• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Get the best out of B2C.

Extracts from this document...


TABLE OF CONTENT GET THE BEST OUT OF B2C 2 PREFACE 2 GENERAL INTRODUCTION TO B2C 2 COMPANY BRIEF 3 BUSINESS MODEL 4 VALUE CLUSTER 5 CUSTOMER INTERFACE 8 KEY FACTORS TO SUCCESS 10 CONCLUSION: 10 NOTES AND REFERENCE: 12 GET THE BEST OUT OF B2C Preface Over the last few years, many words have come into our vocabulary: e-mail, www, dotcom, Internet, e-commerce, e-business, browser, etc. All these new terms have one thing in common, belonging to the new economy --- e-commerce --- technology-mediated exchanges between parities (individuals, organizations, or both) as well as the electronically based intra- or inter-organizational activities that facilitate such exchangesO1. The Internet has brought along new challenges for companies around the world. Never before has it been easier for a company to find customers for the products it is selling, or for customers to find the company. The Internet has also brought along many new companies who understand the possibilities that the new economy has to offer. It is moving fast, no doubt about that, but where is it going and how will it end? In this report, I will compare and discuss the B2C model of the 2 chosen companies, who are dealing with computer hardware, TigerDirect (www.tigerdirect.com) and Logitech (www.logitech.com). Looking at their e-commerce strategy, business models and customer interface, I will try to find out their key factors of being a successful dot.com company. General Introduction to B2C There are 4 distinct categories can be identified O2: business-to-business, business-to-consumer, consumer-to-consumer, and consumer-to-business (Figure 2.1) While the term e-commerce refers to all online transactions, B2C stands for "business-to-consumer" and applies to any business or organization that sells its products or services to consumers over the Internet for his/her own use. A study by the consulting firm the Boston Group pegged the 1999 B2C volume at $33.1 billion and estimated it almost doubled to $61 billion in 2000 O3; equally important is the finding that 85 percent of Internet users are also Internet shoppers O4. ...read more.


It aims to maintain strong holding of customer loyalty in long-term. Furthermore, constant products innovation keeps its web page remaining highly attractive to those Logitech fans. 3. The rationale for delivering benefit package. How can a firm beat his/her competitors? In contrast to segment choice and benefits, this step focuses on factors inside the firm (or with partners) that lead to the superior delivery of targeted benefits. The key issue is whether these unique capabilities can be linked directly to the core benefit or benefits that form the value proposition O13. TigerDirect build its way to success though the following aspects O14: * Use combination of Internet marketing, relationship marketing and inbound catalog sales to offer more than 40,000 products to its two million customers. Through its Be Free-powered partner marketing program, TigerDirect cost-effectively acquires new online customers and drives significant sales to its web catalog at www.TigerDirect.com * ?Rely solely on grassroots and word-of-mouth advertising to promote its program. Through Be Free's robust partner recruitment initiatives, TigerDirect.com has experienced a significant increase in the number of marketing partners recruited into its sales channel. In fact, 30% of its affiliate partners were recruited by Be Free's FastApp recruiting tool alone * ?In addition to the standard BFAST partner marketing service, TigerDirect.com uses Be Free's Auto-Merchandiser technology to automatically push dynamic promotions out through its online marketing partners and optimize the rotation of these promotions to help push higher margin items and thus, generate more profitable sales. This feature allows TigerDirect.com to see a higher ROI for its partner-marketing program TigerDirect.com has experienced a 400% percent increase in web-based sales over the last year; its performance-based partner marketing program contributes a large portion of this increase. On the other hand, as an extremely successful company in the PC hardware market, Logitech.com aims to offer the outstanding products that a consumer is looking for, it maintains a quite high-level standard, as said by Logitech chief financial officer Kristen Onken, "We're our own worst enemy, because nothing meets the standards we set for ourselves. ...read more.


