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E-Commerce For Retail
Introduction Session 1 and 2
Prof Sanjiva Shankar Dubey
BIMTECH
About the course
Course Learning Goals (CLGs)
Develop an appreciation of how technology is transforming how business is
conducted today;
Understand the different aspects of technology involved in E-enabling an
organization; and
Different business models that are being used by organizations to address their
E-Business initiatives
Course Intended Learning Outcomes (CILOs)
This course will equip a student to
CILO1 -Basic concept of E-Commerce
CILO2 - Demonstrate effective analytical and critical thinking skills to make an
appropriate business related decisions.( PILO-3A)
CILO3 - Illustrate how E-Commerce technologies and decision-support tools can
be utilized to the advantage of business operations.
CILO4 –Impact of E-Commerce for business
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Brief History of EC
EC applications first developed in the early 1970s --- Electronic funds
transfer (EFT)
Limited to:
Large corporations
Financial institutions
A few other daring businesses
Electronic data interchange (EDI)—electronic transfer of documents:
Purchase orders
Invoices
E-payments between firms doing business
Enlarged pool of participants to include:
Manufacturers
Retailers
Service providers
Internet became more commercialized in the early 1990s
Stock trading
Travel reservation systems 9
E-commerce is a new way of conducting
business, and as with any other new application
of technology, it presents both opportunities for
improvement and potential problems
E-commerce requires the careful planning and
integration of a number of technology infrastructure
components
Outline the key components of technology
infrastructure that must be in place for e-commerce to
succeed
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Users of e-commerce technology
must use safeguards to protect
themselves
Identify the major issues that
represent significant threats to the
continued growth of e-commerce
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An Introduction to Electronic
Commerce
Business-to-consumer (B2C) e-commerce: customers
deal directly with the organization, avoiding any
intermediaries
Business-to-business (B2B) e-commerce: participants
are organizations
Consumer-to-consumer (C2C) e-commerce:
participants are individuals, with one serving as the
buyer and the other as the seller
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Advantages
Quick
Easy
Time Saver
Variety of choices
Comparison
Low cost – don’t need a
physical store
Disadvantages
Security ---- very important
Speed of internet access
Malfunction of website
Physically touching the product
Shipping and handling
Who to deal with when customer
is not satisfied
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Definitional Distinctions
Electronic Business
Electronic Commerce
Electronic Marketing
Electronic shopping,
Virtual malls, etc.
Electronic Commerce:
Definitions and Concepts
e-business
E-business is a broader definition of
EC that includes not just the buying
and selling of goods and services, but
also
Servicing customers
Collaborating with business partners
Conducting electronic transactions
within an organization
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Electronic Commerce:
Definitions and Concepts
1.1
Electronic Commerce:
Definitions and Concepts
Traditional commerce: all dimensions
are physical
Brick-and-mortar organizations
Old-economy organizations
(corporations)
Perform all business off-line
Sell physical products by means of
physical agents Chapte
r 1
Prentice Hall 18
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Electronic Commerce:
Definitions and Concepts
PURE VERSUS PARTIAL EC
Pure EC: all dimensions are digital
virtual (pure-play) organizations
Organizations that conduct their business activities solely
online. (eBay, AOL –media services)
Partial EC: a mix of digital and physical
dimensions
Click-and-mortar (click-and-brick) organizations
Conduct EC activities
Do their primary business in the physical world
Examples: GE, IBM, Intel
Chapte
r 1
Prentice Hall 19
Electronic Commerce:
Definitions and Concepts
INTERNET VERSUS NON-INTERNET EC
Non-Internet EC is the use of EC technologies
on private (as opposed to public) networks.
intranet
An internal corporate or government
network that uses Internet tools, such as
Web browsers, and Internet protocols.
extranet
A network that uses the Internet to link
multiple intranets.
