2Learning ObjectivesIdentify the major categories and trends of e-commerce applicationsIdentify the essential processes of an e-commerce system, and give examples of how they are implemented in e-commerce applicationsIdentify and give examples of several key factors and Web store requirements need to succeed in e-commerce
3Learning ObjectivesIdentify and explain the business value of several types of e-commerce marketplacesDiscuss the benefits and trade-offs of several e-commerce clicks and bricks alternatives
4Introduction to e-Commerce Electronic commerce encompasses the entire online process ofDevelopingMarketingSellingDeliveringServicingPaying for products and servicesRelies on Internet and information technologiesMultimedia Lecture Support Package to Accompany Basic MarketingLecture Script 6-4
5Mobile shopping increasing Social networking RWC 1: Mobile ShoppingMobile shopping increasingSocial networkingWeb sites and too many stepsSales pitches on social networks increasingBirthday prompts ad for FlowersImpulsive buyersCell phonesStarbucks Mobile Card AppPreloaded spending moneyScannable bar codeLast minute game ticketsMultimedia Lecture Support Package to Accompany Basic MarketingLecture Script 6-5
6Business-to-Consumer Scope of e-CommerceCategories of e-CommerceBusiness-to-ConsumerVirtual storefronts, multimedia catalogs, interactive order processing, electronic payment, online customer supportBusiness-to-BusinessElectronic business marketplaces, direct links between businesses, auctions and exchangesConsumer-to-ConsumerOnline auctions, posting to newspaper sites, personal websites, e-commerce portalsMultimedia Lecture Support Package to Accompany Basic MarketingLecture Script 6-6
9Access Control and Security E-commerce requires mutual trust and secure accessUser names and passwordsEncryption keyDigital certificates and signaturesRestricted access areasOther people’s accountsRestricted company dataWebmaster administration areas
10Profiling and Personalizing Profiling captures behavior and choicesUser registrationCookie files and tracking softwareUser feedbackProfiling is used forPersonalized (one-to-one) marketingAuthenticating identityCustomer relationship managementMarketing planningWebsite management
11Find specific product or service Search ManagementFind specific product or serviceWebsite search engineGoogle or Requisite TechnologySearch on content or by parametersSearch processes help customers find the specific product or service they wantE-commerce software packages often include a website search engineA customized search engine may be acquired from companies like Google or Requisite TechnologySearches are often on content or by parameters
12Content and Catalog Management Content Management SoftwareMaintain text and multimedia for e-commerceCatalog Management SoftwareMaintain catalog contentCatalog and content management softwareWorks with profiling tools to personalize contentProduct configuration and mass customizationContent Management SoftwareHelps develop, generate, deliver, update, and archive text and multimedia information at e-commerce websitesCatalog Management SoftwareHelps generate and manage catalog contentCatalog and content management software works with profiling tools to personalize contentIncludes product configuration and mass customization
13Example of Workflow Management Depends on a workflow software engineContains software model of business processesWorkflow models express predefinedSets of business rulesRoles of stakeholdersAuthorization requirementsRouting alternativeDatabases usedTask sequences
14Monitors e-commerce processes Records relevant events Event NotificationMonitors e-commerce processesRecords relevant eventsFirst websitePaymentsProblem situationsNotifies involved stakeholdersWorks with user-profiling softwareMost e-commerce applications are event drivenResponds to such things as customer’s first website visit and paymentsMonitors all e-commerce processesRecords all relevant events, including problem situationsNotifies all involved stakeholdersWorks in conjunction with user-profiling software
15Collaboration and Trading Processes needed by customers, suppliers, and other stakeholdersOnline communities of interest, chat, discussion groupsEnhances customer serviceBuilds loyaltyProcesses that support vital collaboration arrangements and trading servicesNeeded by customers, suppliers, and other stakeholdersOnline communities of interest, chat, discussion groupsEnhances customer serviceBuilds loyalty
16Electronic Payment Example Electronic Payment ProcessesComplex processesNear-anonymous and electronic nature of transactionsMany security issuesWide variety of debit and credit alternativesFinancial institutions may be part of the processWeb Payment ProcessesShopping cart processCredit card payment processDebit and other more complex processesElectronic Funds Transfer (EFT)Major payment system in banking, retailVariety of information technologies capture and process money and credit card transfersMost point-of-sale terminals in retail stores are networked to bank EFT systems
17Securing Electronic Payments Sniffers easily recognize credit card formatsProtectionEncrypt dataBetween customer and merchantBetween customer and financial institutionTake sensitive information off-lineSecuring Electronic PaymentsNetwork sniffers easily recognize credit card formatsEncrypt data between customer and merchantEncrypt data between customer and financial institutionTake sensitive information off-line
18RWC 2: Driving the “Buzz” on the Web Companies attempt to identify “influentials” that create online “word of mouth”Increase salesInfluence opinionsDiffering opinionSales data don’t match “influentials”Influentials go with the flow, not effect changeCompanies search social websites for “influentials” that are likely to promote a product or service through an on-line word of mouth campaign.Effort didn’t pan out.
