E-commerce
Week 1 – e-commerce, new business models, customer journey
E-commerce is trading in products or services using computer network, such as the internet
(marketing, sales department)
E- commerce is part of E-business, this is the total part.
Different types of E-commerce:
• B2B
• B2C
• C2B
• C2C
Impact of the Internet on the value chain
Disintermediation: taking out services like wholesaler, or retailer.
Reintermediation: other companies or platforms taking over the services from c to b or other
way around
Different costs structures online/offline
• Although start-up costs for a pure online player are generally much lower, the variable
costs are often higher
• This means that without significant scale advantages it remains hard for a pure player to
reach high levels of profitability.
Amazon’s Flywheel Strategy
Online there is often only one big player left standing.
Amazon’s Flywheel Strategy:
, • Lots of offers so that customers can buy lots of products.
• Create a great customer experience (One click buy, Look Inside, Amazon Prime).
• Lots of visitors, traffic and buyers means that 3rd party sellers have no choice but to also
sell on the Amazon platform.
• Low cost structure (manage inventory risk, efficient delivery, manage returns
effectively, etc).
• Amazon can continue to expand their selection and continue to sell at lower prices.
E-commerce New Revenue Models
Traditional revenue model: pay per unit
Common Online Revenue Models
• Subscription
• Bait and Hook
• Freemium
• Advertising/ Affiliate
• Auction
• Brokerage
• Selling User Data
• Yield management
(Dynamic Pricing)
Prices change, when the demand is big, the price will go up. Dynamic prizing is all about demand.
Moving from Single to Omni Channel
• Single • Multiple touch- • Multiple touch points • One single intergrated
point acting acting as the same brand experience
touch-point brand • Single view of customer
independently
• Technical and • Single view of the leveraged in coordinated
Functional silos customer but and strategic ways.
functional silos. • Same message from every
• Multi channel: The owner of a plant shop starts a second sales channelstore,
onlinecustomer
with a is main
different name: Myplant.com. focus.
• Cross channel: Myplant.com is a huge success and the physical store now also carries the
name ‘MyPlant’. One brand, two channels.
• Omni channel: Now it is easy for the customer to walk by the brick & mortar store to
return a plant. Everything is conveniently connected to a single user-account. One on-going
customer experience across the many touchpoints.
,Definition: Customer Journey
A description of modern multichannel behavior as consumers use different media to select
suppliers, make purchases and gain customer support.
Why Map Out the Customer Journey?
• There is no more one-size fits all customer approach
• Transparancy of the Internet
• Customer Loyalty is fragile
• Recoginize all the Touchpoints (where the customer connects with your company)
Bijvoorbeeld bijna elke retailer wel loyaliteitsprogramma’s, spaar- of kortingsacties heeft om de
klant voor lange tijd aan zich te binden. Zo zie je dat retailers steeds beter worden in het
inspelen op de behoeften en wensen van de klant.
Merken die vasthouden aan deze aanpak zullen het op termijn afleggen tegen geïntegreerde
platforms die de klanten beter bedienen tijdens hun unieke klantreis. Waarom? Dat spreekt
vanzelf, elke klantreis is uniek. De enige weg om de klant echt goed te bedienen, is de context
volledig te begrijpen: van de eerste kennismaking met je product tot en met de bezorging
daarvan. En ja, de klantrelatie is dus waar het allemaal om te doen is.
Data / information
Information in raw or unorganized form
(such as alphabets, numbers, or symbols) that refer to, or represent, conditions, ideas, or objects
Data is limitless and present everywhere in the universe.
Data Use
• Solve complex scientifical/military/social/medical
problems
• Organising the financial markets
• Screening (& predict) behaviour of people
• Marketing and persuation (Chialdini)
What is an Algorithm?
• Designed step by step procedure to perform an operation
and which will lead to the sought result if followed
correctly.
• An algorithm produces the same output information
given the same input information, and several short
algorithms can be combined to perform complex tasks such as writing a computer
program.
• E.g. Cookbook recipe, diagnosis and solving routine.
Week 2 – digital marketing
Online Marketing
• SEM (SEO + SEA)
• Link building
• Affiliate Marketing
• Display Advertising
• E-mail Marketing
• Virals
• Games
• Social Media Marketing
• Inbound Marketing
• Content Marketing
• PR
, SEM: Search Engine Marketing
Search Engine Marketing (SEM) is a form of Internet marketing that involves the promotion
of websites by increasing their visibility in search engine results pages (SERPs) through
optimization and advertising.
Search Engine Marketing consists of two areas:
1. Search Engine Optimization (SEO)
• Search Engine Optimization (SEO) is the process of affecting the visibility of
a website or a web page in a search engine's unpaid results - often referred to as
"natural," "organic," or "earned" results.
• Web pages need to contain relevant keywords and keyword phrases.
• As ranking in the organic results is free of charge, it is an alternative to paid ranking.
2. Search Engine Advertising (SEA)
• Search Engine Advertising (SEA) also called search advertising and paid search
marketing is a method of placing online advertisements on Web pages that show
results from search engine queries.
• The paid links are shown once a user searches for the related keywords.
• The advertiser only pays when search engine users click on their ads.
Search Engine Advertising has three main goals:
• Get the most possible views (reach)
• Get the most possible clicks
• Get the highest conversion possible. This could be an information request, a sign-up,
or a sale.
SERP (The Search Engine Result Page)
A typical SERP. The goal is to rank as high as possible.
Why is SEM Important?
