7 What is E-Commerce?Electronic commerce (e-commerce): Targeting customers by collecting and analyzing business information, conducting customer transactions, and maintaining online relationships with customers by means of computer networks
11 What is Interactive Marketing? Buyer-seller communications in which the customer controls the amount and type of information received from a marketer through such channels as the Internet, and virtual reality kiosks.
12 What is the Internet?Worldwide network of interconnected computers that lets anyone with access to a personal computer send and receive images and data anywhere
13 70% of Internet Users - USA The Birth and Rise of Ecommerce The InternetWorld Internet Users1990 – Fewer than 1 Million1995 – 50 Million2001 – 490 Million2005 – 766 Million70% of Internet Users - USA2006 – 50% outside the USAThe Birth and Rise of Ecommerce
14 The Internet Over 143 million active users in the USA Intranets Internal corporate network that allows employees within an organization to communicate with each other and gain access to organizational informationExtranetsSecure network accessible through a Website by external customers or organization for electronic commerce. It provides more customer-specific information than a public site.
15 The Internet (1 of 2)Taken from the paper “International Internet Marketing (IIM)” by Philip, R. (2004).In 1990, fewer than 1 million users were connected to the Internet. By 1995, the figure had risen to 50 million. In 2001, it grew to 490 million. In the US, where Internet usage is most advanced, 58 percent of the population had Internet access at home by July 2001 (Cantrell, 2001).The internet has become more powerful with the growing use of broadband. Broadband permits the rapid transmission of much greater quantities of information, including moving pictures. In 2002, Korea’s 15 million households had broadband service (Moon, 2002). By 2004, more than 152 million people in the United States were online with over one-third having broadband connections (Fost, 2004).
16 The Internet (2 of 2)In 2000 there were nearly 350 million internet users world-wide and by 2005 the number of users could be more than double to nearly 766 million (Wall street journal, 2000).Also the number of internet users is growing in other countries; this should be of concern for firms wanting to enter foreign markets. For example, although 70% of today’s internet users are currently based in the United States (Harrison-Walker, 2002), more research done by Heckman & Schmidt (2000) and Struass and Frost (2001) predict that by 2005 more than 50% of internet users will be based outside the US, and that the percent of users in the European Union will exceed the percent of users in the United States.
17 Four Web Functions Communication Information ; Instant messaging; Chat rooms and bulletin boards; Online communitiesInformationSearch engines; Online publications; Newsgroups; Internet forums; Electronic bulletin boards; Web communities
18 Four Web Functions Entertainment E-Commerce Games; Radio and TV programming, including music; Streaming video of live news reports, sports, and musical performances; Electronic booksE-CommerceOnline auctionsB2B: electronic exchanges; Extranets and private exchangesB2C: Electronic storefronts and cybermalls; Web kiosks, Online ticketing; Matchmaking
20 Online Consumer Marketing Lower PricesBots (short for robots): programs that check hundreds of sites, gather and assemble information, and bring it back to the senderConvenienceWorldwide access, Day or night, Customized products and informationPersonalizationImproves the quality of the shopping experienceImproves customer satisfaction
21 Benefits of Online Consumer Marketing Relationship BuildingCrucial to successOnline’s personalization helpsEasier for small businesses with small budgetsCustomer service is the keyIncreased EfficiencyGreater profit marginsEducating customers online frees salespeople from answering routine questions
22 A More Level Playing Field Cost ReductionsReduced start-up costsReduced operating costsFrees funds for new marketing effortsA More Level Playing FieldEven small firms with small budgets can compete in the global marketplaceHelps eliminate discrimination and allow minority businesses to succeed on their own meritsAutoNetwork.com
23 Creating an Effective Web Presence MeasuringEffectivenessManaging a Web SiteCreating an Effective Web Site
24 Building an Effective Web Site Establish a Mission for the company’s siteIdentify the purpose of the siteSatisfy customer needs and wants through a clear site designManaging a Web SiteUpdate the site frequentlyFlag new merchandise and servicesEnsure that site appears to be currentUpdate software as neededTrack costs and revenues
25 MEASURING WEB SITE EFFECTIVENESS Click-through rate Percentage of people presented with a banner ad who click on it.Conversion rate Percentage of visitors to a Web site who make a purchase.
26 WEB BUSINESS MODELS• Corporate Web site Site designed to increase a firm’s visibility, promote its offerings, and provide information to interested parties.• Purpose is to build customer goodwill and assist channel members in their marketing efforts.• Other purposes include disseminating financial information; giving prospective employees the opportunity to apply online for jobs; and providing a communication channel for customers and other interested parties..• Marketing Web site Site whose main purpose is to increase purchases by visitors.• Includes information about company history, products, locations, employment opportunities, and financial information.