Chapter 9&10 DIGITAL MARKETING

BUSINESS-TO-CONSUMER DIGITAL

MARKETING PRACTISE

CHAPTER 9

NUR AQILAH BINTI ZAINUDIN2014416824

OUTLINE The consumer perspective: online consumer

behavior

The retail perspective: e-retailing

Implication for e-retail marketing strategy

INTRODUCTION Business-to-Customer (B2C) markets have made a

significant contribution to the commercial development of the internet encouraging wide-scale use of transactional e-commerce sites by a diverse and increasingly global range of consumers.

Key issues which have an impact on the growth and development of online B2C markets focusing on the retail store

THE CONSUMER PERSPECTIVE: ONLINE CONSUMER BEHAVIOUR

• Level of consumer demand for online shopping and services ultimately determine the size of e-retail marketers and when or if a market saturation point will be reached for online purchasing.

WHO ARE THE ONLINE CUSTOMERS?THE CUSTOMER PROFILE: Consumer’s profile can strongly influence where, when and how an

individual shops online and also have important marketing implications which includes classification variables and character variables.

AGE

EMPLOYMENT STATUS

GENDER

EDUCATION GEOGRAPHY

HOUSEHOLD SIZE

HOUSEHOLD TYPE

INCOME

MOBILITYRACE AND ETHNICITY

PROFI

LE

VARIA

BLE

CONSUMER BELIEFS ABOUT RANGE OF VARIABLES MIGHT ULTIMATELY SHAPE THEIR ATTITUDES TOWARDS THE INTERNET AND THEIR PURCHASING INTENTIONS. EXAMPLE INCLUDE :-

Security and privacy of information

Risk

Trust

Perceived usefulness

Ease of use

CHARACTER VARIABLES, BELIEF, ATTITUDES AND SHOPPING INTENTIONS

CONSUMER’S ONLINE SHOPPING EXPERIENCES

Avaibalility Convenience Customer service Deliverytimeliness

LOYALTY VARIABLES

Customizartion

Cultivation

Care

Community

Contact Interactivity

Character

Convenience

Choice

THE RETAIL PERSPECTIVE: E-RETAILING

Development of e-retailing

• When the development of the internet as a trading environment begain with the first exchanges of commercial e-mail, traditional retailers had little interest in trading online in early 1990’s.

• For many retailers it was considered as a remote ‘geekish’ environment used solely by computer experts and scientist.

E-retail formats and operational strategies

OPERATION CATEGORIES Bricks and clicks Clicks and mortar retailers Pureplay retailers Facebook commerce

E-RETAILING OPERATIONAL STRATEGIES

ONLINE SALES STRATEGIES

INFORMATION ONLY STRATEGIES

Billboards strategy

Brochure strategy

Catalogue strategy

Service strategy

Export strategy

Mirror strategy

Synergy strategy

Anti-mirror strategy

Virtual strategy

IMPLICATIONS FOR E-RETAIL MARKATEING STRATEGY

PERFORMANCE COMMENTARY MANAGERIAL IMPLICATION

The disparity between brand strength and website offer

The gap between internet use and the lack of website development means there is still the potential to capture browse and buy behavior.

Companies need to develop website to meet customer expectations capture this behavior.

The disparity between brand strength office and online

Retailer brand strength is frequently not reflected online.

The first dot-com wave was concerned with established first mover advantages.

A lack of alignment between the nature of the online competitive environment and the maturity of consumer demand

The most advanced entrants are from overseas or national catalogue companies.

The market is still at an early stage in many retail categories.

Inertia in decision making There are battle for budget within retailer.

Barriers to customer contact need to be removed.

Chapter 10

BUSINESS-TO-BUSINESS DIGITAL

MARKETING PRACTISE

COURSE OUTLINE Type of B2B organization marketing and

trading environments

Option for online inter-organisational trading

How digital technologies can support B2B marketing

Digital marketing strategies

INTRODUCTION

Business-to-business (B2B)COMMERCIAL TRANSACTIONS

BETWEEN AN ORGANISATION AND OTHER ORGANISATIONS (INTER-ORGANISATIONAL MARKETING)

There are three main types of organisational markets in which businesses primarily trade with businesses:

1. Industrial

2. Reseller

3. Government

Analysis of the main organisational markets reveals variations in company size, trading requirements, investmens and trading potential.

TYPES OF B2B ORGANISATIONAL MARKETING AND TRADING ENVIRONMENT

USING DIGITAL MARKETING TO SUPPORT CUSTOMER ACQUISITION IN B2B MARKETING

Some of the key differences in applying these for B2B are:

Search engine marketing Online PR Online partnerships Display advertising Opt-in e-,mail Social media marketing

LEAD GENERATION AND CONVERSION OPTIMISATION FOR B2B MARKETING

• Stage 1-inbound marketing focusing on search, online PR and display advertising used to attract website

• Stage 2-engagemnet devices like video whitepapers or other forms of market education material is used to encourage the visitor to interact with site and share information via social media.

• Stage 3-offering access to permission based content valuable to the visitor is used to generate leads via encouraging the visitor to register on the site supplying an email address and profile information or sharing the content via social network

• Stage 4-leads are followed up through personalized email sequences or where appropriate outbound phone calls where leads where lead are qualified as a valuable

Post sales customer relationship managemnet

•Buyer-seller relationship•Electronic billing•Self service technologies•Online product registrations•Online technical support

Market research

•Online survey

•Online focus groups

Knowledge sharing

New product development knowledge sharingOnline advertising knowledge sharingOnline sale knowledgeOnline service knowledgeaddressability

CUSTOMER RETENTION IN B2B MARKETING

OPTION FOR ONLINE INTER-ORGANISATIONNTRANDING

These are the main type:

1. E-sourcing

2. E-tending

3. E-information

4. E-reverse auctions

5. E-MRO

5 key drivers or supplier selection criteria for e-procurement adoption related to improving:1. Control2. Cost3. Process4. Individual

performance5. Supplier

management

B2B E-MARKETPLACES

ELECTRONIC MARKETSPACE -virtual marketplace such as the internet in which no direct contact

occurs between buyers and sellers.

Perhaps the most straightforward way to classify e-marketplaces is the type of user for example:

1. B2B independent e-marketplaces

2. Buyer oriented e market place

3. Supplier oriented e marketplace

HOW DIGITAL TECHNOLOGIES CAN SUPPORT B2B MARKETING

HOW ORGANISATION MAKE EFFICIENCY GAINS

a) Decision information costs

b) Quality cost

c) Factor costs

ANALYSIS THE FACTORS WHICH INFLUENCE THE DEGREE OF ADOPTION OF INTERNET TECHNOLOGIES

d) Financial dimension

e) Operational dimension

f) Market dimension

g) Strategic dimension

DIGITAL MARKETING STRATEGIES