elec3 introduction lecture1

8/8/2019 ELEC3 Introduction Lecture1

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INTRODUCTION TO E-COMMERCE

E-Commerce and Internet Marketing

Ms. Aileen P. de Leon, MIT, MOS


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E-MARKETINGEmpowers entrepreneurs to exceed their

previous potential. Small and medium-sizedenterprises(SMEs) can now participate on a

global scale previously unreachable to them

with the help of powerful digital tools such as

the Internet.

MOST INNOVATIVE THINGS:

Functional websiteYoutube uploading

Text Blast

Email Servers

Electronic Fund Transfer Transactions


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E-MARKETING is understanding the

consumer that we want to target, thenemploying integrated marketing programs

to establish customer relationships in the

businesses online. It affects traditional

marketing by:

1.)it increases efficiency in traditional

marketing functions;

2.)the technology of e-marketing


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CHALLENGE?

To continue building and implementing

according to the capabilities of available

technology, while at the same time, keeping

close track on, and being prepared for,emerging technologies as the market

develops. More and more companies have

taken the initiative to utilize this revolutionary

system with its new opportunities, tools and

methods as a means of doing business more

efficiently and profitably.


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SO WHAT IS E-COMMERCE?

ELECTRONIC COMMERCE is the integration of theelectronic mail, electronic funds transfer, electronic data

exchange, and similar techniques into an automated,

electronics-based system that encompasses business

functions such as procurement, payments, supplymanagement, transportation, and family operation.

It is a means to perform business

transactions online. It uses no paper in

the processing and execution of a sale.E-commerce is any business exchange

that uses electronic means in pursuing

and ordering certain goods and services.


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BENEFITS OF E-COMMERCE

1. Better customer service and increasedrevenue

2.Improved company image competitive

advantage, and accessibility to international

markets3.Ease of customer information exchange,

thereby encouraging customer loyalty

4.Paperless documentation/transactions5.Accurate supplier information exchange

6.Attraction of new investment

7.Lower procurement costs


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The website should:

Showcase marketing products Offer extended services

Present institutions or ideas

Website offers:

More opportunities to sell directly to

customers Companies can transact business

with one another more efficiently

What regulations cover e-commerce marketing? E-commerce Law(June 14, 2000)


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CATEGORIES OF E-COMMERCE

Companies doing business with each other

such as manufacturers selling to

distributors and wholesalers selling toretailers. Pricing is

based on quantity

of order and is often

negotiable.

B2B (Business-to-Business)


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C2B (Consumer-to-Business)A consumer posts his project with a set

budget online and within hours companies reviewthe consumer's requirements and bid on the

project. The consumer reviews the bids and selects

the company that will complete the

project. Elance empowersconsumers around the world by

providing the meeting ground

and platform for such

transactions.


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C2C (Consumer-to-Consumer)

There are many sites offering free classifieds,

auctions, and forums where individuals can buy andsell thanks to online payment systems like PayPal

where people can send and receive money online

with ease. eBay's auction service is a great

example of where person-to-person transactionstake place everyday since 1995.


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INTERNET MARKETING ACTIVITY:

Acquire a good domain name

Emphasize ease of use

Offer online value

Satisfy consumer needs

Explore URL and web advertising

techniques

Attach signature tags

Use of search engines, directories,

announcements as marketing tools


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Explore viral marketing

Distribute free newsletters

Find your niche

Gather affiliates

Send targeted emails

Produce and publish news articles

Distribute press releases online

Run an auction Run contests

Determine online communities

Establish an online forum


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Distribute online coupons

Conduct surveys

Participate in a charitable website

Post links to internet malls or portals

Participate in paid or free banner

advertising Practice reciprocal web linking

Paid or free classified ads

Host classified ads E-mail auto-responders

Add a search engine

Apply for awards


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4 Ps in MARKETING MIX


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DIFFERENCE BETWEEN E-COMMERCE AND E-MARKETING

AREA MARKETING COMMERCE1. Advertising Provides information and details to

answer the inquiries of the customerSimply describes the features andbenefits of the product

2. Target Market Knows his/her target market well.Products needed/wanted by the targetmarket

No specific target market

3. Promotions and Discounts Individually tailored to customer Standard for all customers

4. Pricing of Products Based on the ability of the customer tobuy and examine the worth of theproduct

Set by seller without taking intoconsideration the customer

5. Development of New

Products

Created to cater to the needs and

wants of the customer

Based on research and development

6. Relationship with Customer Continues to maintain and enhancelong-term customer relationship

Long-term customer relationship is notthat important. Immediate profit is whatcounts

7. Distribution Through direct channels orintermediaries depending on the

customer preference

Standard distribution determined by theintermediaries of the sellers choice


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BRANDING ON THE WEB

BRAND identifies the product and

differentiates it from its competitors. It ensuressuccess of a product/service. It becomes the

asset of a business to hold in the e-economy.

