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Shaun aldis main powerpoint Shaun aldis main powerpoint Presentation Transcript

  • Shaun Aldis
  • Benefits of E-commerceGlobal MarketplaceIf a company is part of the global market, it means that is partof the global online shopping market. This means that a personin England could, for example, buy something from a companyin Australia.Some companies are not part of the global marketplace, then itmeans that it can only trade or sell to customers in its owncountry, reducing the amount of potential customers thecompany has. P2
  • Benefits of E-commerce 24/7 TradingIn a normal, offline business, there are closing hours andholidays for the employees so they can rest. This reduces theamount of time they are open, therefore this reduces theamount of customers to the company.Whereas an online business that has a website with E-commerce capabilities, can stay online and open for business24 hours 7 days a week. This greatly increases the amount ofcustomers and therefore the amount of revenue. P2
  • Benefits of E-commerceLow Start -up & Running CostsTo start up a regular business, you need a substantial amount of moneyand confidence to start up a business, it costs a lot to rent a premises andhire employees. Also there is a lot of risk involved in starting up a physicalpremises because unless you have good advertising technique’s, peoplemay not know about the business and slowly the business will becomebankruptAlthough an online business, has low start up costs because all that isneeded is a computer, and a website, it will costs extra to advertise. Plusthe amount of risk involved is less because it is cheaper so therefore thereis less to loose. P2
  • Benefits of E-commerceSearch FacilitiesA website may have a search function, this means that there isa bar that a customer can type into, that allows them to searchfor things on that website.By adding this simple function to a website it greatly increasesthe accessibility and user ability of website, this increases thespeed of which the website can make a sale, this in turnincreases the amount of sales I can do in an hour whichincreases the amount of revenue the business can make. P2
  • Benefits of E-commerceFluid PricingFluid pricing is the fall and drop of prices of goods depending on demand.For example, if a site is selling tickets to a concert and the demand is high, the pricewill go up.But if a company is selling tickets to an art show and the demand is low, then theprice will be lower.This is another way a company can maximise the amount of money they make, themore demand for something, the more money a company make. P2
  • Weaknesses of E-commerce& how to address thisConsumer TrustCustomer trust is basically what reputation a company has with its customers. Thiscan be increased or decreased by the quality of service or the goods supplied by abusiness, or by how customers are treated e.g. Customer services.In an online business rather than a physical store, this is harder to gain becausethere is no direct face-to-face contact between customer and seller.Because it is harder to gain customer trust a company may have less business inits early days until it gains a decent reputation. P2
  • Weaknesses of E-commerce& how to address thisLack of Human ContactAs stated before in the consumer trust area, an online business will have alack of human contact that you would get in a physical shop, so a customerhas to input their credit card details and part with their money withoutknowing anything about what they are buying and who they are buying itfrom.This means that an online company that isn’t well known, perhaps a new orsmall business, will have to work hard to gain the trust of their customers. P2
  • Weaknesses of E-commerce& how to address thisProduct Description ProblemsWhen a customer wants to buy something form an online website, they willgenerally not know a great deal about the product they wish to buy. So theyhave to rely on the information that is provided by the company. This couldbe potentially problematic if the company fails to provide an apt descriptionof the product, if they do, they will almost certainly loose a sale to anothercompany that may have the same product but a better description. P2
  • Weaknesses of E-commerce& how to address thisSecurity issuesTo complete a transaction in an online business, the customer must inputtheir credit card details in order to pay, this raises a large amount ofsecurity issue’s.Firstly a customer has to enter their details without knowing who isreceiving them and must trust them to only take the money for what is beingorderedAlso they must input their home address which could be a security risk forthe customer . P2
  • The Technology BrowsersWeb Authoring Software Web Authoring Software is software that writes HTML code automatically The advantages of this are that, if a small company wanted to start selling products online, but didn’t want to spend great amounts of money hiring an employee who can write HTML code. They could buy Web Authoring Software instead, which would cost less money and would possibly save time by writing the code automatically. P1
  • The Technology Database systemsIP addresses An IP address or Internet Protocol address, is a numerical label assigned to any device that joins a computer network which grants that device access so long it is connected. An IP address can be automatically by the network by assigning a different address to every device depending on when they connect. Or by being statically assigned to a device by an administrator, this means that the IP for this device will not change unless the administrator does so manually. P1
  • The Technology Domain NamesMultiple Domain Registration Many large companies have more than one domain name. the reason for having multiple domain names is simple, so that if an internet user is trying to get to a companies website and perhaps types in the domain incorrectly, or doesn’t know the full address, they will be directed to the correct site because the company owns all of the incorrect domains. Mostly it is only large companies that do this because it is expensive to purchase multiple domain names P1
