CHAPTER TWO

E-marketing /e-Commerce:
Business and Technology
 Major types of e-commerce
• There are many ways to classify electronic
commerce transactions.
• One is by looking at the nature of the
participants in the electronic commerce
transaction.
• We can classify e-commerce based on:
– Market Relationship
– Technology used
Major types of ecommerce
 Based on market relationships: who sales to whom

• Business-to-Business (B2B)

• Business-to-Consumers (B2C)

• Consumer-to-Business(C2B)

• Consumer-to-Consumer (C2C)
 Business-to-Business ecommerce(B2B)

• E-business is the process of conducting business on

the Internet. Its scope includes not only buying and
selling but also services, fulfilling the needs of
customers and collaborating with business partners.
• The B2B model involves electronic transactions for
ordering, purchasing, as well as other administrative
tasks between business organizations.
• In a B2B transaction, the interaction is between
businesses.
• Business to Business e-commerce provides
small and medium enterprises (SMES) with an
excellent opportunity to access new markets,
improve customer service and reduce costs.
• The reasons for the growth in B2B e-commerce
are many. In an increasing competitive
scenario, e-commerce offers highly attractive
cost saving options. The shift to this process is
often driven by the needs of buyers.
Examples
• Sites like Alibaba.com have a wide data base
of Business-to-Business technology based
companies which can supply you with different
business technologies to help your business
grow.
• Some times, money is not exchanged when it
comes to B2B, some business might agree to
share technologies, and this happens when
both business serve a similar market.
• A good example is Google, Yahoo, Microsoft,
Apple & Facebook, these four technology
based companies share some business
technologies without exchanging money, but
they all agree with each other for the benefit
of the user.
 Business to Consumers E-commerce (B2C)

•  B2C e-commerce involves selling of goods and

services to consumers or end users. It allows them to
browse the product catalogue, select products or
services and complete the order online.
• In a B2C transaction, the interaction is between a
consumer and the preferred business. For example,
the most popular site is amazon.com, which is the
first online bookseller who has proved a potential
competitor to the traditional bricks and mortar
booksellers such as Barrens and Noble.
• In this category of e-commerce, businesses
use the internet to offer to consumers sales
and services around the world 24 hours a day,
seven days a week and 365 days a year.
• The sites Amazon, Rediff and Uphar are
among those belonging to this category. These
websites are meant for selling goods directly
to consumers through the internet.
• The B2C model of e-commerce is more prone
to the security threats because individual
consumers provide their credit card and
personal information on the site of a business
organization.
• Therefore, it becomes very essential for the
business organizations to provide robust
security mechanisms that can guarantee a
consumer for securing his information.
 Consumer to Consumer E-commerce (C2C)

• Here interaction is between consumers to

consumer. For example, in sites like e-Buy Bid or
Buy.com, Baazi.com which are auction sites, one
can virtually sell and buy any goods (either used
or new ones).
• If anyone wants to sell anything, all one has to
do is post a message on the site, giving details of
the product and the expected price and wait for
an interested customer to turn up and buy it.
 Consumer-to-Business E-commerce (C2B)

• The C2B model involves a transaction that is conducted

between a consumer and a business organization.
• It is similar to the B2C model, however, the difference
is that in this case the consumer is the seller and the
business organization is the buyer.
• An example of C2B model of e-commerce is the site
Priceline.Com, which allows prospective airline
travelers, tourists in need of hotel reservations etc. to
visit its websites and indicate their preferred price for
travel between any two cities.
• It is similar to the B2C model, however, the
difference is that in this case the consumer is
the seller and the business organization is the
buyer.
• In this kind of a transaction, the consumers
decide the price of a particular product rather
than the supplier.
• This category includes individuals who sell
products and services to organizations. For
example, www.monster.com is a Web site on
which a consumer can post his bio-data for
the services he can offer.
• Any business organization that is interested in
deploying the services of the consumer can
contact him and then employ him, if suitable.
Based on technology use
• Peer-to-Peer E-commerce
• Mobile E-commerce
A peer-to-peer (P2P)
• A peer-to-peer (P2P) or point-to-point network is a
computer network in which all or some of its
components run without clients or fixed servers over a
series of nodes that behave equally among each other.
• In other words, they act simultaneously as clients and
servers with regard to all the other nodes in the
network.
• Enables Internet users to share files and computer
resources.
– Without a need to go through a central web server .
 Mobile E-commerce

• Wireless digital devices enable transactions

on the Web
• Uses personal digital assistants (PDAs), cell
phones to connect
• Once connected, mobile consumers can
conduct any type of transactions
– Banking, travel and hotel reservations, and more
• Used most widely in Japan and Europe
Forms of e-marketing

