A Search About Direct Effect of Social and Digital Media on Developing E-Commerce Business_2013 (1)
A SEARCH ABOUT DIRECT EFFECT OF SOCIAL
AND DIGITAL MEDIA ON DEVELOPING
İSTANBUL BİLGİ ÜNİVERSİTESİ
SOSYAL BİLİMLER ENSTİTÜSÜ
İŞLETME YÜKSEK LİSANS PROGRAMI
A SEARCH ABOUT DIRECT EFFECT OF SOCIAL AND DIGITAL
MEDIA ON DEVELOPING E-COMMERCE BUSINESS
PROJE DANIŞMANININ ADI SOYADI (İMZASI) :
KOMİSYON ÜYESİNİN ADI SOYADI (İMZASI) :
PROJENİN ONAYLANDIĞI TARİH :
(bu tarih SBE tarafından yazılacaktır)
In recent years, social and digital media have become more and more popular all around the
world. This study aims to explain, do you aware of the absolute efficiency of digital and
social media on internet?
You can survive your developing e-commerce website to get best out of social media web
sites. In today’s world, every Internet user have social media accounts such as Facebook,
Twitter, Linkedin, Flickr, Myspace, FriendFeed, Pinterest, Instagram etc. These social media
web sites growing up rapidly with perfect efficiency. Many global, international and
multinational companies or brands start to add their social web pages with the logo of
Facebook, Twitter and Linkedin at the same time on television commercials. Before social
and digital media usage, they were only using their webpage links. But when they start to be
aware strong impact of both social and digital media, they start to use on it.
In addition to this, if you start to use digital media tools in a right way for your e-commerce
website, you will increase your potential customer. Plus, your e-commerce site can have more
visits and profits.
According to this, do not forget to add your social media webpage to your e-commerce site.
This helps you to get comments and feedbacks from your customers about your webpage. It
also helps you to find new strategies to improve your website. Meanwhile, all these comments
and feedbacks will give you not only a chance to develop your Customer Relationship
Management and Data; but also, it provides you to start a new campaign about your products
and brands or in a new market.
TABLE OF CONTENTS
2. NEW BUSINESS AGE…………………………………………………………….2
2.1. What is New Economy?……………………………………………………..2
2.1.1. Development of the New Economy.…………………………….4
2.1.2. Globalization and Internet...…………………………………….7
2.2. New Business Age Features..……………………………………………….8
2.2.5. Integration / Internetworking.…………………………….….....9
2.3. Change of Consumers and Organization in New Business Age.…………..11
2.3.1 Digital Consumers.……………………………………………..12
2.3.2 Effects of New Business to the Organization…………….…….12
3. E-BUSINESS AND E-COMMERCE ON DIGITAL MARKETING………….…......15
3.1. What is Digital Marketing?………………………………………….…......15
3.2. What is E-Business?...……………………………………………….…......16
3.2.1 Types of E-Business.……………………………………...........17
3.3. What is Social Media?...……………………………………………………20
3.4. What is E-Commerce?...……………………………………………………27
3.4.1 Importance of E-Commerce and Online Marketing…….…......29
3.4.2 Trend of E-Commerce and Online Marketing………….…........31
3.5. E-Commerce in Turkey?...………………………………………….….......33
4. E-COMMERCE SAMPLES IN TURKEY.……………………………….….......39
LIST OF TABLES
Table 3.1 E-Business Taxonomy.…………………..………………………………………….17
Table 3.2 Total Minutes Spent on Mobile and PC...…………………………………….…….21
Table 3.3 Time Spent on Social Media..…………..…………………………………….……..21
Table 3.4 Top Social Networks..…………………..…………………………………….……..22
Table 3.5 A Spotlight on Pinterest.………………..…………………………………………..22
Table 3.6 How, Where and Why We Connect...…..…………………………………….……..23
Table 3.7 Simultaneous Smartphone and Tablet Usage While Watching TV.………….….....23
Table 3.8 Social Care………….…………………..…………………………………….……..24
Table 3.9 Advertising on Social Media.…………..…………………………………….……..24
Table 3.10 Frequency of Social Activities.………..…………………………………….……..25
Table 3.11 The Global Social Consumer...………..…………………………………….……..25
Table 3.12 Interact of Social Media While Watching TV...…………………………….….....26
Table 3.13 Consume of Social Media Products and Services.………………………….……..26
Table 3.14 Top 20 of the Turkish e-commerce Company....…………………………….….....35
Table 3.15 E-Commerce Transaction……………..…………………………………….…......36
Table 3.16 Turkey Growth…....…………………..…………………………………….…......37
Table 3.17 Top Searched & Selling Categories in Turkey...…………………………….….....37
Table 3.18 Top 5 Turkish Web Trends..…………..…………………………………….…….38
Table 3.19 Top 10 Global Markets by Facebook....…………………………………….…….38
Table 3.20 Some Association of Turkish Internet Retailer.…………………………….….....39
Table 5.1 Trends in Media Consumption..………..…………………………………….….....49
Table 5.2 All About Social………………………..…………………………………………...50
Table 5.3 E-commerce Forecast on 2014..………..……………………………………..........51
Table 5.4 World Population...……………………..…………………………………….….....52
Table 5.5 World Internet Users.…………………..…………………………………….…….54
Table 5.6 The World of Social Media………………… ……………………………….……..56
Table 5.7 The Scale of Active Social Media Customers….…………………………….…….57
Table 5.8 Companies & Social Media………..…..…………………………………….…......58
Table 5.9 Global Media Growth by Category………………………………………………....59
Table 5.10 Turkish E-commerce Companies Market Shares………………………………....60
A new business age characterized by globalization, Internet and an increasing emphasis on
knowledge has emerged over the past decade. Within the new economy, knowledge has
become the primary driver of economic growth. The economic, social and political landscape
in which future development will take place has therefore also changed. Opportunities exist
for firms to use information and communication technologies to make rapid advances.
Information technology projects explored the impact of the new economy on development
strategies to achieve knowledge intensive development or e-development. (Tony Shorrocks,
It shows us how rapidly evolving technology has accelerated these changes in the digital
landscape and how quickly these digitally active consumers embrace these technologies with
ease. These consumers have created a significant change in traditional consumer behaviors.
They have changed the way consumers communicate, transact and make purchase decisions.
(Digital Consumers, 2011)
Electronic commerce is transforming the marketplace by changing firms’ business models, by
shaping relations among market actors, and by contributing to changes in market structure.
Given the dynamic nature of these processes and their firm, sector, and time specificity, it is
difficult to single out the impact of electronic commerce. Electronic commerce creates the
possibility of new models for organizing production and transacting business, by offering
intermodality and complementarity in business models. Plus, the market structure likely to
emerge as a result of organizational changes associated with electronic commerce is
examined. The Internet opens up certain proprietary relationships, extends relations between
sectors, makes the electronic market accessible to smaller businesses and allows them to
address international markets. The nature of competition and firms’ strategies and competitive
advantages in domestic and international markets also change.
E-business competition that will emerge in each electronic market. Increasingly, new entrants
compete to set standards and provide the interface, and web alliances play a strategic role in
determining the emerging standard. Online firms also compete to capture customer
information, and virtual communities could play a role in striking the balance of market power
between consumers and suppliers. First mover advantages and nature of the innovation
associated with electronic commerce. (Impact of e-commerce, 2012)
2. NEW BUSINESS AGE
2.1. WHAT IS NEW ECONOMY
The “new economy” is considered to be the third major economic revolution. The first
economic revolution, also called “industrial revolution”, whose essence was the mechanization
of labour, was characterized by replacing the work of people with the work of certain
machines and devices. The second economic revolution was focused on the automation of the
production process. The new technologies, result of the scientific development, have offered
solutions for a better organization of the production process (Alexandrova, 2008).
Consequently, we can say that the individuals and the humanity in general are in a continuous
process of development that reaches high standards in the “new economy’. The “new
economy” imposes the professionalism and the technocracy in economy. In this context, the
limits of development are given by knowledge, by the individual and organizational abilities to
assimilate and develop the new technologies, as well as the capacities to use them in new
fields of activity for designing innovative products.
The “new economy” replaces the industrial economy, and the industrial economy replaced the
agrarian economy. The “new economy” is based on knowledge and ideas, an economy in
which the key factors for building certain life standards are innovative ideas and technologies
incorporated in goods and services (Samli, 2006). It is an economy in which the risks, the
uncertainty, the constant changes, represent rules rather than exceptions. In the “new
economy” people work with their brains instead of their hands. Information becomes a
resource for individuals and organizations; it can be used without consuming it. Individuals
and organizations have a certain amount of knowledge; have the possibility to materialize their
creativity into innovative products.
The “new economy” is a world in which innovation is more important than mass production.
The investors buy new concepts or means of turning them to good account rather than new
machines. Profit in the “new economy” is obtained by raising the already known things to
perfection or by exploring the unknown.
