MAYNARD – Internet Marketing
TOPIC
E-Tailing
Essential
Question
NAME
Do Now:
How is the internet used?
How can I satisfy customers?
DATE
What kinds of products or services do you look up on the internet?
Have you ever bought anything online? If so what?
AIM:
Competencies &
Related SOLs
Mktg8125.066 Describe the purposes of an organizations website
Mktg8125.067 Explain the risks and rewards of having a website presence
Mktg8125.052 Describe channels of distribution
English 10.4 The student will read and interpret a variety of informational materials
English 11.4 The student will read and analyze a variety of informational materials
English 12.4 The student will read and analyze a variety of informational materials including electronic
resources
C/T 9-12.6 The student will use technology to locate, evaluate and collect information from a variety of sources
Study notes for quiz on Etailing
HW:
STUDENT NOTES FROM TEXT
Read pages 17-20 to complete the following notes
TERMS/TOPICS
DEFINITIONS/DETAILS
e-commerce
The conducting of business and communication transactions by electronic means
Bricks and mortar business
A business with an actual physical location, or store front
Ex.
McDonalds
Multi channel retailer
A retailer that sells its product via traditional channels as well as via an online channel
Ex.
Dicks Sporting goods
Pure play retailers
Sell primarily through the internet
Ex.
Amazon.com
e-commerce is the
Fastest growing form of commerce in the world
e-business
STUDENT NOTES FROM TEXT
Read pages 28- 38 to complete the following notes
Any process a business conducts over a computer network
Why people buy online
1. save time by not going to a store
2. can shop when stores are closed
3. avoid the holiday crowds
4. might be able to find better prices
5. can find products online more easily
6. find products not available in stores
7. easier to compare prices
8. have gifts sent directly to recipient
9. can avoid wrapping gifts
10. can earn loyalty points
11. purchase from wish list

Limitless buyers
Benefits & Characteristics of E-Commerce
Number of potential buyers is limitless

Open 24/7
All hours, e-commerce offers a distinct advantage to customers

Advertise, Market, and
Analyze
Effective and inexpensive ways to reach new and existing customers
Track purchasing habits
Brand loyalty
Refers to a customers preference for a particular product

Online retailers eliminate the cost of inventory storage
Managing inventory

Meeting Customer
Needs
Mass customization
Caters to individualized special choices rather than made-to-stock
Value chain
The sequence of design, production, and marketing efforts a business conducts to deliver its
Is the production of goods that offer specialized choices to mainstream buyers
products at the right place and time

Starting Out
A virtual store front is much faster, easier, and cheaper to set up than a bricks and mortor store

