ecommerce midterm
Small ticket items
($100 or less) Apparel, books, office supplies, software, and so on
Big ticket items
($1000 or more) Travel, computer hardware, electronics. Consumers now more confident in purchasing costlier items
E-business
Digital enabling of transactions and processes within a firm, involving information systems under firm's control. Does not include commercial transactions involving an exchange of value across organizational boundaries.
What's e-commerce?
E-commerce is the use of Internet and Web to transact business . More formally: Digitally enabled commercial transactions between and among organizations and individuals.
Display Advertising Issues Viewability
Google reveals that 56% of impressions served across its display advertising platforms are not viewable, even though advertisers were charged for generating ad impressions and serving ads.
Types of Search Engine Advertising Organic search
Inclusion and ranking of sites depends on a more or less unbiased application of a set of rules imposed by a search engine.
Mobile marketing and advertising
Marketing on the mobile platform is growing rapidly and becoming a very significant part (49%) of the overall online marketing spending. In 2015, display ads are the most important mobile advertising format. Display ads can be served as part of a mobile Web site or inside apps and games. Facebook is the leader in mobile display ad revenues, followed by Google and Twitter. Apps on mobile devices constitute a marketing platform that did not exist a few years ago. Apps provide users much faster access to content. There are over 3 million apps available on Apple's App Store and Google Play.
The Lean Startup How? VALIDATED LEARNING
Once entrepreneurs embrace validated learning, the development process can shrink substantially. When you focus on figuring the right thing to build-the thing customers want and will pay for-you need not spend months waiting for a product beta launch to change the company's direction. Instead, entrepreneurs can adapt their plans incrementally, inch by inch, minute by minute. All successful startup processes should be geared to accelerate that feedback loop
Linear video ad
Pre-roll; takeover; ad takes over video for a certain period of time. used when: before, between, or after video
The Lean Startup How? BUILD-MEASURE-LEARN
The startup will also utilize an investigative development method called the "Five Whys" -asking simple questions to study and solve problems along the way. When this process of measuring and learning is done correctly, it will be clear that a company is either moving the drivers of the business model or not. If not, it is a sign that it is time to pivot or make a structural course correction to test a new fundamental hypothesis about the product, strategy and engine of growth
The two most important factors shaping the decision to purchase online
Utility: Consumers want good deals, bargains, convenience, and speed of delivery. Trust: Consumers need to trust a merchant before they make a purchase. Sellers can develop trust among online consumers by building strong reputations of honesty, fairness, and delivery of quality products. Online sellers who develop trust among consumers are able to charge a premium price for their online products and services. The most important factors leading to a trusting online relationship are perception of Web site credibility, ease of use, and perceived risk. Personal friends and family are far more powerful determinants of online purchases than membership in social networks.
business model
a set of planned activities designed to result in a profit in a marketplace. The business model is at center of a business plan.
Eight unique features of e-commerce technology
•Ubiquity. •Global reach. •Universal standards. •Information richness. •Interactivity. •Information density. •Personalization/customization. •Social technology .
Display Ad Marketing Native Ad advertising
Advertising that looks similar to editorial content is known as native advertising
Display Ad Marketing Content marketing
Creates a content campaign for a brand and then tries to secure placement on a variety of Web pages. The aim of content marketing is to increase visitors to a company's Web site, organic search rankings, and brand engagement via social media.
Display Ad Marketing Video ads
Online video ads are TV-like advertisements that appear as in-page video commercials or before, during, or after a variety of content.
Cannibalization versus complementarity
Several studies reveal that time spent on the Internet reduces comsumer time available for other media. This is referred to as cannibalization The alternative argument is that the Internet and traditional media are complementary and mutually supportive rather than substitutive. The overall pattern is that physical products like CDs and DVDs are being replaced by digital versions delivered on computers, tablets, and smartphones either as downloaded content or as streaming services.
Online publishing industry: Strengths and challenges Content is King
The reason why online newspapers attract exceptionally large and loyal audiences who are deeply engaged and willing to pay a subscription is simply: quality of content.
