E-COMMERCE

E-COMMERCE

1. The marketing mix

   • Product
     • Business selling over the internet
     • Modifications on product design
     • Implementations of individual requirements
   • Place
     • Effective and rapid logistic systems
     • Smaller proportion of all goods are being sold via traditional methods
     • IT-focused businesses store's are expanding
   • Price
     • Customers have more control -> market's prices are now much more competitive
     • More difficult price discrimination
   • Promotion
     • Promotional opportunities have been greatly expanded
     • Using IT-based systems saves costs
     • Promotional materials might have to be adjusted

2. Types of e-commerce

   • Business to business (B2B)
     • Transactions conducted directly between a supplying business and a purchasing business
   • Consumer to consumer (C2C)
     • Business model based on e-commerce that creates a facility that allows consumers to trade with each other.
   • Business to consumer (B2C)
     • Services transactions conducted directly between a company and consumers who are the end-users of its products and services

3. Benefits and limitations

   • Benefits
     • Internet -> comparing prices
     • Online stores open 24/7
     • Lower prices
     • No time or money are spent travelling
     • Ability to sell to other consumers
     • Immediate access to music and films
   • Limitations
     • Relies on good internet connection
     • Not being able to see, touch or try products
     • Risk of credit card fraud and loss of personal info
     • Delays in receiving goods