Copyright © 2007 Pearson Education Canada 17-1 E-Commerce “Buying and selling of goods online and the transfer of funds via digital communications.” Buying.

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Presentation transcript:

Copyright © 2007 Pearson Education Canada 17-1 E-Commerce “Buying and selling of goods online and the transfer of funds via digital communications.” Buying online is slowly catching on with Canadian consumers. Amazon.ca Chapters.Indigo.ca

Copyright © 2007 Pearson Education Canada 17-2 E-Business E-Business is more embracing than e-commerce.  Buying and selling online  Electronic transfer of information (EDI) facilitating movement of goods  Billing and payments electronically The emphasis on CRM along with communications technology encourage e-business activity in a B2B environment.

Copyright © 2007 Pearson Education Canada 17-3 Internet Usage  7.9 million Canadian households use regularly  Greater usage in mid- to high-income households  Households with children use more frequently  Higher educated households use more regularly.

Copyright © 2007 Pearson Education Canada 17-4 Online Behaviour 1.Internet usage increasing; traditional media usage decreasing. 2.Internet is a popular research tool for online and offline purchases. Popular activities:  , instant messaging, and chat rooms  Playing games, surfing, shopping

Copyright © 2007 Pearson Education Canada 17-5 Online Marketing Opportunities The Internet presents three significant opportunities: 1.Reaches youth and young adult markets effectively; other age segments growing 2.Online transactions possible 3.Mass customization

Copyright © 2007 Pearson Education Canada 17-6 Mass Customization “Creating systems that can personalize messages and develop products for an audience of one.” Dell Computer Corp. produces your computer after you order it.

Copyright © 2007 Pearson Education Canada 17-7 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 lists. Quantitative assessments in a fast, inexpensive way.

Copyright © 2007 Pearson Education Canada 17-8 Product Strategy Products with certain characteristics have been sold more successfully online. Non-perishable High relative value Information intensive High-tech in nature

Copyright © 2007 Pearson Education Canada 17-9 Branding Considerations Offline image and online image should be identical. Site name should be easy to remember and spell (typing errors discourage visits).

Copyright © 2007 Pearson Education Canada Brand Names Some options for domain names include: Company Name:Nike.ca Brand Name:Tide.com Acronym:cbc.ca Unique name:savingyoumoney.com

Copyright © 2007 Pearson Education Canada Upward Influences on Price Online prices are not much lower than offline prices. Certain factors increase price:  Shipping costs  Auctions  Web site development costs  Marketing costs Costs associated with 24/7 service and customization are also increasing prices.

Copyright © 2007 Pearson Education Canada Downward Influences on Price The rapid pace of technology puts pressure on prices. Certain factors help lower prices:  Competition (shoppers comparison shop)  Product life cycles  Streamlined order processing  Location and management of inventory

Copyright © 2007 Pearson Education Canada Distribution Strategy The Internet can perform all distribution roles but in a different way. Market Intelligence Customer Communications Buyer Contact Matching Products to Needs Physical Distribution Financing Price Negotiation

Copyright © 2007 Pearson Education Canada The Online Channel Offline distributors (disintermediation) have been replaced with online distributors (reintermediation). Traditional Channel Manufacturer Distributor Travel Agent Distributor Travel Agent Consumer Manufacturer Distributor Travelocity Distributor Travelocity Consumer Online Channel

Copyright © 2007 Pearson Education Canada Marketing Communications Organizations can employ any combination of alternatives: Online Ads Sponsorships Advertising Sales Promotion Public Relations Web Site

Copyright © 2007 Pearson Education Canada Customer Relationship Management The Internet is an ideal vehicle for building a true CRM program. To make it work an organization must: 1.Predict changing needs of e-consumers 2.Pursue e-marketing strategies relevant to each customer 3.Identify high-value customers and repeatedly satisfy them