Customer Retention Strategies Customization
means changing the product, not just the marketing message, according to user preferences.
Customer Retention Strategies Customer co-production
means the users actually think up the innovation and help create the new product.
E-mail faces three main challenges
•Spam •Software tools used to control spam that eliminate much e-mail from user inboxes. •Poorly targeted purchased e-mail lists.
Canvas business model Cost structure
•What are the most important costs inherent in our business model? •Which key resources are most expensive? •Which key activities are most expensive? Is your business more: Cost driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value driven (focused on value creation, premium value proposition) Sample characteristics Fixed costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope
Canvas: Customer relationships
•What type of relationship does each of our Customer Segments expect us to establish and maintain with them? •Which ones have we established? •How are they integrated with the rest of our business model? •How costly are they? Examples: Personal Assistance Dedicated Personal Assistance Self-service Automated Services Communities Co-creation
Display Ad Marketing
46% of all spending in digital marketing is spent on all forms of display ad marketing (2015), and around 6 trillion display ads will be served. . Top 5 display ad companies in the U.S. are Facebook, Google, Twitter, Yahoo, and AOL (51% marketshare in 2015).
Search Engine Marketing and Advertising
In 2015, companies spent $25 billion on search engine marketing and advertising, about 43.5% of all spending for digital marketing. Search engine marketing (SEM) refers to the use of search engines to build and sustain brands.
Customer Retention Strategies Customer Service
Online customer service is more than simply following through on order fulfillment; it has to do with user's ability to communicate with a company and obtain desired information in a timely manner. Customer service can help reduce consumer frustration, cut the number of abandoned shopping carts, and increase sales. There are a number of tools that companies can use to encourage interaction with prospects and customers and provide customer service - FAQs, customer service chat systems, intelligent agents, and automated response systems.
Nonlinear video ad
Overlay; ad runs at same time as video content and does not take over full screen. used when: during, over, or within a video
Print-centric (1995-2000)
Prior to the development of the Web, search engines, mobile devices, and social media platforms, readers discovered the news by browsing the printed paper, through the front page, section pages, and article titles. Readers did not engage with journalists (less than 1% were wrinting letter to the editor). At first, newspapers created digital copies of their print editions and posted them online.
The Lean Startup Why?
Too many startups begin with an idea for a product that they think people want. They then spend months, sometimes years, perfecting that product without ever showing the product, even in a very rudimentary form, to the prospective customer. When they fail to reach broad uptake from customers, it is often because they never spoke to prospective customers and determined whether or not the product was interesting. When customers ultimately communicate, through their indifference, that they don't care about the idea, the startup fails.
E-mail marketing and advertising
is inexpensive and somewhat invariant to the number of mail sent. The primary cost of e-mail marketing is for the purchase of the list of names to which the e-mail will be sent, from $0,05 to $0,20. E-mail marketing can also be used as a part of a multi-channel marketing campaign designed to strenghten brand recognition. Personalization and targeting are major themes in e-mail marketing in 2015.
Raising capital
is one of the most important functions for a founder of a start-up business and its management team. Not having enough capital to operate effectively is a primary main reason why so many startup businesses fail.
The history of e-commerce can be usefully divided in three periods
•1995-2000: Invention. •2001-2006: Consolidation. •2007-Present: Reinvention with SoLoMo
Canvas business model Key Activities
•What Key Activities do our value propositions require? •Our distribution channels? Customer relationships? •Revenue streams? Categories Production Problem solving Platform / Network
Canvas business model Key Resources
•What Key Resources do our value propositions require? •Our distribution channels? Customer relationships? •Revenue streams? Types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial
Direct e-mail marketing
(e-mail marketing messages sent directly to interested users) was one of the first and most effective forms of online marketing communications. By sending e-mail to an opt-in audience, advertisers are targeting interested consumers. In-house built lists are more effective by far than purchased e-mail lists.
