E-Business

Intro to Marketing Chapter 4

What is E-Business?

The wide range of business activities that take place through the internet. Categories are:

• E-tailing – virtual stores• B-2-B• Electronic data interchanges• Email, IM, blogs, podcast• Gathering demographic & product

info

Electronic Marketing Components

• E-marketing •Computer and non-computer

technologies•Creating, distributing, promoting,

and pricing goods and services to a target market over the Internet.

•Downloading music & videos•Booking a flight•Sending your printing to FedEx

Kinkos•E-marketing = B2C

Opportunities of E-Marketing:• E-commerce offers the following benefits:

•Global Reach •Personalization• Interactive Marketing•Right-time Marketing• Integrated Marketing

B-2-B E-Marketing• Using the internet for business transactions

between organizations• More Cost Effective

Electronic Data Interchange EDI

• Exchange of price quotes, purchase orders, invoices, inventory status

• Computer-to-Computer• Retail Link

•Procter & Gamble can look up Wal-Mart’s sales data in order to manage their own inventory.

B2C E-Marketing

• Selling Directly to Consumers over the Internet

Benefits of B2C E-Marketing

• Competitive Prices• Convenience• Personalized Service

Online Buyers

• Typical internet user is 35-64 years old, highly educated, urban, and affluent.

• Use among older Americans has increased rapidly

Online Sellers• Customers have no opportunity to smell or touch

products• Books, music, computer hardware and software

travel and concert tickets are the most popular goods and services sold on the Internet

• Top 5• Travel • Hardware & Software• Cars/parts• Apparel• Home Furnishings

Challenges

• Encryption• Encoding data

• Secure Sockets Layer• Public key encrypts the information and a private unique key is

used to decipher it• Privacy Issues

• Cookies, spyware, collecting information, firewalls

Internet Functions

1. Communication2. Information3. Entertainment4. Business

1. Marketing & Web Communication

• Email• Online Communities & Social

Networks•Discussion groups

• Newsgroups• Electronic Bulletin Boards

• Info for specific interests & announcements

Marketing and Web Communication

• Blogs• Journal for individual or organization• Good and bad feedback on the product

• Wiki• Web page that anyone can edit

• Podcast• Audio or video file that can be downloaded from a website to a

digital device• Promotions

• Banner & Pop-up Ads

2. Information

• Search Engines•Google

• Publications• Newsgroups• Government Sites• Educational Services

•Games•Radio and TV programming, music

•Marketers can offer competitive prices, speed, and boundless services.

•Geography no longer limits the size of the marketplace.

•Electronic books•Live news, sports, concerts

3. Entertainment