CHAPTER 8 Marketing for E-commerce 4/23/2017 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 MARKETING
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.
The New World of E-Commerce Business on the Net From bricks to dot.coms Stages of development Information stage Interaction stage Integration stage
The Internet and Marketing Advantages of e-commerce E-commerce disadvantages The marketing concept applied to e-commerce
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.
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 25.6 France 21.8 Italy 19.3 Russia 18.0 Canada 16.8
Businesses Uses of the Internet Business communications Information gathering Improving operations
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.
Distribution for E-Commerce Finding and buying products Order processing Product distribution
Average Cost Savings when Customers Use the Internet Product Savings Computer software 99% Banking services 89% Airline tickets 87% Stocks 78% Books 56% Toys and gifts 48%
Distribution Problems and Solutions Transaction security Expanded distribution and customer service
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.
Communicating with Internet Users Advertising expenditures Types of Internet promotion Online advertising Web sponsorship Priority placement Consumer information Other types of promotion
Promotion for E-Commerce Planning the shopping experience Effective promotion methods
Customer Satisfaction with Types of Shopping Type % satisfied Shopping online 73% Shopping with catalogs 56% Shopping in stores 60%
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