Professional Documents
Culture Documents
Chap 02
Chap 02
Retailing in
Electronic Commerce
Learning Objectives
Define the factors that determine the business
models of electronic marketing
Identify the critical success factors of direct marketing
Design the desirable relationship in a direct
marketing setting
Analyze the critical success factors of electronic
intermediaries
Identify the typical products that sold well in the
electronic market
Direct marketing
Customization
Online customer service
Electronic shopping malls:
Intermediaries (e.g. Internet Mall)
Stores (e.g. Amazon, J.C.Penney Online)
Electronic intermediaries
Global marketing
1997
1,000
48
350
436
850
45
450
200
363
200
1,170
518
2000
117,000
3,500
65,000
46,000
775,000
144,000
580
10,000
228,000
200,000
45,000
23,200
6,579
[Source: OECD, 1997]
322
658
Not available
336
322
1,250
966
Not available
186
1,013
Not available
1,110
[Source: OECD, Sept. 1997]
Electronic Mall
Vs.
Electronic Store
Sales
Vs.
Customer Services
Full Cybermarketing
Vs.
Partial Cybermarketing
Electronic Store
Vs.
Electronic Broker
Generalized Mall
Vs.
Specialized Mall/Store
10
Direct Marketing
Active and full direct Marketing
Dell Computer Corporation Case
Founding spirit of dell: telemarketing
Astonishingly high growth and returns
Revenue via the Internet
Dells products on the Internet
11
12
13
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lease
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by
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interior
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for
Summary
exterior
financing
that paint
suits
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to
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build
a price
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and
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aid
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of
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Enter
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dealership
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aSearch
drive
Enter
your
Secure
Confirm
leasing
Ford
Print
personal
and
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Extended
for
the
your
or
you
your
accept
test-drive
inventory
financing
ZIP
delivery
vehicle
order
information
order
code
Service
delivery
and
options
Plan
delivery
14
15
Electronic brokers
assist the search process of finding the appropriate
products and their vendors
16
17
Cyber CD Stores
Columbia House, Music Boulevard, CD Universe,
and CDNow
18
Insurance
3%
Internetbased
1%
Drug Stores
Updating prices and adding 32%
Department
Stores
51%
19
20
21
22
Place an order
Pay the bill
Receive the delivered items and inspect;
possibly while using
Contact the vendor to get service and
support, or to return if disappointed
23
24
25
26
Managerial Issues
From a manufacturers point of view:
Fully committed to
direct marketing,
restructuring the
current manufacturing
and distribution systems
OR
27
OR
Retailing a
specialized breed
of items
28