logging in or signing up E Commerce Topic 2 edited Toni Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 821 Category: Education License: All Rights Reserved Like it (1) Dislike it (0) Added: January 09, 2008 This Presentation is Public Favorites: 1 Presentation Description No description available. Comments Posting comment... By: raniluom (13 month(s) ago) Sir, please send this ppt for my mail Id. My Id is raniluom@rediffmail.com Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide1: Topic 2 Marketing & Selling Via the Internet Objectives of Topic 2: Objectives of Topic 2 Marketing functions Competition and product differentiation Marketing plan Strategic questions Success in e-commerce Niche marketing Value-added agriculture Customer satisfactionSlide3: Buying Function Selling Function Processing Function Storage Function Transportation Function Grading and Standards Function Marketing Information Function Risk-Bearing Function Marketing FunctionsCompetition in e-Commerce makes Marketing Necessary!: Competition in e-Commerce makes Marketing Necessary! Impacts of e-commerce Lower buyers’ search cost Bargaining power of buyers increases Speedy comparisons Product Differentiation Lower price Customer service Digital products lack normal wear and tearCompetitive Advantage Can Be Achieved By --: Competitive Advantage Can Be Achieved By -- Concentrating on niche markets Product differentiation Alternative distribution channels and / or manufacturing processes Selective pricing and alternative cost structuresBasis for Product Differentiation: Basis for Product Differentiation Quality Delivery Credit and Terms Service Training Reputation / Brand Technical Information Actual Product Price Other Why Product Differentiation?: Why Product Differentiation? Product differentiation provides protection against a product’s competitors Brand loyalty by customers Results in lower sensitivity to priceFocus on a Particular Attribute!: Focus on a Particular Attribute! This strategy is built around serving a specific target market very well “Being able to serve specific target customers more effectively or efficiently than competitors” Being able to run faster … or whateverAdding Value: Adding Value FORM Having the product how the consumer wants it Processing, Packaging PLACE Having the product where the consumer wants it TIME Having the product when the consumer wants it POSSESSION Making it easy to get ownership of product to the consumer One stop shopping Developing a Marketing Plan: Developing a Marketing Plan 1) Situation Analysis 2) SWOT Analysis 3) Goals and Objectives 4) Marketing Strategy 5) Marketing Implementation 6) Marketing Control 1.) Situation Analysis: 1.) Situation Analysis External environment Customer environment Internal environmentExternal Environmental: External Environmental Competitive Pressures Brand Product Total Budget Economic Growth and Stability Political, Legal, and Regulatory Issues External Environmental: External Environmental Changes in Technology Identify technology not used to potential Future technology and obsolescence Sociological Issues Environment Social Customer Environment: Customer Environment Current and potential customers Demographic, Geographic, Psychographic, Product usage Purchaser, User, Influencer, Financial Responsibility What do customers do with product? Purchase Consume DisposeCustomer Environment: Customer Environment Where all do they purchase product? Only on-line Store When do they purchase? Promotions Seasonal Why and how do they purchase? Why do they not purchase?Internal Environment: Internal Environment Review marketing goals / objectives Review current marketing performance Review resources Review cultural and structural issues Slide17: 2) SWOT Strengths – factors of the company that provide for its success Examples: Good reputation -- quality products -- low cost producer Weaknesses – those factors that are a disadvantage for the company Examples: High cost producer -- a high employee turnover Slide18: 2) SWOT CONTINUED Opportunities – those factors that are outside company’s control, but are opportunities in which to capitalize Examples: Changing demographic profile -- competition -- e-business creating wider distribution Threats – those items outside the control of the company and that may hinder it Examples: Recession -- increased competition3) Goals & Objectives: 3) Goals & Objectives Goals broad Objectives Specific & Measurable #200 visitors to website Timeline In one year Person responsible Ex: Check e-mailsSlide20: Potential e-Commerce Goals Introduce new products or services Advertise existing business Supplement existing business program Reach broader customer base Provide better service Communicate information Reduce transaction costs4) Marketing Strategies: 4) Marketing Strategies Selecting & analyzing primary and secondary target markets Determining the appropriate marketing mix Product Price Place PromotionMarketing Mix: Marketing Mix Product Features Competitive advantage Positioning strategy Name Packaging Customer service strategy Complementary productsMarketing Mix: Marketing Mix Price Objectives Per unit costs Discount policiesMarketing Mix: Marketing Mix Place Supply chain Customer convenience Marketing Mix: Marketing Mix Promotion Budget IMC with Web site, Advertising, publicity, personal selling, sales promotions, sponsorships Marketing Implementation: Marketing Implementation Specific activities Person responsible Budget required Completion datesMarketing Control: