E tailing rev 12


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E tailing rev 12

  1. 1. E-tailing<br />How is the internet used?<br />How can I satisfy customers?<br />
  2. 2. e-commerce<br />The conducting of business and communication transactions by electronic means<br />
  3. 3. Types of E-Commerce<br />Bricks and mortar business<br />A business with an actual physical location, or store front<br />Ex. McDonalds<br />Multi channel retailer<br />A retailer that sells its product via traditional channels as well as via an online channel<br />Ex. Dicks Sporting goods<br />Pure play retailers<br />Sell primarily through the internet<br />Ex. Amazon.com<br />
  4. 4. e-commerce is the <br />Fastest growing form of commerce in the world<br />
  5. 5. Where are we Headed Next?<br />
  6. 6. e-business<br />Any process a business conducts over a computer network<br />Video conferencing<br />
  7. 7. Why People Buy Online<br />save time by not going to a store<br />can shop when stores are closed<br />avoid the holiday crowds<br />might be able to find better prices<br />can find products online more easily<br />find products not available in stores<br />easier to compare prices<br />have gifts sent directly to recipient<br />can avoid wrapping gifts<br />can earn loyalty points<br />purchase from wish list<br />
  8. 8. Benefits & Characteristics of E-Commerce<br />Limitless buyers<br />Number of potential buyers is limitless<br />Open 24/7<br />All hours, e-commerce offers a distinct advantage to customers<br />
  9. 9. Benefits & Characteristics of E-Commerce cont.<br />Advertise, Market, and Analyze<br />Effective and inexpensive ways to reach new and existing customers<br />Track purchasing habits<br />Brand loyalty<br />Refers to a customers preference for a particular product<br />Managing inventory<br />Online retailers eliminate the cost of inventory storage<br />
  10. 10. Benefits & Characteristics of E-Commerce cont.<br />Meeting Customer Needs<br />Caters to individualized special choices rather than made-to-stock<br />Mass customization<br />Is the production of goods that offer specialized choices to mainstream buyers<br />Value chain<br />The sequence of design, production, and marketing efforts a business conducts to deliver its products at the right place and time<br />
  11. 11. Benefits & Characteristics of E-Commerce cont.<br />Starting Out<br />A virtual store front is much faster, easier, and cheaper to set up than a bricks and mortor store<br />Pricing competitively<br />price is often the factor that makes or breaks the sale<br />Elastic demand<br />Pricing changes create a change in the amount of goods or services consumers are willing to buy at a certain price<br />
  12. 12. Ex. Of elastic demand<br />
  13. 13. Ecommerce Classifications:<br />B2B<br />business to business, ex. School Supply Store<br />B2C<br />business to consumer ex. Office Depot<br />C2C<br />consumer to consumer, ex. Ebay<br />
  14. 14. Retailing Basics<br />Retailers<br />Are establishments that sell goods and services to the general public<br />Wholesalers<br />Sell products to distributors or retailers and not usually the end-user market<br />Etailing<br />The buying and selling of retail goods on the internet<br />
  15. 15. Types of Retailers<br />Specialty stores - Stores that specialize in specific kinds of products and offer a wide assortment within their given categories<br />Ex. Toys R Us, Borders, Ace Hardware, and REI<br />Department stores - These stores offer a variety of products and choices within each product line and a floor plan that provides specialized departments.<br />Ex. Sears, Foleys, Macys, JC Penny<br />Discount stores - May not offer specialize expertise in the products they sell, but they do offer incredibly low prices<br />Ex. Wal-Mart, (Kmart, Big Lots, Roses)<br />Services retailers - Sells services such as haircuts, medical care, or financial planning<br />Ex. Banks, dental offices, pet groomers, and lawn maintenance operations<br />Non-store retailers - Businesses that use means other than traditional storefronts to sell their products<br />Ex.Infomercials, catalogs, door-to-door solicitation, trade shows and vending machines<br />
  16. 16. Advantages of Etailing<br />etailing increases a businesses customer base<br />Websites attract new customers<br />Customers can shop from their homes<br />A businesses online store is never closed<br />Customers can shop 24/7, regardless of weather, traffic jams, or distance from the retail store<br />A well designed, easy to use, and frequently updated website is a valuable channel for any business<br />
  17. 17. Disadvantages of Etailing<br />Customers are reluctant to release personal information on a website<br />Customers are concerned about the security of their credit card accounts<br />Transactions may be interrupted on the Internet<br />Customers are unable to examine merchandise or try on clothing<br />
  18. 18. Distribution<br />Refers to the way the producer or manufacturer delivers products, services, or information to the consumer<br />
  19. 19. Distribution basics<br />Channels of distribution<br />The path a product takes from producer or manufacturer to consumer<br />Intermediary<br />A business that acts as a third party or go-between in moving products from the manufacturer to the end user<br />Cybermediary<br />Is an internet channel of distribution that helps move products from the manufacturer to the consumer or industrial user<br />
  20. 20. Direct vs. indirect<br />Direct doesn’t use intermediaries, indirect does<br />Examples of direct <br />1. catalog sales – East Bay, LL Bean<br />2. Home Shopping Network<br />3. internet only companies<br />What is a “channel captain?” <br />Company that controls the channel<br />Ex. Walmart<br />