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External factors included in the seller’s 3. High price elasticity
perspective on pricing: 4. Competition
1. Market structure 5. Reverse auctions
2. Market efficiency 6. Shopping agents
3. Buyer’s perspective 7. Flash sales
4. Competition 8. Tax-free zones
9. Venture capital
7
Factors that increase price dispersion: 5. The firm must take care not to upset
1. Branding customers who learn they are pricing
2. Differentiation prices different from other customers
3. How products are priced online
4. Delivery options Reasons to rent instead of buy software:
5. Time-sensitive shoppers 1. Organizations need to use software for
6. Switching costs a short-term project
7. Second-generation shopping agents 2. They don’t want to pay for installation
and maintenance
E-money offline payment systems:
1. Payment by smart chip Participants of the distribution channel:
2. Mobile wallets 1. Producers
2. Intermediaries
Advantages of e-money for online retailers: 3. Buyers
1. It is more efficient Elements of the channel structure that affect
2. Lower transaction fees the Internet marketing strategy:
3. It draws new customers without credit 1. Types of online channel
card fears intermediaries:
4. It allows to sell to Internet users who a. Wholesalers
don’t have credit cards or who don’t b. Retailers
want to input their credit cards on a c. Brokers
new Web site d. Agents
2. Functions of channel members:
Pricing strategies for online retailers: a. Transactional:
1. Fixed pricing/Menu pricing i. Contact with buyers
2. Dynamic pricing ii. Marketing
3. Renting communications
4. Price placement on Web pages iii. Matching the product
to buyer’s needs
Fixed pricing strategies: iv. Negotiating price
1. Price leadership v. Process transactions
2. Promotional pricing b. Logistical:
3. Freemium pricing i. Physical distribution
ii. Aggregating products
Dynamic pricing strategies: iii. The last mile problem
1. Segmented pricing: iv. Outsourced logistics
a. Geographic segment pricing c. Facilitated:
b. Values segment pricing i. Market research
2. Price negotiation ii. Financing
3. Length of the online channel:
Conditions for the effectiveness of segmented a. Direct distribution channel
pricing: b. Indirect distribution channel
1. The market is segmentable 4. Physical and informational systems
2. The different prices reflect real that link the channel members
differences in each segment’s
perceptions of the product’s value Examples/Types of infomediary:
3. The segments show different degrees 1. Market research firms or Web sites
of demand that require registration for
4. The company must be sure that its downloading white papers and then
segmented pricing meets legal and provide the user data to authors
regulatory guidelines 2. Product review sites
8 Benefits for customers purchasing in virtual
Intermediary models used on the Internet: malls:
1. Brokerage models: 1. Branding
a. Exchange 2. Availability of electronic money
b. Auctions 3. Availability of frequent shopper
2. Agent models: programs
a. Representing sellers: 4. Gift registry
i. Selling agents (e.g. 5. Search facility
affiliate programs) 6. Recommendation service
ii. Manufacturer’s
agents - B2C market:
seller aggregators Tactics used by social commerce companies:
(e.g. Expedia); B2B 1. Widgets on social media sites (“Buy
market: catalogue now”)
aggregators 2. Crowdsourcing
iii. Virtual malls (e.g. 3. Location-based commerce
Amazon) 4. Other collaboration models
iv. Metamediaries (e.g.
The Knot) Reasons why Internet hasn’t eliminated
b. Representing buyers intermediaries:
(purchasing agents): 1. The U.S. distribution system is
i. Shopping agents efficient
ii. Reverse auctions (e.g. 2. Using intermediaries allows
Priceline) manufacturers to focus on their core
iii. Buyer cooperatives – business
buyer aggregators 3. Many traditional intermediaries have
(e.g. Groupon) been replaced with online
3. Online retailing: intermediaries
a. E-commerce
i. Mobile commerce: Ways in which the Internet channel adds
ii. Social commerce: value to the contact process with buyers:
social sign-in, social 1. The Internet is always open, 24/7
shopping (e.g. 2. Contact can be customized to the
Amazon, buyer’s needs
TripAdvisor): 3. The Internet provides a wide range of
1. Facebook referral sources (search engines,
commerce shopping agents, social networks)
b. Direct distribution – direct
selling Ways in which the Internet channel adds
value to the marketing communication
Consumer problems solved by function:
metamediaries/Benefits for customers 1. Functions that previously required
purchasing in metamediaries: manual labour can be automated
1. Reducing search times 2. Communications can be closely
2. Providing quality assurance about monitored and altered minute by
vendors minute
3. Facilitating transactions for a group of 3. Web analytics software for tracking
related purchases users’ behaviour can be used to highly
4. Providing relevant content information target communications to individuals
about the purchase 4. The Internet enhances promotional
coordination among intermediaries
9 social media press releases, viral
Solutions to the last mile problem: videos, participation in virtual worlds)
1. Smart boxes 3. Sales promotions (e.g. Groupon
