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ELECTRONIC AGE MARKETING

ELECTRONIC AGE MARKETING. Internet basics Domains and domain names Economics of e-commerce Desktop publishing in Word. Internet Basics. Access to the Internet Dial-up Broadband For businesses and organizations (e.g., T1, T3) For individuals Cable, DSL, other Hardware Servers Local

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ELECTRONIC AGE MARKETING

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  1. ELECTRONIC AGE MARKETING • Internet basics • Domains and domain names • Economics of e-commerce • Desktop publishing in Word

  2. Internet Basics • Access to the Internet • Dial-up • Broadband • For businesses and organizations (e.g., T1, T3) • For individuals • Cable, DSL, other • Hardware • Servers • Local • Remote • Routers—direct “traffic” to and from work stations • Large office • Home networks

  3. More Internet Basics • Internet design for redundancy • Different possible paths between two points • Computer “down” time • Some Internet tools • E-mail • World Wide Web • USENET • FTP (file transfer protocol—for uploading or downloading files) • Telnet (access to large “mini” or mainframe computers with unsophisticated interface)

  4. More Internet Basics • Intranets (within organization) vs. extranets • Web addresses • Uniform Resource Locator (URL) (e.g., sdsu.edu)—will “route” a user to a numeric location (e.g., 192.107.41.31) • Protocol preface: http:// (hypertext transfer protocol) • Domain names: Prefix (e.g., sdsu); suffix (e.g., .edu, .com)

  5. Domain names • Uniform Resource Locators (URLs) • Standard way to access an Internet location • Used to translate meaningful words into numerical address • E.g., • http://www.sdsu.edu Top level domain Within domain location Protocol ID: Domain name

  6. Other examples • http://mea.consumerpsychologist.com • http://Ivcampus.sdsu.edu • http://www.amazon.co.uk

  7. Wireless connections • Reach • “Hot spots” vs. broader reach • Speed • Security

  8. Economics of Internet Commerce • Intense competition for large demand products (large quantity demanded attracts many sellers) • Use of large demand products as loss leaders (e.g., Amazon.com bestsellers) • Competition will force reduced costs—if any—to be passed on to customers • Competition makes charging for shipping and handling difficult. This is often more expensive than traditional distribution. • Less competition on specialty products • Established “brick-and-mortar” firms have large cash reserves

  9. Considerations in Evaluating E-Commerce Potential • Value-to-bulk ratio • Ability of consumer to evaluate quality and fit through online description • Extent of customization needed • Geographic dispersal of consumers

  10. How Suitable For Internet Commerce? Are There Differences Among Segments?

  11. Business Models of e-Commerce • Business model design • Revenue models • Customer/seller models • E-auctions

  12. Business Model Design • Business assessment • Digitalitality level of a business • Profit orientation (profit center business or loss center for spillover benefits) • Delivering customer value • Four Ps of Value • Product • Price • Place • Promotion

  13. Revenue Models • Revenue streams • Evaluating streams • Strength • Stability • Cyclicality • Resource needs • Interrelationships between streams

  14. Source of Site Income • Free access sites—profit derived through • Advertising/commissions • Sponsorships • Promotion or support of other business line • Paid access • Complete access for one charge • Access to core with extra charge for premium • Problems of “micro payments) • Hybrids • One party pays (e.g., job recruitment sites) • Two-tier—some free access; charge for premium

  15. Types of Business (Pure) Models

  16. Hybrids • B-2-B+C (Business to business and consumer) • E.g., Staples.com • Complex: • Amazon.com: B2C and C2C

  17. B2C • Direct sellers • Intermediaries • Advertising-based businesses • Community-based model • Fee-based model

  18. Characteristics of Successful B2C Companies • High number of visitors • High conversion rates • Higher revenue per transaction • Higher average gross margin • No impact of • Number of transactions per consumer • Acquisition cost

  19. “Clicks-and-Bricks” Model • Integration of electronic and traditional commerce • Consumers can shop and return both ways • Synergies • Forms • Spin-offs • Strategic partnerships • Joint ventures • Within-company division

  20. B2B • Typical characteristics • High volume, value • Purchase specificity • Team buying/decision making • Long term relationships • Leasing issues • Competitive bidding

  21. C2C • Usually require intermediary (e.g., eBay) • Issues of reputation • “Infrastructure” issues (e.g., ability to take credit card payments) • Economics of • Labor (seller) • Cost of search (buyer)

  22. C2B • Rare category • Agency coordinating sales of • Property (e.g., antiques) • Personal skills

  23. E-Auctions • Types • English • Dutch • Speedier • May result in lower prices when multiple items are sold • Bidding behavior issues • Timing of bids • “Sniping”

  24. Desktop Publishing in Word • Desktop publishing software • Word, WordPerfect • Fancier programs: MS Publisher, InDesign, Adobe Illustrator, Macromedia Fireworks, Adobe Photoshop • Possibilities within Word • Brochures • Posters

  25. Some Features • Columns • Tables • Imported • Created in Word • Graphics • Fonts

  26. Tables • Use for • Control of formatting—e.g., course document header • Control of placement—e.g., graphics • Organization of information • “Merge” and “split” cells

  27. Posters • Paper orientation • “Portrait” (regular) • “Landscape” (rotated 90 degrees) • Tables for graphics • Fonts • Images • Document borders • Fonts

  28. Monospace (e.g., Courier) vs. proportionally spaced (e.g., Arial, Times Roman) Font sizes Measured in “Points” (average length and height of a letter) All fonts with the same “size” are not equally large! (Times Roman is more “efficient”) Serif vs. sans-serif Serif fonts have sharp edges (e.g., Times Roman) Easier to read for longer documents—less eye strain Sans-serif lack sharp edges Generally look more pleasant Used for headlines Fonts

  29. Some “Standard Fonts” • Courier (not used much in contemporary documents, but has been found effective in direct mail)—looks like a typewriter • Times Roman—default on many programs • Arial (Helvetica)—common sans-serif font

  30. Fonts Usually Standard in Windows (But Not Necessarily Macintosh) • Comic Sans • Letter gothic (monospace) • Trebuchet (proportional, hybrid serif/sans-serif) • Book Antiqua (proportional, serif) • Century gothic (proportional, sans-serif)

  31. Preserving Formatting • Use of “standard” fonts • Testing across • Multiple browsers • Computer types and configurations • Use of invisible “tables” • Use of Adobe Acrobat (PDF) files • Good for preserving document formatting while avoiding large task of reformatting • May require the user’s browser to open Adobe Acrobat (resulting in delay)

  32. Brochures • 4 page 5.5x8.5 brochure: • Use landscape orientation • Reduce right and left margins to 0.5” • Make page into two columns • Start in column 2 on first page • Last page is column 1 of first page • Templates • Font selection • Inserting graphics

  33. Large quantity: File submitted to printing firm Choice of paper Glossiness Thickness Small quantity in-office printing Large posters Laser printing vs. inkjet Inkjet usually provides superior quality Laser is usually cheaper Paper choices Absorbency Thickness Glossiness Quality of print Printing Brochures and Posters

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