1. E commerce
UNIT-1 & 2

2. E commerce is the buying and selling of goods and services, over the electronic network like computer , smart phone or laptop etc..called e commerce.
The concept of e commerce was first introduced in India in 1990 that raddif had been trying to capture the Indian market since the year 1999 and that IRCTC was the first company to create a successful e commerce portal

3. Types of E-Commerce B2B e-commerce B2C e-commerce C2B e-commerce
C2C e-commerce

4. B to B is a type of transaction that exist b/w business such as one involving the manufacturer and wholesaler
(eg): Intel selling microprocessor to dell.
B to C is referred as business to consumer, describes the activities of business in selling products or services.
(eg): Dell selling us a laptop.
C to C is enable consumer to sell directly to other consumers without having go through a middleman (eg) olx
C to B consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project.
(eg) Elance

5. Key factors of e-commerce
Technology
Broad band internet
Smart device penetration
Availability of wider product range
Social status
E-commerce ecosystem
Customer satisfaction

6. Importance of E-commerce
E-commerce is popular because of its vast advantages.
It is very convenient for everyone to shop any time , anywhere and in any device I instead of visiting shops.
No need of physical company set- ups.
Buying /selling 24/7 .
Better quality of service.
Ability to reach new market

7. Online market place
Flip cart was started by Sachin bansal and Binny Bansal in It is leading at the first position after acquire myntra in a deal of 3.1 billion.
Snap deal was started by alumnus by IIT Delhi
in 2010, it is placed at third position.
Myntra accuired fourth position, started in 2007 etc
On the other hand there are many other online web portal for online marketing.

8. Scope of e-commerce
India is completely growing stage of development , incredible India has a new name DIGITAL INDIA .
There is a huge scope of e-commerce , the current generation completely belongs to e service ,which are most preferred ways to connect to people around the world.
Business website development.Advertizment

9. E-Commerce Transaction Processing
E-commerce transaction processing software: connects participants in the e-commerce economy and enables communication between trading partners, regardless of their technical infrastructure
Fully automates transaction processes from order placement to reconciliation
Web site traffic data analysis software: processes and analyzes data from the Web log file to provide useful information to improve Web site performance

10. Advantage and Disadvantage
.E-commerce works properly
Unable to examine product easily
There is a possibility to credit card number theft.
Not everyone is connected to the internet.
Skills required

11. E-commerce Marketing and Advertising
Copyright © 2015 Pearson Education, Inc.

12. Consumers Online: The Internet Audience and Consumer Behavior
Growth rate has slowed
Intensity and scope of use both increasing
Some demographic groups have much higher percentages of online usage than others
Income, education, age, ethnic dimensions

13. Consumers Online (cont.)
Broadband and mobile
Significant inequalities in broadband access
Older adults, lower income, lower educational levels
Non-broadband household still accesses Internet via mobile or other locations
Neighborhood effects
Role of social emulation in consumption decisions
“Connectedness”
Top 10–15% are more independent
Middle 50% share more purchase patterns of friends
Recommender systems - co-purchase networks

14. Consumers Online (cont.)
Study of consumer behavior
Social science discipline
Attempts to explain what consumers purchase and where, when, how much, and why they buy
Consumer behavior models
Attempt to predict or explain wide range of consumer decisions
Based on background demographic factors and other intervening, more immediate variables
Profiles of online consumers
Consumers shop online primarily for convenience

15. A General Model of Consumer Behavior
Figure 6.1, Page 375
SOURCE: Adapted from Kotler and Armstrong, 2009.

16. The Online Purchasing Decision
Five stages in consumer decision process
Awareness of need
Search for more information
Evaluation of alternatives
Actual purchase decision
Post-purchase contact with firm

17. The Consumer Decision Process and Supporting Communications
Figure 6.2, Page 376

18. The Online Purchasing Decision (cont.)
Decision process similar for online and offline behavior
General online behavior model
User characteristics
Product characteristics
Web site features: latency, usability, security
Attitudes toward online purchasing
Perceptions about control over Web environment
Clickstream behavior

