Week 1 - eCommerce

1. Week 1 - eCommerce I211 eCommerce Systems

2. Content • eCommerce Origins • eCommerce Goal • Terminology • B2B, B2C, C2B, C2C • Paypal, Shopping Cart • eMarketing • Target Audience (Consumer) • Psychology of Marketing • Maslow • Classical Conditioning • Colours • Fonts • Language

3. Learning Outcomes • Define: B2B, B2C, C2B, C2C • Define the goal of eCommerce websites • Describe target audience/market • Describe Maslow’s Hierarchy of needs • Describe the process of classical conditioning • Explain how colours are used in marketing • Explain how fonts can be used in marketing • Explain how language can be used in marketing

4. eCommerce – Overview • eCommerce: • Electronic Commerce • “The conducting of business communication and transactions over networks and through computers. Specifically, ecommerce is the buying and selling of goods and services, and the transfer of funds, through digital communications.”[1] • Sometimes referred to as eBusiness

5. eCommerce - Origins Relatively new advent • 1992 Books.com (from a BBS) • 1993 Mosaic – First Graphical Web Browser • 1994 Netscape Navigator – SSL • Based on Mosaic Code • 1994 Online Banking • 1995 Amazon.com • 1995 Internet Explorer • Based on Mosaic Code • 1996 eBay • 1998 Google • 1999 TradeMe

6. eCommerce - Origins • Internet Banking • 1994 Stanford Federal Credit Union • 1995 Security First Network Bank (internet only) • 1997 ASB introduces online banking to NZ

7. eCommerce • Types of eCommerce: • B2B • B2C • C2B • C2C • Exercise: Find out what the above terms stand for…

8. eCommerce • B2B – Business to Business • E.g. Wholesaler -> Retailer • B2C – Business to Consumer • E.g. • C2B – Consumer to Business • E.g. iStockPhoto • C2C – Consumer to Consumer • E.g. *Sometimes the word Customer is used instead of Consumer

9. eCommerce Goal • Gain a competitive advantage over competitors through online activities • Maximise profit through online activities • Increase profit through online activities • Promote brand through online activities

10. Profit • Profit: total income minus expenditure Suppliers Your Company Customers $$$$$ $$$ Goods Goods L $ Staff

11. Customers = Profit • Essentially, profit comes from customers giving you more money than you give to your suppliers and staff • Essentially, profit comes from customers giving you more money than you give to your suppliers and staff

12. eCommerce Goal • Using the internet (online activities) to convince people to give you money in exchange for your product or service • In order to convince someone to ‘choose us’ over our competitors we need to market to our consumers (target audience/market) • Marketing • eMarketing

13. Target Audience/Market • Every product or service has a target audience • Who is McDonald’s target audience? • Who is Subway’s target audience? • Who is Tui’s target audience? • Who is Steinlarger’s target audience? • Who do Microsoft target with the Xbox 360? • Who do Nintendo target with the Wii?

14. Marketing Psychology The reason you think energy drinks are actually good for you

15. Maslow’s Hierarchy of Needs • In order to market to consumers marketers need to understand consumers’ motives • Most marketing works on one or more of these levels • Most successfully marketingaims at an emotional level • Despite ethical debate, emotional marketing works

16. Classical Conditioning (Pavlov’s Dog) Recently this has become positive emotions • Marketing Recipe • Take your product (P) • Combine with something (X) your consumers like(L) • Show the combination (PX) to the consumer (C) • Result: Consumers begin to associate their enjoyment (L) of (X) with your product (P) What does Coke have to do with Santa or Christmas? What does a Clown have to do with burgers and fries?

