Chapter1 1.

1

Introduction

Broad Problem Area

The cutting edge for business today is Electronic commerce and marketing. The meteoric growth of electronic commerce and marketing at the turn of the last century is truly baffling. During this decade, market space has grown in several began directions. to operate unique and As increasing number of organization in the Internet to market space, in they the is face of create commonly All value

innovated efficient and

propositions

process. At the organization level workflow has became more productive. via of computer More e-commerce companies associated with buying and selling of information, products services task networks. the most uphill developing effective method

getting their product to their target market. It is a fact that integration of electronic commerce and marketing will bring with it a renaissance as it of advertising, an sales to and get them the the marketing company, against function to explore and present product This opportunity and

close to the customer, to bring the customer inside the new of ideas pretest examines in real customers. state research

involvement

information

technology

organization based in Islamabad with the emphasis on the evaluation of current state of infrastructure required and its use in e-commerce with in context of the current policy developments by the government of Pakistan. 1.2 Rational of the Study

1

Researcher will be interested to gather the relevant and factual information regarding e-commerce and marketing which Moreover will the give of extent a the to complete E-commerce which insight and of the are implementation marketing.

organizations

employing these technologies and the unexplored areas will also be brought into consideration. The paper will stress the importance of E-commerce and marketing implementation and benefits for organizations as well as society as a whole. In fact organizations worldwide are establishing a basic electronic presence on a global open network, learning from the experience and gradually becoming more sophisticated in their use of the technologies. On part of organizations it is pertinent to understand that best way of gaining the mystery of electronic commerce that will be vital in tomorrows markets is to try it today. 1.3 In Problem Statement today’s and to and globalized gaining manage state a the of world an organization edge aspects and rests of long-term with its electronic and its competitive important E-commerce

success ability commerce the

marketing. The project therefore envisioned marketing

current

implementation in organization based in Islamabad. 1.4 Theoretical Framework

2

Defining E-Commerce Electronic commerce is modern business methodology that addresses the needs of the organizations, merchants, and consumers to cut cost while improving the quality of goods and services and increasing the speed of service delivery. The term also applies to the use of computer networks to search and retrieve information in support of human and corporate decision-making. (Kalakota & Whinston, 1996) E-commerce is consist of buying, selling, marketing and

servicing of product and services over computer networks. The information technology industry might see this as an electronic business application aimed at commercial transactions. (www.bambooweb.com) E-commerce refers to transactions such as buying; selling, information flow and fund transfer over the Internet. Ecommerce broadly encompasses all business activities taking place over the intent. It consists of electronic retailing (e-tailing), electronic data interchange and electronic fund transfer. (Asoke, 2004) The use of Electronic transmission mediums to engage in the exchange, services digitally, including requiring from buying and to selling location. of products physically (Greenstein and or & transportation either

location

Femiman, 2000) What is E-Marketing Marketing is a process of planning and executing the conception, distribution, promotion and pricing of ideas,
3

goods

and

services and marketing of The add

to in

create two

exchanges First,

that it

satisfy affects increase marketing business company

individual traditional technology strategies. models that

organizational

needs. ways.

E-marketing

efficiency in traditional marketing functions. Second, the E-marketing customer transforms results and or many in new transformation value

increase

profitability. (Judy Strauss & Raymond Frost 2001) E-marketing is the application of a broad to range of more

information technologies for:  Transferring customer  More value marketing through strategies create more planning effective and segmentation, executing the

targeting, differentiation and positioning strategies; efficiently conception, distribution, promotion and pricing of goods, services and ideas and  Creating and exchanges that satisfy individual consumer customers objectives. (Strauss, organizational

Ansary & Frost, 2003) Electronic Commerce Framework From clear the business activity already taking will place, built block it on in is the the that e-commerce each application of the

existing technology infrastructure. None of these would be possible  without building infrastructure: Common business services, for facilitating the buying and selling process.  Messaging and information distribution as a mean of sending and receiving information.

4

E-Commerce Applications       Supply Chain Management Video on Demand Remote Banking Procurement and Purchasing Online Marketing and Advertising Home Shopping (Kalakota & Whinston, 1996)

Electronic Commerce Electronic commerce has unleashed yet another revolution, which is changing the way business buy and sell products and services. It is associated with buying and selling of information, communication products networks. and services over computer traditional E-commerce helps

commerce through new ways of transferring and processing information since it is information, which is at the heart of any commercial activity. Information is electronically transferred from computer to computer, in an automated way. This has, in fact, transformed the way organizations operate. Electronic invoices, data shipping interchange; notices, EDI can be used and to

electronically transmit documents such as purchase orders, receiving advices other standard business correspondence between trading partners. EDI can also be used to transmit financial information and payments in electronic form. (Bajaj, Nag 2000) EDI Application In Business Although EDI was developed to improve transportation and trade, it has in spread everywhere. that
5

Four

very

different

scenarios

industries

uses

EDI

extensively:

(Kalakota & Whinston. If the claims an debits of the various participants-individuals.international transfer processing and or cross health border care and trade. EDI for retail electronic insurance fund claim As (EFT). 1996) Electronic Payment Systems Electronic payment systems are becoming central to online business process innovation as companies look for ways to serve customer faster and at lower costs. In sum. develop new merchandise and market research methods and introduce better customer service. then the entire aspect companies banks is is of and nonbanks are not balanced because of payment delay or even worse and defaults Hence secure an business of and chain disrupted. companies have applied a number of EDI based solution to improve business process for both strategic and competitive advantages. In other words EDI has shaped a company’s marketing and distribution efforts by helping to create new distribution channels. and cost reductions of customer can significantly and standards satisfaction quality industry productivity. Electronic payment system and ecommerce are intricately linked given that online consumers must pay for products and services. Emerging innovations in payment for goods and service in electric commerce application promise to offer wide range of new business opportunities. prompt important payment. these examples illustrates. major improvement in product manufacturing and customer service response time allows companies to be more competitive. e-commerce settlement clearing credit or debit claims 6 . In some cases EDI has transformed Increased change operational aspects of a company’s business. manufacturing procurement.

com).dell. Lycos and Excite were originally just search engines. shopping and so forth. games.Portal A point of entry to the Internet. Many portals such as Yahoo!. (Judy Strauss & Raymond Frost 2001) 7 . Well known electronic storefront (www. Digital goods may be delivered directly over the Internet while physical FedEx. maps. software and music.cdnow. In other words they are destination for news.com) Computer (www. include goods E-tailers CDNOW are shipped via logistic provider such such as distributing digital and products Dell media. What makes them portals is that they provide many services in addition to searching. (Judy Strauss & Raymond Frost 2001) E-tailing The e-tailing model is one of the most visible e-commerce business models. In this model merchants set up online storefront and sell to businesses and or consumers.

electronic through retailing via catalogs and kiosk and home shopping network. games on demand and news on demand. collaboration 8 .an advantage over paper publishing. shape. for these that are educational. established within the organization to provide information internally to employees. The information on intranet web pages can be quickly and easily changed. Needs envisioned include entertainment on demand. they would have an extranet. (Judy Strauss & Raymond Frost 2001) Electronic Commerce Consumer Applications Businesses looking to get involved in the electronic market place want fast answers to some very basic questions. to that educate as well as entertain? What amount consumers willing services? are very product be priced so that firms are competitive as well as profitable. What types of services do consumers really want or are willing to pay for? Do they want applications that bring about that pay entertain. electronic markets whose structure and population are still in the early stages. If two companies link their intranets. (Judy Strauss & Raymond Frost 2001) Extranet Extranet are two types of network that are joined for the purpose of sharing information. video on demand. How should to or the social are change. interactive distance education.Intranet An intranet is a computer network similar to the Internet. pinpoint or Consumers decipher desires in hard predict.

