UNIT 2 CONTD

By
RADHA IYER

MARKETING PHASE

Includes all electronic based activities that

facilitate production of goods and services to
satisfy customer demand.
It is a part of e-business that involves
electronic medium to achieve marketing
objectives and is set on a strategic level in
addition to traditional marketing and
business strategy.

CONTD.
This answers questions like:
1. How
are your products or services
better/cheaper/more attractive?
2. How will you advertise, on and offline,
whats your pricing policy?
3. Whats the competition, and how will you
cope?
4. What are the prospects in your market
sector?

ADVANTAGES OF E-MARKETING

Accurate information and stability of service.

Good advertising.
Knowledge of your customers.
Reduction in costs through automation and use
of electronic media.
Faster response to both marketers and end user.
Increased ability to measure and collect data.
Opens the possibility to a market one through
personalisation.
Increased interactivity.

CONTD

In order to produce a viable e-marketing

solution, e-marketers must understand the
current situation of the company and its
environment, profile, segment the right
market and then strategically position the
products as to achieve optimal response with
the target market.

ESSENCE OF MARKETING PHASE

Is to provide good service, advertising,

inventory control, knowing the customers,
selling the products and services and
following up after sale.

FULFILLMENT PHASE

Means that the quality of operational

execution is paramount in the supply chain,
in the fulfillment operation and in the
contact centre.
In order to accomplish fulfillment process
there is a need to build and improve multichannel warehousing and delivery operations
and work will all clients and partners to:

CONTD

Identity
the
right
direct-to-customer
fulfillment strategy.
Develop in-house fulfillment capability.
Select third party warehouse and carriage
suppliers.
Improve capacity, productivity and service of
existing operations.
Design and implement customer order
management solutions.
Run effective supplier drop ship operations.

CONTD
Fulfillment capabilities represent the last
mile of online retailing.
Normally fulfillment includes:
a. Packaging the merchandise
b. Shipping the merchandise
c. Answering questions about the order
d. Sending out the bill or verifying e-payment.
e. Following up to see if the customer is
satisfied.

CONTD

Internet retailer must realise that they are in

the logistics business.
An adequate logistics infrastructure should
include online technology systems that
provide product tracking; order tracking;
inventory availability; delivery management
(both inbound and outbound) and inventory
status and returns management.

CONTD

These systems must be integrated into

financial systems (for crediting and order
processing); warehouse management systems;
call centres; suppliers and databases.
Necessary step is to have a Returns
Management Process that make returns
convenient
for
customers
and
then
advantageously processed by either being sold
to secondary markets; refurnished and
returned to available inventory stocks or
disposed of properly and not being left in an
un-saleable inventory.

CONTD
Another element of fulfillment phase
includes
integrating
fulfillment
with
inventory. It includes the following:
a. Product Availability: Does your immediate
inventory hold only the products for sale?
b. Matching the products for sale to the
products in the inventory: Is there a
compatible linking of back-end inventory
systems with the website?

CONTD
c. Out-of-stock notice: When should the
customers be notified that the items they are
selected are out of stock, not available for
immediate inventory or can be back ordered?
d. Back Orders: When should the customers be
notified of a back order?
e. Processing Orders: How often orders should be
sent to order entry?
f. Controls: The customer should be notified of
back order when inventory count is at a
minimum or when there are none left in the
warehouse.

MAINTENANCE AND
ENHANCEMENT PHASE

Maintenance phase involves making changes

to hardware, software and documentation to
support its operational effectiveness.
Website maintenance involves keeping the
website up-to-date by editing content with
updated information such as special offers,
product and price changes, new products and
service announcement and all those matters
that keeps visitors properly informed.

CONTD
Maintaining and managing the site by
implementing new innovative feature from
time to time and securing, restructuring and
protecting site. Most maintenance job
includes the following:
1. Modification
and Addition of Website
Content.
2. Image manipulation and addition.
3. Newsletter and email list maintenance.

CONTD
4. Shopping cart product updates.
5. Update announcements, articles etc.
6. Replace images i.e pictures and graphics.
7. Adding/removing pages.
8. PDF creation and uploading.
It basically includes making changes to
improve a systems performance, correct
problems, enhance security or address user
requirements.

CONTD

To ensure modifications do not disrupt

operations
or
degrade
a
systems
performance or security, organisations should
establish appropriate change management
standards and procedures.

BASIC CONCEPTS IN E-BUSINESS

1.
.

.
.
.

DATA WAREHOUSE
Is a collection of computer based
information that is critical to successful
execution of enterprise initiatives.
More than an archive for corporate data.
Important resource of the organisation.
Main objective is to integrate operational
data from various sources into a single and
consistent architecture that supports
analysis and decision making within an
enterprise.

CONTD
It creates copy of the business transaction
data specifically structured for query and
analysis.
The benefits are as follows:
1. Cost effective decision making.
2. Business re-engineering.
3. Provides analytical tasks using data from
different applications for decision-making.

CONTD.
4. Integrates data from multiple sources.
5. Analyses multiple version of the same
source.
6. Improved customer service.
7. Improved information system.

2. SUPPLY CHAIN MANAGEMENT

Means the chain comprising of all those

intermediaries involved in the business
transactions beginning from the supplier,
wholesaler, retailer and finally customer.
It is a network of facilities and distribution
options that performs the function of
procurement of materials.
Transformation of these materials into
intermediate and finished products and the
distribution of these finished goods to
customers.

CONTD.

