Lecture_one.pptx

Electronic Commerce and
Digital Marketing
LECTURE 1
Faculty of Computing and Informatics
Wilson Tumuhimbise, PhD
7/12/2023 "The Just shall live by faith" Hab 2:4 1

Course details.
• COURSE NAME: Electronic Commerce and
Digital Marketing
• COURSE CODE: BIT3202
• LEVEL: YEAR THREE, SEMESTER 2
• CREDIT UNITS: 4
• CONTACT HOURS: 60

Time and venue
Tuesday 14:00-17:00 (ROOM 2)

COURSE DESCRIPTION
• The course provides a detailed
understanding about e-commerce and
Digital Marketing concepts, strategies, and
implementation
• This course will arm students with the
essential principles and practices of
marketing in the digital economy.

COURSE OBJECTIVES
1. Gain an understanding of how the digital economy
works
2. Understand the key elements of building an effective
digital marketing campaign
3. Develop the critical insights necessary to succeed in e-
commerce and digital and social media marketing
4. How to leverage new models in business and e-
commerce to increase profitability
5. Successful Social media and digital marketing
techniques
6. Real-world application of digital marketing and e-
commerce methods
7. How to market yourself and your products more
effectively and efficiently

LEARNING OUTCOMES .
• By the end of this course, the student should be
able to:
• Create and/or improve a strategy for measuring and improving
digital media effectiveness
• Review current approaches and identify areas for improving
performance Search Engine Optimization (SEO)
• Pay Per Click (PPC) Advertising including Google AdWords,
LinkedIn Ads, Facebook and Instagram Ads
• Social media marketing tips and tools for Facebook, Twitter,
Instagram, Content Marketing, etc.
• Online advertising including ad networks and behavioral
targeting
• Optimizing website and blog content and copy
• Digital Marketing Strategy and Planning

COURSE ASSESSMENT
• Coursework/ continuous assessment
(40%)
• Final examination (60%)

MODE OF DELIVERY.
• Lectures, practical sessions, group work, hands
on sessions case studies.
• Group presentations based on case studies,
scenarios of e-commerce and digital marketing
projects or other related projects to demonstrate
by the skill, knowledge, tools, methods and
techniques acquired in order to engage the
students.

Class rules.
• Put your phones in silence
• Pay attention in class
• Respect one another
• Active participation in class
• Late coming in class is unacceptable
• Dodging class is highly discouraged
• Copying and plagiarism are highly
discouraged and will lead to loss of marks

Rules
• Meeting deadlines for submitting course
works and presentations will lead to
individual success.
• Course works, tests and final exam are
compulsory.
• A five minute break during the Lecture.

READING MATERIALS
1. Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing.
Pearson UK.
2. Chaffey, D. and Smith, P.R., 2017. Digital marketing
excellence: planning, optimizing and integrating online
marketing. Taylor & Francis.
3. Baker, M.J. and Hart, S. eds., 2016. The marketing book.
Routledge.
4. Heinze, A., Fletcher, G., Rashid, T. and Cruz, A., 2016.
Digital and social media marketing: a results-driven
approach. Routledge.
5. Dodson, I., 2016. The art of digital marketing: the definitive
guide to creating strategic, targeted, and measurable online
campaigns. John Wiley & Sons.

Expectations
•?????

Assignment 1
Make a detailed report about the following e-commerce
projects.
Jumia, Jiji, Alibaba, SafeBoda, e-bay, Amazon
With focus on the following for each of those projects.
– History and background of these companies
– Company description and activities
– The founder/s
– Goods and services provided
– Business Model employed in these companies
Deadline 15th June 2023 by 5pm. Send softcopies to
twilson@must.ac.ug

LECTURE 1
By the end of this lecture, students should be
able to
• Define e-commerce
• Describe the 5C model of E-commerce
• Highlight benefits and challenges of e-commerce
• Describe different e-commerce models

Introduction to E-Commerce
• E-Commerce means Electronic Commerce, also known
as internet commerce
• E-commerce is the buying and selling of goods, products,
or services using the internet as a medium whereby the
buyer gets to see the products online, order it and make
payment through the mode accepted by the seller.
• The seller then delivers these products to the consumer
via available and accepted means
• Online stores like Amazon, Ebay, Olx are examples of E-
commerce websites

Definition: Electronic Business
(U.S. Census Bureau)
• An process that an organization conducts
over a computer-mediated network
–Production – procurement, ordering, stock
replenishment, payment processing, production
control, etc.
–Customer-focused – marketing, selling,
customer order processing, etc.
–Internal or management-focused – employee
service, training, recruiting, information sharing,
etc.

Definition: Electronic Commerce
• Any transaction completed over a
computer-mediated network that involves
the transfer of ownership or rights to use
goods or services.
• Completed transactions may have a zero
price.

