How is the internet used?
How can I satisfy customers?
 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
 Fastest
world
growing form of commerce in the
 Any
process a business conducts over a
computer network
Video conferencing
save time by not going to a store
 can shop when stores are closed
 avoid the holiday crowds
 might be able to find better prices
 can find products online more easily
 find products not available in stores
 easier to compare prices
 have gifts sent directly to recipient
 can avoid wrapping gifts
 can earn loyalty points
 purchase from wish list

Limitless buyers
 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
Managing inventory
 Online retailers eliminate the cost of inventory
storage
Meeting Customer Needs
 Caters to individualized special choices
rather than made-to-stock
Mass customization
 Is the production of goods that offer
specialized choices to mainstream
buyers
Value chain
 The sequence of design, production, and
marketing efforts a business conducts to
deliver its 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
 business to business, ex.
School Supply Store
B2C
 business to consumer ex.
Office Depot
C2C
 consumer to consumer, ex.
Ebay
Retailers
 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
Interactive notes activity
 etailing
increases a businesses customer base
 Websites attract new customers
 Customers can shop from their homes
 A businesses online store is never closed
 Customers can shop 24/7, regardless of
weather, traffic jams, or distance from the
retail store
 A well designed, easy to use, and frequently
updated website is a valuable channel for
any business
 Customers
are reluctant to release personal
information on a website
 Customers are concerned about the security
of their credit card accounts
 Transactions may be interrupted on the
Internet
 Customers are unable to examine
merchandise or try on clothing
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 gobetween 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
 Direct
does
doesn’t use intermediaries, indirect
 Examples
of direct
 1. catalog sales – East Bay, LL Bean
 2. Home Shopping Network
 3. internet only companies
 What
is a “channel captain?”
Company that controls the channel
Ex. Walmart