E tailing rev 12
- 1. E-tailingHow is the internet used?How can I satisfy customers?
- 2. e-commerceThe conducting of business and communication transactions by electronic means
- 3. Types of E-CommerceBricks and mortar businessA business with an actual physical location, or store frontEx. McDonaldsMulti channel retailerA retailer that sells its product via traditional channels as well as via an online channelEx. Dicks Sporting goodsPure play retailersSell primarily through the internetEx. Amazon.com
- 4. e-commerce is the Fastest growing form of commerce in the world
- 5. Where are we Headed Next?
- 6. e-businessAny process a business conducts over a computer networkVideo conferencing
- 7. Why People Buy Onlinesave time by not going to a storecan shop when stores are closedavoid the holiday crowdsmight be able to find better pricescan find products online more easilyfind products not available in storeseasier to compare priceshave gifts sent directly to recipientcan avoid wrapping giftscan earn loyalty pointspurchase from wish list
- 8. Benefits & Characteristics of E-CommerceLimitless buyersNumber of potential buyers is limitlessOpen 24/7All hours, e-commerce offers a distinct advantage to customers
- 9. Benefits & Characteristics of E-Commerce cont.Advertise, Market, and AnalyzeEffective and inexpensive ways to reach new and existing customersTrack purchasing habitsBrand loyaltyRefers to a customers preference for a particular productManaging inventoryOnline retailers eliminate the cost of inventory storage
- 10. Benefits & Characteristics of E-Commerce cont.Meeting Customer NeedsCaters to individualized special choices rather than made-to-stockMass customizationIs the production of goods that offer specialized choices to mainstream buyersValue chainThe sequence of design, production, and marketing efforts a business conducts to deliver its products at the right place and time
- 11. Benefits & Characteristics of E-Commerce cont.Starting OutA virtual store front is much faster, easier, and cheaper to set up than a bricks and mortor storePricing competitivelyprice is often the factor that makes or breaks the saleElastic demandPricing changes create a change in the amount of goods or services consumers are willing to buy at a certain price
- 12. Ex. Of elastic demand
- 13. Ecommerce Classifications:B2Bbusiness to business, ex. School Supply StoreB2Cbusiness to consumer ex. Office DepotC2Cconsumer to consumer, ex. Ebay
- 14. Retailing BasicsRetailersAre establishments that sell goods and services to the general publicWholesalersSell products to distributors or retailers and not usually the end-user marketEtailingThe buying and selling of retail goods on the internet
- 15. Types of RetailersInteractive notes activity
- 16. Advantages of Etailingetailing increases a businesses customer baseWebsites attract new customersCustomers can shop from their homesA businesses online store is never closedCustomers can shop 24/7, regardless of weather, traffic jams, or distance from the retail storeA well designed, easy to use, and frequently updated website is a valuable channel for any business
- 17. Disadvantages of EtailingCustomers are reluctant to release personal information on a websiteCustomers are concerned about the security of their credit card accountsTransactions may be interrupted on the InternetCustomers are unable to examine merchandise or try on clothing
- 18. DistributionRefers to the way the producer or manufacturer delivers products, services, or information to the consumer
- 19. Distribution basicsChannels of distributionThe path a product takes from producer or manufacturer to consumerIntermediaryA business that acts as a third party or go-between in moving products from the manufacturer to the end userCybermediaryIs an internet channel of distribution that helps move products from the manufacturer to the consumer or industrial user
- 20. Direct vs. indirectDirect doesn’t use intermediaries, indirect doesExamples of direct 1. catalog sales – East Bay, LL Bean2. Home Shopping Network3. internet only companiesWhat is a “channel captain?” Company that controls the channelEx. Walmart