1. 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

2. Consumer Benefits of Web Marketing
Ability to pre-test and purchase products online
Reduced costs for industrial consumers

3. Company Benefits of Web Marketing
Reduction or elimination of distribution costs
Selling function is transferred to the customer
Opportunities to capture customer information

4. 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

5. 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

6. Classification of Commercial Web Sites
On-line storefront
Internet presence
flat ad
image and information

7. Classification of Commercial Web Sites
Content
fee-based
sponsored, searchable database
Mall
Incentive site

8. Effects of Electronic Commerce on Market Relationships
Relationships with producers
vertical integration
outsourcing
virtual corporation
Shift from vertical integration to virtual corporation

9. 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

10. 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

11. New Information Partnerships
Benefits of information partnerships:
sharing hardware and software investments
data sharing
increased sales opportunities
improved customer service

12. New Information Partnerships
Joint Marketing
Participating companies gain access to new markets and gain economies of scale
One channel, many services
Complementary relationship

13. New Information Partnerships
Intra-industry
Competitive companies pool resources for survival
Third party networks and industry associations manage relationship

14. New Information Partnerships
Buyer-Seller
Direct link between partner’s operations
Reduction of operations staff, paperwork

15. New Information Partnerships
IT Vendor-Driven
Technology provider gets new markets
Industry participants offer new services
Vendor can “beta test” new technologies

16. Securing Electronic Commerce
Authorization
Authentication
Integrity
Privacy
Theft
Sabotage