  • The Technology Ports & ProtocolsBrowser & Platform Compatibility A large company wants its website to be compatible with as many web browsers and as many platforms as possible to maximise the amount of people that view the website and therefore awareness and possibly sales. A company will usually make a website compatible on all major web browsers and also on mobile devices such as iPads, iPods, smart phones and tablet PC’s P1
  • PromotionPaying to be prominent in search engine resultsPaying to be prominent in a search engine means a company can pay a searchengine, for example Google, to put their business link at the top of the search resultslist when key words are searched for in the search bar. Often these links will appearin a different colour box so they stand out. This is were the sponsored links are, meaning these links have been paid for so they are at the top of the page M1
  • PromotionNewsgroups & ForumsAnother way for a business to advertise online is to set up newsgroups and forumsabout their products. This is a good idea because it gets information and reviewsabout a products out onto the internet, and also because the company can monitorwhat is being said and can, if they wish, delete all negative comments. This is an example of a public forum concerning the Samsung Galaxy Note 2. M1
  • PromotionBanners & Pop-upsBanners and pop-ups are a poor way of advertising online because banners areexpensive to set up because you must buy space on another companies website toput the banner in, and even then, you must rely on the success of the other businessto get your business advertised.Similarly pop-ups are also expensive to set up but also, most people willautomatically close pop-ups because of the amount of them that contain viruses. This is where Amazon have chosen to put advertising banner’s, some from other companies M1
  • PromotionSpamSpam, is when a company pay another company to repeatedly send emails to everyemail address they have access to try and advertise, this is a poor way ofadvertising. The way this is poor is that the service is paid for in a pay-by-clickformat, meaning for every time someone clicks the link in the email, they pay a smallpercentage to the service provider.Also it is poor because most people have filters on their email inboxes, so spam mailwill be automatically sent to the junk folder and deleted. M1
  • PromotionEnsuring An Effective User InterfaceA large company wants to ensure it has an effective user interface on theirwebsite. The reason for this is so that any visiting user will have a smoothand flawless use of the site.If the website has imperfections, for example;• Brocken Hyperlinks• Unclear fonts• Difficult navigationThen the customer is less likely to buy any products or services and areeven less likely to make a repeat purchase, which would overtime loosethe company money and customers M1
  • PromotionEstablishing Customer loyalty in a virtual environmentEnsuring customer loyalty is important to a company as it will ensure repeatpurchases from existing customers. Ways a company can gain customerloyalty is by;• Identifying them by name when they log in• E-mailing them directly with offers relating to their specific previouspurchases• Offering a point system so customers can work towards a rewardAll of these will gain customer loyalty which is crucial to the operation of anE-commerce bases website where there is no human contact when buyingproducts or services. M1
  • PromotionSite NamesMemorable site names are essential to an e-commerce website, becausethe harder the name is to remember or type, the more likely a customer isto end up on a rivals website or give up and not make a purchase.By coupling a memorable site name and previously discussed multipledomain names, a website will maximise the amount of users that cannavigate to its websiteAn example of a memorable website name is Amazon.co.uk, it is easy toremember and easy to type in because it is not to complex.Good site names do have weaknesses, for example, they are expensive topurchase. M1
  • PromotionDirect MarketingDirect marketing is when a company targets specific audiences,sometimes the customers a company has targeted can choose tosubscribe to an online or tangible newsletter they will receive once everyweek/month that will contain offers or items specific to them.If customers subscribe to the newsletter then it shows they have aninterest in the business and are likely to make a purchaseA weakness of direct marketing is that it is a concentrated market andthe company has less potential customers M1
  • Security HackingHacking Prevention An e-commerce based website must be protected against hacking. This is essential because the website and the company will be dealing with customers personal details including address, contact details and bank/account details. Any leakage of this information would violate the data protection law that all e-commerce sites must abide by. P3, M2
  • Security VirusesVirus Prevention An e-commerce website must be safe and free from viruses. If a companies website became infected with viruses, most of its customers wont even visit the website anymore out of fear of their computers becoming infected also. So companies need anti virus software for their website to ensure it doesn’t become infected. P3, M2
  • Security ID TheftID Theft Protection A website that requires a customer to input personal information such as contact information and bank account details, must therefore have sufficient protection against that information being leaked or stolen. If this were to happen the company could be sued and customer loyalty and reputation would go down substantially. P3, M2
  • SecurityStrong PasswordsWhen the company is asking the customer for their payments and/or logindetails, it should prompt them so set-up the purchase or an account witha strong password.A strong password will help ensure the customers account cannot beaccessed by any unauthorised person, and so that the customer can trustthe company more because by prompting them to make a strongpassword, it shows the company cares for customers details, which willimprove consumer trust. P3
  • Evaluate Existing E-commerce Business SummaryDiscuss: What business sells, Why they would have moved into e-commerce, Structure of website, Layout ofproducts, Website security, Ease of use, Delivery options D1
  • Evaluate Existing E-commerce StrengthsWeaknessesStrengths- think about the benefits for this company when moving into e-commerce. Strengths of current site.Weaknesses- think about problems that may have had to overcome. Weaknesses of current site. D1