Transcript Electronic Commerce & Marketing

Electronic Commerce &
Marketing
What is E-Commerce?
• Business communications and transactions
over networks and through computers,
specifically
– The buying & selling of goods & services and
– The transfer of funds through digital
communications
What E-Commerce Can Be?
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Communication medium
Automation of business transactions
Cut service costs
Improve quality of goods & delivery
Online buying/selling of products (including
information)
How are Businesses Using the
Web?
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77 % for gathering product information
49 % for researching competitors
43 % for collaboration
42 % for vendor support
39 % for communication
Types of Communication
Networks
Topology Internet
Intranet
Extranet
Extent
Global
Organizational Business
Partnership
Focus
Stakeholder Employee
Distribution
Relations
information & channel
communication communication
The Internet
• Global network of networks.
• Any computer connected can communicate
with any server in the system
• Well suited for communicating with wide
variety of stakeholders
• I.e., can use Internet to distribute software
updates to customers.
Intranet
• Essentially, a fenced-off mini-Internet within
an organization.
• A firewall is used to restrict access so
people outside the organization cannot
access the intranet.
• Focus is upon improving the organization’s
ability to serve stakeholders.
Extranet
• Links buyer & supplier to facilitate greater
coordination of common activities
• Communication is confined to the
computers that link the two organizations.
• Using Internet technology to establish &
operate an extranet offers higher
economies than using commercial
communication networks for EDI.
EDI = Electronic Data Interchange
• Been around for some 20 years.
• Describes the electronic exchange of
standard business documents between
firms.
• Uses standardized, structured data formats
(not free form e-mail messages)
• Good for repetitive, routine transactions.
• Still only accounts for 20% of info flow in US
EDI Advantages
• Reduced paper handling; saves time &
money
• Data exchanged in real time
• Fewer errors since data keyed only once
• Enables greater coordination of activities
between the business partners
• Accelerates money flows; payments
received sooner
What E-Commerce Does for Us
• Communication device for building
customer relationships
• Alternative distribution channel
• Medium for delivering service to customers
• Tool for gathering marketing research data
• Method for integrating members of the
supply chain
Myths About E-Commerce
• Enables businesses to bypass channel partners
• Can use Internet as sole means of acquiring
new customers
• Can eliminate advertising & other promotional
expenditures
• Web sites can provide all the information
prospects ever need to know
• Web site success is best measured by how
long a visitor stays
• Internet will replace traditional marketing media
E-Marketing Security Concerns
• Internet is inherently open; harder to restrict
physical access to servers.
• Same technologies that are used to operate
the Net may be used to attack it.
– computers & networks
– computers can be programmed to run multiple
combinations of words to breach a password
Security Methods
• Access Control
–Data Access Control
• based on visitor identification
• Personal Memory
–name, account number, password
• Possessed Object
–badge, plastic card, key, IP address
• Personal Characteristic
–fingerprint, voiceprint, signature, hand size
Security Methods
• Access Control
– Firewalls
• device placed between Intranet and Internet
• monitors/controls all traffic between the 2
• restricts outsiders’ access to intranet
• simplest method is to restrict access to
designated IP addresses
• can also restrict access to certain
applications
• must balance cost of firewall with the
protection
Security Methods
• Coding
–Basically, encryption techniques
–Used to protect integrity of
messages or complement data
access controls
–Must have the “key” to read the
encryption
Deciding Whether or Not to Engage in
Online Marketing
• What is your purpose for engaging in emarketing?
– What are appropriate goals?
– Profits or prestige?
– Are you serious about making an online
presence?
• Why should you go online?
– To introduce new products?
– To improve technical support?
– To reach new prospects?
– To enhance channel relations?
Deciding Whether or Not to Engage in
Online Marketing
• What are your expectations?
– Extensive data exchange?
– Use as an employee recruitment tool?
• Who’s in charge?
– Who has the final say on web site content?
– Who will be the web master?
– Who sets the budget?
• Do you have the talent & patience necessary?