Canvas: Channels Channel phases
1. Awareness How do we raise awareness about our company's products and services? 2. Evaluation How do we help customers evaluate our organization's value proposition? 3. Purchase How do we allow customers to purchase specific products and services? 4. Delivery How do we deliver a Value Proposition to customers? 5. After sales How do we provide post-purchase customer support?
Intentional acts: how shoppers find vendors online
E-commerce shoppers are highly intentional. Typically, they are focused browsers looking for specific products, companies, and services. Once they are online, a majority of consumers use a search engine as their preferred method of research for purchasing a product. Many will go directly to an online marketplace, such as Amazon or eBay, and some will go directly to a specific retail Web site. Merchants can convert these "goal-oriented", intentional shoppers into buyers. This is not a small task.
Display Ad Marketing Advertising Exchanges, Programmatic Advertising, Real-Time Bidding
Most online advertising is being delivered by ad exchanges An ad exchange is a digital marketplace that uses an automated auction-based method known as programmatic advertising to match supply and demand of online display advertising. Programmatic advertising uses a real-time bidding (RTB) process to match advertising demand for display ads with publisher supply of Web page space, e.g., Google's DoubleClick Ad Exchange.
insterstitial ad
a way of placing a full-age message between the current and destination pages of a user.
Customer Retention Strategies Retargeting
involves using showing the same or similar ads to individuals across multiple Web sites.
Display Ad Marketing Banner Ads
the oldest and most familiar form of display marketing. They are also the least effective and lower cost one.
Precursors
•Baxter Healthcare. •Electronic Data Interchange (EDI). •French Minitel (1980s videotex system). None had functionality of Internet
Benefits of e-mail marketing
•High response rates.* •Low cost. •Mass reach. •The ability to drive traffic to Web sites for more interaction. •The ability to test and optimize content and offers. •The ability to target by region, time of the day, or other criteria.
Online content: most recent trends Technology
•Smartphones, tablet computers, and e-readers together create a rich mobile multimedia entertainment environment. •Netflix remains the largest consumer of bandwith, consuming around 37% of Internet traffic. •Apps become the foundation for an app economy as they morph into content- distribution platforms that are propietary , where users can be charged for content. •Cloud storage services grow to serve the huge market for mobile device content.
There are three revenue models for delivering content on the Internet:
•Subscriptions, usually "all you can eat". •A la carte, or pay for what you use. •Freemium service based on advertising revenue for providing free service. •Free use.
Canvas business model Key Partners
•Who are our Key Partners? •Who are our key suppliers? •Which key resources are we acquiring from partners? •Which key activities do partners perform? Motivations from partnerships: Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities
1995: Beginning of e-commerce
First sales of banner advertisements . E-commerce fastest growing form of commerce in United States
In-text video ad
Rich media; ad is delivered when user mouses over relevant text. used when: Within Web page, identified as a highlighted word within relevant content.
Online Publishing Industry These business models can be compared on four dimensions
•Search and discovery How do readers find the news? •Awareness How are potential readers made aware of news? •Engagement How are readers engaged with the news and journalists? •Technology platform How, when, and where is the news delivered to readers
E-commerce: major trends in 2017 Society
•User-generated content, published online as social network posts, tweets, blogs, and pins, as well as video and photo-sharing, continues to grow and provides a method of self-publishing that engages millions. •The amount of data the average American consumes continues to increase, more than doubling from an average of about 34Gb in 2008 to an estimated 74Gb by 2015. •Social networks encourage self-revelation, while threatening privacy. •Participation by adults in social network increases; Facebook becomes ever more popular in all demographic categories. •Conflicts over copyright management and control continue, but there is substantial agreement among online distributors and copyright owners that they need one another. •Taxation of online sales becomes more widespread and accepted by large online merchants. •Surveillance of online communications by both represive regimes and Western democracies grows. •Concerns over commercial and governmental privacy invasion increase. •Online security continues to decline as major sites are hacked and lose control over customer information. •Spam remains a significant problem despite legislation and primised technology fixes. •On-demand service e-commerce produces a flood of temporary, poorly paid jobs without benefits
Multi-channel marketing
Several research studies have shown that the most effective online advertisements are those that use consistent imagery with campaigns running in other media at the same time.