Hang out in the newsgroups and in customer discussion forums may help > Order delivery --- Assuming that product is physical and not digitally downloadable, web fulfillments will also handle delivery, or choose to directly engage a conventional courier service like FedEx or DHL. As provided by both of the 2 above websites, one of the most attractive features that you can provide for your online customers in this space is online order tracking. Enabling customers to find out where their parcel is and when it will be delivered is a no-brainer for a company already providing online ordering facilities. Another point is to think about the delivery options that can be offered to end-users; both expensive next-day delivery and less costly, longer delivery periods should be available so to maintain customers for whom immediate fulfillment is a low priority. Conclusion: In a whole, after overview of the currently on-line B2C business, we may find that the major challenges of B2C lie in O19: * Getting browsers to buy things - your e-commerce site cannot live on traffic alone. Getting visitors to the site is only half the battle. Whether they buy something is what determines whether you win. The so-called conversion rate for B2C e-commerce sites is still fairly low (Boston-based Yankee Group said in November 2000 that the average rate was 1 percent.). Some ways to boost your conversion rate include improving navigation, simplifying checkout process (such as one-step checkout and easily replaced passwords), and sending out e-mails with special offers * Building customer loyalty - with so many sites out there, how can you build a strong relationship with customers? Here are some tips: 1. Focus on personalization: Wide arrays of software packages are available to help e-commerce sites create unique boutiques that target specific customers. For example, American Airlines has personalized its website so that business fliers view it as a business airline and leisure travelers see it as a vacation site. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Blue Nile pestel analysis. Blue Nile is a publicly traded company. The company was ...

    good taste, quality, and it confers status on both the person who gives it and the person who is wearing the jewelry. As mentioned before tiffany's offers lower priced jewelry so they can appeal to every income level and cover every aspect of the jewelry industry.

  2. Marketing Dissertation. An investigation of Celebrity Endorsement, with particular focus on the long-term ...

    "I'm not being funny, what's he got to do with washing up liquid. Would you ever imagine David Beckham going to wash up a dish?... it is just a false image of him." NB, 24 "You would never see him washing up."

  1. This study will investigate, discuss and analyse the reasons behind consumer purchases of supermarket ...

    of J.Sainsbury's customers had indicated a strong level of satisfaction for the stores own brands. This suggests that supermarket own brands are increasingly being perceived by customers as being of equal standing relative to manufacturer brands in terms of satisfaction.

  2. Chapter Notes on Marketing Management by Philip Kotler 10th Edition

    Partnership marketing: the company works continuously with the customer to discover ways to perform better. There are also certain marketing tools which can be used for added customer satisfaction - Adding financial benefits - through frequency marketing programs and club marketing programs.

  1. Title: Analyse and investigate consumer responses towards Internet shopping and the

    they investigated four factors that impact on online shoppers. The factors are Website design, website fulfilment, customer service and website security and privacy. They suggested consumers have different views about website design and reliability of the website but they all have different opinion about website securities this indicates that security issues and privacy issues are important to online buyers.

  2. Analysis of an Online Business - Amazon

    Karevonen and Parkkienen (2001) indicated online retailers using real photographs rather than cartoon to display their product creates more consumer confidence and trustworthiness of the site however criticism from Ligtner (2003) reported too many graphics can also damage the professionalism of the site. Criticism from Jarvenpaa, Tractinsky and Saarinen (1999)

  1. Situation Analysis/Current Marketing Mix of Tiger Chocolate biscuit in Singapore

    a city or town while shooping centre is a group of retail businesses planned, developed, owned, and managed as a unit (Kotler et al. 2008, 409) Certainly, consumer cannot buy Kraft Tiger directly from the company, because the company has choosed indirect marketing channel for its distribution, which is retailling channel.

  2. Marketing Mix Report on Kraft Tiger Energy Choc Biscuits.

    price is greater than the product?s value, they will not buy the product (Kotler et al 2009, 349). The Producer of Kraft products must carefully to set their price, if they set the products overpriced, the quantity of demand for their product will decrease, because of that they must make an equilibrium price to prevent this situation.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work