E-COMMERCE

&
DIGITAL MARKETING
SY – MASTERS

PROF. KINNARIE SINGH

CHAPTER 5 -
E-BUSINESS
MEANING OF E-BUSINESS

■ It is the administration of conducting business via the internet.

■ It would include buying & selling of goods & services, along with providing technical
or customer support through the internet.
HOW TO LAUNCH AN E-BUSINESS

1 2 3
STEP 1: CHOOSING A STEP 2: RESEARCH STEP 3: WRITING
PRODUCT & PREPARE YOUR BUSINESS
• Finding a product to • Research your PLAN
sell competition
• Evaluating your idea • Tools to research your
competition
COMPONENTS OF BUSINESS PLAN

Executive Summary
Company Description
Market Analysis
Operational Plan
Organization & Management
Products & Services
Marketing & Sales
Financial Projections
Funding Request
Registering your Business
SETTING UP YOUR BUSINESS
■ Naming your Business Prepare your Social Networks
■ Creating a Logo ■ Claim your Name
■ Choose your Social Networks wisely
■ Set up your Profile & Cover Photos
■ Build a following & start connecting
■ Get your Email Marketing ready
■ Choose your Email Provider
■ Launch your Landing Page
■ Install Google Analytics
■ Do your Keyword Research
■ Build Your Online Store
SETTING UP YOUR BUSINESS
Decide on your KPI`s
■ Sales KPI
– Monthly sales
– Average Order Size
– Average Margin
– Conversion Rate
– Shopping Cart Abandonment Rate
■ Marketing KPI
– Site Traffic
– Unique Visitors vs. returning Visitors
– Time On Site
– Page Views per visit
– Traffic Source & Referrals
– Newsletter Subscribers
– Social Media Followers or Fans
SETTING UP YOUR BUSINESS
Know your Shipping Strategy
■ Packaging Options & Materials
■ Which Shipping Carriers to Use
■ Shipping Time & Cost
LAUNCH PROMOTION &
STRATEGY
Strategy
■ Provide SEO product descriptions that inform, not bore, visitors.
■ Make your site easy to navigate
■ Include T&C, shipping & returns & site map pages
■ Support multiple browsers & mobile devices
■ Purchase accounting software
CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
■ It is the term that refers to practices, strategies & technologies that companies use to
manage & analyze customer interactions & data throughout the customer lifecycle, with
the goal of improving business relationships with customers, assisting in customer
retention & driving sales growth.

■ It also provides with customer-facing staff detailed information on customers personal

information, purchase history, buying preferences & concerns.
ENTERPRISE RESOURCE
PLANNING (ERP)
■ Its goal is to facilitate the flow of information so business decision can be data-driven.

■ ERP software suites are built to collect & organize data from various levels of an
organization to provide management with insight into KPIs in real time.

■ ERP software modules can help an organization`s administrators monitor & manage
supply chain, procurement, inventory, finance, PLC, projects, human resources & other
mission-critical components of a business through a series of interconnected executive
dashboards.
 CHAPTER 6 -
BRICKS & CLICKS
BRICKS & CLICKS STORE OR
MODEL (CLICKS & MORTAR)
■ A business that has not just a physical or online location, but also has both retail outlet
as well as a website that is enables for e-commerce.
ADVANTAGES & DISADVANTAGES
OF BRICKS & CLICKS MODEL
Advantages to Firms Disadvantages to Firms
■ Higher reach ■ Cost control
■ Increased customer loyalty ■ Maintaining the physical presence
■ Improved data collection
ADVANTAGES OF BRICKS &
CLICKS MODEL
Advantages to Consumers Disadvantages to Consumers
■ Convenience ■ Retailers compete on price, with quality
& service deteriorating
■ Physically see & touch products before
purchase ■ Prices don’t match online & offline
leading to confusion & mis-management
■ Support on purchase
■ Tend to buy more items than they need.
■ Feel safe & have more confidence
BRICKS & MORTAR MODEL

■ Businesses that have physical presence only.

