B2B MARKETING THROUGH ELECTRONIC COMMERCE

E-COMMERCE
BUYING OR SELLING OF PRODUCTS OR SHARING INFORMATION THROUGH NETWORK OF COMPUTERS.
A TOOL TO IMPROVE EFFICIENCY AND EFFECTIVENESS IN MARKETING.

HELPS TO REDUCE THE COST OF OPERATIONS

IMPROVE THE QUALITY OF GOODS AND SERVICES INCREASE THE SPEED OF SERVICE IMPROVE QUALITY OF COMMUNICATION IMPROVES CUSTOMER SATISFACTION

E-COMMERCE
IMPORTANT APPLICATIONS IN MARKETING: COMMUNICATION WITH CUSTOMERS, INTERMEDIARIES AND SUPPLIERS ONLINE MARKETING AND ADVERTISING GETTING & PROCESSING ORDERS, INFORMING CUSTOMERS ABOUT DELIVERY MANAGING FINISHED GOODS RECEIVING ELECTRONIC PAYMENTS FROM CUSTOMERS

INFORMATION ABOUT EXISTING & PROSPECTIVE CUSTOMERS

IMPORTANT PARTS OF E-COMMERCE INTERNET, WORLD WIDE WEB, INTRANETS, EXTRANETS

CHANGING BUSINESS ENVIORNMENT

Some examples: INDIAMART.COM BHEL SIEMENS E SHOP WALMART TATA B2B EDURITE.COM

TRADITIONAL ORDER TAKING PROCESS VERSUS

NEW (WEB-BASED ONLINE) ORDER TAKING PROCESS

B to B FORMS OF ECOMMERCE
TYPES OF INTER-ORGANISATIONAL SYSTEMS : ELECTRONIC DATA INTERCHANGE ELECTRONIC FUND TRANSFER ELCTRONIC FORMS INTEGRATED MESSAGING SHARED DATA BASES

INTER-ORGANISATIONAL SYSTEMS
CHARACTERSTICS (EDI)
Main Activities Regular Transactions Relationships Anticipated future transactions Agreements Relationship between buyer and seller Nature & format of documents Expectation & responsibilities of both parties Networks Private or Public depends on situation.

ELECTRONIC MARKETS
CHARACTERSTICS
Main Activities Not recurring or predictable Transactions Relationships May be for one time purchase Agreements No agreements or contracts. Sellers decide, in consultation with transaction handler Networks Typically Public networks used. Buyers & sellers independently decide.

ELECTRONIC MARKETS BENEFITS

Advertising Banners ads, Hyperlinks. Customer service & support E-mail, FAQ, Online services Effective alternative to traditional channels Online catalogues, Direct service centres, Direct sales Extending reach to buyers

INTERNET
International Reach Linking Firms

Shared Ownership
Accessibility on the internet Flexibility of platforms Low Cost

Why is online presence important for any company?

Consider a rotor shafts manufacturing company with an annual turnover of 5 crores Without an online presence, they have no way to contact prospective customers other than the traditional email and telephone, neither do the prospects have a way of contacting them.

Marketing on the World Wide Web

Marketing on the World Wide Web

What the WWW can give this company?

Improve their corporate image

Give their customers a public reference other than the companys managers through a well designed and up to date website An online enquiry system helps prospective customers find more about the companys capabilities to make shafts of different specs An online order placement system via the customers extranet will help them deliver Just In Time (JIT) and reduce rejections through exact understanding of the specs JIT delivery, feedback mechanism through the extranet, automated protocols for straight rebuy enhance customer satisfaction and strengthen relationship with customer

Find new prospects & give international reach

Improve customer service & reduce costs

Meet customer expectations

Marketing Strategy For The Electronic Market Place

Segmentation and Targeting

Interactive applications will capture and constantly update non-traditional segmentation data such as buyer behaviour, stage in buying cycle, customer satisfaction measures which are considered more relevant in a B2B scenario Target segments are chosen based on exhaustive data mining and evaluation of all customers based on a longer list of criteria all of this made possible through the enhanced computing capabilities

Marketing Strategy For The Electronic Market Place

Product differentiation and positioning

i.

Identifying target customers wants in terms of major benefits through interactive marketing research using online data collection by questionnaires ii. Selecting one or more benefits or niches for differentiation based on comparison with competitors offering iii. Communicating the companys positioning to the target market through Integrated Marketing Communication (IMC)

4Ps for WWW

Promotion
By far, the marketing mix element that has been most impacted by the internet Integrated Marketing Communication enables easier and more pervasive promotion of the companys products and services Tele-presence makes face to face communication possible for people on different ends of the globe with low cost The companys website becomes their basic marketing message and their domain name becomes their contact address for all practical purposes

4Ps for WWW

Place & Distribution

Multi channel marketing made possible by internet Dell being a sparkling success story Advantages:
Higher market coverage ii. More customized selling iii. Lower channel costs iv. Can help eliminate intermediaries But, a careful analysis of the firms internal capabilities has to be carried out in order to choose the channels
i.

4Ps for WWW

Pricing Decisions
Individual customers ask for customized pricing In this case, interactive applications can help set prices based on the latest competitor prices available on the internet and obtained from data made available by industry associations Automated applications can help determine high cost areas and help companies cut costs efficiently

4Ps for WWW

Product Strategies
Real time information on Product Life Cycle of all the companies products helps them take faster decisions regarding divesting and investing The internet gives a whole new perspective for new product development

Better understanding of customer wants through focused customer research Reaching the right customers for feedback on product performance beta testing

Outlook for the future

Thank You.