At a corporate level, we can say that in the “new economy” the organizations that are based on
knowledge and intangible assets have a superior potential compared to the traditional
organizations based on tangible assets. The corporate strategy based on knowledge and
intangible assets brings short-term profits but also creates long-term value through innovation,
the increase of the number of customers, the development of superior mechanisms for keeping
the customers loyal, the increase of the value of human capital, building new alliances and
partnerships, the development of the organizational economic processes, etc.
A necessary characteristic of the organizations functioning in the “new economy” is the so
called “agility”, a mixture between the speed with which the organizations react to the
environmental changes and their flexibility (Freeman & Cavisgil, 2007).
The “new economy” has the following main characteristics. As we have mentioned before, the
value of a company is given by its capacity to obtain, disseminate and turn to good account
knowledge and information. Secondly, it can be noticed that the products are more and more
specialized. They are tailored in order to meet the needs and preferences of specific
consumers. Consequently, the routine work is replaced by creative work and therefore
innovation is the key of success. Moreover, mass production is replaced by small scale
production. The economy of big quantities is replaced by the economy of high speed: the
speed with which organizations identify the needs and preferences of the consumers and
satisfy them. And last but not least, at a corporate level we notice the destruction of the
standardization of working procedures, and that of the formalization of the corporate
relationships inside the company. Everybody contributes to the exploration of the unknown.
Knowledge is materialized in goods and services. The more highly qualified labor they
incorporate and the greater the innovative level, the higher the economic value. 50% of the
value of a product is given by the knowledge invested in designing it. The development of
science has facilitated the spread of a great amount of information. However, in order for this
information to materialize into something and be productive it has to be turned into
knowledge. Knowledge means information in a context. The information becomes knowledge
and gets economic value only if it is put in a corporate context.
2.1.1 DEVELOPMENT OF THE NEW ECONOMY
New business age means; the rise of the new economy. The world economy has recently
changed. A new world economy has emerged over the last decade as two long-run broad
trends globalization and advances in information and communication technology (ICT) have
converged. This ‘new economy’ differs from the ‘old economy’, as knowledge has replaced
traditional productivity inputs, such as labour and natural resources, as the primary
ingredient for economic growth. As such, a new landscape exists and countries must adapt
their approaches and policies to achieve progress in the future.
Through the process of globalization, capitalism has become the dominant form of economic
organization across the globe resulting in free flows of trade and capital. Recent advances in
ICT have increased the knowledge intensity within the production process. The convergence
of globalization and knowledge intensity in economic activities in the 1990s resulted in an
economy now characterized by ‘knowledge’ as the major factor in production and comparative
advantage. The central tenet of the new economy is the significance of knowledge to the
global economic process. Codified knowledge can now be quickly and cheaply delivered to
where it is needed, be transformed as required and be made effective in machines and other
production and service delivery processes. The degree of incorporation of knowledge into
global economic activity is so significant, that it has caused structural and qualitative
changes in how the world economy operates. Within the new economy, development policies
must recognize and incorporate this new reality and focus on achieving knowledge - intensive
development or e-development.
In the new economy, information is unbundled from its physical carrier. This is a truly
revolutionary aspect of modern ICT. In short, the economics of information can be separated
from the economics of physical objects. This weightless or dematerialized economy means
that an increasing fraction of GDP comes to reside in economic goods with little or no
physical manifestation. In the new economy, a poor country is not necessarily burdened by the
‘object gap’. The lack of raw materials or physical capital is no longer a barrier to
development as it was in the old economy. The opportunity for developing countries is that
they might experience accelerated development by taking advantage of freedom from their
‘object gap’ within the new economy and achieve progress through e-development.
Through the process of dematerialization, producing and distributing bits of logic rather than
atoms of physical material increasingly creates economic value. While computers and
information technology form a large part of this activity, the digitization of production and
consumption means that an increasing number of products and services become idea - like
goods. Development policies must re-focus so that national economies increasingly become
weightless, thus overcoming the traditional barriers of natural resources and other inputs of
the old economy.
Traditional policies for development and growth must therefore be reconsidered in light of
this new economic paradigm. Policies at both the micro and macro level must be developed
and implemented to ensure that the opportunities prevalent in this new environment are
maximized. However, the new economy will not automatically end poverty. Poor countries
lack the current type and amount of investment required to benefit automatically from the
new economy. New investment strategies and public policies are required. The new economy
is simply the new environment in which public policies aimed at improving living standards
and the quality of life must succeed. Whether e-development occurs is dependent on how
different countries respond to this new environment.
The future of different nations will depend on how they respond to the new economy.
Current development policies that remain focused on the traditional industrialization of
developing economies within a global market will fail in their objectives. The new economy
provides a fundamentally different global environment in which progress will occur. It is
different from the context of recent decades and far removed from that in which the
developed and even the East Asian tiger economies achieved progress. A historical blueprint
for development no longer exists, and new and distinctive development strategies must be
designed that take account of both the specific circumstances of countries and new global
The new economy has impacted upon the development process. Irrespective of the size of a
country, its wealth, population or natural resources, development strategies that have
regard to this new reality must be developed. The development process is no longer
linear, progressing from agriculture to manufacturing to service industries. Developing
countries cannot expect positive outcomes by following the strategies and building the
institutions that served the developed countries in the industrial era. The development
challenge in the twenty-first century will be entirely different to the development
challenges of the past century. Indeed, all countries, whether developed or developing, will
need to recognize the scale of changes currently underway and design new strategies for
these realities. A prevailing view within economics is that an important driving force of
economic growth is technology. As information and communication technology is widely
regarded as the current manifestation of the ongoing sequence of technological revolutions,
information and communication technology is now seen as the key factor driving
economic growth in the current global economy. Developing countries can no longer rely on
low-cost manufacturing to secure economic development. OECD countries indicates that the
sources of competitive advantage in the new economy are now the adoption of
the technological, organizational and managerial innovations that enhance productivity. ICT
is the essential enabler in this process.
As the increasing intensity of knowledge in economic activity incorporates the use of
knowledge within the production of goods and services, knowledge is now an important
factor of production. Therefore, economic activity within the new economy is less resource
dependent than traditional economic activities based on natural resources in the old economy.
The new economy is the new context within which e-development will take place.
While development strategies will vary between countries and regions, central in all
responses should be an emphasis on investment with a high knowledge intensity and a focus
on narrowing the digital divide.
There is great hope that e-development within the new economy will provide a shortcut to
prosperity by allowing developing countries to bypass certain traditional phases of
development in the conventional, long-lasting and belt tightening process of structural change
from agrarian to industrial and, ultimately, to knowledge-based service economies. Poor
countries once burdened by the ‘object gap’ now have the opportunity to overcome the
limitations of natural resources by focusing future development strategies on increasing
knowledge-intensive investment. (Matthew Clarke, 2003)
2.1.2 GLOBALIZATION AND INTERNET
Globalization describes an ongoing process by which regional economies, societies and
cultures have become integrated through globe-spanning network of exchange. The term
is sometimes used to refer specifically to economic globalization: the integration of
national economies into the international economy through trade, foreign direct
investment, capital flows, migration, and the spread of technology. However,
globalization is usually recognized as being driven by a combination of economic,
technological, socio-cultural, political and biological factors. The term can also refer to
the transnational dissemination of ideas, languages, or popular culture. Globalization has
spread in a huge way since the end of the Second World War and will continue to do so
as technology and communication improve between nations.
The emergence of a global marketplace is a fairly recent phenomenon that is having huge
effects on both developed and developing nations. There are many people and
organizations that are all for this economic integration and also those who stand defiantly
against it. Technology is playing a big part in this global dialogue by altering the scope of
these economic transactions.
Global economic integration generally speeds up when trade restrictions have been lifted
between nations, allowing a freedom of trading opportunity that may not have been
previously there. It is the unavoidable process which the world entered, is affecting each
of us in different ways. (Bucur, 2002)
In a world in continuous change, when we are moving from a production based economy
towards an information based one, the end of the last century is marked by the launching
of the Internet, which among other achievements in the science and IT area, transformed
the world into an “agora”, a place where ideas and new concepts are created and
changed, where, contracts between people from any corner of the world are not only
possible, but they become reality.
With a fast evolution, a great number of applications and almost global accessibility, the
Internet is nowadays used to find information in all areas of interest, for commercial
transactions, for social networks, for communication or entertainment.
The advent of Internet has also a large effect on the acceleration of globalization and the
commerce in special. Electronic commerce (e-commerce) refers to forms of transactions
which are based on electronic data processing, among other things text, sound and picture,
with the participation of organizations and individuals, on the Internet. (Cuneo, C., 2002)
2.2. NEW BUSINESS AGE FEATURES
At the beginning of this study we start with a result of new business age which is new
economy. It is revolution of the economy and it has twelve characteristics.
The new economy is a knowledge economy, based on human capital and networks.
