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B2C E-Commerce Selling on the Internet Alan Barefield University of Tennessee Agricultural Extension Service.

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Presentation on theme: "B2C E-Commerce Selling on the Internet Alan Barefield University of Tennessee Agricultural Extension Service."— Presentation transcript:

1 B2C E-Commerce Selling on the Internet Alan Barefield University of Tennessee Agricultural Extension Service

2 What is the biggest problem with selling to consumers on the Internet today? Inexperienced people with overinflated expectations who create online stores with the belief that once they’ve done the work, the dollars will roll in. (Carroll and Broadhead, page 3) A majority of people who start a business... assume that once they open, customers will flock in without any marketing or promotion. Unless you are McDonald’s, this will not happen. Pat Bishop, The Daily Oklahoman

3 If this won’t work, what will?  Think about how the traditional “bricks and mortar” business model became successful  Utilize these principles to develop an online marketing strategy  Implement that strategy  Constantly monitor, assess, and update this strategy

4 What are we talking about? An Online Marketing Plan!

5 Traditional Marketing Considerations  Provide a product or service that somebody needs or wants  Provide superior customer service in the form of technical assistance, product information, etc.  Develop a relationship with the customer  Strive for satisfied customers and repeat business rather than new customers

6 Internet Marketing Components World Wide Web Site These are the typical online marketing components that are within the reach of today’s typical small business. There will be others in the future.

7 Let’s look at first  Why is so great?  It’s everywhere  Enables the business to maximize its relationship with the customer  Who are the most valuable customers?  Offers individualized service  Establishment of meaningful dialogues  It’s about communication

8 Let’s look at first  Why is so bad?  It’s everywhere  Spam is everywhere. Spam is unsolicited, usually commercial, sent to a large number of addresses (Merriam-Webster’s Collegiate Dictionary). Spam is the tele-marketing of the internet.  Why? Internet service is a cost to us, not the merchant.  The customer wants to be in control

9 advantages  It’s proactive – websites must wait for visitors  It’s timely – customers can be notified in real time  It’s personal – no two inboxes are alike  It’s cost-effective – costs less than telephone calls or mail but not everyone has  It’s measurable – response activity can be measured and tracked; you can see what works and what doesn’t

10 myths  Asking people what they want never works  This is not a myth in the offline world  Works on the internet because you are delivering value to your customers based on their wants and needs  Tell them why you want the information  Only get the bare essentials at first (prove your worth)  Make it easy to unsubscribe

11 myths  I have only one chance to ask my customers questions  Remember, your goal is to strive for customer retention  If you retain them, they will come back and you can get more information  If they don’t come back, you are not meeting their wants or needs

12 myths  My customers will not want my  Your customers will want to hear from you occasionally, but regularly, if you provide them with information that they deem valuable  If you have nothing of value to give them, you have bigger problems than can be addressed in this conference

13 myths  marketing is easy  Sending spam is easy  Providing personalized service can be extremely difficult and time consuming  You have to plan to provide this type of service  Requires both marketing and information technology expertise if the customer base is large

14 myths  marketing is free  If the customer base is large, you will need to develop or purchase marketing software  However, unless spam is your goal, a continous and effective marketing program requires a great deal of time and management  Are you saying that your time is worth nothing?

15 myths  Information technology will just install some software to run our marketing programs  There is no off-the-shelf software to do this  Even if there were, each company’s needs are unique  While information technology support of some type needs to be present  An marketing strategy is a marketing function

16 Permission marketing  Since an strategy is proactive, get your customers’ permission; otherwise it is spam  Rules of permission marketing  Permission must be granted – it can’t be assumed  Permission is selfish  Permission can be revoked as easily as it’s granted  Permission can’t be transferred

17 Permission marketing  Tests of permission marketing  Does every marketing effort encourage a learning relationship with the customer?  Does it invite customers to start communicating?  Do you track the people who have given you permission?  If a customer gives you permission, do you have anything to say?

18 Levels of permission marketing  Intravenous treatment – the emergency room  Green stamps – frequent flyer miles  Personal relationships – neighborhood butcher giving you ribeyes instead of sirloin at no charge  Branding – people usually choose the known over the unknown  Situational selling – a sales clerk recommends a video  Spam – calling a stranger at home during dinner without permission

19 design  The subject line is critical  Get their attention in the opening sentence  Deliver value  Layout/design should be readable & professional  Personalize to the degree you can afford  Provide a clickthrough as the response  Carefully design the landing page  Test & measure, test & measure, test & measure. Then refine.

20 Types of designs HTML design

21 Types of designs Plain text design

22 Ten ways to fail at e-commerce  Spread the responsibilities of converting to e- commerce among several people  Form a committee (particularly a committee of busy people)  Develop the simplest approach possible  Choose vendors who are dismissive of your traditional business, but whose abilities you are the least capable of assessing

23 Ten ways to fail at e-commerce  Operate the same way on the web as you do off- line (after all, the Internet is just a tool)  Insist that the e-commerce venture meet every existing company standard (cost controls, recruitment sources, purchasing policies, etc)  Don’t encourage different units to cooperate; reward each one separately

24 Ten ways to fail at e-commerce  Compare performance with traditional industry competitors  Give employees tools that they are unable to use and require changes they are confused about making. When the these take too much time and make the work harder, punish the employees.  The company, not the customer, is in the driver’s seat

25 Components of an on-line store  Display mechanism  Commonly thought of as the website  Provides a place to display your wares  Registration system for customers  Transaction and Order Processing System  Shopping cart  Order processing system  Secure transaction path to “payment gateway”

26 Effective on-line store considerations  Image and appearance  Content  Reliability  Credibility, trust, respect  Product information  Design and navigation  Order information  Shipping information  Exchanges, returns, and warranties  Pricing information  Checkout procedures  Customer service, support  Channel integration  Market research

27 E-commerce ideas  Don’t put your entire store online  Turn your inventory over as quickly as possible  Customers like to see what they are buying  Keep shipping costs to a minimum and don’t blindside your customers with them  Use the Internet to know your customers and their demographics better than ever before

28 Developing your website (online store)       store.yahoo.com        Visit several commercial websites to determine what you can do with an online store:

29 Sources  Brondmo, Hans Peter. The Customer. Harper Business.  Carroll, Jim and Rick Broadhead. Selling Online. Dearborn Trade.  Kanter, Rosabeth Moss. The Tenn Deadly Mistakes of Wanna- Dots. Harvard Business Review. January  Rapp, Stan and Chuck Martin. Max- e- Marketing In The Net Future. McGraw-Hill.  Stern, Jim. World Wide Web Marketing (3 rd Edition). John Wiley & Sons, Inc. or


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