Thought for the day People think e-commerce is

Thought for the day: ‘People think e-commerce is just people browsing, but there's more to it than that. More and more people are using programs and agents to shop for the best deal, and that's how they're going to be getting to your site’.

E-Commerce 4. 8

HWK: Reminder Read chapters 4. 7 – 4. 8 Take notes under the below headings (you don’t have to re-write the book just notes for your revision purposes and make sure you reach the ‘what you can do…. ’) And answer the grey box questions. • • Due 13 th of May 2011 4. 7 International marketing ‘what you can do…. ’ • Entry into international markets • Evaluate the opportunities and threats posed by entry into international markets • Analyse PEST issues of entering international markets 4. 8 E-commerce ‘what you can do…. ’ • Analyse the effect of e-commerce on the marketing mix of Business-to-customers (B 2 C) & Business-to-business (B 2 B) • Discuss the costs and benefits of e-commerce to firms and consumers.

Target Learning Objective Understand what is e-commerce Analyse the effect of e-commerce on the marketing mix. Discuss the costs and benefits of e-commerce to firms and consumers. Who? ALL 4 (AO 1) MOST 5 (AO 2 & 3) SOME 6 -7 (A 04) Keywords q. B 2 C q. B 2 B q. E-commerce q. Online presence q. Spam

Starter: What is it?

Starter: What is it? E-Commerce – means using electronic networks (primarily the internet) in the buying and selling of products. It can take two main forms: business-to-business (B 2 B) or business-to-customers (B 2 C) The origin of e-commerce

Pg 222 Coursework companion What is the difference between B 2 B and B 2 C B 2 B • Involves one organisation dealing with another organisation • Less visible to the general public • B 2 B is larger and more important to businesses than B 2 C • Different agenda in marketing. • Less transactions than B 2 B • Smaller and less important market than B 2 B • Sells to the end- user

• E-Commerce • Old: made 2000

Pg 599 - 602 Hoag E-Commerce Advantages Business Disadvantages Revenue Customer base Competition response Operation costs Cost of production Reduce Barriers to entry Set-up costs Running cost Lack of after sales care may harm image Job loss Fraudulent trade Another channel of distribution Consumer Choice and convenience Sometimes time consuming Quicker Information overload Another channel for consuming Fraudulent trade Transport cost ( disabilities) Time lag between purchase and delivery Spam Difficult to return faulty goods Lack of after sales care

Four P’s • All parts of the marketing mix are affected by e-commerce; some of these benefit business, others benefit consumers. TASK: On the computer (using the handout) Investigate the four ‘P’s in the context of ecommerce Pg 222 -223 Coursework companion Pg 603 - 607 Hoag

Activity q. In pairs q. Discuss Print two copies of the Four P Notes. Keep one separate (the original). The other notes… cut the boxes. Place on table, mixed. Re-sort on to template. Compare to original. Are there any anomalies? (did your peer identify something you didn’t? ) Add to your original notes (pen)

Activity q. In pairs q. Discuss Chose a business that sells its products primarily using e-commerce. 1. How has e-commerce affected different parts of the organisations marketing Mix? 2. How do you think future developments will change the way this business and others market their products.

Activity q. Individually q. Peer assess & Discuss Page 224 Course Companion Exam style questions SL Q. 4 HL Q. 2 HL Q. 4

Activity q. Individually q. Peer assess & Discuss Peer Assess

Activity q. In group q. Discuss q. Note E-Commerce and Strategy. Pg 608 In Fours Read together and decide which are the key points to pull out. Note.

Activity q. In group q. Discuss q. Note Pre-release for Mock Exam From now on…. . Internal Assessment