(Asoke. Kalakota & Whinston. has whereas electronic e-commerce payment paperless supporting monetary transactions. However. transaction costs and labor cost and helped in market expansion. also termed epayment has reduced a lot of paper work. Debit Cards. along with these advantages. Electronic payment is user friendly and it takes comparatively less processing time than manual processing. E-credit and Cards Emoney. Electronic payment. Smart Cards. 2004) 9 . medical consultation and many more. A payment through electronic modes benefited businesses financial institutions. major frauds and risk are involved in these payments procedures because a user has to provide personal information while paying electronically. The various modes of electronic payment are Credit cards.desktop video conferring. Thus it’s essential for any e-commerce and online banking business to ensure the privacy of individual and their identification details. 1996) Modes of Payment Check and cash are physical and traditional refers and to modes of payment.

services balance and including enquiries. teller Electronic banking refers to banking transactions taking network Automatic machines (ATM) and check clearing. attitude and values? What effects does the lack of personal contact have on teaching and learning? CD Rom and Electronic Books Traditional books are expected to face some challenges from CD-Rom based information delivery. Internet banking and electronic banking. banking. academic and professional and reference books. 10 . investment and wealth management. account processing. (Asoke. 2004) Challenges in Online Education Online How education online is not without differ its challenges regular and obstacles. Internet place on banking private is conducted such through as a website. as well as a myriad of unanswered questions: does education from classroom instruction in terms of quality of student learning? What impact does online education have on other outcomes of classroom education.Banking Services Website of various online money banks offers online loan banking access. Online banking can be of two types. educational. such as development of social behavior. transfers. The book market is highly varied and ranges from adult and children consumer books.

education of and information other games. CD Rom publishing uses a variety of compact disk and CD-R (recordable specialized encyclopedias entertainment. In 11 . Retailers are scrambling to fill the order. wisely making huge investment in technology. demanding lower prices. Video is another emerging area of electronic publishing. digital camcorders computers capture CDs) and for storage such forms and as of distribution book. Electronic publishing can be categorized into three major classifications: Online full text publishing uses various online databases for storage and distribution of information on demand to consumers. This technology and involves to use of video image in cameras. (Kalakota & Whinston. Examples of organization in this line of publishing are Dow Jones and CNN.Technological Components of Education On Demand The primary technological component of education on demand is electronic publishing. and a large selection of in season goods. 1996) Electronic Commerce and The Retail Industry Consumers are pushing the retailers to the wall. on line public databases and news on demand. form and distribute it to others or paying subscriber over the network. costs. They are revamping distribution channels to make sure that warehouse costs are down by reducing their average inventory levels and coordinating the consumer demand and supply patterns. buying reducing more profit and margins. Example of this type of publishing include bibliographic databases seen in libraries seen in libraries. The are slashing reducing back cycle office times. better quality.

management evolution Japanese approach to manufacturing and initially introduced for Toyota production system.the push to reduce prices. The following with group JIT management systems: technology. consisting The JIT of a on number the of different of an management specific of the practices dependent characteristic system. material. waste reduction of inventory throughout the logistical systems of manufacturing of firms involved process. It allows incorporate its supplier efforts towards in the JIT upstream purchasing and portion focuses provides it in a of on the the cycle. (Kalakota & Whinston. The first principle refers to the elimination of all waste (time. total quality control and quality circles. setup productive maintenance. more and more retailers are turning to overseas suppliers. uniform workloads. 1996) Just in Time Manufacturing Just in time (JIT) is viewed as an integrated management system plants. to be is careful audit needed earlier production are Basically just for optimizes time. no To supplier and customer relations. in part because of cheap labor costs. 12 . labor and equipment) in the production cycle. In a production plant the materials or later supplied demanded than processing. multifunction employees. practices total are typically reduced associated times. is based on two principles: elimination of waste and empowering workers. focused factory. JIT purchasing. JIT purchasing considered considerable manufacturer eliminating manufacturing the an to integral part of JIT has received attention in electronic commerce.

but getting cost conscious customers to the checkout line depend great deal on marketing promotion such as coupons for consumer packaged goods in grocery and drugstores. Those are two powerful reasons why every text based and still picture based interactive experiments like videotext has failed in the past. Maximum public acceptance will require that interactive catalog services have a more entertaining visual appearance than traditional text 1996) Integrated Marketing and Logistic The highly competitive environment of the 1990s means that marketing must do more than sell. which may not see the need to integrate it computer system with logistic planning In the system time to of 13 intensive catalogs have had. Promotion has traditionally been part of the marketing function. Interactive marketing is accomplished in electronic markets via interactive multimedia catalogs that give the same look and feel as a shopping channel. in any customer oriented industry. (Kalakota & Whinston.achieve JIT many large cooperation have installed private communication networks. choice cutthroat . For instance. Marketing must define the way a company does business. Users find moving images more appealing than still images and listening more appealing than reading text on a screen. perform exploring with supply chain management. supply chain management begins with information obtained at the checkout counter. Marketing and Electronic Commerce Electronic commerce is forcing companies to rethink the existing ways of doing target marketing and relationship marketing and even event marketing.

To combat that threat. and use the information garnered from the customers for downstream activities. companies interface with their customers and are realizing that they do not understand marketing at all in the electronic age. product sales and pricing strategies and advertising and promotion campaigns. integrated marketing could be the key to survival. electronic commerce demands radical changes in the marketing process. is not more marketing but more intelligent marketing. Spurred on by information have begun technology to scrutinize competitively. Broadly edge in speaking. to create and sustain a relationship between the company and the customers. throwing costly resources at the market as a way to retain customers. marketing markets. they often increase their sales and marketing force. 1996) Advertising and Marketing on the Internet Instead of merely transforming commerce from nonelectric world to an electric platform.competition and unpredictable shifts in demand. companies face the end of customer brand loyalty. planning. The real solution. Sales. (Kalakota & Whinston. of course. 14 . identifying allied management promotion areas telemarketing finally in post sales (keeping the customers happy through online customer service). That means marketing must find ways to integrate the customer into the company. advertising and the marketing desire are to fast use emerging as hot subjects for more the technology oriented business professionals. The challenge of marketing arises from the fact that that with unprecedented choice. several in and of technology is changing firms marketing areas: targeting direct in manufacturing of in and new and logistic in the and of analysis customer.