Definition: Electronic-Business
Infrastructure
• The share of total economic infrastructure
used to support e-business processes and
conduct e-commerce transactions.
–Hardware
–Software
–Telecommunication networks
–Support services
–Human resources

Definition: Computer-Mediated
Networks
• Electronically-linked devices that
communicate interactively over network
channels.
–Computers, personal digital assistants, web TV
–Internet-enabled cellular phones, interactive
telephone systems
–Internet, intranets, extranets, telecommunication
networks, EDI

Potential Benefits of E-Business
• More product/service selections
• Higher Productivity
• Improved accessibility and convenience
• Better availability of information
• Shorter lead time
• Improved communication
• Stronger competitive position

The 5C model consists of E-Commerce
• Commerce: A market place that consist of the buyers
and sellers, transaction terms and facilities to perform
business transactions. This helps create and strengthen
a universal supply chain.
• Collaboration: the internet being a network of networks
supports interrelationships among businesses and
individuals in a manner that is not limited by space, time,
national or organizational constraints.
• Communication: the internet technology and the WWW
provide an interactive medium for self-expression
(reviews or comments of clients) and self-presentation
(as a means for businesses to showcase their products
or services; a kind of marketing)

The 5C model consists of E-Commerce
• Connection: it is likely that different businesses use
different software platforms to run their business
processes, leveraging on the advantages of the internet,
it is achievable to incorporate the different software
platforms of different businesses that want to collaborate.
• Computation: large scale sharing of resources is
paramount to a successful business transaction. The
internet technology facilitates this to ease successful
completion of business processes.

Features of E-Commerce
• Wider range of audience: with the internet as the
backbone of ecommerce, business transactions can take
place across national boundaries in a more convenient
and cost-effective form.
• Universal standard: internet technology has a universal
standard, its not a different one in US and a different one
in Uganda.
• Rich content: ecommerce allows for integration of the
various forms of content, one can use video, audio,
combination of two or all three.

Features of E-Commerce…
• Ease of interaction: clients interact with businesses
from the comfort of their homes. There is no need to
physically visit a store as in the place of the traditional
commerce.
• Personalization or customization: the various
technologies integrated to the internet allows businesses
to send personalized/customized messages that can be
delivered to individuals or even groups.
• Ubiquity: the internet is widely available and accessible
from anywhere at any time; at home, at work via mobile
devices like a mobile phone phone, ipad, and even PCs.

Features of E-Commerce..
• Business digitalization: this involves comprehensively
using the internet and other tools of Information and
Communication Technologies to link information and
cooperate seamlessly every stakeholder of the business.
• Automation of business processes to increase delivery
speed

Types of E-Commerce
• Customer-to-Customer (C2C)
• Business-to-Customer (B2C)
• Business-to-Business (C2C)
• Customer-to-Business (C2B)
• Business-to-Government (G2B)
• Consumer-to-Government (C2G)
• M-commerce

Business to Business (B2B)
• Only the companies are doing business with each other
• The final consumers are not involved
• Involve the manufacturers, wholesalers, retailers etc
• B2B is simply the electronic exchange of products,
services or information between businesses rather than
between businesses and consumers as expected
• Examples include companies such as Xero (offers
inbound marketing and sales and accounting software for
small to medium businesses), AWAMO (a mobile,
biometric banking software tailored for microfinance
institutions and SACCOs)
• B2B is the largest form of ecommerce and it requires high
level of security in exchanging data

Business to Customer (B2C)
• The business sells directly to customers
• Customers can browse the website, see reviews and
order directly from the business.
• After the order, the good is shipped directly to customers
• Examples: Amazon, Jumia
• Businesses strive to reach individuals
• Advertisers can assist in the marketing process to ensure
that these businesses reach the intended audiences like
digital news, photos, music, videos and even artworks

Customer to Customer (C2C):
• The consumers are in direct contact with one another and
they can buy or sell freely without any middleman.
• C2C enables consumers to buy and sell used goods like
furniture, mobile phones or electrical appliances.
• Examples of websites that use this model are: OLX and
Jiji
• C2C offers a means for consumers to set their rules for
the business transaction, they set their prices as well and
the buying party checks for themselves if the set prices
and rules are favorable before making a deal with the
selling party.

Consumer to Business (C2B)
• This is the inverse of business to consumer
• Here, it’s the consumers that sell to the business
• Freelancers and businesses that buy from them are a
perfect example for this model
• Under C2B, Individuals (that is, consumers) create value
(could be goods or services) that businesses consume.
• A programmer can give his/her service and abilities to
utilize and maintain the online resources of a system
• A platform known as “fiverr (https://www.fiverr.com/)”
works on this model

Business to Government (B2G)
• Also known as Business to administration
• Involves exchange of data between businesses and the
government via the internet
• An example is when a business wants to advertise its
product or service at the government level.
• Services in this model include legal documents, social
security, fiscal measures etc.

