1. IB Business/Management
Unit 4.8 – E-Commerce
IB Business/Management

2. Chapter Goals Describe the features of e-commerce
Analyze how changing technology and e- commerce impacts the marketing mix
Distinguish between the three types of e- commerce
Discuss the costs and benefits of e-commerce to firms and consumers

3. Feature of e-commerce Ubiquity – widely available 24/7
Customization – messages can be personalized
Global reach – internet breaks traditional boundaries
Integration – allows use of audio, video & text to present a marketing message
Universal standards – one set of global internet standards

4. E-commerce & the Marketing Mix
Product
Wider customer base
Wider range of products to meet demand
Customers able to tailor products
Example - interactive websites to “build” custom cars
Should lead to greater customer satisfaction
Price
Prices more transparent
Consumers can easily check prices
Allow the “middle man” to be cut out
Products more affordable

5. E-commerce & the Marketing Mix
Promotion
Additional medium;
Many businesses supplement traditional advertising with on- line advertising
Provides more ways for businesses to advertise
Feedback from customers can be immediate
Place
Able to reach a global audience at a fraction of the cost
Distribution Channels shortened
Internet more convenient
Language translation can expand markets even further

6. Types of e-commerce
Business to Business - E-commerce focused on the needs of other businesses
Corporate banking; Equipment suppliers
Business to Consumer - Directly focused on the end-user, or consumer
Consumer to consumer – transactions between two consumers

7. Benefits of E-commerce to firms
Can reach a wider market
More cost effective
Another place to generate revenue
Example – Facebook advertising
Excessive packaging can be reduced
Example – computer manuals downloaded, rather than included with produce

8. Benefits to consumers Convenience Increased choice
Can shop from your own home any time
Increased choice
Can easily compare products from many different sites
Good customer service = customer satisfaction

9. Costs of E-commerce to firms
Security concerns regarding payments
Need to guard against on-line fraud = expensive
Vulnerable to competition
May not be suited for every type of business
Setting up and maintaining a website can be expensive

10. Costs of E-commerce to consumers
Consumers don’t have the ability to try out the product
Not everything can be purchased on-line
On-line pop-ups considered a distraction
Not all areas have great internet connectivity
Information overload!