The Lean Startup How? WORK SMARTER NOT HARDER
The question is not "Can this product be built?" Instead, the questions are "Should this product be built?" and "Can we build a sustainable business around this set of products and services?" This experiment is more than just theoretical inquiry; it is a first product If it is successful, it allows a manager to get started with his or her campaign: enlisting early adopters, adding employees to each further experiment or iteration, and eventually starting to build a product. By the time that product is ready to be distributed widely, it will already have established customers. It will have solved real problems and offer detailed specifications for what needs to be built.
Six basic marketing and advertising tools for attracting e-commerce consumers
•Search engine marketing •Display ad marketing •E-mail and permission marketing •Affiliate marketing •Viral marketing •Lead generation marketing
There are four methods that online advertisers use to behaviorally target ads
•Search online queries. •The collection of data on individual browsing history online (monitoring the clickstream). •The collection of data from social network sites. •The integration of online data with offline data (income, education, address, credit records,...).
The Agile Manifesto: Twelve principles
1 Customer satisfaction by early and continuous delivery of valuable software 2 Welcome changing requirements, even in late development 3 Working software is delivered frequently (weeks rather than months) 4 Close, daily cooperation between business people and developers 5 Projects are built around motivated individuals, who should be trusted 6 Face-to-face conversation is the best form of communication (co-location) 7 Working software is the principal measure of progress 8 Sustainable development, able to maintain a constant pace 9 Continuous attention to technical excellence and good design 10 Simplicity—the art of maximizing the amount of work not done—is essential 11 Best architectures, requirements, and designs emerge from self-organizing teams 12 Regularly, the team reflects on how to become more effective, and adjusts accordingly
Types of Search Engine Advertising Paid inclusion
For a fee, guarantees a Web site's inclusion in its list of sites, more frequent visits by its Web crawler, and suggestions for improving the results of organic searching. Google claims that it does not permit firms to pay for their rank in the organic results, although it does allocate two or three sponsored links at the very top of their pages, albeit labeling them as "Sponsored Links".
Echoes from 1995
Negroponte presents a strong belief that humanity is inevitably headed towards a future where everything that can will be digitalized (be it newspapers, entertainment, or sex). Being Digital also introduced the "Daily Me" concept of a virtual daily newspaper customized for an individual's tastes. Negroponte writes about the inadequacy of the interfaces that are currently used to interact with computers. He believes that the mouse is a mediocre interface for point and click, and inadequate for drawing. He instead prefers the interfaces of touch-screen technology and voice recognition software.
Why some people don't shop online
Trust factor •The fear that online merchants will cheat you. •Lose your credit card information. •Use informal information you give them to invade your personal privacy, bombarding you with unwanted e-,ail and pop-up ads. Hassle factors •Shipping costs. •Returns. •Inability to touch and feel the product. About 10% of Internet users do not shop or buy online.
Digital First (2008-today)
Two developments in the technology and popular audience platform occurred: •The rapid adoption of smartphones and tablets. •The astounding growth of social media sites like Facebook and Twitter. The new platform is based on mobile devices and apps, and information goes on 24x7. The top priority is producing the most engaging, continually updated digital edition, and the producing a print product based on the news developed in the digital edition.
Social search
an attempt to use your social contacts to provide search results. Social search revire's your friend's recommendations, past Web visits, and use of Like buttons. an effort to provide fewer, more relevant and trustworthy results based on the social graph. Example: Facebook Graph Search (2013) —> Facebok Search (2014) ex. Facebook Search: It enables people to find people, posts, photos, videos, and links on Facebook by searching for words within a post.
E-commerce: major trends in 2017 Technology
•Mobile computing and communications platforms based on smartphones, tablets, and mobiles apps rival PC platforms for online transactions. Whatsapp and Snapchat are used by 40% of smartphone users. •Cloud computing completes the transformation on the mobile platform by storing consumer content and software on Internet servers and making it available to any consumer-connected device. •Computing and networking component prices continue to fall dramatically. •As firms track the trillions of online interactions that occur each day, a flood of data, typically referred to us as Big Data, is being produced. •In order to make sense out of Big Data, firms turn to sophisticated software called business (or web) analytics, that can identify purchase patterns as well as consumer interests and intentions in milliseconds.