Consumer to government (C2G)
• Also known as Consumer to administration
• Entails electronic transaction between individuals
(consumer) and the government.
• When an individual makes a request or a query from the
government, it works on the model of consumer to
government ecommerce.
• The model creates a way that is easy for communication
between governments and individuals.
• Examples include payment of health services, Traffic
penalty fees, driving license, distance learning,
information dissemination

M-commerce (mobile commerce)
• The buying and selling of goods and services through
wireless technology (handheld devices such as cellular
telephones and tablets.
• M-commerce enables users to access online shopping
platforms without the use of a desktop computer
• M-commerce services include mobile shopping
(customers maker purchases using their mobile devices),
mobile banking (customers conduct financial transactions
via mobile phones), and mobile payments (customers
pay for products they buy in person using a mobile
device)

Examples of E-Commerce
• Retailing and Marketing
• Entertainment and Travel
• Education and Learning
• Banking and Investment
• Health-Care
• Auction
• Personal and Business Service

Benefits of E-Commerce
• Cheaper cost: E-Commerce is much cheaper because a
physical store which would have higher cost of operation
and maintenance is not necessary..
• Wider reach: There is no restriction, no limitation to how
large the audience to reach will be. Businesses can have
as many clients as possible.
• Direct (face to face) interaction is not needed: unlike the
traditional commerce. Email, live chats are used for these
purposes.
• E-Commerce removes geographical barriers. You can
buy and sell from any part of the world.

Benefits of E-Commerce
• Goods are delivered quickly and easily with little efforts
on the side of the consumer.
• Complaints are addressed quickly and consumers can
see reviews of other consumers before purchasing an
item.
• E-Commerce saves time, effort and energy of the
consumers and of the seller.
• Customers get to shop any day at any time as there is no
closing hour like physical stores.

Disadvantages of E-commerce
• Security: The platform being used for the ecommerce
can be hacked which can lead to clients’ details being
compromised and used for illegal and fraudulent
purposes.
• Trust: It might take time for the ecommerce to get clients
that will actually patronize it due to lack of physical store
which makes tracing very difficult or even impossible.
• Credit card fraud is another security threat that
ecommerce is exposed to and this is like the most
common and most accepted means of payment.

Competitive Advantages of
E-Commerce
• Offers personalized products/services
• Enables customer self-service
• Reduces lead time
• Reduces overall cost for seller and customers
• Improves utilization of resources throughout
the supply chain
• Increases customer satisfaction and loyalty
• Expands to global marketplace

Key Ideas in E-commerce
• D2C: means direct to consumer. Middle men are cut off
and business deliver their product or services directly to
the consumer without wholesalers or retailers.
• White labelling: when a business applies its brand name
to a generic product after purchasing from a distributor. If
a food business buys snacks from a distributor of food
company and then applies its own business brand name
on the snacks it has purchased, that is white labelling.
• Private labelling: a business makes a deal with the
manufacturer directly to create a unique product specially
for the business with an exclusive right for them as the
sole seller.

Key Ideas in E-commerce
• Wholesaling: involves a retailer carrying out the business
process like a wholesaler by offering a discount in price when
its products are sold in bulk. The business will have piece
prices and bulk prices so they can sell in bit and also in bulk
but there will be a discount in price for bulk purchase.
• Drop-shipping: is a way of marketing and selling items that
will be delivered by a third party (manufacturer or supplier).
The seller accepts customer orders without keeping stock on
hand. When an order is received, they send those orders to
another company to ship the goods directly to the buyer.
Because they are middlemen, they may charge more money.
Shopify is a good example of drop-shipping platform.
• Subscription: consumers pay certain agreed amount to
business and business delivers the equivalent good or service
to consumer regularly at scheduled intervals. A good example
is DSTV subscription

Question
•Is there any question?

Guiding questions
Write short notes on the following e-commerce models
• Customer-to-Customer (C2C)
• Business-to-Customer (B2C)
• Business-to-Business (C2C)
• Customer-to-Business (C2B)
• Business-to-Government (G2B)
• Consumer-to-Government (C2G)
• M-commerce
Describe the 5Cs in E-commerce
Describe any three benefits and disadvantages of e-commerce
Describe atleast five key ideas in e-commerce

E-commerce Project
• In your groups, develop an E-commerce Website of your
choice borrowing an idea from the existing sites.
• The website should have a catalogue, enable the
processing of orders and the tracking the shoppers
Information.
• Presentation date: 1st August 2023

References
• .

Lecture_one.pptx

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