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. Objectives Learning outcome business idea eg:
business-to-business opportunities
business to consumer markets
domain name
unique selling proposition

5. Business-to-business B2B
The exchange of products, services and information between businesses, and not consumers
A growing part of e-commerce (may overtake business to consumers)

6. Company websites Audience is other companies and their employees.
Mini-trade exhibits
extranet, available only to customers or registered site users.
e-tailing to other businesses

7. e-procurement and brokering
Procurement exchanges
Purchasing agents can shop for supplies or bid
Serve a range of industries or a niche market
Brokers can act as intermediaries
Arranging leasing
Buying or selling businesses

8. Business to business
We will not be developing any business to business e-commerce solutions

9. Business to consumer B2C
Direct selling by a marketer to a consumer
Lower volume purchases at higher prices
Higher profit for company
Same or lower prices for consumer
Effective for small companies as brand recognition not so important as price

10. Categories of B2C Direct sellers – retailers or manufacturers
Intermediaries – eg price comparison
Make money on commission
Advertising based
Free web site for consumers funded by adverts
Community based
Targeted adverts for like minded groups
Fee based - Netflix

11. B2C
We will focus on retail

12. Domain name Make it easy to type Keep it short
Use keywords to reflect the business
Add locality – if appropriate
Avoid numbers and hyphens
Be memorable
Research for copies, trademarks, near matches
Use an appropriate extension
.com .co .uk .net
Protect the brand
Register misspellings, multiple extensions
Be quick

13. Activity
Select a domain name(s) for MWS

14. Unique selling proposition
The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition
Abbreviated to USP

15. USP Very few businesses are one of a kind
The USP helps a consumer choose one business over another
Needs to be based on:
product characteristics and price
placement strategy (location and distribution)
promotional strategy

16. Product What are the key features of the product? Quality Service
Delivery
Price
Function
Technical

17. Product USP examples
Your pizza is delivered deliciously hot every time - Dominos
Watch TV programmes and films anytime, anywhere - Netflix
Service rather than price - Virgin Airlines
Features rather than just prices – Go compare
Design – Apple
Status and achievement – BMW
Never knowingly undersold – John Lewis

18. Placement strategy How does the product get to the consumer?
Where is it sold?
Shops
In store shops
Branded shops
Dealers
On line
When does it arrive?
Same day, next day, sometime
How easy is it to buy?

19. Placement examples Confectionery – everywhere
Burberry, Chanel, Dolce Gabbana, Jimmy Choo, Louis Vuitton – branded shops and retail
Special foods – place of origin, online, exclusive shops
Technology – Dixons/Currys, supermarkets
Anything - Amazon

20. Promotional strategy Events based marketing In store promotions
Advertising
Viral marketing
Social networking
Sponsorship
Business associations

21. Promotion examples Launch events – Apple, Microsoft
In-store marketing – cosmetics
Advertising – celebrity endorsement
Viral marketing – Samsung drop test
Social networking – Samuel Adams
Sponsorship – Chevrolet/Man U
Business associations – O2 arenas

22. Activity In pairs – determine the USP for A technology brand
A car brand
A retail store
An insurance company
A delivery service

23. How to create a USP List all the features of the product
Convert the features to benefits
Rank the benefits in priority order
Determine if the benefit is standard (S) or different (D)
D benefits are candidates for USP
If you have all S, then see which are the higher priorities and determine of they can be converted to D

24. USP example for a laptop
Feature
Benefit
Importance (1-10)
S or D
Powerful processor
Speed 9 S
SSD
4k screen
Clarity/content 8 D
Waterproof
Robustness 7
USB 3.0
Transfer speed 6
Wi-Fi
Communication choice
USP – the only waterproof laptop with a 4k screen
Play games in the rain!

25. Create a USP for MWS
Review the competition
Follow the process