INSC 60040

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INSC 60040

• Doing Business Online

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Stages of Online Business

• Content provider (stage 1)
• Transaction forum (stage 2)
• Integrator (stage 3)
• Catalyst for industry restructuring (stage 4)

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Characteristics of Online Channels

• Channel compression (disintermediation)
• Distributors
• Travel agents
• Channel expansion
• Aggregators
• Brokers
• Secondary markets
• Cannibalization of BM sales

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Key Issues

• Privacy
• Payment
• Security (storage vs. transmission)
• Anonymity
• Trust
• Identity Theft
• Authentication
• Regulation
• Sales taxes
• Jurisdictional issues

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Should you open an online channel?

• Other issues to consider in conjunction with or
  as part of ROI
• Who are your customers? Do they want an online
  channel?
• Does your product/service make sense in an online
  channel?
• How can you differentiate from other online
  providers?
• How will you generate traffic to your online
  presence?
• Are you accomplishing something online (reaching
  new markets, generating new revenue, etc.) that
  you could not accomplish offline?

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Online Advertising

• Ad Types
• Banner ads
• Pop-ups
• Interstitials
• Sponsored links
• Impressions vs. click-throughs
• CPM vs. CPC
• Online funnel
• Impressions ? Click-throughs ? Conversions

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End of Lecture