Internet Marketing

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 What is Internet Marketing?
definition: Internet marketing is the result of
information technology applied to traditional
marketing.
– Internet marketing affects traditional marketing
in two ways:
• Increases efficiency in traditional marketing
functions,
• The technology of Internet
marketing transforms many marketing
strategies.
 Results: new business models that add customer
value and/or increase company profitability.
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 Birth of the Internet(Net)
• The Internet grew out of an experiment in the 1960s
by the U.S. Department of Defence.
• They wanted to create a computer network that
would continue to function in the event of a disaster,
such as a nuclear war.
• If part of the network was damaged or destroyed, the
rest of the system still had to work. That network was
ARPANET, (Advanced Research Projects Agency
Network) which linked U.S. scientific and academic
researchers. It was the forerunner of today's Internet.
 What is Internet?

• A large computer network linking smaller

computer networks worldwide.
• It is the network of network which links
millions of computers, organizations,
individuals , researchers with in a mater
of second.
Internet
What do I Need to Connect to the
Internet ?

+ +
Computer, Telephone, + Internet
Mouse & Cable, DSL
Browser Service
Modem or or
Software Provider
network card Wireless…
 Why Use the Internet?
• To search for Information on
the World Wide Web

• To use e-mail

• The World Wide Web (www) and

e-mail are two different Internet services!
World wide web(www)Website
World wide web(www)
• Tim Berners-Lee, First web server and client, 1990
• Established a common language for sharing information
on computers
What is world wide web(Web)
• It is a network of electronic files stored on millions of
computers all around the world.
• is a collection of documents and services, distributed
across the internet and linked together by hypertext links.
• The web is therefore a subset of the Internet, not the
same thing.
• It can be viewed as a huge distributed system
consisting of millions of clients and servers for
accessing linked documents.
Hyper text/hyperlink
• Hyperlinks are the programmatic commands
to jump to another page in your web browse.

• A hyperlink is a word, phrase or image that

can click on to jump to document or a new
section with in the current document.
HTTP (Hypertext Transport Protocol)

• The set of rules for exchanging files (text,

graphic images, sound, video, and other
multimedia files) on the World Wide Web.
• Example
http://www.google.com
Http
 HTML (Hypertext Mark up Language)

• Is the programming language that makes it

possible for us to view content from all over
the world via hyperlinks.
• The coding language used to create
documents for use on the World Wide Web.
• HTML documents are described by HTML tags
 Tags
• Tags are items surrounded by angle
brackets containing codes indicating how
text should be displayed
• E.g. <B>Hello</B> appears Hello<B> is the
start-tag and </B> is the end tag
What is Web page or page
• A web page is the basic building block for the
entire www.
• Web page is filled with dozens of hyperlinks
each sending you to some related web page or
picture/file.
• A web page is not the same as a web site.
Web page
 Web Browsers
• A web browser is the software program you use
to access the World Wide Web, the graphical
portion of the Internet.
• Browsers are basically software programmes
that allows you to search for and view various
kinds of information on the web, such as
websites, videos, audio etc.
• Easy-to-use point-and-click interface helped
popularize the Web.
• A Web browser contains the basic software you
need in order to find, retrieve, view, and send
information over the Internet.
• It enables to connect your computer to the
Web server.
• The appearance of a particular Web site may
vary slightly depending on the browser you use.
Web Browsers
What is Uniform Resource Locators (URL)?

• Uniform Resource Locators or URLs are the

addresses used to locate the files or it is the
Internet address.  .
Example:
• http://www.mu.edu.et
 What are Domains?

• Domains divide World Wide Web sites into categories based

on the nature of their owner, and they form part of a site's
address, or uniform resource locator (URL).
• It locates an organization or other entity on the internet, for
example the domain name for google is
– www.google.com
– It is the comprised of three essential parts
• .com
• .google
• www: this is a sub- domain prefix for the world wide web
• The most Common top-level domains are:
• .com eg. About.com
• .org wikipedia.org
• .edu mu.edu
• .net sourceforge.net
• .mil navy.mil
• .info ethio.info
• Each country linked to the Web has a two-letter
top-level domain, for example .et is for Ethiopia .fr
is for France, .ie is Ireland
Individual Assignment

1. The Driving Forces of Electronic Marketing

The three main driving force are:
1. Business pressures
2. Organizational responses
3. The role of Information Technology
(including electronic commerce)
2. Ten rules of E-Marketing
3. The impact of e-Marketing on:
- business organizations
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