2007-Present: Reinvention
•Rapid growth of: •Online social networks. •Mobile platform. •Local commerce. •Entertainment content develops as source of revenues. •Transformation of marketing: •Coordinated marketing on social, mobile, local platforms. •Analytic technologies. Rapid growth of Web 2.0 (a set of applications and technologies that enable user- generated content, i.e. online social networks, blogs, video and photo sharing sites, and wikis).
The Five Whys
•The vehicle will not start. (the problem) 1 Why? - The battery is dead. (first why) 2 Why? - The alternator is not functioning. (second why) 3 Why? - The alternator belt has broken. (third why) 4 Why? - The alternator belt was well beyond its useful service life and not replaced. (fourth why) 5 Why? - The vehicle was not maintained according to the recommended service schedule. (fifth why, a root cause) 5 Whys was formally developed by Sakichi Toyoda and was used within the Toyota Motor Corporation during the evolution of its manufacturing methodologies
The Lean Startup How? DEVELOP AN MVP
A core component of Lean Startup methodology is the build-measure-learn feedback loop. The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible. Once the MVP is established, a startup can work on tuning the engine. This will involve measurement and learning and must include actionable metrics that can demonstrate cause and effect question.
Display Advertising Issues Ad Fraud
About 36% of all Web traffic is fake. There are four primary sources of ad fraud. •Botnets can be hired by publishers to click on their Web pages to create phony traffic. •A browser extension can insert ads into a premium publishers Web's site, and then the ads as available in a programmatic ad exchange. •Ad targeting firms can create bots that imitate the behavior of real shoppers, and then charge advertisers for successfully targeting consumers. •The simplest technique is simply to hire people in low-wage countries to click on your ads using a proxy server.
Display Advertising Issues Ad Blocking
Ad-blocking software can eliminate display ads, pre-roll video ads, retargeted ads, and some types of native ads. Its use has been growing. Ad blockers operate in a manner very similar to a firewall, recognizing and eliminating content based on IP address. About 10-15% of Internet users in the United Stateds are estimated to use ad blockers. Some Web sites, such as Wired, The Guardian, and OKCupid have made a direct appeal to their users to turn off their ad-blockers or make a donation instead.
Display Ad Marketing Rich media ads
Ads that employ animation, sound, and interactivity, using Flask, HTML5, Java, and JavaScript are referred to as rich media ads They are far more effective than simple banner ads. Viewers of rich media ads that included video were six times more likely to visit the advertiser's web site. There are several types of rich media ads. Those that contain in-banner video, those that are expandable/retractable, pop-ups, floating versions, and interstitials.
Types of Search Engine Advertising Search engine optimization (SEO)
Because search engine marketing can be very effective, companies optimize their Web sites for search engine recognition. The better optimized a page is, the higher a ranking it will achieve in search engine result listings, and the more likely it will appear on the top of the page in search engine results. Search engine optimization (SEO) is the process of improving the ranking of Web pages with search engines by altering the content and design of the Web pages and site. Google and other search engine firms make frequent changes to their search algorithms in order to improve the search results and user experience. Panda (2011): Eliminate low-quality sites from search results. Penguin (2012): Eliminate sites with low-quality back links. Hummingbird (2013): Semantic search component of Google's search component. Knowledge Graph (2012): Function in Google's search engine that displays a selection of facts related to your search term that you may be interested in knowing more about. November 2015: Lower rank for sites displaying ads that obscure the screen, on the grounds that such ads are less mobile-friendly.
Display Ad Marketing Advertising marketing
It's very innefficient for a single firm to purchase ads in each individual Web site. Specialized advertising networks appeared to help firms make the entire process of buying and selling online ads more efficient and transparent. These sites are usually referred as Web publishers.
