E-Business / E-Commerce Marketing in the Digital Age Chapter 4 E-Business / E-Commerce Marketing in the Digital Age

WHAT IS E-BUSINESS? • E-business (E-Commerce) Targeting customers by collecting and analyzing business information, conducting customer transactions, and maintaining online relationships with customers. • E-marketing Strategic process of creating, distributing, promoting, and pricing goods and services to a target market over the Internet or through digital tools. • Digital Tools:  Examples: • Researching computer printers on CNet.com and then placing an order at Newegg.com. • Legally downloading music and videos from Apple Computer’s iTunes Web site.

CAPABILITIES AND BENEFITS OF E-MARKETING

TYPES OF BUSINESS WEB SITES • Corporate Web site Site designed to increase a firm’s visibility, promote its offerings, and provide information to interested parties. • Marketing Web site Site whose main purpose is to increase purchases by visitors. • 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. • Marketing Web site Site whose main purpose is to increase purchases by visitors. • Many try to engage visitors in interactions that move them closer to a desired marketing outcome.

B2B E-MARKETING • Business-to-business (B2B) e-marketing Use of the Internet for business transactions between organizations. • Accounts for 90 percent of all e-business activity. • Accounts for 10 percent of all B2B transactions. • Business-to-consumer (B2C) e-marketing Selling directly to consumers over the Internet. Also called e-tailing. • Shopping & Informational Sites • Electronic data interchange—computer-to-computer exchanges of price quotations, purchase orders, invoices, and other sales information between buyers and sellers. • Web services—Internet-based systems that allow parties to communicate electronically with one another regardless of the computer operating system they use. • Extranets—secure networks used for e-marketing and accessible through the firm’s Web site by external customers, suppliers, or other authorized users. • Private exchanges—secure Web site at which a company and its suppliers share all types of data related to e-marketing, from product design through delivery of orders. • Electronic exchanges—online marketplaces that bring buyers and sellers together in one electronic marketplace and cater to a specific industry’s needs. • E-procurement—Web-based systems that enable all types of organizations to improve the efficiency of their bidding and purchasing processes.

ONLINE SHOPPING AND B2C E-MARKETING • Business-to-consumer (B2C) e-marketing Selling directly to consumers over the Internet. Also called e-tailing. • Service providers such as banks are an important segment of e-tailing. • Two types of B2C Web sites • __________ sites • Shopping sites such as Gap.com where customers can get product information and make purchases online. • Information sites such as Toyota.com where customers can get product information but cannot make purchases online.

USING THE WEB’S COMMUNICATION FUNCTION • Web has four main functions: e-business, entertainment, information, and communication. • Communication is Web’s most popular function. • Firms use e-mail to communicate with customers, suppliers, and other partners. • Spam Popular name for junk e-mail. ONLINE COMMUNITIES • Internet forums, newsgroups, electronic bulletin boards, and Web communities that appeal to people who share common interests.

ONLINE BUYERS AND SELLERS • Demographics of customers are changing as Internet penetration grows.

MANAGING A WEB SITE DEVELOPING SUCCESSFUL WEB SITES

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.