Part 2 Retailing in Electronic Business.

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Category: Sales / Marketing
Section 2 Retailing in Electronic Trade Outline of Electronic Advertising Structure Business-arranged Electronic Promoting (B2B) Needs more exact record keeping, trackability, responsibility, and formal contracts, more often than not with high volume of exchanges and huge sum installments
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Part 2 Retailing in Electronic Commerce

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Overview of Electronic Marketing Structure Business-arranged Electronic Marketing (B2B) Needs more exact record keeping, trackability, responsibility, and formal contracts, for the most part with high volume of exchanges and substantial sum installments Consumer-situated Electronic Marketing (B2C) Mostly online; on the Internet Growing disconnected from the net as well, for the most part by utilizing savvy cards, despite the fact that it is still trial

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Advantages of Electronic Marketing Direct promoting Customization Online client administration Electronic shopping centers: Intermediaries (e.g. Web Mall) Stores (e.g. Amazon, J.C.Penney Online) Electronic delegates Global promoting Customers can arrange from cyberstores 24 hours a day, 7 days a week from wherever on the planet

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Forecast of the B2C Electronic Market Size ( Source: OECD, 1997) Forecasting Institutions 1997($ Mil.) 2000 ($ Mil.) IDC 1,000 117,000 VSAComm 48 3,500 VeriFone 350 65,000 Actif Media 436 46,000 Killen & Assoc. 775,000 Yankee 850 144,000 Jupiter 45 580 E-land 450 10,000 EU 228,000 USA 200 EITO 363 200,000 AEA/AU 200 45,000 Hambrecht & Quest 1,170 23,200 Forrester 518 6,579 Mean value 469 134,906

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Forecast of the B2C Electronic Markets (cont.) Kinds of things sold (Unit: Millions of U.S. Dollars) Items 1997 2002 Travel 911 11,699 PC hardware 986 6,434 Grocery 63 3,529 Software 85 2,379 Books 152 3,661 Music 37 1,591 Videos 15 575 Toys 2 555 Comsumer electronic 15 792 Health and Beauty 2 1,183 Initial Forecast of B2C Electronic Market Segments

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Forecast of the B2C Electronic Markets (cont.) What offers on the Internet? Things with high brand acknowledgment Goods that can be changed to digitized products like books, music, and feature Items with security surety given by very dependable or known merchants Relatively shabby things Repetitively obtained things, for example, basic needs Commodities with standard detail Items whose working techniques can be all the more successfully shown by a feature Packaged things which are understood to clients and which can\'t be opened notwithstanding when clients physically visit the store

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Business Models of Electronic Marketing Generalized Mall Vs. Specific Mall/Store Direct Marketing Manufacturers Vs. Roundabout Marketing Manufacturers Full Cybermarketing Vs. Halfway Cybermarketing Active Strategic Posture Vs. Responsive Strategic Posture Electronic Distributor Vs. Electronic Broker Global Marketing Vs. Territorial Marketing Electronic Mall Vs. Electronic Store Sales Vs. Client Services

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Business Models of Electronic Marketing (cont.) Direct advertising Vs. Commercial and dissemination of items to clients by means of Internet without delegate (e.g. electronic stores) Indirect showcasing Products are conveyed through outsider mediators (e.g. e-shopping centers) Full Cybermarketing Vs. Item deals just through the Internet (e.g. Amazon) Partial Cybermarketing Product deals additionally through customary stores (e.g. Barnes & Noble)

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Business Models of Electronic Marketing (cont.) Electronic wholesaler Vs. An electronic wholesaler is in charge of request satisfaction and surety. (e.g. Dell, Wal-Mart) Electronic facilitate An electronic representative is simply presenting suppliers, who manage the requested things themselves Electronic store (e-store) Vs. Managing things are taken care of by a solitary administration Electronic shopping center (e-shopping center) Dealing things are taken care of by more than a solitary electronic store

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Business Models of Electronic Marketing (cont.) Proactive key stance toward cybermarketing Vs. a company’s fundamental conveyance channel is the Internet; inward administration (e.g. stock and operations administration) is engaged to influence the advantage of cybermarketing (e.g. Dell) Reactive key stance toward cybermarketing online dispersion channel is only extra to customary physical dissemination channel as the company’s primary circulation channel Global Vs. Local advertising Limiting components: perishable merchandise, conveyance costs, lawful limits, dialect Sales Vs. client administrations Web website use as client administration to decrease call focus staff (e.g. programming/equipment organizations)