Integrated Print/Web Period (2000-2010)
Newspapers adopted multimedia elements such as video, added more interactive elements like crossword puzzles and contests, and provided more reader feedback opportunities, especially on opinion and editorial pages. The technology platform remained the desktop or laptop platform.
Online content
No other sector of the American economy has been so challenged by the Internet and the Web than the content industries. The online content industries are organized into two major categories: •The print industries: Newspapers, magazines and books. •The entertainment industries: TV, movies, music, and games. In each of these industries, there are: •Powerful offline brands. •Significant new pure-play online providers and distributors. •Consumer constraints and opportunities. •A variety of legal issues. •New mobile technology platforms that offer an entirely new content distribution system in the form of smartphones and tablets.
Customer Retention Strategies Personalization, One-to-one marketing, and Interest-Based Advertising (Behavioral Targeting).
One-to-one marketing segments the market on the basis of individuals, based on a precise and timely understanding of their needs, targeting specific marketing messages to these individuals. The Amazon and Barnes&Noble Web sites are good examples of personalization at work. Both sites greet registered visitors (based on cookie files), recommend recent books based on user preferences, and expedite checkout procedures based on prior purchase
Types of Search Engine Advertising Pay-per-click (PPC)
Pay-per-click search ads are the primary type of search engine advertising. In keyword advertising, merchants purchase keywords through a bidding process at search sites, and whenever a consumer searches for that word, their advertisement shows up somewhere on the page, usually as a small-text based advertisement on the right, but also as a listing on the very top of the page. The more merchants pay, the higher the rank and greater visibility of their ads on the page. Generally, the search engines do not exercise editorial judgement about quality of content of the ads. Google's keyword advertising program is called AdWords.
Types of Search Engine Advertising Network keyword advertising (context advertising)
Publishers (websites that want to show ads) join these networks and allow the search engine to place "relevant" ads on their sites. The ads are paid by advertisers who want that their ads appear across the Web. The revenue from the resulting clicks is split between the search engine and the site publisher, although the publisher gets much more that half in some cases. Google introduced AdSense in 2002.
In-banner video ad
Rich media; ad is triggered within banner, may expand outside banner used when: Within Web page, generally surrounded by content
Social marketing and advertising
Social marketing / advertising involves the use of online social networks and communities to build brands and drive sales revenues. In 2015, it represented the 16% of all online marketing but it's the fastest growing type of online marketing. Marketers cannot ignore the huge audiences that social networks such as Facebook, Twitter, Pinterest and Instagram are gathering, which rival television and radio in size. In 2015: •1.5 billion Facebook members. •320 million active Twitter users. •400 milion Instagram users. •100 million Pinterest members. Almost 90% of U.S. companies are using social media for marketing purposes in 2015, and research has found that social network users are more likely to talk about and recommend a company or product they follow on Facebook or Twitter. Many firms, such as Coca-Cola, have shut down product-specific Web pages and instead use Facebook pages.
The Lean Startup How? ELIMINATE UNCERTAINTY
The lack of a tailored management process has led many a start-up or, as Ries terms them, "a human institution designed to create a new product or service under conditions of extreme uncertainty", to abandon all process. They take a "just do it" approach that avoids all forms of management. But this is not the only option. Using the Lean Startup approach, companies can create order not chaos by providing tools to test a vision continuously. Lean isn't simply about spending less money. Lean isn't just about failing fast, failing cheap. It is about putting a process, a methodology around the development of a product.
Online publishing industry: Strengths and challenges Digital Ad Revenue
While unique visitors to newspaper Web sites are expanding, increasingly this traffic is less valuable for two reasons: •The audience is increasingly coming from social media sites and search engines in order to find specific articles, rather than coming directly to the newspaper's home page. •These visitors from social sites are less engaged, and less valuable. As a result, growth in digital ad revenues are tepid, and, online publishers would need to build on their expanding digital subscription market composed of loyal readers who visit the paper everyday for curation and opinion.
Viral Marketing
a form of social marketing that involves getting customers to pass along a company's marketing message to friends, family, and colleagues. It's the online version of word-of-mouth advertising. The most important factor in the decision to purchase is the face-to-face recommendations of parents, friends, and colleagues.
