4c5eeModule III E-Commerce Jan 2011

8/6/2019 4c5eeModule III E-Commerce Jan 2011

1/46

Amity School of Business

1


BBA, Semester IV

E-Commerce

Ms Bhawana Gupta


2/46


2

MODULE-III

E-Strategies and Tactics


3/46


4/46


4

Benefits of Web Site Reaching millions of customers quickly and reliably.

Leverage advertising costs: Unlike radio, TV, or newspapers,where limited time or space is available at high cost, advertising on

the Internet is cheaper, quicker, and limitless.

Reduce the costs of serving customers: A Web site can offer avariety of labor-saving services- application forms, information vialinks or email, and order handling and shipment without humanintervention

Promote Public relations: A Web site on the Internet is likepassing business cards to thousands of potential customers. It is likesayings, Here is what I do, What I am, and what I can do for you.You can reach me anytime, from anywhere, and I ll be available.

The Web site also allows for the timely dissemination ofinformation about the new product or a special sale.


5/46


5

Site Building Life Cycle

Site building is the science of figuring out what you as a site designer

want the site to do and then creating a blueprint for the building

process. Site Building Life Cycle is shown in figure below.

Planning the SiteDefine the audience

and CompetitionBuild the Site

Define the Site StructureVisual Design


6/46


6

Site Building Life Cycle1. Plan the Site: The planning phase of site building is the foundationfor great Web design. It is the blueprint for designing the form, function

navigation, and interface. Planning is defining the sites goals in

advance.

The aim of the planning stage is to provide for quick application

development and deployment. Doing this means organizing the site-

creating an efficient structure for the files ad folders that make up the

site.

Another aspect of the planning phase is to decide on the sites mission,

the short-and long term goals of the site, who the intended audience is,

and why people will want to visit the site.


7/46


7

Site Building Life Cycle2. Define the Audience and the Competition : Defining the audienceincludes not just who the users are, but their goals and objectives, as

well. The first step is to generate a list of categories of intended

audiences.

The Goal is to enhance site visitor's experience by escorting them

quickly to the merchandise that best suits them. Speed and

responsiveness are crucial. In addition to defining the audience, you

need to create scenarios or design test cases of a customers accessing

the site for various reasons and see how well the site matches their

needs.

The second part of this step is competitive analysis. The idea is to be

aware of what other sites are doing. Make a list your competitors Web

Sites, evaluate them and see where your site needs work.


8/46


8

Site Building Life Cycle3. Build Site Content: The focus in this phase is on gathering the

pieces for creating and organizing the structure of the site. The pieces

represent the content. For example if I were building a Web Site for a

bank, the homepage would contain basic information about eachdepartment (loans, customer service, trust, checking and savings) as

well as basic company information such as privacy policy, location,

banking hours and name of officers.

After this step is completed, the designer needs to determine the

feasibility of each function. For example, are technology and money

available to buy or build the function? If money is limited, you may

have to drop some functions in order to meet budget constraints and

deadlines.


9/46


9

Site Building Life Cycle4. Define the Site Structure : In this phase, the focus is on creating agood site structure, exploring various metaphors to represent contentitems, defining the architectural blueprint and deciding how the userwill navigate the site. Once a site structure is created, everything alsoshould fall into place. This step ensures easy site navigation and welllaid out pages and templates.

5. Develop the Visual Design: In final phase of a site-building life cycleis developing the visual design. The goal is to give visitors a mentalmap of the Web site. Where they are, whey they have been and how to

proceed. The first step is to use a layout grid to show well the icons

button, banners, and other elements fit together. Like the format of aletter, a layout grid is a template that shows the focus of every page.Another aspect of the design phase is establishing to look and feel ofthe site via page mock ups. Once completed, the visual design also isincorporated into the design document. The design document is nowcomplete. It shows how to construct the site, add content and review

the site after the site is up and running.


10/46


E-Commerce Transaction Models Business to Consumer (B2C) - It is the model involving businesses

and consumers. This is the most common e-commerce segment. Inthis model, online businesses sell to individual consumers. The basicconcept behind this type is that the online retailers and marketers can

sell their products to the online consumer by using crystal clear datawhich is made available via various online marketing tools. E.g. Anonline pharmacy giving free medical consultation and sellingmedicines to patients is following B2C model.

Business to Business (B2B) - It is the largest form of e-commerce

involving business of trillions of dollars. In this form, the buyers andsellers are both business entities and do not involve an individualconsumer. It is like the manufacturer supplying goods to the retailer orwholesaler. E.g. Dell sells computers and other related accessoriesonline but it is does not manufacture all those products. So, in order tosell those products, it first purchases them from different businessesi.e. the manufacturers of those products.


