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4.8 E-COMMERCE (Features of e-commerce (Interactivity (Internet allows for…
4.8 E-COMMERCE
e-Commerce is the buying and selling of goods and services on the internet
Features of e-commerce
Interactivity
Internet allows for two-way communication between the business and customer
Personalisation
Marketing messages can now be targeted at individual consumers
Ubiquity
Access to markets and consumers access to business is available at all times and all locations
Information richness
Complex and detailed promotional messages can be delivered by the internet
Global reach
IT reaches across national boundaries and open up global market
Universal standards
Ease of access to internet for both business and customers
Effects of changing technology and e-commerce on the marketing mix
Price
Prices can be compared rapidly
Difficulties in price discrimination through geographical separation of market
Promotion
Saves costs and allow for direct marketing at groups of consumers
Materials and packaging need to meet the legal and cultural demand in different countries
Existence of banners, web pages, blogs and viral marketing
Product
Businesses selling over the internet
Products adjusted to meet the legal and cultural demand of different countries
Individual requirements can be built into product or service
Place
Importance of an effective and rapid logistics system to transport product internationally
Small proportion of all trades in traditional channels
Types of e-commerce
Business to Consumer (B2C)
The business will display products and prices on its website and record customer details and checkout to accept payment
B2C is transactions conducted directly between a company and consumers who are the end-users of its products or services
Consumers browse product from information pages on business website, select product and pay for them at an online checkout
Consumer to Consumer (C2C)
C2C sites makes money from fees charged to sellers for listing items for sale, adding on promotional features and completing transactions
C2C is a business model based on e-commerce that creates a facility that allows consumer to trade with each other
Limitations:
no payment guarantee, lack of quality control, difficulty in making payments
Business to Business (B2B)
B2B is as same as B2C but its transactions normally required a more complex business system
B2B is transactions conducted directly between a supplying business and a purchasing business
Need to integrate the receipt of orders with other administrative systems
Evaluation of e-commerce
Limitations
To Consumer
Must have reliable internet connection
Delays in receiving goods
Not able to touch and see tangible products
To Business
Website must be kept friendly and up to date
Cost and reliability of postal service internationally
Some countries have low speed internet connections
Benefits
To Business
Inexpensive
Accurate records can be kept
Business can reaches worldwide audience
To Consumer
Online stores open 24/7
Ability to sell to other consumers
Internet is convenient for consumers to use