CU-BCOM-SEM-III-Introduction to E-Commerce-Second Draft

UNIT - 4: APPLICATIONS STRUCTURE 4.0 Learning Objectives 4.1 Introduction 4.2 E-Commerce Applications 4.3 E-Commerce, E-Business and Components Of E-Business 4.4 E-Commerce Vs E-Business 4.5 Summary 4.6 Keywords 4.7 Learning Activity 4.8 Unit End Questions 4.9 References 4.0LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe application of E-Commerce  State the components of E-Business  Discuss the concepts of business model  Difference between E-Commerce and E-Business 4.1 INTRODUCTION Introduction: The term “Electronic commerce” (or e-Commerce) is use of an electronic medium to carry out commercial transactions. Most of the time, it refers to the sale of products through Internet. Definition of E-commerce: Sharing business information, maintaining business relationships and conducting business transactions using computers connected to telecommunication network is called E-Commerce. Another Definition: E-commerce is a process of buying and selling of products and services by businesses and consumers through an electronic medium, without using paper documents. E-commerce is widely considered the buying and selling of products over the internet. 51 CU IDOL SELF LEARNING MATERIAL (SLM)

4.2 E-COMMERCE APPLICATIONS E-commerce in other words, is a process by which goods and services are advertised, bought and sold electronically over the internet E commerce is thus the paper less exchange using electronic data interchange (EDI). The buyer select items from the outline catalog make the purchase and pays by credit card and other electronic modes of payment. We can classify Ecommerce by application into: Electronic markets – here the buyer is presented a range of products and services available in a market so that they can compare prices and make the purchase Electronic Data Interchange – this is a standardized system where computers communicate with one another without printed documents like order forms or invoices; it eliminates delays and errors otherwise seen when paper handling is involved Internet Commerce – the one we are most familiar with; the medium used to advertise, and sell innumerable products and services; the purchased goods are then shipped to the buyer. Types of Ecommerce: - There are 4 main categories of E-commerce mainly B2B, B2C, C2B and C2C. 1. Business to business (B2B):- Here companies sell their products for other business such as distributer and whole sellers. 2. Business to consumer (B2C): - Business selling products or services to consumers are coming under this category. 3. Consumer to business (C2B): - Here the consumer posts his requirement to companies and companies in review the requirement of consumers and bid on the project. The consumer studies the bid and takes a decision. 3. Consumer to consumer (C2C): - In this category the consumer can buy or sell on free classified and auctions. The goods are offered by the consumers and sold by the consumers. The stage is said by big sites like E-bay where people transact the business themselves. Common Applications of E-commerce:- 1. Essential applications: - E-commerce facilities the online purchase of products, auctions etc. The consumers can get finally advice about their health and items essential products come under this category. Ex: Online shopping options. 2. Financial applications: -These services are fast and accurate for example we can withdraw money from ATM. These ATM’s provide accurate out puts about various transactions. The following services come under this category. Ex: - Internet Banking, Online (bank) trading financial views. 52 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Educational applications: - These applications provide information about different universities available throughout the word and also provide different online study courses. These include the following services. 4. Entertainment applications: - Web is placed for entertainment, we can chat, see movies, play games etc... All these activities are possible with the help of E-commerce. Ex: - Chatting, multiuser, games news groups. E-Commerce Applications: The applications of E-commerce are used in various business areas such as retail and wholesale and manufacturing. The most common E-commerce applications are as follows: a. Online marketing and purchasing b. Retail and wholesale c. Finance d. Manufacturing e. Online Auction f. E-Banking g. Online publishing h. Online booking (ticket, seat.etc) Online marketing and purchasing Data collection about customer behavior, preferences, needs and buying patterns is possible through Web and E-commerce. This helps marketing activities such as price fixation, negotiation, product feature enhancement and relationship with the customer. Retail and wholesale: E-commerce has a number of applications in retail and wholesale. E-retailing or on-line retailing is the selling of goods from Business-to-Consumer through electronic storesthat are designed using the electronic catalog and shopping cart model. Cybermall is a single Website 53 CU IDOL SELF LEARNING MATERIAL (SLM)

that offers different products and services at one Internet location. It attracts the customer and the seller into one virtual space through a Web browser. Finance: Financial companies are using E-commerce to a large extent. Customers can check the balances of their savings and loan accounts, transfer money to their other account and pay their bill through on-line banking or E-banking. Another application of E-commerce is on- line stock trading. Many Websites provide access to news, charts, information about company profile and analyst rating on the stocks. Manufacturing: E-commerce is also used in the supply chain operations of a company. Some companies form an electronic exchange by providing together buy and sell goods, trade market information and run back office information such as inventory control. This speeds up the flow of raw material and finished goods among the members of the business community. Various issues related to the strategic and competitive issues limit the implementation of the business models. Companies may not trust their competitors and may fear that they will lose trade secrets if they participate in mass electronic exchanges. Auctions: Customer-to-Customer E-commerce is direct selling of goods and services among customers. It also includes electronic auctions that involve bidding. Bidding is a special type of auction that allows prospective buyers to bid for an item. For example, airline companies give the customer an opportunity to quote the price for a seat on a specific route on the specified date and time. E-Banking: Online banking or E- banking is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, Online banking is also referred as internet banking, e-banking, virtual banking and by other terms. Online publishing: Electronic publishing (also referred to as e-publishing or digital publishing) includes the digital publication of e-books, digital magazines, and the development of digital libraries and catalogs. Online booking (ticket, seat.etc) An Internet booking engine (IBE) is an application which helps the travel and tourism industry support reservation through the Internet. It helps consumers to book flights, hotels, 54 CU IDOL SELF LEARNING MATERIAL (SLM)

holiday packages, insurance and other services online. This is a much needed application for the aviation industry as it has become one of the fastest growing sales channels. 4.3 E-COMMERCE, E-BUSINESS AND COMPONENTS OF E- BUSINESS E-business or Online business means business transactions that take place online with the help of the internet. The term e-business came into existence in the year 1996. E-business is an abbreviation for electronic business. So the buyer and the seller don’t meet personally. Electronic Business (E-Business) is the administration of conducting any business using internet, extranet, web and intranet. This would include buying and selling of goods or services using commercial transactions conducted electronically along with providing customer or technical support with the help of the internet. E-business is similar to E- commerce but it is more than just a simple act of buying and selling services or goods online. In fact, it is the method of utilizing digital information and advanced communication technologies to streamline different business processes – from the initial to implementation phase. E-business includes a lot of business processes including online order processing, CRM (Customer Relationship Management), supply chain management and many more. E- commerce is a part of e-business, so let me give you a comprehensive detail about what is e- business. E-CommerceandE-Business The terms e-commerce and e-Business. Electronic commerce, also termed as e- commerce, is a process of buying and selling of goods or services using electronic systems. These electronic systems can either be the Internet or other computer networks. The World Wide Web plays a major role in the implementation of e-commerce in most of the organizations. Some use the terms e-commerce and e-Business in an interchangeable manner, but these terms refer to different concepts. The concept where ICT is used in buying and selling of goods or services between organizations and in Business-to-Consumer (B2C) transactions is known as e-commerce. On the other hand, the concept where ICT is used to enhance the key business processes through the facilities available on the Internet is known as e-Business. It comprises of any process by which an organization conducts business over a computer network. Thethreemainprocessesenhancedine-Businessare: 1. Productionprocesses,whichinclude: 55 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Procurement b. Orderingandreplenishmentofstocks c. Processingofpayments d. Electroniclinkswithsuppliers e. Productioncontrolprocesses 2. Customer-focusedprocesses,whichinclude: a. Promotionalandmarketingefforts b. SellingovertheInternet c. Processingofcustomers’purchaseordersandpayments d. Customersupport 3. Internalmanagementprocesses,whichinclude: a. Employeeservices b. Employeetraining c. Internalinformation-sharing d. Videoconferencing e. Recruiting E- Commercegenerallymeetstheneedsofanorganization,retailersandconsumerstoreducetheco sts.Italsoconsidersthequalityofserviceanddeliveryofgoods. E-business or Online business means business transactions that take place online with the help of the internet. The term e-business came into existence in the year 1996. E-business is an abbreviation for electronic business. So the buyer and the seller don’t meet personally. Electronic Business (E-Business) is the administration of conducting any business using internet, extranet, web and intranet. This would include buying and selling of goods or services using commercial transactions conducted electronically along with providing customer or technical support with the help of the internet. E-business is similar to E- commerce but it is more than just a simple act of buying and selling services or goods online. In fact, it is the method of utilizing digital information and advanced communication technologies to streamline different business processes – from the initial to implementation phase. E-business includes a lot of business processes including online order processing, CRM (Customer Relationship Management), supply chain management and many more. E- commerce is a part of e-business, so let me give you a comprehensive detail about what is e- business. Components of E-Business E-business has several components including BI (Business Intelligence), CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), SCM (Supply Chain 56 CU IDOL SELF LEARNING MATERIAL (SLM)

