Powerpoints Segment 20

Powerpoints Segment 20 - Segment 20: Interactive Marketing...

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Unformatted text preview: Segment 20: Interactive Marketing and E-Commerce (Related chapter in text: 21) LEARNING OBJECTIVES x x x x x Describe some of the important uses of Internet marketing. Understand how e-commerce can offer more customer value. Describe some of the key trends in e-commerce. Appreciate the potential power of electronic retailing. Know the critical issues facing e-commerce. Two Classes of Internet Use Two x x Business-to-Business (B2B) Business-to-Consumer (B2C) Use of Internet Facilitating Sales -- Information Source x Virtual Communities x Brand Building x Selling Merchandise x Internet Shopping Revenues are a Relatively Small Percentage of Consumer Retail Spending On the Other Hand ... On Generation Y is Growing Up With Computers -- Views Them as an Appliance. x Women Now Use the Internet As Much As Men -- and Women Do More Shopping! x Present offerings do not reflect all the potential benefits to consumers x A (Very) Possible Scenario Jack Jamison sits in front of his home electronic center reviewing his engagement calendar displayed on his TV screen. He sees he has a fishing trip scheduled in two weeks and decides to buy a new reel for the occasion. He switches to his personal electronic shopper, ANTHONY, and initiates the following exchange: ANTHONY: Do you wish to browse, go to a specific store, or buy a specific item? Jack: Specific item ANTHONY: Type of item? Jack: Fishing Reel ANTHONY: Type? (menu appears on screen) Jack: Salt Water, Light Tackle ANTHONY: Price range? (menu appears) Jack: $200 ANTHONY: 121 items have been identified. How many do you want to review? Jack: 5 Five pictures of the fishing reels appear on the screen with the price, brand name, and the electronic retailer selling it listed beneath each one. Jack clicks on one of the reels and it is enlarged on the screen. Another click and Jack views the reel from different angles. Another click and specifications appear. Jack repeats this routine with each reel. Jack then clicks for a comparison chart summarizing the features of each reel. He selects the one he likes. ANTHONY knows the rod Jack will be using with the reel and the size and fittings needed.] needed.] ANTHONY: How would you like to pay for this? (menu appears) (menu Jack: American Express ANTHONY: Sports Authority [the firm selling ANTHONY: the reel selected] suggests a new fishing glove to use with the reel. to [Jack clicks on the glove and it appears on the [Jack screen on Jack’s hand. He inspects the glove as he inspected the reels. He decides to purchase the glove. ANTHONY then asks Jack about delivery. Jack selects two day delivery at a cost of $5.00] cost ANTHONY: Just a reminder. You have not purchased dress shirts in six months. Do you wish to reorder at this time? Jack: ANTHONY: Jack: Yes Same styles? Yes Why Do People Visit a “Brick & Mortar” Retailer? “Brick Merchandise Assortments x Service x q Convenience (Location) q Information To Make Good Selections x Price - Total Cost To Consumer q Go To Store, Find Right Merchandise, Return Merchandise Entertainment x Social Interaction x Potential Customer Benefits Potential Offered By Electronic Retailing Vast Number of Alternatives x Information Tailored to Individual Consumers to Help Them Make Easier and Better Purchase Decisions x q Super Sales Associate q Side By Side Comparisons q Full Motion Video Merchandise Sold Successfully Through Electronic Retailing Through Travel Services $63 billion x Clothing $13 billion Clothing x Computer Hardware $11 billion Computer x Consumer Electronics $9 billion Consumer x Autos/Auto Parts $9 billion Autos/Auto x Books $4 billion Books x ISSUES ISSUES x x x x x Bandwidth! Security of Transactions Need for Search Engines like ANTHONY Will Manufacturers Sell Directly to Consumers and Bypass Retailers (disintermediation)? Will Price Competition Increase with Lower Search Cost? OTHER TRENDS OF IMPORTANCE IMPORTANCE x Mobile x Trends (wireless) technology in Internet Advertising x WI-FI ...
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