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4 Web - site online store. Pricing and advertising in e-commerce

Lecture



Internet pricing. Web site as the basis of online business. The main attributes of the web - shop. Evaluation of the economic efficiency of web - representative offices. Internet advertising. Banner advertising.

Internet pricing.

Factors affecting the price level of a product or service:

1. The economic effect of consumers, resulting from the use of goods, services;

2. Assessment of the quality of goods, services and related services;

3. Analysis of the external to the enterprise environment: demand, market competition;

4. Determination of the lower and upper prices of goods and services;

5. Definition of the target market, segmentation;

6. Purpose of pricing;

7. Determination of the general pricing policy;

8. The choice of pricing method;

9. Determination of strategies for the promotion and distribution of goods by manufacturers;

10. The impact of the stage of the product life cycle on its price;

11. Planning and calculating the cost of development, production and sale of goods;

12. Formation of a system of discounts and benefits;

As an example, consider the economic - organizational model (EOM).

The price of goods is determined as a function of the following parameters:

,

where - the base price of the product;

- vector of quality indicators of the i-th product;

- vector of quality indicators of the i-th product;

- generalized assessments of strategies for the promotion and distribution of firms producing products and their analogues;

C - the cost of the product;

- demand parameters;

- consumer spending on the purchase and use of the i-th product;

- the number of considered analogues of the consumed product;

- market share of the i-th product;

Indicators for evaluating the effectiveness of electronic stores can be divided into three main groups:

1. indicators for assessing the effectiveness of the creation

2. performance evaluation indicators

3. business valuation indicators

The main indicators of the first group are:

1. starting investment

2. operational costs associated with ensuring the normal continuous operation of the electronic store

3. the ratio of investment and operating costs

4. indicators for evaluating investment projects or business projects (net present value, profitability index, rate of return)

Start-up investments can be made at one time or over a period of time (several years).

The composition of operating costs usually include: costs associated with the operation of the technical part of the electronic system; remuneration of staff (operators, programmers; commodity scientists); costs (losses), etc.

Indicators of the second group, designed to assess the performance of an electronic store, are divided into current and final indicators.

Web site as the basis of online business

The main functions of the Internet-shop: customer service, processing orders, making payments, as well as collecting and analyzing various statistical components. The typical structure of the Internet - shop is presented in Fig.

4 Web - site online store.  Pricing and advertising in e-commerce

Figure 4. Typical online store layout

Where, the web server distributes incoming requests, makes access control. Application server - manages the work of the entire system, in particular, business logic. DBMS - carries out the storage and processing of data about goods, customers, orders, etc.

The main stages of creating an online store are shown in Fig.

4 Web - site online store.  Pricing and advertising in e-commerce

One of the key stages in the development of an online store is its advertising (or “promotion”) in the network. This issue is multifaceted and there are many options for its implementation. In this case, the main point is the choice of the name of the site and its registration, while for further "good fortune" the host must be primary! Other Highlights based on the author’s experience are:

a) registration on search engines, in particular on Yandex (www.webmaster.yandex.ru), Google, Rambler, GoGo.

b) Registration in the relevant data catalogs and other major thematic sites.

c) Mandatory installation of a visitor counter, for example http://top.mail.ru, http://top100.rambler.ru and others.

d) registration in banner exchange networks.

These 4 points are required. Further, it all depends on the activity and creativity of the creator of the online store. With sufficient financial resources for advertising, you can use paid contextual advertising from Google, Yandex, etc.

A typical scheme of the Internet - store database is presented in Fig.

The main attributes of the web - shop

The main attributes of web-stores and their evaluation by customers on a five-point scale:

  • appearance (1.65);
  • page navigation (2.51);
  • attention to the buyer (2.67);
  • easy return to the start page (2.82);
  • service support (2.86);
  • availability of product information (2.98);
  • price (3.05);
  • timeliness of delivery (3.23);
  • stock availability (3.28);
  • range of goods (3.30).

Basic requirements for the parameters of the electronic store:

1) The formulation of the purposes for which a web site is created.

2) Establishment of a target market, or its segment, for which this web site is intended.

3) Development of the content of web - pages.

4) Design web pages.

5) Choosing the most successful location of the web site on the Internet.

6) Assigning a sounding name to a web site.

7) Development of a method for evaluating the effectiveness of the creation and operation of an electronic store.

Evaluation of the economic efficiency of Web sites and Web - representations

Internet advertising.

At the end of 2009, the AdAge publication compiled a list of the most expensive Internet sites in terms of placing advertisements on them. Here is an excerpt:

“... The list begins with the portal Yahoo !, the daily posting on the main page of which costs 400 thousand dollars. Next comes CBS Sports, where a thousand ad impressions cost $ 70. The same thousand impressions on the Hulu video portal cost at least $ 35.

The Daily Candy website for guidebooks and information about cities costs $ 70 per day for advertising in thousands of emails. Portal Aol allows you to brand the main page for an amount of from 500 to 700 thousand dollars a day. YouTube offers video hosting on the main page for 400 thousand dollars. The video is included in the price.

In the ABC.com player, a thousand ad impressions are advertisers worth at least $ 45. One entry in the KimKardashian star microblogging, for which 2.7 million people have subscribed, will cost 10 thousand dollars. In turn, one thousand ads in the video player of The Wall Street Journal will cost $ 75-100 .... "

Banner advertising

Banner advertising on the Internet is one of the most effective ways of advertising companies and their Internet - representative offices. A banner (from the English words banner - a flag, a transporant) represents a small graphic object (usually a * .gif or * .jpg file, as well as a flash movie) placed on various pages of the site. Flash technology allows you to add sound effects. Banner can be both static and dynamic. When you click on the banner, the link indicated in the banner is clicked. Banner formats are usually: 88x31, 100x100 and 468x60 pixels.

Evaluation of the effectiveness of the banner is carried out in one of two ways:

A) By the number of transitions on the banner.

B) By the number of banner impressions.

Literature:

Questions for self-test:

1. What is the difference between gif format and jpg?

2. Think over the parameters of the software service support.

3. What are the alternatives to the EOM?

4. What is net present value?

5. What is a promotion strategy?


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Networked Economy (E-Commerce)

Terms: Networked Economy (E-Commerce)