Few basic explanations on E-commerce and Internet Marketing. In the world of technology, the Internet plays an important role. The slides take you to very basic insights of the processes involved.

1. E-Commerce &
Internet Marketing

2. What is E-commerce?
E-commerce or Electronic commerce is a
process of buying, selling, transferring, or
exchanging products, services, and
information via electronic networks and
computers.
What is involved in E-commerce?
Buyers
Sellers
Producers
Who are involved in E-commerce?

3. Traditional Commerce E-commerce
Customer can easily identify & authenticate a
merchant by seeing directly to him
It is not easy in this case
Customers can directly talk to merchant.
Communication in the hands of a third party
Customer can only see the representation &
can only is not see the webpage
It is not available all the time It is always available 24* 7*365 hours.
It is slow method It is fast method
Customers just give cash to merchant &
there is no need to give their name or
address. So there is no worry about personal
information
Customer have to give their personal
information to purchase the product
Communication/transactions are done in
synchronous way. Manual intervention is
required for each communication or
transaction
Communication or transactions can be done
in asynchronous way. The whole process is
completely automated
Traditional Commerce vs E-commerce

4. Timeline
1960
Development of the Electronic
Data Interchange (EDI), replacing
traditional mailing and faxing
documents with a digital transfer
from one computer to another.
1979
Michael Aldrich (English inventor
and entrepreneur) connects a
television set to a transaction
processing computer with a
telephone line, thereby creating
‘teleshopping
1981
Thomson Holidays submits
the first ever B2B electronic
transaction using online
technology
1982
France Telecom invents
Minitel, the most successful
pre-World Wide Web online
service
1984
Mrs Snowball makes first
online purchase of groceries
from Tesco via the Shopping
and Information System (SIS)
on her television
1990
Tim Berners-Lee creates the
first World Wide Web server
and browser, using a NeXT
computer. He then develops
URL, HTML and HTTP
1994
Development of a security
protocol – the Secure Socket
Layers (SSL) - encryption
certificate by Netscape provides a
safe means to transmit data over
the Internet
1995
Amazon is launched as an
online bookstore
Launch of eBay
1998
PayPal launches pay service for
online vendors, auction sites, and
other commercial users, allowing
customers to send, receive and
hold funds in 24 currencies
worldwide

5. Cont..
2001
Amazon.com launches its first
mobile commerce site
2002
PayPal is acquired by eBay
2004
The Payment Card Industry
Security Standards Council (PCI) is
formed to ensure businesses
comply with security
requirements. Credit card
companies create PCI data
security standards
2005
YouTube is created by three
former PayPal employees
2007
Apple launches the iPhone
with full web browsing and
downloadable apps
2008
First contactless cards issued
by Barclaycard QR-Codes
(Quick Response Codes) start
to hit the UK
2010
First-generation iPad unveiled
- a tablet computer designed
and marketed by Apple Inc
2011
Adoption of IBM SmartCloud
solutions
2013
Predicted to be the year of
the ‘Phablet’ – larger screen
smart phones

6. EDI(Electronic Data Interchange) & EFT(Electronic Fund Transfer)
Electronic Data Interchange (EDI) is
the computer-to-computer exchange
of business documents in a standard
electronic format between business
partners.
Electronic Fund Transfer(EFT) is the
electronic exchange or transfer of
money from one account to another.

7. E-commerce Statistics across …

8. cont…

9. cont…

10. E-comm
B2B B2C C2B C2C
Business Customer
Business B2B
E.g. TPN
B2C
E.g. Amazon
Customer C2B
E.g. Priceline
C2C
E.g. eBay
E-commerce Types

11. B2B
Business
Organization
Wholesaler Website
Customer
Order
Processing
Orders
Sells

12. B2C
Business
Organization
Customer Website
Order
Processing
Orders

13. C2B
Business
Organization
Website
Customer
Delivers
Product
Idea/Revi
ew
Receives
money
Processes Orders
Places money for
particular service

14. C2C
Customer 1
Website
Customer 2
Receives
money
Receives
Product
Want to sell
products
Want to buy
products
Places Advertisements

15. Advantages of E-commerce
•Buying/selling a variety of goods and services from one's home or business
•Anywhere, anytime transaction
•Can look for lowest cost for specific goods or service
•Businesses can reach out to worldwide clients - can establish business
partnerships
•Order processing cost reduced
•Electronic funds transfer faster
•Supply chain management is simpler, faster, and cheaper using ecommerce
Can order from several vendors and monitor supplies. –
Production schedule and inventory of an organization can be inspected
by cooperating supplier who can in-turn schedule their work
Disadvantages of E-commerce
•There is no guarantee of product quality.
•There are many hackers who look for opportunities, and thus an ecommerce site,
service, payment gateways, all are always prone to attack.