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Direct Marketing Active and full direct Marketing Dell Computer Corporation Case Founding soul of dell: telemarketing Emergence of the Internet: use as immediate promoting station Astonishingly high development and returns 1998:largest producer/advertiser of business PCs, developing the quickest among all significant PC framework creators $14 Mil. every day through the Internet (2/99) Internet deal is supplemented by phone,fax, email call focus administration

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Direct Marketing (cont.) Dell’s Critical Success Factors Advanced web applications (Internet use from client the distance back through production network) Price intensity inferable from mass-customization and effective acquisition/conveyance (no change of business procedure important) Database showcasing and client closeness (watching so as to find out about clients them utilize the Web website) Global reach and worth included administrations at a solitary contact point (more than 10000 administration suppliers, suppliers and clients are identified with single contact point)

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Direct Marketing (cont.) Dell’s Critical Success Factors (cont.) High dependability and notoriety (uncommon high no. of honors for execution, dependability, administration) Delivery bolster (straightforward configuations in 2-3 days, normal in 5 days, complex in 7-10 days, request status data)

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Direct Marketing (cont.) Reactive and Partial Direct Marketing Sell their items fundamentally through conventional channels like retail establishments, markdown stores, and establishments Ford Case Internet as extra conveyance channel merchants as accomplices should be incorporated (requests may not be physically satisfied without the participation of merchants) the got requests can then be doled out to the closest merchant who claims the coveted auto in the stock the dealer’s stock data ought to be shared via automakers through a typical system

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Direct Marketing (cont.) Ford’s receptive direct showcasing model (method) Reactive and Partial Direct Marketing Pick the inside upholstery that suits your taste Choose the body style you most longing Select the choice package(s) that engages you Add other individual choices to construct your most agreeable, helpful redid vehicle Pick your most loved outside paint shading The merchant will get in touch with you with a cost and accessibility of the vehicle you designed Select the brand of auto or truck that premiums You can change alternatives to oblige the monetary allowance, and finish the setup Decide whether to rent or purchase, with the guide of Payment Calculator System Search a merchant online by merchant name, city, or state Send the “Vehicle Summary” to the merchant Apply to fin Then the Online Shopping Service System will give you a “Vehicle Summary” Ford underpins a pre-possessed showroom in the accompanying way : Test commute and acknowledge conveyance Enter your ZIP code Search the stock Secure your vehicle Enter your own data Print your request Explore renting or financing choices Confirm your request Confirm you conveyance Select a dealership for test-commute and conveyance Choose a Ford Extended Service Plan Dealers are not focused for end but rather accomplices

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Online Customer Service Provided in conjunction with online deals Provided to items which are sold logged off Examples: administration and bolster landing page of Hewlett Packard (HP) or Microsoft

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Active Electronic Intermediaries Pure electronic shopping center Company’s retailing business exists just on the Internet Electronic wholesalers assume full liability of satisfying requests and gathering installments (e.g. CDnow, Virtual Vineyard) Electronic dealers help the hunt procedure of discovering the proper items and their merchants (e.g. Web Mall) Partial electronic shopping center Electronic shopping center as one of existing dissemination channels

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Active Electronic Intermediaries (cont.) Generalized Electronic Intermediaries Examples : Choice Mall,iMall, as of late Yahoo, Excite Provide a Directory Keyword internet searcher Message encryption Optional Web website facilitating administration and A typical stage of electronic installments Necessary variables to make shopping fruitful clients require a solid screening capacity of value and dependability of brands and organizations Competing electronic channels to discover things required ( e-dealers ought to give some separated fascination)

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Active Electronic Intermediaries (cont.) Specialized Electronic Distributors Cyber Bookstores Amazon, Barnes & Noble Cyber CD Stores Columbia House, Music Boulevard, CD Universe, and CDNow Digitized Products and Services Stores Software, amusements, CDs, and features Cyber Flower Stores 1-800-FLOWERS

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Reactive Electronic Department Store Electronic Department Stores Worldwide Marks & Spencer in the U.K., La Redoute in France, Wal-Mart in the U.S.A. Regular technique is discovering huge advantages from marketing online (Reduced costs? Decreased shopping time? Accommodation Shopping from wherever?) Offering electronic administration on the Internet is a supplementary channel of commercial By 2000, more than 40% of all U.S. real retailing will of

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