Electronic Commerce and Export-Import Management in

RMG, Chapter-2

Lecture Outline
2

1. Direct and Online Marketing

2. Benefits of Direct Marketing
3. How Companies Use Their Databases
Chapter-2, Part-1 4. Forms of Direct Marketing Communication
Online Marketing & EC Organizations 5. Online Marketing and Electronic Commerce
Course Title: Electronic Commerce and Export- 6. The Benefits of Online Marketing

Import Management in RMG 7. Challenges of Direct Marketing

8. EC Organizations
Course Instructor : 9. E-Marketplace (Marketspace)
S.M. Akterujjaman
Associate Professor 10. Electronic Retailing (e-tailing)
Dept. of Business Administration, BUFT
11. Types of B2C E-Marketplace.
E-mail: smakter2010@gmail.com 1

Direct Marketing 3
Benefits of Direct Marketing 4
Direct Marketing Consists of Direct Communications
with Carefully Targeted Individual Consumer to
Obtain an Immediate Response.
Direct marketing is the use of consumer-direct
channels to reach and deliver goods and
Benefits of Direct Marketing Benefits of Direct Marketing
services to customers without using marketing to Customers to Companies
middlemen. Direct marketers can use a number
Fun, Convenient & Mailing Lists for Almost
of channels to reach individual prospects and Hassle-Free Any Market
customers. Such as direct mail, catalog Saves Time Customized Offers
marketing, telemarketing, mobile devices etc. Larger Merchandise Ongoing Relationships
Selection with Customers
Timed to Achieve Higher
Comparison Shopping Readership & Response
Order Products for Privacy
Themselves or Others

S.M.Akterujjaman, Associate Professor, BUFT 1

Electronic Commerce and Export-Import Management in
RMG, Chapter-2

Forms of Direct Marketing

How Companies Use
5 Communication 6
Their Databases
Face-to-Face
Selling

Identifying Prospects
Direct-Mail
Marketing
Deciding Which Customers Should
Receive a Particular Offer Online
Marketing
Deepening Customer Loyalty
Catalog
Marketing
Reactivating Customer Purchases

Direct-Response Telemarketing
TV Marketing

Online Marketing
7 Benefits of Online Marketing 8
 Online Marketing is conducted through
interactive online computer systems, which link Consumers Companies
consumers with sellers electronically. Customer Relationship
Convenient Building
 Two types of Online Marketing Channels:
 Commercial Online Services offer online information Private Reduces Costs
and marketing services to subscribers who pay a
monthly fee. (i.e. AOL, CompuServe & Prodigy) Abundance of
Increases Efficiency
Information
 The Internet (the Net) is the vast global and public web
of computer networks.
Interactive Provides Flexibility
 The explosion of Internet usage has created a
new world of electronic commerce, a term that Immediate Global Medium
refers to the buying and selling process supported
by electronic means.

S.M.Akterujjaman, Associate Professor, BUFT 2

Electronic Commerce and Export-Import Management in
RMG, Chapter-2

Challenges of Direct Marketing 9

EC Organizations
• Organizations are broadly classified into
Limited Consumer Exposure and Buying
three types:
Skewed User Demographics and Psychographics

Chaos and Clutter

Security

Ethical Concerns

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Brick-and-Mortar
Brick-and-Mortar
• Operate a firm solely in traditional physical
markets
• Approach business activities traditionally
by operating physical locations (e.g.
stores, offices, manufacturing plants)
Brick-and-Mortar organizations:
Old-economy organizations (corporations) that
perform most of their business off-line, selling
physical products by means of physical agents
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Click-and-Mortar
Click-and-Mortar/ Click-and-Brick
• Operate a firm in physical locations and has
added an EC component to their business
• Requires maximization of business
opportunities in both the physical and virtual
environments
• This strategy requires a significant investment
in systems and space
Click-and-Mortar organizations:
Organizations that conduct some e-commerce
activities, but do their primary business in the
physical world. 12
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S.M.Akterujjaman, Associate Professor, BUFT 3

Electronic Commerce and Export-Import Management in
RMG, Chapter-2

Click-only/Virtual/Pure-play E-Marketplace (Marketspace)

 An online marketplace / marketspace where buyers and
• Business transactions are only conducted
sellers meet to exchange goods, services, money or
virtually
information. Market space is digital, in where
• Can require significant expertise and marketers/channel members interact with customers
investment in technology and systems staff through electronic media, not physically. The major
components in a marketspace are:
Virtual (pure-play) organizations:
 Customers
Organizations that conduct their business  Sellers
 Products & services
 Infrastructure
activities solely online  Front end
 Other business partners
 Intermediaries
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Electronic Retailing (e-tailing) Types of B2C E-Marketplace

 E-tailing is the selling of retail goods on the Internet.
Short for "electronic retailing,"
The major B2C e-marketplaces are –
 Electronic Storefronts
 E-tailing is synonymous with business-to-consumer
(B2C) transaction.  Electronic Malls (e-mall or online mall)

 Examples: Dell and Amazon.com

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S.M.Akterujjaman, Associate Professor, BUFT 4

Electronic Commerce and Export-Import Management in
RMG, Chapter-2

Electronic Malls (Cybermalls)

Electronic Storefronts  Web site that displays electronic catalogs from
several suppliers, and charges commission from
 An electronic or Web storefront refers to a them for the sales revenue generated at that site.
single company’s Web site where products
 Electronic mall provide a one-stop shopping place
and services are sold.
that offers many products and services.
 Examples:
 Examples:
 www.dell.com
America’s Choice Mall (www.choicemall.com)
 www.walmart.com
Singapore’s emall (www.emall.sg)
Shopping 2000 (www.shopping2000.com)
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Thank You!!

Any
Questions…?
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S.M.Akterujjaman, Associate Professor, BUFT 5