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

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

3. Some Stats
First quarter 2011 e-commerce estimate increased percent from the first quarter of 2010.
First quarter 2012 e-commerce estimate increased percent from the first quarter of 2011.
Total retail sales increased 6.5 percent from Q to Q
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

4. 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

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

6. Google Revenue by Source

7. 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

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

9. 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

10. 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

11. 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