Knowledge permeates through everything important; people, products, organizations. It brings
new opportunities which lead the change of life in a better way. This means organizations
will be forced to change their old opinion of emplotess and try to retain and develop the
capabilities of knowledge workers.
Information was analog or physical, communication was only possible through the actual
movement of people in the old economy. But in new business age digitization is the process
of converting information into a digital format so it can be viewed or listened to in digital
devices. It allows the free movement of vast amounts of information in the shortest time
possible between people in different parts of the world. Now knowledge can now be stored
in digital form.
In the new business age; it is possible to create a virtual version of a device or resource, or
convert physical and tangible things into virtual things. Such as a server, storage device,
network or even an operating system where the framework divides the resource into one or
more execution environments.
It is necessary to adopt the new conditions into the new business age; if it cannot be
succeeded, it would be impossible to stay alive for the heavy organization structures. The
digital world brings new forms such as fluid and flexible work environment. In the new
economy the ‘light organizations’ will survive. For example, in a light organization project
team members could be from different parts of the world and they can work through digital
world. They can be more effective, more productive with extra knowledge and more
2.2.5 INTEGRATION / INTERNETWORKING
The new economy is a networked economy, integrating molecules into clusters which network
with others for the creation of wealth. The new paradigm in wealth creation is possible
because of digital computer networks and because of a shift from the host-computer,
hierarchical networks of the past to peer-to-peer webs based on the Internet model.
As the bandwidth of such networks grows to achieve full multimedia, the opportunities for
new institutional structures grows dramatically.
Disintermediation is the removal of intermediaries in a supply chain, or "cutting out the
middleman". Instead of going through traditional distribution channels, which had some type
of intermediate companies may now deal with every customer directly.
It is coming together of distinct and separate factors or technologies. Convergence changing
the way we do business, work, play, live, and probably even think. The dominant economic
sector is being created by the convergence of computing, communications and content. All
these create the interactive multimedia which is in one platform.
Innovation can mean changing your business model and adapting to changes in your
environment to deliver better products or services. This could mean implementing new ideas,
creating dynamic products or improving your existing services. Innovation can be a catalyst
for the growth and success of your business, and help you adapt and grow in the marketplace.
Mass production was key aspect in the industrial age. But, in the new business age, the key
aspect is mass customization. Every consumer on the information highway is now a produce
by creating and sending a message to order or specify their opinions, additions, adjustments
and specifications about the product or service they are purchasing.
New business age is a real time enterprise, which is continuously and immediately adjusting to
changing business conditions through information immediacy. Immediacy becomes a key
driver and variable in economic activity and business success. Goods are received from
suppliers and products shipped to customers "just in time," thus reducing or eliminating the
warehousing function and allowing enterprises to shift from mass production to custom online
production. Customer orders arrive electronically and are instantly processed; corresponding
invoices are sent electronically and databases are updated. Enterprises seek to "compete in
“Knowledge knows no boundaries”. (P. Drucker, 1993) According to this, there is no
internal or domestic knowledge and international knowledge. In new business age, with
knowledge becoming the key resource, there is only one world economy even though the
individual organization operates in a national, regional, or local setting.
Globalization is driven by and is driving the new technology that enables global action. This
means the organizations are no multinational enterprises but global organizations.
Unprecedented social issues are beginning to arise, potentially causing massive trauma and
conflict. As we stand on the frontier of the new economy, we can also see the beginnings of a
new political economy that will raise far reaching questions about power, privacy, access,
equity, quality of work life, quality of life in general, and the future of the democratic process
itself. As tectonic shifts in most aspects of human existence clash with old cultures, significant
social conflict will tear at the fabric of structures and institutions. (Tapscott, D., 1996)
2.3 CHANGE OF CONSUMERS AND ORGANIZATIONS IN NEW BUSINESS AGE
New business age start to change not only customer expectation, but also change the methods
which need to develop in business and marketing management. According to this it created
2.3.1 DIGITAL CONSUMERS
Computers, mobile phones, handhelds and PDAs have become the chosen medium for almost
every transaction, from social networking and sharing information to shopping and
entertainment. The use of digital devices has also created other social trends associated with
definitive expectations from every purchase.
Digital media or new business age is redefining consumer mind-sets, patterns of purchase and
decision-making. Digitally active consumers have embraced the Internet, telecom, media, and
social space, changing the way consumers communicate, transact and make purchase
decisions. These consumers rely on Internet research, friends and online peer reviews as
opposed to ‘sponsored’ communication. This new breed of active, informed and assertive
members are identified by their need for independence, uniqueness and participation.
Organizations must adapt to this new wave of consumers to stay ahead. With the emergence of
digital consumers, companies have the unique opportunity to capture the imagination of
customers, resulting in loyalty. By enabling self-service mechanisms, offering personalized
products, services and experiences, and engaging consumers in the co-creation innovation
process, enterprises redefine the rules of customer engagement. Organizations must realize the
potential of this trend, broaden their outlook, and institute necessary cultural and
organizational changes to become truly digital consumer-centric.
Companies can leverage structured and unstructured analytics, active enterprise-consumer
interfaces, and innovative platforms to reach out to the Digital Consumer. Self Service,
Personalization, and Co-creation lie at the core of a successful digital consumer strategy, thus
ensuring tailored and personalized solutions for organizations of tomorrow. (Digital
2.3.2 EFFECTS OF NEW BUSINESS AGE TO THE ORGANIZATIONS
The new developments in the economy are making possible the creation of new types of
organizations where the application of information technology to knowledge work will
increase organizational productivity and effectiveness. However, the more far reaching
consequences will be changing organizational goals and objectives. To do so there are some
steps to be undertaken and it happens in five levels all accompanied by a specific technology
and a fundamental change in the nature of work.
The effective individual: where an individual can enhance his or her own effectiveness and
learning efficiency by using interactive multimedia technologies on their own computer.
The high performance team: where a team of individuals within an organization can work
effectively together using these tools to change the existing design of jobs and the
accompanying specifications and restructuring the business process.
The integrated enterprise: when the staff or employees within an organization are brought
together especially in teams to work on projects using the interactive multimedia
technologies, it results in an overall organizational change.
The extended enterprise: is a company that has strong and direct links with its customers and
suppliers thereby creating a value chain. In this way products and/or services can be
customized and delivered in the shortest possible time. This results in changing existing
external relationships and redefining new boundaries and expectations.
The internetworked business: where a company links with other companies suppliers and
organizations on an extremely flexible basis often via a 'virtual' connection only, to create
specific value added products for a customer, the internetworked team may exist for that one
product or service only, then return to other teams, as the need and market dictate. Once
again the rise of interactive multimedia or the ‘net’ is the enabling mechanism for this kind
of development. This has a widespread in causing wealth creation and social development
on a global scale.
This entire transition of evolving from an individual to a highly internetworked organization
has to be accompanied by ten ‘technological shifts’. Tapscott feels that these shifts from
existing ways to newer ways will make things much more efficient and responsive to the
ever changing growing needs of the new age. These are;
1) From analog to digital: Creating and using digital technologies in a digital economy.
2) From traditional semiconductor to microprocessor technology: High performance
processing for high performance organizations.
3) From host to client/server computing: Client/server computing for the dynamic
client/customer service organization. The network becomes the computer and the
enterprise becomes the network.
4) From garden path bandwidth to information highway: Broadband communications
for the networked economy: broadband communications for the networked economy.
5) From dumb access device to information appliance: Smart on and off ramps for the
6) From separate data, text, voice and image to multimedia: Interactive multimedia for
complete human communications.
7) From proprietary to open systems: Open systems for an open world
8) From dumb to intelligent networks: Hypermedia and data retrieval will be done by
specialized software programs.
9) From craft to object computing: Rapidly deployable software for the rapidly
10)From GUIs, to MUIs, MOLEs, MUDs, MOOs and Virtual Reality: New collaborative
environments for a new economy.
Based on the ‘technological shifts’, Tapscott identifies key areas in the economy and the
society on which these advances have and will have a major impact upon; healthcare,
retailing and distribution, design and manufacturing, public relations, government, leisure,
travel and tourism, learning and education, entertainment and media.
Tapscott talks about how far reaching the influence of the digital technology is on the
various sectors but for now the changes are due to reducing costs, improving overall
efficiency, adding value, squeezing out the middlemen, reducing time and the convergence
of computing, communications and content. But in order to make all this possible and more,
the most important factor has to be willing to change the people. Without a strong leadership
committed to positive change and the adoption of a digital based economy, the results will
be warped. The remaining portion of the book identifies six themes regarding leadership
which is based on a collective rather than on an individual. The themes are;
achieving internetworked leadership is your personal opportunity and responsibility
leadership in the new economy is leadership for learning
internetworked leadership is collective leadership
internetworked leadership can be digital
internetworked leadership is incomplete without the support of the CEO
personal use of the technology creates leaders.