11/46


E-Commerce Transaction Models Consumer to Consumer (C2C) - It facilitates the online transaction

of goods or services between two people. Though there is no visibleintermediary involved but the parties cannot carry out the transactions

without the platform which is provided by the online market makersuch as eBay.

Consumer to Busienss(C2B)- A consumer posts his project with aset budget online and within hours companies review the consumer'srequirements and bid on the project. The consumer reviews the bidsand selects the company that will complete the project. It empowersconsumers around the world by providing the meeting ground and

platform for such transactions.


12/46


Integrating E-Commerce & BusinessActivities

Supply Chain Management

Enterprise Resource Planning (ERP)


13/46


Supply Chain Management

Supply Chain Flows

Materials flows are all physical products, new materials,

and supplies that flow along the chain. Information flows relates to all data associated with

demand, shipments, orders, returns and schedules.

Financial flows include all transfers of money, payments,credit card information, payment schedules, e-payments

and credit-related data.

Supply chain refers to the flow of materials, information, payments, and

services from raw material suppliers, through factories and warehouses

(Value Chain), to the final consumer(Demand Chain). It includes tasks

such as purchasing, payment flow, materials handling, production

planning & control, logistics & warehousing, inventory control, and

distribution.


14/46


Supply Chain Components

The supply chain involves three segments:

UpstreamUpstream, where sourcing or procurement from external

suppliers occur

InternalInternal, where packaging, assembly, or manufacturing take

place

DownstreamDownstream, where distribution or dispersal take place,

frequently by external distributors.

It also includes the movement of information and money and the

procedures that support the movement of a product or a service.

Organizations and individuals are also part of the chain.


15/46


Demand forecasts are a major source of uncertainties

Competition

Prices

Weather conditions

Technological development

Customer confidence

Uncertainties exist in delivery times

Machine failures

Road conditions

Shipments

Quality problems may also create production delays

Supply Chain Problems


16/46


E-Commerce and Supply Chain

E-commerce

can replace all paper documents

can replace faxes and telephone calls with electronic messaging

enhances collaboration and information sharing

typically shortens the supply chain and minimizes inventories

facilitates customer service

introduces efficiencies into buying and selling

enables faster, cheaper, and better communication, collaboration,

E-commerce is emerging as a super tool for providing solutions to

problems along the supply chain. Many supply chain activities from

taking customersorders to procurement, can be conducted electronically.


17/46


E-Commerce and Supply Chain

Upstream Activities improve the upstream supply chain through e-

procurement

Internal Supply Activities from entering purchase orders, to recording

sales, to order fulfillment, to tracking shipments, are usually conducted

over a corporate intranet

Downstream Activities enhance the activity downstream activities by

providing online ordering

Vertical exchanges combine upstream and downstream EC supply

chain activities. These B2B exchanges, provide a medium where

buyers and sellers can meet.

A major role of EC is to facilitate buying and selling along all

segments of the supply chain.


18/46


19/46


Intangible benefits: Intangible Benefit: - It is an indirect

benefit which can't be felt or touched. Ex: Saving time

Information visibility

New/improved processes

Customer responsiveness

Standardization

Flexibility Globalization

Business performance

Reduction in duplication of entries

Supply Chains Benefits


20/46


Enterprise Resources Planning An enterprise is a group of people with a common goal, which hascertain resources at its disposal to achieve this goal. The enterpriseacts as a single entity.

This view of a company or organization is drastically different

from the traditional approach where the organization is dividedinto different units based on the functions they perform. So wehave a manufacturing or production department, production

planning department, sales department finance department and soon

These department have their own goals and objectives. Thesedepartments function in isolation and have their own systems ofdata collection and analysis so the information that is created orgenerated by the various departments , in most cases are availableonly to the tip management and no to the other departments.


21/46


Enterprise Resources Planning The result is that instead of taking the organization towards the

common goal the various departments tend to pull it indifferent directions since one department does not know what

the other does. Also, departmental objectives can sometimesbe conflicting.

In the enterprise way the entire organization is considered asone system and all the department are its sub-system.

Information regarding all aspects of the organization is storedcentrally and is available to all departments. Each sub-systemknows what others are doing. Why they are doing it and whatshould be done to move the company towards the commongoal


22/46


Enterprise Resources Planning

The ERP systems help to make this task easier by integrating

the information systems, enabling smooth and seamless flow

of information across departmental barriers, automatingbusiness process and functions and this helping the

organization to work and move forward as a single entity.


23/46


24/46


Enterprise Resource Benefits Tangible benefits are those measured in monetary terms andintangible benefits cannot be measured in monetary terms but theydo have a very significant business impact.

