Challenges Facing ECommerce Marketing

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ChallengesFacing E-CommerceMarketing
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Challenges Facing E-Commerce

• For some people computers still take too long to
  turn on.
• Longer than opening a book or making a phone
  call.
• The logic of consumers saving money through
  internet is often flawed.
• It costs money to buy a computer.
• Computers use electricity.
• Internet costs telephone charges and often other
  charges.
• Logic of reduced costs by selling through
  internet is often flawed.
• see next page.
• The electronic Marketplace, whilst global, is
  still relatively small. It needs to be bigger in
  order to make more buyers want to be a part of
  it.

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Conflicting Logics ?
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Conflicting Logics ? Amazon Solution
Christmas 2002 was Amazon.co.uk's busiest ever,
with over 6.2 million items ordered from November
1 through to Christmas. The busiest dispatch
day was December 17 when over 200,000 items were
sent from Amazon.co.uk's distribution centre in
Milton Keynes. Amazon.co.uk, January 24, 2003
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Conflicting Logics ? Amazon Solution
We continue to focus on offering customers the
best possible shopping experience through
lowering prices, increasing selection and
providing a site that's quick and easy to use.
Shipping charges can be one of the main
barriers to shopping on-line and with free UK
delivery now in place we're hoping that more
customers will try our service this Christmas.
Quite simply - if you're shopping elsewhere,
you could be wasting time and money. Robin
Terrell, Managing Director of Amazon.co.uk, Nov
4, 2002
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Conflicting Logics ? Amazon Solution
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Challenges Facing E-Commerce

• There is as yet insufficient evidence to support
  the value of the various forms of e-commerce.
• Would you spend a lot of money on involvement in
  a business if you have no idea how many and what
  sort of people will be aware of your business.
  At least in a city centre you can see the
  traffic of people ?
• The simplicity of e-commerce means that there
  are often too many competitors and therefore
  business is spread to thinly.
• Internet is not always the best source of
  information
• It is often quicker to get information by asking
  an expert than by searching on the internet (eg.
  travel agencies).
• Positive expectations lead to confidence which
  leads to investment and involvement by business
  and customers.
• Expectations are wobbly at present.

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Challenges Facing E-Commerce

• E-commerce businesses are often run by people
  who are inexperiences in the areas of
  business in which they are involved (eg boo.com
  ?)
• E-commerce is such a new industry that many
  major mistakes are inevitable as part of the
  learning experience.
• We learn by our mistakes and all great business
  ideas incur a risk. It is perhaps better to try
  and fail then to never try at all as long as the
  risk was reasonable and calculated.
• The Internet /world-wide-web contains so much
  unorganised information that information
  overload still often inhibits its efficient
  operation.

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Challenges Facing E-Commerce

• You cant touch things through internet
• You cant hold things through internet
• Your cant always clearly see things through
  internet
• You cant always test or try on things through
  internet
• E-commerce and Internet still do not contain
  enough sound, action or smell to excite the
  user.
• Internet / e-commerce is often stressfull /
  uncomfortable.
• Many people still cant imagine reading a
  computer on their laps before going to bed. You
  dot get a headache reading a book.
• Often and for many people, internet and
  e-commerce unfortunately lack the social element
  of traditional commerce.

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Challenges Facing E-Commerce

• E-commerce marketplaces often favour price
  rather than other dimensions of a product or
  service.
• E-commerce is still not very interactive
  presentations rather than discussions.
• Business to business entertainment is still
  effective and pleasurable and enables empathy,
  trust and loyalty elements to be included in the
  business relationship.
• E-shops often sell less (have less selection)
  than traditional shops
• Who knows how many customers e-commerce
  companies really have.
• How many times have you registered for a
  service, forgoten your password and then
  re-registered.
• How many times have you registered for a service
  more thsn once with different or
  false personal information.
• Italian Internet company Freedomland 20 of
  customers believed to exist only on
  paper, not in reality.

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Challenges Facing E-Commerce

• Customers have come to expect free information
  on the internet and are often unwilling to pay
  for information.
• How many times have you left a web site as soon
  as it asks for money.
• How many times have you purchased e-commerce
  services.
• Finding the right e-commerce site and then the
  right product often takes longer than going to a
  shop or service etc. in person.
• Many customers still do not trust Internet
  Security and Privacy
• No powerful, independent proof and certification
  yet exists.

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Requirements For Good E-Commerce
There are many more than can be described here
but some are

• E-Marketing is not a Lone Ranger (integrate
  with other marketing mix. ex Dell).
• Build Brands not just Internet Sites.
• Add Value, not just Alternatives.
• Prepare for the Future of Internet (eg. Mobile
  Internet) but also for Now (Short Visions
  Long Visions).
• Differentiate.
• Research and Develop (Overcome the limitations
  of e-commerce).
• Think big best (there may be only one winner),
  but spend wisely.

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Requirements For Good E-Commerce

• Think realistically.
• Look for free publicity (eg. news articles etc.)
• Direct Marketing Promotion (eg. e-mail
  marketing) as well as, if not more than
  Advertising.
• Tout a marketing partners services in messages
  to your companys existing clients.
  (Marketing News, AMA, Sept 2000, 1,16-17.)
• Partnership is Essential.
• Do not just do what the others do.
• Spread Risks
• Obtain a broadly experienced and educated
  workforce

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Requirements For Good E-Commerce

• WEB SITES
• Up-to-Date
• Realistic Technology Usage
• Operational (it works) and Efficient
• Fast
• Consistent (Image, Colour, Layout, Logic etc.)
• Clear, Simple, Uncluttered (eg. not too many
  scroll bars)
• Logical
• Safe and Secure
• Honest and Trustworthy
• Suitable for Laptops, small screens, mobile
  internet.
• Multi-Lingual
• Interactive (not essential but desirable)
• Local (eg. .fi or at least Finnish) this is
  related to security
• More ways to pay than just credit cards
• Careful with Passwords, people forget them

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Requirements For Good E-Commerce

• WEB SITES
• Easy to find site, info and products
• Easy to navigate
• Attractive, visually pleasant
• Friendly and Personal
• Perhaps Funny (but be careful)
• Test the site research customers opinions and
  potential customers.
• Perhaps Gimmicks (but be careful)
• Professional in Appearance
• Treat Customer as Relationship Customer
  (relationship building)
• Provide a Whole Service
• Target the Audiences needs (eg. Saga)