Purpose is to achieve integrated planning

through the activities of supply chain.
In e-business, SCM creates linkages between
suppliers and retailers that translate into
lower costs, better customer service and
profitability for both the partners.

OBJECTIVES OF SCM

Decrease inventory cost by more accurately

predicting demand and through just-in-time
delivery.
Reducing overall production costs.
Improves
information
flow
between
enterprise, suppliers and distributors.
Customer satisfaction by offering better
quality, variety and speed in the delivery of
the product.

3. CUSTOMER RELATIONSHIP
MANAGEMENT

Customer is the backbone of any

organisation.
Objective of the organisation is to meet the
customer requirements.
The fundamental theory behind CRM is to
identify profitable customers, attract and
retain them and maximise their useful life
span and the profits from them by
establishing good relationships with them.

CRM CONTD.
CRM is a strategy used to learn more about the
customer needs and behaviour in order to
develop relationships with them.
With an effective CRM strategy, a business can
increase revenues by:
a. Providing services and products that are
exactly what the customers want.
b. Providing better customer service.
c. Selling products more effectively.
d. Retaining existing customers.
e. Expanding the market reach and going global.

4. ENTERPRISE RESOURCE
PLANNING

Is a packaged business software system that

allows a company to automate and integrate
the majority of its business process, share
common data and practices across the
enterprise
and
produce
and
access
information in a real time environment.
Is a single unified software programme
divided into software modules.

ERP CONTD

Objective is to integrate all departments and

functions across to a single computer system
than can serve all those departments
particular needs.
Finance, manufacturing and the warehouse
al still get their own software, except now
the software is linked together so that
someone in finance department can look into
the warehouse software to see it the order
has been shipped.

ERP CONTD..

After implementing this software, the

company obtains integrated system and data,
uniform maintenance, common interface
across
systems,
consistent
relative
information.

BENEFITS OF ERP
1.
2.
3.
4.
5.
6.
7.
8.

Effective utilisation of resources.

Automation of business process.
Improved business efficiency.
Improved product quality.
Business integration.
Flexibility
Use of latest technology
Coordinate global demand-supply
production.

and

BRICKS AND CLICKS BUSINESS

MODELS
A business model is a set of planned
activities (business processes) designed to
result in a profit in a market place.
A. Brick and Mortar (Traditional) Business
Model

A. BRICK AND MORTAR (TRADITIONAL) BUSINESS MODEL

Means having a business with physical

presence.
Name for traditional business with actual
buildings, manufacturing plants, customer
service centres and distribution facilities.
This is in contrast to cyberspace and makes
use of other peoples facilities.
Business are companies which have a
physical store-offer face-to-face customer
experience.

B. PURE ONLINE BUSINESS

MODEL

Means having an online presence of

traditional business. For example, ebay.com;
amazon.com etc.

C. BRICKS AND CLICKS BUSINESS

MODEL

Is a business model by which a company

integrates both offline (bricks) and online
(clicks) presence.
Also referred to as click-and-mortar or clicksand-bricks.
Example: Wal Marts site-to-store centres. A
furniture store may have displays at local
store from where a customer can order an
item electronically for delivery.

CONTD

It refers to running the two divisions in a

cooperative and integrated manner where
they both support and benefit from each
other.
Reason for its success is that it is far easier
for a traditional retailer to establish an
online presence than it is for a start-up
company to employ a successful pure dot
com strategy.

ADVANTAGES OF BRICKS AND

CLICKS BUSINESS MODELS
It refers to businesses that offer online services
via the Web as well as the traditional retail
outlets (offline) staffed by people.
a. Touch and feel
. Customers
can visit physical location
particularly those products that cannot be
sold on the internet but at the same time
online portion of the business can be used by
the customer to place an order, locate a store
in their area, call centre numbers could be
obtained for any query and even to track
their order status.

CONTD
b. Delivery of the Product
Customers can pick up their product any
time from their local stores.
Eliminates
the hassles that pure play
businesses
experience
with
delivering
products.
For this reason, pure online business enters
into a partnership with physical stores to
deliver the product so that consumers can
pick up their product at ease.

CONTD
C. Returning of the Product
Difficult in case of bulky products.
In such cases, online business enters into a
partnership with Bricks and Mortar store
whereby customer can return their products
to these local stores and these stores can sell
the returned items to another consumer in
the store or it can be shipped back to the
manufacturer if so desire.

CONTD
D. Face-to-face Interaction
As it is a combination of online and offline
business, it is possible to have face to face
interaction with sales person which solves
product related queries of the customers,
provides feedback about the suitability of
the product and suggest the customers about
other products than can serve their purpose
better both online and offline.

SUPERIORITY OF BRICKS AND

CLICKS OVER PURE ONLINE MODEL

It is easier for a traditional retailer to establish an

online presence than it is for a start-up company
to employ a successful pure dot com strategy, or
for an online retailer to establish a traditional
presence.
Bricks and Clicks have lower customer acquisition
cost. Through the advertising they already have
passed the information so it is easier to
communicate by building new strategy to attract
new customers.
Rate of visitors is more in Bricks and Clicks
business model as compared to pure business
model.

CONTD

Retaining the customer is essential for any

business organisation.
Cost of retaining the customer is more in pure
business model as compared to Bricks and Clicks
model because customers have less loyalty
towards the online stores as there is only screen
to screen interaction and customers tend to
have less loyalty in such cases.
Bricks and Clicks benefit from the established
brand name, marketing arrangements with
suppliers, and existing information systems.
They tend to do better than pure plays.