CONCEPT OF ELECTRONIC COMMERCE

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CHAPTER 2

• CONCEPT OF ELECTRONIC COMMERCE

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Why Should Companies Use Electronic Marketing

• What is the purpose for engaging online
  communication?
• Why should the company go online?
• What do we hope to achieve with an online
  presence?
• Who will be in charge of the Wib site creation?
• Who will set the budget for Web site production
  and implementation?
• Does the company have the talent to allow the Web
  site to grow?

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Objectives and Expectations for Internet
Activities

• Definition of EC
• E-Commerce is a system of online shopping and
  information retrieval accessed through networks
  of personal computers.
• E-commerce is the end result of e-marketing.
• E-marketing resources are the means, tools by
  which e-commerce is executed more efficiently and
  effectively.
• Internet is promotional faucet to tap into the
  flow of consumers and prospect purchases.
• Internet is a part in the promotional mix.

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Virtual Retailers

• It is a flat TV screen.
• Amazon.com Vs. bn.com.
• Importance of demographic, psychographics and
  behavioral characteristics.
• Web master Vs. interactive advertising agency.
• Internet provider/internet service provider
• Arrange for necessary equipment(server, internet
  connection and the system maintenance) to handle
  tha daily activities.

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Evaluation of On-Line MarketingSituation

• Knowing at what point to start is the key to
  successful marketing efforts.
• Crating on-line awareness for product/service.
• To be capable to react quickly customer service
  inquiries.
• Technical support by e-mail.
• Data base development for customer tracking.

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Relevant Research Process

• www.forrester.com
• www.decisionanalyst.com
• Personal Characteristics
• Gender
• Age
• Marital Status
• Educational Level
• Ethnicity
• Occupation
• Household income

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Relevant Research Process (cont.)

• Internet Usage Profile
• Internet access option and cost
• Length and frequency of use
• Primary Research
• Secondary Research
• Steps in Research Process
• Define the required relevant research
• To ascertain if and where the information can be
  obtained

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Relevant Research Process (cont.)

• New product and Service Definitions
• Need identification
• Product/service development
• Identify expected benefits to intended audience
• Environmental Factors
• Economic
• Cultural
• Legal
• Political
• Tracking Customer movement on the internet.
• Cookie files attached to users browser
• They do it, but it is considered unethical
  attitude

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On-Line Market Research

• The research process
• Problem definition
• Methodology
• Data collection and analysis
• Findings, recommendations and implementation
• Faster and cheaper
• Large sample size
• It is done interactive manner with customers
• Provides early information about product and
  customers

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On-Line Marketing Research Methods

• E-mails.
• Focus group conducted in chat room.
• Surveys placed on web cites.
• Data entry error is eliminated.
• Graphics, logo and link to other web pages may
  be added.
• Respondents may be from foreign countries.
• Respondents may answer at his/her convenience.
• Problems with on-line market research
• Long download time
• Long processing time

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Limitations of On-Line Research

• It is not suitable for every client.
• It is skewed toward certain population groups.
• Sample may not be representative.
• Web based surveys have lower response rate than
  e-mail surveys.
• Respondents may not trust the truthfulness of web
  based research.