Management), Collaboration, online activities, and electronic transactions within the firm. But following three areas have great importance for e-business: 1. E-Procurement It is also known as supplier exchange in which business to business, business to government, business to consumer, and sales of services are made with the help of the internet. Basically, e-procurement is a way adopted by the companies to reduce the costs and efforts by sourcing products or services electronically. 2. Online Stores It is an electronic sourcing (website or application) for products or services, such as online shopping stores. Online stores are also known as e-shop, internet shop, web-store, virtual store, web-shop, m-commerce, and online storefront. The main purpose of these online stores is to save precious time and money. Anyone can buy products or services by making online payments using credit cards, cash on delivery and other payment methods. The owners of online stores should host their ecommerce website on the PCI compliant hosting because Payment Card Industry Security Standards Council (PCI SSC) make it compulsory for those who are accepting the online payments. 3. Online Marketplace It is an electronic commerce that connects the buyers and suppliers to the services or products over the internet. Keep in mind, the operator of an online marketplace only presents the inventory of other people and provides the transaction facility. 4. Online Communities Online communities (also known as web communities or internet communities) are the groups of people having the same interests or purposes who use the internet to communicate with each other. It is used between the individuals and organizations to prepare transaction decisions. 5. Online Companies It is electronic business cooperation that connects the individual companies and forms a virtual business with a common transaction offer. Order Fulfillment Process Order fulfillment process is based on all the activities needed for a customer to get his ordered product or service including the related customer services. What is e-business and how the orders are processed is discussed with the help of particular figures. 1. Product inquiry 57 CU IDOL SELF LEARNING MATERIAL (SLM)

You are surfing the website of any well-reputed business brand manufacturing laptops, desktops, or monitors, and able to view their all products. 2. Sales Quote Laptop prices, screen size or usage are clearly mentioned on the website for the sales quotation for customers. 3. Order Configuration Once the customers select what he proposed to purchase, the number of products are easily adjusted or canceled during this phase. 4. Order Booking This phase includes the booking of products available on the website, such as desktops, laptops, or necessary accessories. 5. Order Confirmation This process ensures the details of the order such as prices and quantities are accurate. 6. Billing Billing is the process that enables customers to pay for the products by Visa, cheque, ATM, or other available payment methods. 7. Order Planning Every customer has different options for delivery, so the order will be delivered accordingly. 8. Order Processing Once the order is confirmed, the company ensures the right item in the right quantity, time, place, price, and condition to the right customer. 9. Shipment According to the customers’ requirements, the products will be delivered by means of an express, Air-to-Sea initiative, and so on. 10. Delivery The products will be delivered within a given time slot at the right address. 11. Settlement It is the method to settle all the remaining charges, like delivery costs or extra products’ care expenditure. 12. Returns Most of the companies offer the returns option with their particular terms and conditions. So, any customer who has received the products with any technical or physical problems of products, they can easily return their products within a specified period. 58 CU IDOL SELF LEARNING MATERIAL (SLM)

E-Business Model 1. E-business Concept What is e-business concept and how is it essential for a successful business? It describes the basic information of the business including goals, vision, products and offers from which it will earn revenue. The effective concept is based on market analysis that will identify the customers’ interests to purchase the product and how much they can pay for it. What is e-business concept? It is based on goals such as “Become a major bus seller or commercial enterprise” and objectives such as “have $80 million in revenues in five years”. Whether the company is prepared to achieve their goals and objectives addressed in the implementation plan for running a business and in the business plan process for startup companies. Corporate strategies are also embedded in the e-business concept and describe how the business concept will be implemented and can be modified in order to enhance business performance. Business concept and market research are important to understand the market, which comprises it and what do they want. Once the market research is done, now the pricing should be established according to the competition. 2. Value Proposition As the name denotes, the value proposition is a value that an organization or business will provide to its customers. It may include one or more of the following points: 1. Reduced price 2. Improved service or better functionalities with user-friendliness 3. Speedy delivery and improved assistance 4. Products or services that result in greater efficiency and productivity 5. Access to available inventory having different options for the buyer 6. Value Delivery With The Help Of Integrations Every functional website is based on two parts: frontend for dealing directly with the customers and backend in order to automate the online operations of the company without having direct dealing with customers. Order placements using POS (Point of Sales) systems, product customization, tracking and order fulfillment are the activities that require integrated systems. 3. Sources of Revenue What does ecommerce mean and how do companies earn revenue? Ecommerce is also known 59 CU IDOL SELF LEARNING MATERIAL (SLM)

as Electronic/internet commerce, refers to the buying and selling of services/products. It also includes the online payment options to the great online shopping experience. So, e-business will have three, four, or a mix of the following sources referred to as a revenue model:  Advertisement  Affiliation  Agent/Representative commissions  Licensing  Sales commissions  Sponsorship  Syndication  Use Fees  Subscription 4. Required Activities, Resources, and Capabilities In order to carry out the mission of the business, different activities are required and certain resources are needed. For example, professional employees with specific skills or capabilities can better perform particular business activities. Activities Particular business processes or groups of processes that are required to implement the business concept are known as activities. The operational business model is used to identify the costs/expenses and outputs of each activity. What is e-business and its processes? Keep in mind, some of the e-business activities may infringe on patents. Different business processes or “Method of doing business” might be patented, so that the business model may unintentionally include the intellectual property and patents will be freely awarded for business processes. For example: Amazon’s “one-click” purchasing patent has a most widely renowned patent infringement case because buyers can easily buy the products and services without using a shopping cart. Several companies have patented Internet Business Models, which are being used by many companies. So, they charge for licensing otherwise they will face problems in the future development of e-business. Resources Organizations require human, tangible, intangible, and supporting resources in order to perform the activities in an efficient manner. Tangible resources are also known as physical and financial including company equipment, case reserves, and facilities. Whereas the 60 CU IDOL SELF LEARNING MATERIAL (SLM)

intangible resources include the customized software, customers data, intellectual property and business processes that can be patented. Supporting resources include the IT and communication processes and organizational structure. Capabilities Workers with required skills are vital for every successful business. What is e-business and why are the capabilities necessary? E-business is similar to the traditional business except internet presence, broader audience and buying facility without visiting the company’s outlet. First/initial wages are the highest cost for a business and capable worker may not be available all the time. E-Commerce- Business Application Following are the major business application areas where E-Commerce is used widely: 1. Sale, Purchase of Goods: By using E-Commerce, consumers can buy the various products and services from the different manufacturers. Industries can purchase raw materials, components etc. using E- Commerce. Sellers can sell their products by using E-commerce. 2. Real Estate Market: Online real estate services are provided by websites that show listing of houses, shops and flats put up for sale and rent. Online real estate sites play supporting role for property dealers. Now builders can use virtual reality technology on their website to demonstrate three dimensional floor plans to buyers. This helps real estate companies to attract buyers. So transactions normally can be initiated online but materialize offline in a face to face contact of parties. Many websites are providing online real estate services. 3. Online Banking: Online Banking is also known as electronic banking, Net banking, virtual banking and internet banking online banking is defined as automated delivery of new and traditional banking products and services through electronic and interactive communication channels. Customers can access online banking services by using electronic devices like personal computer, laptop, palmtop, ATM, kiosks etc. 4. Delivery of Goods: 61 CU IDOL SELF LEARNING MATERIAL (SLM)

E-Commerce allows the delivery of products. For example, the computer software is directly downloaded by the software manufacturer on computer of the customer. 5. Import and Export: Electronic payments are playing a great role in import and export business. The internet has simplified the import and export business. By using E-commerce importers can make enquiries about the products, their manufacturers, price, quality, other terms and conditions etc. Exporters can also make enquiries about suitable customers. Payments can be made by electronic modes including digital means like internet payment or internet money transfer. 6. Supply Chain Management: A supply chain is a set of relationships between a number of companies who have a symbiotic relationship with each other in that one company supplies commodities or services to other companies which, in turn, supply commodities or services to other companies, and so on. An important point about an application such as this one is that information should be kept confidential as it flows across the internet. 7. E-Tailing: E-tailing refers to retailing over the internet. Thus an e-tailer is a B2C business that executes a transaction with the final consumer. E-tailers can be pure play businesses like amazon (dot) com or businesses that have evolved from a legacy business, Tesco (dot) com. E-tailing is a subset of e-commerce. 4.4 E-COMMERCE VS E-BUSINESS E-Commerce : E-Commerce refers to the performing online commercial activities, transactions over internet. It includes activities like buying and selling product, making monetary transactions etc. over internet. Internet is used for E-commerce. Websites and applications (apps) are required for e-commerce. It is mainly connected with the end process of flow means connected with the end customer. Examples of E-Commerce are online retailers like amazon, flipkart, Myntra, paytm mall, seller of digital goods like ebooks, online service etc. 62 CU IDOL SELF LEARNING MATERIAL (SLM)

