12. E-Commerce Marketing Mix Channel

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1 12. (Contents) E-Commerce Marketing Mix Channel Contents 12. E-Commerce Marketing Mix Channel E-Commerce Marketing Mix Channel Code: Course: Electronic Commerce Marketing Period: Autumn 2011 Professor: Sangwon Lee, Ph.D. 1

2 12. (Contents) E-Commerce Marketing Mix Channel Contents 01. E-Commerce Waves 02. E-Commerce Marketing 03. E-Commerce Environments 04. E-Commerce Consumer Behaviors 05. E-Commerce Marketing Researches 06. E-Commerce Marketing Goal 07. Segmentation, Targeting, and Positioning 08. E-Commerce Marketing Mix Collaboration 09. E-Commerce Marketing Mix Contentware 10. E-Commerce Marketing Mix Commitment 11. E-Commerce Marketing Mix Communication 12. E-Commerce Marketing Mix Channel 13. Website Establishment 14. Integrated Marketing Strategy 15. Internet Society and Law 2

3 Lecture 12. E-Commerce Marketing Mix Channel E-Commerce Marketing Mix Channel Code: Course: Electronic Commerce Marketing Period: Autumn 2011 Professor: Sangwon Lee, Ph.D. 3

4 01. Changes of Internet Distribution Changes of Internet Distribution Disintermediation Reintermediation Introduction to Electronic Commerce, Ed. 2, Efraim Turban et al., Pearson 4

5 01. Changes of Internet Distribution Disintermediation Extinction of intermediations Direct marketing Hypotheses of disintermediation Electronic communication Electronic brokerage effect Electronic integration effect 5

6 01. Changes of Internet Distribution Reintermediation Counter-arguments of disintermediation Cyber-intermediation 6

7 01. Changes of Internet Distribution Summary of Internet Distribution IDR process Intermediation Disintermediation Reintermediation Introduction to Electronic Commerce, Ed. 2, Efraim Turban et al., Pearson 7

8 02. Channels of Internet Distribution Channels of Internet Distribution Benefits of internet distribution Reduction of distribution level cost Selling functions (purchasing) delegated to customers cost Limitations of internet distribution Dissatisfaction of customers Roles of new intermediations Effective integrations with systems Customized services 8

9 03. Design of Internet Distribution Design of Internet Distribution 1) Analyzing customers needs for internet distribution service 2) Establishing goal of distribution channel 3) Deciding type, structure, and coverage of distribution channel 4) Selecting members of distribution channel Analyzing customers needs Establishing goal Deciding type, structure, and coverage Selecting members 9

10 03. Design of Internet Distribution Design of Internet Distribution 1) Analyzing customers needs for internet distribution service Services for customers Locational convenience Lot size Waiting time Product variety Analyzing customers needs Establishing goal Deciding type, structure, and coverage Selecting members 10

11 03. Design of Internet Distribution Design of Internet Distribution 2) Establishing goal of distribution channel Considerations Consumers expectation level for services Characteristics of enterprise/product/market Distribution channels of competitors Strategic thinking Enterprise s goal Needs of target customers Dual channels are needed. Analyzing customers needs Establishing goal Deciding type, structure, and coverage Selecting members 11

12 03. Design of Internet Distribution Design of Internet Distribution 3) Deciding type, structure, and coverage of distribution channel Structure of distribution channel Integrated distribution channel Independent distribution channel Vertical distribution channel Coverage of distribution channel Intensive distribution Attached distribution Selective distribution Analyzing customers needs Establishing goal Deciding type, structure, and coverage Selecting members Integrated Internet Marketing, Doohee Lee, Pakyoungsa 12

13 03. Design of Internet Distribution Design of Internet Distribution 4) Selecting members of distribution channel Integrated Internet Marketing, Doohee Lee, Pakyoungsa Analyzing customers needs Establishing goal Deciding type, structure, and coverage Selecting members 13

14 04. Management of Distribution Conflicts Conflicts of Distribution Channels Introduction of internet channel Direct sale on online channel are widely popular. Online channel conflicts with online channel. = Cannibalization Situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competition Offline Online 14

15 04. Management of Distribution Conflicts Conflicts of Distribution Channels Types of conflicts New sales channel vs. sales persons New sales channel vs. sales distributors(wholesalers, retailors) Examples of conflicts Compaq Barns and Noble 15

16 04. Management of Distribution Conflicts Management of Distribution Channel Conflicts Traditional solution Establishing common goals for online and offline channels Communication between online and offline channels Representative organization of online and offline channels Arbitration Legal solution Training 16

17 04. Management of Distribution Conflicts Management of Distribution Channel Conflicts Hybrid channel Information-sharing method Role-sharing method Ex. Sony 17

18 04. Management of Distribution Conflicts Management of Distribution Channel Conflicts Considerations Channel bundling Profit-priority: marketing or demarketing 18

19 05. Electronic Commerce Agent Electronic Commerce Agent A software to play a role as commerce participants 19

20 05. Electronic Commerce Agent Types of Electronic Commerce Agent Agent for ad Agent for searching Agent for comparison Agent for negotiation 20

21 06. Electronic Commerce Logistics Electronic Commerce Logistics Mass-customization Pull system High volume Out-sourcing 21

22 06. Electronic Commerce Logistics Electronic Commerce Logistics Improvement of logistics environment Hardware-perspective Software-perspective 22

23 06. Electronic Commerce Logistics Delivery The last stage of logistics The process that an ordered product is passed to a customer 23

24 06. Electronic Commerce Logistics Delivery Methods of delivery Direct delivery Indirect delivery Stock indirect delivery Stockless indirect delivery 24

25 06. Electronic Commerce Logistics Delivery The 3 rd delivery spots Delivery tracking systems 25

26 06. Electronic Commerce Logistics Supply Chain Management for Electronic Commerce SCM on the internet Considerations Not a technical issue, but a strategic issue Organizational culture should be changed. IT is necessary for competitive advantages. 26

27 07. B2B Virtual Market Management Virtual Market A online market for electronic commerce 27

28 07. B2B Virtual Market Management Types of Virtual Market (from the viewpoint of Business Domain) Vertical virtual market Horizontal virtual market Introduction to Electronic Commerce, Ed. 2, Efraim Turban et al., Pearson 28

29 07. B2B Virtual Market Management Types of Virtual Market (from the viewpoint of Market Creation) Catalogue-type virtual market Auction-type virtual market Exchange-type virtual market Barter-type virtual market 29