INTRODUCTION TO E-COMMERCE

E-Commerce and Internet Marketing

Ms. Aileen P. de Leon, MIT, MOS

E-MARKETING
Empowers entrepreneurs to exceed their
previous potential. Small and medium-sized
enterprises(SMEs) can now participate on a
global scale previously unreachable to them
with the help of powerful digital tools such as
the Internet.
MOST INNOVATIVE THINGS:
Functional website
Youtube uploading
Text Blast
Email Servers
Electronic Fund Transfer Transactions
E-MARKETING – is understanding the
consumer that we want to target, then
employing integrated marketing programs
to establish customer relationships in the
businesses online. It affects traditional
marketing by:

1.)it increases efficiency in traditional

marketing functions;

2.)the technology of e-marketing

CHALLENGE?
To continue building and implementing
according to the capabilities of available
technology, while at the same time, keeping
close track on, and being prepared for,
emerging technologies as the market
develops. More and more companies have
taken the initiative to utilize this revolutionary
system with its new opportunities, tools and
methods as a means of doing business more
efficiently and profitably.
SO WHAT IS E-COMMERCE?
ELECTRONIC COMMERCE is the integration of the
electronic mail, electronic funds transfer, electronic data
exchange, and similar techniques into an automated,
electronics-based system that encompasses business
functions such as procurement, payments, supply
management, transportation, and family operation.

It is a means to perform business

transactions online. It uses no paper in
the processing and execution of a sale.
E-commerce is any business exchange
that uses electronic means in pursuing
and ordering certain goods and services.
BENEFITS OF E-COMMERCE
1. Better customer service and increased
revenue
2.Improved company image competitive
advantage, and accessibility to international
markets
3.Ease of customer information exchange,
thereby encouraging customer loyalty
4.Paperless documentation/transactions
5.Accurate supplier information exchange
6.Attraction of new investment
7.Lower procurement costs
The website should:

 Showcase marketing products

 Offer extended services
 Present institutions or ideas
Website offers:

 More opportunities to sell directly to

customers
 Companies can transact business
with one another more efficiently
What regulations cover e-commerce marketing? E-commerce Law(June 14, 2000)
CATEGORIES OF E-COMMERCE
B2B (Business-to-Business)
Companies doing business with each other
such as manufacturers selling to
distributors and wholesalers selling to
retailers. Pricing is
based on quantity
of order and is often
negotiable.
B2C (Business-to-Consumer)
Businesses selling to the general public
typically through catalogs utilizing shopping cart
software. By dollar volume, B2B takes the
prize, however B2C is really what the average
Joe has in mind with regards to ecommerce as
a whole.
C2B (Consumer-to-Business)
A consumer posts his project with a set
budget online and within hours companies review
the consumer's requirements and bid on the
project. The consumer reviews the bids and selects
the company that will complete the
project. Elance empowers
consumers around the world by
providing the meeting ground
and platform for such
transactions.
C2C (Consumer-to-Consumer)
There are many sites offering free classifieds,
auctions, and forums where individuals can buy and
sell thanks to online payment systems like PayPal
where people can send and receive money online
with ease. eBay's auction service is a great
example of where person-to-person transactions
take place everyday since 1995.
INTERNET MARKETING ACTIVITY:

 Acquire a good domain name

 Emphasize ease of use
 Offer online value
 Satisfy consumer needs
 Explore URL and web advertising
techniques
 Attach signature tags
 Use of search engines, directories,
announcements as marketing tools
 Explore viral marketing
 Distribute free newsletters
 Find your niche
 Gather affiliates
 Send targeted emails
 Produce and publish news articles
 Distribute press releases online
 Run an auction
 Run contests
 Determine online communities
 Establish an online forum
 Distribute online coupons
 Conduct surveys
 Participate in a charitable website
 Post links to internet malls or portals
 Participate in paid or free banner
advertising
 Practice reciprocal web linking
 Paid or free classified ads
 Host classified ads
 E-mail auto-responders
 Add a search engine
 Apply for awards
4 Ps in MARKETING MIX
E-COMMERCE vs. E-MARKETING
E-COMMERCE – use of electronic network to simplify and
speed up all stages of the business process, from design and
making, to buying, selling, and delivering. It harnesses the
power of the Internet to help you make money more
effectively and efficiently. It means building your online store
on a custom-designed foundation of an inventory database,
and adding secure credit-card transactions with real-time
credit card authorizations using CyberCash or a similar
system.
ONLINE SERVICES OF E-COMMERCE
 Retailing
 Manufacturing
 Baking
 Trading
 Advertising
 Healthcare
 Education
DIFFERENCE BETWEEN E-COMMERCE AND E-MARKETING