E-Business: E-Business refers to performing all type of business activities through internet. It includes activities like procurement of raw materials/goods, customer education, supply activities buying and selling product, making monetary transactions etc. over internet. Internet, intranet, extranet are used in e-business. Websites, apps, ERP, CRM etc. are required for e- business. Examples of E-Business are e-commerce companies and its various internal business activities, auction site, classified site, software and hardware developer site etc. TABLE 4.1 E-Commerce Vs E-Business S.No. E-COMMERCE E-BUSINESS E-Commerce refers to the E-Business refers to performing all type performing online commercial Of business activities through internet. 01. activities, transactions over internet. E-Commerce is a narrow concept E-Business is a broad concept and it is 02. and it is considered as a subset of considered as a superset of E-Commerce. E-Business. Commercial transactions are Business transactions are carried out in e- 03. business. carried out in e-commerce. In e-commerce transactions are In e-business transactions are not limited. 04. limited. It includes activities like buying It includes activities like procurement of raw 05. and selling product, making materials/goods, customer education, supply activities buying and selling product, making monetary transactions etc. over 63 CU IDOL SELF LEARNING MATERIAL (SLM)

internet. monetary transactions etc. over internet. It usually requires the use of only a It requires the use of multiple websites, 06. website. CRMs, ERPs that connect different business processes. 07. It involves mandatory use of It involves the use of internet, intranet or internet. extranet. E-commerce is more appropriate E-business is more appropriate in Business to 08. in Business to Customer (B2C) Business (B2B) context. context. 09. E-Commerce covers E-Business covers internal as well as external outward/external business process. business process/activities. 4.5 SUMMARY  The main applications of E-Commerce are sharing business information, maintaining business relationships and conducting business transactions using computers connected to telecommunication network is called E-Commerce.  The concept where ICT is used in buying and selling of goods or services between organizations and in Business-to-Consumer (B2C) transactions is known as e-commerce.Corporate strategies are also embedded in the e-business concept and describe how the business concept will be implemented and can be modified in order to enhance business performance.  E-commerce is widely considered the buying and selling of products over the internet. E commerce is thus the paper less exchange using electronic data interchange (EDI). There are 4 main categories of Ecommerce mainly B2B, B2C, C2B and C2C. Web is 64 CU IDOL SELF LEARNING MATERIAL (SLM)

placed for entertainment, we can chat, see movies, play games etc. All these activities are possible with the help of E-commerce.  E-retailing or on-line retailing is the selling of goods from Business-to-Consumer through electronic stores. Customer-to-Customer. E-commerce is direct selling of goods and services among customers. Bidding is a special type of auction that allows prospective buyers to bid for an item. An Internet booking engine (IBE) helps the travel and tourism industry support reservation through the Internet.  E-commerce is widely considered the buying and selling of products over the internet. E commerce is thus the paper less exchange using electronic data interchange (EDI). There are 4 main categories of Ecommerce mainly B2B, B¬2C, C2B and C2C. Web is placed for entertainment, we can chat, see movies, play games etc. All these activities are possible with the help of E-commerce.  E-retailing or on-line retailing is the selling of goods from Business-to-Consumer through electronic stores. Customer-to-Customer. E-commerce is direct selling of goods and services among customers. Bidding is a special type of auction that allows prospective buyers to bid for an item. An Internet booking engine (IBE) helps the travel and tourism industry support reservation through the Internet.  The term e-business came into existence in the year 1996. E-business is an abbreviation for electronic business. Electronic commerce, also termed as e- commerce, is a process of buying and selling of goods or services using electronic systems. The World Wide Web plays a major role in the implementation of e- commerce. The term e-business came into existence in the year 1996.  E-business is an abbreviation for electronic business. This would include buying and selling of goods or services using commercial transactions conducted electronically. It also includes providing customer or technical support with the help of the internet. What is e-business? It is an electronic commerce that connects the buyers and suppliers to the services or products over the internet.  Order Fulfillment Process is based on all the activities needed for a customer to get his ordered product or service. Customers pay using Visa, cheque, ATM, or other available payment methods. What is e-business concept and how is it essential for a successful business? It describes the basic information of the business including goals, vision, products and offers. Every functional website is based on two parts: frontend for dealing directly with customers and backend for automating operations.  Online real estate services are providing by websites that show listing of houses, shops and flats put up for sale and rent. E-Commerce refers to performing online commercial activities, transactions over internet. It includes activities like procurement of raw materials/goods, customer education, supply activities buying and 65 CU IDOL SELF LEARNING MATERIAL (SLM)

selling product, making monetary transactions etc. over the internet. Internet is used for E-commerce. Websites and applications (apps) are required for e-business. 4.6 KEYWORDS  Consumer to business (C2B):In this category the consumer can buy or sell on free classified and auctions. The goods are offered by the consumers and sold by the consumers.  E-Business: Electronic Business (E-Business) is the administration of conducting any business using internet, extranet, web and intranet.  Internet booking engine (IBE):Which is also known as the online booking engine, is simply a new travel technology that focuses on simplifying the process of hotel bookings and reservations for both the customers and hotels.  Enterprise Resource Planning (ERP):Itis software that can combine the facets and processes of a business into one integrated system. With the implementation of ERP software, your e-commerce website is more manageable and easily organized with a streamlined order process.  Customer Relationship Management(CRM):Customer relationship management system designed specifically to help ecommerce businesses manage customer contact information, purchasing behavior, and other analytics data.  Payment Card Industry (PCI):The term PCI Compliance in ecommerce comes from the Payment Card Industry Data Security Standard (PCI DSS) which is a security standard defined by the Payment Card Industry Security Standards Council. 4.7 LEARNING ACTIVITY 1. Define E-Business? ___________________________________________________________________________ ___________________________________________________________________________ 2.Describe shortly about online booking system? ___________________________________________________________________________ ___________________________________________________________________________ 4.8 UNIT END QUESTIONS A. Descriptive Questions 66 CU IDOL SELF LEARNING MATERIAL (SLM)

Short Questions 1. What you mean by E-Business? 2. Explain types of E-Commerce? 3. Short notes common applications of E-Commerce? 4. What is the process of E-Business? 5. Explain the concept of E-Business? Long Questions 1. Explain the Application of E-Commerce? 2. What is the Difference between E-Commerce and E-Business? 3. Describe the E-Business Model? 4. Discuss the components of E-Business? 5. Illustrate the E-Business model for service industry? B. Multiple Choice Questions 1. Most individuals are familiar with which form of e‐commerce. a. B2C b. C2B c. C2C d. B2B 2. Whichformofe‐marketplacebringstogetherbuyersandsellersfromthesameindustry? a. horizontal b. Vertical c. Integrated d. Inclined 3. Whichtypedealswithauction? a. B2B b. B2C c. C2B d. C2C 4. Abusinesscannotbeallthingstoallpeople.Instead,abusinessmust: 67 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Identifytargetcustomers b. Identifythevalueofproducts/servicesasperceivedbycustomers c. servicesasperceivedbycustomers d. Identifytargetcustomers ,Identifythevalueofproducts/servicesasperceivedbycustomers 5. E-commerce has _____ scope than E-Business or Digital Business. a. Higher b. Wider c. Narrower d. More Answers 1-d, 2-b, 3-d, 4-d, 5-c 4.9REFERENCES Reference books • JaiswalS.,E-Commerce • MohammadMahmoudiMaymand,E-Commerce • MurthyC.S.V.,E-Commerce-Concepts,ModelsandStrategies • Schneider, E-Commerce, Cengage Learning, New Delhi. • PeeLosuin&AMurphy,ElectronicCommerceJaicoPub Textbook references • JosephP.T.,E-Commerce–AnIndianPerspective • RaviKalkotaFrontiersofE-Commerce,AddisonWesley • K.Bajaj & D.Nag E-Commerce, The Cutting Edge of Business, Tata McGraw • Green Stein ElectronicCommerceTata McGraw. Website • https://www.cleverism.com/e-commerce-complete-guide • https://www.economicsdiscussion.net/business/e-commerce/31868 68 CU IDOL SELF LEARNING MATERIAL (SLM)

69 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 5: INTERNETMARKETING STRUCTURE 5.0 Learning Objectives 5.1 Introduction 5.2 Components of Internet Marketing 5.3 Pros of online shopping 5.4 Cons of online shopping 5.5 Summary 5.6 Keywords 5.7 Learning Activity 5.8 Unit End Questions 5.9 References 5.0LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe the components of online marketing  Distinction between traditional and online marketing  Details about components of online marketing  Pros and Cons of online shopping 5.1 INTRODUCTION Meaning of Marketing Marketing is carried out with the intent of reaching out to a maximum number of people in exchange of minimum cost. When Internet was still in its formative years, marketing people used to depend on traditional media such as television, radio, handbills, billboards, newspapers, and magazines. Today, the Internet is premium source for promoting your business. There has been a rapid rise in the number of internet users since last few years. Thus Internet is the lucrative place to promote the business. What is marketing? As defined by the American Marketing Association, “marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offers that have value for customers, clients, partners, and society at large”. Marketing changes the perspective of a person. There are two approaches of marketing  Traditional marketing 70 CU IDOL SELF LEARNING MATERIAL (SLM)

 Online marketing What is Internet Marketing? Online marketing is advertising and marketing the products or services of a business over Internet. Online marketing relies upon websites or emails to reach to the users and it is combined with e-commerce to facilitate the business transactions. In online marketing, you can promote the products and services via websites, blogs, email, social media, forums, and mobile Apps.Online marketing is also termed as Internet marketing, Web marketing, or simply, OLM. Difference between Traditional and Online Marketing The goal of traditional marketing and online marketing are same .To attract and drive visitors of advertise to buy the product thereby increasing the business profit. Let us see the difference between two approaches TABLE 5.1 Traditional and Online Marketing Traditional Marketing Online Marketing It is difficult to measure. You cannot know how It is measurable. You can know the many people read your advertise and how many number of people who viewed the online took favorable action upon viewing it. advertise, and the number of ones who purchased the product. It is not cost-effective. It is more cost-effective. It is not so good for brand building. It is fast and efficient for brand building. In some way, it interrupts regular activities of It is not interrupting. The user can attend users such as television advertises interrupt the online advertises as per his/her program you are watching, billboards divert convenience and preferences. focus of the driver, etc. It may leave users’ queries unanswered as It can provide maximum information about printing or narrating complete information the product or service, offers, and about the product or service may not be always transactions. feasible. 71 CU IDOL SELF LEARNING MATERIAL (SLM)