Chapte
r 1
Prentice Hall 20
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Electronic Commerce:
Definitions and Concepts
Interorganizational information systems (IOSs)
Communications systems that allow routine
transaction processing and information flow
between two or more organizations.
intraorganizational information systems
Communication systems that enable
e-commerce activities to go on within individual
organizations.
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Electronic Commerce:
Definitions and Concepts
Internet EC is the use of EC technologies on public (as opposed to private)
networks.
electronic market (e-marketplace)
An online marketplace where buyers
and sellers meet to exchange goods,
services, money, or information.
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The EC Framework,
Classification, and Content
An EC Framework
EC applications supported by
infrastructure and 5 support
areas
People
Public policy
Technical standards and protocols
Business partners
Support services 25
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The EC Framework,
Classification, and Content
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The EC Framework,
Classification, and Content some more
consumer-to-business (C2B)
E-commerce model in which individuals use the
Internet to sell products or services to
organizations or individuals who seek sellers to bid
on products or services they need.
consumer-to-consumer (C2C)
E-commerce model in which consumers sell
directly to other consumers.
mobile commerce (m-commerce)
E-commerce transactions and activities conducted
in a wireless environment.
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The EC Framework,
Classification, and Content
location-based commerce (l-commerce)
M-commerce transactions targeted to
individuals in specific locations, at specific
times.
intrabusiness EC
E-commerce category that includes all
internal organizational activities that
involve the exchange of goods, services, or
information among various units and
individuals in an organization.
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The EC Framework,
Classification, and Content
business-to-employees (B2E)
E-commerce model in which an organization
delivers services, information, or products to its
individual employees.
collaborative commerce (c-commerce)
E-commerce model in which individuals or groups
communicate or collaborate online.
peer-to-peer
Technology that enables networked peer
computers to share data and processing with each
other directly; can be used in C2C, B2B, and B2C
e-commerce.
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The EC Framework,
Classification, and Content
e-learning
The online delivery of information for
purposes of training or education.
e-government
E-commerce model in which a government
entity buys or provides goods, services, or
information from or to businesses or
individual citizens.
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The EC Framework,
Classification, and Content
exchange
A public electronic market with many
buyers and sellers.
exchange-to-exchange (E2E)
E-commerce model in which
electronic exchanges formally
connect to one another for the
purpose of exchanging information.
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Interdisciplinary Nature of EC
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Marketing
Computer sciences
Consumer behavior and psychology
Finance
Economics
Management information systems
Accounting and auditing
Management
Business law and ethics
Others
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The EC Framework,
Classification, and Content
Web 2.0
The second-generation of Internet-based services that
let people generate content, collaborate, and share
information online in perceived new ways—such as
social networking sites, wikis, and communication
tools.
Web 3.0 Web 3.0 will be able to get the context from
the user; and then be able to provide the user with the
most useful information , it can be likened to an
artificial intelligence assistant that understands its
user and personalizes everything.
https://www.youtube.com/watch?v=bsNcjya56v8
https://www.youtube.com/watch?v=aPVmd7SyKfQ
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The Digital Revolution
Drives E-Commerce
digital economy
An economy that is based on digital
technologies, including digital
communication networks, computers,
software, and other related information
technologies; also called the Internet
economy, the new economy, or the Web
economy.
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The Digital Revolution
Drives E-Commerce
The digital revolution accelerates EC mainly
by providing competitive advantage to
organizations.
The digital revolution enables many
innovations (Digital products, financial
transactions, Information as
commodity)
virtual world
A user-defined world in which people can
interact, play, and do business. The most
publicized virtual world is Second Life.
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The Business Environment
Drives E-Commerce
THE BUSINESS ENVIRONMENT
The Business Environment Impact
Model
Business Pressures and Opportunities
Market, societal and technological.
Organizational Response Strategies
Agility, CRM, KMS, E-markets, …etc.
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Learning Pause 2
What are the pillars of E commerce
EC BUSINESS MODELS
business model A method of doing business by which a
company can generate revenue to sustain itself.
