Describe some of the important uses of Internet marketing 2 Understand how e

Describe some of the important uses of internet

This preview shows page 123 - 127 out of 129 pages.

1. Describe some of the important uses of Internet marketing. 2. Understand how e-commerce can offer more customer value. 3. Describe some of the key trends in e-commerce. 4. Appreciate the potential power of electronic retailing. 5. Know the critical issues facing e-commerce. TWO CLASSES OF INTERNET USE Business-to-Business (B2B) Business-to-Consumer (B2C) USE OF INTERNET Facilitating Sales – Information source Virtual Communities Brand Building Selling Merchandise 122
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INTERNET SHOPPING REVENUES ARE A RELATIVELY SMALL PERCENTAGE OF CONSUMER RETAIL SPENDING—BUT GROWING! A VERY POSSIBLE FUTURE 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 ? 123
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Jack : 5 Five pictures of the fishing reels appear on the screen with the price, brand name, and the electronic retailer selling 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. ANTHONY : How would you like to pay for this ? (menu appears) Jack : American Express ANTHONY : Sports Authority the firm selling the reel selected suggests a new fishing glove to the reel. Jack clicks on the glove and it appears on the 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 cost of $5.00 ANTHONY : Just a reminder. You have not purchased dress shirts in six months. Do you wish to reorder at this time ? Jack : Yes ANTHONY : Same styles ? Jack : Yes WHY DO PEOPLE VISIT A “BRICK & MORTAR” RETAILER ? Merchandise assortments Service - Convenience (location) - Information to make good selections Price - Total cost to consumer - Go to store, find right merchandise, return merchandise Entertainment Social interaction 124
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POTENTIAL CUSTOMER BENEFITS OFFERED BY ELECTRONIC RETAILING Vast number of alternatives Information tailored to individual consumers to help them make easier and better purchase decisions - Super sales associate - Side by side comparisons - Full motion video MERCHANDISE SOLD SUCCESSFULLY THROUGH ELECTRONIC RETAILING (2013 data) Computer Hardware $56 billion Clothing
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