Tangible benefits:

Improves the productivity of process and personnel

Lowering the cost of products and services purchased

Paper and postage cost reductions

Inventory reduction Lead time reduction

Reduced stock obsolescence

Faster product / service look-up and ordering saving time andmoney

Automated ordering and payment, lowering payment processing andpaper costs


25/46


Enterprise Resource Benefits Intangible benefits:

Increases organizational transparency and responsibility

Accurate and faster access to data for timely decisions Can reach more vendors, producing more competitive bids

Improved customer response

Saves enormous time and effort in data entry ;

More controls thereby lowering the risk of mis-utilization of

resources Facilitates strategic planning


26/46


Web Site EvaluationIn evaluating Web sites, several criteria can be used:

1. Shape: Shape is an extremely powerful tool. It can motivateconsumers, inspire visitors and make a visit to the web site

enjoyable.2. Type: Type should be appropriate and used carefully. For example,a time roman expresses organization and intelligence. It is alsoelegant and conservative.

3. Content: Web sites should provide valuable, timely information-not lots of text. Popular sites include updated information,

interactivity and fun. Well organized, edited, and timely originalcontent set in an attractive and consistent format are traits of greatweb sites.

4. Services offered: What unique services does te site offer?Companies new to the Web think that once they put up a site,

people will flock to visit it. enjoyable. A circle represent Color andgeneral layout have a definite


27/46


Web Site Evaluation5. Scalability : This criterion is related to how easily a site can be

updated. A site high on scalability has a simple structure, uses frames

ad Extensible Markup Language (XML), and has a design that lends

itself to easy maintenance.

6. Speed : The critical question here is how long its takes the visitor to

click from one page to the next.

7. Primary Focus: Every Web site should have a primary focus. For

example, The companys main focus is making glasses, yet it alsoproduces shoes and watches.

8. Professionalism : this criterion considers how professional the site

looks to a visitor. It includes neatness, spelling and grammar


28/46


Internet Marketing Internet marketing is the component of marketing that deals with theplanning, pricing , promotion, and distribution of your products and

services online.

Good Internet marketing strategies clearly communicate a firms

unique selling proposition, or the unique collection of benefits that

creates value for its customers. Everything you do to promote your

business online is Internet marketing.

28


29/46


The Benefits of Internet Marketing The Internet is the widest channel of communication available tosmall businesses. It can help level the playing field for small

businesses on a limited budget that seek to compete in large

markets. No other communications medium enables you to operate a

business from your home, while giving a small business the

appearance of a larger, more established operation.

Marketing your product or service online offers the opportunity for

increased communication with your target market throughtechniques such as interactive websites, email newsletters, online

surveys and forms, blogs, and discussion groups. The Internet allows

you to collect immediate feedback from your client base with little

out-of-pocket expense. 29


30/46


The Benefits of Internet Marketing Print marketing materials and advertising strategies can be expensive

to produce and traditionally have a short shelf life. Internet marketing

techniques such as websites, banner ads and email newsletters, can be

produced at a reasonable cost, can contain more timely informationthan print brochures, and can be immediately and cost-effectively

updated as your business changes.

30


31/46


31

Pros and Cons of Internet MarketingPros:1.Website is an online store: In the Internet market, it can stay

open twenty four hours a day. Customers are spread all over the world

and can make purchases as and when they want.

2. Save a lot of capital: If you email your subscription base, it will be

cheaper as compared to sending a letter through the physical mail.

3. Update your subscribers almost instantly: If you are planning to

start a sale, your customers will be able to start shopping as soon as theycheck their mail.

4.Quick Comparison: Consumers can quickly compare products in

terms of price, quantity, shipping terms, and so on before making a final

choice.


32/46


32

Pros and Cons of Internet MarketingCons:1.Internet marketing is not free. You will have to spend on hardware,

software, designing your website and maintaining it, distribution costs

and time. All these things have to be considered while providing your

products and services.

2.Many people prefer live interaction while conducting transactions. A

small business with a single location will not succeed in compelling

customers to make purchases.

3.Timely updating your website is important at all costs. It is easy to

leave content unattended to, thereby resulting in outdated information.


33/46


33

Pros and Cons of Internet Marketing4.Your customers should know that you provide complete security.

Many of them are hesitant when it comes to online purchases. Credit

card frauds and other malpractices often deter customers from

conducting online businesses.

5.There is a lot of competition in the online market. Unless you can

provide what your customers need within a few clicks, they will be

far gone.


34/46


34

Internet Marketing Techniques The Internet allows for a continuum of marketing techniques rangingfrom strictly passive to aggressive.