Lastly, Tapscott details with the flip side in a digital economy. The digital economy is
supposed to allow free accessibility of information and facilitate knowledge transfer across
borders to different people. However, it is becoming obvious that there are two important
issues being raised privacy and security and the growing gap between computer literates
the haves and the have-nots. (Tapscott, D., 1997)
3. E-BUSINESS AND E-COMMERCE ON DIGITAL MARKETING
3.1 WHAT IS DIGITAL MARKETING
Digital Marketing is a process of coming together with the best techniques of both marketing
and digital. It was born in USA, and the target audience was the once who is using Internet
most common for fast, economical and cheap shopping.
The main purpose of it was, not only direct sales but also to make a well-known brand and
customer data. (Information)
Digital Marketing has some applications;
Internet Marketing Tools; these are banners, videos, ads, e-mails. They are using for
specific interest or demands of the consumers on web pages.
E-mailing and RSS
To make corporate profiles in social Networks: the main purpose of it, to track personal
information of members and provide some special contents for them.
Sharing videos and photos on web, to make well-known brand.
All these applications and tools using for directly reach consumers, and specify their demands
and interests. Digital Marketing have two strategies, they are Pull and Push Strategies.
Pull strategies providing to reach web sites, banners and videos that are using search bar on
web. In this strategy consumer is in active role.
Push strategies provide e-mailing and RSS that provides directly reach consumer interest
within specific content and fast.
Time, demand of consumer, relevant offers of consumers’ interests are the key factors of
digital marketing. They shows us, where, which and why do we reach the exact consumer.
Also, we will reach the habit of them, if we use the right strategy. Consumer perceptions can
change fast and easily. In according to this, digital marketers have to be fast in a short time
period and impressive through to consumer perception. Active sales related with the marketing
and brand life cycle.
Digital marketing will add value to companies; if they use the right strategy and technology in
the right time with low invest cost. As it is mentioned before, cost of investment need to be
less than the company costs for maximum profit in a long term. Budgeting related with both
sales forecasts and company old data. In according to this, companies should have cost
effective manner to manage their budget. They also need to specify why and where do they
stay? They also need to specify why and where do they stay; plus, how to reach relevant
consumer. Effective beginning strategy provide them right investment and more profit.
3.2. WHAT IS E-BUSINESS
There are a range of definitions of e-business. Damanpour (2001), for example, defines
e-business as any ‘net’ business activity that transforms internal and external relationships to
create value and exploit market opportunities driven by new rules of the connected economy.
The Gartner Advisory Group (Damanpour, 2001), a research and advisory services firm,
describes e-business in terms of a quantity rather than an absolute state of a company. They
consider a business an e-business to the degree that it targets the market opportunities of
conducting business under new electronic channels, which revolve around the Internet. This is
an acknowledgement that e-business comes in many forms and can be implemented to a very
small or a large degree. It is also an acknowledgement that the ‘Internet’ is an essential
component of an e-business strategy. Laudon and Laudon’s (2002) definition of e-business, as
the use of the Internet and other digital technology for organizational communication,
coordination and the management of the firm, encompasses these different adaptations. In the
broadest possible terms, however, e-business is an electronic way of doing business. The fact
that the value proposition of e-business includes the creation of new market opportunities
through electronic channels, should not be ignored as these electronically channelled market
opportunities enable companies to lower transaction costs, reduce delivery times, improve
customer services, and add convenience. (Damanpour, 2001).
3.2.1. TYPES OF E-BUSINESS
E-business can be broadly divided into the following categories below;
● Business to Business (B2B)
● Consumer to Consumer (C2C)
● Administration to Administration (A2A)
● Business to Consumer (B2C) or Consumer to Business (C2B)
● Business to Administration (B2A) or Administration to Business (A2B)
● Consumer to Administration (C2A) or Administration to Consumer (A2C)
Table 3.1 E-Business Taxonomy
E-Business Taxonomy, Ruikar, Kirti, Anumba, C. J. (2008) E-business in Construction
Business to Business (B2B)
Business to Business (or B2B as it is commonly referred to) is an electronic means of carrying
out business transactions between two or more businesses. B2B incorporates everything from
manufacturing to service providers.
There are several examples of B2B models. Using B2B a company can leverage the Internet to
place orders electronically, receive electronic invoices and make electronic payments.
Consumer to Consumer (C2C)
In a C2C business model, although there may be no financial transaction, there is still an
exchange of value and these are economic activities and could be referred to as peer-to-peer
(Timmers, 2000). Blogs, for example, have led to the development of news C2B and C2C
applications by presenting the opportunity and tools for virtually anyone to express their views
easily and to communicate these globally and inexpensively. For instance, Nano-publishing is
an application of C2C (and C2B) schemes using lowcost online publishing techniques such as
blogging (writing weblogs) to target a specifi c audience. Additionally, Podcasting, video
casting, and other blog-related technologies help to provide opportunities to develop new
economic systems and to generate alternative revenues. Examples of C2C business models
include, consumer e-auctions and blogs.
Administration to Administration (A2A)
Using the A2A model, government departments can nationally and or internationally
communicate and exchange classified information through dedicated portals. Typical
examples include the national DNA database and other policing information.
Business to Consumer (B2C) or Consumer to Business (C2B)
In a B2C model, commercial transactions are between an organization and the consumers
(Chaffey, 2002). When applied to the retail industry, for instance, a B2C process will be
similar to the traditional method of retailing, the main difference being the medium used to
carry out business – the Internet. Such a method of carrying out business transactions assumes
that the consumer has access to the Internet. By selling direct to customers or reducing the
number of intermediaries, companies can achieve higher profi ts while charging lower prices
(Laudon and Laudon, 2002). This removal of intermediary organizations or business process
layers is termed disintermediation. Some examples of the B2C category include Amazon.com
C2B on the other hand, is a business model in which consumers offer products and services to
companies at a cost. This business model is a reversal of traditional business model where
companies offer goods and services to consumers. Online surveys such as surveys.com, and
SurveyMonkey, are typical examples of C2B models, where individuals offer the service to
reply to a company’s survey and in return the company pays the individual for their service.
Business to Administration (B2A) or Administration to Business (A2B)
The B2A category covers all transactions that are carried out between businesses and
government bodies using the Internet as a medium. This category has steadily evolved over
the last few years. An example of a B2A model, is that of e-devlet.com, a software company
that provides round the clock public access to government services for asset management,
emergency response, permitting, planning, licensing, public health, and public works.
A2B is an electronic means of providing business-specifi c information such as policies,
regulations directly to the business. A typical example of the A2B category is construction e-
tendering solutions that enable potential construction stakeholders to bid for government-led
projects such as the 2012 London Olympics, using online tendering tools.
Consumer to Administration (C2A) or Administration to Consumer (A2C)
The C2A and A2C categories have emerged in the last decade. C2A examples include
applications such as e-democracy, e-voting, information about public services and e-health.
Using such services consumers can post concerns, request feedback, or information (on
planning application progress) directly from their local governments/authorities.
A2C provides a direct communication link between governments (e.g. local authority) and
consumers. The HM Revenue and Customs Website, for example, allows consumers to scivic
service Websites that inform the general public about community events, road closures, and
other activities that impact the community and public services. (Ruikar, Kirti, Anumba, C. J.
3.3. WHAT IS SOCIAL MEDIA
Social media is platform where people meet and be in interaction. But the main thing, there is
not a limit of time and location in there. People help each other, ask questions, get answers,
write comments, and give feedbacks in social media. Thus, in social media people are content
provider. We also called that, it is a media, whose customers produce content. Thus, it has
commercial meaning as well. Here are the some worldwide descriptions of it;
Social media is a digital media technologies which provides to users or groups, content
provide and to be in interaction with each other. And social media is a revolution of the
communication from monolog to dialog. It means; one from to more people communication
has changed to more from to more people communication.
Social media is an online tool which people share their profiles, ideas, ideologies, perceptions.
This tool helps more interaction and communication. Message boards, podcasts (a sharing
system which lets digital media files can play on mobile devices and computers.), micro blogs,
social networks, wiki’s and bookmarks.
Here is information and tables about 2012 Social Media Report, (www.nielsen.com, 2012)
It is impossible to create a social media effect without mobiles
Twitter is a great social media tool to drive TV programs.
Pinterest is come out with the high yearly users both on mobile and pc. Meanwhile, the
rate of female user increasing on mobile app.
%32 of users who are ages between 18-24, use social media even in bath.
Searching on tablets is more common than searching on smartphones while watching
%47 of social media users engage with complaint, information, questioning about a
brand on social media. In this case, Facebook pages, blogs, twitter, YouTube are the
main channels for them to use it. Additionally, users follow other brands’ experiences.
The penetration of social media usage while watching TV is 63 per cent in Middle East
and Africa while the rate in Europe is 38 per cent.
Asia and Pacific countries match with social consumer statement.
