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Consumer Benefits of Web Marketing

Consumer Benefits of Web Marketing. Access to greater amounts of dynamic information to support queries for consumer decision making Deep, nonlinear searches are customer-driven, not firm-driven. Consumer Benefits of Web Marketing. Ability to pre-test and purchase products online

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Consumer Benefits of Web Marketing

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  1. Consumer Benefits of Web Marketing • Access to greater amounts of dynamic information to support queries for consumer decision making • Deep, nonlinear searches are customer-driven, not firm-driven

  2. Consumer Benefits of Web Marketing • Ability to pre-test and purchase products online • Reduced costs for industrial consumers

  3. Company Benefits of Web Marketing • Reduction or elimination of distribution costs • Selling function is transferred to the customer • Opportunities to capture customer information

  4. Company Benefits of Web Marketing • Increased interaction between buyer and seller • Competition based on “specialty” rather than price • Reduced errors, costs, and time for information processing

  5. Company Benefits of Web Marketing • Reduced costs to suppliers • on-line databases of bid opportunities • on-line ability to submit bids • on-line review of awards • Creation of new markets and segments

  6. Classification of Commercial Web Sites • On-line storefront • Internet presence • flat ad • image and information

  7. Classification of Commercial Web Sites • Content • fee-based • sponsored, searchable database • Mall • Incentive site

  8. Effects of Electronic Commerce on Market Relationships • Relationships with producers • vertical integration • outsourcing • virtual corporation • Shift from vertical integration to virtual corporation

  9. Effects of Electronic Commerce on Market Relationships • Change in buyer-seller relationship • eliminating the middleman • relationship marketing • reduced product and market complexity, increased market penetration

  10. Effects of Electronic Commerce on Market Relationships • Change in buyer-seller relationship (cont’d) • new technologies • electronic catalogs and on-line shopping • on-line consultation and sales • database marketing • real-time interactive customer interaction

  11. New Information Partnerships • Benefits of information partnerships: • sharing hardware and software investments • data sharing • increased sales opportunities • improved customer service

  12. New Information Partnerships • Joint Marketing • Participating companies gain access to new markets and gain economies of scale • One channel, many services • Complementary relationship

  13. New Information Partnerships • Intra-industry • Competitive companies pool resources for survival • Third party networks and industry associations manage relationship

  14. New Information Partnerships • Buyer-Seller • Direct link between partner’s operations • Reduction of operations staff, paperwork

  15. New Information Partnerships • IT Vendor-Driven • Technology provider gets new markets • Industry participants offer new services • Vendor can “beta test” new technologies

  16. Securing Electronic Commerce • Authorization • Authentication • Integrity • Privacy • Theft • Sabotage

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