E Commerce Marketing Concepts

Copyright © 2004 Pearson Education, Inc. Slide 7-1

E-commerce

Kenneth C. Laudon

Carol Guercio Traver

business. technology. society.Second Edition


Chapter 7

E-commerce Marketing Concepts


Learning Objectives Identify the key features of the Internet audience辨識網路讀者群的主要特徵。

Discuss the basic concepts of consumer behavior and purchasing decisions討論顧客行為與購買決策的基本概念。

Understand how consumers behave online了解顧客在網路上的行為表現。

Describe the basic marketing concepts need to understand Internet marketing描述了解網路行銷所需的基本行銷觀念。


Learning Objectives (Cont.) Identify and describe the main technologies that

support online marketing辨識與描述支援網路行銷的主要技術。

Identify and describe basic e-commerce marketing and branding strategies辨識與描述基本的電子商務行銷與品牌策略。

Explain how online market research is conducted解釋如何建構網路市場研究。


NetFlix Develops a New Brand

Example of pure-play online business that built a nationally recognized successful brand within a relatively short time period

Marketing strategies include: Strategic alliances Personalization Data mining and collaborative filtering Customer service


NetFlix Develops a New BrandPage 355


7.1 The Internet Audience and Consumer Behavior

Around 160 million Americans (56% of total population) have Internet access mid-2003

Growth rate has slowed to less than 10% a year

Intensity and scope of use both increasing


Top 10 Most Popular Internet Activities (2002)Table 7.1, Page 359


A Growing Range of Online Activities: An Average Day in the Life on an Internet UserTable 7.2, Page 360


A Growing Range of Online Activities: An Average Day in the Life on an Internet UserTable 7.2 (cont’d),

Page 361


Internet Audience and Consumer Behavior

Demographics and access（人口統計資料與使用） : some demographic groups have much higher percentages of online usage than other groups.

Demographics to examine include: Income（收入） Age（年齡） Ethnicity（種族） Education（教育） Gender（性別）


Changing Demographic Differences in Internet AccessTable 7.3, Page 363


Type of Internet Connection: Broadband Impacts

30 million Americans will have broadband access by end of 2003

Broadband audience quite different from dial-up audience: Wealthier(豐富的 ) More educated More middle-aged Greater intensity and scope of use


The Impact of Broadband on Internet ActivitiesTable 7.4, Page 365


The Impact of Broadband on Internet Activities (cont’d)Table 7.4, Page 366


Lifestyle Impacts

Intense Internet usage may cause a decline in traditional social activities

Social development of children using Internet intensively instead of engaging in (從事於 ) face-to-face interactions or undirected play may also be negatively impacted

The more time people spend on the Internet, the less time spent using traditional media


Consumer Behavior Models

Attempt to predict/explain what consumers purchase and where, when, how much and why they buy.

Consumer behavior models based on background demographic factors and other intervening(介於中間的 ), more immediate(立即的 ) variables


A General Model of Consumer BehaviorFigure 7.1, Page 368

（中介變數—市場刺激）

。

消費者行為模式企圖預測消費者在交易市集中的決策。


Background Demographic Factors Culture（文化） : Shapes basic human values, wants,

perceptions(感知 ) and behaviors Subculture（子文化） : Subset of culture; forms around

major social differences such as ethnicity(種族地位 ), age, lifestyle, geography(地理分佈 )

Direct reference group（直接參考族群） : Include one’s family, profession/occupation(職業 ), religion(宗教 ), neighborhood, schools

Indirect reference group（間接參考族群） : Includes one’s life-cycle state, social class and lifestyle group

Opinion leaders(意見領袖 ) or viral influencers（病毒影響者） : Influence the behavior of others through their personality, skills or other factors


Background Demographic Factors (cont’d)

Psychological profile（心理側寫資料） : set of needs, drives, motivations, perceptions and learned behaviors

Psychographic profiles（性格分析資料） : divides market into different groups based on demographic and psychological data


Factors That Predict Online Buying BehaviorFigure 7.2, Page 370

主動尋找產品資訊每天傳送的電子郵件數和最近是否從型錄訂購產品，是預測某人是否將會在線上訂購東西的重要變數 ( 變數從效果最低列到最高）。

( 效益規模 )


