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change has resulted from technology that has information at one particular store. A
brought down the cost of collecting and complete search of all offerings would be
disseminating information about consumers extremely expensive, time-consuming and
and products. Evans and Wurster (1999) practically impossible. Instead consumers rely
describe navigation as the process through on product suppliers and retailers to aid them
which shoppers collect information about in the search. This allows the suppliers and
products. In the physical world, a shopper providers to use the consumers’ cost-of-
who wants to buy something has to manually search as a competitive advantage. However,
sift through the millions of choices. This on the Internet, consumers can search much
usually requires a shopper to travel to a store more comprehensively and at virtually no
and inspect the products. Unless they want to cost. Suppliers and retailers must realize that
travel to various stores, they are limited to the product information can be delivered to
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E-commerce marketing strategies: a framework and case analysis Logistics Information Management
Eric Allen and Jerry Fjermestad Volume 14 . Number 1/2 . 2001 . 14±23
The Internet and Global reach Standard pricing Global branding Understanding the
international marketing Market makers global consumers
(Klein and Quelch, 1996)
Making business sense of Tool for developing Companies can skip Links companies
the Internet (Gosh, 1998) and delivering new other players in an directly to customers,
products and services industry value chain suppliers, and other
to customers Companies are able interested parties
to dominate the
electronic channel of
an entire industry or
segment, control
access to customers,
and set business rules
consumers by a third party. Indeed, pure reviewed addressed place. Klein and Quelch
navigators such as Yahoo! have already (1996) discuss the global reach of the Internet
become major players in this business (Evans in creating a larger marketplace and the
and Wurster,1999). strong growth of a network’s utility based on
The Internet can also serve as a platform for Metcalf’s law. Evans and Wurster (1999)
new product innovations. Companies can use discuss reach, the number of eyeballs that
the direct access to consumers to collect view a Web site. They claim that reach is the
information that will help them better develop most visible difference between e-commerce
products to meet the consumers’ needs. For and the physical world.
international companies this can provide The Internet will allow organizations to skip
adaptations and customizations for local over parts of the value chain. Gosh (1998)
markets (Klein and Quelch, 1996) or create discussed how the Internet could be used to
niche products. Companies can also leverage pirate the value chain. Examples most often
their reach to consumers to sell advertising involve marketing the product on the Internet
during transactions (Gosh, 1998). in order to bypass the retailer. Computer
manufacturers such as Dell and Gateway
Place 2000 do this. UPS has a program to set up
For most companies the place aspects of the e-commerce sites for businesses that ship with
marketing mix involve marketing channels. them (Gosh, 1998). According to Evans and
Marketing channels can be defined as Wurster (1999), the navigational Web sites
interdependent organizations involved in the will allow small niche producers easier access
process of making a product or service to the markets. They will be able to skip over
available for use or consumption (Kotler, parts of the value chain that traditional
1991). suppliers have historically relied on for
Due to the size of its marketplace, the competitive advantage. Traditional suppliers
Internet will have the most profound effect on could respond to this by keeping their product
place in the marketing mix. E-commerce puts out of navigational Web sites to block their
the purchase decision anywhere a connection development. However, this strategy would
to the Internet exists. All of the frameworks be technically difficult and would only be
16
E-commerce marketing strategies: a framework and case analysis Logistics Information Management
Eric Allen and Jerry Fjermestad Volume 14 . Number 1/2 . 2001 . 14±23
Kalakota, R. and Whinston, A.B. (1997), Electronic Munarriz, R.A. (1999), ``The online grocer invasion’’.
Commerce: A Manager’s Guide, Addison-Wesley, http://www.fool.com/specials/1999/
Reading, MA. sp991201groceries.htm? ref=yhoolnk, Fool.com, 1
Kane, M. (1999), ``Registers are ringing online’’. http:// December.
dailynews.yahoo.com/h/zd/19991207/tc/ Rayport, J.F. and Sviokla, J.J. (1994), ``Managing in the
19991207043.html, ZDNet/Yahoo! News marketspace’’, Harvard Business Review,
November, pp. 141-50.
Technology Headlines, December 7, 1999.
Reuters, Judge Grants Injunction against (1999).
Klein, L. and Quelch, J.A. (1996), ``The Internet and
barnesandnoble.co m ± http://dailynews.yahoo.com/
international marketing’’, Sloan Management
h/nm/19991203/wr/bn_injunction_2.html , Yahoo,
Review, Vol. 37 No. 3, pp. 60-75. December 3.
Kotler, P. (1991), Marketing Management: Analysis, Sealy, P. (1999), ``How e-commerce will trump brand
Planning, Implementation , & Control, Prentice-Hall, management’’, Harvard Business Review, July,
Englewood Cliffs, NJ. pp. 171-6.
Maruca, R.F. (1999), ``Retailing: confronting the Zwass, V. (1996), ``Electronic commerce: structures and
challenges that face bricks-and-mortar stores’’, issues’’, International Journal of Electronic
Harvard Business Review, July, pp. 159-68. Commerce, Vol. 1 No. 1, pp. 3-23.
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