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12. (Contents) E-Commerce Marketing Mix – Channel

12. E-Commerce Marketing Mix – Channel

E-Commerce Marketing Mix – Channel

Contents

• Code: 166145-01 • Course: Electronic Commerce Marketing • Period: Autumn 2011 • Professor: Sangwon Lee, Ph.D.

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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

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12. (Lecture) E-Commerce Marketing Mix – Channel

Lecture

• Code: 166145-01 • Course: Electronic Commerce Marketing • Period: Autumn 2011 • Professor: Sangwon Lee, Ph.D.

12. E-Commerce Marketing Mix – Channel

E-Commerce Marketing Mix – Channel

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12. (Lecture) E-Commerce Marketing Mix – Channel

01. Changes of Internet Distribution • Changes of Internet Distribution

• Disintermediation • Reintermediation

Introduction to Electronic Commerce, Ed. 2, Efraim Turban et al., Pearson

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12. (Lecture) E-Commerce Marketing Mix – Channel

01. Changes of Internet Distribution • Disintermediation

• Extinction of intermediations • Direct marketing • Hypotheses of disintermediation

• Electronic communication • Electronic brokerage effect • Electronic integration effect

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12. (Lecture) E-Commerce Marketing Mix – Channel

01. Changes of Internet Distribution • Reintermediation

• Counter-arguments of disintermediation • Cyber-intermediation

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

03. Design of Internet Distribution • Design of Internet Distribution

• 4) Selecting members of distribution channel

Analyzing customers’ needs

Establishing goal

Deciding type, structure, and coverage

Selecting members

Integrated Internet Marketing, Doohee Lee, Pakyoungsa

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

04. Management of Distribution Conflicts • Management of Distribution Channel Conflicts

• Hybrid channel • Information-sharing method • Role-sharing method • Ex. Sony

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12. (Lecture) E-Commerce Marketing Mix – Channel

04. Management of Distribution Conflicts • Management of Distribution Channel Conflicts

• Considerations • Channel bundling • Profit-priority: marketing or demarketing

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12. (Lecture) E-Commerce Marketing Mix – Channel

05. Electronic Commerce Agent • Electronic Commerce Agent

• A software to play a role as commerce participants

http://www.clipartguide.com

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12. (Lecture) E-Commerce Marketing Mix – Channel

05. Electronic Commerce Agent • Types of Electronic Commerce Agent

• Agent for ad • Agent for searching • Agent for comparison • Agent for negotiation

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12. (Lecture) E-Commerce Marketing Mix – Channel

06. Electronic Commerce Logistics • Electronic Commerce Logistics

• Mass-customization • Pull system • High volume • Out-sourcing

http://www.suggestsoft.com

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12. (Lecture) E-Commerce Marketing Mix – Channel

06. Electronic Commerce Logistics • Electronic Commerce Logistics

• Improvement of logistics environment • Hardware-perspective • Software-perspective

http://www.cfwservices.com

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12. (Lecture) E-Commerce Marketing Mix – Channel

06. Electronic Commerce Logistics • Delivery

• The last stage of logistics • The process that an ordered product is passed to a customer

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12. (Lecture) E-Commerce Marketing Mix – Channel

06. Electronic Commerce Logistics • Delivery

• Methods of delivery • Direct delivery • Indirect delivery

• Stock indirect delivery • Stockless indirect delivery

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12. (Lecture) E-Commerce Marketing Mix – Channel

06. Electronic Commerce Logistics • Delivery

• The 3rd delivery spots • Delivery tracking systems

http://www.3plqs.com

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12. (Lecture) E-Commerce Marketing Mix – Channel

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.

http://www.any-erp.co.kr

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12. (Lecture) E-Commerce Marketing Mix – Channel

07. B2B Virtual Market Management • Virtual Market

• A online market for electronic commerce

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12. (Lecture) E-Commerce Marketing Mix – Channel

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

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12. (Lecture) E-Commerce Marketing Mix – Channel

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