The Purchasing Decision

Five stages in the consumer decision process: Awareness of need（察覺需求） Search for more information（搜尋） Evaluation of alternatives（評估各種選擇） Actual purchase decision（購買） Post-purchase contact with firm（售後服務）


The Consumer Decision Process and Supporting CommunicationsFigure 7.3, Page 371

不管非線上或線上傳達工具，都可以用來支援網路消費者的決策過程五個階段。


A Model of Online Consumer Behavior

Adds two new factors: Web site capabilities（網站效能） – the

content, design and functionality of a site Consumer clickstream behavior（點選流向行為） – the transaction log that consumers establish as they move about the Web


A Model of Online Consumer BehaviorFigure 7.4, Page 372

網站的設計與功能性，和消費者點選流向行為，也都影響網路消費者行為。


Seven Types of Online Sessions（程序）Table 7.5, Page 374

快手

只要事實

單一任務

又一次

閒逛

請給我資訊

持續瀏覽


Shoppers: Browsers and Buyers 2003 UCLA Internet Report:

About 40% of online users are “buyers” who actually purchase online

About 40% of online users research on the Web (“browsers”) and purchase them online.

Significance of online browsing for offline purchasing and vice versa (反之亦然 ) should not be underestimated

E-commerce and traditional commerce are coupled and should be viewed by merchants and researchers as part of a continuum of consuming behavior


Online ShoppersFigure 7.5, Page 375

有 80%的網路使用者在線上購物，不管是研究產品或在網路上購買產品。網路使用者實際上在線上購物的比例自 2001年後開始減少，但他們購物的交易量卻增加了。


What Consumers Shop for and Buy Online

Online sales divided roughly into small ticket and big ticket items

Small ticket items – traditional leaders include apparel(衣服 ), books, health and beauty aids, office supplies, music, software, videos, toys etc.

Top small ticket categories have similar characteristics – sold by first movers, small purchase price, physically small, high margin items, broad selection of products available

Purchases of big ticket items (airline tickets, hotel rooms, computer hardware, consumer electronics) expanding


What Consumers Buy on the Web – Small Ticket Items (December 2002)Figure 7.6,

Page 377


What Consumers Buy on the Web – Big Ticket Items (December 2002) (cont’d)Figure 7.6, Page 377


Intentional Acts: How Shoppers Find Vendors Online

Over 85% of shoppers find vendor sites by typing product or store/brand name into search engine or going directly to the site

Most (55%) online shoppers plan to purchase product within a week, either online or at a store

Most online shoppers (83%) have a specific item in mind


Shoppers’ Intention to PurchaseFigure 7.7, Page 378

大部分的線上購物者打算在一星期內完成購物。


Most Online Shoppers Are Focused BrowsersFigure 7.8, Page 378

線上購物者是有高度意圖的。


Why More People Don’t Shop Online

There are a number of actions e-commerce vendors could take to increase the likelihood that shoppers and non-shoppers would purchase online more frequently, including: Better prices Making comparison shopping easier Making it easier to return merchandise Providing better security for credit card

and/or personal information


Factors That Would Encourage More Online PurchasingTable 7.6, Page 380

更好的售價、容易比價、容易退貨和更加的安全性，是促成更多線上購買的前幾個因素。


Trust, Utility, and Opportunism in Online Markets

Trust and utility among the most important factors shaping decision to purchase online

Consumers are looking for utility (better prices, convenience)

Asymmetry of information can lead to opportunistic behavior by sellers

Consumers also need to trust merchants before willing to purchase

Sellers can develop trust by building strong reputations for honesty, fairness, delivery


7.2 Basic Marketing Concepts

Marketing（行銷） : The strategies and actions firms take to establish a relationship with a consumer and encourage purchases of products and services

Internet marketing（網路行銷） : Using the Web, as well as traditional channels, to develop a positive, long-term relationship with customers, thereby creating competitive advantage for the firm by allowing it to charge a higher price for products or services than its competitors can charge

http://tw.emarketing.yahoo.com/


Basic Marketing Concepts (cont’d)