Table 3.2 Total Minutes Spent on Mobile and PC
Total Minutes Spent on Mobile and PC, http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.3 Time Spent on Social Media
Time Spent on Social Media http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.4 Top Social Networks
Top Social Networks http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.5 A Spotlight on Pinterest
A Spotlight on Pinterest, http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.6 How, Where and Why We Connect
How, Where and Why We Connect http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.7 Simultaneous Smartphone and Tablet Usage While Watching TV
Smartphone and Tablet Drives TV, http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.8 Social Care
Social Care, http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.9 Advertising on Social Media
Advertising on Social Media, http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.10 Frequency of Social Activities
Frequency of Social Activities, http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.11 The Global Social Consumer
The Global Social Consumer, http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.12 Interact of Social Media While Watching TV
Interact of Social Media While Watching TV, http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
Table 3.13 Consume of Social Media Products and Services
Social Media Consume, http://blog.nielsen.com/nielsenwire/social/2012/ (2012)
3.4. WHAT IS E-COMMERCE
Turban, King, Viehland and Lee (2006) define e-commerce as the process of buying, selling,
transferring, or exchanging products, services, and/or information via computer networks
including the Internet. Similarly, Dutta (1997), Javalgi and Ramsey, (2001) defines e-
commerce as the sharing of business information, maintaining business relationships, and
conducting business transactions by means of telecommunications networks.
The Internet and web technologies have tremendously changed the way of doing business in
general, and commerce in particular. Users have more opportunities to be informed about the
current trend of the market before making any decision. Users are continuously browsing the
Internet as well as being overwhelmed with information from different online sources (for
example, piyasanet.hurriyet.com.tr). In addition, there is no longer any need to go to a library
to purchase one’s favorite sports magazine. Several web sites exist that allow users to submit
online orders. This way of doing business constitutes a part of what is commonly known as e-
commerce. Web shopping is only a small part of the whole e-commerce picture that covers
several types of businesses that range from customer-based retail sites like gittigidiyor.com
(business-to-consumer), to auction and music sites like eBay, and to business exchanges
trading goods and services between corporations (business-to-business).E-commerce is seen as
a general term for any type of business, or commercial transaction, that involves the transfer of
information across the Internet. (Elsen, I. & Hartung, F. & Horn, U. & Kampmann, M. and
Peters, L., 2001)
E-commerce puts new demands not only on support and delivery IT, but also on the way
business processes have to be designed, deployed, and maintained. Several people in different
locations and with different hardware and software resources may simultaneously initiate
purchase requests for the same product but with different selection criteria. Reliability,
efficiency, scalability, and fault-tolerance are among the features that should be embedded in
e-commerce processes. To assess the value-added of these processes, it is crucial to be aware
of their type. Processes that help potential customers, whether individuals or businesses, in
locating the goods/services they need are essential. At the same time, processes that allow
suppliers to make customers aware of their products are also important. At the present time,
web sites are full of advertising banners that enable users to enter and visit provider sites with
one click. E-commerce as part of the whole e-business evolution has been the object of major
changes. (Liand, T. P.&Huang, J. S., 2000)
First, businesses started the digitalization of their data to make it available online. This data
included the business’s profile and catalogues. Initially, businesses did not attempt to adapt
their business processes (know-how).
Later, businesses decided to undertake the reengineering of their processes due to the pressure
to remain competitive. The traditional way of satisfying users’ needs could no longer cope
with the challenges presented by the new context with its complex features: profitability,
competition, alliances, and market volatility. Adjusting the business’s know-how to the
context, therefore, became critical. The third stage consisted of offering online forms to
capture users’ needs efficiently and accurately. There was no longer the need to send faxes or
call vendors to get orders completed. To conclude any purchase transaction, financial partners
were invited to join the shopper-vendor relationship. Ensuring the security of the payment
process and the exchange of private information was and still is a major concern. The next
stage in the e-business evolution was the offering of personalized services. The purpose of
personalized services is to include the profiles of users in terms of preferences and interests
when work- ing to fulfill their needs. Now, the trend of e-business is towards joint ventures
where business processes are merged.
Despite the growing number of e-commerce sites, conducting e-commerce operations is still
challenging. Various obstacles exist. First, relevant web sites with access to catalogues have to
be discovered. Second, the way these sites operate has to be understood. Third, needs have to
be specified according to the characteristics (terminology) of the sites. Last but not least,
security problems can occur when sensitive information is submitted. Many times, obstacles
that face novice users upset them and the whole e-shopping experience ends in frustration.
Instead of supporting users, IT is making things more complex.
As a direct consequence, users may simply turn to the competition or decide to go back to the
traditional way of shopping: ask friends to accompany them, visit shops, talk to vendors, and
bargain for better deals. It should be noted that once IT is introduced into the process, the
“social context” is ignored. One of the challenges that needs tackling in the near future is how
to integrate the social context into the development of any user-oriented systems. Schummer
argues that while e-commerce applications aim at easing the process of shopping by
simulating real world experiences, these applications unfortunately do not include social
factors in their simulation. Users are mainly kept separated and everyone is shopping as if they
were alone in an empty store. A survey done in Schummer reported the importance of the
social factors and showed that 90% of shoppers prefer to communicate while shopping.
(Schummer, T., 2001) Furthermore, according to Kraft, Pitsch, and Vetter, the current malls
on the Internet are characterized by a 2D representation, navigation according to links, single
user environments, and static environments that lack realism and interactivity. (Kraft, A.,
Pitsch, S., and Vetter, M., 2000)
In contrast, the shopping process in real life is definitely a social one where people can get
advice and share their experiences with others. To deal with some of the obstacles to e-
commerce, several experimental technologies (for example, software agents, web services)
that aim at supporting users are now available. The purpose of these technologies is to attract
more consumers and encourage them to participate in online business.
3.4.1. IMPORTANCE OF E-COMMERCE AND ONLINE MARKETING
This subject will show us importance of the electronic commerce in 10 topics,
1. Exploitation of New Business
Electronic commerce emphasizes the generation and exploitation of new business
opportunities and to use popular phrases: “generate business value” or “do more with less”.
2. Enabling the Customers
Electronic Commerce is enabling the customer to have an increasing say in what products are
made, how products are made and how services are delivered.
3. Improvement of Business Transaction & Effective Performance
Electronic Commerce endeavors to improve the execution of business transaction over various
networks and it leads to more effective performance i.e. better quality, greater customer
satisfaction and better corporate decision making.
4. Greater Economic Efficiency
Electronic commerce helps you to achieve greater economic efficiency (lower cost) and more
rapid exchange (high speed, accelerated, or real-time interaction)
5. Execution of Information
It enables the execution of information-laden transactions between two or more parties using
inter connected networks. These networks can be a combination of plain old telephone system’
(POTS), Cable TV, leased lines and wireless. Information based transactions are creating new
ways of doing business and even new types of business.
6. Incorporating Transaction
Electronic commerce also incorporates transaction management, which organizes, routes,
processes and tracks transactions. It also includes consumers making electronic payments and
7. Increasing of Revenue
Firm use technology to either lower operating costs or increase revenue. Electronic Commerce
has the Potential to increase revenue by creating new markets for old products, creating new
information-based products, and establishing new service delivery channels to better serve and
interact with customers. The transaction management aspect of electronic commerce can also
enable firms to reduce operating costs by enabling better coordination in the sales, production
and distribution processes and to consolidate operations arid reduce overhead.
8. Reduction of Friction
Electronic Commerce research and its associated implementations is to reduce the “friction” in
on line transactions frictions is often described in economics as transaction cost. It can arise
from inefficient market structures and inefficient combinations of the technological activities
that required to make a transaction. Ultimately, the reduction of friction in online commerce
will enable smoother transaction between buyers, intermediaries and sellers.
9. Facilitating of Network Form
Electronic Commerce is also impacting business .to business interactions. It facilitates the
network form of organization where small flexible firms rely on other partner, companies for
component supplies and product distribution to meet changing customer demand more
effectively. Hence, an end to end relationship management solution is a desirable goal that is
needed to manage the chain of networks linking customers, workers, suppliers, distributors
and even competitors. The management of "online transactions" in the supply chain assumes a
10. Facilitating for Organizational Model
It is facilitating an organizational model that is fundamentally different from the past. It is a
control organization to the information based organization. The emerging forms of techno-
organizational structure involve changes in managerial responsibilities, communication and
information flows and work group structures. (http://iimi.hubpages.com, 2009)
3.4.2. TREND OF E-COMMERCE AND ONLINE MARKETING
Over the past decade consumers and companies have experienced a vibrant and revolutionary
change in the way marketing and advertising have been applied to new and existing products
and services. These changes are being promoted by advances in technology that have led to
increasing growth of communication through interactive media, primarily the Internet. Today,
most companies are delving into Internet marketing to reach, capture and keep consumers
returning to increase brand loyalty and build relationships with their customers. This topic will
show us why online marketing is important?
