ACCOUNTING INFORMATION SYSTEM & E-COMMERCE

LECTURE 10 E-COMMERCE MARKETING & ADVERTISING CONCEPTSCHAPTER 6ByHabib Ullah QamarMSCS,MBA(HRM)

LEARNING OBJECTIVES Identify the key features of the Internet

audience. Discuss the basic concepts of consumer behavior

and purchasing decisions. Understand how consumers behave online. Identify and describe the basic digital commerce

marketing and advertising strategiesand tools.

Identify and describe the main technologies that support online marketing.

Understand the costs and benefits of online marketing communications

LET WE GUESS HOW MANY PEOPLE WATCH VIDEOS ONLINE? 187 Million USA in July 2013 22.5 hours per month Because this is where the eyeballs are, video

is an obvious advertising medium. And just in time: Internet users have learned

how to avoid traditional banner ads by instinctively moving their eyes to a different part of the screen.

CONSUMERS ONLINE: THE INTERNET AUDIENCE AND CONSUMER BEHAVIOR (B2C) Internet Traffic Patterns: The Online Consumer

Profile : The first principle of marketing and sales is “know thy customer.” Who is online, who shops online and why, and what do they buy? Intensity and scope of usage (Several studies also show

that a greater amount of time is being spent online by Internet users—over 2 hours a day)

Demographics and access (Up until 2000, single, white, young, college-educated males with high incomes dominated the Internet.)

Type of internet connection: broadband and mobile impacts

Community effects: social pollution in social networks

Consumer behavior models (Fig6.1)

CONSUMERS ONLINE: THE INTERNET AUDIENCE AND CONSUMER BEHAVIOR (B2C) Profiles of online consumers (Fig 6.2) The Online Purchasing Decision (Fig 6.3) Shoppers: Browsers And Buyers What consumers shop for and buy

online Intentional acts: how shoppers find

vendors online Trust, Utility, And Opportunism In Online

Markets

FIG 6.1 CONSUMER BEHAVIOR

FIG 6.2 ONLINE PURCHASING DECISION

THE CONSUMER DECISION PROCESS AND SUPPORTING COMMUNICATIONS

CONSUMER BEHAVIOR MODEL

DIGITAL COMMERCE MARKETING AND ADVERTISING STRATEGIES AND TOOLSInternet marketing has many similarities to,

and differences from, ordinary marketing. Strategic issues and questions

The five main elements of a comprehensive multi-channel marketing plan are:

Web site traditional online marketing social marketing mobile marketing and offline marketing. Table 6.3.

TABLE 6.3

DIGITAL COMMERCE MARKETING AND ADVERTISING STRATEGIES AND TOOLS The Web Site As A Marketing Platform:

Establishing The Customer Relationship Traditional Online Marketing And

Advertising Tools Search Engine Marketing And Advertising Search Engine Advertising Display Ad Marketing E-mail Marketing Affiliate Marketing Lead Generation Marketing Social, Mobile, And Local Marketing And

Advertising

DIGITAL COMMERCE MARKETING AND ADVERTISING STRATEGIES AND TOOLS Multi-channel marketing: integrating

online and offline marketing Other Online marketing strategies

customer retention strategies Personalization, One-to-One Marketing Versioning Free and Fermium

Dynamic Pricing and Flash Marketing Pricing strategies Long tail marketing

INTERNET MARKETING TECHNOLOGIES The revolution in internet marketing

technologies (Table 6.6) Web transaction logs Supplementing the logs: tracking files Databases, Data Warehouses, Data

Mining, And Big Data Customer Relationship Management

(CRMm) Systems

UNDERSTANDING THE COSTS AND BENEFITS OFONLINE MARKETING COMMUNICATIONS ‘Online marketing communications still

comprise only a small part of the total marketing communications universe.

While there are several reasons whythis is the case, two of the main ones are concerns about

How well online advertisingreally works?

How to adequately measure the costs and benefits of online advertising?

UNDERSTANDING THE COSTS AND BENEFITS OFONLINE MARKETING COMMUNICATIONS Online marketing metrics: Lexicon

UNDERSTANDING THE COSTS AND BENEFITS OFONLINE MARKETING COMMUNICATIONS Online marketing metrics: Lexicon How well does online advertising work?

What is the most effective kind of online advertising? How does online advertising compare to offline advertising? The answers depend on the goals of the campaign, the nature of the product, and the quality of the Web site you direct customers toward. The answers also depend on what you measure.

The costs of online advertising most online ads were sold on a barter or cost

per thousand (CPM) impressions basis Today, other pricing models have developed,

including cost per click (CPC), A Prenegotiated fee for each click an ad receives;

cost per action (CPA).

UNDERSTANDING THE COSTS AND BENEFITS OFONLINE MARKETING COMMUNICATIONS

WEB ANALYTICS: SOFTWARE FOR MEASURING ONLINE MARKETING RESULTS Web analytics is a software package that

collects, stores, analyzes, and graphically presents data on each of the stages in the conversion of shoppers to customers process on e-commerce sites.

RESOURCES E-Commerce by Kenneth C. Loudon, Carol

Traver : 2014 version : Chapter 6 www.Wikipedia.org http://theITeducation.com/ http://slideshare.net/habibullahqamar/

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