Firms within an industry compete with one another on four dimensions: Differentiation Cost Focus Scope

Marketing seeks to create unique, highly differentiated products or services that are produced or supplied by one trusted firm (“little monopolies”)


Feature Sets（特性集合） Defines as the bundle of capabilities and services

offered by the product or service Includes:

Core product（核心產品） – the core benefit the customer receives from the product

Actual product（實際產品） – the set of characteristics designed to deliver the product’s core benefits

Augmented product（附加產品） – a product with additional benefits to customers beyond the core benefits embodied in the actual product


Feature SetFigure 7.9, Page 382

特性集合中每個元素都可突顯某產品在市場中和其它產品的區別。


Products, Brands and the Branding Process

Brand（品牌） : A set of expectations that consumers have when consuming, or thinking about consuming, a product or service from a specific company

Branding（品牌化） : The process of brand creation Closed loop marketing（封閉循環行銷） : When

marketers are able to directly influence the design of the core product based on market research and feedback. E-commerce enhances the ability to achieve

Brand strategy（品牌策略） : Set of plans for differentiating a product from its competitor, and communicating these differences to the marketplace

Brand equity（品牌效益） : estimated value of the premium customers are willing to pay for a branded product versus unbranded competitor


Marketing Activities: From Products to Brands Figure 7.10, Page 383

信賴喜愛忠誠度名聲

行銷者企圖以消費者認知到的信賴、喜愛、忠誠度和名聲，創造產品的「品牌識別」。


Are Brands Rational? For consumers, a qualified yes:

Brands introduce market efficiency by reducing search and decision-making costs

For business firms, a definite yes: Brands lower customer acquisition costs – the

overall costs of converting a prospect into a consumer

Brands increase customer retention – Successful brand constitutes a long-lasting

(although not necessarily permanent) unfair competitive advantage


Can Brands Survive the Internet? Brands and Price Dispersion

Researchers initially postulated that Web would result in “Law of One Price” – with complete transparency in a perfect marketplace, there would be one world price for every product

Did not occur, and e-commerce firms continue to rely heavily on brands to attract customers and charge premium prices

Price dispersion（價格分散度） – the difference between the highest and lowest prices in a market

Research evidence indicates that brands are alive and well on the Internet, and that consumers are willing to pay premium prices for products and services they view as differentiated


www.nash-equilibrium.comPage 387


7.3 Internet Marketing Technologies

Web transaction logs（網站交易記錄） Cookies and Web bugs Databases, data warehouses, and data

mining Advertising networks（廣告聯播網路） Customer relationship management (CRM)

systems


Revolution（革命） in Internet Marketing Technologies

Three broad impacts: Internet has broadened the scope of

marketing communications Internet has increased the richness of

marketing communications Internet has greatly expanded the

information intensity of the marketplace


Impact of Unique Features of E-commerce Technology on MarketingTable 7.7, Page 389

普及性

全球可及

全球標準化

豐富性

互動性

資訊密集

個人化 /客製化


Web Transaction Logs （網站交易記錄） Built into Web server software Records user activity at a Web site WebTrends a leading log analysis tool Can provide treasure trove of marketing information,

particularly when combined with: Registration forms（註冊表單） – used to gather

personal data Shopping cart database（購物車資料庫） –

captures all item selection, purchase and payment data


Four Seconds from the Web Transaction Log of Azimuth-Interactive.comFigure 7.11, Page 391


Marketing Uses of Data from Web Transaction LogsTable 7.8, Page 392


Cookies Cookies: small text file that Web sites place

on a visitor’s client computer every time they visit, and during the visit as specific pages are accessed.

Cookies provide Web marketers with a very quick means of identifying the customer and understanding his or her prior behavior

Location of cookie files on computer depends on browser version


A Typical Netscape Cookie FileFigure 7.12,

Page 393


Web Bugs

Tiny (1 pixel) graphic files embedded in e-mail messages and on Web sites

Used to automatically transmit information about the user and the page being viewed to a monitoring server


Insight on Society: Should Web Bugs Be Regulated?