Burrett (2008, p. 44) states online marketing is about "carefully targeting users and getting
them to interact with you while they're engaged with the most personal, intimate medium ever
invented". Unlike a traditional media audience, internet users have control of their medium.
They decide where they want to navigate, what they want to do and which links they want to
click. Belch and Belch (2009) stated that one major advantage of online marketing is the
Internet allows for a back and forth of information, which gives users the ability to modify the
form and content of the information they receive in real time. Another advantage of online
marketing is that people are spending more time on their computer. People look at what is
available on the Internet, and research prices, stores, and ratings. Then they choose which
product or service is best for them.
According to Haver (2008, p. 2) "Today's younger, more 'green' shoppers aren't going to waste
precious money and gas going from store to store looking for just the right item. They shop
online whenever they can, narrowing their choices to one or two items-then go to the store to
touch, feel, bounce and check out the actual product to see if it looks the way it was
represented online.". Therefore it is imperative for companies to create and maintain a useful
and attractive website. Burnett (2008) claims a company's website is not just a brochure or a
print ad online rather it's a destination that users have to tolerate, hence attention to detail is
paramount. One of the key advantages of online marketing is no geographical limitation on
potential customers. People can discover products and services across the globe. Some
websites are created not so much to sell, but to attract customers and utilize a company's
expertise. In fact, having someone like your online marketing campaign so much that they
pass it on to family and friends is the jackpot of online marketing.
Online marketing employs a variety of forms, including: banners, sponsorship, pop- ups, push
technologies, links, paid searches, interactive media, e-commerce, online magazines and
newspapers, social networks, user generated videos such as YouTube, and blogs.
In this Internet powered age, where customers have more choices than ever, offering good
products is not enough. Atkins (2003, p. 13) stated "Today's Web customers are more
sophisticated and demanding about their purchase options. They prefer to do business with
companies in their own way, 24 hours a day, seven days a week. They want every transaction
to be as efficient as possible and unfailing in its accuracy." Through e-commerce and new
technologies for information capture and analysis, companies have the ability to track what
customers prefer and need based on purchase history, online habits, click history and other
information. Combining e-commerce with customer intelligence makes online marketing
Many companies are opting to build interactive communities on their websites, whether for
customers, their own employees, or both. Some of these communities or social networks,
allow marketers to learn how consumers feel about a brand, and what they would change
about a product. In a social network, there are some people who join to grab information,
others like to distribute material to others, some just want to simply look around and others
want to shape the activity of the group. According to Voight (2007, p. 15) this type of
interaction "can lead to new products and inspire new positioning and inform marketing
programs." Therefore it is important for marketers to get on the band wagon of innovative
social networking sites, online communities and blogs.
Other social networking sites such as Facebook and MySpace are other forms of online
marketing. Consumers can learn of new products, share experiences, get excited about new
Over the past decade many new, innovative and creative forms of marketing have been
developed to keep up with our always-changing world. The growth of new technologies has
spurred several online marketing avenues including: online communities, ecommerce, social
networks, blogs, interactive media, online banners, pop-ups, and user generated videos such as
YouTube. It is imperative for all companies, small and large, to keep up with new
technologies and interactive forms of marketing to discover target markets and niches, in
consumers' vast options of brands, products and services.
3.5. E-COMMERCE IN TURKEY
Turkey has changed, massively. And with the changes in Turkey, the Turkish internet
environment changed. Turkey has 35 M internet users according to IWS. Also it confirmed by
Comscore and Turkish Telekom. This makes Turkey to the fifth biggest internet population in
Europe after Germany, Russia, UK and France and number 13 in the world.
According to the Interbank Card Center (BKM), the Turkish e-commerce had a volume of
24.4 B TL in 2010. The growth from 2006 to 2010 was 325% and the first half year of 2011
generated a volume of 15.9 B TL. Huge numbers and huge growth rates even if taken into
account that the Interbank Card Center includes also some mail order revenues into the total
number. The number of those users who spent money on the internet is estimated with 6-9 M
users. There is no official number for this but it could be perceived as the consensus range of
If you assume the higher end of this range, the e-commerce penetration rate is 25% (of all
internet users) which still leaves a great potential for the future. In countries like Germany or
UK, the e-commerce penetration rate is around 60%. Exactly this number is creating an
enormous push on the Turkish e-commerce market. This is why e-commerce is hot in Turkey
for founders and for investors.
Turkish internet users have the third highest engagement in Europe, which is measured in
online spent hours. Turkey is 5th
country on Facebook and very close behind the UK. Turkish
people are also very active on other services. Turkey is a first Friendfeed country and the 8th
for Twitter. The Turkish online user is young: 70% of all online users are younger than 34
Another reason for the e-commerce friendly environment is the high credit card penetration.
Turkey has 46 M credit cards in 2010 and a credit card penetration rate around 60%. When we
compared to Europe, the credit card penetration rate is lower than 50% .
Turkish Internet market has two headlines, competition and speed. The competition shapes
everybody and is creating highly efficient markets. Speed is another key word for Turkey. The
entire country is on speed but the internet sector especially. The decision making processes are
fast, the end consumers’ expectation levels are high.
Here are the top 20 of the Turkish e-commerce. The average growth since Oct 2010 was 60%.
(www.sinaafra.com, Why Turkey is Hot, 2012)
Table 3.14 Top 20 of the Turkish e-commerce Company
Top 20 of the Turkish e-commerce Company, www.comscore.com (2012)
E-Commerce industry in Turkey continues to grow, in parallel with expectations. The
Interbank Card Center (BKM) figures for 2012 Q2 show that the industry is approaching end
year’s goals fast. The Interbank Card Center data reveal that the volume of transaction in
ecommerce for 2012 Q2 has been 7.3 billion lira. Nearly 36 million transactions took place in
that period, while achieving 40.5 percent growth compared to the same period in 2011. A
growth of 450 million lira took place compared to Q1 in 2012. In the Q1 of 2012, ecommerce
industry created a volume of 6.9 billion TL, with 37 million 434 thousand transactions. Let’s
have loot at last year’s figures for Q2 for comparison. Ecommerce industry created a volume
of 5 billion 522 million TL in Q2 of 2011, while the number of transactions was nearly 30
million then. Let’s have a look at the amount per transaction. In the second quarter, the
amount per transactions online is 194 TL, while it was 183 TL for the same period last year,
and 184 TL in the first quarter of 2012. This shows an increase of 10 TL compared to the same
period last year.
Table 3.15 E-Commerce Transaction
E-commerce Transaction, http://www.bkm.com.tr/istatistik/sanal_pos_ile_yapilan_eticaret_islemleri.asp (2012)
When comparing the figures on a monthly basis, the decrease that is expected to happen in the
summer starts in June. While there are nearly 13 million 370 thousand transactions in May,
2012, the total volume is 2 billion 600 million lira, however there are only 11 million 874
thousand transactions with 2 billion 474 lira volume in June. This shows a decrease of 125
million lira for 1.5 million transactions.
Although e-commercers complain about a decreasing trend in general in summer, BKM
reveals that the growth continues in summer for the last 3 years, while there is a decrease in
the last quarter of the year. On the other hand, everything goes right for the one hundred
percent growth to be realized for Turkish ecommerce in 2012, as it can be clearly observed by
comparing the figures of last year with those of this year. (www.webrazzi.com, Turkish E-
Commerce grows by 40 percent compared to last year’s Q2, 2012)
Here is the some statics of Turkey Internet Market,
Table 3.16 Turkey Growth
Turkey Growth, http://www.slideshare.net/etiddernek/ecommerce-market-turkey#btnPrevious (2012)
Table 3.17 Top Searched & Selling Categories in Turkey
Top Searched & Selling Categories in Turkey, http://www.slideshare.net/etiddernek/ecommerce-market-
Table 3.18 Top 5 Turkish Web Trends
Top 5 Turkish Web Trends, http://www.slideshare.net/etiddernek/ecommerce-market-turkey#btnPrevious (2012)
Table 3.19 Top 10 Global Markets by Facebook
Top 10 Global Markets by Facebook, http://www.slideshare.net/etiddernek/ecommerce-market-
Table 3.20 Some Association of Turkish Internet Retailers
Turkish Internet Retailers, http://www.slideshare.net/etiddernek/ecommerce-market-turkey#btnPrevious (2012)
4. E-COMMERCE SAMPLES IN TURKEY
Sahibinden.com was established back in 2000 in the beginning of internet development in
Turkey. Taner Aksoy, founder of sahibinden.com and now Vice Chairman of the Board of
Directors of Aksoy Group, came up with the idea to let Turkish buyers search through ads in a
fast and easy way back in 1999. After much preparation within the infrastructure and design in
2000, sahibinden.com had begun.
Sahibinden.com began their broadcasting life with 3 members of staff and with 2.700 ads in 6
different categories. They started using “Photo Courier” service. This is when they contact
their customers and ask them to take pictures of the product that they are going to advertise so
that they can publish them on their website. They have introduced “My Favorites” service.