Revenue sources are
Transaction fees (Stock trade fee)
Subscription fees (AOL monthly fee)
Advertisement fees (Ads on google as banners)
Affiliate fees (Refering customers to other sites)
Sales (Wal-Mart, Amazon)
Value proposition is the description of the benefits a company can
derive from using EC
Search and transaction cost efficiency
Lock-in – switching costs
Novelty
Complementarities – bundling products with services
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EC BUSINESS MODELS
TYPICAL EC BUSINESS MODELS
Online direct marketing (Used in B2C and
B2B, Suitable for digitizable products)
Electronic tendering systems for procurement
tendering (bidding) system (reverse
auction)
Model in which a buyer requests would-be sellers to
submit bids; the lowest cost or highest value bidder
wins.
name-your-own-price model
Model in which a buyer sets the price he or
she is willing to pay and invites sellers to
supply the good or service at that price.
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EC BUSINESS MODELS
Find the best price
also known as a search engine model through intermediaries
affiliate marketing
An arrangement whereby a marketing partner (a
business, an organization, or even an individual)
refers consumers to the selling company’s Web site.
viral marketing
Word-of-mouth marketing in which customers
promote a product or service to friends or others.
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Auctions/Reverse Auctions
Extremely popular form of business model
for selling B2B, B2C, and C2C; can be set up
to host your own auctions or use an auction
brokerage
Auctions may be part of a general auction
web site or specialized in particular
industries
In Reverse Auctions, buyers register an
amount they are willing to pay, then sellers
bid for the buyer’s business.
Infomediaries
Business model is built around compiling and distributing
information
Profit: Referral fees, advertisers, affiliates
Types of Infomediaries:
Portal Sites
Serve as information centers or gateways to
other sites
Brings together clusters of manufacturers, e-
tailers, content providers, consumers into an
online community
Can be general (Yahoo!, NetZero, Excite) or
special-interest “vortals” (Edmunds, TheKnot,
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EC BUSINESS MODELS
group purchasing
Quantity (aggregated) purchasing that
enables groups of purchasers to obtain a
discount price on the products
purchased.
SMEs
Small-to-medium enterprises.
e-co-ops
Another name for online group purchasing
organizations.
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The Benefits of EC
Benefits to Organizations
Expands the marketplace to national and
international markets
Decreases the cost of creating, processing,
distributing, storing and retrieving paper-
based information
Lowers telecommunications cost - the
Internet is much cheaper than value added
networks (VANs)
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Benefits of EC (cont.)
Benefits to consumers
Enables consumers to shop or do other
transactions 24 hours a day, all year round
from almost any location
Provides consumers with more choices
Provides consumers with less expensive
products and services by allowing them to shop
in many places and conduct quick comparisons
Facilitates competition, which results in
substantial discounts
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Benefits of EC (cont.)
Allows quick delivery of products and services (in
some cases) especially with digitized products
Consumers can receive relevant and detailed
information in seconds, rather than in days or
weeks
Makes it possible to participate in virtual
auctions
Allows consumers to interact with other
consumers in electronic communities and
exchange ideas as well as compare experiences
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Benefits of EC (cont.)
Benefits to society
Enables more individuals to work at home, and to do
less traveling for shopping, resulting in less traffic on
the roads, and lower air pollution
Allows some merchandise to be sold at lower prices,
benefiting less affluent people
Enables people in Third World countries and rural
areas to enjoy products and services which otherwise
are not available to them
Facilitates delivery of public services at a reduced
cost, increases effectiveness, and/or improves quality
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The Limitations of EC
Technical limitations
There is a lack of universally accepted standards for
quality, security, and reliability
The telecommunications bandwidth is insufficient
Software development tools are still evolving
There are difficulties in integrating the Internet and
EC software with some existing (especially legacy)
applications and databases.
Special Web servers in addition to the network servers
are needed (added cost).
