Marketing communications tool– the Internet is frequently used as an advertising channel.
Traditional advertising channels such as broadcasting and print media enable a one-to-
many dialogue based on communications theory (Schramm, 1955) between senders and
receivers. The communication process is normally constrained by time, namely the
speed of response of participants, but communication can become ‘conversations at
electronic speeds’ if conducted via interactive services such as the Internet (Fill, 1999).
Direct communication– as an interactive channel for direct communication and data
exchange the Internet enables focused targeting and segmentation opportunities for
more closely monitoring consumer behaviour. E-mail provides a direct non-intrusive
means of communication between firm and customer.
Online communities– are also developing on the web and facilitating interaction
between individuals and companies. Car manufactures such as Citroen and
Volkswagen support many enthusiasts’ sites in order to reinforce the emotional bonds
between the product and the consumer via the web.
Marketing research tool– the Internet’s interactivity facilitates the collection of con-
sumer data, providing the opportunity to gather personal information from online
consumers while they browse through web sites, complete online questionnaires and
respond to e-mails.
Sales channel– the selling of goods and services online can take several different
forms: the order is placed online while the delivery and payment are made through
real-world channels; online ordering where the delivery of goods is required in the
real world and the payment facility has options online or offline; the total process,
namely the order, payment and delivery of the product occurs via the Internet.In summary, businesses may choose to utilise the Internet and the web in a number of
different ways to communicate and interact with their online consumers. The particular
methods that they adopt to build an online brand may vary, from just providing infor-
mation to online transactions including ordering and payment for goods and services.
Issues relating to how e-retailers are using information and interactive content to build
online brands is discussed in more detail in Case Study 10.
Who are the e-retailers and what are they selling?
According to Doherty et al. (1999, 2003), there are a number of characteristics of a busi-
ness that are likely to determine the extent to which retailers have adopted the Internet,
the online format they might choose and the products they sell. The characteristics
include the following.
Size
Small and medium-sized retailersare increasingly adopting the Internet as a channel to
market (see Chapter 11). The advantages include access to a wider market previously inac-
cessible and low-cost advertising, but the disadvantages include medium-term financial risk
and scalability. Small-scale operations may be able to handle the picking and logistics due
to the small numbers involved but problems will arise when expansion is considered and
the need to sustain a larger operation becomes apparent. Indeed, it is large retailers(across
Europe) that have been quick to incorporate the Internet into their retail offer. Examples
are: in France, Carrefour (www.carrefour.fr), in Italy, Benetton (www.benetton.com), and in
Austria, Magnet online (www.magnet.at). However, the web offer varies considerably –
increasingly some retailers offer their entire range of goods and services via the Internet
while others present selected ranges of information content only.
E-RETAIL ACTIVITIES