1 CHAPTER 8 8-1 8-2 8-3 8-4 E-COMMERCE AND VIRTUAL MARKETING What Is E-Commerce? The Growing Importance of E-Commerce Virtual Marketing and Distribution The Role of Promotion for E-Commerce Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 2 Courtesy, CISCO SYSTEMS, INC. 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? Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 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 MARKETING © 2009 South-Western, Cengage Learning 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 Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 5 Success in E-commerce Advantages of e-commerce Disadvantages of e-commerce The marketing concept applied to ecommerce Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 6 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 MARKETING © 2009 South-Western, Cengage Learning 7 Growth of the Internet Countries with the highest number of Internet users in 2007 (in millions) Country United States China Japan Germany India United Kingdom Chapter 8 Number of Users Country 211 137 86 51 40 37 South Korea Brazil France Italy Russia Canada MARKETING Number of Users 34 32 31 31 24 22 © 2009 South-Western, Cengage Learning 8 Business Uses of the Internet Communicating Gathering information Improving operations Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 9 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 MARKETING © 2009 South-Western, Cengage Learning 10 Distribution for E-Commerce Finding and buying products Order processing Product distribution Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 11 Cost Savings Average Cost Savings for Businesses when Customers Use the Internet to Make Purchases Product Computer software Savings 99% Banking services Airline tickets Stocks 89% 87% 78% Books Toys and gifts 56% 48% Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 12 Distribution Problems and Solutions Transaction security Expanded distribution and customer service Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 13 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 MARKETING © 2009 South-Western, Cengage Learning 14 Communicating with Internet Users Advertising expenditures Promotion methods Online advertising Web sponsorship Priority placement Information websites Other types of promotion Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 15 Preparing for E-Commerce Marketing Planning the shopping experience Effective promotion methods Chapter 8 MARKETING © 2009 South-Western, Cengage Learning 16 Customer Satisfaction with Types of Shopping Type Shopping online Shopping in stores Shopping with catalogs Chapter 8 MARKETING % satisfied 73% 60% 56% © 2009 South-Western, Cengage Learning 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 MARKETING © 2009 South-Western, Cengage Learning
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