The attraction of POS system is that they record each sale in a central database using a scanner. Marketers are learning that valuable information can be collected from the customers on line with minimum efforts and low cost that otherwise would take months. retailers. which reads the bar code on the product. based means to marketing to do can market offer manufacturer and and research customer establish brand loyalty. online marketing is equivalent to publishing a World Wide Web page with product information that shopper can browse through. 1996) The New Age of Information Based Marketing The interactive marketing brought on the electronic commerce will change the role of small business. Point of Sale (POS) scanning system have played a major role in shifting power from manufacturer to retailers. Nowadays retailers have an advantage over manufacturers because they can measure the customer response and get first crack at the broadest range of information. market presence 15 .Misunderstandings electronic markets about are the nature Many of think marketing that in rampant. Indeed. Retailers Versus Manufacturer The roles of retailers and manufacturers are fast reversing in electronic commerce. Information retailers a prospecting. centralized buying that ensures lower prices through volume purchasing and efficient distribution chains. (Kalakota & Whinston. manufacturers and media companies. so that retailers check to no longer out have what a wait for periodic to inventory Through find they need record. as large innovators like WalMart have amply proven.

Direct order micromarketing is focused on selling products directly to consumers in their homes or businesses. Customer targeting is one way to get closer and to create and sustain a two-way flow of communication between the seller ad the buyer. to develop and exploit niche markets. Computers have armed micromarketing with more knowledge not only about their own business but also about the customer. Target and Micromarketing In electronic commerce. Direct mail and telemarketing are two fast growing ways to micro markets. Product or Service Bundling Bundling is a classic marketing strategy in which two or more complementary products and or services are offered as a package at and a discounted price. with in technology the reach has of put target and micromarketing small business. Example season of bundling for include two for the price of one airline tickets. Online Pull based advertising includes: 16 . they have proven to be very effective sales tools. not only to find prospects but also to qualify Because both direct mail and telemarketing can be easily measured and quickly adjusted to appeal to the needs and expectations of customers. Catalogs are in this segment of marketing.and distribute redeemable coupons and to create customized product bundles. There are two main types of micromarketing: Direct relationship micromarketing is aimed at simulating sales at retail establishments through direct contact with consumers in their homes. Both methods are able them. computer hardware software combinations. tickets sport and meals specials in restaurants.

with customers Dialogue with the customers. Billboards: an example of pull-based advertising is the web pages or set up by many different commercial these ventures. 1996) Interactive Marketing Process on the Internet Step 1. Often recommendations from users are offered in other types of communications such as product oriented or service oriented Internet discussion forums. Create Segment and identify potential customers promotional. Interacting about Step 5. and advertising and educational order material and (WWW page with multimedia effects-audio and video) (Product information Step 3. (Kalakota & Whinston.  Endorsement: specific posting are made to subject Internet discussion forums.  Catalogs Yellow Pages Directories: directories are searchable or browsable databases of advertising. questions and answers Learning from customers Incorporating feedback from customer in new advertising and marketing strategy Identifying new market using experience in product development Step 6. interactive discussion among customers various features offering endorsements. complementary products. forms questionnaires) Put the material on customer computer screens Push based marketing –direct marketing using news group and emails Step 4. Step 2. Online customer service 17 .

direct marketing via computer reached about $2 billion in the United States. but it grew more than 1. billion in sales were estimated in United States.(Kalakota & Whinston. This figure is small. 1996) Improving Direct Marketing Traditional (catalogs) direct and marketing is done by In mail order $75 telephone (telemarketing).000 percent in less than four years. information rich. E-commerce Impact Bloch suggest the following EC impacts: Product Promotion Electronic commerce enhances promotion of products and services through direct. 18 . In 1998. and interactive contact with customers. 1998.

New sales channels Electronic commerce creates a new distribution channel for existing customers Direct Saving The cost of delivering information to customers over the Internet (when delivery realized results via in VAN in with substantial non Major saving to senders or also as are compared electronic delivery such products. which reduces the administrative time of port related transactions from days to minutes. Reduced cycle time The delivery of digitalized products and services can be reduced related to to seconds. savings product delivering digitalized music and softwares versus physical delivery. cutting the cycle time by more than 90 percent. FedEx allows customer to trace the status of packages). systems). international reduced significantly. and thanks the to its direct reach of of bi-directional nature communication. Also intelligent agents can answer standard e-mail questions in seconds. physical border Also can the be administrative especially work across delivery. Customer service Customer service to can find be greatly enhanced by enabling (for customer their detailed information online example. Brand or corporate image 19 . One example is Trade net in Singapore.

. E-marketers for may from different approaches segment 20 . many firm uses undifferentiated strategy. marketers must select the best for targeting. Wrigley’s gum uses this strategy. be sizable and growing and hold great potential for profit. as Intel. necessary their Wal-Mart.  or Multisegment marketing occurs when a firm selects two more segments and designs marketing mix strategies select among a targeting four strategy. they review the opportunity analysis. Next emarketers select coverage:  Mass Marketing.com companies means Traditional Dell. banners ads that appear on portal site home page (e. to generations trust and which Cisco companies achieve. occurs when the firm offers one marketing mix for entire market. new comers can establish corporate images very quickly. also called undifferential targeting. affirm did in three to such use is years took for web and traditional sales. What image amazon. Corporate direct Disney. Other times it is a lengthy and thorough process. To do this. For example.g. activities brand image.On the web. Yahoo!) tend to appeal to the entire market. an online segment must be accessible through the Internet. To be attractive. their corporate identity Targeting Online Customers After market reviewing many potential segments. Sometimes this is as easy as discovering a new segment that visited the company’s web site and then experimenting with offers that might appeal to this group. and generally look for the best fit between the market environment and the firm’s expertise and resources. On the internet. consider findings from SWOT analysis.

Don’t sell of message they either haven’t the asked to receive or don’t not want to receive. Amazon adopted this strategy when it and develops one or more marketing mixes to meet the need targeted web users exclusively. The Internet technology makes this mass customization possible in ways that were unimaginable 10 years ago. Taken to its extreme. It tracks the books that its customers read and makes recommendation based on their past purchases.  of  for each. Most firms use a Multisegment Niche marketing occurs when a firm selects one segment that segment. one is that is currently being by many individualized targeting. consumer the data without Unlike express permission user. People should receive a commercial 2.com builds a profile of each user who browses or buy books at its site. The Internet realized big promise. 2003) Guidelines for Internet Advertising 1. Ansary & Frost. Amazon also sends email notifications about products that might interest particular persons. Micromarketing also known as individualized targeting. This is the marketing concept at it’s finest: giving individual consumers exactly what they want at the right time and place. Amazon. (Strauss. Don’t send intrusive message. occurs when a firm tailors all or part of the marketing mix to a very small number of people. some commercial services where users generally understand that their 21 .specifically strategy. this can be a target market of one person. firms.

Marketers should never gather data from users without asking for permission. Internet data should remain the users private property. 1994. Marketers should be able to conduct consumer research so long as respondents are made fully aware of the consequences of answering the research questionnaire.5 Given Hypothesis Development the general countries the underdeveloped like Pakistan due environment there to may not of in be a a should list is appear servers. There may not be a significant relationship between E-commerce and marketing and their determinants like Online banking. Never use Internet communication software to conceal activities. online education. Conduct research only with the consumers’ informed consent. 22 . internet service providers performance and online advertising techniques. 4. which are usually cross-posted to hundreds developing used by extensive application of E-commerce and Marketing practices organizations lack proper infrastructure and financial constraints. 5. C16) 1. unrelated only The in designated posting news to most objectionable commercial newsgroup. guidelines and parameters. Conduct promotions and direct selling only under full disclosures. But users should be given an opportunity to review the rules. 3. August 3. Advertising groups and advertising of groups. Markets should be free to offer promotions on the network. 6. online entertainment.names will be sold to other businesses. (New York Times. p.