Pricing competitively
price is often the factor that makes or breaks the sale
Elastic demand
Pricing changes create a change in the amount of goods or services consumers are willing to
buy at a certain price
B2B
STUDENT NOTES FROM TEXT
Read pages 34-37 to complete the following notes
business to business, ex. School Supply Store
B2C
business to consumer ex. Office Depot
C2C
consumer to consumer, ex. Ebay
Retailers
STUDENT NOTES FROM TEXT
Read pages 46-51 to complete the following notes
Are establishments that sell goods and services to the general public
Wholesalers
Sell products to distributors or retailers and not usually the end-user market
Etailing
The buying and selling of retail goods on the internet
Specialty stores
Types of Retailers
Stores that specialize in specific kinds of products and offer a wide assortment within their
given categories
Ex.
Toys R Us, Borders, Ace Hardware, and REI
Department stores
These stores offer a variety of products and choices within each product line and a floor plan
that provides specialized departments.
Ex.
Sears, Foleys, Macys, JC Penny
Discount stores
May not offer specialize expertise in the products they sell, but they do offer incredibly low
prices
Ex.
Wal-Mart, (Kmart, Big Lots, Roses)
Services retailers
Sells services such as haircuts, medical care, or financial planning
Ex.
Banks, dental offices, pet groomers, and lawn maintenance operations
Non-store retailers
Businesses that use means other than traditional storefronts to sell their products
Ex.
Infomercials, catalogs, door-to-door solicitation, trade shows and vending machines
STUDENT NOTES FROM TEXT
Read pages 52-58 to complete the following notes
The Nature of E-Tailing
Product merchandising
Merchandising activities include acquiring products for sale, setting prices, displaying
products, and making them available for purchase.
Hyperlink
Connects you to another location on the same website or a related website
Cross-sell hyperlink
Takes you to an item associated with the item you're currently viewing
Upsell hyperlink
Refers you to a location that presents a similar but more upscale and more expensive item
Recommendation
hyperlink
Promotion hyperlink
Takes you to a product that might interest you based on products you purchase before
Zoom photos
Allow shoppers to see small details on products
Color change interfaces
Help customers see what the product would look like in a different color
Video clips
Provide short video showcases that zoomed in and around the product from every angle
The checkout process
Should be flexible, affordable and secure for the buyer and the seller
Refers you to a hot product or sale items the site is currently offering
Credit cards
Consumers use credit cards to pay for approximately 95% of all purchases on the Internet
Debit cards
Authorizing the withdrawal of money from the bank account
EFT
You pay for it by having money transferred from your checking account to the checking
account of the seller
Smart card
Looks like a credit card that has a microchip embedded in it loaded with data that can be
programmed for various applications
e-cash
A legal form of computer-based currency that allows for the purchase of items by credit card
check or money order, providing secure online transactions and processing
Ex
Paypal
Security Issues and
Concerns
Secure Sockets
Layer (SSL)
May keep customers from making purchases on your website
Helps encrypt and protect the information that customers enter into webpages when making a
purchase
Digital certificates
Issued by a trusted third party verified customers that a company is what it claims to be
Encryption
A computer program that scrambles customer information into a secret codes that unintended
parties do not have access to their information
Advantages of Etailing
Disadvantages of Etailing
1.
1.
2.
2.
3.
3.
4.
4.
5.
6.
Distribution
STUDENT NOTES FROM TEXT
Read pages 266-276 to complete the following notes
Refers to the way the producer or manufacturer delivers products, services, or
information to the consumer
Channels of distribution
The path a product takes from producer or manufacturer to consumer
Intermediary
A business that acts as a third party or go-between in moving products from the
manufacturer to the end user
Cybermediary
Is an internet channel of distribution that helps move products from the
manufacturer to the consumer or industrial user
Web distributor
Markets and sells goods or services bought from a manufacturer on a wholesale
basis to companies for use or for resale to the end user
Ex. Weather channel uses Dalet to manages its digital media systsm
Web affiliate
Forms a partnership with another online business and refers potential customer to
the partners Website for a commission or fee
Ex.
Aggregator
A company that distributes a number of products or services from a variety of
manufacturers or producers
Ex.
Wholesaler
Receives large shipments of products from many different producers. It breaks fthe
shipment into smaller batches for resale.
Ex. Dollar Days international a “web based virtual warehouse” offers small
businesses deals on thousands of consumer products, so they can compete with
large companies
Electronic customer relationship
Ecrm – the cornerstone of good service.
management
Type of System
Stand alone
Major Benefits
Major Drawbacks
Relatively easy to install, creates Relatively limited functionality, usually
customer history
Software suite
Designed
to
designed for call centers only
integrate
with More expensive than hosted CRM
existing ERP systems from same
vendor
Best of breed
CRM sole focus of system, More expensive than hosted CRM, can
highly customizeable
Hosted system
be more difficult to integrate than suites
Lower cost because software is Limited customization
rented, feasible for small and
midsized businesses
Shipping Company
Major Benefits
U.S. Postal Service (USPS)
Relatively low costs, signature Limited package tracking with some
often not required upon delivery
Major Drawbacks
shipping options
United States Parcel Service (UPS) Detailed package tracking on all More expensive than USPS, may require
shipments
Federal Express (FedEx)
signature upon delivery
Detailed packaged tracking on More expensive than USPS, may require
all shipments
signature upon delivery
Direct doesn’t use
, indirect does
Examples of direct
1.
2.
3.
What is a “channel captain?”
_________________________________________________________________
SAMPLE DISTRIBUTION CHANNEL STRUCTURES
Producer
Producer
__________
Agent
Agent
_____________
Wholesaler
Producer
__________
Producer
_______
Wholesaler
____________
____________
___________
Retailer
(Virtual) Retailer
_____________
Retailer
________
Retailer
_________
Consumer
Consumer
Consumer
Consumer
__________
Producer
____________
___________
Consumer
_________
E-Tailing Brochure Project
Use your notes on Etailing and create an informative brochure in MS Publisher
Directions:
Open Microsoft Publisher
Click on Publications for Print in the tab on the left side of the page
Choose Brochures
Click on the brochure design of your choice
3-Fold Brochure Format Guidelines
Flap
Security Issues
Inside Left
Benefits/Characteristics of
E-Commerce
Back
Your Name
Class Period
Date
Picture/Graphic
Inside Center
Types of Retailers
Cover
title
Picture/Graphic
Inside Right
Payment Options
*Differentiated Option – Create a poster with all of the above information
Etailing Persuasion Essay
Role Play Situation – You work for a local company that has done very well and is looking to expand. You
need to convince your boss that Etailing is the way to go.
Directions –
Write a 2 paragraph essay explaining the benefits to Etailing to convince your boss. Use your notes and
textbook as a resource.
Criteria
2 paragraphs (5-7 sentences each)
Used information from notes and text
Logical persuasion
Total
Points
60
30
10
100