Marketing in the Internet Age Chapter Three Lecture Slides Express Version Course Professor Date

Looking Ahead After studying this chapter, you should be able to: Identify the major forces shaping the new Internet Age Explain how companies have responded to the Internet and other powerful new technologies with e-business strategies, and how these strategies have resulted in benefits to both buyers and sellers Describe the four major e-commerce domains Discuss how companies go about conducting e-commerce to profitably deliver more value to customers Overview the promise and challenges that e-commerce presents for the future ©Copyright 2004, Pearson Education Canada Inc.

Forces Shaping the Internet Age Digitalization & Connectivity Extranets Intranets Explosion of the Internet New types of intermediaries Click-only Click & mortar Customization & Customerization Digitalization & connectivity The explosion of the Internet The Internet Age Customization & customerization New types of Intermediaries Figure 3-1 ©Copyright 2004, Pearson Education Canada Inc.

“E” Terms E-business: the use of electronic platforms to conduct a company’s business E-commerce: buying and selling processes supported by electronic means E-markets are marketspaces E-marketing: efforts to communicate about, promote, and sell products and services over the Internet E-purchasing (E-procurement): purchasing goods, services, and information from online suppliers ©Copyright 2004, Pearson Education Canada Inc.

Benefits to Buyers Convenience Privacy Greater product access and selection Information Interactive shopping Immediate results ©Copyright 2004, Pearson Education Canada Inc.

Benefits to Sellers Customer relationship building Cost savings Increased speed Increased efficiency Flexibility Global reach ©Copyright 2004, Pearson Education Canada Inc.

E-Commerce Domains Business to consumer (B2C) Business to business (B2B) Open trading networks Private trading networks Consumer to consumer (C2C) Consumer to business (C2B) Targeted to consumers Targeted to businesses Business B2C Consumer Business B2B Initiated by business Consumer C2C Consumer C2B Business Initiated by consumer ©Copyright 2004, Pearson Education Canada Inc. Figure 3-2

Conducting E-Commerce Seller Brick & mortar store channels Consumers Brick-only marketers Seller E-Commerce channels Consumers Click-only marketers Brick & mortar store channels Seller Consumers E-Commerce channels Click-and-mortar marketers ©Copyright 2004, Pearson Education Canada Inc. Figure 3-3

Sources of E-Commerce Revenue Product and service sales income Advertising income Sponsorship income Alliance income Membership and subscription income Profile income Transaction commissions and fees Market research and information fees Referral income ©Copyright 2004, Pearson Education Canada Inc. Table 3-1

Types of Web Sites Corporate web site: builds customer goodwill and supplements other sales channels, rather than selling the company’s products directly Example: McDonalds Marketing web site: engages consumers in interactions that will move them closer to a direct purchase or other marketing outcome Examples: Toyota Kraft Canada. ©Copyright 2004, Pearson Education Canada Inc.

7 C’s of Effective Web Site Design Context: layout and design elements Content: text, pictures, sound and video Community: enabling user-to-user communication, such as discussion groups or forums Customization: tailoring the site to different users or allowing users to personalize the site Communication: enabling site-to-user, user-to-site, or two-way communication Connection: linking to other sites that the user might be interested in Commerce: enabling commercial transactions ©Copyright 2004, Pearson Education Canada Inc.

Advertising, Communities, & Webcasting Online advertising: advertising that appears while consumers are surfing the Web Viral marketing: e-mail messages or other marketing events that are so infectious that customers will want to pass them along to friends Web communities: web sites where members can congregate online and exchange opinions Webcasting: the automatic downloading of customized information to recipients’ PCs ©Copyright 2004, Pearson Education Canada Inc.

Challenges of E-Commerce Limited consumer exposure and buying Skewed user demographics Chaos and clutter Security Ethical concerns ©Copyright 2004, Pearson Education Canada Inc.

Looking Back Major forces shaping the Internet age How companies are responding to the Internet and new technologies Major e-commerce domains Conducting e-commerce to deliver more value Challenges of e-commerce ©Copyright 2004, Pearson Education Canada Inc.