2. which deals with the Business strategies for value creation. To investigate the extent to which the company. 3. transaction and Internet based e-commerce and into business networking and other infrastructure issues. both new and old.1. Business Management Aspect. The software includes design. are integrating their their e-commerce strategies and and marketing operations. databases. To identify the direct and indirect use of information technology infrastructure from the perspective of Ecommerce and marketing. Regular monitoring information keeping is up an research can pace benchmarking competition. 2.6 It Objectives of the Study is necessary the and of to collect of and analyze and information for and in the status such and This in e-commerce e-marketing be with to valuable the study regarding feedback feedback improvement process. global effort following area in the organizations: 1.Technology domain web the Aspect. 4. languages. growth and customer 23 . 1. which consist of Telecommunication. To understand the driving forces behind the adoption of E-commerce and marketing. To study the government policies for fostering the IT infrastructure marketing. programming and page customer interface management. security and privacy management and large scale data mining.

1. telephonic instrument or computer or magnetic tape so as to order. government. This millions corporate.development and retention and government policies for nurturing the internet based E-Commerce. chain management. Edutainment Edutainment is defined as software. Electronic Fund Transfer Electronic fund transfer is defined as any transfer funds initiated through an electronic terminal. and the Web. instruct or authorize a financial institution to debit or credit an account. Event marketing It refers to setting up a virtual booth where interested people come and visit. 24 . Internet The global includes network of interconnected of networks.7 Some Definition of Terms important terms used in all the thesis and their definition are given below: Electronic conducted Business by the customer Includes electronic such as activities business supply organization relationship intelligence. management. electronic books and interactive games that have an educational component. newsgroups. e-commerce. organizational and private networks as well as emails.

Local Area Networks A local area network is a group of computers and associated devices that share a common communications line or wireless link and typically share the resources of a single processor or server within a small geographic area. Subscriber can then dial into the local network to gain Internet access. Relationship marketing Building and sustaining a long-term relationship with existing and potential customers. Target marketing It refers to isolating and focusing on a segment of population and then targeting it to fulfill their needs. web and the like). routers and modem attached to a permanent highspeed Internet backbone connection. news. Supply Chain Management The behind the scenes coordination of the distribution channel to deliver products effectively and efficiently to customers. Wide Area Networks 25 . Kiosk Kiosk offer buyers the or opportunity structure to purchase in a from a freestanding facility located retail complex or other public area.Internet Service Provider Company that has a network of servers (mail.

26 . connotes the inclusion of public (shared user) networks.A wide area network owned or is a geographically but the term dispersed usually telecommunications network. Web The portion of the Internet that supports a graphical user interface for hypertext navigation with a browse such as Netscape or Internet explorer. A wide area network may be privately rented.

The highest percentage of people using Internet was in US where 4501 persons per 10. It was found that Singapore tops in the use of Internet facility in Asia-Pacific where 2435 persons per 10. Information was taken from wide variety of sources. Japanese.000 have access to Internet followed by Canada where 4333 people use 27 . case studies. newspaper collected. 14.5 persons per 10. articles.000 people have access to Internet.5 in Nepal which considered to be the least developed country of the region. 10. 2123 Koreans. 1428 2167 Hong Taiwanese. Kong residents and 657 Malaysians per 10. NGOs. industries and company websites. Pakistan is way behind most of the countries of the region in Internet connections essential for conducting this mode of business.000 South people avail 1609 this facility. and Internet Development Magazines such as Spider. According to the statistics available on the Internet only 4.Chapter2 Desktop Literature Review based research and information 2004 to gathering March was ongoing for the duration of the project approximately for seven-month Relevant period (September articles were 2005).5 in Sri Lanka and 6. The News.000 people in Pakistan use this facility compared with 45 in India. Computer World. research reports and profiles of Ecommerce and Marketing of leading cooperation were of great help in understanding the issues pertinent to this research. Information was also collected from worldwide search of governments. Pakistan Lags Behind in E-Commerce Preparation Although e-commerce is poised to become the only forum of future trade within this decade. Information rich sources included Dawn.5 in Iran. Published books.

000. he said. he 28 . advertising able to free websites real time. A study of the Internet use in Pakistan revealed that the usage is mostly at the individual level in main cities where families use this mode to maintain regular contacts with their relatives living outside Pakistan particularly in the West.this facility. It was found that although a few business houses in the corporate sector have invested in the infrastructure required to run an independent information technology system but the high cost involved in acquiring various hardware and software needed to compete the world in e-commerce forced them to rethink their strategy.000 using Internet followed by Germany where the usage is limited to 1924 persons per 10. Michael Hoffman said SMEs required the same programmes and software needed by large companies to gain full access to the international market. in a variety chat of layouts and A styles that supports customized logos. Hewllet Packard Vice President for AsiaPacific. User could also be set-up online capabilities. which hosts personalized. programme is needed for document storage and sharing which allows users to organize documents in an unlimited storage directory. Hoffman said each SME required a web-site builder. In Europe. Britons are on top with 2656 people per 10. These SMEs. as abroad. most of Exploration them do not of new markets to is know how make optimum use of the available software. and support web-based file sharing with authorized colleagues and clients. It was found that there was a limited use of Internet in the country for e-commerce as this facility is availed mostly by the big corporations and the already-established exporters who with their limited knowledge of computer use this facility mostly to maintain quick contacts with their regular rarely customers done.

both national and foreign. in acquiring data computers The deplored that most of the business concerns use computers typewriter and bank. people in is said accept television should hammer this point regularly during its transmission seminars said prepare this challenge which e-commerce offers. there now Asia-Pacific. computers these offices. to were grown websites ago. only Cisco. He said his company is organizing Karachi. are not even linked through a common 29 . private and state-owned have their own websites but no one updates them most regularly.added. that have facilities in eSmart affordable Nokia. even on hourly basis where the demand necessitates (like forex rates). over million. also required a programmed contact list which enables the user to enter detailed notes. Most of the websites operating in Pakistan are not updated. Ijaz Anwar said there is an urgent need about normal to create awareness of amongst the business He to community state the and He the importance to in e-commerce. Country Manager Acer Computers. Most of the commercial banks. so that there is no need to re-enter data. It was found that eight world-class provide through ($400-450 companies pertinent decade all a for to computer the the note which programme include industries called formed at an alliance to the to SMEs rates These It is a above-related total Intel. The ministry of IT should take note of this and make it mandatory on all the state-owned enterprises to update their websites on daily basis. as He regard Islamabad not enough. of its The nation are loses its creditability and provide when stale websites outdated information. he added. 100 10 package) Oracle. and uses the same database as the portal's calendar and the e-mail. Pakistan's share in these websites is negligible.