17. Networking
E-commerce is based on Client-Server Architecture.
A client can be an application, which
uses a Graphical User Interface (GUI)
that sends request to a server for certain
services
The server is the provider of the services
requested by the client.
E-commerce
A client refers to a customer who
requests for certain services.
The server refers to the business
application through which the services
are provided.

18. 2 Tier 3 Tier
Client-
Server
Two-Tier Three-Tier

19. Intranet
Intranet is a computer network system in which a specific organizational
systems share information, computing services and operational systems with
each other by using an Internet (IP) technology.
Internet
Internet is a clustered system of interrelated computer networks that uses a
standard Internet protocol (IP) or transmission control protocol (TCP) network.
Extranet
Extranet is a kind of computer network that allows the outside users to access
the Intranet of organization.

20. Architecture of E-commerce

21. MARKETING
Traditional Marketing

22. Traditional Marketing Online Marketing
It is difficult to measure. You cannot know
how many people read your advertise and
how many took favorable action upon
viewing it.
It is measurable. You can know the number
of people who viewed the online advertise,
and the number of ones who purchased the
product.
It is not cost-effective. It is more cost-effective
It is not so good for brand building. It is fast and efficient for brand building.
It is slow method It is fast method
It may leave users’ queries unanswered as
printing or narrating complete information
about the product or service may not be
always feasible.
Customer have to give their personal
information to purchase the product
Traditional Marketing vs Online Marketing

23. Components of Online Marketing
SEO
Banner
Forum Social
Network
Analytics
Affiliate
Marketing
Blog
Email
Online
Marketing

24. Marketing Concepts
Production Concept
• Concentrate on achieving high production efficiency, low costs, and mass
distribution.
• Consumers prefer products that are widely available and inexpensive.
• Emphasis on low production costs, high production efficiency and mass
production
Eg. Automobiles
Product Concept
• Consumers will favor products that offer the most in quality, performance and
innovative features.
Eg. Electronic and mobiles
Selling Concept
• Management focuses on creating sales transactions.
• Aim is to sell what the company makes rather than making what the market wants.
• Selling concept is practiced with unsought goods(Unsought goods are that buyers
do not normally think of buying, such as insurance or blood donations)

25. Marketing Concepts
Marketing Concept
• Marketing concept works on facts gathered by its “market and customer first”
approach.
• Undertakes activities such as; market research.

26. Marketing Concepts
Convenience
Usability
Quality
Functionality & Performance
Price
Lifestyle
Status
Culture
Risk
Values
Experience
Quality of Life
Product Concept

27. Segmentation, Targeting and Positioning (STP Process)
Segment your market.
Target your best customers.
Position your offering.

28. Segmentation, Targeting and Positioning (STP Process)
Segmentation
• Market segmentation divide your customers into groups of people with common
characteristics and needs.
Demographic – By personal attributes such as age, marital status, gender, or
occupation.
Geographic – By country, region, state, city, or neighborhood.
Psychographic – By personality, risk aversion, values, or lifestyle.
Behavioral – By how people use the product, how loyal they are, or the benefits
that they are looking for.
Targeting
• Decide which segments to target by finding the most attractive ones.
• Select one or more segments.
• You typically need to customize marketing campaigns that appeal to each.
Is this segment large enough to be worth my time?
Does this segment have the potential of being profitable?
What sort of competition will I face by targeting this segment?

29. Segmentation, Targeting and Positioning (STP Process) Cont..
Positioning
• Positioning is how you align your
brand or products in the target
market.
• Your goal is to identify how you
want to position your product to
target the most valuable customer
segments.
• Understand how each segment
perceives your product, brand or
service.
• Must be done in a way that
creates value for your offering
meeting the7Ps

30. Micro and Macro Environment
Micro-environment elements are close to the firm and incorporate the suppliers,
showcasing delegates, consumer markets, public, competition and marketing
intermediaries-inward environment.
The Macro environment is the uncontrollable factor of the company affecting the
entire industry of the region or country.

31. Micro and Macro Environment
MICRO MACRO
Competitors Population & Demographic,
Organization Economic
Suppliers Socio-Cultural
Market Technological
Intermediaries Legal & Political
Customers Environmental

32. Marketing Funnel