AREA MARKETING COMMERCE

1. Advertising Provides information and details to Simply describes the features and
answer the inquiries of the customer benefits of the product

2. Target Market Knows his/her target market well. No specific target market
Products needed/wanted by the target
market

3. Promotions and Discounts Individually tailored to customer Standard for all customers

4. Pricing of Products Based on the ability of the customer to Set by seller without taking into
buy and examine the worth of the consideration the customer
product

5. Development of New Created to cater to the needs and Based on research and development
Products wants of the customer

6. Relationship with Customer Continues to maintain and enhance Long-term customer relationship is not
long-term customer relationship that important. Immediate profit is what
counts

7. Distribution Through direct channels or Standard distribution determined by the

intermediaries depending on the intermediaries of the seller’s choice
customer preference
BRANDING ON THE WEB
BRAND – identifies the product and
differentiates it from its competitors. It ensures
success of a product/service. It becomes the
asset of a business to hold in the e-economy.
However, good branding of a product will not
necessarily transfer to another environment. Some
experts have differentiated the emotional branding that
companies traditionally use in their other promotional
efforts to uplift the image of their product. Perhaps
these types of branding can work in TRI-media(TV,
radio and print) because the “ads are in a passive mode
of information acceptance. However, emotional
appeals are hard to convey in the Internet.
Main reason?
Web is controlled mostly by the
user. Many web users are considered
busy people so they probably do not
have the time to buy into emotional
appeals. Marketers are attempting to
create and maintain brands on the Web
by using “rational branding”.
RATIONAL BRANDING – offers to help web
users to view an ad. The emotional appeal of
a TV is replaced with a cognitive appeal of
providing “functional assistance”. Customer
assistance, detailed product information, and
personalized viewing of products are
examples of strategies to appeal to the
cognitive side of the consumers.
BRAND EXTENSION – another strategy on
web branding. Using an established brand
and extending the scope of its services or
sales.
BENEFITS OF E-MARKETING
 Power-shift from sellers to buyers
 Market fragmentation
 Death of distance
 Time compression
 Knowledge Management(KM)
 Customer Relationship Management(CRM)
 Supply Chain Management(SCM)
 Enterprise Resource Planning(ERP)
 I can blog. I can market.
 Comments? Suggestions? Anyone?
 Virtual store
E-MARKETING IN THE ASIAN CONTEXT

The new e-business philosophy will no longer

be product-centered(e-commerce), but will shift to
customer centricity(e-marketing). Customers will be
at the center of the e-economy. With open
communication interaction and “tight feedback
loops” with the customer, it is no longer the “push
strategy” but more on “pull strategy”, putting the
customer desires first, not only with regard to the
product, but the entire business entity.
wherein:
PUSH STRATEGY - you ‘push’ your
content or product towards the audience
which may or may not be aware of it.
PULL STRATEGY - the customer ‘pulls’
your content or product towards
themselves, because they are interested in
learning more about it.
GUIDE FOR E-CONSUMERS

1. Know who you are dealing with

2. Know what you are buying
3. Understand the terms, conditions, and
costs involved in the sale
4. Protect yourself when paying online
5. Look out for your privacy
6. Understand what recourse you have if you
run into problems with your purchase
7. Get smart e-commerce. Demand
consumer-friendly policies and procedures
E-MAIL MARKETING
- Fast gaining ground in all countries,
across different demographics. It can yield very
high response rates.

EFFECTIVE E-MAIL MARKETING:

 Privacy
 Relevance
 Control
 Rewards
 Brand Strength
 Engaging Interface/Personalization
OTHER SIDE OF E-MAIL MARKETING
SPAM – It has since been adopted by the Internet
community to signify the mindless mass posting of
messages to Usenet or e-mail, flooding the Internet
with many copies of the same message.

 It is unwanted, invasive Internet advertising.

 It can come from Usenet’s newsgroup or via email.
 WHY IS IT NOT GOOD? Costs time and effort
INTERNET DEMOGRAPHICS
1. RECREATIONAL CONSUMERS –
represent 27% of the total Internet
user population. They pay
personally for Internet access,
primarily access at home and use
the Internet primarily for personal
applications.
2. OCCUPATIONAL CONSUMERS –
represent 12% of the total Internet user
population. This segment pays personally
for access, accesses primarily at home,
and uses the Internet mainly for business-
related activities such as conducting work
at home or running a small business.
3. CORPORATE USERS – represent
some 46% of the total Internet user
population. Their Internet access
is subsidized, they use the Internet
primarily for work applications, and
usually access it from workplace
locations.

4. ACADEMIC USERS – represent

15% of the total Internet user
population. Their usage is
subsidized; they access from
academic locations, and primarily use
the Internet for research and
educational applications.