19. A Model of Online Consumer Behavior
Figure 6.3, Page 377

20. Shoppers: Browsers and Buyers
Shoppers: Almost 90% of Internet users
74% buyers
16% browsers (purchase offline)
One-third of offline retail purchases influenced by online activities
Online traffic also influenced by offline brands and shopping
E-commerce and traditional commerce are coupled: Part of a continuum of consuming behavior

21. What Consumers Shop for and Buy Online
Big ticket items
Travel, computer hardware, electronics
Consumers now more confident in purchasing costlier items
Small ticket items
Apparel, books, office supplies, software, and so on
Types of purchases depend on level of experience with the Web

22. How Consumers Shop How shoppers find online vendors
Highly intentional, goal-oriented
Search engines
Marketplaces (Amazon, eBay)
Specific retail site
10% of Internet users don’t shop online
Trust factor
Hassle factors (shipping costs, returns, etc.)

23. Trust, Utility, and Opportunism in Online Markets
Two most important factors shaping decision to purchase online:
Utility:
Better prices, convenience, speed
Trust:
Most important factors: Perception of credibility, ease of use, perceived risk
Sellers can develop trust by building strong reputations for honesty, fairness, delivery

24. Digital Commerce Marketing and Advertising: Strategies and Tools
Internet marketing (vs. traditional)
More personalized
More participatory
More peer-to-peer
More communal
The most effective Internet marketing has all four features

25. Multi-Channel Marketing Plan
Web site
Traditional online marketing
Search engine, display, , affiliate
Social marketing
Social networks, blogs, video, game
Mobile marketing
Mobile/tablet sites, apps
Offline marketing
Television, radio, newspapers

26. Strategic Issues and Questions
Which part of the marketing plan should you focus on first?
How do you integrate the different platforms for a coherent message?
How do you allocate resources?
How do you measure and compare metrics from different platforms?
How do you link each to sales revenues?

27. Establishing the Customer Relationship
Web site functions to:
Establish brand identity and customer expectations
Differentiating product
Anchor the brand online
Central point for all marketing messages
Inform and educate customer
Shape customer experience

28. Online Advertising Online advertising
Display, search, mobile messaging, sponsorships, classifieds, lead generation,
Fastest growing form of advertising
Advantages:
18–34 audience is online
Ad targeting
Price discrimination
Personalization

29. Traditional Online Marketing and Advertising Tools
Search engine marketing and advertising
Display ad marketing
marketing
Affiliate marketing
Viral marketing
Lead generation marketing

30. Search Engine Marketing and Advertising
Search engine marketing (SEM)
Use of search engines for branding
Search engine advertising
Use of search engines to support direct sales
Types of search engine advertising
Sponsored links (keyword paid inclusion)
Keyword advertising
Network keyword advertising (context advertising)

31. Search Engine Marketing (cont.)
Search engine optimization (SEO)
Google search engine algorithms
Panda, Penguin, Hummingbird, Knowledge Graph
Social search
Utilizes social contacts and social graph to provide fewer and more relevant results
Search engine issues
Paid inclusion and placement practices
Link farms, content farms
Click fraud

32. Display Ad Marketing Banner ads Rich media ads Video ads Sponsorships
Interstitial ads
Video ads
Far more effective than other display formats
Sponsorships
Native advertising

33. Display Ad Marketing (cont.)
Advertising networks
Programmatic advertising
Real-time bidding process (RTB)
Ad exchanges
Display advertising issues
Ad fraud
Viewability

34. How an Advertising Network Such as DoubleClick Works
Figure 6.7, Page 395

35. E-mail Marketing Direct e-mail marketing Three main challenges
Messages sent directly to interested users
Benefits include
Inexpensive
Average over 6% click-throughs for in-house lists
Measuring and tracking responses
Personalization of messages and offers
Three main challenges
Spam
Anti-spam software
Poorly targeted purchased lists