(Bajaj. of change the provider he this continued. millions a computers network together and more offering corporate and by global and connects Though being universities. government agencies and now more private the enterprises. said Internet cost per-hour charged by the ISPs in Pakistan is not very high as alleged by many entrepreneurs. (Computer Today. It is a The worldwide internet information allows highway. He said targeted surfing would not only bring huge benefits to the the Internet charges substantially.server. of It also to that signifies be linked information resources on innumerable servers on the Net. Ijaz said attitude of Hanif is our if considered they the are a luxury would in necessity. Internet range businesses for wide commercial services. entrepreneurs An serious accepting service challenges Pervez globalization. He said the cost looks higher when the users users but indulge also cut in surfing unwanted sites. instead have to Internet. 2000) Electronic Commerce Over Internet The Internet is an international network of networks. individuals. Nag 2000) A recent grow report from by the organization $ 500 for million Economic to $ 5 Cooperation and Development predicts that Internet trading will today’s estimated billion by 2001. is of now originally established as a private channel for research activities exploited academics. June 1998) 30 . (Ahmad.

g. i.e. Microsoft plus! 98). One third of those transactions. The number of users subscribing to their services in 1995 was estimated at 8 million people. notebooks. (EC World.. Killen & Associate and Forrester Research predicts that 10% or $600 billion worth of all business transactions done around the world in year 2000 will be made electronically.Another report from Forrester Research projects that Electronic commerce transaction will reach $ 7. softwares printer. Rod. June 1998) In fact. Dell launched Internet based online sales and services have at www. Dell Products on the Internet Dell sells all the items it and produces add-ons on the Internet: and Zip drive. storage workstations. future Dell experts see 50 percent of its sales over the Internet. about In fall 1999. to be services USA. worth $200 billion will be done through commerce on the Internet. America estimated Prodigy US$325 million. network (e.com. desktops. and was projected to grow at the rate of 35% a year. (Kuckro. June 1998) Electronic online CompuServe commerce in and conducted the during over 1994 the was three commercial Online.dell. servers devices. Those items are also sold by 31 . (EC World.2 Billion by the 2000. Dell sold$15 In million per day through the Internet and the Internet sales reached 27 percent of the total revenue. 1995) Revenue Via The Internet In July 1996.

flexible distribution customer are a must. Dell can learn about its customer by watching web site. This is 32 . purpose.telephone. Services. inductive learning. adaptive to small order in a make to order fashion. Database marketing and customer intimacy Dells direct relationship with all of its customer makes one to one its how database customer they use marketing makes the one possible. To keep the price competitive manufacturing delivery economical efficient to procurement of small number of parts from vendors. But why is it so hard to copy? We can observe six reasons: 1. Dell Critical Success Factors Dell success story is very impressive. Advance Web Applications Dell was the first web based computer seller and has the best connections from the end consumers all the way back through the supply chain. so competitors must have a desire to imitate Dell’s strategy. Price Competitiveness owing to mass customization Direct marketing to small consumer as well as corporate buyers means manufacturing without systems large and system should be time. support and introduction to the company are also prepared on the home page. implying that the call center service can complement the Internet home page. and database. to one For Dell can learn about them database this marketing the possible. 3. fax and mail. Dell computer was born with the spirit of telemarketing and the Internet is just another medium of contacting distant customers interactively. 2. as well as the tools for data mining such as statistical analysis. network modeling are used to classify customer segments.

dell can deliver a simple configuration in 2-3 days. Delivery support As inherent disadvantage of telemarketing in the relatively longer lead-time needed for delivery. Prodigy was the first to offer www access. Presently. audio and video to make the mall attractive to its customers. However if parts are not readily available. dell provides the estimated delivery time as well as online tracking information for each order. Dells customers do not worry about the reliability of the dell brand. High reliability and reputation If the products do not have high reliability. the visits to the mall by customers have increased by 78% and the orders by 50% each year. It will make use of WWW along with its tools of graphics. average in 5 days and complex in 7-10 days. reliability and service. Dell product Optiplex and Dell dimension desktop computers have garnered an unprecedented 174 award for performance. Dell was well prepared in this regard. Lee. To overcome this deficiency. 5. 4. CompuServe is now expanding its mall to the Internet. Similarly Prodigy the joint venture of IBM and Sears too has a mall and it has also connected to the Internet. Chung. This can be used for advertisement and customer service as well.essential for focusing on and deepening the personalized relationship. It 33 . King. the lead-time is estimated and the customer is informed. customer will hesitate to order the item without the trial. (Turban. 2000) Internet Commerce Examples CompuServe hosts 200 odd merchants on its electronic mall. When the product inventory and or parts are available.

This is a company that even 93 % 90% 85% 83% 81% 80% 74% 45% 40% 30% 34 . (Bajaj. Nag 2000) The Internet Factors important to Repeat Visit on Shopping Sites Guaranteed Security Ease of finding Things on site Wide selection Availability of brand name products Good customers support features Price discounts Posted returns policy Ability to personalize Frequent shopper rewards Other shopper opinions (Judy Strauss & Raymond Frost 2001) The Yahoo! Story Yahoo! (www.com) embodies one of the best example of the marketing concept meeting the organizational goals while serving customers needs. credit balances.yahoo. check example Express Net developed American Express allows it travel reservations. purchase travelers cheque and foreign currency electronically. offering space for advertisements on screen. America Online on the other hand took the direction to of creating a distinct sites for For corporations cardholder wishing to make reach target audience. pay bills.also connects merchants with its members.

They were graduated students together at Stanford University before leaving their studies to found Yahoo! Jerry is the more vocal and outgoing of the two. The two chief yahoos are Jerry Yang and Dave Filo. the point just to be different.” This was literally a home page that Jerry and Dave created on their university computer accounts to keep track of the cool links that were out on the Web. through possibilities exclamation settling Yahoo!.before its inception focused on serving the customer. they before wanted the they name went on to start a They with list added YA of consulting a dictionary. Yahoo! Got its start as “Jerry’s guide to the World Wide Web. Stanford provided the servers. users would email them suggested sites for inclusion and suggestion for improving the sites. The name they linked was yacc. Dave is the technical genius. “if there was no feedback… we would not have0 done it. so there was no cost to the viewing public. User feedback was such an important reward that Jerry said. include. such They They as even also “What’s solicited began New to and suggestion introduce sites product benefits “What’s Cool”. they updated and maintained the list for free. Jerry and Dave incorporated these suggestions in order to improve for new their to products. Following the yacc model.” Choosing the name for the site was a bit problematic. This helped to generate traffic. From the beginning. But when Netscape 35 later canceled the . a name referring to software tool on a Unix computer system. In the tradition of the web gift culture. Yahoo! received its first big break when Netscape put a link to the site on the navigator browser. They began to share the address with others and the page rapidly increased in popularity.

