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Ch.2-Part 1-Key Concepts in E-Commerce.pdf
- 1. Dr. Ahmed Mounir 2 KEYCONCEPTS IN E-COMMERCE: E-BUSINESS, DIGITAL MARKETS AND DIGITAL GOODS IN A GLOBAL MARKETPLACE
- 2. Content 1. E-Commerce& Digital Marketing 2. The Importance of Digital Marketing for The Business 3. Digital Marketing vs. Traditional Marketing 2
- 3. 1. E-Commerce &Digital Marketing E-commerce is a like any type of business where buying and selling involve the Internet. As this industry solely based on the internet, Digital Marketing plays a major role in its growth because it is the only tool that can help in any business growth hacking through digital mediums. Digital marketing (DM) is a subset of marketing that is used to promote a brand or product using one or more electronic technologies. It refers to advertising delivered through digital channels such as search engines, websites, social media, email, and mobile apps. The goal is to influence target customers in taking action. Companies can reach millions of customers within hours and a couple of clicks. Now that’s true power available to anyone. 3
- 4. 2. The Importanceof Digital Marketing for The Business Digital markets are very flexible and efficient because: they operate with reduced search and transaction costs, lower menu costs (merchants’ costs of changing prices), greater price discrimination, the ability to change prices dynamically based on market conditions. In dynamic pricing, the price of a product varies depending on the demand characteristics of the customer or the supply situation of the seller. Digital markets provide many opportunities to sell directly to the consumer, bypassing intermediaries, such as distributors or retail outlets. 4
- 5. 2. The Importanceof Digital Marketing for The Business 5 60 $ 40 $ 20 $
- 6. 3. Digital Marketingvs. Traditional Marketing Digital marketing differ from traditional marketing in the following: More Cost-Effective Than Traditional Marketing Delivers Conversions Helps Companies Generate Better Revenues Facilitates Interaction with Targeted Customers Caters to the Mobile Customer Builds Brand Reputation Aids companies earn the customers' Trust Let's companies be prepared for the IoT 6
- 7. 3. Digital Marketingvs. Traditional Marketing Digital marketing differ from traditional marketing in the following: Other benefits to digital marketing Introduce more options to customers to choose how they want to receive the content. Digital marketing platform use Social Media to allow companies to get interacts with their targeted customers. Analytics tools make it easy to companies measuring virtually their Digital marketing strategies. Companies can analyze and understand what exactly their customers is looking for or what their expectations are. Real-Time Results. 7
- 8. 3. Digital Marketingvs. Traditional Marketing 8 Traditional Marketing Digital Marketing Marketers can easily reach their target local audience. Not only target local audience can be reached, but as well as the audience from all around the globe. Traditional marketing has a more personal approach since marketers can have a person- to-person relationship in informing the public about their brand’s name. Since it can reach a finite audience, getting more popular is easy. There is no need to be physically present in introducing the brand’s name to the audience. The public can have a hard copy of materials of which they can read or browse through over and over again. The public can also have access on different content on websites and videos on Youtube or video sharing websites. It can be easily understood by the public because they are already exposed to this kind of strategy. It is something that most people can have access on. Strategies implemented can reach target market with Internet connection. Most target audience is groups of people who have digital devices and are always online 24/7.
- 9. 3. Digital Marketingvs. Traditional Marketing 9 Traditional Marketing Digital Marketing There is only a little interaction between the medium used and the customers. It is more of providing information to the public that the brand exists with the hope of these people patronizing the brand. Interaction is very possible especially with the use of social media networks. Marketers take advantage of the convenience of communicating with their target audience aiming to get positive customer feedback. Print or radio advertisements can be very costly. Printing materials can be expensive and you need to hire people to distribute these. Businesses have the need to invest money for this marketing strategy. Digital marketing is cost-efficient. The use of social media websites is free of charge. Though some invest on paid ads online; however, the cost is still cheaper compared to traditional marketing. Results on this marketing strategy cannot easily be measured. Marketers need to conduct survey and finding a statistician to interpret results is a must. Data and results are easily recorded. With Google Analytics, specialists can easily check if the strategies are working. If not, they can easily create better content for better marketing.