17. (Some) McDonalds Tie Ins • The Pagemaster (1994) • Mighty Morphin Power Rangers: The Movie (1995) • Turbo: A Power Rangers Movie (1997) • Dr. Dolittle (1998) • Casper Meets Wendy (1998) • Night at the Museum (2006) • Night at the Museum: Battle of the Smithsonian (2009) • Ice Age: Dawn of the Dinosaurs (2009) • Avatar (December 4-31, 2009) • Alvin and the Chipmunks: The Movie (2007) • Alvin and the Chipmunks: The Squeakquel (2010) • Star Wars: The Clone Wars (2008) • Star Wars (2010) • Brother Bear (2003) • A Bug's Life (1998) • Cars (2006) • The Chronicles of Narnia: The Lion, the Witch and the Wardrobe with Walden Media (2005) • Chicken Little (2005) • Cinderella (1987) • DuckTales the Movie: Treasure of the Lost Lamp (1990) • The Emperor's New Groove (2000) • Finding Nemo (2003, 2005) • Fraggle Rock (1992) • Hercules (1997) • The Haunted Mansion (2003) http://en.wikipedia.org/wiki/McDonald%27s_advertising • Lilo & Stitch (2002) • The Jungle Book (1994) • The Incredibles (2004) • The Lion King II: Simba's Pride (1998) • The Lion King 1½ (2004) • The Little Mermaid (1989, 1996, 2006) • The Rescuers Down Under (1990) • Power Rangers: Lightspeed Rescue (2000) • Monsters, Inc. (2001) • Mulan (1998) • Muppet Treasure Island (1996) • Oliver & Company (1988) • Pirates of the Caribbean: The Curse of the Black Pearl (2003) • Pirates of the Caribbean: Dead Man's Chest (2006) • Super Mario Bros The Movie (1993) • Sleeping Beauty (1991) • Tarzan (1999) • Toy Story (1995) • Toy Story 2 (1999) • Antz (1998) • Bee Movie (2007) • Kung Fu Panda (2008) • Madagascar: Escape 2 Africa (2008) • Shrek the Third (2007) • Hotel for Dogs (2009) • Monsters vs. Aliens (2009) • The Penguins of Madagascar (2010)

18. Classical Conditioning • More logically • (X) invokes good feeling (L) in consumer (C) • Combine (X) with your product (P) • Result: good feeling (L) starts being invoked in consumer (C) by your product (P) • The invocation of the good feeling by your product becomes a reflexive response • Classical conditioning also works in reverse through the attachment of negative feelings* (sports event)

19. McDonalds Website

20. McDonalds Website

21. Not McDonalds Website

22. Coke Website

23. Coke Website

24. Not Coke Website

25. Marketing Colours Stop signs are red for a reason…

26. Marketing Colours • Red: energy, strength, desire, high visibility, used to stimulate quick decision making (Stop!, Danger!, Buy Now!) • Yellow: happiness, warmth, high visibility • Blue: depth, stability, trust, loyalty, wisdom, intelligence, heaven, cleanliness, precision • Black: power, elegance, death, mystery, formality, authority, boldness • Grey: rock solid, stable, timeless, business wise, high tech • White: purity, light, goodness, safety, transparency

27. Marketing Colours

28. Marketing Colours • More detailed reading • http://www.precisionintermedia.com/color.html • http://blog.thefolderstore.com/2008/09/27/color-meaning-psychology/ • http://www.color-wheel-pro.com/color-meaning.html • http://www.sibagraphics.com/colour.php

29. Marketing Fonts It’s not what you say, it’s how you say it

30. Marketing Fonts • Research has shown different fonts invoke different reactions in consumers • Font Meanings • http://www.quintcareers.com/resume_fonts.html • Mixing fonts • http://www.noupe.com/design/mixing-multiple-fonts.html

31. Marketing Fonts

32. Marketing Fonts The Good, The Bad, and The Ugly The Good, The Bad, and The Ugly The Good, the bad, and the ugly The Good, The Bad, and The Ugly

