"The advertising in electronic commerce"

Résumé du document

E-commerce has the potential to change the business environment. Its leads to the formation of different intermediaries, new products, new markets, and new business-consumer relationships, as well as new channels for diffusing knowledge and interacting in the workplace. It is because of this increasing importance, that e-commerce now needs to have its own marketing plan, and its own advertising machinery like other channels of distribution. This essay will deal with advertising with special reference to its role in e-commerce. In the first part, I will explain how advertising functions on the other channels of distribution. In the second part I will describe the role of advertising in the context of e-commerce, while detailing its methods, its strategies and its results. To conclude, I will compare both methods of advertizing and explore whether the Internet the best available channel for advertising.

Extraits

[...] The Internet as an advertising medium is no exception to this. Companies still expect the same behavior from consumers especially brand loyalty. But on the net this is not so easy The advertising on internet Overview What exactly is e-commerce? It's an example of one of the many buzzwords that are used concerning the Internet that no one really knows the definition. E-commerce refers to selling, advertising and marketing products, all done over the Internet. In other words, the e-commerce allows concluding an agreement (services or goods) in an electronic form (without any concrete support) thanks to an interactive communication. [...]

[...] It provides a platform for internal and external communication. Now lots of companies are aware of its importance and developing their own web advertise Advertising methods Like in the other channels of distribution, there are some particular advertising methods on the web. The major methods used for advertisements are: banners This kind of advertising is the most commonly used form of advertising on the Internet. Generally, a banner contains a short text or graphical message to promote a product. There are two types of banners: Keyword banners appear when a predetermined word is queried from the search engine. [...]

[...] They weren't big posters saying Clinique online” or some discounts. In fact, the online effort has helped to grab consumers who don't shop in department stores, without stealing customers who do. (The Wall Street journal/ November 12th 1998) Conclusion To conclude, we can say that with the drawn of the Internet has come many new advertising opportunities. Now advertisers need to exploit these opportunities without forget the traditional media. The end of traditional media in advertising is not for today. [...]

[...] Undoubtedly, the quantity of e-mail that consumer receive is exploding. According to a study by Jupiter Communications, messages per consumer will increase from 1.166 per user per year in 1998 to 1.606 per user per year by 2002. In light of this, marketers employing e-mail must take a long-term view and work toward the goal of motivating consumers to continue to open and read messages they receive. This is especially important as even now nearly one-third of consumers read e-mail only from senders with whom they have a relationship. [...]

[...] Also “forced advertising” marketing strategy is used, which means customers are forced to see it. The disadvantages are high overall cost. If a company demands a successful marketing campaign, it will need to allocate a large percent of the advertising budget to acquire a high volume of CPM. In addition, one of the major drawbacks of using banners is that limited information is allowed. That's why advertisers need to think of a creative but short message attract viewers. The most common forms of placing banner advertising on the Internet on others' web sites are: - Banner Swapping, means that company A agrees to display a banner of company B in exchange for company B displaying company A's ad. [...]