E - COMMERCE Flashcards
What is E-commerce
E-commerce: Digitally enabled commercial transactions between and among organisations and individuals. (phones, computers, websites, email etc - it’s something that is used to do business without being with the business in person)
What is e-commerce - marketing mix
Products: Businesses that have products that are easily digitalisable and postable are able to take advantage of E-commerce. For example Nike, spotify, kindle
Price: Reduced prices due to the fact that consumers have more information about the products, and how much they cost compared to competitors. You can reduce costs, because you’ll be able to save money on staff, rent, insurance etc.
Promotion: The opportunity to personalise. With amazon, you get shown the products you’re interested in, which is much easier than going to the shop and having to go through multiple different products just to find a product you might be interested in.
Place: Opportunities to sell direct to consumers (instead of selling through distributors)
Process: Website design, how easy is it for people to browse products, and how easy is it for them to purchase.
People: You might not encounter any people when shopping online, but what are the training needs for the people programming the website or service.
Benefits of e-commerce
Increase market size = more revenue
Reduced costs (rent / wages etc)
Convenience for the shopper (24/ 7 access)
Customised products
Increased levels of competition
Lower barriers to entry
More feedback
Cost of e-commerce
Investment required
training need
Resistance of some customers
Fewer personal interactions