Marketing Control Input controls Employee selection and training Employee manpower Financial resources Process controls Internal communications Organizational chart Output controls Marketing Mix performance standardsStrategic Questions for Company: Strategic Questions for Company What is your uniqueness? Where are you vulnerable? Where is the greatest value created in your company? What are the most common objections you hear from customers?Strategic Questions of Competitors: Strategic Questions of Competitors Who are your top five competitors? What are competitors’ strengths? Where are they vulnerable? Where can your company attack? How do prices, service, and quality compare?Strategic Questions of the Market: Strategic Questions of the Market What are five important trends? How is the industry changing? How many market segments do you serve? Where is your greatest growth potential? Which of your customers are doing well and why? Other Important Questions: Other Important Questions What are you producing and selling? How are your individual products unique? Why should your customer purchase from you? How are you going to make contact with your customer? What do you consider success?Success in e-Commerce: Success in e-Commerce Belongs to: Incumbents Attackers Niche MarketersIncumbents: Incumbents Those already in the e-commerce marketplace; companies like d and others are already well recognizedAttackers: Attackers Retail businesses that have achieved the size needed to reduce total costs & create advantages in areas such as: Brand strength Procurement Fulfillment Customer acquisition Service Niche Marketers: Niche Marketers Small retailers and start-up businesses that have loyal customers & a limited target population Strong ties to a select consumer segment Limited need for spending to attract new customers 3 Rules for Niche Marketing : 3 Rules for Niche Marketing 1. Meet their unique needs 2. Say the right thing 3. Always test-market Kim T. Gordon @Entrepreneur.comdNiche Marketing: Meet Unique Needs : Niche Marketing: Meet Unique Needs Benefits promised must have special appeal What can you provide that's new and compelling? Look for ways to tailor your product or service Consider all the product or service variations you might offerNiche Marketing: Say the Right Thing : Niche Marketing: Say the Right Thing Speak customers’ language Understand customer’s key issues Know communication preferencesNiche Marketing: Always Test-Market : Niche Marketing: Always Test-Market Assess the direct competitors Review Competitors' ads Brochures and Web sites Look for Key selling points Pricing Delivery and Other service characteristics Value-Added Agriculture: Value-Added Agriculture Adding value to agricultural production adds to over-all profitability of the farm firm It can help recapture farmer’s share of the food dollar – In 1913, farmers’ share was 46% By 1998, share dropped to 20%Slide42: Farm Value $123.3 b (19%) Marketing Bill $537.8 b (81%) Consumer Expenditures in 2000 $661.6 b (Source ERS, USDA)Value-Added Agriculture: Value-Added Agriculture Getting more income from your farm in innovative ways by changing: Way a commodity is marketed Form Packaging Traditional Market EnterprisesChanging the Way a Commodity is Marketed: Changing the Way a Commodity is Marketed Market a raw agricultural product in a non-traditional way to command a higher price Farm stand Special processors or users Schools or restaurants Farmers’ markets or other outletsChanging Form of Commodity Before Marketed: When you transform raw agricultural products through processing “Processing margin” covers the cost plus a margin that yields a higher profit Examples – Selling peach products instead of peaches Whole-hog sausage sold to neighbors Selling bread instead of flour Selling packaged beef directly to consumers Changing Form of Commodity Before MarketedHow Commodity is Packaged: How Commodity is Packaged Opportunity to increase profit Package design is the first thing a consumer sees Package size Consumers pay price differential since they do not want to purchase more than they need Special occasion or gift-ready packages provide a competitive edgeGrowing a Commodity for a Special Market: Growing a Commodity for a Special Market Ethnic or culture-oriented consumers are the fastest growing value-added markets today A viable market exists in every metropolitan area today Organic foods are also a special market Adding a New Enterprise: Adding a New Enterprise Defined as any change in a product or service Examples Adding mushroom or herb farming Goat production Pasture-fed chickens Producing a certain variety for cosmetics“Keeping the Customer Satisfied”: “Keeping the Customer Satisfied” Want “repeat business” and referrals Amazon.com generates 58% of its sales from repeat customers 80/20 Rule Slide52: Assign a tracking number to each order Some e-commerce software packages automatically generate order numbers, shipping labels and packing slips You’ll also want to request customers’ e-mail addresses Send confirmation and tracking numbers to this address as the order is processed National delivery services allow customers to track packages over the Internet “Keeping the Customer Satisfied”Slide53: Message boards to share experiences related to your product or service E-mail newsletters provide a way to communicate on a regular basis Special offers New products Provide direct links to your web-site “Keeping the Customer Satisfied”Thank You!!: Thank You!! 