1. E-COMMERCE AND VIRTUAL MARKETING
CHAPTER 08
7/24/2019
CHAPTER 8
E-COMMERCE AND VIRTUAL MARKETING
8-1 What Is E-Commerce?
8-2 The Growing Importance of E-Commerce
8-3 Virtual Marketing and Distribution
8-4 The Role of Promotion for E-Commerce
Chapter 8
MARKETING

2. Chapter 8 Focus Questions:
Do you agree that using the Internet is the same as socializing and shopping with your friends at the mall?
What problems might a business encounter if it tries to use the Internet only to sell products without realizing the other ways people use the Internet?
Courtesy, CISCO SYSTEMS, INC.
Chapter 8

3. 8-1 WHAT IS E-COMMERCE? GOALS
Describe the three stages of development for e-commerce businesses.
Discuss the importance of the marketing concept to successful e-commerce.
Chapter 8

4. The Expanding World of E-Commerce
Business on the net
From bricks to clicks
Stages of development
Information stage
Interaction stage
Full integration stage
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5. Success in E-commerce Advantages of e-commerce
Disadvantages of e-commerce
The marketing concept applied to e-commerce
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6. GROWING IMPORTANCE OF E-COMMERCE
8-2
GROWING IMPORTANCE OF E-COMMERCE
GOALS
Identify evidence of the growth of the Internet.
Describe the various business uses of the Internet for e-commerce.
Chapter 8

7. Growth of the Internet Chapter 8
Countries with the highest number of Internet users in 2007 (in millions)
Number Country of Users
United States 211
China 137
Japan 86
Germany 51
India 40
United Kingdom 37
South Korea 34
Brazil 32
France 31
Italy 31
Russia 24
Canada 22
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8. Business Uses of the Internet
Communicating
Gathering information
Improving operations
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9. VIRTUAL MARKETING AND DISTRIBUTION
8-3
VIRTUAL MARKETING AND DISTRIBUTION
GOALS
Differentiate virtual marketing from traditional marketing.
Describe distribution methods used in e-commerce.
Identify distribution problems experienced by e-businesses and how they can be resolved.
Chapter 8

10. Distribution for E-Commerce
Finding and buying products
Order processing
Product distribution
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11. Cost Savings
Average Cost Savings for Businesses when Customers Use the Internet to Make Purchases
Product
Savings
Computer software
99%
Banking services
89%
Airline tickets
87%
Stocks
78%
Books
56%
Toys and gifts
48%
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12. Distribution Problems and Solutions
Transaction security
Expanded distribution and customer service
Chapter 8

13. THE ROLE OF PROMOTION FOR E-COMMERCE
8-4
THE ROLE OF PROMOTION FOR E-COMMERCE
GOALS
Describe how companies use promotion on the Internet.
Identify ways to increase the effectiveness of online promotion.
Chapter 8

14. Communicating with Internet Users
Advertising expenditures
Promotion methods
Online advertising
Web sponsorship
Priority placement
Information websites
Other types of promotion
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15. Preparing for E-Commerce Marketing
Planning the shopping experience
Effective promotion methods
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16. Customer Satisfaction with Types of Shopping
% satisfied
Shopping online
73%
Shopping in stores
60%
Shopping with catalogs
56%
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17. Features Likely to Increase Online Purchasing
Close-up images of products
Information on product availability
Product comparison guides
An easy-to-use search function
Toll-free customer service number
Consumer reviews and product evaluations
An easy-to-use “shopping cart” and check out feature
Chapter 8