Internet accessibility is still expensive and/or
inconvenient
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Learning pause 3
What are is advantage of Ecommerce Exchange
Shopping Cart
Purposes of shopping cart
Technologies to build shopping cart
Benefits of using shopping cart
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Technologies to build
Shopping Cart
Build your own shopping cart with ASP,
CGI, Pearl, or JSP. (can be very complicated)
If not, you can purchase shopping cart
online as well. (can be costly)
Can add 1 – 500 or more items to the cart
Benefits of using shopping
cart
Allows customers comments
Increase sales for the company
Customer satisfaction (shipping,
security, and easy to process)
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Benefits of using shopping
cart
Allows customers comments
Increase sales for the company
Customer satisfaction (shipping,
security, and easy to process)
Learning Pause 4
Classify some of the pupular sites as per the
classifications provided in the class lecture.
Flipkart
Makemytrip
IRCTC
SBIonline
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Multistage Model for E-
commerce
Search and identification
Selection and negotiation
Purchasing products and services electronically
Product and service delivery
After-sales service
Principles of Information Systems, Seventh Edition 61
Multistage Model for E-Commerce
(B2B and B2C)
62
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E-Commerce Challenges
Define an effective e-commerce
model and strategy
Need to change distribution systems
and work processes
Integrate Web-based order
processing with traditional systems
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Three Basic Components of a
Successful E-Commerce Model
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Web-Based Order Processing Must Be
Linked to Traditional Back-End Systems
Principles of Information Systems, Seventh Edition 65
The E-Commerce Supply
Chain
Supply chain management is a
key value chain composed of:
Demand planning
Supply planning
Demand fulfillment
Principles of Information Systems, Seventh Edition 66
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Supply Chain Management
67
The E-Commerce Supply
Chain (continued)
E-commerce supply chain management allows
businesses an opportunity to achieve:
Increased revenues and decreased costs
Improved customer satisfaction
Inventory reduction across the supply chain
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Business-to-Business (B2B) E-
Commerce
Allows manufacturers to buy at a low cost
worldwide
Enterprises can sell to a global market
Offers great promise for developing countries
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Business-to-Consumer (B2C)
E-Commerce
Convenience
Many goods and services are cheaper when purchased
via the Web
Comparison shopping
Disintermediation: elimination of intermediate
organizations between the producer and the consumer
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Consumer-to-Consumer (C2C)
E-Commerce
Often done through Web auction sites
such as eBay
Growth of C2C is responsible for reducing
the use of the classified pages of
newspapers to advertise and sell personal
items
Principles of Information Systems, Seventh Edition 71
Global E-Commerce
Localization: adapting an existing U.S.-centric
Web site to another language and culture
Steps involved in localization
Recognizing and conforming to the nuances,
subtleties, and tastes of local cultures
Supporting basic trade laws such as those covering
each country’s currency, payment preferences,
taxes, and tariffs
Ensuring that technological capabilities match local
connection speeds
Principles of Information Systems, Seventh Edition 72
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Global E-Commerce
(continued)
Determine which global markets
make the most sense for selling
products or services online
Decide whether Web content should
be generated or updated centrally
or locally
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Mobile Commerce
Mobile commerce (m-commerce) relies on
the use of wireless devices, such as
personal digital assistants, cell phones,
and smart phones, to place orders and
conduct business
Issues confronting m-commerce
User-friendliness of the wireless device
Network speed
Security 74
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Technology Needed for Mobile
Commerce
Handheld devices used for m-commerce have
limitations that complicate their use
Wireless application protocol (WAP): a
standard set of specifications for Internet
applications that run on handheld, wireless
devices
75
E-Commerce Applications:
Retail and Wholesale
Electronic retailing (e-tailing): the direct sale from
