ECOMMERCE AND INTERNET MARKETING DEFINITION • Buying and selling of products through • Electronic systems viz INTERNET and • Other Computer Networks. • Generally known as sales aspect of E-business • Consisting of exchange data for financing and • Making payments through Business Transactions. • It includes Business to Business (B2B), Business • to Consumer (B2C) and also Value Chains. • Examples: • Credit Card payments for online buying, • Advertisement Revenue online, Trading Stocks • Online, Pay per downloads thro Websites.ADVANTAGES/DISADVANTAGESWhile it offers many advantages to Cos and Customers, Ecommerce causes some problemsToo.ADVANTAGESEasy to find any product online, Buying and selling Faster, Timely reach to CustomersNo Geographic limitations. Better product with lesser Costs. Easy to start any Business,Branches need not be opened, No Physical constraints, You may select any productFrom various suppliers.
Disadvantages:Can start any Business easily. But beware of Cheaters who snatchesCustomers Money.No guarantee for qualitative product.There is always Hackers threat. Hence Ecommerce and paymentgateways are prone to many attacks.Unexpected technical problems causes some process hurdles.Minimum chance of Direct Customers, hence no interaction withthem.BRIEF HISTORY OF E-COMMERCE Way Back to 1970s, internal business networks designed to streamline certain business processes, suchas filling customer orders and sending invoices. Once electronic transactions were possible, it was only amatter of time before home computer users would be offered the opportunity to purchase itemsthrough the internet.In 1980, CompuServe introduced Electronic Mail which allowed individuals to purchase products onlinefrom 110 different businesses. With a few more developments in internet technology in the early 1990s,including better encryption companies processing credit cards online, the world was truly on its way tobuying and selling on the internet.Globally, ecommerce is expanding rapidly. It took approximately four years for developing securityProtocols like HTTP and DSL which allowed fast access and connection to Internet. So theExplosion began and continued.Scope of ECOMMERCEWhen you think of Electronic or Internet Economy, you may find threeComponents as given under:(1) Electronic Commerce (e-Commerce)Any transaction completed over a computer-mediated network that transfers ownership of, orrights to use, goods or services. The value of goods and services sold on-line. The term "on-line"includes the use of the Internet, Intranet, and Extranet, as well as proprietary information thatruns over systems such as Electronic Data Interchanges (EDI) networks.(2) Electronic business supporting infrastructureThe economic infrastructure that is used to support electronic business processes and conduct
electronic commerce transactions. It includes hardware, software, telecommunication networks,support services, and human capital used in electronic business and commerce.(3) Electronic business processesProcesses that a business organization conducts over a computer-mediated network. Businessorganizations include any for-profit, governmental, or nonprofit entity. Examples of on-line e-business processes include the following:* Purchasing* Selling* Vendor-managed inventory* Production management* Logistics* Communication and Support Services such as on-line training and recruitingBusiness strategy in Electronic Commerce ;Dynamic process of developing e-commerce business strategy starts with the same process ofplanning and preparation as any other business activity. Whether this is a new venture, or you wantto get your existing business ready to trade online, you need to consider the following: Do you want to trade conventionally as well as online, or are you going to concentrate on e- commerce? What are your strengths, weaknesses, opportunities and strengths? This is called a SWOT analysis. How suitable are your products and services for online selling, and do you need to make any changes? How competitive are your prices, and are there any specific market opportunities that an online store will open up? Does your competition use e-commerce, and if so can you see what makes them successful (or not)? What can you do to differentiate your brand and your offering in the market?Setting your goalsThe answers to the questions above will enable you to develop objectives or goals for your e-commerce business. A good test is to ensure that these are SMART – they should be: Specific: the goals should be clear and straightforward, and give a precise indication of what you want to achieve – not just ‘develop an online store’ but ‘develop an online store by the start of my new financial year’. Measurable: this is how you will judge whether you have been successful, so your goals should be something you can measure or judge, such as the number of people who register with your customer
loyalty scheme, or the value of online sales. Remember that if you can’t measure it, you can’t manage it. Achievable: your goals should be within your reach, otherwise you are likely to be frustrated – but that doesn’t mean they should be easy. Your e-commerce goals should stretch you, you may need to develop additional skills, and you will almost certainly need to change the way you run your business. Relevant: your goals should mean something to your business, and those for your e-commerce strategy should be in line with your overall business objectives. Time-related: you need to set a target date for achieving your e-commerce goals. This will ensure you to focus on getting the job done, and stop it drifting.Your e-commerce business strategy will always be in line with these SMART goals, so test eachelement of the strategy as it develops against your objectives. If it doesn’t meet your objectives,change the strategy.VALUE CHAINIs a tool developed by Dr. Michael Porter of Harvard Business School.In order to assess the overall performance of a Company, source ofCompetitive advantage could be assessed to know :1. Whether the present activities are yielding good results2. Or shall we have to lower costs than that of competitors.The firm activities include Production, Sale and transfer of productsLogistics - Receipt, Storing, Distribution of Inputs including InventoryCointrol.Outbound logistics - Processing of orders, Warehousing finished Goodsand delivery’s.Marketing and Sales – How the buyers will be convinced to purchasethe product. Example : Advertising, promotion and Sales
Support Activities:Task of purchasing inputs like Raw Material,Equipment and Labour.Technology Development: is intended to improveThe product and process.Human Resource ManagementInvolved in Recruiting, Training, DevelopmentAnd Compensation.Firm Infrastructure : General Management, Planning,Finance, and Accounting are categorized. ThisTool is useful for assessing discreet activities and howThey inter act with one another and affect each othersCost and performance.Value activities are distinct both physically andTechnologically. Some activities are more vital thanothers depending upon industry. Marketing activitiesAre vital in a very competitive consumer Goods Industry.
Some activities are directly involved in creating value forThe Buyer. Some activities are primarily involvedIn Quality Assurance. (Monitoring , Inspecting andTesting)Some activities should be combined if they are ofNo importance to the best advantage of the firmIf the economics of both are similar.Analysing the Chain is intended to be sure of includingSub-contracted or outsourced portions.Vertical linkages can be provide opportunities to the firmTo enhance its competitive advantages.Value Chain of a firm is a part of Value systemWhich is the larger stream of activities from suppliers toBuyers.Value is created when a firm creates competitiveAdvantage for its Buyers.The Business Unit is the correct level to construct
A Value chain and application to entire IndustryIs not recommended.Value Chain analysis on an industry level has beenPerformed in numerous industry studies all over.DEFINE BUSINESS TO BUSINESS? Any Commercial transaction arises between businesses such asManufacturer and wholesaler, or between Wholesaler or Retailer is calledB2B Business to Business. B2B Business to Business Branding is a term usedIn Marketing. Similar terms are B2C Business to Consumer, B2G Business toGoverrnment.1.Companies Buying from and selling to each other online2. B 2B evolved supply chain management as many companies outsourceParts of their supply chain to other trading partners.3.Buyer and seller must negotiate product specification, price, and delivery.4. A company’s system should be able to communicate without human inter action.