Online marketing is widely practiced strategy of advertising or promoting sales and name of the business. Wise use of the online marketing strategies can take the business to unprecedented levels of success. ImportanceofE-Marketing E-MarketinggivesaccesstothemassmarketatanaffordablepriceandunlikeTVorprint advertising, itallows trulypersonalized marketing. SpecificbenefitsofE-Marketinginclude: Global reach – A website can reach anyone in the world who has internet access. This helps tofind newmarketsand compete globallywithasmallinvestment. Lowercost–Aproperlyplannedandeffectivelytargetedcampaigncanreachtherightcustomers atamuch lower cost thantraditional marketingmethods. Measurable results – marketing by email or banner advertising makes it easier to establisheffectivecampaign.Detailedinformationaboutcustomers’responsestoadvertisingcanbe obtained. Round theClock – With awebsite, customerscan find out about products even if office isclosed. Personalization –Ifthecustomerdatabase islinked tothewebsite,then wheneversomeonevisits the site, you cangreet them with targeted offers. The more they buy, the moreyoucanrefineyourcustomerprofile and market effectively. One-to-one marketing – E-Marketing helps to reach people who want to know about yourproductsandservicesinstantly.Forexample,manypeopletakemobilephonesandPDAswherev er they go. Combine this with the personalized aspect of E-Marketing, very powerful andtargeted campaigns can becreated. Better conversion rate – If there is a website, then ever your customers are only a few clicksaway fromcompleting apurchase. Unlike othermedia which require people to get up and makea phone call, post a letter or go to a shop, E-Marketing is seamless. With all these aspects E-Marketinghas the potential toaddmoresales. Instant information – One of the most important advantages is the speedy availability of theinformation. The clients/users can easily get information by navigating the internet, about theproductsthattheywanttopurchase;besides,they canchecktheinformationatany time. Savings – It allows the companies to save money, since the online marketing campaigns don’trequirealargeamount ofinvestment. Scope for expansion –It helps the expansion of the operations froma local market to nationalandinternationalmarketsatthesametime,offeringalmostinfiniteexpandingpossibilities. 72 CU IDOL SELF LEARNING MATERIAL (SLM)

Feedback – On the internet everything can be measured, thus it’s easier for the companies toknow if their campaign is working or not, which user is interested in their products, from whichplace, etc. DisadvantagesofE-Marketing Complex websites – Slow internet connections can cause difficulties. If the companies buildtoo complex or too large websites, it will take too long for users to check or download them andtheywillget bored eventually. Purchasewithoutinspection–Thee-commercedoesn’tallowtheuser“totouch”themerchandise before purchasing it. Because of this, some salesmen are starting to guarantee thepossibilityof returningthe product. Payment method – Many users still do not trust in the electronic methods of paying andbecause ofthis giveupbuyingonline. Lack of confidence – One of the major disadvantages may be the lack of trust of the usersbecauseoftheconstantvirtualpromotionsthatappeartobefrauds.Thisisanaspectthatdeteriora tes theimageandreputation ofhonest companies. Pros of Online Marketing Online marketing delivers better results and revenues than the traditional marketing channels. Wider reach to the customers. The online business is not confined to the limitations of physical place. You can sell the products in any part of the country without actually opening outlets. Immediate quantifiable results. Online marketing delivers quantifiable results immediately. You can measure every action from clicks, visits, sign-ups, and purchases. Less business overheads. As the business is online, there are fewer overheads to deal with as compared to investing in offline stores. Ability to track customer’s preferences. You can keep a track of the customer’s past purchases and preferences. This is very helpful to personalize the offers for the customer. Customer Relationship. It helps in building strong relationship with customers in real time. You can maintain on-going relationship with customers by sending follow-up emails about offers new products and services. Customers’ Convenience. You can run online business round the clock without having to worry about work timings. On the other hand, the customers also can buy the products of their choice at any time throughout a day, without having to physically visit the shops. Cons of Online Marketing In spite of so many benefits, online marketing carries negative aspects too. 73 CU IDOL SELF LEARNING MATERIAL (SLM)

Internet Fraud. You may experience unethical and fraudulent practices in internet marketing. Fake trademarks and logos can be used unchecked. This may defame your reputation. Ads Placement. It may clutter on a web page and this may turn the customer down. Requires Special Expertise. Along with the fundamental marketing, it needs understanding of search engine technology, advertising techniques, content creation, and logics to master the internet marketing. Inaccessible. It may not be available for rural areas. Also, elderly and illiterates rarely relish the benefits of shopping online. Negative feedbacks about Products. They can turn your business down drastically. Online Marketing - Terminology Here is a list of the standard terms used in the domain of online marketing − Advertiser: It is a person or an organization that places advertisements to drive sale or lead through it. Banner: It is an online advertisement in the form of a graphic image that appears on a web page. Bid: It is the maximum amount an advertiser is ready to pay for a click. 5.2 COMPONENTS OF INTERNET MARKETING Internet MarketingDefinition: Internet Marketing is the process of considering marketing activities and achieving marketingobjectives throughelectronic medium.It may bedefined as aneconomicprocess that involvesthe use of computer, internet and other electronic systems and network, whereby the goods orservices areexchangedandtheir valuesintermsofpriceare determined. CISCO specialists define Internet Marketing as the sum of all activities a business conductsthroughtheinternetwiththepurpose of,attracting,winningandretainingcustomers. Internet Marketing involves the use of online networks, computer communication and digitalinteractive media to the marketing objectives of the organization. It enhances the functions oftraditional form of marketing. Business organizations adopt marketing tactics like e-mail, bannerads, referrals, and video ads to attract and retain customers. For example, naukri.com helps jobaspirants to geta suitableplacement at aneconomiccost. Internet marketingmeansusingdigitaltechnologiestohelpsellgoodsorservices.Thesetechnologiesareaval 74 CU IDOL SELF LEARNING MATERIAL (SLM)

uablecomplementtotraditionalmarketingmethods.Thoughbusinesseswill continue to make use of traditional marketing methods, such as advertising, direct mail andPR,Internet Marketingaddsawholenewelementtothemarketingmix.Manybusinessesareproducing great results with Internet Marketing. Its flexible and cost-effective nature makes it suitablefor small firms too. ObjectivesofInternet Marketing Different businesses may develop different E-Marketing objectives depending on theirindividual circumstances. A useful framework for developing effective E-Marketing objectives isthefive S’s framework,which includes: Sell–usingtheinternettosellproductsandservices Serve–usingtheinternettoservecustomers Speak–usingtheinternettocommunicatewithcustomers Save–usingtheinternettosave/reducecost Sizzle–usingtheinternettobuildbrandidentity WhensettingInternetMarketingobjectives,makesurethattheyare: Specific–specifywhatistobeachieved Measureable– expressedinmeasurabletermssuchaskeyperformanceindicators,outcomes,numbers, percentage, dollars, etc. Action-oriented–statewhichactionsneedtobetakenandwhowilltakethem. Realistic–achievablewiththeresources available TimeBound–establishspecifiedtimeframes. E-Commerce – Major Market Segments: E-commerce is a means of conducting business, where the buying or selling of goods and services or the transmitting of funds or data, occur via electronic medium. There are no physical marketplaces and the entire process of marketing and selling of goods, takes place on-line or electronically. This means, the buyer and the seller do not often meet face to face. It is a replica of a physical marketplace in the virtual world. E-commerce, also called e-trading, operates in all four major market segments – Business to Business, Business to Consumer, Consumer to Consumer and Consumer to Business. Examples of E-commerce include on-line shopping, electronic payments, on- line auctions, internet banking, on-line ticketing etc. 1. E-Tailing: 75 CU IDOL SELF LEARNING MATERIAL (SLM)

E-Tailing is the abbreviation of electronic retailing. It is the sale of goods and services through the internet. E-tailing involves business-to-business or business-to-customers transactions. It can be regarded as the internet front of any traditional retailer. E-tailing shops believe in building strong brands. The web sites they create are easily understood by the visitors. They also provide discounts and offers to engage the customers. The pricing, in E-tailing shops, is generally lower than that of a traditional shop. In this way the e-tailing shops lure the customers to make purchases on-line. The customers also get benefited from the fact that he/she does not need to physically visit the shop for making the purchase. The customers are free to make their own decisions regarding the purchase, at their own leisure time. However, e-tailing shops need to have a strong distribution network in order to secure the delivery of the products. Otherwise, the purpose of the e-tailing site will be defeated. Big e- tailing sites like Ebay (dot) com and Amazon (dot) com are making great business in this country. Advantages of E-Tailing: 1. No requirement of physical infrastructure. 2. Order completion is smoother than that of physical shops. 3. Customers might get addicted to on-line shopping, which in turn boost sales and increase revenue. 4. It is easy to review the product before, actually, purchasing it. 5. Most items available on-line are cheaper with quick and easy shipping and returns. Disadvantages of E-Tailing: 1. Creating and maintaining an e-tailing web site is an expensive process. 2. Customers do not often get to check the actual dimensions of the products and the quality displayed there. 3. Customers may have trust issues before providing their personal details and credit card details. 2. E-Advertising: E-Advertising is the mechanism of promoting products or services on-line. It is the process of 76 CU IDOL SELF LEARNING MATERIAL (SLM)

