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• Virtual or electronic mall – a web site that brings together different electronic retailers at a single virtual (online) location.. • Destination store – a retail store which the me[r]

Business-to-consumer Internet

Marketing

Week 13

Some Definitions

• Virtual or electronic mall – a web site that brings together different electronic retailers

at a single virtual (online) location

• Destination store – a retail store which the merchandise, selection, presentation,

pricing or other unique feature acts as a

magnet for customers

Internet Retail Market (IRM)

• Established retailers using the IRM strategically or tactically as a marketing tool

• Virtual merchants designing their operating format

to accommodate the demands of online trading

• Intermediaries who link Internet technology and retail suppliers with the consumer

• Manufacturers using the Internet to take their

goods direct to the consumer

A Model of Internet Retail

Market

Manufacturers Existing retailers Virtual merchants Intermediaries

Fixed location

distributor

Other distributors

Internet retail

Types of retail companies

• Those operating from fixed-location stores, such as department and convenience stores

• Non-store-based operations, such as

catalogue retailing and direct selling

• Internet retailing has rapidly emerged

emulating non-store-based operations

Components of IRM

• Online retailers

• Online consumers

• Online products

Informational Functions

• Product information

• Financial information

• Company information

• Educational information

• Press releases

• Recruitment information

Interactive Functions

• Marketing communication tool

• Direct communications

• Marketing research tool

• Sales channel

Factors influencing adopter

behavior

• Accessibility

• Costs

• New markets

• Technical considerations

• Logistics

Themes affecting retail adoption

of IRM

• Internal inhibitors and facilitators

– Appropriate products

– Resource availability

– Strategic vision

– Assessment strategy

• Environmental inhibitors and facilitators

– Competitive pressures

– Market for internet trade

– Technological considerations

• The Internet’s comparative advantage over existing retail channels

– Market development opportunities

– Technological capabilities

– Financial potential