an index compiled by humans. The 36 editorial and many others. People like the intuitive feel o the Yahoo! index. Each one of the its army of classifiers is able to categorize about 100 sites daily! It now has half a million sites classified into 25. interactive 2001) Banners Ad Targeting Increases Hotel Room Sales Customers are currently saturated with advertising. To end this Yahoo! has introduced a variety of free and services: directories. Wall street continues to put its faith and dollar behind Yahoo! investor bid up the Yahoo!. references. including 14 million user in Japan. 35% of whom are outside the United States.000 categories. They now deal with 3. so that they accepted their first ad in August 1995. Why? Yahoo! delivered something was rare. news. they needed some source of revenue. commerce and shopping.link. Nonetheless. This makes them reluctant to respond to the increasing flood of marketing messages. customized pages. with over 145 million unique users worldwide.566 advertisers and merchants. Jerry and Dave were at first reluctant to sell advertising for fear of being labeled sellout. potentially making Yahoo! Impossible for other search engines to catch. And the index continues to grow. ((Judy Strauss & Raymond Frost . to The other web their search sites engines and used software method robots categories while this helped generate a larger list of sites than Yahoo! They tended not be as relevant. Yahoo! is currently the most popular site on the Internet. the traffic stayed and Yahoo! continued to flourish. Yang continues to believe that focusing on customer needs is the key to the future success and the way to stay a step ahead of the competition. initiations and other offers.

leading portal on the Internet. they were coming from the seven latest another eastern version United of States. Targeting customers based on interests was extremely expensive and difficult for marketers in the past. we asked Double click. constructing a database formed from the users at our web 37 . However.pm to 7. We thought that this site was the best for hotel since its users are people interested in travel. This means that customer demographics are not necessarily the most effective targeting criteria. time. During late 1997 we launched a banner camping Travel velocity. After doing some tracking to 1%. realized the trial could we include which narrowed filters increase Using click through error rate. they or were using and only they We the were are Explorer form of Netscape browsing only between 2. the company that sells banners for travel velocity. At Fiesta Americana at we have some meaningful a experiences travel with Internet targeting. The Internet is now the best and the cheapest way to do this efficiently and rapidly. day and so forth. the of We started with was and we three very clicks different since every more was the Studying the number we performance impressions that and easy for Double click has online tracking system that allows clients banner.com. e-mail targeting is successful direct marketing.most effective way for marketers to increase responses to their efforts is by offering their product and services directly to the people with the highest potential interest. being a bit more ambitious with our targeting. destination. to show our banners only to people requesting information about the seven more popular destinations banners. to see in Mexico.pm. averaging audience to people who met following criteria: they had already bought on air ticket.

Bezos realized early on idyllic finds and experience for the average customer. anticipating their building relationship Interestingly.com) is 36 years old. is s Princeton graduate. frequent travelers and other potential and current customers both in Mexico and the United States. the relationship the Bezos built were the ones that would be found in the smallest bookstore – a personal greeting. and the response to this program has been 367% greater than the response to our conventional mailing efforts with a cost of less than 20% if the conventional costs. discovered could treating need and value. population frustrating purchasing intimidating. and sits atop a company valued at billions of dollars. He To compensate that add for the inconvenience of purchasing online. Amazon. While Net-heads may experience. (Anna Maria. We send them e-mail with special offers. the key to Amazon’s success has been using technology to build that relish relationships purchasing the on and the brand web The bit was loyalty less both than with an its customers and with its partners. founder and CEO of Amazon (www. let alone to the buying from that site. online a general scary.site. 38 . customers thereby individuals. Amazon opened its Internet storefront in July 1995 an has never looked back. Bezos is well aware that “the smallest amount of friction can stop people” from coming to a site. This database has been used to select people with interests in certain kinds of trips and destinations. recommendations based on past purchase. 2001) The Amazon Story Jeff Bezos. those who actually made a reservation. Bezos had to add value shopping as experience.

reaches 32 countries.recommendation author and based on the with mood others of the consumer. How did Google do it? First it got the technology right at low cost. according to Forrester Research. dot-com the By privately some owned. Cofounders Sergey Brin and Larry Page figured out how to pack eight time as much server power in the same amount of space as competitor by building their own system from commodity hardware parts. In the offline world consumers will often choose to shop at the closest bookstore. and is the 15th-most-visited U. Furthermore. Amazon continues to leverage its customer base as it moves into new product offering.build relationship that add value to the purchase experience and foster brand loyalty. they invented an innovative new search strategy: ranking search query page results based 39 . movies. about $15 Google 2001 revenues hovered around $70 million. Second. profitable number is of firm. speaks 74 languages.S Web site? growing doubled This The and its answer is google. success particularly remarkable because Google entered the market in 1998. while it employees earned million in profit. (Strauss & Frost 2001) The Google Story What performs million searches a day. and estimates. The company now sells CDs. health and beauty products and so on.com. about the notification of a new release by the customers favorite conversation customers book. In all these ventures it applies the same tested formula. Forty-four percent of Amazon’s customers are repeat purchasers. well after other search engines were firmly entrenched with loyal customers. electronic software toys. consumer tend to be more loyal online than offline.

(Strauss. Google generate revenue from two businessto-business markets.com.not only on keywords but also on popularity-as measured. This meant that users search results were packed with the relevant websites.com Ph. profitability is likely to continue as well because Google plays close attention to user value. 2003) 40 . in parts. and AOL. the founder maintained customer focus used simple graphics allowed no advertising on the home page. by the number of sites that link to each web page. it also sells The keyword banners to web advertisers.. In a firm where 15% of the innovation continues. and not allowed only banners ads without graphics so search result pages download faster and are easier to read. It sells its search services to 130 websites employees such hold as a yahoo.D. Ansary & Frost. Finally. keep costs low and delivers eyeball to advertisers.

In this research.1 Type of the Study present “Descriptive descriptive although purposely analysis in also to combined with the descriptive testing of a hypothesis. the study has applied a major hypothesis for determining the impact and application of E-commerce and Marketing used by organizations based in Islamabad. study was of research the has mainly been was a 3. The goal of descriptive study is to describe to the relevant aspects of from the an phenomena of interest the researcher individual.Chapter3 The Method piece Study”. The secondary data was gathered by extracting relevant material from articles and magazines. The undertaken order ascertain and to be able to describe the characteristic of variables in a situation. In addition. there is one major hypothesis in order to find out the present situation and application of E-commerce and marketing used by organizations. organizational and other perspectives. 3.2 Source of Data Data can be and collected sources. Hence the research is the mix of two types of studies that is descriptive and hypothesis testing. Books on E-Commerce and E-marketing and websites of organizations etc. 41 . in variety of ways in used different for this settings Research instrument study in order to generate primary data were mainly based on interviews with various personnel involved and working in the field of E-commerce and marketing.

information and data was gathered on the topic of study and discussed and described by comparing the practical practices of the organizations with those ordained in general theoretical framework.3. Here in this specific piece of research. 42 . In addition. the impact its of E-commerce has and been marketing described on and organization and application analyzed in terms of existing system and practices.3 Statistical Tool Statistical tools are pictorial presentation of the results and analysis or the interviews administered.

server and network acquisition and operation merchandising.Chapter 4 Results and Discussion Acceptance of E-Commerce and Marketing Consumers business. Challenges The Challenges to E-Commerce can be broadly grouped under technological. enhanced customer goodwill reduced owing to the cost online for support and service. Benefits will be relative to the initial business position of each company and its possibility of changing business structure towards telemarketing and make to order systems. order fulfillment cost can be 43 . have accepted reasons the e-commerce account and for marketing the slow Several might uptake. legal and regulatory heads. Technological Lack of reliable network infrastructure services Lack of standards High cost involved Legal and Regulatory Lack of consistent rules and procedure    Custom and tax uncertainties The role of government and nation Other regulatory issues Benefits of E-commerce and Marketing Major benefits include increased revenue. including: Concern about security and many people don’t use credit cards over the Internet due to concerns about theft and fraud. and operating distribution and purchasing. Basic Cost of Implementing EC include home page system development and maintenance.