business to consumer through electronic storefronts,
typically designed around an electronic catalog and
shopping cart model
Cybermall: a single Web site that offers many products
and services at one Internet location
Manufacturing, repair, and operations (MRO) goods and
services
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Manufacturing
To raise profitability and improve
customer service, many manufacturers
move their supply chain operations onto
the Internet
Electronic exchange: an electronic
forum where manufacturers, suppliers,
and competitors buy and sell goods,
trade market information, and run back-
office operations
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Figure 8.6: Model of an
Electronic Exchange
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Marketing
Market segmentation: the identification of
specific markets to target them with
advertising messages
Technology-enabled relationship
management: use of detailed information
about a customer’s behavior, preferences,
needs, and buying patterns to set prices,
negotiate terms, tailor promotions, add
product features, and otherwise customize
the entire relationship with that customer
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Investment and Finance
Online stock trading
Online banking
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Key Technology Infrastructure Components
81
Hardware
Storage capacity and computing
power required of the Web server
depends on:
Software that will run on the server
Volume of e-commerce transactions
Website hosting
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Web Server Software
Security and identification
Web sites must be designed to protect
against attacks
Denial-of-service (DOS) attack
Retrieving and sending Web pages
Web site tracking
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Web Server Software
(continued)
Web site development
Web page construction
Static Web page
Dynamic Web page
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E-Commerce Software
Catalog management
Product configuration
Shopping cart facilities
E-commerce transaction processing
Web traffic data analysis
85
E-Commerce Transaction
Processing
E-commerce transaction processing software:
connects participants in the e-commerce economy and
enables communication between trading partners,
regardless of their technical infrastructure
Fully automates transaction processes from order
placement to reconciliation
Web site traffic data analysis software: processes and
analyzes data from the Web log file to provide useful
information to improve Web site performance
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Electronic Payment Systems
Digital certificate: an attachment to an e-mail message or data
embedded in a Web page that verifies the identity of a sender or a Web
site
Certificate authority (CA): a trusted third party that issues digital
certificates
Secure Sockets Layer (SSL): a communications protocol used to secure
sensitive data
Electronic cash: an amount of money that is computerized, stored, and
used as cash for e-commerce transactions
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Electronic Payment Systems (continued)
Electronic wallet: a computerized stored value
that holds credit card information, electronic
cash, owner identification, and address
information
Credit card
Charge card
Debit card
Smart card
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Threats to E-Commerce
E- and m-commerce incidents
Theft of intellectual property
Intellectual property: music, books, inventions,
paintings, and other special items protected by
patents, copyrights, or trademarks
Patents on business processes
89
Fraud
Phishing: bogus messages purportedly from a legitimate institution to
pry personal information from customers by convincing them to go to a
“spoof” Web site
Online auction fraud
Spam: e-mail sent to a wide range of people and Usenet groups
indiscriminately
90
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Fraud (continued)
Pyramid schemes
Investment fraud
Stock scams
91
Invasion of Consumer Privacy
Online profiling: the practice of Web advertisers’
recording online behavior to produce targeted
advertising
Clickstream data: data gathered based on the Web sites
visited and the items clicked on
Safe harbor principles: principles that address the e-
commerce data privacy issues of notice, choice, and
access
Principles of Information Systems, Seventh Edition 92
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Table 8.4: How to Protect Your
Privacy While Online
95
Strategies for Successful
E-Commerce: Developing an
Effective Web Presence
Decide which tasks the site must accomplish
An effective Web site creates an attractive presence