Marketers claim Web bugs are innocuous; privacy advocates say, if so, why are they hidden

Different types include clear GIF, executable bugs and script-based executable bugs

Privacy Foundation guidelines for Web bug usage: Should be visible and labeled to indicate function Should identify name of company that placed it Should display disclosure statement if clicked Should be able to opt-out

Network Advertising Initiative (NAI) calls them Web beacons, and have issued their own guidelines

Currently, no government regulation


Databases and Data Warehouses Database: Software that stores records and attributes Database management system (DBMS): Software used to

create, maintain and access databases SQL (Structured Query Language): Industry-standard database

query and manipulation language used in a relational databases Relational database: Represents data as two-dimensional

tables with records organized in rows and attributes in columns; data within different tables can be flexibly related as long as the tables share a common data element

Data warehouse: Database that collects a firm’s transactional and customer data in a single location for offline analysis by marketers and site managers


A Relational Database View of E-commerce CustomersFigure 7.13, Page 398


Data Mining Set of analytical techniques that look for patterns in data of a database

or data warehouse, or seek to model the behavior of customers Types include:

Query-driven – based on specific queries Model-driven – involves use of a model that analyzes key variables

of interest to decision makers Rule-based – examines demographic and transactional data of

groups and individuals at a Web site and attempts to derive general rules of behavior for visitors

Collaborative filtering（合作式過濾）– behavioral approach; site visitors classify themselves into affinity groups（關聯群體） based on common interests; products are then recommended based on what other people in the group have recently purchased


Data Mining and PersonalizationFigure 7.14,

Page 399評估客戶的回應

個人化資訊的傳送及呈現

比對

建立客戶側寫資料

收集客戶資料

個人化內容及行銷是根據資料探勘的方式而來，可以產生出可信賴的個人消費者行為之規則。


Insight on Technology: Enhancing the Intelligence of Collaborative Filtering Systems

Collaborative filtering automates the process of collecting and distributing recommendations from other users

Early efforts suffered from defects (start-up effect, popularity effect, misplaced-consumer effect)

Solutions include adding human editors, asking consumers to establish own profiles


Advertising Networks

Best known for ability to present users with banner advertisements based on a database of user behavioral data

DoubleClick best-known example Ad server selects appropriate banner ad

based on cookies, Web bugs, backend user profile databases


How an Advertising Network such as DoubleClick WorksFigure 7.15, Page 404

廣告聯播網路因為可以透過網路追蹤個人消費者的能力而在隱私權保護者中引起了爭議。


Customer Relationship Management (CRM) Systems

Repository of customer information that records all of the contacts that a customer has with a firm and generates a customer profile available to everyone in the firm with an need to “know the customer”

Customer profiles can contain: Map of the customer’s relationship with the firm Product and usage summary data Demographic and psychographic data Profitability measures Contact history Marketing and sales information


A Customer Relationship Management SystemFigure 7.16, Page 406


圖 7.16是金融機構的 CRM系統。這個系統從所有的客戶「接觸」點和其它資料來源收集客戶資料，把資料組合，並整合進單一的客戶資料儲存庫或資料倉儲中，如此可用來提供更好的服務，或依行銷用途建立客戶側寫資料。

線上分析處理 (OLAP)讓主管可動態分析客戶活動，以找出客戶的趨向或議題。

其它分析軟體程式分析總合客戶行為，以辨別可獲利和無法獲利的客戶與客戶活動。


7.4 Market Entry Strategies For new firms:

Pure clicks/first mover Mixed “clicks and bricks”/alliances

For existing firms: Pure clicks/fast follower Mixed “clicks and bricks”/brand extensions


Generic Market Entry StrategiesFigure 7.17, Page 408

搶先者

合作夥伴

快速追隨者

品牌延伸者

新公司與傳統公司在進入電子商務交易市集時，都面臨一項基本選擇 -- 「虛擬」或「虛擬實體合一」


Establishing the Customer Relationship Permission marketing（許可行銷） : Marketing strategy in

which companies obtain permission from consumers before sending them information or promotional messages (example: opt-in(加入 ) e-mail)

Affiliate marketing（合作行銷） : Marketing strategy that relies on referrals; Web site agrees to pay another Web site a commission for new business opportunities it refers to the site