20E-Commerce Success Factors Selection and valuePerformance and serviceLook and feelAdvertising and incentivesPersonal attention (one-to-one marketing)Community relationshipsSecurity and reliability
21Differences in Marketing Great Customer SatisfactionDespite the differences, some things remain. Constant and informative communication channels must be open either via online chat or telephone with a human being.
23Developing a Web Store Build a website Market the website Choose or set up web hostingUse simple design tools and templatesInclude a shopping cart and payment supportMarket the websiteInclude Web page and advertising and promotionsExchange advertising with other Web storesRegister with search engines and directoriesSign up for affiliate programs
24Getting Customers to Find You Submit your site to a search engineImprove the quality and number of visitorsSearch Engine Optimization (SEO)Link FarmsKeyword stuffingOrganic Search
25Serving Your Customers Convert visitors into loyal customersDevelop one-to-one relationship with customersCreate incentives to encourage registrationUse Web cookies to identify visitorsUse tracking services to record and analyze website behavior and customer preferencesCreate an attractive, friendly, efficient storeOffer fast order processing and paymentNotify when orders are processed and shippedProvide links to related websites
26Manage both the business and the website Managing a Web StoreManage both the business and the websiteRecord and analyze traffic, inventory, salesUse CRM features to help retain customersLink sales, inventory data to accounting systemsOperate 24 hours a day, seven day a weekProtect transactions and customer recordsUse security monitors and firewallsUse redundant systems and power sourcesEmploy passwords and encryptionOffer 24-hour tech support
27Wholesale and supply side Relies on multiple technologies B2B E-CommerceWholesale and supply sideBusinesses with other businessesRelies on multiple technologiesCatalog systemsTrading systemsData interchangeElectronic funds transfersB2B is the wholesale and supply side of the commercial processBusinesses buy, sell, or trade with other businessesRelies on multiple electronic information technologiesCatalog systemsTrading systemsData interchangeElectronic funds transfers
28E-Commerce Marketplaces One to ManySell-side marketplacesOne supplier dictates product offerings and pricesMany to OneBuy-side marketplacesMany suppliers bid for the business of a buyerSome to ManyDistribution marketplacesUnites suppliers who combine their product catalogs to attract a larger audience
29E-Commerce Marketplaces Many to SomeProcurement marketplacesUnites major buyers who combine catalogsMore competitionLower pricesMany to ManyAuction marketplacesDynamically optimizes prices
30B2B Commerce Web Portals B2B portals offer multiple marketplacesCatalogsExchangesAuctionsThird-party market-maker companiesInfomediaries serve as intermediaries in e-business and e-commerce transactions
31Clicks and BricksSuccess will go to those who can integrate Internet initiatives with traditional operationsMerging operations has trade-offs
32E-Commerce Integration Move traditional strategies to e-commerceIntegrate e-commerce into traditional businessSharing of established brandsSharing of key business informationJoint buying power and distribution efficienciesThe business case for merging e-commerce with traditional business operationsMove strategic capabilities in traditional operations to the e-commerce businessIntegrate e-commerce into the traditional businessSharing of established brandsSharing of key business informationJoint buying power and distribution efficiencies
34Other Clicks and Bricks Strategies Partial e-commerce integrationJoint ventures and strategic partnershipsComplete separationSpin-off of an independent e-commerce companyBarnes and Noble’s experienceSpun off independent e-commerce companyGained venture capital, entrepreneurial culture, and flexibilityAttracted quality managementAccelerated decision makingFailed to gain market share
35E-Commerce Channel Choices An e-commerce channel is the marketing or sales channel created by a company for its e-commerce activitiesNo universal strategy or e-commerce channel choiceBoth e-commerce integration and separation have major business benefits and shortcomingsMost businesses are implementing some measure of clicks and bricks integration
36E-Commerce Strategy Checklist Questions to ask and answerWhat audiences are we attempting to reach?What action do we want those audiences to take?Who owns the e-commerce channel within the organization?Is the e-commerce channel planned alongside other channels?Is there a process for generating, approving, releasing, and withdrawing content?Will our brand translate to the new channel?How will we market the channel itself?
37RWC 3: Success for Second Movers Entellium is a successful second moverSame approachBetter products and servicesLower cost.Another strategyCombine successful business modelsSecond-mover advantage seems substantialEntellium is an example of a company that has successfully implemented a second mover strategy on the Web.The second-movers can use the same approach as first mover with better products and services at much lower cost.Another strategy is to use combinations of business models that are successful.
38Companies must protect brand names, logos and trademarks RWC 4: Brands Go On-LineCompanies must protect brand names, logos and trademarksBrandProtect, MarkMonitor, and NameProtect offer helpChallenge has grown exponentiallyAnother type of violation is using logos without permissionCompanies that do business online must police unauthorized use of their brand names, logos and other trademarks to protect their investments.Companies such as BrandProtect, MarkMonitor, and NameProtect are stepping in to offer companies some artillery in the fight for control of their brands and reputations.The challenge of brand protection, however, has grown exponentially for companies operating in the online world.Other type of violation is using logos without permission because it is so easy for someone to go to a company’s web site and grab a logo and put it somewhere else.