E Commerce

Topics ,[object Object],[object Object],[object Object],[object Object]

E-Commerce Takes Off ,[object Object],[object Object],E-Commerce Influence, Ordering and Buying

E-Commerce Takes Off Consumer spending online is on the rise! Fig 12.3a

E-Commerce Takes Off Breakdown of 1998 Online Consumer Spending Fig 12.3b $13.5 - Researched online, ordered and paid for offline $10.8 – Ordered online, paid for offline $16.3 - Researched online, ordered and paid for offline $11.0 – Paid for online $4.7 – Ordered online, paid for offline BIG TICKET ITEMS SMALL TICKET ITEMS

E-Commerce Takes Off ,[object Object],[object Object],[object Object],[object Object],[object Object],E-Commerce Impact on Web Sites Figure 12.4 Majority of E-commerce Sites with One-Day Response

E-Commerce Takes Off ,[object Object],[object Object],[object Object],[object Object],[object Object],E-Commerce Impact on Web Sites

E-Commerce Takes Off ,[object Object],[object Object],The Personalization/E-commerce Link Figure 12.6: E-Commerce Is Reinforced by Personalization Amount of Personalization E-Commerce Activity

E-Commerce Takes Off ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],E-Commerce Impact on Web Sites

E-Commerce Takes Off The Profit Pool Concept ,[object Object],[object Object],[object Object],[object Object]

E- Commerce Takes Off ,[object Object],[object Object],[object Object],[object Object],Desirable Features of Online E - Commerce Allies Anchor Service Extension Service High customer acquisition cost Profitable pool component Frequent customer content High profit/revenue ratio Strong positioning Consistent position to anchor Trusted Effective, reliable Table 12.1

E-Commerce Takes Off This suggests that auto insurance, loans and leasing plans are highly desirable partners for both new and used car dealers Figure 12.7

E-Commerce Takes Off ,[object Object],[object Object],[object Object],[object Object],[object Object],New intermediaries complicate the split of profits between elements of the profit pool Example: Online car sales

E-Commerce Takes Off Table 12.3: Steps for Online Auto Buying

E-Commerce Takes Off Table 12.3 continued Stage Service Providers Growth Drivers Consumer Participation (millions of households) 1998 2003

The Pace of E-Commerce ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],E-Commerce Buying

The Pace of E-Commerce For e-commerce to continue to grow as quickly as forecasters expect, online selling must excel on the fundamentals that drive buyers Price Online buying is cheaper than traditional methods Assortment The range of products better matches buyer desires Convenience The timing, location and buying process are superior Entertainment Buying online is more fun than alternatives

The Pace of E-Commerce ,[object Object],[object Object],[object Object],Saving Money: The Simplest Reason to Buy Online Figure 12.9 – Comparison of Bestseller Prices

The Pace of E-Commerce ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Saving Money: The Simplest Reason to Buy Online

The Pace of E-Commerce ,[object Object],[object Object],[object Object],[object Object],[object Object],E-tailers Offer Assortment & Convenience Table 12.6 Physical Retail Problems

The Pace of E-Commerce ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Entertainment

Distribution Strategies Channel Structure Options ,[object Object],[object Object],Figure 12.13 Alternative Channel Responses

Distribution Strategies ,[object Object],[object Object],[object Object],[object Object],Channel Conflict Traditional distribution channels are threatened by online commerce

Distribution Strategies Figure 12.14 Likelihood of Channel Conflict

Distribution Strategies E-Commerce and the Proper Distribution System ,[object Object],[object Object],[object Object],[object Object]

Distribution Strategies Real-Time Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object]

Distribution Strategies However, intermediaries reduce the total number of contacts a firm has Channel Contacts and Learning ,[object Object],[object Object],[object Object],[object Object],[object Object]

Distribution Strategies Data-Driven Intermediaries ,[object Object],[object Object],[object Object],[object Object],[object Object]

Competing Against the Net ,[object Object],[object Object],[object Object],[object Object],[object Object],Retailer Responses to the E-Commerce Challenge

Competing Against the Net ,[object Object],[object Object],[object Object],Retailer Responses to the E-Commerce Challenge Stage Experiences Deliver Services Make Goods Extract Commodities Market Premium Pricing Undifferentiated Differentiated Competitive Position

Competing Against the Net ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Retailer Responses to the E-Commerce Challenge

E Commerce

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E Commerce