1
CHAPTER
8
8-1
8-2
8-3
8-4
E-COMMERCE AND
VIRTUAL MARKETING
What Is E-Commerce?
The Growing Importance of E-Commerce
Virtual Marketing and Distribution
The Role of Promotion for E-Commerce
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
2
Courtesy, CISCO SYSTEMS, INC.
Focus Questions:
 Do you agree that using the
Internet is the same as
socializing and shopping with
your friends at the mall?
 What problems might a
business encounter if it tries to
use the Internet only to sell
products without realizing the
other ways people use the
Internet?
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
3
8-1
WHAT IS E-COMMERCE?
GOALS
Describe the three stages of
development for e-commerce
businesses.
Discuss the importance of the
marketing concept to successful
e-commerce.
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
4
The Expanding World
of E-Commerce
Business on the net
From bricks to clicks
Stages of development
 Information stage
 Interaction stage
 Full integration stage
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
5
Success in E-commerce
Advantages of e-commerce
Disadvantages of e-commerce
The marketing concept applied to ecommerce
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
6
8-2
GROWING IMPORTANCE
OF E-COMMERCE
GOALS
Identify evidence of the growth of the
Internet.
Describe the various business uses of
the Internet for e-commerce.
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
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Growth of the Internet
Countries with the highest number of Internet
users in 2007 (in millions)
Country
United States
China
Japan
Germany
India
United Kingdom
Chapter 8
Number
of Users
Country
211
137
86
51
40
37
South Korea
Brazil
France
Italy
Russia
Canada
MARKETING
Number
of Users
34
32
31
31
24
22
© 2009 South-Western, Cengage Learning
8
Business Uses of the Internet
Communicating
Gathering information
Improving operations
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
9
8-3
VIRTUAL MARKETING
AND DISTRIBUTION
GOALS
 Differentiate virtual marketing from traditional
marketing.
 Describe distribution methods used in
e-commerce.
 Identify distribution problems experienced by
e-businesses and how they can be resolved.
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
10
Distribution for E-Commerce
Finding and buying products
Order processing
Product distribution
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
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Cost Savings
Average Cost Savings for Businesses when
Customers Use the Internet to Make Purchases
Product
Computer software
Savings
99%
Banking services
Airline tickets
Stocks
89%
87%
78%
Books
Toys and gifts
56%
48%
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
12
Distribution Problems
and Solutions
Transaction security
Expanded distribution and customer
service
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
13
8-4 THE ROLE OF PROMOTION
FOR E-COMMERCE
GOALS
Describe how companies use promotion
on the Internet.
Identify ways to increase the
effectiveness of online promotion.
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
14
Communicating with
Internet Users
Advertising expenditures
Promotion methods
 Online advertising
 Web sponsorship
 Priority placement
 Information websites
Other types of promotion
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
15
Preparing for
E-Commerce Marketing
Planning the shopping experience
Effective promotion methods
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning
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Customer Satisfaction with
Types of Shopping
Type
Shopping online
Shopping in stores
Shopping with catalogs
Chapter 8
MARKETING
% satisfied
73%
60%
56%
© 2009 South-Western, Cengage Learning
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Features Likely to Increase
Online Purchasing
 Close-up images of products
 Information on product availability
 Product comparison guides
 An easy-to-use search function
 Toll-free customer service number
 Consumer reviews and product evaluations
 An easy-to-use “shopping cart” and check out
feature
Chapter 8
MARKETING
© 2009 South-Western, Cengage Learning