Choosing+Customers+for+E-Business

===Many years ago, businesses believed that if they offered good products and services, customers would find them and their companies would succeed. We now know that it takes more than a good product to be successful. As consumers choose among all of the available products and services, they will select those that best meet their needs. A business must be able to offer a valuable marketing mix. The mix must exceed what customers can obtain from other businesses offering the same product. In order to do that, businesses must gather information about potential customers and use the information to understand the customers as well as possible. Then, they must target groups of customers that the business can serve effectively. Finally, they must develop products and services that are superior to those offered by competitors. ===

**Business Customers or Final Customers **
===Businesses and final consumers may purchase the same products but for different reasons and uses. A business chooses an automobile that is efficient and comfortable for its salespeople. A family chooses an automobile with available space to transport children and their friends to school, soccer games, and dance lessons. A retailer orders hundreds of computers from a manufacturer to sell in its stores. A college student orders a laptop from the same manufacturer’s web site, but it will be used for schoolwork, personal entertainment, and communication. The products may be the same, but the quantities ordered and the uses of the products will be quite different. ===

===**Final consumers ** make purchases primarily for their own personal consumption. **Business consumers** purchase products for use in their business operations for resale. Business purchasers use a rational basis for their decisions. **Rational decisions** are based on facts and logic. Final consumers are likely to be more emotional when making purchase decisions. **Emotional decisions** are based on feelings, beliefs, and attitudes. A business may be concerned about priced, consistent quality, and the ability of the seller to quickly deliver the quantity ordered. An individual consumer maybe more concerned about image, convenience, and uniqueness of the products purchased. ===

===The size of the e-commerce business-to-business market is much larger than the business-to-consumer market. Many businesses are comfortable with making their routine purchases online. However, expensive and unique purchases most likely will still be made face to face. While the online consumer market is smaller, all types of consumer products are purchased using the Web. E-commerce businesses decide whether their products are sold to final consumer, business consumers, or both. If the decision is made to serve both, a different marketing mix will be required for each group. Often, a separate web site and purchasing process will be developed for each type of customer. ===

**MARKETING TO INNOVATORS **
===There is much room for growth in e-commerce. Statistics suggest that most businesses and individual consumers are not attracted to the Internet as a purchasing destination. ===

===Who should e-commerce businesses target? There are certain types of consumers who are likely to be Internet customers. They are people who are comfortable with technology and innovation. An **innovation** is a new and unique product, process, or idea. Most people are reluctant to try something that is totally new. However, a small percentage of the population is considered to be innovators. Innovators want to be the first to try new products. When the public could access the Internet in the early 1990s, innovators were the first to try it. When businesses began selling products online, innovators were their first customers. ===

===Innovators have characteristics that differentiate them from other consumers. These traits make it possible for businesses to identify them. Innovators are generally younger and more educated and have a higher income level than others. They are also considered social leaders and enjoy taking risks. ===

===If a business uses the Internet to attract consumer interest and to provide information to aid decision making, its target market can include all Internet users. However, if the business expects consumers to use the Internet to purchase its products, marketing efforts should be directed toward innovators. ===