1. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-1 ©2004 Pearson Education Canada Inc. E-Commerce The transaction of business and related activities in a virtual environment. It embraces:  Buying and selling online  Digital value creation  Virtual marketplaces and storefronts  New intermediaries

2. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-2 ©2004 Pearson Education Canada Inc. Internet User Profile The Internet reaches a desirable target market. Male and female 15 to 44 years College or university $40,000 household income Urban skew

3. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-3 ©2004 Pearson Education Canada Inc. Culture and Behaviour Canadians spend 15+ hours online each week.  E-mail  Download software  Research: travel, products, companies  Chat/ Discussion Groups  Buy online

4. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-4 ©2004 Pearson Education Canada Inc. Primary Market Segments B2B B2C $8.1 billion in 2001 $2.3 billion in 2001 B2B accounts for 78% of online transactions.

5. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-5 ©2004 Pearson Education Canada Inc. Internet and Opportunity The Internet presents three significant opportunities: 1.Medium of choice for details 2.Conducting transactions online 3.Mass customization

6. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-6 ©2004 Pearson Education Canada Inc. Internet Marketing Model Traditional forms of communication drives traffic to a Web site. The Internet can: Create company/brand awareness Build image Offer incentives Generate leads Provide customer service Provide database input Transact business

7. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-7 ©2004 Pearson Education Canada Inc. Customer Relationship Management Partnerships are enhanced when information among partners is communicated online.  Lower purchasing costs  Efficient JIT inventory planning  Shorter time for product development  Cost of a making a sale is lower

8. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-8 ©2004 Pearson Education Canada Inc. Mass Customization “Creating systems that can personalize messages and ultimately products to a target audience of one.” Actions of individuals are observed by cookies.

9. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-9 ©2004 Pearson Education Canada Inc. Research Applications Focus Groups Focus Groups Online Observations Online Observations Online Surveys Online Surveys Qualitative assessments in a speedy manner; can’t observe respondent. Electronic surveillance; data available for e-mail lists. Quantitative assessments in a fast, inexpensive manner; can’t draw a probability sample.

10. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-10 ©2004 Pearson Education Canada Inc. Integrating Online Marketing E-marketing is the future of marketing. A bold statement but a true one. Bricks and mortar companies must find a way to enter the new economy.

11. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-11 ©2004 Pearson Education Canada Inc. Product Strategy Thus far, successful online products have the following characteristics. They are:  Non-perishable  Of high relative value  Information intensive  High-tech in nature

12. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-12 ©2004 Pearson Education Canada Inc. Branding Considerations The right domain name can influence traffic at a Web site. Length of Name Length of Name Image If too long they are misspelled or people won’t remember them; they won’t find the site. Offline image and online image should be identical.

13. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-13 ©2004 Pearson Education Canada Inc. Branding Alternatives Some options for domain names include: Company Name: Nike.ca Brand Name: Tide.com Acronym: cbc.ca Unique Name: savingyoumoney.com

14. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-14 ©2004 Pearson Education Canada Inc. Upward Influences on Price New intermediaries have replaced traditional intermediaries so online prices are not much lower. Upward influences on price include:  Shipping costs  Auctions  Web site development  Marketing costs

15. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-15 ©2004 Pearson Education Canada Inc. Downward Influences on Price The rapid pace of technology puts pressure on prices. Downward influences on price include:  Competition  Product Life Cycles  Streamlined Order Processing  Inventory Management

16. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-16 ©2004 Pearson Education Canada Inc. Pricing Strategy Consumers tend to search for value so penetration strategies are effective. 1.Offering additional perceived value provides some leeway to increase price (convenience). 2.Small firms can compete with big firms on price. The price leader has the lowest price.

17. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-17 ©2004 Pearson Education Canada Inc. Distribution Strategy The Internet performs all functions differently. Market Intelligence Customer Communications Buyer Contact Matching Products to Needs Physical Distribution Financing Price Negotiation

18. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-18 ©2004 Pearson Education Canada Inc. Disintermediation and Reintermediation Manufacturer Distributor GM and Ford Distributor GM and Ford Consumer Manufacturer Distributor Autobytel Distributor Autobytel Consumer Traditional Channel Online Channel

19. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-19 ©2004 Pearson Education Canada Inc. Marketing Communications Online communications supplement traditional forms of communications. High reach in cost-efficient manner Builds awareness and image Drives traffic to Web sites The effectiveness of online advertising is yet to be determined.

20. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-20 ©2004 Pearson Education Canada Inc. Communications Strategy Advertising Sponsorships E-mail Sales Promotion Public Relations Company or Product Web Site Company or Product Web Site  Detailed information  Online transaction

21. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-21 ©2004 Pearson Education Canada Inc. Online Customer Service Effective customer relationship management programs are essential. 1.Predict changing needs and expectations of e-consumers. 2.Pursue unique strategies relevant to each e-customer. 3.Focus on high value e-customers and serve them better than competitors.