Passive Internet Marketing is called Pull Marketing, because it

requires the user to pull the information from the site. The user mustactively seek out the site. Currently, most people access web sitecontent by pulling. Each time a user clicks a link, the browser sends arequest to the Web server (a pull) asking for a specific page. The

browser downloads the page and displays it on the users screen.

Aggressive Internet Marketing, the Web site seeks out potentialcustomers. This is called Push Technology, because the Web sitepushes the information at consumers, irrespective of their interest.The Web server does not wait until the consumer requests a page.


35/46


35

E-cycle of Internet Marketing The Business Plan is a written document that identifies a

merchants business goals and how to achieve them. Thecontent of a business plan includes:

Mission

Product

Competition

Target audience Marketing

Sales plan

Operation

Technology


36/46


36

E-cycle of Internet Marketing Mission: What is your business is trying to achieve? Missions arerelated to the vision (perception or insight into what can happen or

take place in the future) of the owners, which is also considered.

Product: What are your selling? What make it unique? Competition: Who are your competitors? How well established are

they? Analyze their Web sites and review the unique features they

offer customers.

Target Audience: Are prospective customers likely to use the

Internet at work or at home? Do they use e-mail? New groups?

Marketing: How do you plan to reach your customers? What

advertising media do you plan to use?

Sales plan: What sales methods do your plan to employ? What about

distribution channels, pricing, and fulfillment process?


37/46


E-cycle of Internet Marketing Operation: What equipment, location, and size of facility are you

planning to start with? What about the size and quality of staff that

will support the operation? Who are your suppliers? How reliable are

they? How will customers reach you?

Technology: What hardware/software and other technology do you

need? Which ISPs are available? How reliable are they? What are

their charges?

37


38/46


38

E-cycle of Internet Marketing


39/46


39

E-cycle of Internet Marketing Internet Marketing follows a life cycle that begins with planning,

followed by the four P's :

Product

Pricing

Place and

Promotion


40/46


40

E-cycle of Internet Marketing The Product : When it comes to product, the emphasis is on

Viability, Quality, Reliability, Dependability, Integrity. It is more

important in Internet Marketing where customers look for reputablemerchants with quality products at competitive prices.

Pricing : Once the product is identified, the next step is to decide how

much to charge. Web-based pricing strategies differ with the merchant,the market, and the type of customer.


41/46


41

E-cycle of Internet Marketing Place : E-Commerce facilities the exchange the information betweenbusiness and delivery companies to ensure prompt delivery of

physical goods to customers. The Internet itself can be viewed as a

delivery channel for digital products. Thousands of software packages

and applications can be ordered online and downloaded directly onto

the customer's PC.

Promotion : Promotion of a product gets the attention of prospective

customers

Banners (advertising with links to a merchant's Web site) are the

most popular type of Internet ads

Create interest in the product (s) displayed

Build a desire for action


42/46


42

E-Core Values Ethical Issues

Legal Issues

Taxation Issues

International Issues


43/46


43

Ethical Issues Ethics can be described as Fairness, Justice, Equity, Honesty,Trustworthiness, and equality.

Stealing, cheating, lying or backing out of ones words all describe

lack of Ethics.

Code of Ethics: is a declaration of the principles and beliefs that

govern how employees of an organization are expected to behave.

E-commerce & Ethics: Threats to Ethics are due to: faster

computers and advanced networks, massive distributed databases,

ease of access to information, transparency of software, and viewthat captured information can be used as competitive weapon.

Privacy factor: The concern relates to collection of electronic data

about consumers by businesses; security of data transmission; and

unauthorized access / reading of personal files.


44/46


45/46


45

Taxation Issues Taxation issues are the most controversial issue facing e-commerce & global taxation authorities.

In an e-commerce environment, collection of tax is not

easy, due to, location of the merchants business,location of buyer, the type of goods, etc.

Each state and country has different sales taxes &

jurisdictions.

For example, product A may be taxable in Country 1 &

not in Country 2 and even the taxation may differ in

different states of the same country.


46/46


46

International Issues International issues primarily revolve around control of

web-site contents & related e-commerce transactions.

Major concern on international level are:- What right does any one country have to determine

the contents/material available on the Internet.

- Can a country regulate any entity in cyberspace &

not on the soil of that country. Since no common existing international laws apply to

internet & e-commerce, legislation is best left uptoindividual countries and their ISPs.

Date post:	08-Apr-2018
Category:	Documents
Upload:	sheenam-aggarwal
View:	215 times
Download:	0 times

4c5eeModule III E-Commerce Jan 2011

Documents