When goods and services are sold on the Internet the approach to marketing is known as?

Electronic Commerce

The three major types of electronic commerce are:

• Business-to-consumer (B2C): Retailing products and services to individual shoppers
• Business-to-business (B2B): Sales of goods and services among businesses
• Consumer-to-consumer (C2C): Consumers selling directly to other consumers.

Another way of classifying electronic commerce transactions is in terms of the participants' physical connection to the Web. Conventional e-commerce transactions, which take place over wired networks, can be distinguished from mobile commerce or m-commerce, the purchase of goods and services using handheld wireless devices.

Marketers can use the interactive features of Web pages to hold consumers' attention or to capture information about their tastes and interests. This information may be obtained by asking visitors to "register" online and provide information about themselves or by using special software such as clickstream tracking to track the activities of Web site visitors. Companies can then analyze this information to develop more precise profiles of their customers.

Figure 10-3

FIGURE 10-3 WEB SITE VISITOR TRACKING E-commerce Web sites have tools to track a shopper�s every step through an online store. Close examination of customer behavior at a Web site selling women�s clothing shows what the store might learn at each step and what actions it could take to increase sales.

Communications and product offerings can also be tailored precisely to individual customers. By using Web personalization technology to modify Web pages presented to each customer, marketers can achieve the benefits of using individual salespeople at dramatically lower costs. Personalization can help firms form lasting relationships with customers by providing individualized content, information and services.

Figure 10-4

FIGURE 10-4 WEB SITE PERSONALIZATION Firms can create unique personalized Web pages that display content or ads for products or services of special interest to individual users, improving the customer experience and creating additional value.

Collaborative filtering compares a customer's behavior with data about similar customers to predict what the customer would like to see next and makes recommendations to users. Blogs, or Weblogs, informal web sites where individuals, or corporate representatives and groups, can publish views and options, have emerged as a promising Web marketing tool. New third-party services monitor customer discussions in online communities or research online behavior of large numbers of customers at many different web sites.

Learning what customers feel about one's products or services through electronic visits to Web sites is much less costly than using focus groups. The Web shifts more marketing and selling activities to the customer, as customers fill out their own on-line order forms. Mobile commerce will provide businesses with additional channels for reaching customers and new opportunities for personalization.

The Web and other network technologies are inspiring new approaches to customer service and support. Companies can reduce costs and improve customer service by using Web sites to provide helpful information as well as customer support via e-mail. Companies are realizing substantial cost savings from Web-based customer self-service applications. New products are even integrating the Web with customer call centers.

Much of B2B e-commerce is still based on proprietary systems for electronic data interchange (EDI). Electronic data interchange (EDI) enables automated computer-to-computer exchange between two organizations of standard transactions such as invoices, bills of lading, shipment schedules, or purchase orders.

Figure 10-5

FIGURE 10-5 ELECTRONIC DATA INTERCHANGE (EDI) Companies use EDI to automate transactions for B2B e-commerce and continuous inventory replenishment. Suppliers can automatically send data about shipments to purchasing firms. The purchasing firms can use EDI to provide production and inventory requirements and payment data to suppliers.

Today companies are increasingly turning to the Internet for this purpose because it provides a much more flexible and low-cost platform for linking to other firms. For procurement (purchasing source goods and negotiation with suppliers), businesses can use the Internet to locate low-cost goods, place orders, make payments, etc. Businesses can create Web storefronts to sell goods, and Internet technology to create extranets or link to other businesses for transactions.

B2B e-commerce environments include:

• Private industrial networks or private exchanges: Typically consisting of a large firm using an extranet to link to its suppliers and other key business partners.
• Net marketplaces or e-hubs: Internet-based marketplaces for many different buyers and sellers. Net marketplaces are industry owned or operate as independent intermediaries between buyers and sellers, generating revenue from transaction fees or services to clients. Net marketplaces may sell direct goods (used in a production process) and some sell indirect goods. They may support contractual purchasing based on long-term relationships with designated suppliers, and others support short-term spot purchasing, where goods are purchased based on immediate needs, often from many different suppliers. Some net marketplaces may serve vertical markets for specific industries or horizontal markets, with goods and services for many industries.
• Exchanges: Independently owned third-party Net marketplaces that can connect thousands of suppliers and buyers for spot purchasing. Many exchanges provide vertical markets for a single industry. However, many exchanges have failed because they encourage competitive bidding that drove prices down without offering long-term relationships.

Figure 10-6, Figure 10-7

FIGURE 10-6 A PRIVATE INDUSTRIAL NETWORK A private industrial network, also known as a private exchange, links a firm to its suppliers, distributors, and other key business partners for efficient supply-chain management and other collaborative commerce activities.

FIGURE 10-7 A NET MARKETPLACE Net marketplaces are online marketplaces where multiple buyers can purchase from multiple sellers.

When goods and services are sold on the Internet the approach to marketing is quizlet?

Which of the following is the most important aspect among a website function for interactive marketing?

What is meant by the concept of mobile optimized design?

Which re engages individuals who have visited a site but did not make purchases?