and meets the needs of its visitors
It may be necessary to redefine your site’s business
model to capture new business opportunities
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Putting up a Web Site
Web site hosting companies: companies
that provide the tools and services
required to set up a Web page and
conduct e-commerce within a matter of
days and with little up-front cost
Storefront broker: companies that act as
middlemen between your Web site and
online merchants that have the products
and retail expertise 97
Building Traffic to Your Web
Site
Obtain and register a domain name
Make your site search-engine-friendly
Meta tag: a special HTML tag, not visible on the
displayed Web page, that contains keywords
representing your site’s content, which search
engines use to build indexes pointing to your Web
site
Web site traffic data analysis software
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Maintaining and Improving Your Web Site
Be alert to new trends and developments
in e-commerce
Be prepared to take advantage of new
opportunities
Personalization: the process of tailoring
Web pages to specifically target individual
consumers
Explicit
Implicit
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Summary
In business-to-consumer (B2C) e-commerce, customers
deal directly with the organization
In business-to-business (B2B) e-commerce, the
participants are organizations
In consumer-to-consumer (C2C) e-commerce, the
participants are individuals
A multistage model for e-commerce includes search and
identification, selection and negotiation, purchasing,
product or service delivery, and after-sales service
Principles of Information Systems, Seventh Edition 100
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Summary (continued)
Supply chain management is a key value chain
composed of demand planning, supply planning, and
demand fulfillment
Mobile commerce (m-commerce) uses wireless devices
to place orders and conduct business
Electronic retailing (e-tailing) is the direct sale from
business to consumer through electronic storefronts
A digital certificate is an attachment to an e-mail
message or data embedded in a Web page that verifies
the identity of a sender or a Web site
101
Summary (continued)
Threats to e-commerce include e- and m-commerce
incidents, theft of intellectual property, fraud, and
invasion of consumer privacy
Strategies for successful e-commerce
Developing an effective Web presence
Putting up a Web site
Building traffic to your Web site
Maintaining and improving your Web site
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Listen these videos
What is E commerce
https://www.youtube.com/watch?v=AhgtoQIfuQ4
Website builder
https://www.youtube.com/watch?v=YWA-xbsJrVg
Current Market Trends
Mixed results for online retailers
Online catalogs expensive and costly
Failure to meet revenue expectations
Level of security
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Obstacles
Barriers for B2C:
- Consumers lack of trust for E-Commerce
Barriers for B2B:
- E-commerce site may not be based on good models
Future Development
Difficult for small businesses to establish web presence
B2B to increase
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E-Commerce status &
Outlook
Patterns & FocusWhat is the Base of E-Commerce Discussion?
Business
Consum er
Business
Governm ent
Netw ork s
Extranet
Internet
Proprietary
Etc.
EC: Elec tronic Com m erc e
EDI: Electronic Data Interchange
CALS: Commerce at Light Speed
Etc.
Intranet
E-Commerce status &
Outlook
Patterns
Business to Consumer (B to C)
Business to Business (B to B)
Government to Business or Consumer (G to B or
C)
Network Focus
Internet
Internet Based E-Commerce
Global Business, cost independent of distance
Industry
Cross Industry
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10 Trends of E commerce
Localization, Personalization
& CX.
Community Building,
Customer Engagement &
CRM.
New Content Types & SEO.
Mobile Optimization.
Social Media Advertising,
Campaigns & Retargeting.
CRO & Data-Driven
Optimizations.
Technology.
Email Marketing,
Automation & AOV.
Influencer Marketing.
Omni-Channel
Management.
Exercise 15+5 mts Go through
and present in small groups
http://10ecommercetrends.com/
https://www.bigcommerce.com/blog/ecommerce-
trends/
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Localization and
Personalization Localization is a segment of personalization, and all personalization
aims at bettering the customer experience.
What is personalization? https://maruccisports.com/
Personalization in ecommerce often refers to personalized merchandising. brands use
a variety of known customer data points to serve contextually relevant content and
products.
