ELECTRONIC%20AGE%20MARKETING

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ELECTRONIC AGE MARKETING

• Internet basics
• Domains and domain names
• Economics of e-commerce
• Desktop publishing in Word

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Internet Basics

• Access to the Internet
• Dial-up
• Broadband
• For businesses and organizations (e.g., T1, T3)
• For individuals
• Cable, DSL, other
• Hardware
• Servers
• Local
• Remote
• Routersdirect traffic to and from work
  stations
• Large office
• Home networks

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More Internet Basics

• Internet design for redundancy
• Different possible paths between two points
• Computer down time
• Some Internet tools
• E-mail
• World Wide Web
• USENET
• FTP (file transfer protocolfor uploading or
  downloading files)
• Telnet (access to large mini or mainframe
  computers with unsophisticated interface)

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More Internet Basics

• Intranets (within organization) vs. extranets
• Web addresses
• Uniform Resource Locator (URL) (e.g.,
  sdsu.edu)will route a user to a numeric
  location (e.g., 192.107.41.31)
• Protocol preface http// (hypertext transfer
  protocol)
• Domain names Prefix (e.g., sdsu) suffix (e.g.,
  .edu, .com)

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Domain names

• Uniform Resource Locators (URLs)
• Standard way to access an Internet location
• Used to translate meaningful words into numerical
  address
• E.g.,
• http//www.sdsu.edu

Top level domain
Within domain location
Protocol ID
Domain name
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Other examples

• http//mea.consumerpsychologist.com
• http//Ivcampus.sdsu.edu
• http//www.amazon.co.uk

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Wireless connections

• Reach
• Hot spots vs. broader reach
• Speed
• Security

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Economics of Internet Commerce

• Intense competition for large demand products
  (large quantity demanded attracts many sellers)
• Use of large demand products as loss leaders
  (e.g., Amazon.com bestsellers)
• Competition will force reduced costsif anyto be
  passed on to customers
• Competition makes charging for shipping and
  handling difficult. This is often more expensive
  than traditional distribution.
• Less competition on specialty products
• Established brick-and-mortar firms have large
  cash reserves

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Considerations in Evaluating E-Commerce Potential

• Value-to-bulk ratio
• Ability of consumer to evaluate quality and fit
  through online description
• Extent of customization needed
• Geographic dispersal of consumers

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How Suitable For Internet Commerce? Are There
Differences Among Segments?
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Business Models of e-Commerce

• Business model design
• Revenue models
• Customer/seller models
• E-auctions

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Business Model Design

• Business assessment
• Digitalitality level of a business
• Profit orientation (profit center business or
  loss center for spillover benefits)
• Delivering customer value
• Four Ps of Value
• Product
• Price
• Place
• Promotion

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Revenue Models

• Revenue streams
• Evaluating streams
• Strength
• Stability
• Cyclicality
• Resource needs
• Interrelationships between streams

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Source of Site Income

• Free access sitesprofit derived through
• Advertising/commissions
• Sponsorships
• Promotion or support of other business line
• Paid access
• Complete access for one charge
• Access to core with extra charge for premium
• Problems of micro payments)
• Hybrids
• One party pays (e.g., job recruitment sites)
• Two-tiersome free access charge for premium

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Types of Business (Pure) Models
Seller Buyer Buyer
Business Consumer
Business B2B B2C
Consumer C2B C2C
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Hybrids

• B-2-BC (Business to business and consumer)
• E.g., Staples.com
• Complex
• Amazon.com B2C and C2C

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B2C

• Direct sellers
• Intermediaries
• Advertising-based businesses
• Community-based model
• Fee-based model

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Characteristics of Successful B2C Companies

• High number of visitors
• High conversion rates
• Higher revenue per transaction
• Higher average gross margin
• No impact of
• Number of transactions per consumer
• Acquisition cost

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Clicks-and-Bricks Model

• Integration of electronic and traditional
  commerce
• Consumers can shop and return both ways
• Synergies
• Forms
• Spin-offs
• Strategic partnerships
• Joint ventures
• Within-company division

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B2B

• Typical characteristics
• High volume, value
• Purchase specificity
• Team buying/decision making
• Long term relationships
• Leasing issues
• Competitive bidding

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C2C

• Usually require intermediary (e.g., eBay)
• Issues of reputation
• Infrastructure issues (e.g., ability to take
  credit card payments)
• Economics of
• Labor (seller)
• Cost of search (buyer)

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C2B

• Rare category
• Agency coordinating sales of
• Property (e.g., antiques)
• Personal skills

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E-Auctions

• Types
• English
• Dutch
• Speedier
• May result in lower prices when multiple items
  are sold
• Bidding behavior issues
• Timing of bids
• Sniping

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Desktop Publishing in Word

• Desktop publishing software
• Word, WordPerfect
• Fancier programs MS Publisher, InDesign, Adobe
  Illustrator, Macromedia Fireworks, Adobe
  Photoshop
• Possibilities within Word
• Brochures
• Posters

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Some Features

• Columns
• Tables
• Imported
• Created in Word
• Graphics
• Fonts

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Tables

• Use for
• Control of formattinge.g., course document
  header
• Control of placemente.g., graphics
• Organization of information
• Merge and split cells

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Posters

• Paper orientation
• Portrait (regular)
• Landscape (rotated 90 degrees)
• Tables for graphics
• Fonts
• Images
• Document borders
• Fonts

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Fonts

• Monospace (e.g., Courier) vs. proportionally
  spaced (e.g., Arial, Times Roman)
• Font sizes
• Measured in Points (average length and height
  of a letter)
• All fonts with the same size are not equally
  large! (Times Roman is more efficient)

• Serif vs. sans-serif
• Serif fonts have sharp edges (e.g., Times Roman)
• Easier to read for longer documentsless eye
  strain
• Sans-serif lack sharp edges
• Generally look more pleasant
• Used for headlines

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Some Standard Fonts

• Courier (not used much in contemporary documents,
  but has been found effective in direct
  mail)looks like a typewriter
• Times Romandefault on many programs
• Arial (Helvetica)common sans-serif font

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Fonts Usually Standard in Windows (But Not
Necessarily Macintosh)

• Comic Sans
• Letter gothic (monospace)
• Trebuchet (proportional, hybrid serif/sans-serif)
• Book Antiqua (proportional, serif)
• Century gothic (proportional, sans-serif)

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Preserving Formatting

• Use of standard fonts
• Testing across
• Multiple browsers
• Computer types and configurations
• Use of invisible tables
• Use of Adobe Acrobat (PDF) files
• Good for preserving document formatting while
  avoiding large task of reformatting
• May require the users browser to open Adobe
  Acrobat (resulting in delay)

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Brochures

• 4 page 5.5x8.5 brochure
• Use landscape orientation
• Reduce right and left margins to 0.5
• Make page into two columns
• Start in column 2 on first page
• Last page is column 1 of first page
• Templates
• Font selection
• Inserting graphics

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Printing Brochures and Posters

• Large quantity
• File submitted to printing firm
• Choice of paper
• Glossiness
• Thickness
• Small quantity in-office printing
• Large posters
• Laser printing vs. inkjet

• Inkjet usually provides superior quality
• Laser is usually cheaper
• Paper choices
• Absorbency
• Thickness
• Glossiness
• Quality of print