They informed their customers of new adverts, regarding their interest via SMS service.
In 2002, they started offering “Map” service under real estate category. Then, they started to
rendering “Store” service. This allowing merchants to introduce their products and services on
In 2003, they started using Secure e-Trade (SeT) service allowing a risk-free product delivery
and Money transfer between buyer and sellers.
In 2004, they started offering “Live Support” service providing instant written support to
In 2005, “My Sahibinden Account ”allowing the users to perform their SMS/MMS credit and
doping transactions without using credit cards, EFT and remittance methods.
In 2007, they introduce 3D secure system to increase security of credit card information of the
customers. Also, Megaphotos, Videos were added to ads. Ads supported with “Share your
In 2009, number of users visited per month exceeded 1 billion. And, it was selected as the best
e-trade and best classified ad platform by the jury in Golden Spider Web contest. According to
digital lovemark research by IPSOS KMG, sahibinden.com turned out to be the most popular
website for second-hand product and services.
In 2010, according to digital lovemark research by IPSOS KMG, sahibinden.com was selected
as the website of the year.
And now, according to Google data, sahibinde.com became the 18th in the World, 5th in
in Turkey as for real estate platforms and the 21st
in the World. Plus, 5th
in Turkey for vehicle platforms. (http://www.sahibinden.com/corporate/milestones/,
Hepsiburada.com has been established as an e-commerce site aimed at satisfying internet
users' needs, since 1998. In addition, it provides to its customers a wide product range and the
best quality of service.
As the most recognized e-commerce brand name in Turkey, hepsiburada.com owns modern
facilities of 14.000 m² and a team of approximately 400 employees. It also, has attained 4
million enrolled members, 18,5 million total and 8,5 million unique visitors. Through 36
different categories and more than 360.000 varieties of products, hepsiburada.com obtains
more than 20.000 orders each day. With expansive and strong supplier network,
hepsiburada.com, takes orders from 7 continents. Thanks to fast and secure trading, it has a
chance to set online trading standarts. By following pegged steps, it has become a brand that
makes people love e-commerce in Turkey.
According to "Online Trading Habits" research conducted by Inquision in 2009,
hepsiburada.com is the fastest, most secure, best campaign mounting, well-known and most
visited shopping site.
As a leader of online shopping, hepsiburada.com is awarded by prestigious companies such as
Deloitte and Turkiye Bilisim Dernegi as "The fastest growing company in the last 5 years" and
"The Best Online Shop". Hepsiburada.com has been chosen as "One of the World's Top
Trading Sites" by Cnbc-e business Magazine in 2012. Moreover, hepsiburada.com ranked as
the 18th company in Europe's 500 biggest retailers report prepared by "Internet Retail".
Hepsiburada.com constantly improves its corporate power, technological and logistical
substructure since it was founded. As a leader and a forerunner brand in Turkey, it enables
secure, comfortable and perfect shopping experience. (www.dol.com.tr, 2012)
Ekolay.net was established in 1999 as one of the first portals of Turkey. Since its
establishment, Ekolay.net has been greatly appreciated by internet users. Ekolay.net, with its
constantly expanding content, is one of the most known, used and visited web portals today.
Ekolay.net is one of the first names that come to mind when the internet is considered. It is
Turkey’s meeting point on the internet, knowledge, life and entertainment center with its rich
content channels, such as news, sports, game, finance, city guide, cinema, women, astrology,
health, magazine, video, music, competition and TV.
Blending years of experience with the power and reliability of Dogan Group, Ekolay.net will
continue to be among the leaders of the internet world and always be a favorite brand.
At first sight;
750 thousand unique visitors per day
An average of 250 million page views per month
11 minutes per day spent on the site
The first web portals in Turkey
Content-rich portal in Turkey since 1999
Entertainment, news, sports, video and everything about life
A strong bond and long-term users
The confidence and experience arising from the Dogan Group
Yemeksepeti is the leading online food ordering company in Turkey founded by Nevzat
Aydın- CEO, Melih Ödemiş-CIO, Gökhan Akan-CFO and Cem Nüfusi in 2001.
Yemeksepeti.com is a portal which brings together consumers and restaurants and enables
consumers to order food online, with no extra charge. The platform encompasses over 6,500
restaurants across both independents and chains. Across 41 cities in Turkey and over 500
restaurants in the UAE. It has 1.5 million registered users who submit over 50.000 orders
“We offer our restaurant partners an efficient platform to reach consumers," said Nevzat
Aydın, co-founder and CEO, Yemeksepeti.com. "Consumers benefit from a large choice of
restaurants, the convenience of online ordering and the customer service that ordering from
Yemeksepeti.com guarantees while restaurants access a much broader audience. This new
funding allows us to invest aggressively in the talent, technology and global expansion efforts
But as importantly, the partnership with GA will provide us the strategic support to accelerate
growth to become not only the leading delivery portal but also the leading ecommerce
platform for food related services.”
In addition to its core delivery restaurant marketplace, Yemeksepeti is developing new product
offerings including a marketplace for grocery ordering, a restaurant reservation and review
service and a local delicacies ordering platform. (www.yemeksepeti.com, 2012)
Save your money for a rainy day? akakce.com has been helping Turkish consumers save their
money for a rainy day in a very dynamic retail market since 2000.
akakce.com is the leading and most versatile comparison shopping site for Turkish shoppers.
Over a million cost-conscious consumers visit akakce.com each month to view categorized
product and pricing information from a variety of online retail stores selling electronics,
jewelry, baby goods, home appliances, and more. In addition to product price comparisons,
akakce.com provides consumers with information on a number of different purchase options.
To keep up with the dynamic nature of Turkey’s retail market, akakce.com’s proprietary crawl
and classification technology automatically updates the price of items as often as 12 times a
day. That makes akakce.com one of the most frequently updated comparison shopping sites
worldwide. (www.akakce.com, 2012)
Markafoni is the first and leading Turkish Private Shopping Club, offering several sales events
per week with discounts up to 90% for its members.
It was founded in July 2008. In May 2009, brandsexclusive.com.au, the leading private
shopping site in Australia was launched. The company launched in 2010 modnakasta.ua in the
Ukraine and brandsgalaxy.gr in Greece. In 2011 markafoni city and zizigo.com have been
Markafoni is organizing 500 sales events per month. Every 10 seconds an article is being sold
Live Nation Entertainment (NYSE-LYV) is the largest live entertainment company in the
world, consisting of five businesses: concert promotion and venue operations, sponsorship,
ticketing solutions, e-commerce and artist management. Live Nation seeks to innovate and
enhance the live entertainment experience for artists and fans: before, during and after the
show. In 2009, Live Nation sold 140 million tickets, promoted 21,000 concerts, partnered with
850 sponsors and averaged 25 million unique monthly users of its e-commerce sites.
Biletix is a Live Nation Entertainment Company. It is Turkey's leading source for live
entertainment. Founded in 2000 by Ali Abhary, Dave Dorner and Koc Bilgi Grubu, Biletix
was acquired by Ticketmaster in 2006.
Biletix sells over 4 million tickets valued at more than $90 million for more than 400 event
organizers and 7,000 events per year. They have management offices in Istanbul, Ankara,
Antalya and Izmir. (www.biletix.com, 2012)
Established in 2002, Medyanet is the largest and most effective online advertisement
marketing network of Turkey. It is the pioneer and leading site of online advertisement
services in Turkey. It offers centralized and turnkey solutions to advertisers. It provides
advertisers with a strong network comprising of leading publishers and internet based
communication channels. Plus, it provides measurable and effective advertisement
communication by managing publishing, reporting and performance management processes.
If a brand wants to get into contact with internet users in Turkey, it is enough for it to be seen
in Medyanet network just once. (www.dol.com.tr, 2012)
At first sight;
The most expansive and effective online advertisement marketing network
Network comprised of leader publishers and internet based communication
Regular communication opportunity between web site and advertiser
Opportunity to increase digital performance of brands with ROILAB
Nesine.com as the "official sponsor of bet lovers" is legal, reliable and innovative site of
lotteries. Nesine.com has been serving as the legal electronic vendor of Spor Toto since 2006
and it is the leading site of online betting sector.
Playing coupons is more enjoyable, faster and easier with nesine.com. The chance to win
increases here with comments, ready coupons, guesses, statistics and the latest news.
Moreover, your winnings are in your account in less than an hour. (www.dol.com.tr, 2012)
At first sight;
Leading site of Turkish betting sector
Campaigns that multiply winnings
Bet on phone and iPhone application options
Transfer of earnings to the account in less than an hour with speed and safety
Supporter of Turkish sports through sponsorships and cooperation with TJK
One of the most money-winning brands of Turkish lottery sector.
Founded in 2007, Limango is Germany's leading private shopping community for women and
young families. Members are able to buy heavily discounted, branded goods in limited-time
special offers. The range of goods includes fashion, accessories, shoes, toys, as well as
children’s clothes and shoes from ‘end-of-season’ and ‘second-season’ collections.
