E-Marketing &

E-commerce
Marketing in the
Digital Age
Lecture 1
 E-commerce

E-commerce is defined
"as the process of buying, selling, or
exchanging products, services, or
information via computer networks,
including the Internet" (Turban et al.,
2008).

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 What is E-commerce?
• E-commerce or e-business is based on the
electronic processing and transmission of
data, including text, sound, and video.
• E-commerce as it is commonly known is the
use of technology to conduct financial
transactions online.
• E-commerce can occur within and between
three basic participant groups – business,
government, and individuals.
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 There are a number of issues
affecting e-commerce

1. Taxation
2. Security
3. Privacy
4. Profitability
5. Content
6. Participation in new international
standards development
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 E-Commerce Domains

E-Marketing Domains
Targeted to Targeted to
consumers businesses

Initiated by
businesses
B2C B2B

Initiated by
consumers
C2C C2B

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Goal 3: Be able to describe the four major e-commerce domains
 E-commerce Market
Models

1. Business to Business (B2B)

2. Business to Customer (B2C)
3. Customer to Business (C2B)
4. Customer to Customer (C2C)

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 E-Commerce Domains
Online consumers
Major Domains  Now more mainstream
and diverse
• Has created new e-
commerce targeting
opportunities
B2C • Online behavior differs by
age
B2B  Online consumers differ
from traditional off-line
C2C consumers
• They initiate and control
C2B the exchange process
• Value information highly

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Goal 3: Be able to describe the four major e-commerce domains
 E-Commerce Domains
Open trading networks
Major Domains  E-marketspace bringing
sellers and buyers
together
Private trading networks
B2C  Links sellers with their
own trading partners
B2B
C2C
C2B

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Goal 3: Be able to describe the four major e-commerce domains
 E-Commerce Domains
C2C web sites help
Major Domains consumers exchange goods
or information
 eBay is one example
Blogs
B2C  Allows interchanges of
information for special
B2B interest groups
 Highly credible for
C2C advertisers
C2B

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Goal 3: Be able to describe the four major e-commerce domains
 E-Commerce Domains
Allow consumers to search
Major Domains out sellers, learn about
offers, initiate purchase, or
dictate purchase terms
 Ex: Priceline.com
B2C Some sites facilitate the
feedback process between
B2B customers and companies
C2C  Ex: Planetfeed.com

C2B

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Goal 3: Be able to describe the four major e-commerce domains
 Major Forces Shaping
the Digital Age
Digitalization and Connectivity
 The flow of digital information
requires connectivity
• Intranets, Extranets, and the Internet
The Internet Explosion
 Key driver of the digital age
 Using the Web to find information on
major life decisions

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Goal 1: Identify forces shaping the digital age
 Major Forces Shaping
the Digital Age
New Types of Intermediaries
 The click-and-mortar business model has
been highly successful
Customization
 Firms are individualizing their products,
services, messages and media
 True customization is when a consumer
designs their own offering or product

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Goal 1: Identify forces shaping the digital age
 Marketing Strategy in
the Digital Age
E-business:
 Uses electronic means and platforms
to conduct business.
E-commerce:
 Buying and selling processes
supported by electronic means.

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Goal 2: Understand how companies have responded to the Internet
 Marketing Strategy in
the Digital Age
E-marketing:
 Includes efforts that inform,
communicate, promote, and sell
products and services over the
Internet.
E-commerce benefits both buyers
and sellers

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Goal 2: Understand how companies have responded to the Internet
 Marketing Strategy in
the Digital Age
Buyer Benefits of E-Commerce:
 Convenience
 Easy and private
 Greater product access/selection
 Access to comparative information
 Interactive and immediate

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Goal 2: Understand how companies have responded to the Internet
 Marketing Strategy in
the Digital Age
Seller Benefits of E-Commerce:
 Relationship building
 Reduced costs
 Increased speed and efficiency
 Flexibility
 Global access, global reach

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Goal 2: Understand how companies have responded to the Internet
 E-marketing

“Moving elements of marketing

strategies and activities to a
computerized, networked environment
such as the Internet. It is the strategic
process of creating, distributing,
promoting, and pricing goods and
services to a target market over the
Internet or through digital tools "
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Internet Marketing or
Digital Marketing
Mohammed et al (2001) describes
internet marketing as "the process of
building and maintaining customer
relationships through online activities
to facilitate the exchange of ideas,
products and services that satisfy the
goals of both parties ".

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 Setting up for
E-Marketing
Options Corporate websites
 Build goodwill and
relationships; generate
Creating websites excitement
Placing online ads and
promotions
Marketing websites
 Engage consumers
Creating or using Web and attempt to
communities
influence purchase
Using E-mail
Website design
 7 C’s of effective
website design

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Goal 4: Understand how companies use e-commerce to deliver value
 Setting up for
E-Marketing
Options Online forms of ads and
promotions
 Banner ads/tickers
 Content sponsorships
Creating websites  Viral marketing
Future of online ads
Placing online ads
and promotions
Creating or using
Web communities
Using E-mail
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Goal 4: Understand how companies use e-commerce to deliver value
 Setting up for
E-Marketing
Options Web communities allow
members with special
interests to exchange views
 Social communities
Creating websites  Work-related
communities
Placing online ads Marketers find well-defined
demographics and shared
and promotions interests useful when
marketing
Creating or using
Web communities
Using E-mail
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Goal 4: Understand how companies use e-commerce to deliver value
 Setting up for
E-Marketing
Options E-mail marketing
 Key tool for B2B
Creating websites and B2C marketing
Placing online ads and  Spam is a problem
promotions
Creating or using Web
communities
Using E-mail

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Goal 4: Understand how companies use e-commerce to deliver value
Promise and Challenges
of E-Commerce
The Promise of E-Commerce
 Online marketing will become a successful
business model for some companies
 The question is “how,” not “whether,” to
deploy Internet technology
 The Internet should be used as one
approach or tool in the fully integrated
marketing mix

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Goal 5: Realize the promise and challenges of e-commerce
Promise and Challenges
of E-Commerce
Challenges: The Web’s Darker Side
 Few B2C companies are profitable
• Limited exposure, skewed demographics
• Navigating the Web is often problematic
Challenge: Legal and Ethical Issues
 Online privacy and security concerns
 Internet fraud, the digital divide, access
by vulnerable or unauthorized groups

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Goal 5: Realize the promise and challenges of e-commerce