ADVANTAGES & DISADVANTAGES
OF BRICKS & MORTAR MODEL
Advantages
■ Customer service
■ Face-to—face interactions
Disadvantages
■ New businesses & fixed costs
■ Inconvenient for customers with busy
lifestyles
■ Expensive products
■ Wider stock availability online
■ Long queues
PURE-PLAY STORE OR MODEL
(PURE ONLINE)
■ Organization that originated & does business purely through the internet, they have no
physical store where customers can shop.
ADVANTAGES & DISADVANTAGES
OF PURE ONLINE MODEL
Advantages Disadvantages
■ Enjoy lower overhead costs ■ Shipping rates
■ Your business is always open ■ Waiting

■ Reach a broader audience ■ Refunds / returns disputes

■ Target niche markets ■ No hanging out with friends & family

while shopping
■ Easily gather data on customer
■ Deprives you of tangibility
behaviour
■ Makes you lazy & fat
■ No bargaining
E-BUSINESS APPLICATIONS
■ It is any information system or application that empowers business processes.
It includes:
1) Internal Business Systems:
■ CRM
■ ERP
■ Knowledge management
■ Workflow management
■ Document management system
■ HRM
■ Process Control etc.
E-BUSINESS APPLICATIONS
2) Enterprise Communication & 3) Electronic Commerce:
Collaboration:
■ Electronic Funds Transfer
■ E-mail
■ SCM
■ Voice mail
■ E-marketing
■ Discussion forums
■ Online transaction processing
■ Chat systems
■ Data conferencing
■ Collaborative work systems
E-PROCUREMENT

■ It is an online system by which companies can be connected directly to suppliers for the
purpose of buying products & services at the lowest cost possible.

■ It essentially replaces its offline version called tendering.

ADVANTAGES & DISADVANTAGES
OF E-PROCUREMENT
Advantages Disadvantages
■ Low cost of information ■ More for suppliers than customers
■ Technology courtesy of internet ■ High training costs
■ Cost of buying & selling is reduced ■ Higher risk of data compromise
■ Barriers of market entry have reduced
■ Price transparency
■ Maverick buying is not possible
■ Efficient integration of supply chain &
tracking of transaction records
■ Promotes shorter product-development
cycle
E-COMMUNICATION

■ Communication using electronic media.

■ Allows transmission of message or information using computer systems, fax machines,

e-mail, tele or video conferencing.

■ People can share images, text, sounds, graphics, videos, maps, etc.

■ Online ads & banners also fall in this category as a part of e-promotions.
ADVANTAGES & DISADVANTAGES
OF E-COMMUNICATION
Advantages
■ Speedy transmission
■ Wide coverage
■ Low cost
■ Exchange of feedback
■ Managing global operation
Disadvantages
■ Volume of data
■ Cost of development
■ Legal status
■ Undelivered data
■ Dependency
 CHAPTER 7 -
ELECTRONIC DATA
INTERCHANGE (EDI)
MEANING OF EDI

■ It is the computer-to-computer exchange of routine business data between trading

partners in standard data formats.
ADVANTAGES & DISADVANTAGES
OF EDI
Advantages
■ Expedite transmission
■ Automated data entry
■ Receipt verification
■ Data validation
■ Availability of free software
■ Low cost
■ Faster processing
■ Building long-term relationships
■ Reduction in error
Disadvantages
■ Expensive
■ Initial setup is time consuming
■ EDI standard changes
■ System electronic protection
■ Staff training cost
■ Proper backup
■ Limit you trading partners
EDI DOCUMENTS

■ It is comprised of data elements, segments & envelopes that are formatted according to the rules
of a particular EDI standard
While creating EDI documents:
■ Adhere to the strict formatting rules of the standard you are using
■ These rules define exactly where & how each piece of information in the document will be found.
■ EDI translator on receiving the computer reads an incoming EDI document & immediately
understands where to find the buyers company name, purchase order no., items being ordered,
price of each item etc.
■ Then, that data will be fed into the receivers order entry system in the proper internal format
without repairing any manual order entry.
DATA ELEMENTS
■ Data elements in an EDI Transaction Set are the individual items of information within
the document.
■ Each data element in a transaction set is defined in the EDI Standard by the type of data
it represents.