Membership is free and without obligation.
In September 2010, the limango outlet concept was added to the business model. At the end of
2011, the limango deal concept was established.
Limango delivers to addresses in Germany and Austria and has also been active in Turkey
since May 2009. In September 2010, the limango outlet concept was added to the business
model. The Otto Group has owned 100% of shares in Limango since 2009.
Turkey’s online travel agency, gezisitesi.com, offers the most enjoyable vacations with the
most appropriate conditions since 1998. The site offers thousands of domestic or international
hotel, tour and cruise options with its constantly updated content.
Visitors may view all details of hotels, domestic-international tours or cruises, view photos
and videos in the gallery section, read the comments of other users who have bought these
products and buy online whatever they like anytime anywhere.
Gezisitesi.com trusts its prices so much that it offers 100% best price guarantee. Those who
wish to enjoy their vacations without any surprises choose it. (www.dol.com.tr, 2012)
At first sight;
Online since in 1998
Turkey’s leading online travel agency
Thousands of hotel, tour and cruise options
Detailed information, comments, photos and videos about hotels, tours and cruises
100% best price guarantee
Special discount offers and vacation opportunities
Wide range of payment options
Being a subsidiary of the world's largest online marketplace eBay Inc., GittiGidiyor is the
most widely-used e-shopping mall in Turkey with more than 7 million registered users, over
500 thousand daily visitors and 4 million listings at any given time. With more than 150
employees, GittiGidiyor.com is one of the leading players in the Turkish online trading
GittiGidiyor.com was founded in 2001 by Serkan Borançılı, Burak Divanlıoğlu and Tolga
Kabatas and is headquartered in İstanbul.
Following eBay's acquisition of the minority stake in 2007, eBay still owns approximately
93% of the outstanding shares of GittiGidiyor on May 2011. By this new investment
GittiGidiyor became fully part of eBay. With more than 17 million internet users and a strong
affinity for online commerce, the investment makes Turkey the 37th market where eBay has a
In GittiGidiyor there is a wide range of products from PC to video games, mobile phones to
clothing, jewelry to camera. Collection materials like money, stamp, prayer beads, books etc.
are also sold in GittiGidiyor.com.
Over 350 thousand sellers can reach many customers from all around Turkey with
GittiGidiyor's high technology infrastructure, services designed for different seller profiles and
intensive advertising activities. The name of the company is the Turkish translation of "Going,
going, and gone".
Evmanya.com is Turkey’s first home-living, decoration, and shopping portal, where you can
find all of your home needs. The site offers you affordable home solutions and applies
principles of design aesthetics to decoration.
Evmanya.com, specialized in presenting Turkey’s most extensive array of decorations, home
electronics, and home-living products, was founded by Aslı Gökdere and became a subsidiary
of Dogan Online in March 2012.
Evmanya.com shares the latest decoration news with its readers in its Home Living section
and also provides an online platform where those who are interested in decoration and home-
living can exchange opinions and ideas.
The site includes over 2000 pieces of unique content, and it shares the innovations and trends
in home decoration with its followers on different platforms.
The iPad version of Evmanya, the monthly digital decoration magazine, will be launched
soon. It is the ultimate center for trends in home decoration. (www.dol.com.tr, 2012)
DayBuyDay is an online shopping site that has revolutionized the standards associated with
"private shopping" world. With the reliability stemming from Dogan Online Group's power
and experience, DayBuyDay introduces consumers to thousands of products in many different
categories. DayBuyDay presents brands that shape the fashion scene, with discounts of up to
90%, through the synergy created by Dogan Online and Cem Hakko, both leaders in their own
industry. Members who have registered with this exquisite world of online shopping enjoy
unique offers and special deals for world brands.
At first sight;
Established in 2011
An average of 200.000 individual visitors per day
1.750.000 page views
Average time spent per visit at the site: 00:06:30
Power and reliability stemming from the cooperation between Dogan Online and
Promotions that multiply savings
A vast array of options of exquisite name brands
An enjoyable shopping experience that makes life easier
The shopping site for stylish homes, Altıncı Cadde, is a private shopping site that presents
home-textiles, decorations, home-accessories, and furniture at discounted prices and for
limited time offers to its members only.
In addition to providing its followers affordable products with concepts designed by renowned
architects and designers, it also offers them ideas they can use to reflect their own style in their
homes. Altıncı Cadde was established in 2011 as a subsidiary of Dogan Online, by Elif
Dürüst, the founder of Aralık Foundation, and Başak İlhan, an e-commerce expert.
Similar to the Industrial revolution that propelled the world to our modern state, the Internet
has become an invaluable catalyst in the human progress equation. An increasing number of
individuals are turning to the web for their daily consumption of news, entertainment, and
search for opportunities.
As Internet access spreads worldwide, most notably in emerging and developing economies,
doing business via digital media will be critical to an organization’s success both online and
offline. Given the speed of technology and innovation, organizations must make strategic
decisions on their digital investments today to ensure their relevance or maintain their
competitive advantage. The Internet provides lower barriers of entry, lower cost, and faster
and greater return on investment than any other communication channel in human history.
That is the power of digital media.
Table 5.1 Trends in Media Consumption
Trends in Media Consumption, www.wan-ifra.org/wpt (2012)
New Business Age is changing the sales game. An explosion in digital and social activity has
shifted the power to customers who are better informed and engaged, while working in more
transparent organizations that require well researched decision making.
Publishing (Polishing) a profile, developing a unique voice, participating in blog commentary,
answering customer questions and identifying niche social networks.
Potential customers are all over the web most have a presence on Linkedin, Facebook,
Pinterest, FriendFeed and even more are on Twitter. But have you considered niche online
communities? Chances are that the big three social networks are not the only, or even the best,
destinations for business research.
Companies can get their information out to the public faster than ever. Instead of printing
inserts and waiting for the Sunday paper to announce their sales, companies now can let the
world know about an exciting promotion through email, social networking, their websites and
Table 5.2 All About Social
All in Social, www.levelwing.com (2012)
Digital media means businesses can reach more customers than ever before. A simple
promotion featuring a giveaway or a freebie can earn a business hundreds or thousands of
communities network. Social media fans and emails and text message subscribers, meaning
that the business can send a message to these consumers with just a touch of a button.
Using digital media means using new technology both to create and support the media. New
technology can be an asset for your business. When you adopt smartphones and laptops in
order to use digital media, you also can positively influence other areas of your business. For
example, such mobile technology makes communication among employees much easier.
Businesses now have many more options that they can choose from when seeking to get word
out about their businesses. Instead of choosing among a TV or radio commercial or a print
advertisement, they can now create media that is a combination of audio, visual, text and
interactive media. This mixed media can appeal to a larger audience with differentiated
Table 5.3 E-commerce Forecast on 2014
E-commerce Forecast on 2014, Euro Monitor International, 2012
Table 5.4 World Population
All Individuals Male Female
Algeria 35980.193 18158.678 17821.515
Egypt 82536.770 41441.730 41095.040
Ghana 24965.816 12701.441 12264.375
Kenya 41609.728 20783.036 20826.693
Morocco 32272.974 15811.780 16461.194
Nigeria 162470.737 82271.437 80199.300
South Africa 50586.757 25065.184 25521.573
Canada 34482.779 17107.917 17374.862
Costa Rica 4726.575 2399.240 2327.335
Cuba 11253.665 5660.014 5593.652
Mexico 114793.341 56612.352 58180.989
United States of America 311591.917 153824.523 157767.394
Argentina 40764.561 19941.089 20823.472
Brazil 196655.014 96745.276 99909.738
Chile 17269.525 8538.078 8731.447
Colombia 46927.125 23080.438 23846.687
Ecuador 14666.055 7343.726 7322.329
Peru 29399.817 14732.579 14667.239
Venezuela 29278.000 14686.485 14591.515
Armenia 3100.236 1443.002 1657.234
Bangladesh 150493.658 76155.492 74338.166
China 1344130.000 697847.822 646282.178
Hong Kong 7071.600 3347.944 3723.656
India 1241491.960 641014.617 600477.343
Indonesia 242325.638 120818.963 121506.676
Iran 74798.599 37932.666 36865.933
Iraq 32961.959 16541.935 16420.024
Israel 7765.700 3833.435 3932.265
Japan 127817.277 62251.889 65565.388
Kazakhstan 16558.459 7953.447 8605.012
Korea, South 49779.000 24812.692 24966.308
Malaysia 28859.154 14633.791 14225.363
Pakistan 176745.364 89808.111 86937.253
Philippines 94852.030 47566.716 47285.315
Saudi Arabia 28082.541 15506.615 12575.926
Singapore 5183.700 2613.091 2570.609
SriLanka 20869.000 10296.407 10572.593
Thailand 69518.555 34157.466 35361.089