Transcript Lecture 1 Title: E-Business Definition and Models

By: Mr Hashem Alaidaros
MKT 445
What we will learn Today?
• What is E-Marketing?
• What is the differences between Ebusiness,
Ecommerce, and Emarketing?
• What are E-Business Models?
• What are the advantages of Emarketing?
• What are the method used for Internet
marketing?
Internet
• The Internet is a powerful channel that
presents new opportunities for an organization
to:
o Touch customers
o Enrich products and services with information
o Reduce costs
Why Internet Shopping?
• 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
• Allows quick delivery of products and services,
especially with digitized products
Cont.
• Consumers can receive relevant and detailed information in
seconds, rather than in days or weeks
• Allows consumers to interact with other consumers in electronic
communities and exchange ideas as well as compare experiences
• Facilitates competition, which results in substantial discounts
Why not Internet Shopping
• Security and Privacy
Difficult to convince customers that online
transactions and privacy very secure
• Customers do not trust:
o Unknown faceless sellers
o Paperless transactions
o Electronic money
• Switching from a physical to a virtual store may be
difficult
• E-payment is not in place in many places
o
e-Business, e-Commerce, and eMarketing in the Internet Age
e-Business
Involves
the Use of Intranets, Extranets & the Internet to
Conduct a Company’s Business
e-Commerce
Involves Buying & Selling Processes
Supported by Electronic Means
E-Marketing
“e-selling” side of ecommerce
3-7
Cont.
 E-Business is doing business electronically:
•
•
•
•
keeping the workforce informed of new policy via email,
managing your employee benefits online,
managing customer information online,
keeping track of projects with graphic displays and
automated reports,
• managing sick days and vacation days,
• placing orders (eCommerce),
• making sales (eCommerce),
Cont.
• An E-Business does not have to do eCommerce.
• E-Commerce is a common business task and is money/traded goods
specific: sales occur, orders are placed, and money/trade goods
exchange hands.
• E-Business encompasses all internal and external electronically based
activities and processes.
• E-commerce is part of E-Business, which focuses on the electronic
commercial transactions between and amongst organisations and
individuals
Industries Using E-Business
E-Business Models
• E-business model – an approach to conducting
electronic business through which a company can
become a profitable business on the Internet
Cont.
E-Business Models
B2B
 Electronic marketplaces, or e-marketplaces, present
structures for conducting commercial exchange,
consolidating supply chains, and creating new sales
channels.
 Their primary goal is to increase market efficiency by
tightening and automating the relationship between
buyers and sellers
 Existing e-marketplaces allow access to various
mechanisms in which to buy and sell almost anything,
from services to direct materials
B2C
• Common B2C e-business models include:
o e-shop – a version of a retail store where
customers can shop at any hour of the day without
leaving their home or office
o e-mall – consists of a number of e-shops; it serves
as a gateway through which a visitor can access
other e-shops
C2C
• Online auctions
o Electronic auction (e-auction) - Sellers and
buyers ask consecutive bids from each other and
prices are determined dynamically
o These sites allow anyone to buy or sell item and
pay a small fee to the site operator, often
collected as commission on the transaction.
o The most successful auction site is eBay.
Summary and examples of transaction alternatives between businesses,
consumers and governmental organisations
Terms
 Brick-and-mortar business - operates in a physical
store without an Internet presence.
 Pure-play (virtual) business - a business that
operates on the Internet only without a physical
store. Examples include Amazon.com and
Expedia.com.
 Click-and-mortar business – a business that operates
in a physical store and on the Internet. Examples
include REI and Barnes and Noble.
Mixed-mode (Online & Offline)
The role of mixed-mode buying in Internet marketing
Benefits of online marketing
Other Benefits of Online Marketing
1. Speed of launching advertising campaigns.
 Advertising banners or textlinks can be created quickly and
placed on websites within hours.
 Compare this to creating a magazine, radio or television ad
which could cost thousands and take weeks to create.
 This also allows you to change messages on the fly if you
need to. Try doing that on TV or Print
Cont.
2. Tracking.
 Advertising campaign performance can be tracked
with such precision that one can see exactly how
many people are viewing your ad, responding to it and
ultimately buying your product.
 This information can be viewed on an hourly basis if
needed.
 Advertising messages can also be delivered based on
website visitor preferences or behavior.
How to e-Market a web site?
• Several methods of promotion are in use today:
1. Banner ads
2. Pop-up ads
3. Email Marketing
4. Affiliate Marketing
5. Viral Marketing
6. Search engines and directories
7. Blogging and Podcasting
8. Mobile marketing
Cont.
• Traditional media:
• local newspapers,
• radio programs and
• mass mailing campaigns
1. Banner Ads
• Most Web advertising uses banner ads
o It is a small rectangular object normally at the top of
the Web page which displays stationary or moving
graphics
o These ads are created using animated GIFs, or
objects created in Shockwave, Java or Flash
Cont.
Pay a site to display the banner ad
• Use a banner advertising network who acts as
brokers between advertisers and Web sites that
carry ads
• They often broker space on large Web site like
Yahoo, which has high traffic volumes and are
therefore expensive
Measuring Cost for Ads
o Cost per thousand clicks (CPM)
o The cost per one thousand clicks may range from
$1 to $50.
2. Pop-Up ads
• The pop-up ad is an ad that appears in its own window
when the user opens or closes a page
• The pop-behind ad is a pop-up ad that is behind the
existing browser window
o
Ad-blocking software prevents these ads from displaying
3. E-Mail Marketing
• Internet Mailing List:
• A group of people with similar interests who discuss their
favorite topics via email
• Some of the ways that email has been used for
Marketing are:
Permission Marketing is the sending of emails to people
who request further information on a product or service
(for example)
o Combining content (e.g. articles or news stories that are
of interest to the target market) with advertising
messages
o
Cont.
A mass email promotion to an untargeted list is called
spam and is disapproved by the online community
• Email marketing is very cost effective and with good
results, i.e. 5-15% response rate
• What is different between Junk and spam mail?
•
4. Affiliate Marketing
• In affiliate Marketing a Company’s Web site includes
products or services offered for sale by another
company in exchange for a commission
o Example:
o Amazon.com has over 800,000
affiliate sites
5. Viral Marketing
• Viral Marketers rely on non-customers being told
about products or services by existing customers
• An example of a viral Marketing campaign is Blue
Mountain Arts
o When an electronic greeting card is sent to a person,
a link to Blue Mountain is included which they click
on to read the card; they are now more likely to send
a card themselves
6. Search Engine
• Search-engine ad: an advertisement tied to a specific
keywords in a search engine.
• When selected keywords are typed in a search box, an
appropriate ad is displayed.
7. Blogging and podcast
• Blog: Short for web log.
• It is an online digital diary or forum where text,
photos, video, and other material can be posted and
made available to the public.
• Podcast: A recorded audio program available online for
download in a file format that can be easily transferred
to an MP3 player