2. Retail aggregator model discounts, free sampling of digital
3. Special e-stops products, contests/sweepstakes,
4. Order online for offline retail delivery games)
4. Direct marketing (e.g. e-mail and text
Ways in which the Internet channel adds messaging with offers from
value to the market research function: companies, location-based systems,
1. Some of the information on the RSS feeds, behavioural targeting)
Internet is available for free 5. Personal selling (e.g. chat bots that
2. Managers and employees can conduct allow for conversation on a Web site,
research from their desks rather than also called virtual agents/assistants)
making expensive trips to libraries and
other resource sites Owned media formats:
3. Information from the Internet is 1. Content marketing:
timelier a. Web site:
4. Information from the Internet is i. MPR
already in digital form, so e-marketers ii. Microsites
can easily load it into a spreadsheet or iii. Landing pages
other software iv. Mobile sites
5. Because so much consumer behaviour v. Web site chat
data can be captured online, e- vi. Blogs
marketers can receive detailed reports b. Support forums/Community
c. Podcasts
Variables of EDI: d. E-mail
1. Openness of the system e. Text messaging
2. Transport method f. Online events
3. Type of technology 2. Online sales promotion offers:
a. Coupons
Process of creating a successful marketing b. Sampling
communication campaign: c. Contest/sweepstakes
1. Set clear measurable objectives and 3. Virtual worlds
strategies 4. Online games
2. Understand the audience motivations 5. Online gifting
and behaviour, especially in social 6. Branded mobile apps
media 7. QR codes and mobile tags
3. Develop creative approach appropriate 8. Location-based marketing
for the brand in one or more platforms 9. Social networks
4. Define success metrics 10. Search Engine Optimization:
a. Natural/Organic search:
Traditional marketing communication i. Vertical search
tools/Promotion mix: b. Paid search
1. Advertising (e.g. Facebook or
LinkedIn ads, Google AdWords, paid Primary goals of owned media:
message placed in Youtube videos, 1. Engage consumers with the positive
product placement in virtual worlds or brand content
online games) 2. Entice them to share the content with
2. PR (e.g. social media events, others
company-created multimedia content, 3. Exercise CRM
10 2. It offers an immediate and convenient
Ways by which companies can monetize their way for direct response to Web and
owned media content: social media sites using hyperlinks
1. Selling digital content on their owned 3. It can be automatically individualized
media to meet the needs of specific users
2. Becoming affiliate of another Web site 4. Marketers use e-mail for behavioural
and receiving commissions when targeting
users click on the link to purchase the 5. It is quicker than postal mail
product at the sponsor’s Web site
3. Accepting Google’s AdSense or other E-mail’s disadvantages:
types of ads and receiving payments 1. Spam
when users click on the ads 2. Difficulty in finding and maintaining
appropriate e-mail lists
Advantages of using the Web for publishing
product information: Benefits of newsletters:
1. It is a low-cost alternative to paper 1. Legitimately and regularly promote
brochures the company name to clients
2. It is easier and cheaper to update than 2. Personalize the communication with
paper brochures tailored content
3. It can reach new prospects who are 3. Occasionally receive payments by
searching for particular products carrying small advertisements
(inbound marketing) 4. Make it easy for clients to share the
information with others
Objectives/Functions of Web sites: 5. Position the company as an expert on
1. Entertaining a subject
2. Providing information 6. Point recipients back to the company’s
3. Building communities Web or social media site
4. Providing a communication channel
with customers Ways of building fan numbers on social
networks:
Things to consider when companies want to 1. Update frequently the page, but keep it
start blogging: consistent to the brand image
1. Which platform to use 2. Post frequently to maintain the
2. Who does the writing conversation with fans
3. How often they post 3. Use appropriate and clear calls-to-
4. What is the purpose of the blog action
4. Listen to the comments that can help
Process to build a successful online improve the brand
community: 5. Use analytics to monitor page and app
1. Observe activity to improve the content and
2. Recruit make it more engaging
3. Evaluate platforms
4. Engage Most appropriate metrics for direct marketing:
5. Measure 1. Response rate
6. Promote 2. ROI
7. Improve Paid media formats:
Advantages of e-mail over postal mail: 1. Display ads:
1. It requires no postage or printing costs a. Rich media ads:
i. In-banner video ads
11 ii. Expandable/retractable d. Voice
ads e. Display ads
iii. Pop-up f. Full screen takeovers
iv. Pop-under g. Location-based ads
v. Wallpaper ads h. Apps
vi. Trick banner 10. Paid search:
vii. Map ads a. Keyword advertising
viii. Floating ads b. Paid inclusion
ix. Interstitial c. Directory submission
ads/Between-the-page
b. Contextual advertising: The largest spending category among paid
i. Behavioural advertising media formats:
(Remarketing) 1. Paid search ads
2. E-mail advertising