to compare prices  have gifts sent directly to recipient  can avoid wrapping gifts  can earn loyalty points  purchase from wish list

Limitless buyers  Number of potential buyers is limitless Open 24/7  All hours, e-commerce offers a distinct advantage to customers

Advertise, Market, and Analyze  Effective and inexpensive ways to reach new and existing customers  Track purchasing habits Brand loyalty  Refers to a customers preference for a particular product Managing inventory  Online retailers eliminate the cost of inventory storage

Meeting Customer Needs  Caters to individualized special choices rather than made-to-stock Mass customization  Is the production of goods that offer specialized choices to mainstream buyers Value chain  The sequence of design, production, and marketing efforts a business conducts to deliver its products at the right place and time

Starting Out  A virtual store front is much faster, easier, and cheaper to set up than a bricks and mortor store Pricing competitively  price is often the factor that makes or breaks the sale Elastic demand  Pricing changes create a change in the amount of goods or services consumers are willing to buy at a certain price

B2B  business to business, ex. School Supply Store B2C  business to consumer ex. Office Depot C2C  consumer to consumer, ex. Ebay

Retailers  Are establishments that sell goods and services to the general public Wholesalers  Sell products to distributors or retailers and not usually the end-user market Etailing  The buying and selling of retail goods on the internet

Interactive notes activity

 etailing increases a businesses customer base  Websites attract new customers  Customers can shop from their homes  A businesses online store is never closed  Customers can shop 24/7, regardless of weather, traffic jams, or distance from the retail store  A well designed, easy to use, and frequently updated website is a valuable channel for any business

 Customers are reluctant to release personal information on a website  Customers are concerned about the security of their credit card accounts  Transactions may be interrupted on the Internet  Customers are unable to examine merchandise or try on clothing

Refers to the way the producer or manufacturer delivers products, services, or information to the consumer

Channels of distribution  The path a product takes from producer or manufacturer to consumer Intermediary  A business that acts as a third party or go- between in moving products from the manufacturer to the end user Cybermediary  Is an internet channel of distribution that helps move products from the manufacturer to the consumer or industrial user

 Direct doesn’t use intermediaries, indirect does  Examples of direct  1. catalog sales – East Bay, LL Bean  2. Home Shopping Network  3. internet only companies  What is a “channel captain?” Company that controls the channel Ex. Walmart