gaining attention of the customers, through the digital media. The main purpose of e-advertising is to reach out to a wider range of customers. It is more cost effective when compared to the traditional forms of advertising. E-advertising also enables you to target the specific customers. On safeguard to be taken regarding E-advertising is that advertisement had to be consistently monitored and controlled because if it is done poorly, it can severely damage the image of the company. Features: 1. E-advertising will only be published on the internet. 2. Sometimes e-advertising will provide hyperlinks to the company’s web site. 3. Can include image, texts, and even animations within the advertisements. Types of E-Advertising: There are various types of e-advertising: (a) Wallpaper Advertising – It changes the background of the web site to the chosen promotion. (b) Pop Up Advertising – It pops up a new screen upon clicking on a certain link on the web site, that it advertises the product. (c) Floating Advertising – The floating e-advertising is a kind of a floating banner on the web site, which tempts the visitor to click on it. (d) Ad Sense Advertising – This refers to companies’ paying major search engines (such as Google) to promote their business within the first three links that appear when a search is entered. 3. E-Marketing: Electronic marketing (e-marketing) is also known as internet marketing, web marketing and digital marketing on on-line marketing. It is the process of marketing a product or service using the internet, e-mail and wireless media. Unlike e-advertising, e- marketing is very subtle. It is not always a direct message of persuasion but rather it is something which will educate the customers and convince them to buy the product or service. 77 CU IDOL SELF LEARNING MATERIAL (SLM)

Digital marketing techniques include Search Engine Optimization (SEO), Search Engine Marketing (SEM), content marketing, e-commerce marketing, social media marketing, display advertisement, marketing through SMS and on-hold mobile ring tones, etc. When compared to the means of traditional marketing, e-marketing offers several advantages. Advantages of E-Marketing: 1. E-marketing provides much better return on the investment made by the marketer. 2. It reduces the cost of marketing campaign. 3. The marketer can easily monitor and track the results of the campaign. 4. The results are often easily measurable and quickly obtained. 5. E-marketing allows marketers to create viral content, allowing viral marketing. Disadvantages of E-Marketing: 1. Devising a strong online marketing campaign involves spending money, the cost of which is ultimately borne by the customer. The cost of website design, software, hardware, maintenance of website, online distribution cost and invested time, are also factored in, while deciding the cost of providing a service or a product online. 2. Website of the company has to be constantly updated, which required research and skills and thus timing of updates are also critical. 3. Digital marketing is not suitable for marketing of industrial goods and pharmaceutical products making it useful for only specific categories of products, namely consumer goods. Components of InternetMarketing Online marketing has various components as shown in the illustration below 78 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 5.1 Components of Internet Marketing Market Research Business organizations need to set clear objectives and strong market understanding. To research the market, you can 1. Review your website traffic. 2. Review the Ad conversion rates. 3. Review the queries asked by your existing customers. 4. Identify the customers’ pain points that they post on various platforms such as yahoo answers, blogs, social media, and other sites. 5. Anticipate and compile a list of Frequently Asked Questions (FAQs) with their clear answers and align them to customers’ pain points. 6. Include the fact sheet about product if required. Keyword Research Choosing a correct and relevant set of keywords can help design a crisp and persuasive advertise for online marketing. Before accessing any keyword research tool, ask yourself  What is the purpose of this web page?  How clearly can I state the conversion event?  Have I clearly answered all the pain points that users might look for on this page?  Which phrases the users might enter while looking for a solution?  Are my keywords relevant to the users’ intent? SEO Friendly Website Mapping the right keywords around the users’ pain points in a hierarchical manner makes an effective website. You need to categorize the keywords in a thematic order and then link the respective articles to the keywords. This makes the website easy maintain. 79 CU IDOL SELF LEARNING MATERIAL (SLM)

Developing an SEO Friendly Website In order to acquire high rank and make your website search-engine-friendly, you need to follow the given guidelines −  Build a website that search engine can read and understand. Use the technology such as CSS.  Create a sitemap to make search engine help discover every page of the website.  Get links from trusted sources.  Use Accurate keywords to get your page captured.  Add Meta tags and text to your images.  Make sure that your HTML code is error-free.  Check and act upon for broken links. For example, 404 errors.  Remove any hidden text.  Do not plagiarize content from other websites. Keep original content.  Keep the content up-to-date. Web Analytics The ultimate goal of analytics is to identify actionable insights on monthly basis which can help to make favorable changes to the website gradually. This in turn ultimately leads to strong profits in long term. Web Analytics or Online Analytics refers to the analysis of quantifiable and measurable data of your website with the aim of understanding and optimizing the web usage. Web analytics focuses on various issues. For example,  Detailed comparison of visitor data, and Affiliate or referral data.  Website navigation patterns.  The amount of traffic your website received over a specified period of time.  Search engine data. Types of Web Analytics There are two types of web analytics − On-site − It measures the users’ behavior once it is on the website. For example, measurement of your website performance. Off-site − It is the measurement and analysis irrespective of whether you own or maintain a website. For example, measurement of visibility, comments, potential audience, etc. Online Advertising It is placing crisp, simple, and tempting Ads on the websites to attract the viewers’ attention 80 CU IDOL SELF LEARNING MATERIAL (SLM)

and developing viewers’ interest in the product or service. Online advertising is a type of business promotion which uses Internet to deliver marketing messages to attract customers. Online Advertising Performance Measurement His performance metrics of Online Ad are as follows − Clicks − It is the number of times viewer clicks the Ad. It can be taken as viewer’s acknowledgement to your Ad. It suggests that the viewer has seen the Ad and wants further information. Impressions − It is the number of times your Ad is displayed on the web page. Click through Rate (CTR) − It is the ratio of Ad clicks to Ad impressions. The higher the CTR, the more relevant your Ad is. Cost per Click (CPC) − It is the amount advertiser pays for each click on the Ad. The number of clicks determines the amount of payment. The lower CPC is better. Cost per Thousand Impressions or Cost per Mille (CPM) − It is the amount the advertiser pays for thousand clicks. Return on Investment (ROI) − It is (Return – Investment) X 100. The higher ROI is better. Advantages of Online Advertising Online advertising is beneficial over conventional advertising in many ways.  Internet access is easy and affordable. Today, the number of global internet users is almost 3 billion. No other conventional advertising medium can bring such huge audience for your products or services.  Internet is capable of serving multimedia substance such as audio and video content apart from text and graphics. Multimedia advertisements are highly persuasive.  Internet by nature is interactive. It can provide a reliable platform for smooth shopping experience for people. The conversion rate is high for compelling advertises.  No time or demographic constraints on delivering the online advertise.  Online advertising is promotional as well as informational.  It brings speedy outcomes.  It provides effective performance tracking. Mobile Advertising It is creating awareness about the business and promoting it on smart phones that people carry with them inseparably. It is a form of business promotion on Internet-enabled mobile devices such as smartphones, e-books, and tablets to deliver marketing Advertises. 81 CU IDOL SELF LEARNING MATERIAL (SLM)

Objectives of Mobile Advertising  Increasing the brand awareness.  Promoting business with good Ads across all mobile phone models, network technologies, and data bandwidths.  Providing support for specific engagements.  Driving sales of the product or service. Advantages of Mobile Advertising  Mobile advertising comes with the following advantages −  Mobile advertising provides an opportunity to connect with the people on-the-go and at a personal level.  It helps to achieve your objective of winning new customers and earning conversions.  It helps to fulfill your business branding goals.  It can deliver intended impact by posting engaging and interactive Ads on the mobile Internet and Apps. Search Engine Optimization (SEO) It is the activity of optimizing web pages or complete website in order to make them search engine friendly, thus getting higher position in the search results. It contributes to overall rankings of the keywords through influencing factors such as appropriate titles, Meta descriptions, website speed, links, etc. Search Engine Marketing (SEM) is the process of gaining market online by purchasing Ads on search engines, say Google, Yahoo, or Bing. SEM involves the promotion of websites by increasing their visibility in Search Engine Result Page (SERP). The search engines use algorithms to provide the most relevant results to every user. For producing best suggestions to the users’ queries, they consider not only the search keywords entered by users but also users’ location, type of device and operating system they are working on, users’ preferences, and their identities. The better the search algorithm is, the happier the user is with its results. Search Marketing Approaches Search marketing works with two approaches −  Earning traffic through unpaid or free search listings (SEO Methods)  Buying traffic through paid search listings (PPC Ads) Steps Involved in Search Engine Marketing These are the general steps involved in search engine marketing − 82 CU IDOL SELF LEARNING MATERIAL (SLM)

Step 1 − Define Effective Strategy  Define your target audience.  Identify their needs and motivations.  Highlight how your product is best to serve their needs.  Review your business position in the marketplace.  Identify your competitors.  Identify your specific goals and benchmarks, such as search ranking, sales, website traffic, and other ROI metrics. Step 2 − Choose Right Keywords  Select most important phrases relevant to your business.  Also select the phrases that are frequently searched by your target customers.  Conduct brainstorm sessions for potential terms your customers use when thinking about your products and capabilities.  Interact with your sales and customer service teams, and best customers to know the frequently used phrases.  Employ a keyword research tools to compile a list of highly searched terms. Step 3 − Optimize Your Website Content  Focus on your website structure.  Keep it simple.  The search engines looks for the underlying code of your website when they visit your website.  Create crisp, clear, and correct content that can retain users’ attention.  Use your keyword phrases relevantly in pages title tags, heading tags, directory names, file names, alt tags and Meta tags.  Pay attention to Meta description. It is shown in the search results below your link, providing a great opportunity for you to bring visitors to your Website. Step 4 − Submit Your Website for Indexing To be visible online to the customers, ensure that all the pages of your website are completely indexed by the search engines such as Google, Yahoo, and Bing. For speedy process of getting indexed by the other engines, submit your website to the DMOZ.org, an Open Directory Project. Once DMOZ accepts your website, Yahoo and other search engines have no problem indexing your website. Step 5 − Add Quality Links to Your Website 83 CU IDOL SELF LEARNING MATERIAL (SLM)