Week 1 – e-commerce, new business models, customer journey
E-commerce is trading in products or services using computer network, such as the internet
(marketing, sales department)
E- commerce is part of E-business, this is the total part.
Different types of E-commerce:
• B2B
• B2C
• C2B
• C2C
Impact of the Internet on the value chain
Disintermediation: taking out services like wholesaler, or retailer.
Reintermediation: other companies or platforms taking over the services from c to b or other
way around
Different costs structures online/offline
• Although start-up costs for a pure online player are generally much lower, the variable
costs are often higher
• This means that without significant scale advantages it remains hard for a pure player to
reach high levels of profitability.
Amazon’s Flywheel Strategy
Online there is often only one big player left standing.
Amazon’s Flywheel Strategy:
, • Lots of offers so that customers can buy lots of products.
• Create a great customer experience (One click buy, Look Inside, Amazon Prime).
• Lots of visitors, traffic and buyers means that 3rd party sellers have no choice but to also
sell on the Amazon platform.
• Low cost structure (manage inventory risk, efficient delivery, manage returns
effectively, etc).
• Amazon can continue to expand their selection and continue to sell at lower prices.
E-commerce New Revenue Models
Traditional revenue model: pay per unit
Common Online Revenue Models
• Subscription
• Bait and Hook
• Freemium
• Advertising/ Affiliate
• Auction
• Brokerage
• Selling User Data
• Yield management
(Dynamic Pricing)
Prices change, when the demand is big, the price will go up. Dynamic prizing is all about demand.
Moving from Single to Omni Channel
• Single • Multiple touch- • Multiple touch points • One single intergrated
point acting acting as the same brand experience
touch-point brand • Single view of customer
independently
• Technical and • Single view of the leveraged in coordinated
Functional silos customer but and strategic ways.
functional silos. • Same message from every
• Multi channel: The owner of a plant shop starts a second sales channelstore,
onlinecustomer
with a is main
different name: Myplant.com. focus.
• Cross channel: Myplant.com is a huge success and the physical store now also carries the
name ‘MyPlant’. One brand, two channels.
• Omni channel: Now it is easy for the customer to walk by the brick & mortar store to
return a plant. Everything is conveniently connected to a single user-account. One on-going
customer experience across the many touchpoints.
,Definition: Customer Journey
A description of modern multichannel behavior as consumers use different media to select
suppliers, make purchases and gain customer support.
Why Map Out the Customer Journey?
• There is no more one-size fits all customer approach
• Transparancy of the Internet
• Customer Loyalty is fragile
• Recoginize all the Touchpoints (where the customer connects with your company)
Bijvoorbeeld bijna elke retailer wel loyaliteitsprogramma’s, spaar- of kortingsacties heeft om de
klant voor lange tijd aan zich te binden. Zo zie je dat retailers steeds beter worden in het
inspelen op de behoeften en wensen van de klant.
Merken die vasthouden aan deze aanpak zullen het op termijn afleggen tegen geïntegreerde
platforms die de klanten beter bedienen tijdens hun unieke klantreis. Waarom? Dat spreekt
vanzelf, elke klantreis is uniek. De enige weg om de klant echt goed te bedienen, is de context
volledig te begrijpen: van de eerste kennismaking met je product tot en met de bezorging
daarvan. En ja, de klantrelatie is dus waar het allemaal om te doen is.
Data / information
Information in raw or unorganized form
(such as alphabets, numbers, or symbols) that refer to, or represent, conditions, ideas, or objects
Data is limitless and present everywhere in the universe.
Data Use
• Solve complex scientifical/military/social/medical
problems
• Organising the financial markets
• Screening (& predict) behaviour of people
• Marketing and persuation (Chialdini)
What is an Algorithm?
• Designed step by step procedure to perform an operation
and which will lead to the sought result if followed
correctly.
• An algorithm produces the same output information
given the same input information, and several short
algorithms can be combined to perform complex tasks such as writing a computer
program.
• E.g. Cookbook recipe, diagnosis and solving routine.
Week 2 – digital marketing
Online Marketing
• SEM (SEO + SEA)
• Link building
• Affiliate Marketing
• Display Advertising
• E-mail Marketing
• Virals
• Games
• Social Media Marketing
• Inbound Marketing
• Content Marketing
• PR
, SEM: Search Engine Marketing
Search Engine Marketing (SEM) is a form of Internet marketing that involves the promotion
of websites by increasing their visibility in search engine results pages (SERPs) through
optimization and advertising.
Search Engine Marketing consists of two areas:
1. Search Engine Optimization (SEO)
• Search Engine Optimization (SEO) is the process of affecting the visibility of
a website or a web page in a search engine's unpaid results - often referred to as
"natural," "organic," or "earned" results.
• Web pages need to contain relevant keywords and keyword phrases.
• As ranking in the organic results is free of charge, it is an alternative to paid ranking.
2. Search Engine Advertising (SEA)
• Search Engine Advertising (SEA) also called search advertising and paid search
marketing is a method of placing online advertisements on Web pages that show
results from search engine queries.
• The paid links are shown once a user searches for the related keywords.
• The advertiser only pays when search engine users click on their ads.
Search Engine Advertising has three main goals:
• Get the most possible views (reach)
• Get the most possible clicks
• Get the highest conversion possible. This could be an information request, a sign-up,
or a sale.
SERP (The Search Engine Result Page)
A typical SERP. The goal is to rank as high as possible.
Why is SEM Important?