Those data points can include:
Search Queries: Recommend products based on a customer’s search terms
Purchase History: Recommend products based on a customer’s past purchases
Shopping Cart: Recommend products based on the current contents of a customer’s
cart or wishlist
Social Behavior: Recommend products based on product rating, shares and likes
Geographic Location: Suggest relevant products based on customer’s local climate or
other regional considerations
Customer Segments: Use purchase histories of customers with similar demographics to
recommend products
Community building, customer
engagement and CRM
On-site chat Facebook messenger
SMS Email
Order status Customer groups
Loyalty programs Referral programs
https://www.bigcommerce.com/apps/rivet-
works/ for more marketing value and drive
more social engagement
Customer engagement mountain crest gardens
https://www.youtube.com/watch?v=NYstI9x1XqE
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SEO for ecommerce brands
SEO is the acronym for search engine optimization
Search Engine Optimization (SEO) is the scientific art of optimizing
your website around specific keywords in order to rank higher in
search results, such as Google.
The more optimized your website is, the higher you show up in
Google’s search results.
What are long-tail vs. short-tail keywords?
“Bow ties” is a short-tail keyword. “Bow ties for dachshunds” is a long-tail
keyword.
Long-tail keywords are just more specific.
Search engine optimization is a low-hanging fruit for ecommerce
websites.
So how do you do SEO
Reveal the most thorough answers to the widest range of
questions around the topic.
Use better images, videos, or examples to explain your
points.
Provide a better user experience via a faster site, a better
mobile experience, a more intuitive interface, etc.
Get people talking about (and linking) to you.
A study by Outbrain shows that search is the #1 driver of
traffic to content sites, beating social media by more than
300%.
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SEO is a holistic effort of all pieces of a business, including social
media, marketing, web design, networking and copywriting.
Social media advertising, campaigns
and retargeting
Social media advertising is a popular channel for
ecommerce brands to use to run campaigns, drive
traffic and close sales
https://www.facebook.com/nike/
Nike is using the multiple photo option ad (aka, not a
video) and promoting customized items in the ads.
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CRO and data-driven
optimizations
.CRO stands for conversion rate optimization, which you
can only do through data-driven optimization and decision
making.
These two aspects are tied hand in hand. You cannot do
one without the other.
Average ecommerce conversion rates rest at about 2% –
and that’s not very good
Conversion rate optimization allows you to run tests to
determine which various designs, language, etc. increase
sales versus others.
Then, you can launch updates sitewide to see a major lift.
CRO Best Practices
In ecommerce, “conversion” refers to the moment
when a visitor to a site becomes a customer — they
exchange money for a product or a service the site
provides.
Just by driving traffic to your website, this is
increasingly becoming an unsustainable business
model.
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CRO example
Andreas Carter Sports.
https://www.andreascartersports.co.uk/
One of the biggest changes we made was
to the ‘Add To Cart’ button. Simply
changing it from black to a blue colour
has reduced abandoned carts by up to
50%. – Jeremy Hagon, Marketing Manager,
Andreas Carter Sports
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Definitional Distinctions
Electronic Business
Electronic Commerce
Electronic Marketing
Electronic shopping,
Virtual malls, etc.
Electronic Business
The fusion of business processes,
information technology (IT), and
organizational infrastructure to
create a new business model.
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Electronic Marketing
Electronic marketing (E-marketing) is the strategic process of
creating, distributing, promoting, and pricing goods and services
to a target market over the Internet or through digital tools.
E-commerce Capabilities
Benefits to Organizations
• Expands the marketplace to national
and international markets
• Low Cost of Entry
• Aids in building and maintaining
relationships
• Allows customized marketing
• Reduces human error and human
resource costs
Benefits to Customers
• Enables customers to shop or do
other transactions 24 hours a day,
all year round from almost any
location
• Provides customers with more
choices and better information
• Provides customers with less
expensive products and services
by allowing them to shop in many
places and conduct quick
comparisons
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Online Marketing Channels
Corporate Websites (non-sales)
Content Sponsorship/Advertising
Direct Sales (B2B)
Virtual Storefronts (E-tailing)
Online Malls
Online Brokers
Auctions/Reverse Auctions
Infomediaries
Content Sponsorship/Advertising
E-business model that builds web sites
specifically to create traffic and sell
advertising
Uses permission marketing, which offers
consumers incentives to accept advertising
and email voluntarily.