 Build links to your website from valued links of other websites that are frequented by your targeted visitors.  The more quality inbound links you have, the more popular your website is with Google and other engines.  Make your website content is link-worthy. Create interesting and informative content on your website such as a library of best practices articles, blog trends in your industry, etc.  You can also garner links from vendors, customers, business partners, and trade associations.  Distribute press releases and articles online. Step 6 − Manage Paid Search Advertise  Bid on the most relevant keywords. Do not pick them based on only popularity.  Make sure your product offer is interesting to the potential customer.  Tie the bidding strategy to business results. In many cases a lower Ad position will produce a higher ROI.  Finally, include a compelling ‘call to action’ in the Ad and send traffic to a relevant landing page tied to the Ad. Step 7 − Measure Success of Advertise  Check how well you performed in the past.  Measure CPC, CPR, Clicks, Bounce rate, Impressions, ROI, etc.  Employ Web Analytics to monitor progress and problems.  Monitor your position regularly in the search results.  Identify problems and plan strategies to improve your results in the future. Social Media Marketing It includes creating profiles of your brand on social media platforms such as Google Plus, LinkedIn, Pinterest, Twitter, Facebook, etc. It assures that you remain connected to the existing or potential customers, build awareness about the products and services, create interest in and desire to buy your product, and interact with the customers on their own terms and convenience. Social media offers a great opportunity to discover new information, connect and interact with others, and share their perspectives. The inseparable presence of social media in the daily lives provides a great boost to market the business. Social media marketing is a sound way to gain the website traffic via social channels such as Facebook, Twitter, Pinterest, etc. 84 CU IDOL SELF LEARNING MATERIAL (SLM)

The content posted on these channels captivates people to go through it, thus advertising your business. Social media marketing helps you build quality links, thus supporting your SEO efforts. Importance of Social Media Social media is important for the following reasons −  The content on social media has the tendency to reach infinite people.  It incurs huge web traffic.  It brings leads and conversions.  It builds business branding.  It elevates customer-vendor relationship.  It communicates fast with large audience.  Using Different Social media Platforms Social media platforms vary by different factors. Over 50% of social media users use platforms and they do so for different interest. Different platforms serve different purpose. You may not have ample time to spend on every platform daily but you may use maximum of every single one. 1. Facebook Facebook is the largest social networking site these days. This makes it prominent business gainer. You can post images, videos, and anything related to your industry. Simultaneously, you may indulge in conversation with your audience by posting and commenting. To make maximum use of Facebook, you can create a Facebook business page in an appealing layout. Make efforts to attract people to like and share it. You can post what you have to offer on the page. Include visuals for better results. 2. Google+ Google+ lets you upload and share visuals. Take advantage of +1 and Google+ circles. This lets you segment the customers accordingly and refrain those who may not be useful to your business. Follow others to learn the contemporary trends. 3. Pinterest Pinterest is an emerging social media platform that allows you to showcase what you have to offer. You can create pinboards for your products and services and invite others to follow you. The pins on pinboards include link to your website. Post attractive images of your products with specification and let people follow you freely. 4. Twitter 85 CU IDOL SELF LEARNING MATERIAL (SLM)

It lets you broadcast any update on internet. Follow people or companies related to your business and gain followers in return. Use hashtag to capture audience who are not your followers. Tweet with an embedded link of your site to get traffic onto it. 5. LinkedIn It is the largest professional social marketing site to let you contact the other professionals related to your field. You can hire or get hired on LinkedIn. You can explore all categories and follow people. Invite others to see what they are up to. You can build a strong business profile to shine on it. You can encourage customers for recommendation. It makes you appear more credible and trustworthy. 6. Instagram Instagram has devoted users. It lets you share pictures and videos with family and friends. It makes your business look interesting and innovative. On Instagram, you can post your content in the form of images. 7. YouTube YouTube is a video sharing website. You can upload and view a video. You can also comment on it. YouTube can help you immensely in building brand awareness in a quick span of time. Email Marketing E-Mail marketing is promoting your business by sending overt E-Mails and newsletters. It uses promotional letter clubbed with product and service details to deliver the business message to audience. It is cost effective method to convey your message to highly targeted visitors. Results of E-Mail marketing are quantifiable and measurable.You can interact with the customers to answer their queries using automaticresponders and enhance the customer experience with your website. You can offer the options such as signing-in to subscribe to your newsletter. You can make the emails catchy and crisp, so that they don’t make recipients annoyed. Also, you can use selected best words in the subject line to boost the open rate. E-Mail marketing is promoting your business by sending overt E-Mails and newsletters. It uses promotional letter clubbed with product and service details to deliver the business message to audience. It is cost effective method to convey your message to highly targeted visitors. Results of E-Mail marketing are quantifiable and measureable. Types of E-Mails There are following types of Emails used for E-Mail marketing Transaction E-Mails You get these mails after you are done with any transaction such as buying a product. They 86 CU IDOL SELF LEARNING MATERIAL (SLM)

confirm the business transaction with information such as cost per unit, number of units bought, total cost, mode of payment, shipping details, delivery time, etc. Newsletters They include information to keep customers involved. They foster relationship with customer. Promotion E-Mails They carry details of any promotional activity such as sale, new offers, etc.-Mail marketing being cost-efficient and measurable, needs strategic planning and creative execution of campaign. You need to personalize message, deploy it, and analyze the results. Content Marketing Content marketing refers to the approach of creating and sharing of informative, relevant, valuable, and consistent content to convert a group of audience into customers and retain them. Content marketing is non-interruptive way of marketing.It includes creation and sharing of media and publishing the content in order to acquire and retain customers. Goals of Content Marketing The goals of content marketing are as follows Brand Awareness − It marks the presence of your brand. Sale − It boosts lead generation at quicker pace. Customer-Vendor Relationship Building − It helps in creating engagement between buyer and the company. Customer Retention − Pleasing content attracts customers and helps one in retaining him. Types of Content marketing News: They contain news about new product release, updates on products, etc. For example, news of releasing new mobile handset on website of NDTV gadgets. Webpages: SEO webpages can hold the content in the best possible way and sell the content. Videos: They say, video is the second best thing to pursue a viewer in person. Creating crisp and compact videos can bring good market at doorstep. Promote your business videos across multiple channels, and ensure that your videos are optimized for mobile viewing, as an increasing number of users view them from their mobile devices. Info graphics: These are long, vertical graphics or columns that include graphs, charts, statistics, and other information. Info graphics makes use of the fact that 90% information transmitted to human brain is visual, which makes people perceive it faster than text. Podcasts: They are digital files available in the form of episodes, which can be downloaded 87 CU IDOL SELF LEARNING MATERIAL (SLM)

on the PC. They can come in various formats such as audio, video, e-Pub, and pdf. It allows people to subscribe and it can prove as a powerful medium to communicate a range of ideas, products, and information to audience. The businesses engaged in podcasting are − IBM, Oracle, Yarn Craft, etc. Blogs: Business blogs deliver excellent content marketing. Blogs are required for a business to survive in the race of content marketing. Case Studies: Case studies are detailed studies pertaining to a particular problem, action, individual, organization, event, or action, existing at a specific place at a given time. They encourage content marketing to build trust in the product and in turn business. Photographs: A picture speaks a thousand words. Pleasant and relevant pictures can stand as a good content for content marketing and boosts the business. Blogs: Blogs are web pages created by an individual or a group of individuals. They are updated on a regular basis. You can write blogs for business promotion.A blog for marketing your products and services can give your business an identity and a voice to gain visibility on the Internet. Blogs being interactive, the others can share their opinions on the blogs. By authoring a blog, your business can get an expert position in the industry. In today’s world on online marketing, blogs contribute a huge share. Dos and Don'ts of Blogs  Use simple language. Write clearly.  Use relevant images.  If you use quotes or extracts written by someone, give them due credit.  Do not use bad language.  Do not write to hurt people belonging to any ethnicity, race, color, gender, etc.  Do not use copyrighted content.  Do not plagiarize content.  Do not hesitate to open your blog to access others’ comments on your blog. Banners Banners are long strips of cloth with a slogan or design. They are carried for demonstration, procession, or hung in a public place. There are internet banners in parallel to tangible banners for advertising. Online banners are nothing but small stripes of graphics containing links which take the visitor to explore information about offers, product releases, etc. Banners can appear on website, mobile Apps, blogs, or forums. You can use the following banners to attract and retain user’s attention to your website − 88 CU IDOL SELF LEARNING MATERIAL (SLM)

