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1. E-ENVIRONMENT
BAB 4

2. LEARNING OUTCOMES
After completing this chapter the reader should be able to:
• Identify the different elements of an organization macroenvironment that impact on an
organization’s e-business and e-marketing strategy
• Assess the impact of legal, privacy and ethical constraints or opportunities on a company
• Assess the role of macro-economic factors such as economics, governmental e-business
policies, taxation and legal constraints

3. FACTORS IN THE MACRO- AND MICRO- ENVIRONMENT
OF AN ORGANIZATION

4. ENVIRONMENTAL
SCANNING

5. SIGNIFICANT LAWSWHICH CONTROL DIGITAL
MARKETING
Legas Issue Digital Marketing Activities affected
Data protection and
privacy law
 Collection, storage, usage and deletion of personal information
directly through data capture on forms and indirectly through
tracking behavior through web analytics
 E-mail marketing and SMS mobile marketing
 Use of viral marketing to encourage transmission of marketing
messages between consumers
 Use of cookies and other techniques for personalizing content and
tracking on-site
 Use of cookies for tracking between sites, for example for advertising
networks
 Use of digital assets installed on a user’s PC for marketing purposes,
e.g. toolbars or other downloadable utilities sometimes referred to
as ‘malware’

6. SIGNIFICANT LAWSWHICH CONTROL DIGITAL
MARKETING
Legas Issue Digital Marketing Activities affected
Disability and
discrimination law
 Accessibility of content such as images for the visually impaired
within different digital environments:
• Web site
• E-mail marketing
• Mobile marketing
• IPTV
 Accessibility affecting other forms of disability including hearing
difficulties and motor impairment

7. SIGNIFICANT LAWSWHICH CONTROL DIGITAL
MARKETING
Legas Issue Digital Marketing Activities affected
Brand and trademark
protection
 Use of trademarks and brand names within:
• Domain names
• Content on site (for search engine optimization)
• Paid search advertising campaingns ( e.g Google AdWords)
 Representation of a brand on third-party sites including partners,
publishers and social networks
 Defamation of employees
Intellectual property
rights
 Protection of digital assets such as text content, images, audio and
sounds through digital rights management (DRM)

8. SIGNIFICANT LAWSWHICH CONTROL DIGITAL
MARKETING
Legas Issue Digital Marketing Activities affected
Contract law
 Validity of electronic contracts relevant to:
• Cancellations
• Rturns
• Error in pricing
 Distance-selling law
 International taxation issues where the e-commerce service provider
is under a different tax regime from the purchaser
Online advertising law
 Similar Issue to traditional media
 Representation of offer
 Causing offence (e.g. viral marketing)

9. SOCIAL AND LEGAL FACTORS
• Factors governing e-commerce service adoption
1. Cost of access
2. Value proposition
3. Ease of use
4. Security
5. Fear of the unknown.
• Understanding users access requirements
1. Usage location (in most countries, many users access either fromhome or fromwork, with home being the more popular choice)
2. Access device
3. Connection speed – broadband versus dial-up connections
4. ISP
5. Experience level
6. Usage type
7. Usage level

12. PURCHASED ONLINE

13. PURCHASED ONLINE

14. BUSINESS DEMAND FOR E-COMMERCE
SERVICES
1. Variation in organization characteristics
• Size of company (employees or turnover)
• Industry sector and products
• Organization type (private, public, government, not-for-profit)
• Division
• Country and region.
2. Individual role
• Role and responsibility from job title, function or number of staff managed
• Role in buying decision (purchasing influence)
• Department
• Product interest
• Demographics: age, sex and possibly social group.

15. B2B PROFILES
• The percentage of companies with access.
In the business-to-business market, Internet access levels are higher than for business-to-consumer.
• Influenced online.
In B2B marketing, the high level of access is consistent with a high level of using the Internet to
identify suppliers.
• Purchase online.
The European Commission (2007) survey revealed that there is a large variation in the proportion of
businesses in different countries who order online, with the figure substantially higher in countries
such as Sweden and Germany in comparison to Italy and France for example.

16. ADOPTION OF E-
BUSINESS BY SMALL AND
MEDIUM ENTERPRISES

17. PRIVACY ANDTRUST IN E-COMMERCE
• Ethical standards
Practice or behavior which is morally acceptable to society.
• Privacy
A moral right of individuals to avoid intrusion into their personal affairs.
• Identity theft
The misappropriation of the identity of another person without their knowledge or consent.

18. WHY PERSONAL DATA AREVALUABLE FOR
E-BUSINESSES
1. Contact information.
2. Profile information
3. Platform usage information
4. Behavioural information (on a single site).
5. Behavioural information (across multiple sites).

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Bab 4 E-environment