However, good branding of a product will notnecessarily transfer to another environment. Some

experts have differentiated the emotional branding that

companies traditionally use in their other promotional

efforts to uplift the image of their product. Perhapsthese types of branding can work in TRI-media(TV,

radio and print) because the ads are in a passive mode

of information acceptance. However, emotional

appeals are hard to convey in the Internet.


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Web is controlled mostly by theuser. Many web users are considered

busy people so they probably do not

have the time to buy into emotionalappeals. Marketers are attempting to

create and maintain brands on the Web

by using rational branding.

Main reason?


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RATIONAL BRANDING offers to help web

users to view an ad. The emotional appeal of

a TV is replaced with a cognitive appeal ofproviding functional assistance. Customer

assistance, detailed product information, and

personalized viewing of products areexamples of strategies to appeal to the

cognitive side of the consumers.

BRAND EXTENSION another strategy onweb branding. Using an established brand

and extending the scope of its services or

sales.


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BENEFITS OF E-MARKETING

Power-shift from sellers to buyers Market fragmentation

Death of distance

Time compression

Knowledge Management(KM)

Customer Relationship Management(CRM)

Supply Chain Management(SCM)

Enterprise Resource Planning(ERP) I can blog. I can market.

Comments? Suggestions? Anyone?

Virtual store


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E-MARKETING IN THE ASIAN CONTEXT

The new e-business philosophy will no longer

be product-centered(e-commerce), but will shift to

customer centricity(e-marketing). Customers will be

at the center of the e-economy. With opencommunication interaction and tight feedback

loops with the customer, it is no longer the push

strategybut more on pull strategy, putting the

customer desires first, not only with regard to theproduct, but the entire business entity.


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wherein:

PUSH STRATEGY - you pushyourcontent or product towards the audience

which may or may not be aware of it.

PULL STRATEGY - the customerpullsyour content or product towards

themselves, because they are interested in

learning more about it.


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GUIDE FOR E-CONSUMERS

1. Know who you are dealing with2. Know what you are buying

3. Understand the terms, conditions, and

costs involved in the sale

4. Protect yourself when paying online

5. Look out for your privacy

6. Understand what recourse you have if you

run into problems with your purchase7. Get smart e-commerce. Demand

consumer-friendly policies and procedures


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E-MAIL MARKETING

- Fast gaining ground in all countries,

across different demographics. It can yield veryhigh response rates.

EFFECTIVE E-MAIL MARKETING:

Privacy

Relevance

Control

Rewards

Brand Strength

Engaging Interface/Personalization


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OTHER SIDE OF E-MAIL MARKETING

SPAM It has since been adopted by the Internetcommunity to signify the mindless mass posting of

messages to Usenet or e-mail, flooding the Internet

with many copies of the same message.

It is unwanted, invasive Internet advertising.

It can come from Usenets newsgroup or via email.

WHY IS IT NOT GOOD? Costs time and effort


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INTERNET DEMOGRAPHICS

1. RECREATIONAL CONSUMERS

represent 27% of the total Internetuser population. They pay

personally for Internet access,

primarily access at home and use

the Internet primarily for personalapplications.

2. OCCUPATIONAL CONSUMERS

represent 12% of the total Internet user

population. This segment pays personallyfor access, accesses primarily at home,

and uses the Internet mainly for business-

related activities such as conducting work

at home or running a small business.


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3.CORPORATE USERS represent

some 46% of the total Internet user

population. Their Internet accessis subsidized, they use the Internet

primarily for work applications, and

usually access it from workplace

locations.

4. ACADEMIC USERS represent

15% of the total Internet user

population. Their usage issubsidized; they access from

academic locations, and primarily use

the Internet for research and

educational applications.

elec3 introduction lecture1

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