e-business in contemporary marketing bagus nurcahyo, dr. programme of study of marketing management...
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E-Business in Contemporary Marketing
Bagus Nurcahyo, Dr. Programme of Study of Marketing ManagementUndergraduate Programme of Business & EntrepreneurshipGunadarma University
Objectives
E-Business in Contemporary Marketing
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Define e-business and discuss how marketers use the Internet to achieve business success.
Distinguish between a corporate Web site and a marketing Web site.
List the major forms of B2B marketing.
Explain business-to-consumer (B2C) e-marketing.
Identify online buyers and sellers.
Describe some of the challenges associated with online marketing and e-business.
Discuss how marketers use the communication function of the Web as part of their online marketing strategies.
Outline the steps involved in developing successful e-business Web sites and identify methods for measuring Web site effectiveness.
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E-Business in Contemporary Marketing
WHAT IS E-BUSINESS?
• E-business Firm that targets customers by collecting and analyzing business information, conducting customer transactions, and maintaining online relationships with customers.
• Online retails sales in the U.S. totaled nearly $86 billion in a recent year.
• E-marketing Strategic process of creating, distributing, promoting, and pricing goods and services to a target market over the Internet or through digital tools. Examples:
• Researching computer printers on CNet.com and then placing an order at Newegg.com.
• Legally downloading music and videos from Apple Computer’s iTunes Web site.
E-Business in Contemporary Marketing
CAPABILITIES AND BENEFITS OF E-MARKETING
E-Business in Contemporary Marketing
TYPES OF BUSINESS WEB SITES
• Corporate Web site Site designed to increase a firm’s visibility, promote its offerings, and provide information to interested parties.
• Purpose is to build customer goodwill and assistchannel members in their marketing efforts.
• Marketing Web site Site whose main purpose is to increase purchases by visitors.
• Many try to engage visitors in interactions that move them closer to a desired marketing outcome.
E-Business in Contemporary Marketing
B2B E-MARKETING
• Business-to-business (B2B) e-marketing Use of the Internet for business transactions between organizations.
• Accounts for 90 percent of all e-business activity.
• Accounts for 10 percent of all B2B transactions.
• Increases efficiency of business transactions, which typically involve more steps than consumer transactions.
• Electronic data interchange—computer-to-computer exchanges of price quotations, purchase orders, invoices, and other sales information between buyers and sellers.
• Web services—Internet-based systems that allow parties to communicate electronically with one another regardless of the computer operating system they use.
E-Business in Contemporary Marketing
• Extranets—secure networks used for e-marketing and accessible through the firm’s Web site by external customers, suppliers, or other authorized users.
• Private exchanges—secure Web site at which a company and its suppliers share all types of data related to e-marketing, from product design through delivery of orders.
• Electronic exchanges—online marketplaces that bring buyers and sellers together in one electronic marketplace and cater to a specific industry’s needs.
• E-procurement—Web-based systems that enable all types of organizations to improve the efficiency of their bidding and purchasing processes.
E-Business in Contemporary Marketing
ONLINE SHOPPING AND B2C E-MARKETING
• Business-to-consumer (B2C) e-marketing Selling directly to consumers over the Internet. Also called e-tailing.
• Service providers such as banks are an important segment of e-tailing.
• Two types of B2C Web sites
• Shopping sites such as Gap.com where customers can get product information and make purchases online.
• Information sites such as Toyota.com where customers can get product information but cannot make purchases online.
E-Business in Contemporary Marketing
ELECTRONIC STOREFRONTS
• Electronic storefront Company Web site that sells products to customers.
• Example: Walmart’s electronic storefront.
• Example: Land’s End’s electronic storefront.
• Growth anticipated with the increase in broadband connections.
• Broadband shoppers typically spend 34 percent more online than narrowband shoppers.
BENEFITS OF B2C E-MARKETING
• Lower prices.
• Convenience.
• Personalization.
E-Business in Contemporary Marketing
ONLINE BUYERS AND SELLERS
• Demographics of customers are changing as Internet penetration grows.
E-Business in Contemporary Marketing
E-Business in Contemporary Marketing
E-BUSINESS AND E-MARKETING CHALLENGES
ONLINE PAYMENT SYSTEMS
• Companies have developed secure payment systems to protect customer information.
• Encryption, Secure Sockets Layer, and electronic wallets.
PRIVACY ISSUES
• Protection of personal information is customers’ top security concern.
• Cookies and spyware allow companies to personalize Internet experience but also invade computer users’ privacy.
• To reassure customers, many online merchants have signed on with online privacy organizations such as TRUSTe.
• Companies install firewalls to protect private corporate data.
E-Business in Contemporary Marketing
INTERNET FRAUD
• Internet Crime Complaint Center logged more than 231,000 complaints in a recent year.
• Phishing High-tech scam that uses authentic-looking e-mail or pop-up messages to get unsuspecting victims to reveal personal information.
• Payment fraud is also growing.
WEB SITE DESIGN AND SERVICE
• As many as 70 percent of Internet shopping carts are abandoned before any purchase is made.
• Companies that have brick-and-mortar experience often have more experience satisfying customers than Internet-only retailers.
CHANNEL CONFLICTS
• Direct sales to customers can compete with business partners such as retailers and distributors, disputes called channel conflicts.
E-Business in Contemporary Marketing
USING THE WEB’S COMMUNICATION FUNCTION
• Web has four main functions: e-business, entertainment, information, and communication.
• Communication is Web’s most popular function.
• Firms use e-mail to communicate with customers, suppliers, and other partners.
• Spam Popular name for junk e-mail.
ONLINE COMMUNITIES
• Internet forums, newsgroups, electronic bulletin boards, and Web communities that appeal to people who share common interests.
E-Business in Contemporary Marketing
BLOGS• Blog Short for Web log, an online journal written by a blogger.
• Some incorporate wikis and podcasts.
• Corporate blogs can help build brand trust.
• Example: Apple’s iLounge
• Employee blogs can humanize a company, but negative comments can harm it.
WEB-BASED PROMOTIONS• Banner and pop-up ads on Web sites, and online coupons.
• Search marketing Paying search engines, such as Google, a fee to make sure that the company’s listing appears toward the top of the search results.
E-Business in Contemporary Marketing
MANAGING A WEB SITE
DEVELOPING SUCCESSFUL WEB SITES
E-Business in Contemporary Marketing
• Planning and preparation—company’s goal for its Web site determines scope, content, and design.
• Will the site be maintained in-house or by a contractor?
• What will the site be named?
• Content and connections—important factor for whether visitors return to a site.
• Relevant to viewers, easy to access and understand, updated regularly, and compelling and entertaining.
• Most small businesses are better off outsourcing to meet their hosting and maintenance needs.
• Costs and maintenance—development, placing the site on a Web server, and maintaining, updating, and promoting the site.
E-Business in Contemporary Marketing
MEASURING WEB SITE EFFECTIVENESS
Click-through rate Percentage of people presented with a banner ad who click on it.
Conversion rate Percentage of visitors to a Web site who make a purchase.
Research study Percentage of visitor based on survey
Profitability Percentage of profit that made from e-business
Web site traffic count Percentage of people who visit the site
E-Business in Contemporary Marketing
For Further Information
Bagus Nurcahyo,Dr.
Programme of Study of Marketing Management,Undergraduate Programme of Business & Entrepreneurship, Gunadarma University,Margonda Raya St. No. 100, Pondok Cina, Depok,Phone: 021-78881112 ext 456Mobile: 08161112590Official site: http://bagus.gunadarma.ac.idWeb Blog: http://gus-nur69.wordpress.comE-mail: [email protected]