E-TAILINGHow is the internet used?

How can I satisfy customers?

E-COMMERCE The conducting of business and

communication transactions by electronic means

TYPES OF E-COMMERCEBricks and mortar business A business with an actual physical

location, or store front Ex. McDonaldsMulti channel retailer A retailer that sells its product via

traditional channels as well as via an online channel

Ex. Dicks Sporting goodsPure play retailers Sell primarily through the internet Ex. Amazon.com

E-COMMERCE IS THE Fastest growing form of commerce in

the world

WHERE ARE WE HEADED NEXT?

E-BUSINESS Any process a business conducts over a

computer network

Video conferencing

WHY PEOPLE BUY ONLINE 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

BENEFITS & CHARACTERISTICS OF E-COMMERCE

Limitless buyers Number of potential

buyers is limitless

Open 24/7 All hours, e-commerce

offers a distinct advantage to customers

BENEFITS & CHARACTERISTICS OF E-COMMERCE CONT.

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

BENEFITS & CHARACTERISTICS OF E-COMMERCE CONT.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

BENEFITS & CHARACTERISTICS OF E-COMMERCE CONT.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

EX. OF ELASTIC DEMAND

ECOMMERCE CLASSIFICATIONS:B2B business to business, ex.

School Supply Store

B2C business to consumer

ex. Office Depot

C2C consumer to consumer,

ex. Ebay

RETAILING BASICSRetailers Are establishments that sell goods and

services to the general publicWholesalers Sell products to distributors or retailers

and not usually the end-user marketEtailing The buying and selling of retail goods on

the internet

TYPES OF RETAILERSSpecialty stores - 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 REIDepartment 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 PennyDiscount 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

operationsNon-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

ADVANTAGES OF ETAILING 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

DISADVANTAGES OF ETAILING 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

DISTRIBUTION

Refers to the way the producer or manufacturer delivers products,

services, or information to the consumer

DISTRIBUTION BASICSChannels of distribution The path a product takes from producer

or manufacturer to consumerIntermediary 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

DIRECT VS. INDIRECT Direct doesn’t use intermediaries,

indirect does

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 channelEx. Walmart