© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience 1

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Objectives 1.Describe the growth of Internet use worldwide. 2.Define e-business and e-marketing, and list the opportunities e-marketing presents. 3.Distinguish between a corporate website and a marketing website. 4.List the major forms of B2B e-marketing. 5.Explain business-to-consumer (B2C) e-marketing. 2

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Objectives 6.Identify online buyers and sellers. 7.Describe some of the challenges associated with online marketing and e-business. 8.Discuss how marketers use the communication function of the Web as part of their online marketing strategies. 9.Outline the steps involved in developing successful e-business websites and identify methods for assessing website effectiveness. 3

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience The Digital World More than three-quarters of the U.S. population access the Internet What do people do online? – United States – Communication, information, and purchases – China – Downloading, streaming music, online gaming, videogaming, and social networking The benefits and potential of e-business outweigh the concerns and problems 4

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience E-Business Wide range of business activities that take place via Internet applications It can be divided into five broad categories: – E-tailing – Business-to-business transactions – Electronic data interchanges (EDI) – , instant messaging, blogs, podcasts, vlogs (video blogs), and other Web-enabled communication tools – The gathering and use of demographic, product, and other information through Web contacts 5

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience E-Marketing Strategic process of creating, distributing, promoting, and pricing goods and services to a target market over the Internet or through digital tools Has the potential to: – Greatly reduce costs – Increase customer satisfaction Online marketing - Activities that connect buyers and sellers electronically through interactive computer systems 6

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Table E-Marketing Capabilities 7

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Web Business Models Corporate website - Designed to increase a firm’s visibility, promote its offerings, and provide information to interested parties – Build customer goodwill – Assist channel members in their marketing efforts Marketing website - Main purpose is to increase purchases by visitors 8

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience B2B E-Marketing Use of the Internet for business transactions between organizations Tools used: – EDI – Web services – Extranets – Private exchanges – Electronic exchanges – E-procurement 9

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience E-procurement on Open Exchanges E-Procurement - Use of the Internet to solicit bids and purchase goods and services from suppliers – Offers benefits to the public sector 10

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience B2C E-Marketing Selling directly to consumers over the Internet – Also called e-tailing – Driven by convenience and improved security for transmitting financial information – Service providers are important participants in e- tailing 11

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Electronic Storefronts Company website that sells products to customers Items for purchase are placed in an electronic shopping cart – Electronic shopping cart - File that holds items the online shopper has chosen to buy 12

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Benefits of B2C E-Marketing Competitive pricing Access and convenience Personalized service 13

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Online Buyers and Sellers More than half of all users make at least one purchase online each month Half of all shoppers spend three quarters of total shopping time doing product research Many online shoppers are loyal and buy mostly from a single site Consumers’ online shopping experiences have been steadily improving in quality and convenience 14

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Challenges in E-Business and E- Marketing Safety of online payment Privacy issues Frauds and scams Site design and customer service Channel conflicts and copyright disputes 15

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Marketing and Web Communication The Internet has four main functions: – E-business – Entertainment – Information – Communication – Most popular function 16

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Marketing and Web Communication Online communities and social networks - Internet forums, newsgroups, electronic bulletin boards, and social networks that appeal to people with common interests Blogs and podcasts – Blog - An online journal for an individual or organization – Wikis - A webpage that anyone can edit – Podcast - Online audio or video file that can be downloaded to other digital devices 17

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Marketing and Web Communication Promotions on the web – Banner ad - Strip message placed in high-visibility areas of frequently visited websites – Pop-up ad - Separate window that pops up with an advertising message – Preroll video ad - Marketing messages that play before an online video – Widget - Tiny interactive applications that Internet users can copy and add to their own pages to play music, video, or slide shows – Search marketing - Paying search engines a fee to make sure that the company’s listing appears toward the top of the search results 18

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Building an Effective Web Presence An e-business website can: Broaden customer bases Provide immediate access to current catalogs Accept and process orders Offer personalized customer service This requires: Developing the site successfully Establishing goals Implementing and determining whether visitors return to site Pricing and maintenance 19

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Assessing Site Effectiveness Web-to-store shoppers - Consumers who use the Internet as a tool to aid them at brick-and- mortar retailers Click-through rate - Percentage of people presented with a banner ad who click on it Conversion rate - Percentage of visitors to a Web site who make a purchase Engagement - Amount of time users spend on sites 20

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 E-Business: Managing the Customer Experience Strategic Implications of Marketing in the 21st Century Bright future for marketers who continue to take advantage of the tremendous potential of e- business and e-marketing Cutting edge technology of today will be eclipsed within the next decade by newer technologies A marketing evolution for organizations has occurred – It embraces Internet technologies as essential parts of their marketing strategies 21