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E Commerce Topic 2 edited Toni Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 821 Category: Education License: All Rights Reserved Like it (1) Dislike it (0) Added: January 09, 2008 This Presentation is Public Favorites: 1 Presentation Description No description available. Comments Posting comment... By: raniluom (13 month(s) ago) Sir, please send this ppt for my mail Id. My Id is raniluom@rediffmail.com Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide1: Topic 2 Marketing & Selling Via the Internet Objectives of Topic 2: Objectives of Topic 2 Marketing functions Competition and product differentiation Marketing plan Strategic questions Success in e-commerce Niche marketing Value-added agriculture Customer satisfactionSlide3: Buying Function Selling Function Processing Function Storage Function Transportation Function Grading and Standards Function Marketing Information Function Risk-Bearing Function Marketing FunctionsCompetition in e-Commerce makes Marketing Necessary!: Competition in e-Commerce makes Marketing Necessary! Impacts of e-commerce Lower buyers’ search cost Bargaining power of buyers increases Speedy comparisons Product Differentiation Lower price Customer service Digital products lack normal wear and tearCompetitive Advantage Can Be Achieved By --: Competitive Advantage Can Be Achieved By -- Concentrating on niche markets Product differentiation Alternative distribution channels and / or manufacturing processes Selective pricing and alternative cost structuresBasis for Product Differentiation: Basis for Product Differentiation Quality Delivery Credit and Terms Service Training Reputation / Brand Technical Information Actual Product Price Other Why Product Differentiation?: Why Product Differentiation? Product differentiation provides protection against a product’s competitors Brand loyalty by customers Results in lower sensitivity to priceFocus on a Particular Attribute!: Focus on a Particular Attribute! This strategy is built around serving a specific target market very well “Being able to serve specific target customers more effectively or efficiently than competitors” Being able to run faster … or whateverAdding Value: Adding Value FORM Having the product how the consumer wants it Processing, Packaging PLACE Having the product where the consumer wants it TIME Having the product when the consumer wants it POSSESSION Making it easy to get ownership of product to the consumer One stop shopping Developing a Marketing Plan: Developing a Marketing Plan 1) Situation Analysis 2) SWOT Analysis 3) Goals and Objectives 4) Marketing Strategy 5) Marketing Implementation 6) Marketing Control 1.) Situation Analysis: 1.) Situation Analysis External environment Customer environment Internal environmentExternal Environmental: External Environmental Competitive Pressures Brand Product Total Budget Economic Growth and Stability Political, Legal, and Regulatory Issues External Environmental: External Environmental Changes in Technology Identify technology not used to potential Future technology and obsolescence Sociological Issues Environment Social Customer Environment: Customer Environment Current and potential customers Demographic, Geographic, Psychographic, Product usage Purchaser, User, Influencer, Financial Responsibility What do customers do with product? Purchase Consume DisposeCustomer Environment: Customer Environment Where all do they purchase product? Only on-line Store When do they purchase? Promotions Seasonal Why and how do they purchase? Why do they not purchase?Internal Environment: Internal Environment Review marketing goals / objectives Review current marketing performance Review resources Review cultural and structural issues Slide17: 2) SWOT Strengths – factors of the company that provide for its success Examples: Good reputation -- quality products -- low cost producer Weaknesses – those factors that are a disadvantage for the company Examples: High cost producer -- a high employee turnover Slide18: 2) SWOT CONTINUED Opportunities – those factors that are outside company’s control, but are opportunities in which to capitalize Examples: Changing demographic profile -- competition -- e-business creating wider distribution Threats – those items outside the control of the company and that may hinder it Examples: Recession -- increased competition3) Goals & Objectives: 3) Goals & Objectives Goals broad Objectives Specific & Measurable #200 visitors to website Timeline In one year Person responsible Ex: Check e-mailsSlide20: Potential e-Commerce Goals Introduce new products or services Advertise existing business Supplement existing business program Reach broader customer base Provide better service Communicate information Reduce transaction costs4) Marketing Strategies: 4) Marketing Strategies Selecting & analyzing primary and secondary target markets Determining the appropriate marketing mix Product Price Place PromotionMarketing Mix: Marketing Mix Product Features Competitive advantage Positioning strategy Name Packaging Customer service strategy Complementary productsMarketing Mix: Marketing Mix Price Objectives Per unit costs Discount policiesMarketing Mix: Marketing Mix Place Supply chain Customer convenience Marketing Mix: Marketing Mix Promotion Budget IMC with Web site, Advertising, publicity, personal selling, sales promotions, sponsorships Marketing Implementation: Marketing Implementation Specific activities Person responsible Budget required Completion datesMarketing Control: