4.8 Ecommerce

Ecommerce Ecommerce: The buying and selling of goods and services on the Internet. Ecommerce: The buying and selling of goods and services on the Internet. Key features: Key features: –Global Reach: no physical borders/boundaries –Ubiquity: availability is 24/7 around the world –Interactivity: two way communication between customer and business –Personalization: marketing messages can be customized –Information richness: complex messages including video, audio, and text –Universal standards: the Internet is standardized

Ecommerce Impact Marketing Mix has been impacted Marketing Mix has been impacted –Product  Consumers can be communicated with individually  Custom services can be easily created (Airline tickets, hotel reservations, rental cars)  Custom products can be easily built (build your own car or computer)  Larger stocking options because market potential is greater

Ecommerce Impact Marketing Mix has been impacted Marketing Mix has been impacted –Price  Prices can be easily compared  Price discrimination is more difficult; although last minute deals are possible to offer

Ecommerce Impact Marketing Mix has been impacted Marketing Mix has been impacted –Promotion  Banners, pop-ups, text messages, web pages are all NEW ways to promote products  Promotional opportunities are greater  Promotional materials and packaging may need to be altered as a global audience can now be reached

Ecommerce Impact Marketing Mix has been impacted Marketing Mix has been impacted –Place  The Internet is transforming how we buy; a smaller proportion of goods is purchased a traditional stores.  Logistics systems to deliver products to all corners of the world. ?

Ecommerce –B2C: Selling of goods and services directly from a Business to a to the final Customer through a website. –B2B: Selling/buying of goods and services to/from one Business to another Business. –C2C: Consumers selling to other Consumers usually through an intermediary company.

Ecommerce To Businesses BenefitLimitation Relatively inexpensive when compared to number of customers reached. Some countries have low internet speeds; and poorer countries have limited computer ownership. Can reach world wide audience with relatively small promotional budgets. Consumers cannot touch, feel, or smell tangible products. Accurate records or “clicks” can be tabulated and success rates of web promotions quickly calculated. Product returns may increase as customers return goods they are unhappy with. Computer ownership and usage is increasing in all countries. Cost and reliability of delivery service in some countries may reduce the cost advantage. Selling products on line has a lower costs because of no brick-and-mortar stores. These cost savings can be passed onto customers. The website must be kept up-to-date. Well developed sites can be expensive. Supply chains can be managed using B2B.Businesses must be have competitive pricing because it is easy for customers to compare. Low-cost growth is easier without the restrictions of physical locations. Internet security of personal financial information may be a concern for customers. Consumers leave behind important information about themselves when visiting websites that can be useful for future targeted marketing. Expensive IT infrastructure is needed with capable personnel.

Ecommerce To Consumers BenefitLimitation The Internet is convenient to use.Must have reliable Internet. Online stores are open 24/7.Not able to see, touch, smell products prior to purchase which may increase efforts to return. Prices are often lower.Concern over security of private financial information and passwords. No time or money is spent going to the physical location or waiting in line to make a purchase. Concern over the sale of counterfeit goods on line...how do you know the firm/website is reputable? Ability to sell to other consumers.Delays in receiving goods. Immediate access to film and music through downloads. Ability for businesses to bid on customer work.