33. Marketing Fonts Elegance of Purity Elegance of Purity Elegance of purity Elegance of Purity

34. Marketing Language Speak the language of the consumer

35. Marketing Language • At the heart of Steinlager Classic is the idea of challenge. • Steinlager Classic was born from a challenge. In 1958, the infamous Black Budget cut beer imports and the challenge was put out to New Zealand brewers to produce a lager of international quality. • The response was Steinlager Classic – and half a century on it is firmly established as New Zealand’s top-selling premium beer. • Challenge has always been at the heart of Steinlager and it has certainly never shied away from confrontation. • It started by taking on the best beers in the world. In 1977 Steinlager won the Les Amis du Vin Award, the most prestigious beer award in the world. Steinlager followed it up by winning again in 1978 and to really prove it wasn’t a fluke, again in 1979 and 1980.

36. Marketing Language • At the heart of Steinlager Classic is the idea of challenge. • Steinlager Classic was born from a challenge. In 1958, the infamous Black Budget cut beer imports and the challenge was put out to New Zealand brewers to produce a lager of international quality. • The response was Steinlager Classic – and half a century on it is firmly established as New Zealand’s top-selling premium beer. • Challenge has always been at the heart of Steinlager and it has certainly never shied away from confrontation. • It started by taking on the best beers in the world. In 1977 Steinlager won the Les Amis du Vin Award, the most prestigious beer award in the world. Steinlagerfollowed it up by winning again in 1978 and to really prove it wasn’t a fluke, again in 1979 and 1980.

37. Marketing Language • It’s all about the energy • Welcome to the V energy website. Here you can learn about everything and anything you want to know about V. What flavours we have, what ingredients go into their creation, V’s history, all of our wicked extra-curricular stuff, and even how Guarana berries were once used to help a bunch of Indians covertly build an empire. • All you really need to know though is that V is Australasia’s favourite energy drink by a freaking mile. And while it comes in 5 different flavours, that all have the same V Guarana hit that stimulates your mental, and physical energy and provides you with the ammunition and enthusiasm to put a spin on your every day. • So check out our site, buy a V and go and do something extraordinary with all the energy

38. Marketing Language • It’s all about the energy • Welcome to the V energy website. Here you can learn about everything and anything you want to know about V. What flavours we have, what ingredients go into their creation, V’s history, all of our wicked extra-curricular stuff, and even how Guarana berries were once used to help a bunch of Indians covertly build an empire. • All you really need to know though is that V is Australasia’s favourite energy drink by a freaking mile. And while it comes in 5 different flavours, that all have the same V Guarana hit that stimulates your mental, and physical energy and provides you with the ammunition and enthusiasm to put a spin on your every day. • So check out our site, buy a V and go and do something extraordinary with all the energy

39. Marketing Language • True Star Fragrance for Women • Dazzling, mysterious, passionate... • Introduced in 2004, True Star by Tommy Hilfiger perfume for women is a fresh, fruity-floral fragrance in a flash-shaped bottle with a silver top. The energetic scent features a clean blend of honeysuckle, sweet pea, wheat, syringa, and florals. • Floral Oriental • Soft, spice orange flower notes meld with piquant aldehydes and sweet spicy to create the heart of a floral oriental fragrance

40. Marketing Language • True Star Fragrance for Women • Dazzling, mysterious, passionate... • Introduced in 2004, True Star by Tommy Hilfiger perfume for women is a fresh, fruity-floral fragrance in a flash-shaped bottle with a silver top. The energetic scent features a clean blend of honeysuckle, sweet pea, wheat, syringa, and florals. • Floral Oriental • Soft, spice orange flower notes meld with piquant aldehydesand sweet spicy to create the heart of a floral oriental fragrance

41. Review • Can you: • Define: B2B, B2C, C2B, C2C? • Define the goal of eCommerce websites? • Describe target audience/market? • Describe Maslow’s Hierarchy of needs? • Describe the process of classical conditioning? • Explain how colours are used in marketing? • Explain how fonts can be used in marketing? • Explain how language can be used in marketing?