Data element definition will describe:

■ Data type of numeric, alphanumeric, data or time
■ Minimum & maximum length
■ Code values

A segment in an EDI Transaction Set is a group of like data elements.

EDI ENVELOPES

■ EDI document transmission uses a system of three ”envelopes” to house your

transaction sets – message envelope, group envelope & interchange envelope.
■ Each transaction set is placed in its individual envelope
■ A group of transaction sets is placed in a group envelope.
■ All group envelopes being sent from one sender to one receiver are placed in an
interchange envelope.
CHAPTER 8 – WEB DESIGN
& DEVELOPMENT
WWW (World Wide Web)

■ It is the system of internet servers that supports hypertext to access several internet
protocols on a single interface.
■ WWW has its own protocol known as HTTP (Hyper Text Transfer Protocol)
■ It consists of files, called pages or home pages, containing links to documents &
resources throughout the internet.
URL & DOMAIN NAME SYSTEM

■ URL stands for Uniform Resource Locator.

■ It specifies the internet address of the file stored on a host computer connected to the
Internet.
■ URL`s are translated into numeric addresses using the Domain Name System (DNS).
■ The numeric address called the IP (Internet Protocol) address, is actually the real URL
URL & DOMAIN NAME SYSTEM

Anatomy of a URL:
Protocol://host/path/filename
Eg. http://www.yahoo.com.news.html
Protocol: http
Host computer name: www
Second-level domain name: Yahoo
Top-level domain name: com
File name: html
URL & DOMAIN NAME SYSTEM

DOMAIN STANDS FOR

Com Commercial Enterprise
Edu Educational Institutions
Gov Government Entity
Mil Military Entity
Net Net Access Provider
Org Usually non-profit organizations
WEBSITES, WEB PAGES, WEB
SERVER
■ A website is a collection of web pages maintained by a single person or organization
that are linked with each other to form a single body of information.
■ A webpage is a single file of a web site. It is referred to by the web server by the
filename & displayed to the user by a web browser. A webpage can be of any length &
can contain text, graphic, audio or video.
■ A web server is a computer or a internet that contains one or more websites.
WEBSITES, WEB PAGES, WEB
SERVER
Websites

Static Dynamic

It contains web pages with It contains web pages with

fixed content (basic style) can be edited & published.
ADVANTAGES OF E-COMMERCE
SITES
Advantages
■ Less expensive ■ Access to Info
■ Advertising ■ Fresh
■ Satisfaction ■ Links
■ Increase customers ■ Better relationships
■ Accessibility ■ Increase sales & opportunities
■ Long term client
WEB DESIGN

■ It is a concept of planning, creating & maintaining websites.

■ The very process of using creativity to design & construct a website & updating it
regularly to incorporate changes is also referred to as web designing.
■ It also points to the visual aspects of the website but in truth it also overlaps with the
process of web development in a broader sense.
PRINCIPLES OF WEB DESIGN

■ Purpose ■ Navigation
■ Communication ■ Grid based layouts
■ Typefaces ■ F-pattern design
■ Colours ■ Load time
■ Images ■ Mobile friendly
LIFECYCLE OF A WEB DESIGN
PROJECT
ANALYSIS / CONTENT
TESTING
SPECIFICATION LOADING

BRIEFING / IMPLEMENTATI LAUNCH /

QUOTING ON PROMOTION

CONTENT GROWTH &

DESIGN
WRITING DEVELOPMENT