36. Spam Unsolicited commercial e-mail Around 60% of all e-mail in 2014
Most originates from bot networks
Efforts to control spam have largely failed:
Government regulation (CAN-SPAM)
State laws
Voluntary self-regulation by industries (DMA )
Canada’s stringent anti-spam laws

37. Other Types of Traditional Online Marketing
Affiliate marketing
Commission fee paid to other Web sites for sending customers to their Web site
Viral marketing
Marketing designed to inspire customers to pass message to others
Lead generation marketing
Services and tools for collecting, managing, and converting leads

38. Social, Mobile, and Local Marketing and Advertising
Social marketing/advertising
Fastest growing type of online marketing
Enormous audiences of social networks
Four features driving growth
Social sign-on
Collaborative shopping
Network notification
Social search (recommendation)

39. Social Marketing/Advertising (cont.)
Blog marketing
Educated, higher-income audience
Ideal platform to start viral campaign
Game marketing
Large audiences for social and mobile games
Used for branding and driving customers to purchase moments at restaurants and retail stores

40. Mobile Marketing and Advertising
The online marketing, growing rapidly
Major formats:
Display, rich media, video
Games
Text messaging (SMS)
In-store messaging
Quick Response (QR) codes
Couponing
App marketing

41. Local Marketing Geared to user’s geographic location
Most common local marketing tools
Geotargeting with Google Maps
Display ads in hyperlocal publications
Daily deals
Coupons

42. Multi-Channel Marketing
Consumers also multitask, using several media
Internet campaigns strengthened by using other channels
Most effective are campaigns using consistent imagery throughout channels

43. Other Online Marketing Strategies
Several strategies are more focused than traditional online and newer strategies
Customer retention strategies
Pricing strategies

44. Other Online Marketing Strategies
Customer retention strategies
Personalization and one-to-one marketing (interest-based advertising)
Retargeting
Behavioral targeting
Based on data from search engine queries, clickstream history, social network data, and integration of offline personal data and records
Effectiveness still inconclusive
Privacy issues

45. Other Online Marketing Strategies (cont.)
Customization
Changing the product
Information goods ideal for differentiation
Customer co-production
Customers help create product
Customer service
FAQs
Real-time customer chat systems
Automated response systems

46. Pricing Strategies Pricing Price discrimination
Integral part of marketing strategy
Traditionally pricing based on
Fixed cost
Variable costs
Demand curve
Price discrimination
Selling products to different people and groups based on willingness to pay

47. Pricing Strategies (cont.)
Free and freemium
Can be used to build market awareness
Versioning
Creating multiple versions of product and selling essentially same product to different market segments at different prices
Bundling
Offers consumers two or more goods for one price
Dynamic pricing
Auctions
Yield management: Amazon
Surge pricing: Uber
Flash marketing: Rue La La, HauteLook, Gilt Groupe

48. Internet Marketing Technologies
Internet’s main impacts on marketing:
Scope of marketing communications broadened
Richness of marketing communications increased
Information intensity of marketplace expanded
Always-on mobile environment expands marketing opportunities

49. Web Transaction Logs Built into Web server software
Record user activity at Web site
Provides much marketing data, especially combined with:
Registration forms
Shopping cart database
Answers questions such as:
What are major patterns of interest and purchase?
After home page, where do users go first? Second?

50. Tracking Files Users’ browsing tracked as they move from site to site
Four types of tracking files
Cookies
Small text file placed by Web site
Allows Web marketers to gather data
Flash cookies
Beacons (“bugs”)
Apps

51. Databases Enable profiling Store records and attributes
Database management system (DBMS):
Software used to create, maintain, and access databases
SQL (Structured Query Language):
Industry-standard database query and manipulation language used in a relational database
Relational database:
Represents data as two-dimensional tables with records organized in rows and attributes in columns; data within different tables can be flexibly related as long as the tables share a common data element

52. Data Warehouses and Data Mining
Collects firm’s transactional and customer data in single location for offline analysis by marketers and site managers
Data mining:
Analytical techniques to find patterns in data, model behavior of customers, develop customer profiles