 Static − they display still text/images that are hyperlinked to your website.  Animated − they play GIFs or Flash files.  Interactive − they involve user interaction. For example, interactive map.  Expanding − they expand in in terms of display size and information when users hover the mouse pointer on them. Internet Forums They are nothing but message boards of online discussion websites, where people posts messages and engage into conversation. They are the message boards where people can put their viewpoints, opinions, ideas, etc. Like-minded people can form communities to improve their online presence, and share their knowledge, experiences, tips, and tricks. Similarly, people can discuss and recommend products on forums. For example, the Internet marketing forum named Webmaster Sun, affiliate marketing forum Wicked Fire, etc. 5.3 PROS OF ONLINE SHOPPING Pros of Online Shopping 1. Convenience. Convenience is the biggest perk. Where else can you comfortably shop at midnight while in your pajamas?There are no lines to wait in or cashiers to track down to help you with your purchases and you can do your shopping in minutes. Online shops give us the opportunity to shop 24/7, and also reward us with a ‘no pollution’ shopping experience. There is no better place to buy informational products like e-books, which are available to you instantly, as soon as the payment goes through. Downloadable items purchased online eliminate the need for any kind of physical material at all, as well, which helps the environment. 2. Better prices. Cheap deals and better prices are available online, because products come to you direct from the manufacturer or seller without involving middlemen. Plus, it's easier to compare prices and find a better deal. Many online sites offer discount coupons and rebates, as well. Not only are prices better, but you can save on tax as well, since online shops are only required to collect a sales tax if they have a physical location in your state. Factor in the saved expense of gas and parking and you have saved yourself a lot of money. 3. More variety. The choices online are amazing. You can find almost any brand or item you're looking for. You can get in on the latest international trends without spending money on airfare. You can 89 CU IDOL SELF LEARNING MATERIAL (SLM)

shop from retailers in other parts of the state, country, or even world instead of being limited to your own geography. A far greater selection of colors and sizes than you will find locally are at your disposal. Plus, the stock is much more plentiful, so you'll always be able to find your size and color. Some online shops even accept orders for out-of-stock items and ship when they come in. 4. You can send gifts more easily. Sending gifts to relatives and friends is easy, no matter where they are. All the packaging and shipping is done for you. Oftentimes, they'll even gift wrap it for you! Now, there is no need to make distance an excuse for not sending a gift on occasions like birthdays, weddings, anniversaries, Valentine's Day, Mother's Day, Father's Day, and so forth. 5. More control. Many times, when we opt for conventional shopping, we tend to spend a lot more than planned and end up buying items that aren't exactly what we wanted (but we can't find anything better in the store). Online, you don't have to let the store's inventory dictate what you buy, and you can get exactly what you want and need. 6. Easy price comparisons. Comparing and researching products and their prices is so much easier online. If you're shopping for appliances, for example, you can find consumer reviews and product comparisons for all the options on the market, with links to the best prices. We can research firsthand experience, ratings, and reviews for most products and retailers. 7. No crowds. If you are like me, you hate crowds when you're shopping. Especially during holidays, festivals, or on weekends, they can be such a huge headache. Also, being crushed in the crowds of shoppers sometimes makes us feel rushed or hurried. You don't have to battle for a parking place. All of these problems can be avoided when you shop online. 8. No pressure. Oftentimes when we're out shopping, we end up buying things that we don't really need, all because shopkeepers pressure us or use their selling skills to compel us to make these purchases. 9. You can buy used or damaged items at lower prices. The marketplace on the Internet gives us access to listings of old or damaged items at rock bottom prices. Also, if we want to buy antiques, there's no better place to find great ones. 10. Discreet purchases are easier. Some things are better done in the privacy of your home. Online shops are best for discreet 90 CU IDOL SELF LEARNING MATERIAL (SLM)

purchases for things like adult toys, sexy lingerie, and so on. This enables me to purchase undergarments and lingerie without embarrassment or any paranoia that there are people watching or judging me. Additional Benefits of Online Shopping  You get an electronic record of the receipt of your purchase, which makes record- keeping much easier.  You get to try things on in the comfort of your own home.  Sometimes, returns are easy.  It saves time. 5.4 CONS OF ONLINE SHOPPING Cons of Online Shopping Negative environmental impact of packaging and gas. Having your purchase packed in several layers of plastic and cardboard packaging and delivered right to your front door is good for you, but not so great for the environment. Even if you try to recycle the cardboard, you're creating unnecessary waste by shopping online. Shipping problems and delays. Even the biggest and best shipping companies and online retailers have their bad days, so there's no way to ensure that you'll get your hands on your purchase in time unless you pick it up from a store. Items get lost, detoured, damaged, or delivered to the wrong address more often than you can imagine. Risk of fraud. If you're shopping online, there's a larger risk of fraud: credit card scams, phishing, hacking, identity theft, counterfeit products, bogus websites, and other scams are common. Spending too much time online. Especially if your job requires that you look at a computer all day, you might get burnt out on all that screen time. Shopping online can turn into a marathon of scrolling and clicking down rabbit holes and before you know it, you've been online for most of the day. The internet is a nice place to visit, but you probably don't want to live there. Less contact with the community. If you do all your business online, you'll never have to leave your home. This might be great for a while but sometimes, you might want to go outside, breathe some fresh air, get a change of scenery, talk to real people, participate in your community, and just be a part of the crowd. Sometimes, a computer monitor can't compete with a real human connection. 91 CU IDOL SELF LEARNING MATERIAL (SLM)

You don't know exactly what you're getting. Unless you are intimately familiar with a brand or product, buying online requires a leap of faith. One that doesn't always end in your favor. Sizes are often imprecise. You can't determine texture, fabric, fit, cut, quality, heft, or durability just by looking at a photo. Products that looked great might feel chintzy, awkward, or cheap when you hold them in your hands. Returns can be complicated. Some sellers make the process breezy, but many make it extra hard for you to return their merchandise or get a refund. Many times, you can't get reimbursed for any shipping costs. Labeling, packaging, shipping, tracking, and filling out all the proper forms is a hassle you can avoid if you buy in person (and if you hand-select your merchandise, you won't need to return things so often). Unfriendly, scam my, or complicated websites. Some sites require that you join their mailing list and make it impossible to unsubscribe. Some sell your email address to others, so your email is full of ads. Sometimes, sites don't offer good or accurate descriptions of the goods, or you just can't figure out how to purchase or return an item or speak to customer service. No sales assistance. In a store, there's usually someone to help you but online, you're on your own. If you're confused or have questions, it's just too bad for you. You might have to make blind purchases and mistakes you'll regret later because there was no one to talk to. No support for local retailers. If everyone started doing all their shopping online, all the local stores would go out of business. When all the stores in town are gone, we'll have to drive further and further away to shop at a real store. Many people and places have already experienced the negative and sometimes devastating impacts of e-commerce which take away jobs and devastate local economies. 5.5 SUMMARY  Marketing is carried out with the intent of reaching out to a maximum number of people in exchange of minimum cost.  When Internet was still in its formative years, marketing people used to depend on traditional media such as television, radio, handbills, billboards, newspapers, and magazines. Today, the Internet is premium source for promoting your business.  There has been a rapid rise in the number of internet users since last few years. Thus, Internet is the lucrative place to promote the business.. 92 CU IDOL SELF LEARNING MATERIAL (SLM)

 We tend to spend a lot more than planned and end up buying items that aren't exactly what we wanted (but we can't find anything better in the store).  Marketing is carried out with the intent of reaching out to a maximum number of people in exchange of minimum cost. There are two approaches of marketing - Traditional and Online Marketing. The goal of both are the same - to attract and drive visitors of advertise to buy the product. Online marketing is widely practiced strategy of advertising or promoting sales. Wise use of the online marketing strategies can take the business to unprecedented levels.  Electronic marketing (e-marketing) is also known as internet marketing, web marketing and digital marketing on on-line marketing. It is the process of marketing a product or service using the internet, e-mail and wireless media. The main purpose of e-advertising is to reach out to a wider range of customers. When compared to the means of traditional marketing, e-marketing offers several advantages over traditional advertising. Digital marketing is not suitable for marketing of industrial goods and pharmaceutical products making it useful for only specific categories of products, namely consumer goods.  The cost of developing a strong online marketing campaign involves spending money, the cost of which is ultimately borne by the customer. The ultimate goal of analytics is to identify actionable insights on monthly basis which can help to make favorable changes to the website gradually. Web Analytics or Online Analytics refers to the analysis of quantifiable and measurable data of your website with the aim of understanding and optimizing the web usage. Cost per Click (CPC) is the amount advertiser pays for each click on the Ad. The lower CPC is better.  Return on Investment (ROI) is (Return – Investment) X 100. Mobile Advertising is creating awareness about the business and promoting it on smart phones. Mobile advertising provides an opportunity to connect with the people on-the-go and at a personal level. Search Engine Marketing (SEM) is the process of gaining market online by purchasing Ads on search engines. SEM involves the promotion of websites by increasing their visibility in Search Engine Result Page (SERP). 5.6 KEYWORDS  OLM: Online marketing is the practice of leveraging web-based channels to spread a message about a company's brand, products, or services to its potential customers. The methods and techniques used for online marketing include email, social media, display advertising, search engine optimization, Google Ad Words and more.  FAQ: Anticipate and compile a list of Frequently Asked Questions (FAQs) with their clear answers and align them to customers’ pain points. 93 CU IDOL SELF LEARNING MATERIAL (SLM)

