1. Marketing in the Internet Age
Chapter Three
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2. Looking Ahead After studying this chapter, you should be able to:
Identify the major forces shaping the new Internet Age
Explain how companies have responded to the Internet and other powerful new technologies with e-business strategies, and how these strategies have resulted in benefits to both buyers and sellers
Describe the four major e-commerce domains
Discuss how companies go about conducting e-commerce to profitably deliver more value to customers
Overview the promise and challenges that e-commerce presents for the future
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3. Forces Shaping the Internet Age
Digitalization & Connectivity
Extranets
Intranets
Explosion of the Internet
New types of intermediaries
Click-only
Click & mortar
Customization & Customerization
Digitalization
&
connectivity
The explosion
of the
Internet
The Internet
Age
Customization
&
customerization
New types of
Intermediaries
Figure 3-1
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4. “E” Terms
E-business: the use of electronic platforms to conduct a company’s business
E-commerce: buying and selling processes supported by electronic means
E-markets are marketspaces
E-marketing: efforts to communicate about, promote, and sell products and services over the Internet
E-purchasing (E-procurement): purchasing goods, services, and information from online suppliers
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5. Benefits to Buyers Convenience Privacy
Greater product access and selection
Information
Interactive shopping
Immediate results
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6. Benefits to Sellers Customer relationship building Cost savings
Increased speed
Increased efficiency
Flexibility
Global reach
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7. E-Commerce Domains Business to consumer (B2C)
Business to business (B2B)
Open trading networks
Private trading networks
Consumer to consumer (C2C)
Consumer to business (C2B)
Targeted to
consumers
Targeted to
businesses
Business
B2C
Consumer
Business
B2B
Initiated by
business
Consumer
C2C
Consumer
C2B
Business
Initiated by
consumer
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Figure 3-2

8. Conducting E-Commerce
Seller
Brick & mortar
store channels
Consumers
Brick-only marketers
Seller
E-Commerce
channels
Consumers
Click-only marketers
Brick & mortar
store channels
Seller
Consumers
E-Commerce
channels
Click-and-mortar marketers
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Figure 3-3

9. Sources of E-Commerce Revenue
Product and service sales income
Advertising income
Sponsorship income
Alliance income
Membership and subscription income
Profile income
Transaction commissions and fees
Market research and information fees
Referral income
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Table 3-1

10. Types of Web Sites
Corporate web site: builds customer goodwill and supplements other sales channels, rather than selling the company’s products directly
Example: McDonalds
Marketing web site: engages consumers in interactions that will move them closer to a direct purchase or other marketing outcome
Examples:
Toyota
Kraft Canada.
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11. 7 C’s of Effective Web Site Design
Context: layout and design elements
Content: text, pictures, sound and video
Community: enabling user-to-user communication, such as discussion groups or forums
Customization: tailoring the site to different users or allowing users to personalize the site
Communication: enabling site-to-user, user-to-site, or two-way communication
Connection: linking to other sites that the user might be interested in
Commerce: enabling commercial transactions
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12. Advertising, Communities, & Webcasting
Online advertising: advertising that appears while consumers are surfing the Web
Viral marketing: messages or other marketing events that are so infectious that customers will want to pass them along to friends
Web communities: web sites where members can congregate online and exchange opinions
Webcasting: the automatic downloading of customized information to recipients’ PCs
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13. Challenges of E-Commerce
Limited consumer exposure and buying
Skewed user demographics
Chaos and clutter
Security
Ethical concerns
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14. Looking Back Major forces shaping the Internet age
How companies are responding to the Internet and new technologies
Major e-commerce domains
Conducting e-commerce to deliver more value
Challenges of e-commerce
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