1. Objectives Unit 1 Business skills for e-commerce
HND in Computing and Systems Development

2. Timeline Week Activity 1 Introduction & Businesses 10 Assignment 2 LO2
LO1 Stakeholders 11
LO3 Key processes 3
LO1 Functions 12
LO3 e-commerce 4 13
LO3 Security - 1 5
LO2 Impacts 14
LO3 Security - 2 6
Assignment 1 LO1 15
LO3 Legislation 7
LO3Target markets 16
Assignment 3 LO3 issued 8
LO3 Objectives 17
Assignment work 9
LO3 Market research 18

3. LO3: Be able to design e-Commerce solutions
Objectives: business idea eg unique selling proposition, business-to-business opportunities, business to consumer markets; domain name
Market research: purpose of research eg identifying information sources, online and offline competition; types of research eg primary, secondary
Target markets: market analysis eg size, characteristics, dynamics, competitors, historical background, emerging trends, market share, market segmentation
Key processes: technology requirements eg hardware, software, security, maintenance, back end systems; supply sources; distribution channels
e-Commerce: payment systems eg electronic cheque, PayPal, NoChex, credit or debit cards; start-up capital; working capital; funding sources
Security: key areas eg prevention of hacking, viruses, identity theft, firewall, impact on site performance, Secure Sockets Layer (SSL), Secure HTTP (HTTPS), digital certificates, strong passwords, alternative authentication methods
Legislation: relevant legislation eg Data Protection Act 1998, Computer Misuse Act 1990, Consumer Credit Act 1974, Trading Standards, Freedom of Information Act 2000, copyright legislation

4. Market Research Learning outcome Purpose of research Types of research
identifying information sources
online and offline competition
Types of research
primary
secondary

5. Why do market research?
It is crucial to understand if there is a demand for your product before investing in producing it
Market segmentation (identifying specific groups within a market) and product differentiation (creating an identity for a product or service that separates it from those of the competitors) are impossible to develop without market research.

6. What is market research?
The process of gathering, analysing and interpreting information about
a market
a product or service to be offered for sale in that market
the past, present and potential customers for the product or service
Research into
the characteristics of the market
spending habits of the market
location and needs of the target market,
the industry as a whole
the competition

7. Types of research Primary Secondary
Research you do yourself or hire someone to do it for you
Secondary
Already compiled and organised for you

8. Primary research Exploratory research
open-ended
helps you define a specific problem
involves detailed, unstructured interviews
a small group of respondents.
Specific research (more expensive)
precise in scope
solves problems that exploratory research has identified
interviews are structured and formal in approach

9. Primary research methods
Direct mail (3% average return rate)
Questions that are short and to the point
Addressed to specific individuals and of interest
No more than two pages with a cover letter
Paid, self-addressed envelope for return
An incentive, such as "10 percent off your next purchase," to complete the questionnaire

10. What are the questions? Buying Pattern Questions
Do you ever purchase _______?
Who in your household makes the buying decision?
Where do you go when you are looking for _______?
How often do you purchase _______?
How long does it take you to make a buying decision? 
What is your typical budget for _______? 
How far would you travel to make the purchase?

11. What are the questions? Benefits Questions
What features do you look for when you purchase _______?
What specific benefits do you look for in _______?
What problems motivate you to purchase _______?
What needs are you trying to meet when you purchase _______?
How do you hope _______will make your life better? 

12. What are the questions? Demographic Questions (normally last) Age
Gender
Household size
Household income
Profession
Education level
Where do you live

13. Primary research methods
Phone ( can do 4 or 5 per hour)
Have a script and memorise it
Confirm the name of the respondent at the beginning of the conversation
Avoid pauses because respondent interest can quickly drop.
Ask if a follow-up call is possible in case you require additional information.

14. Primary research methods
group interviews or focus groups get information on
product ideas
buying preferences
purchasing decisions
one-on-one interviews
focused interviews are based on questions selected ahead of time
nondirective interviews encourage respondents to address certain topics with minimal questioning

15. Web primary research Key word tools
tell you what keywords people are searching on
can indicate market niches
eg “laptops” gets very many searches, indicates high degree of competition
kune kune pig cages gets very few searches
Can indicate size of karket and competiton
Tools require payment (Google Adwords) or registration for free limited results

16. Web primary research Other sources
Start typing in search bar and see what autocomplete suggests
Kune kune pigs /for sale/ care/ etc
Enter the search terms and count results
“Kune kune pig cages” - 0 results
Conclusion
Little competition, but maybe no demand

17. On line surveys Free or paid tools – SurveyMonkey
15+ Question Types
Custom logo & branding
Page, Question & Skip Logic
Mobile app
Surveys you can send out via mobile, web, social media
20-50% response rate (for recent customers)

18. SurveyMonkey templates
What is your reaction to this new product idea? 1-5 Very positive to very negative
How well, if at all, does the word “INNOVATIVE” describe this new product? 1-5 Extremely well to not very well at all
How well, if at all, does the word “WELL-MADE” describe this new product? 1-5 Extremely well to not very well at all

19. SurveyMonkey templates
How often, if ever, do you currently use other, similar products?
If this product were available today, how likely would you be to buy this product?
How likely is it that you would recommend our new product to a friend or colleague?
When you think about this new product, do you think of it as something people might NEED or as something people might WANT?

20. SurveyMonkey templates
When you’re considering new products in this area, what are the top two things you generally consider? Price, brand, innovation, quality, value, other (please specify)
In your own words, what are the things that you like most about this new product?
In your own words, what are the things that you would most like to improve in this new product?

21. Activity
Create a paper market research questionnaire for the MWS product
Get a colleague to complete it for you
Do online research to establish the likely size of demand and competition for the MWS product
Both tasks are relevant to assignment 3