 Click through Rate (CTR): It is the ratio of Ad clicks to Ad impressions. The higher the CTR, the more relevant your Ad is.  Cost per Click (CPC): It is the amount advertiser pays for each click on the Ad. The number of clicks determines the amount of payment. The lower CPC is better.  Cost per Thousand Impressions or Cost per Mille (CPM): It is the amount the advertiser pays for thousand clicks.  Return on Investment (ROI): It is (Return – Investment) X 100. The higher ROI is better.  Search Engine Marketing (SEM):It is the process of gaining market online by purchasing Ads on search engines, say Google, Yahoo, or Bing.  Email Marketing: E-Mail marketing is promoting your business by sending overt E- Mails and newsletters. It uses promotional letter clubbed with product and service details to deliver the business message to audience. 5.7 LEARNING ACTIVITY 1. What is Online Marketing? ___________________________________________________________________________ ___________________________________________________________________________ 2. Explain about market Research for ecommerce? ___________________________________________________________________________ ___________________________________________________________________________ 5.8 UNIT END QUESTIONS A. Descriptive Questions 94 Short Questions 1. Write a Short note on marketing? 2. State the any five merits of online shopping? 3. Discuss the traditional marketing? 4. Short note on E-mail marketing? 5. What you mean by content marketing? Long Questions 1. Explain the Difference between Traditional Vs. Online Marketing? 2. Elaborates details about components of online marketing. 3. Explain the Advantages of online marketing? 4. State the Demerits of online marketing? 5. Share your opinion about online shopping? CU IDOL SELF LEARNING MATERIAL (SLM)

B. Multiple Choice Questions 1. Which of the following is incorrect about digital marketing? a. Digital marketing cannot be done offline. b. Digital marketing requires electronic devices for promoting goods and services. c. In general, digital marketing can be understood as online marketing, web marketing, and e-mail marketing. d. Digital marketing can only be done offline 2. Which of the following doesn't define the correct roles and responsibilities of content marketing strategy? a. A marketing strategy approach. b. Yet another name of social media marketing. c. A technique more focused on creating and distributing valuable as well as relevant content to its users/audiences. d. Digital marketing can only be done offline 3. InwhichwebsiteGlobalEasyBuyisfacilitated? a. Ebay.com b. Amazon.com c. Yepme.com d. Noneofthese 4. All of the following are techniques B2C e‐commerce companies use to attract customers,except: a. Registeringwithsearchengines b. Viralmarketing c. Onlineads d. Virtualmarketing 5. What is the correct abbreviation of SERP? a. System Engine Random Page b. Search Estimate Result Page c. System Estimate Random Page d. Search Engine Result Page Answers 95 1-a, 2-b, 3-a, 4-d, 5-d CU IDOL SELF LEARNING MATERIAL (SLM)

5.9REFERENCES Reference books • JaiswalS.,E-Commerce • MohammadMahmoudiMaymand,E-Commerce • MurthyC.S.V.,E-Commerce-Concepts,ModelsandStrategies • Schneider, E-Commerce, Cengage Learning, New Delhi. • PeeLosuin&AMurphy,ElectronicCommerceJaicoPub Textbook references • JosephP.T.,E-Commerce–AnIndianPerspective • RaviKalkotaFrontiersofE-Commerce,AddisonWesley • K.Bajaj & D.Nag E-Commerce, The Cutting Edge of Business, Tata McGraw • Green Stein ElectronicCommerceTata McGraw. Website • https://www.cleverism.com/e-commerce-complete-guide • https://www.economicsdiscussion.net/business/e-commerce/31868 96 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 6: INTERNETBUSINESS STRUCTURE 6.0 Learning Objectives 6.1 Introduction 6.2 Types of internet business models 6.3 Internet marketing 6.4 Techniques of internet marketing 6.5 Summary 6.6 Keywords 6.7 Learning Activity 6.8 Unit End Questions 6.9 References 6.0LEARNING OBJECTIVES After studying this unit, you will be able to:  Know the features of internet business  Describe the E-business model  State the advantages and disadvantages Internet business  Point out the internet marketingtechniques 6.1 INTRODUCTION E-business or Online business means business transactions that take place online with the help of the internet. The term e-business came into existence in the year 1996. E-business is an abbreviation for electronic business. So the buyer and the seller don’t meet personally. In today’s world, we are exposed to various forms of e-Business. Since its emergence, it has grown by leaps and bounds. Some predict that it may very soon overtake brick and mortar stores completely. While that remains to be seen, we cannot ignore the immense role it plays in the current global economy. What is internet business? Internet businesses are businesses that mainly operate on the internet. This type of businesses doesn’t need to have production plants, offices, stores. Everything from the beginning to the end of the process is performed on the computers and a connection to the internet. To say that one business is an internet business that business must primarily to operate on the internet. Here, the most important part is the market. This market must be on 97 CU IDOL SELF LEARNING MATERIAL (SLM)

the internet. For example, for a business that sells through E-bay, the market and the target market is on the internet. On the other side, some components of that business are off-line as supply of the products, packaging, posting, sending. All of these activities aren’t essential business activities, and because of that this business is internet business. Internet business also can be some combination of internet and traditional businesses. Another thing that you must know is that having a website development doesn’t mean automatically you have an internet business. If you want to have such business, you must add the process of monetization to your web site. This means that you must sell something on your website (advertising, products…). Features of Online Business Some of the features of Online Business are as follows:  It is easy to set up  There are no geographical boundaries  Much cheaper than traditional business  There are flexible business hours  Marketing strategies cost less  Online business receive subsidies from the government  There are a few security and integrity issues  There is no personal touch  Buyer and seller don’t meet  Delivery of products takes time  There is a transaction risk  Anyone can buy anything from anywhere at anytime  The transaction risk is higher than traditional business 6.2 TYPES OF INTERNET BUSINESS MODELS Business-to-Business (B2B) Transactions that take place between two organizations come under Business to business. Producers and traditional commerce wholesalers typically operate with this type of electronic commerce. Also it greatly improves the efficiency of companies. Business-to-Consumer (B2C) When a consumer buys products from a seller then it is business to consumer transaction. People shopping from Flipkart, Amazon, etc. is an example of business to consumer 98 CU IDOL SELF LEARNING MATERIAL (SLM)

transaction. In such a transaction the final consumer himself is directly buying from the seller. Consumer-to-Consumer (C2C) A consumer selling product or service to another consumer is a consumer to consumer transaction. For example, people put up ads on OLX of the products that they want to sell. C2C type of transactions generally occurs for second-hand products. The website is only the facilitator not the provider of the goods or the service. Consumer-to-Business (C2B) In C2B there is a complete reversal of the traditional sense of exchanging goods. This type of e-commerce is very common in crowdsourcing based projects. A large number of individuals make their services or products available for purchase for companies seeking precisely these types of services or products. Consumer-to-Administration (C2A) The Consumer-to-Administration model encompasses all electronic transactions conducted between individuals and public administration. Some examples of applications include  Education – disseminating information, distance learning, etc.  Social Security – through the distribution of information, making payments, etc.  Taxes – filing tax returns, payments, etc.  Health – appointments, information about illnesses, and payment of health services, etc. Business-to-Administration (B2A) This part of e-commerce encompasses all transactions conducted online by companies and public administration or the government and its varies agencies. Also, these types of services have increased considerably in recent years with investments made in e-government. Advantages of Internet Businesses  Easy startup. This type of a business is the easiest way to start your own business. This is one of the biggest advantages of internet businesses. You can start such a business in less than a day. You can also transform your hobby to one very profitable internet business.  There is no need for big financial investment for startup. For the startup stage of an internet business, you will need only 400-500$. Other than the cost of a domain name and web hosting, running an internet business is essentially free and depend on your expertise. I want to note that this is only for the startup to make a structure with 99 CU IDOL SELF LEARNING MATERIAL (SLM)

the technology but required finances will depend on the type of the business you are starting. Having everything in mind, still internet business is cheaper than most other type of businesses.  You don’t must have a product to start an internet business. Yes, starting this type of a business doesn’t require products. You can sell products of other internet businesses, or you can sell advertising on your web site.  Automatically globalization of your business. Yes, when you do business on the internet, you can do business in any country in the world. One of the biggest benefits of an internet business is the global marketplace you will have access to.  The knowledge you will need for an internet business  You must be aware that internet businesses will also require some type of knowledge from your side as an investment. I want to note three most important types of knowledge that you will need if you want to start such a business:  Technology: For the purpose of internet businesses, technology knowledge is the most important knowledge that you will need. You will need to develop and maintain a website, use different online tools and web platforms.  Internet marketing. Marketing for internet businesses is completely different from traditional marketing for offline businesses.  Knowledge related to business that you will do. As all business types, internet businesses also need some type of knowledge that will be connected to the type of business that you will do on the market.  Systems thinking. This is important knowledge because you must understand the whole system of your internet business that will be composed of different business elements. Limitations of Internet-Business E-business does have certain disadvantages when compared to the traditional way of doing business. Some of the limitations of e-business are as follows: Lack of Personal Touch: E-business lacks the personal touch. One cannot touch or feel the product. So it is difficult for the consumers to check the quality of a product. Also, the human touch is missing as well. In the traditional model, we have contact with the salesperson. This lends it a touch of humanity and credibility. It also builds trust with the customer. An e- Business model will always miss out on such attributes. Delivery Time: The delivery of the products takes time. In traditional business, you get the 100 CU IDOL SELF LEARNING MATERIAL (SLM)