1. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo Electronic Marketing Chapter 6 Concept of the Virtual Store for Marketing Products and Services

2. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo Retailing Approaches: Virtual versus Tangible Follow the functions of the traditional retailer but as a “back office operation,” hidden from public Web site merchandise represented by invisible electronic data entries Generally prices are lower because of reduced operating/overhead costs

3. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo Retailing Approaches: Virtual versus Tangible Housed and promoted on electronic media (Web sites, e- mail, listservs, discussion groups, so forth) Interactive ordering and shipped directly from manufacturer Interactive customer service in “real time”

4. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo The Advantages of a Virtual Store Expand awareness of store existence and merchandise offered Increase sales areas to a wider geography Promotional flexibility as to purpose of Web presence Online sales Online advertising Online customer service Sales or communications activities

5. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo The Advantages of a Virtual Store Capital expenditure less in starting online consumer or business-to-business marketing progress Flexibility in being able to sell from any location Web sites operate 24/7, valuable to marketers selling overseas Corporate credentials or catalog/specifications sheets can be printed from the Web site Electronic systems to update prices, specifications or other time-sensitive data hourly if necessary Promotions can be integrated quickly into the company’s Web site

6. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo The Advantages of a Virtual Store Customers’ inquiries can be investigated more quickly The Web allows companies to render fast and responsive customer services Order status obtained immediately Opportunity to test new products and services among wide or targeted markets Experimentation with new technology Discussion/listserv forums are effective feedback mechanisms from selected market segments or test group

7. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo The Disadvantages of a Virtual Store Not every product or service is appropriate to Web sales. Web site creation, product offerings’ updates, and site maintenance require extensive time on the marketer’s part. The 24/7 service pledge is a double-edged sword. Web competitive marketing is a time-intensive activity –A good Web master should be surfing the competition at least one afternoon each week –Double checking the position ranking on search engines is important

8. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo The Disadvantages of a Virtual Store Marketer is dependent on redundant systems equipment, communications, and its ISP connections Another double-edged sword is the anonymity of identity on the Web –Limited penetration and exposure to the Web by the general public

9. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo The Value of the Virtual Storefront and the Cybermall Plan strategically by playing from your electronic marketing strengths Reliability Consistency Privacy Accessibility Accuracy Responsiveness

10. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo The Value of the Virtual Storefront and the Cybermall Retailing power builds on the fundamental usage nature of the Internet Demographics of connectivity Content Customer motivation

11. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo The Value of the Virtual Storefront and the Cybermall A Cybermall: the banding together of several cyberstores, giving the merchandise one location or address A “linked storefront” is an alternative to banding with a cybermall; the storefront address is hyperlinked within a popular general interest site such as Starbucks’ site

12. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo Security Concerns: Reasons for Not Purchasing Online Providing credit information online is “just plain foolish” Providing credit/purchase information online Toll-free call/fax is tied with secure transmission Clear preference for the involvement of a third party in the transaction; preference for involvement by a credit card company or the bank

13. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo What Are Online Information Seekers Seeking? Finance Web sites were found to be the “stickiest” of all – 44% have visited a financial Web site at least once Consumers appear to navigate through commercial sites for information Cyber merchants must recognize the payment transaction is risky, so the perception and reality of secure payment must be addressed in a fail-safe manner

14. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo Deciding on Online Marketing Objectives What are the appropriate goals for online marketing of your product or service? The “competitive difference” of this online vehicle compared to traditional media is online interactivity with customers Sampling might include free incentives such as a free online quotation for auto or life insurance

15. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo E-Commerce Image and Identity Development Identify qualities your target market would value in online awareness and delivery Building image is the “impression” that the marketer wants the market to have of the product or service A purpose of a brand name is to differentiate similar products

16. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo Searching for Product or Service Differentiation The marketer should consider traits, perceived or real, as the foundation of a differentiation strategy that hopefully no other competitor can easily match Strategy of selecting different features valued by different people is called a “niche marketing” strategy

17. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo Searching for Product or Service Differentiation Customization and personalization are critical factors in creating and sustaining competitive advantage on the Internet Personalization of services and the development of new services such as online help facilities that are based on the experience of multiple users Marketers can capture more of the “value chain” for their products; example might be eliminating distributors or suppliers

18. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo Searching for Product or Service Differentiation Other differentiation strategies have been developed from: –Countries of origin: French wine, Swiss watches, American entertainment –Ethnic groups: Jewish bagels, Chinese fortune cookies, Cuban bread –Geographical locations: California’s Napa Valley wine, Colombian coffee

19. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 5/9/2015  2004 Joel Reedy and Shauna Schullo Searching for Product or Service Differentiation Other Differentiation strategies have been developed from: –Usage patterns: Dr. Pepper 10-2-4, brushing teeth followed by mouth wash –Special occasions: Anniversary diamonds by DeBeers, graduation wrist watches –Celebrations or time: Korbell champagne at New Year’s, Thanksgiving turkeys