Lecture 10 e-commerce marketing and advertising concepts -chapter 6

1. ACCOUNTING INFORMATION SYSTEM & E-
COMMERCE
LECTURE 10
E-COMMERCE MARKETING &
ADVERTISING CONCEPTS
CHAPTER 6
By
Habib Ullah Qamar
MSCS,MBA(HRM)

2. LEARNING OBJECTIVES
 Identify the key features of the Internet audience.
 Discuss the basic concepts of consumer behavior
and purchasing decisions.
 Understand how consumers behave online.
 Identify and describe the basic digital commerce
marketing and advertising strategies
and tools.
 Identify and describe the main technologies that
support online marketing.
 Understand the costs and benefits of online
marketing communications

3. LET WE GUESS HOW MANY PEOPLE WATCH
VIDEOS ONLINE?
 187 Million USA in July 2013
 22.5 hours per month
 Because this is where the eyeballs are, video is an
obvious advertising medium.
 And just in time: Internet users have learned how to
avoid traditional banner ads by instinctively moving
their eyes to a different part of the screen.

4. CONSUMERS ONLINE: THE INTERNET AUDIENCE
AND CONSUMER BEHAVIOR (B2C)
 Internet Traffic Patterns: The Online Consumer
Profile : The first principle of marketing and sales is
“know thy customer.” Who is online, who shops online
and why, and what do they buy?
 Intensity and scope of usage (Several studies also show
that a greater amount of time is being spent online by Internet
users—over 2 hours a day)
 Demographics and access (Up until 2000, single, white,
young, college-educated males with high incomes dominated
the Internet.)
 Type of internet connection: broadband and mobile impacts
 Community effects: social pollution in social networks
 Consumer behavior models (Fig6.1)

5. CONSUMERS ONLINE: THE INTERNET AUDIENCE
AND CONSUMER BEHAVIOR (B2C)
 Profiles of online consumers (Fig 6.2)
 The Online Purchasing Decision (Fig 6.3)
 Shoppers: Browsers And Buyers
 What consumers shop for and buy online
 Intentional acts: how shoppers find vendors
online
 Trust, Utility, And Opportunism In Online
Markets

6. FIG 6.1 CONSUMER BEHAVIOR

7. FIG 6.2 ONLINE PURCHASING DECISION

8. THE CONSUMER DECISION PROCESS AND
SUPPORTING COMMUNICATIONS

9. CONSUMER BEHAVIOR MODEL

10. DIGITAL COMMERCE MARKETING AND
ADVERTISING STRATEGIES AND TOOLS
Internet marketing has many similarities to, and
differences from, ordinary marketing.
 Strategic issues and questions
 The five main elements of a comprehensive multi-
channel marketing plan are:
 Web site
 traditional online marketing
 social marketing
 mobile marketing
 and offline marketing. Table 6.3.

11. TABLE 6.3

12. DIGITAL COMMERCE MARKETING AND
ADVERTISING STRATEGIES AND TOOLS
 The Web Site As A Marketing Platform:
Establishing The Customer Relationship
 Traditional Online Marketing And Advertising
Tools
 Search Engine Marketing And Advertising
 Search Engine Advertising
 Display Ad Marketing
 E-mail Marketing
 Affiliate Marketing
 Lead Generation Marketing
 Social, Mobile, And Local Marketing And Advertising

13. DIGITAL COMMERCE MARKETING AND
ADVERTISING STRATEGIES AND TOOLS
 Multi-channel marketing: integrating online and
offline marketing
 Other Online marketing strategies
 customer retention strategies
 Personalization, One-to-One Marketing
 Versioning
 Free and Fermium
Dynamic Pricing and Flash Marketing
 Pricing strategies
 Long tail marketing

14. INTERNET MARKETING TECHNOLOGIES
 The revolution in internet marketing
technologies (Table 6.6)
 Web transaction logs
 Supplementing the logs: tracking files
 Databases, Data Warehouses, Data Mining, And
Big Data
 Customer Relationship Management (CRMm)
Systems

16. UNDERSTANDING THE COSTS AND BENEFITS OF
ONLINE MARKETING COMMUNICATIONS
 ‘Online marketing communications still comprise
only a small part of the total marketing
communications universe.
 While there are several reasons why
this is the case, two of the main ones are
concerns about
 How well online advertising
really works?
 How to adequately measure the costs and benefits
of online advertising?

17. UNDERSTANDING THE COSTS AND BENEFITS OF
ONLINE MARKETING COMMUNICATIONS
 Online marketing metrics: Lexicon

18. UNDERSTANDING THE COSTS AND BENEFITS OF
ONLINE MARKETING COMMUNICATIONS
 Online marketing metrics: Lexicon
 How well does online advertising work?
 What is the most effective kind of online advertising?
How does online advertising compare to offline
advertising? The answers depend on the goals of the
campaign, the nature of the product, and the quality of
the Web site you direct customers toward. The answers
also depend on what you measure.
 The costs of online advertising
 most online ads were sold on a barter or cost per
thousand (CPM) impressions basis
 Today, other pricing models have developed, including
cost per click (CPC),
 A Prenegotiated fee for each click an ad receives; cost
per action (CPA).

19. UNDERSTANDING THE COSTS AND BENEFITS OF
ONLINE MARKETING COMMUNICATIONS

20. WEB ANALYTICS: SOFTWARE FOR
MEASURING ONLINE MARKETING RESULTS
 Web analytics is a software package that collects,
stores, analyzes, and graphically presents data on
each of the stages in the conversion of shoppers to
customers process on e-commerce sites.

21. RESOURCES
 E-Commerce by Kenneth C. Loudon, Carol Traver :
2014 version : Chapter 6
 www.Wikipedia.org
 http://theITeducation.com/
 http://slideshare.net/habibullahqamar/

22. THANK YOU