Display Ad Marketing Sponsorships
a paid effort to tie an advertiser's name to particular information, an event or a venue in a way that reinforces its brand in a positive yet not overtly commercial manner. Sponsorships typically are more about branding than immediate sales. For instance, Subaru sponsors an app called MapMyDogWalk, a GPS-enabled dog walking tool.
Search Engine Issues: Content farms
are companies that generate large volumes of textual content for multiple Web sites designed to attract viewers and search engines, and exposing them to ads.
Search Engine Issues: Link farms
are groups of Web sites that link one to another, therefore boosting their ranking in search engines that use a PageRank algorithm to judge the "usefulness" of a site. Most of them were removed after Google's Panda update.
Value proposition "Why should the customer buy from you?"
defines how a company's product or service fulfills the needs of customers. Successful e-commerce value propositions include: •Personalization and customization of product offerings. •Reduction of product search costs. •Reduction of price discovery costs. •Facilitation of transactions by managing product delivery. •What value do we deliver to the customer? •Which one of our customers's problems are we helping to solve? •What bundles of products and services are we offering to each Customer Segment? •Which customer needs are we satisfying?
Customer Retention Strategies Behavioral targeting
involves using the online and offline behavior of consumers to adjust the advertising messages delivered to them online, often in real time. Google, because of the negative connotations associated to behavioral targeting's term, has introduced a new name for it, interest-based advertising (IBA).
Affiliate marketing
is a form of marketing where a firm pays a comission, typically anywhere between 4% to 20%, to other Web sites (including blogs) for sending customers to their Web site. Generally involves pay-for-performance: the affiliate or affiliate network gets paid only if users click on a link or purchase a product.
Search Engine Issues: Click fraud
occurs when a competitor clicks on search engine results and ads, forcing the advertiser to pay for the click even though the click is not legitimate. Competitors can click offshore firms or hire botnets to automate the process. Advertisers lost $6.3 billion in 2015 due to click fraud.
Lean manufacturing or lean production
often simply "lean", is a systematic method for the elimination of waste within a manufacturing system. Essentially, lean is centered on making obvious what adds value by reducing everything else Lean manufacturing is a management philosophy derived mostly from the Toyota Production System (TPS)
Customer experience
refers to the totality of experiences that a customer has with a firm, including the search, informing, purchase, consumption, and aftersales support for its products, services, and various retail channels.
Lead generation marketing
uses multiple e-commerce presences to generate leads for businesses who later can be contacted and converted into customers through sales calls, e- mail, or other means. Sometimes called 'inbound marketing', laead generation marketing firms help other firms build Web sites, launch e-mail campaigns, use social network sites and blogs to optimize the generation of leads, and then manage those leads by initiating further contacts, tracking interactions, and interfacing with customer relationship management systemsto keep track of customer-firm interactions.
pets.com
was a dot-com enterprise that sold pet supplies to retail customers. It began operations in August 1998 and closed in November 2000 .Pets.com was a short-lived online business that sold pet accessories and supplies direct to consumers over the World Wide Web. It launched in August 1998 and went from an IPO on a major stock exchange (the Nasdaq) to liquidation in 268 days.
The Internet Intensity and Scope of usage
•71% of all American adults report logging on on a typical day (90% if we consider only teens). •A greater amount of time is being spent online by Internet users - almost 2 and a half hours a day. •In 2015, smartphones and tablets are major access points to the Internet and mobile commerce. 75% of all US Interent users access Internet using a mobile phone.
There are five stages in the consumer decision process
•Awareness of need. •Search for more information. •Evaluation of alternatives. •The actual purchase decision. •Post-purchase contact with the firm. The stages of the consumer decision process are basically the same whether the consumer is offline or online, but used tools differ.
Why study e-commerce?
•E-commerce technology is different, more powerful than previous technologies E-commerce brings fundamental changes to commerce: •Traditional commerce: Consumer as passive targets. Mass-marketing driven. Sales-force driven. Fixed prices. Information asymmetry.
