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4.8 E-COMMENCE (Features (ubiquity, customization, global reach,…
4.8 E-COMMENCE
Features
ubiquity
customization
global reach
integration
global standard
Effect of e-commence on Marketing Mix
Price
make easy price comparisons
increased use of direct selling
reduce distribution
costs for producers
Product
sell to wider customers base
allow to stock wide range of products
customers can view a wide range of products
product is delivered according to the individual needs
Promotion
online advertising
provides multiple ways for businesses
to promote
online surveys
Place
reduced the need for
intermediaries in the chain of distribution
Benefits to Firms
reach a wide target market
more cost-effective method
high advertising revenue
helps to cut costs for businesses
Costs to Firms
payment process may lower the sales
Businesses spend significant sums trying to find measures to curb online fraud
Firms may be vulnerable to competitors who can gain access to their product details
may turn out to be a high risk venture
Costs to Consumers
may not have the ability to try or feel certain products
Online pop-up advertisements and advertising spam are considered major distractions
In some countries, consumers may lack tools such as computers
sometimes faced with too much information
Types of E-Commence
Business-to-Business (B2B)
Business-to-consumers (B2C)
Consumers-to-consumers (C2C)
Benefits to Consumers
can trade on the Internet
in the comfort of their location
Increased choice
increases customers’ satisfaction and
makes them happy