Viral marketing（病毒行銷） : Process of getting customers to pass along a company’s marketing message to friends, family, and colleagues

Brand leveraging（品牌運用） : Process of using power of an existing brand to acquire new customers for a new product or service


Customer Retention（顧客維持） Mass market-personalization continuum ranges from

mass marketing to direct marketing to micromarketing（個體行銷） to personalized, one-to-one marketing

One-to-one marketing（一對一行銷） : Involves segmenting the market on a precise and timely understanding of an individual’s needs, targeting specific marketing messages to these individuals and then positioning the product vis-à-vis competitors to be truly unique


The Mass Market-Personalization ContinuumFigure 7.18, Page 414

( 簡單 )

( 分級 )

( 複雜 )

( 高度複雜 )

( 大眾行銷 )

( 直接行銷 )

( 個體行銷 )

( 個人化一對一行銷 )

個人化一對一行銷屬於行銷策略發展的一部分。選擇何種策略要看產品的性質以及促成各種策略的技術。


Other Customer Retention Marketing Techniques

Customization（客製化） : Changing the product (not just the marketing message) according to user preferences

Customer co-production（客戶共同生產） : Allows the customer to interactively create the product

Transactive content: Results from the combination of traditional content with dynamic information tailored to each user’s profile


Other Customer Retention Marketing Techniques (cont’d)

Customer service tools include: Frequently asked questions (FAQs) – text-based

listing of common questions and answers Real-time customer service chat systems –

company’s service representatives interactively exchange text messages with one or more customers on a real-time basis

Intelligent agent technology – bots Automated response systems – send e-mail

confirmations and acknowledgments


Net Pricing Strategies Pricing (putting a value on goods and services) an

integral part of marketing strategy Traditionally, prices based on:

Fixed cost (costs of building production facility) Variable costs (costs involved in running

production facility) Market’s demand curve (quantity of goods that

can be sold at various prices) Price discrimination（價格區別） : Selling products

to different people and groups based on their willingness to pay


A Demand CurveFigure 7.19, Page 419

需求曲線顯示各種售價 (P)可售出的產品數量(Q)


Net Pricing Strategies (cont’d) Free products/services: Can be used to build market

awareness（知名度） Versioning（提供版本） : Creating multiple versions of a

good and selling essentially the same product to different market segments at different prices

Bundling（配套） : Offers consumers two or more goods for one price

Dynamic pricing: Auctions（拍賣） – establish an instant market price for

goods Yield management（收益控制） – Managers set prices

in different markets, appealing to different segments in order to sell excess capacity


The Demand for Bundles of 1-20 GoodsFigure 7.20, Page 422

套裝產品中組合的商品數量愈多，消費者就願意付愈多的每產品價格。

( 配套數量佔總人口數的百分比 )


Channel Management Strategies

Channel（管道） : Refers to different methods by which goods can be distributed and sold

Channel conflict（管道衝突） : Occurs when a new venue for selling products or services threatens or destroys existing venues for selling goods

Examples: online airline/travel services and traditional offline travel agencies

Some manufacturers are using partnership model to avoid channel conflict


7.5 Online Market Research Market research（市場研究） : Involves gathering

information that will help a firm identify potential products and customers

Two general types: Primary research（主要研究） – involves

gathering first-hand information using techniques such as surveys, personal interviews and focus groups（焦點小組）

Secondary research（間接研究） – relies on existing, published information as basis for analyzing market


Types of Survey QuestionsTable 7.9, Page 425


Insight on Business: Zoomerang

Zoomerang.com: One of the first online survey tools launched

Enables users to choose from pre-built survey templates, create and distribute online surveys, and collect and analyze survey responses

Competitors include SurveyMonkey and others


Some Popular Secondary Research ToolsTable 7.10, Page 428


7.6 Case Study: Liquidation.com: B2B Marketing Basics on a Budget

Liquidation.com: B2B auction business model, focusing on liquidated goods

Marketing and branding tactics include: Trust building through alliances Web transaction log analysis, customer

registration forms Search engine marketing Guerilla marketing public relations campaign and

limited advertising E-mail marketing


Liquidation.com: B2B Marketing Basics on a BudgetPage 430