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MKTG 445 CH 15

Terms in this set (17)

1) General exchange of goods and services over the internet or similar online networks
- It has surpassed 1.3 trillion dollars, surpassing US by China

2) Low penetration in some countries (like Africa) while other countrie (China and the US) are huge when it comes to internet penetration

3) These are three broad categories for e-commerces activities
- B2B commerce constitutes the biggest share of the internet economy and will continue to grow in the foreseeable future

A) Provide marketing communications about a company's goods and services
B) Provides news and entertainment and support a company's PR team
c) Online retail operations for the purchase of goods and services

5) Sometimes websites and services are categorized in terms of content, audience focus, and regulations

6) The internet constitutes powerful, cost effective communication tool that is of a low-cost medium for promoting products

7) Companies seek e-commerce transactions with customers on a worldwide basis
- Amazon was successful in this area as it has become from a book-retailing store to moving on in broader products

8) Some companies may have a platform to sell products online, yet they don't do it due to only it being promotional and informational web site and have its own offline retail distribution channels
- Lack infrastructure of processing individual orders
- May cost millions to establish e-commerce website
- Other decisions may forgo the website retail

- Proctor and gamble utilizes the internet for promotional branding and information sharing as a strategy
1) There are new breeds of interactive advertising agencies that emerged to help companies have their website offerings fully running in different countries
- These either can be independent or affiliated agency holding companies
- Whether Web development is in-house or out-sourced there are some issues that need to be addressed (Domains, arranging payment, localizing sites, privacy policies, and distribution systems)

2) When going for different countries, you have to register your website for a specific countries domain
- Makes sense considering shoppers wants to shop with their own currency and with their own language = view more pages and more purchases
- The registration varies as some require established legal entity to avoid Cybersquatting: registering a particular domain name with a purpose of reselling the domain to the company that should rightfully use it

3) This requires understanding the country due to some have low credit/debit card use so implement other forms of payment
- Also think about fraud too (add other security measures or have people "buy" online and have payment due once at the store

4) Another reason to have domains registered in different countries is due to difference in cultures, customs and more
- Logos and elements of brand identity should be included with adjustments to color preferences and meaning differences

5) Privacy is a big issue (Specially the EU) where some countries limit on how much personal information a company is allowed to have.
- The EU justice commissioner announced overhaul of EU's data
(Stating that citizens can ask for data to be deleted)
- US on the other is reluctant to have things like this due to 1st amendment and national security concerns

6) As onlines sales increase due to international sales, it may be easier to establish local warehouse to lower costs
- Sales tax for us is also a thing to worry about for us companies
- Free shipping or free-returns and money back guarantee
1) It is when you allow your voice to be digitalized and broken into data packets that can be transmitted over the internet and then converted back to normal speech
- If the line is between to VoIp, it byspasses landlines
- If the phone line is to a conventional phone it must switch from internet to the landline
- There are two different landlines for residence and business - While it only accounts for a small percentage of global calls, it can still be disruptive innovation that will upset the telecommunications industry

1) As Digitalization for books and Newspapers become a reality, there have been business that do physical print books and newspapers either going out of business/ leaving the physical space/ or filing for bankruptcy
- Now most go to digital book stores and use of tablets
2) The best marketplace opportunity for this is Colleges and Universities
- Students could get the benefit of this by cutting prices in half, not carrying the books, you will use same functionality of taking note and highlighting for real life to digital
- Also publishers can offer subscription services so you can get more than one book for your classes
3) This comes at a cost with digital pirating the books but there are three arguments
- Authors want a cut from their protected work
- It can bring in new customers
- It is not worth the effort

1) Karolina Kurkova dress (With IBMs help) created a cognitive dress where if people tweeted about the Met gala the dress changes colors
- the tipping point wear technology and clothes can converge (Google and child company of Levis pair up for cycling jackets