which includes ordering. which will be discussed in the thesis. cost and maintaining has good proved business to be relationship a boon and a for with partners. notably for goods that can also be delivered electronically   Reduced designed and manufacturing cost Improved marketing and strategic planning 44 . because it provides easy.incurred when management commits to change the way of doing business such as changing the major distribution channel and manufacturing systems. effective saving communication has given client dynamic servicing methods. a system that helps in making the business more profitable. delivery and payment   Product service and maintenance and development Improved Transport and logistic Example of Specific Business Benefits of E-Commerce   Reduced advertising costs Reduced delivery cost. Impact of Internet on Business Establishing business. These includes:   Marketing and sales promotion Improved commercial transaction. and customers is the core of any The Internet and time The businesses and their partners. Internet dimension to businesses with online transaction technology. Impact of E-Commerce on Business Activities Electronic commerce has a deep impact on a large number of business activities. suppliers.

e. health care. Retail Payments    Credit cards (Visa or MasterCard) Private label cards (Debit Card) Charge cards (American Express) 3. bill payments) 2. bank to bank transfer)  Small-scale retail payment (e. 1. Organizations are motivated by the need to deliver products and service more cost effectively and to provide a higher quality of service to customers. Automated Teller Machines)  Home banking (e. retail.g.g. on-line markets and even government. Banking and financial payments  Large scale or wholesale payment (e. Online electronic commerce payment    Electronic cash Electronic checks Smart cards or debit cards Bank Al-Falah 45 . Equal access to markets (i. from small medium enterprise to large cooperation’s   Access to markets Customers innovation Types of Electronic payment Payment Systems Used by Different involvement in product and service Organizations Electronic systems are proliferating in banking.g.

making each shopping spree an exciting one). The Bank is currently operating through 45 branches cities. Dine’a’ Discount (the best discounts at a wide range of selective restaurants). companies banking has ordinance. are entertainment. of Strengthened driven by management. time like members at facilitated through a number of promotions from time to Matchless Discounts (discounts nationwide merchants’ outlets. It is accepted at nearly 30 million merchants around countries the globe 10. Fortunes Rewards Program 46 . Card travel. Bank perceives the requirements of and matches them with quality solutions.Bank Alfalah Limited was incorporated on June 21st. Its banking operations commenced services in its 21 as defined in the Banking with the have the bank an from November 1st. The bank is engaged in commercial banking and related 1962. of set the Abu out by in of and bank 1997. Alfalah VISA let’s meals you and pay much for more. technology to Dhabi Group and board revolutionary customers service the strategic goals invested range extensive products and services. During the past products years.000 establishments in Pakistan.000 welcomed ATMs in and at more over locations than 150 displaying the VISA logo. Bank Al-Falah Electronic-Cards Bank Alfalah Visa Card is customers partner everywhere and is globally accepted and and 870. 1997 as a public limited company under the Companies Ordinance 1984. shopping. five has emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow today.

worldwide. deployed at the most convenient and accessible locations. instantaneous availability. the first Visa Electron International Debit Card which gives customers an unlimited access to your current and savings account with a simple swipe. Bank banking Alfalah options Limited to fulfill you your the presents HilalCard. 7 days a week. Bank Alfalah Hilal Card was offered in endeavor to give customers financial Alfalah versatile needs. thus making a countrywide network of ATMs available. and is equipped to meet the highest standards of security and efficiency. Bank Alfalah is a founder member of the 1-Link Switch. 47 .(exchange of fortune points against an array of attractive products and services). etc. For customer’s cash convenience. Alfalah ATM network is geared up to exploit the latest technology. 24 hours a day. Bank Alfalah is pleased to introduce 42 state of the art ATMs.000 ATMs and 13 million retail outlets around the world. Alfalah ATM Bank Alfalah through its commitment to provide superior and improved services to its valued customers has unveiled a nationwide they have network access of to ATMs. at millions of retail shops and ATMs. The Alfalah HilalCard comes with a host of conveniences and benefits combined with the wide reach of Visa Network enabling it to be accepted at more than 840. making it the most acceptable Debit Card available in Pakistan.

It is now the biggest Internet Service Provider of the Country. emails and splash screen. Paknet made a fresh start with an Internet customer base of 6000 as of January 2000 and successfully business plan achieved the target of its first year of 50. Another reason is that local ISP tends to be more innovative and adapt more quickly to rapidly changing Internet application.Paknet Local Level Internet Service Providers Paknet Limited a fully owned Subsidiary of Pakistan Telecommunication Company Limited (PTCL) was formed in March 1999 and started commercial operation in January 2000. Allama Iqbal Open University On Demand Education The Allama Iqbal Open University was established in June. Some of the larger service providers tend to restrict the activities of users on the Internet from their networks. One main reason for growth of Paknet is the freedom of expression.30.000 Internet customers. 1974. with the main objectives of providing educational opportunities to masses and to those who cannot leave their 48 . Frame Relay and Digital Circuits on Optical fiber cross connect systems etc. Besides Internet Paknet also provides data communication services like Clear Channel data links. Currently Paknet has a customer base of more than 1. And because local providers serve only a specific area. they may offer better.000. They are able to offer customer the same level of access as regional providers to Internet news groups and e-mail often at lower costs. Paknet offers 24-hour technical support. Paknet is actively involved in E-marketing by giving customers information through banners on website. faster connections for customers.

It is now breaking new grounds remotest harness in the fields of of professional.homes and jobs. information Technology spreading education in Pakistan. It has also done pioneering work in the field of Mass Education. with characteristic are especially First. attempting for and to technical education. pertinent education to is electronic no longer commerce considered application. Instruction will be increasingly conducted electronically and at times in small. Fourth. because knowledge like a product line can become obsolete every few years. Modern education lacks age homogeneity. Student both residential and non-residential will attend lectures broadcast to their homes. It is attempting to reach out to the areas modern Pakistan. Third education and entertainment are converging. informal meetings between faculty and students. middle-aged careerists and retired seniors. It is a fact that education is in a state of flux. To this end. news and emerging products in a fast changing global market place. continuous is becoming a necessity as companies education educate their employees about competitors. the delivery of educational instruction has changed. The main objective of the University is to provide educational facilities to people who cannot leave their homes and jobs in such manner as it may determine. education must focus creating an environment that facilitates business continuous learning. It is also scientific. residence halls or workplace and draw 49 reference materials from . something that one acquires during youth to serve for an entire lifetime. so in a physical or virtual class we would find young adult. Within the changing environment. It has opened up educational opportunities for the working people and has provided access to the females on their doorsteps. Second. events.

knowing how to use it effectively is still an the is art that few a people for. educators and employers have been talking about the enormous potential for computer-based education and training. wave new understand Explosive of clearly growth or in CD possess computer necessary fueling video. Finally. but change has been very gradual. The teacher role will shift from lecturing to advising or coaching students on tough. ROMs. messy issues such as choosing materials. electronic access to online databases and library catalogs will eliminate the need for much book or reference space but probably will increase the need for computer disk space. Although technology based education is impressive. In short. topics and career paths. with technology the role of teacher is more than of facilitator. skills video technology teaching tools: aided instruction. LANs. Internet connections and collaborative software environment. Teachers are becoming more like coaches leaving students free to discover knowledge on their own. Benefits to Organizations 50 . Local and wide area networks will enable universities to integrate many aspects of education that have long been segregated in separate buildings. One reason is heavy capital expenditure for computers in school and offices of that have been installed without to an understanding educational processes required take advantage of the new technology.distant locations using computers. guide and resource broker. multimedia. Computer Based Education and Training For a number of years. Active learning and other learning approaches are being developed to educate both workers and students.

