MGMT Summer 2012 Night #6, Part 2

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Presentation transcript:

MGMT 661 - Summer 2012 Night #6, Part 2 E-Commerce MGMT 661 - Summer 2012 Night #6, Part 2

Definition of E-Commerce: commerce that is transacted electronically, usually over the Internet textbook Figure 10-1

Some Stats First quarter 2011 e-commerce estimate increased 17.6 percent from the first quarter of 2010. First quarter 2012 e-commerce estimate increased 15.4 percent from the first quarter of 2011. Total retail sales increased 6.5 percent from Q1 2011 to Q1 2012. E-commerce sales in Q1 of 2012 = $53.2 Billion Total Retail Sales in Q1 of 2012 = $1,083 Billion So, E-Commerce = 4.9% of sales http://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf

What is unique about E-Commerce? Internet is ubiquitous Internet works the same everywhere (IEEE standards) Low market entry costs Unique Marketing Abilities Multi-media Targeted messages to Individuals Easy for consumers to find pricing information more Information Symmetry

Internet Business Models Virtual Storefront Information Broker Transaction Broker Online Marketplace Service Provider Social Network

Google Revenue by Source http://milehighseo.org/wp-content/uploads/2012/04/google-qtr1-fy2012-revenue.png

AdWords Google's main source of revenue you bid on terms and then pay-per-click whoever pays the most has their ad on top you can use "frequency capping" other advertising services: AdSense - buy terms on non-google.com sites banner ads on their content sites (eg youtube) certified Google Advertising Professionals

Important Concepts (Buzzwords) Types of E-Commerce B2C B2B C2C Clickstream Tracking B2B data sharing methods Electronic Data Interchange "Public" Exchange Private Exchange

M-Commerce Advantages: Challenges: even more ubiquitous B2C commerce GPS enables very targeted marketing new digital goods, e.g. ringtones and games Challenges: mobile devices' display and input ≠ PC screen and keyboard even more ubiquitous

Geek Speak Time Client-Side Processing Server-Side Processing JavaScript = instructions that run inside your browser can track your mouse, read and write cookies, etc Server-Side Processing processes data from your browser to create a unique response

Next Class... Decision Support Systems Knowledge Management Systems Paper Ideas from tonight: Case Study : UPS Supply Chain Services Case Study : Oracle Accelerate (for mid-sized companies) Survey of CRM systems AdWords: selecting keywords, how much to pay