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4 Level Commitment

4 Level Commitment

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Published by: benny on Nov 27, 2009
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03/27/2013

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KOLEJ TUNKU ABDUL RAHMANSCHOOL OF BUSINESS STUDIESDIPLOMA IN BUSINESS STUDIES(E-COMMERCE & MARKETING)
ABDT 3234Marketing Strategy for E-Commerce
 NAME : LOKE WEI WENREG NO. : 08PBD03076CLASS : Y2M25LECTURER : Mr. Ang TB
 
The 4 level of commitment
Companies can become involved in e-business at the:-a)
Activity level
 b)
Business process level
c)
Enterprise level
d)
Pure play level
a) Activity level
The activity level is the lowest level of the pyramid affects individual business activities that cansave the firm money if automated using information technology or the internet. In this low-risk area, the firm realizes cost reductions through e-business effective and efficiencies.The main e-business models at the activity level includes
online purchasing, order processing,e-mail, content publishing, order processing, e-mail, content publishing, businessintelligence, online advertising, online sales promotion,
and
dynamic pricing strategies
.There are some descriptions of the business model:-a.
Order Processing
- This model occurs when online retailers automate internettransactions created by customers. b.
Online Purchasing -
Firms can use the Web to place orders with suppliers, thusautomating the activity. Normally this activity is not a marketing function, but whenretailers such as Wal-Mart created automated order processing throughout the supplychain, it had a huge impact on marketing.c.
Content Publishing
- In this model, companies create valuable content or services ontheir Web sites, draw lots of traffic, and sell advertising. In another type of content
 
 publishing, the firm posts information about its offerings on a Web site, thus saving printing costs. See the “Let’s Get Technical” box for streaming audio as subscription- based content.d.
E-mail
- When organizations send e-mail communications to stakeholders, they savetheir printing and mailing costs.e.
Business Intelligence (BI)
- This activity refers to the low-cost online gathering of secondary and primary information about competitors, markets, customers, and more.f.
Online Advertising and Public Relations (PR)
- As an activity, the firm buysadvertising on someone else’s e-mail or Web site. When the firm sells advertising, it isengaging in content sponsorship, a higher-level process. Online PR includes a firm’s ownWeb site, as well as online press releases, and more.g.
Online Sales Promotions
- Companies use the internet to send samples of digital products such as music and software, or to run sweepstakes, among other tactics.h.
Pricing Strategies
- With dynamic pricing, a firm presents different prices to variousgroups of customers, even at the individual level. Online negotiation through auctions isone type of dynamic pricing initiated by the buyer instead of the seller. Technologyallows this activity to be automated.
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