51 . all year round from almost any location. reduced customer simplified time. can easily minimal quickly outlay.  creating commerce by specialized reduced pull using World Wide Web. and improved partners. In a pull type system the process starts customer and uses just manufacturing. Benefits to Consumers The benefits to EC to consumers are as follows:  other Electronic commerce enables customers to shop or do transaction 24 hours a day.  Electronic overhead from inventories supply in facilitating orders type chain time management. eliminating information.  Other benefits include new improved found image. expediting service.  Electronic commerce lowers telecommunication cost and the Internet is much cheaper.The benefits of organizations are as follows:  Electronic national capital commerce and expands the market With and place to international companies markets. locate more customers. delivery paper. the best supplier and the most suitable business partners worldwide.  Electronic commerce decreases the cost of creating. business cycle processes. processing Ability of and distributing. highly allows storing and retrieving businesses and paper-based information. access compressed to increased productivity. transportation costs and increased flexibility.

 Customers can receive relevant and detailed information in seconds. includes opportunities to learn professions and earn college degrees. Electronic commerce facilitates delivery of public services such as health care.  Electronic commerce allows some merchandise to be sold at lower prices. distribution of government 52 .  Electronic commerce enables people in third world countries and rural areas are to enjoy products to and services This that otherwise  not available them. education.  Electronic commerce facilitates completion.  other customer in electronic communities and exchange ideas as well as compare experience. so less affluent people can buy more and increase their standard of living. rather than days or week. Benefits to Society The benefits of EC to society are as follows:  Electronic commerce enables more individual to work at home and to do less traveling for shopping. Electronic commerce provides customers with more choices.  Electronic commerce frequently provides customer with less expensive products and services by allowing them to shop in many places and conduct quick comparisons. resulting in less traffic on the roads and lower air pollution. they can select from many vendors and from more products.  Electronic commerce makes it possible to participate Electronic commerce allows customers to interact with in virtual auctions. which results in substantial discounts.

export This was a major has state bank of Pakistan has allowed banks to open Internet hindrance in start of E-commerce activities in the country. the accounts To help within the Pakistan. The reality of E-commerce and marketing is that it is changing the way we do business. It would be established with centralized data containing teaching and research material in order that resources may be shared through video conferring. Evaluation of Current Research In this research information related to organizations using E-commerce and marketing were presented in order to support the purpose of the study. Health care facilities can reach patients in rural area.  to Pakistan educational intranet will be established connect all the public and private educational institutions.social services at a reduced cost and or improved quality. SBP instructed banks to accept the contracts as collateral for software exporters to qualify them for export refinance scheme. software industry. Action Taken by Government of Pakistan  merchant  As a first step towards electronic commerce.  Introducing national scholarship fund and loan schemes for field of science and technology. Software exporting companies have been allowed to retain 25 percent of export earning in foreign exchange account.  sector Free leased line Internet access to the public universities under an agreement with PTCL and reduced rates for connectivity to educational institutions to promote IT in country. 53 .

commerce and marketing techniques to maintain their market share and expand their business. and driving competition up. of efficiency. While for the the organizations promotion to of maintain E-commerce enhance the and infrastructure brought into marketing. to the compete drain using international inabilities Organizations market. careful analysis and long term plans must be consideration further customer service and increasing the market share. loss brain organizations maintaining expand standards globally. Therefore the hypothesis is rejected. The aggressive measures taken by the government and by the organizations can of direct the the resources and into useful financial to outcomes with and Eotherwise the affect will be loss of resources. 54 . market widening and great new communication to ensure their success. They are increasing speed standard business operations.The present study has observed that organizations are now banking the on Speed. inabilities companies of are organizations of business. opening global markets.

The Asia/Pacific region although comprising mostly of developing countries has reached up to 4 million subscribers. which has prompted the government to take a number of ecommerce development initiatives. In Pakistan. needs provided participating changes by to come is and this ever- companies with new and more cost and time efficient means. engines. The of computers improved participating and has new the telecommunications productivity by providing and business of unprecedented access to an online global market place with customers it and thousands also products Moreover. competition organizations all over are changing their operations. information portals specialized search Electronic commerce in Pakistan is growing at a rapid pace. using have of They managing and executing and the the business and transactions networks. changing to technological way in which is together revolutionize Modern supply customer business conducted. the 'dot com' culture is emerging at a very of fast pace and there has web been a mushroom growth Pakistani and commercial sites. expectations. increasing increasing business characterized global In response capabilities.Chapter 5 Conclusion and Recommendation Conclusion The world market of Internet subscribers has reached the mark of 400 million and is increasing every day showing a growth rate of 100%. Broadly speaking electronic commerce and marketing is a new way of conducting. competitiveness millions services. 55 .

by Government tax area should relief. allocation Government of fund percentage business practices one of the commerce. Although 1/3 of the organizations are using fiber optics as a communication channel however the network are mostly used for emails. of efacilitate Internet.Students and professional do have access to Internet at their respective institutes and workplace respectively. Local and private business should 56 . particularly in government organization and universities. Although people spend fair period of time online but online spending are very low.com customer increase for their startup to the to manage business over Internet. Local area network is available in fair percentage culture of organization is not but the intranet and in extranet developed effectively organizations.com business within the country will help the local practice buying of online.895 funds. policies E-commerce and agenda marketing companies engaged business in Islamabad. The government policies do not translate billion bottom IT of into the world of e-commerce. The development of IT infrastructure has not very substantial outcome in terms of e-commerce and marketing. Companies should use the intranet and extranet daily such It is transaction. providing neglected Advertisement is a major avenue for doing business over most commerce and marketing. Small should on edot.54 percent of the total Rs4. Recommendations For Business and Government Government of Pakistan and investor should encourage small dot. and for Government lie at of the in Pakistan has allocated 6.

Chart and quantify the amount of money and time spent on e-commerce activities including intranet. Investigate organization issues. Quantify the amount of capital spend on IT infrastructure on your organization. Chart and quantify the amount of money spent on online advertisement and compare financial returns. 57 . ii. customers and suppliers. extranet and e tailing. Establish a business case for e-commerce into business strategy b.exploit returns. Ask yourself the following questions in an and attempt to the are extent to which and the government commerce examining supporting evaluate substantial business e-commerce- internet strategy: i. Fair percentage of people surf Internet and advertising can bring financial For Future Study a. c. d. e. What are the e-commerce and e-marketing practices impact on my business. advertisement over Internet.

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