1. 1 Best Practices in E-Marketing Objectives Understand interactive marketing including:  value creation, online profiling, buying cycle Explain which types of products and services work with interactive marketing Discuss use of multi-channel marketing to reach online consumers

2. 2 U.S. Internet / Web Users ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 Year Millions of Users 37 60 83 104 122 138 153 168 182 194

3. 3 U.S. Online Retail Sales Revenues ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 Year $ Billions Spent $1 $2 $20 $34 $48 $64 $83 $104 $24 $12

4. 4 Marketspace Value Creation Time Utilities (Convenience)  Direct, on-demand, 24 x 7 Place Utilities (Choice, Cost)  Marketers and customers can be anywhere Form Utilities (Customization, Communication)  Interactive, 2-way communication allows customization Possession Utilities (Control)  Accelerated transfer of products or services

5. 5 Interactive Marketing Buyer-seller electronic communications in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. Tools  Collaborative Filtering  Co-browsing and Live Text Chats  Electronic Wallets and Order Confirmation  Package Tracking and Return Services

6. 6 Online Customer Experience Driven by 7 C’s Customer Experience Context Site layout / design Commerce Transaction capabilities Connection Links to other sites Content Text, pictures, sound, video Community User-to-user communication Customization Tailor to users, personalization Communication Two-way Hoffman Page 46

7. 7 Online Consumer Profiling Demographics  Educated, younger, more affluent than average Lifestyles  Click-and-mortar (23%)  Hunter-gatherers (20%)  Brand loyalists (19%)  Time-sensitive materialists (17%)  Hooked, online, and single (16%)  Ebivalent newbies (5%)

8. 8 Online Product Characteristics 1. Information intensive but doesn’t require pre-purchase trial 2. Can be demonstrated via audio/video 3. Can be delivered digitally 4. Unique, specialty or collectible items 5. Convenience items 6. Standardized products that differentiate on price

9. 9 Multi-channel Marketing The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and the marketspace. Website Roles  Communication or Delivery Channel  Promotional or Transactional Websites

10. 10 Average Annual Customer Dollars

11. 11 Economics of Book Superstores and Online Retailers Average Sale$ 100.00$100.00 (Discount) -10.00 - 20.00 Shipping ----- 11.00 Sales Tax 7.00 ------ Customer Price$ 97.00$ 91.00 Cost of Sales - 67.41 - 57.60 Cost of Shipping - 2.88 - 9.80 Gross Profit$ 26.71$ 23.60 Rent Expense -.96 - 4.55 Labor & Store/Web - 10.75 - 2.90 Advertising/Promo - 2.50 - 17.29 Average Profit $ 12.50 SuperstoresOnline Retailer

12. 12 E-Commerce Success Factors 1. Target the right customers 2. Own the customer’s total experience 3. Streamline customer impacting processes 4. Provide 360-degree view of customer 5. Let customers help themselves 6. Help customers do their jobs 7. Deliver personalized service 8. Foster community Patricia B. Seybold, Customers.com