E-TAILINGHow is the internet used?
How can I satisfy customers?
E-COMMERCE The conducting of business and
communication transactions by electronic means
TYPES OF E-COMMERCEBricks and mortar business A business with an actual physical
location, or store front Ex. McDonaldsMulti channel retailer A retailer that sells its product via
traditional channels as well as via an online channel
Ex. Dicks Sporting goodsPure play retailers Sell primarily through the internet Ex. Amazon.com
E-COMMERCE IS THE Fastest growing form of commerce in
the world
WHERE ARE WE HEADED NEXT?
E-BUSINESS Any process a business conducts over a
computer network
Video conferencing
WHY PEOPLE BUY ONLINE save time by not going to a store can shop when stores are closed avoid the holiday crowds might be able to find better prices can find products online more easily find products not available in stores easier to compare prices have gifts sent directly to recipient can avoid wrapping gifts can earn loyalty points purchase from wish list
BENEFITS & CHARACTERISTICS OF E-COMMERCE
Limitless buyers Number of potential
buyers is limitless
Open 24/7 All hours, e-commerce
offers a distinct advantage to customers
BENEFITS & CHARACTERISTICS OF E-COMMERCE CONT.
Advertise, Market, and Analyze Effective and inexpensive ways to reach
new and existing customers Track purchasing habits
Brand loyalty Refers to a customers preference for a
particular product
Managing inventory Online retailers eliminate the cost of
inventory storage
BENEFITS & CHARACTERISTICS OF E-COMMERCE CONT.Meeting Customer Needs Caters to individualized special choices
rather than made-to-stock
Mass customization Is the production of goods that offer
specialized choices to mainstream buyers
Value chain The sequence of design, production, and
marketing efforts a business conducts to deliver its products at the right place and time
BENEFITS & CHARACTERISTICS OF E-COMMERCE CONT.Starting Out A virtual store front is much faster, easier, and
cheaper to set up than a bricks and mortor store
Pricing competitively price is often the factor that makes or breaks
the sale
Elastic demand Pricing changes create a change in the amount
of goods or services consumers are willing to buy at a certain price
EX. OF ELASTIC DEMAND
ECOMMERCE CLASSIFICATIONS:B2B business to business, ex.
School Supply Store
B2C business to consumer
ex. Office Depot
C2C consumer to consumer,
ex. Ebay
RETAILING BASICSRetailers Are establishments that sell goods and
services to the general publicWholesalers Sell products to distributors or retailers
and not usually the end-user marketEtailing The buying and selling of retail goods on
the internet
TYPES OF RETAILERSSpecialty stores - Stores that specialize in specific kinds of
products and offer a wide assortment within their given categories Ex. Toys R Us, Borders, Ace Hardware, and REIDepartment stores - These stores offer a variety of products and
choices within each product line and a floor plan that provides specialized departments.
Ex. Sears, Foleys, Macys, JC PennyDiscount stores - May not offer specialize expertise in the products
they sell, but they do offer incredibly low prices Ex. Wal-Mart, (Kmart, Big Lots, Roses)Services retailers - Sells services such as haircuts, medical care, or
financial planning Ex. Banks, dental offices, pet groomers, and lawn maintenance
operationsNon-store retailers - Businesses that use means other than
traditional storefronts to sell their products Ex.Infomercials, catalogs, door-to-door solicitation, trade shows
and vending machines
ADVANTAGES OF ETAILING etailing increases a businesses customer
base Websites attract new customers Customers can shop from their homes A businesses online store is never closed Customers can shop 24/7, regardless of
weather, traffic jams, or distance from the retail store
A well designed, easy to use, and frequently updated website is a valuable channel for any business
DISADVANTAGES OF ETAILING Customers are reluctant to release
personal information on a website Customers are concerned about the
security of their credit card accounts Transactions may be interrupted on the
Internet Customers are unable to examine
merchandise or try on clothing
DISTRIBUTION
Refers to the way the producer or manufacturer delivers products,
services, or information to the consumer
DISTRIBUTION BASICSChannels of distribution The path a product takes from producer
or manufacturer to consumerIntermediary A business that acts as a third party or
go-between in moving products from the manufacturer to the end user
Cybermediary Is an internet channel of distribution
that helps move products from the manufacturer to the consumer or industrial user
DIRECT VS. INDIRECT Direct doesn’t use intermediaries,
indirect does
Examples of direct 1. catalog sales – East Bay, LL Bean 2. Home Shopping Network 3. internet only companies
What is a “channel captain?” Company that controls the channelEx. Walmart