4.8 Ecommerce. Ecommerce Ecommerce: The buying and selling of goods and services on the Internet. Ecommerce: The buying and selling of goods and services

4.8 Ecommerce4.8 Ecommerce

EcommerceEcommerce Ecommerce: Ecommerce: The buying and selling of The buying and selling of

goods and services on the Internet.goods and services on the Internet.

Key features:Key features:

– Global Reach: Global Reach: no physical borders/boundariesno physical borders/boundaries– Ubiquity: Ubiquity: availability is 24/7 around the worldavailability is 24/7 around the world– Interactivity: Interactivity: two way communication between two way communication between

customercustomer and business and business

– Personalization: Personalization: marketing messages can be marketing messages can be customizedcustomized

– Information richness: Information richness: complex messages including complex messages including video,video, audio, and text audio, and text

– Universal standards: Universal standards: the Internet is standardized the Internet is standardized

Ecommerce ImpactEcommerce Impact Marketing Mix has been impactedMarketing Mix has been impacted

– ProductProduct

Consumers can be communicated with Consumers can be communicated with individuallyindividually

Custom services can be easily createdCustom services can be easily created(Airline tickets, hotel reservations, rental (Airline tickets, hotel reservations, rental cars)cars)

Custom products can be easily builtCustom products can be easily built(build your own car or computer)(build your own car or computer)

Larger stocking options because market Larger stocking options because market potential is greaterpotential is greater


– PricePrice

Prices can be easily comparedPrices can be easily compared Price discrimination is more difficult; Price discrimination is more difficult;

although last minute deals are possible to although last minute deals are possible to offer offer


– PromotionPromotion

Banners, pop-ups, text messages, web Banners, pop-ups, text messages, web pages are all NEW ways to promote productspages are all NEW ways to promote products

Promotional opportunities are greaterPromotional opportunities are greater Promotional materials and packaging may Promotional materials and packaging may

need to be altered as a global audience can need to be altered as a global audience can now be reachednow be reached


– PlacePlace The Internet is transforming how we buy; a The Internet is transforming how we buy; a

smaller proportion of goods is purchased a smaller proportion of goods is purchased a traditional stores.traditional stores.

Logistics systems to deliver products to all Logistics systems to deliver products to all corners of the world.corners of the world.

?

EcommerceEcommerce

– B2C:B2C: Selling of goods and services directly Selling of goods and services directly from a from a BBusiness to a usiness to a toto the final the final CCustomer ustomer through a website.through a website.

– B2B:B2B: Selling/buying of goods and services Selling/buying of goods and services to/from one to/from one BBusiness usiness toto another another BBusiness.usiness.

– C2C:C2C: CConsumers selling onsumers selling toto other other CConsumers onsumers usually through an intermediary company.usually through an intermediary company.

EcommerceEcommerceTo Businesses

Benefit LimitationRelatively inexpensive when compared to number of

customers reached.Some countries have low internet speeds; and poorer

countries have limited computer ownership.

Can reach world wide audience with relatively small promotional budgets.

Consumers cannot touch, feel, or smell tangible products.

Accurate records or “clicks” can be tabulated and success rates of web promotions quickly calculated.

Product returns may increase as customers return goods they are unhappy with.

Computer ownership and usage is increasing in all countries.

Cost and reliability of delivery service in some countries may reduce the cost advantage.

Selling products on line has a lower costs because of no brick-and-mortar stores. These cost savings

can be passed onto customers.

The website must be kept up-to-date. Well developed sites can be expensive.

Supply chains can be managed using B2B. Businesses must be have competitive pricing because it is easy for customers to compare.

Low-cost growth is easier without the restrictions of physical locations.

Internet security of personal financial information may be a concern for customers.

Consumers leave behind important information about themselves when visiting websites that can be

useful for future targeted marketing.

Expensive IT infrastructure is needed with capable personnel.

EcommerceEcommerceTo Consumers

Benefit LimitationThe Internet is convenient to use. Must have reliable Internet.

Online stores are open 24/7. Not able to see, touch, smell products prior to purchase which may increase efforts to return.

Prices are often lower. Concern over security of private financial information and passwords.

No time or money is spent going to the physical location or waiting in line to make a purchase.

Concern over the sale of counterfeit goods on line...how do you know the firm/website is reputable?

Ability to sell to other consumers. Delays in receiving goods.

Immediate access to film and music through downloads.

Ability for businesses to bid on customer work.

Documents

4.8 Ecommerce. Ecommerce Ecommerce: The buying and selling of goods and services on the Internet. Ecommerce: The buying and selling of goods and services