Marketing Control Input controls Employee selection and training Employee manpower Financial resources Process controls Internal communications Organizational chart Output controls Marketing Mix performance standardsStrategic Questions for Company: Strategic Questions for Company What is your uniqueness? Where are you vulnerable? Where is the greatest value created in your company? What are the most common objections you hear from customers?Strategic Questions of Competitors: Strategic Questions of Competitors Who are your top five competitors? What are competitors’ strengths? Where are they vulnerable? Where can your company attack? How do prices, service, and quality compare?Strategic Questions of the Market: Strategic Questions of the Market What are five important trends? How is the industry changing? How many market segments do you serve? Where is your greatest growth potential? Which of your customers are doing well and why? Other Important Questions: Other Important Questions What are you producing and selling? How are your individual products unique? Why should your customer purchase from you? How are you going to make contact with your customer? What do you consider success?Success in e-Commerce: Success in e-Commerce Belongs to: Incumbents Attackers Niche MarketersIncumbents: Incumbents Those already in the e-commerce marketplace; companies like d and others are already well recognizedAttackers: Attackers Retail businesses that have achieved the size needed to reduce total costs & create advantages in areas such as: Brand strength Procurement Fulfillment Customer acquisition Service Niche Marketers: Niche Marketers Small retailers and start-up businesses that have loyal customers & a limited target population Strong ties to a select consumer segment Limited need for spending to attract new customers 3 Rules for Niche Marketing : 3 Rules for Niche Marketing 1. Meet their unique needs 2. Say the right thing 3. Always test-market Kim T. Gordon @Entrepreneur.comdNiche Marketing: Meet Unique Needs : Niche Marketing: Meet Unique Needs Benefits promised must have special appeal What can you provide that's new and compelling? Look for ways to tailor your product or service Consider all the product or service variations you might offerNiche Marketing: Say the Right Thing : Niche Marketing: Say the Right Thing Speak customers’ language Understand customer’s key issues Know communication preferencesNiche Marketing: Always Test-Market : Niche Marketing: Always Test-Market Assess the direct competitors Review Competitors' ads Brochures and Web sites Look for Key selling points Pricing Delivery and Other service characteristics Value-Added Agriculture: Value-Added Agriculture Adding value to agricultural production adds to over-all profitability of the farm firm It can help recapture farmer’s share of the food dollar – In 1913, farmers’ share was 46% By 1998, share dropped to 20%Slide42: Farm Value $123.3 b (19%) Marketing Bill $537.8 b (81%) Consumer Expenditures in 2000 $661.6 b (Source ERS, USDA)Value-Added Agriculture: Value-Added Agriculture Getting more income from your farm in innovative ways by changing: Way a commodity is marketed Form Packaging Traditional Market EnterprisesChanging the Way a Commodity is Marketed: Changing the Way a Commodity is Marketed Market a raw agricultural product in a non-traditional way to command a higher price Farm stand Special processors or users Schools or restaurants Farmers’ markets or other outletsChanging Form of Commodity Before Marketed: When you transform raw agricultural products through processing “Processing margin” covers the cost plus a margin that yields a higher profit Examples – Selling peach products instead of peaches Whole-hog sausage sold to neighbors Selling bread instead of flour Selling packaged beef directly to consumers Changing Form of Commodity Before MarketedHow Commodity is Packaged: How Commodity is Packaged Opportunity to increase profit Package design is the first thing a consumer sees Package size Consumers pay price differential since they do not want to purchase more than they need Special occasion or gift-ready packages provide a competitive edgeGrowing a Commodity for a Special Market: Growing a Commodity for a Special Market Ethnic or culture-oriented consumers are the fastest growing value-added markets today A viable market exists in every metropolitan area today Organic foods are also a special market Adding a New Enterprise: Adding a New Enterprise Defined as any change in a product or service Examples Adding mushroom or herb farming Goat production Pasture-fed chickens Producing a certain variety for cosmetics“Keeping the Customer Satisfied”: “Keeping the Customer Satisfied” Want “repeat business” and referrals Amazon.com generates 58% of its sales from repeat customers 80/20 Rule Slide52: Assign a tracking number to each order Some e-commerce software packages automatically generate order numbers, shipping labels and packing slips You’ll also want to request customers’ e-mail addresses Send confirmation and tracking numbers to this address as the order is processed National delivery services allow customers to track packages over the Internet “Keeping the Customer Satisfied”Slide53: Message boards to share experiences related to your product or service E-mail newsletters provide a way to communicate on a regular basis Special offers New products Provide direct links to your web-site “Keeping the Customer Satisfied”Thank You!!: Thank You!! Are there any questions?