2001-2006: Consolidation
•Emphasis on business-driven approach. •Traditional large firms expand presence •Not only retail but also more complex products. •Start-up financing shrinks up. •More complex products and services sold. •Growth of search engine advertising. •Business Web presences expand to include e-mail, display and search advertising, and limited community feedback features .
The Web site performs four important functions
•Establishing the brand identity and consumer expectations. •Informing and educating the consumer. •Shaping the consumer experience. •Anchoring the brand in an ocean of marketing messages coming from different sources.
Online content: most recent trends Business
•Explosive growth of the mobile platform of smartphones and tablets accelerates the transition to digital content. •Vertical integration: Amazon, Google (Youtube), Hulu, and Netflix (owners of the distribution channel) enter the content production business for video, books, and online TV-like distribution channels. •The cable industry is disrupted by growth of Internet content distributors. •Apple enters the music streaming business. •The percentage of Internet users who watch digital video continues to increase, about 87% of Internet users. •Music: digital music sales top physical sales; streaming surpasses downloading. •TV: The number of American watching TV online continues to grow, to over 73% of the U.S. Internet population). •E-book sales growth slows but represents one-third of all book revenues. •Movies: Americans continue to spend more on online movies than for DVDs. •Newspapers: online readership exceeds print readership. Online ad revenues grow but not enought to offset declining print ad revenues. •Gaming market: console game sales stagnate as mobile gaing soars. •The four Internet titans compete: Apple, Google, Amazon, and Facebook vie for ownership of the online entertainment and content ecosystem, selling experiences as weel as content. •Cable and satellite companies seek to consolidate: Comcast made an unsuccessful bid for Time Warner, finally bought by AT&T.
Canvas business model Revenue streams
•For what value are our customers really willing to pay? •For what do they currently pay? •How are they currently paying? •How would they prefer to pay? •How much does each Revenue Stream contribute to overall revenues? Types: Asses sale Usage fee Lending/Renting/Leasing Licensing Brokerage fees Advertising Fixed pricing: List price Product feature dependent Customer segment dependent Volume dependent Dynamic pricing: Negotiation (bargaining) Yield management Real-time market
1995-2000: Invention
•Key concepts developed •Period of explosive growth. •Disintermediation. •Limited bandwidth and media. •Euphoric visions of : •Friction-free commerce: •L o w e r e d s e a r c h c o s t s , disintermediation, price transparency, elimination of unfair competitive advantage. •First-mover advantages: •Network profits •"Winner takes all". •Dot-com crash of 2000. This period was characterized by experimentation, capitalization and hypercompetition
Online content: most recent trends Society
•Media consumption: Americans spend 4,200 hours a year consuming various types of media, more than twice as many hours as they work. •Time spent using digital media exceeds time spent with television. Time spent on mobile devices exceeds time spent on desktops. •The Federal Communications Comission issues new net neutrality rules that prohibit broadband providers from blocking, slowing down, or speeding up access t specific websites.
E-commerce: major trends 2017 Business
•Retail e-commerce in the USA continues double-digit growth (over 14%), with global growth even higher in Europe and emerging markets as China, India, and Brazil. •Mobile e-commerce explodes and is estimated to reach around $128 billion in the USA. •The mobile app ecosystem continues to grow, with almost 200 million US consumers using mobile apps. •Social e-commerce, based on social networks and supported by advertising, emerges and growths by 25% from 2013 to 2014. •Local e-commerce is also growing in the United States, fueled by an explosion of interest in on-demand services such as Uber. •On-demand service firms like Uber and Airbnb attract billions in capital, garner multi-billion dollar valuations, and show explosive growth. •Mobile and social advertising platforms show strong growth and begin to challenge search engine marketing. •Small business and entrepreneurs continue to flood into the e-commerce marketplace, often riding on the infraestructures created by industry giants such as Apple, Facebook, Amazon, Google, and eBay. •B2B e-commerce in the Unites States continues to strengthen and grow to $6.3 trillion.
