Marketing Management, Millenium Edition - epiheirimatikotita.gr

Managing Electronic Commerce and On-Line Marketing 325stores, airports, and other locations. For example, the Florsheim Shoe Companyincludes a machine in selected stores to allow the customer to indicate the type of shoehe or she wants (dress, sport), along with the color and size. Pictures of Florsheimshoes that meet the criteria appear on the screen. If the particular shoes are not availablein that store, the customer can order by dialing an attached phone and typing ina credit-card number and an address where the shoes should be delivered.MANAGING ELECTRONIC COMMERCE ANDON-LINE MARKETINGTechnology is expanding direct marketing into new electronic arenas. Electronic commerce(e-commerce) describes a wide variety of electronic platforms, such as the sending ofpurchase orders to suppliers via electronic data interchange (EDI); the use of fax ande-mail to conduct transactions; the use of ATMs, electronic point-of-sale terminals, andsmart cards to facilitate payment and obtain digital cash; and the use of the Internetand on-line services. All of these involve doing business in a “marketspace” as comparedto a physical “marketplace.” 14 Although consumer buying over the Internet is growingrapidly—driven by purchases of computers and related products, books, CDs, toys, andvideos—the volume of business Internet transactions is growing even faster: By 2003,U.S. business-to-business e-commerce is projected to reach $2.8 trillion. 15Commercial on-line services offer on-line information and marketing services topaid subscribers. The largest and best-known is America Online (AOL), which has 19million subscribers and holds 50 percent of the market. 16 AOL and other on-line servicesoffer proprietary channels featuring information (news, libraries, education,travel, sports, reference), entertainment (fun and games), shopping services, dialogueopportunities (bulletin boards, forums, chat rooms), and e-mail capabilities.The Internet is an international web of computer networks that has made instantaneousand decentralized global communication possible. Internet usage has surgedwith the development of the user-friendly World Wide Web and browser programssuch as Netscape Navigator and Microsoft Internet Explorer. Internet users can nowexperience fully integrated text, graphics, images, and sound; send e-mail and visitchat rooms to exchange views; shop for products; and find information of all kinds.To target and reach these Internet users, marketers need to understand the characteristicsand behavior of the on-line consumer.The On-Line ConsumerAs a whole, the Internet population is younger, more affluent, and better educatedthan the general population, with an almost equal number of men and women. 17 Butas more people find their way onto the Internet, the cyberspace population is becomingmore mainstream and diverse. Internet users in general place greater value oninformation and tend to respond negatively to messages aimed only at selling. Theywant to decide what marketing information they will receive about which productsand services and under what conditions. In on-line marketing, it is the consumer, notthe marketer, who gives permission and controls the interaction.Internet consumers have around-the-clock access to varied information sources,making them better informed and more discerning shoppers. They can (1) get objectiveinformation about multiple brands, including costs, prices, features, and quality,without relying on manufacturers or retailers; (2) initiate requests for advertising andinformation from manufacturers and retailers; (3) design the offerings they want; and(4) use shopping agents to search for and invite offers from multiple sellers.