o business-to-consumer (b2c) o...o affiliate revenue model • market opportunity • competitive...
TRANSCRIPT
Types of E-commerce
• Classified by market relationship
o Business-to-Consumer (B2C)
o Business-to-Business (B2B)
o Consumer-to-Consumer (C2C)
• Classified by technology used
o Peer-to-Peer (P2P)
o Mobile commerce (M-commerce)
Features of E-Commerce
Ubiquity
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology
Key concepts of the internet
• Defined by Federal Networking Commission as
network that:
o Uses IP addressing
o Supports TCP/IP
o Provides services to users,
in manner similar to telephone system
Three important concepts:
• Packet switching
o Original Message digitized to bits
o Bits broken to packets
o Each packets get header information and
control information, such as how many
bits are in the total message and how
many packets
• TCP/IP communications protocol
o IPv4 (32 bit) vs IPv6(128 bit)
Examples for each layer:
• Client/server computing
Internet Network Architecture
Internet protocols
• HTTP
•
• E-mail: SMTP, POP3, IMAP
• FTP, Telnet, SSL
Utility programs
• Ping
• Tracert
ISP Services:
• Dial up
• Broadband
Limitations of current Internet
• Bandwidth limitations
• Quality of service limitations
• Network architecture limitations
• Language development limitations
• Wired Internet limitations
Internet and Web features on which the foundations
of e-commerce are built include:
• Instant messaging
• Search engines
• Intelligent agents (bots)
o Search bot
o Shopping bot
o Web monitoring bot
o News bot
o Chatter bot
• Online forums and chat
• Streaming media
• Cookies
Web 2.0 features:
• Social network
• Blog
• RSS
• Podcast
• Wiki
• Music & Video
• VoIP
• IP TV
• Video conferencing & telepresence
• Online software and web services
Main areas where you will need to make decisions:
• Human resources and organizational capabilities
• Hardware/software
• Telecommunications
• Site design
SDLC:
• Systems analysis/planning
• Systems design
• Building the system
• Testing
o Unit testing
o System testing
o Acceptance testing
• Implementation
Two components of system design:
• Logical design
• Physical design
Factors in website optimization:
Components of budget:
• System maintenance
• System development
• Content design and development
• Hardware
• Telecommunications
• Software
E-Commerce Website Architecture
Function of web servers
Ways to scale hardware:
• Vertically
o Increase processing power of individual
components
• Horizontally
o Employ multiple computers to share
workload
• Improve processing architecture
E-Commerce security environment
Dimensions of E-Commerce Security
Three key points of vulnerability in e-commerce
environment:
Client
Server
Communications pipeline (Internet communications
channels)
Common security threats:
• Malicious code
• Bots, botnets
• Unwanted programs
• Browser parasites
• Social engineering
• Phishing
• Hacking
• Cybervandalism
• Data breach
• Credit card fraud/theft
• Spoofing
• Pharming
• Spam/junk Web sites
• Denial of service (DoS) attack
• Distributed denial of service (DDoS) attack
• Sniffing
• Insider jobs
• Poorly designed server and client software
• Social network security
• Mobile platform threats
Tools to achieve site security:
Developing an e-commerce security plan
Business Model:
• Value proposition
• Revenue model
o Advertising revenue model
o Subscription revenue model
o Transaction fee revenue model
o Sales revenue model
o Affiliate revenue model
• Market opportunity
• Competitive environment
• Competitive advantage
• Market strategy
• Organizational development
• Management team
Business models:
• B2C Models:
o Portal
o E-Tailer
o Content provider
o Transaction Broker
o Market creator
o Service provider
o Community provider
• B2B business models:
o Net marketplaces
� E-distributor
� E-procurement
� Exchange
� Industry consortium
o Private industrial network
• Other business models
o Consumer-to-consumer (C2C)
� eBay, Craigslist
o Peer-to-peer (P2P)
� The Pirate Bay, Cloudmark
o M-commerce:
� Extends existing e-commerce
business models to service mobile
workforce, consumers
� Unique features include mobility,
cameras to scan product codes,
GPS
E-commerce changes industry structure by changing:
• Basis of competition among rivals
• Barriers to entry
• Threat of new substitute products
• Strength of suppliers
• Bargaining power of buyers
Effect of Internet in value chain:
• Increases operational efficiency
• Enables product differentiation
• Enables precise coordination of steps in chain
Four generic strategies
• Differentiation
• Cost
• Scope
• Focus
General model of consumer behavior:
Online model:
Stages in consumer decision process:
• Awareness of need
• Search for more information
• Evaluation of alternatives
• Actual purchase decision
• Post-purchase contact with firm
Two most important factors shaping decision to purchase
online:
• Utility
• Trust
3 levels of product:
STP:
• Segmentation
o Behavioral
o Demographic
o Psychographic
o Technical
o Contextual
o Search
• Targeting
• Positioning
Impacts of internet marketing:
• Scope of marketing communications broadened
• Richness of marketing communications increased
• Information intensity of marketplace expanded
Four types of tracking files
• Cookies
• Flash cookies
• Beacons (“bugs”)
• Apps
Data mining:
• Query-driven data mining
• Model-driven data mining
• Rule-based data mining
• Collaborative filtering
Market entry strategies
Pricing strategies:
• Free and freemium
o Can be used to build market awareness
• Versioning
o Creating multiple versions of product and
selling essentially same product to
different market segments at different
prices
• Bundling
o Offers consumers two or more goods for
one price
• Dynamic pricing:
o Auctions
o Yield management
o Flash marketing
Two main purposes of marketing communications:
• Sales—promotional sales communications
• Branding—branding communications
Online advertising
• Advantages:
o Internet is where audience is moving
o Ad targeting
o Greater opportunities for interactivity
• Disadvantages:
o Cost vs. benefit
o How to adequately measure results
o Supply of good venues to display ads
Forms of online advertising
• Display ads
• Rich media
• Video ads
• Search engine advertising
• Mobile and local advertising
• Referrals
• E-mail marketing
• Online catalogs
• Social network, blog, app, and game advertising
How to measure audience size or market share:
• Impressions
• Click-through rate (CTR)
• View-through rate (VTR)
• Hits
• Page views
• Stickiness (duration)
• Unique visitors
• Loyalty
• Reach
• Recency
Online marketing metrics:
• Conversion of visit or to customer
o Acquisition rate
o Conversion rate
o Browse-to-buy-ratio
o View-to-cart ratio
o Cart conversion rate
o Checkout conversion rate
o Abandonment rate
o Retention rate
o Attrition rate
• Social networking
o User insights
o Interaction insights
• E-mail metrics
o Open rate
o Delivery rate
o Click-through rate
(e-mail)
o Bounce-back rate
Pricing models
• Barter
• Cost per thousand (CPM)
• Cost per click (CPC)
• Cost per action (CPA)
Main factors in effectiveness of interface
• Utility
• Ease of use
Top factors in credibility of Web sites
• Design look
• Information design/structure
• Information focus
E-Commerce infrastructure:
Examples for each layer:
Building an e-commerce presence:
SDLC:
• Systems analysis/planning
• Systems design
• Building the system
• Testing
o Unit testing
o System testing
o Acceptance testing
• Implementation
Factors in website optimization:
E-commerce security and payment system
Business model for e-commerce
Business Model:
• Value proposition
• Revenue model
o Advertising revenue model
o Subscription revenue model
o Transaction fee revenue model
o Sales revenue model
o Affiliate revenue model
• Market opportunity
• Competitive environment
• Competitive advantage
• Market strategy
• Organizational development
• Management team
Marketing
3 levels of product: