1. CONCEPT OF ELECTRONIC COMMERCE
CHAPTER 2
CONCEPT OF ELECTRONIC COMMERCE

2. Why Should Companies Use Electronic Marketing
What is the purpose for engaging online communication?
Why should the company go online?
What do we hope to achieve with an online presence?
Who will be in charge of the Wib site creation?
Who will set the budget for Web site production and implementation?
Does the company have the talent to allow the Web site to grow?

3. Objectives and Expectations for Internet Activities
Definition of EC:
E-Commerce is a system of online shopping and information retrieval accessed through networks of personal computers.
E-commerce is the end result of e-marketing.
E-marketing resources are the means, tools by which e-commerce is executed more efficiently and effectively.
Internet is promotional faucet to tap into the flow of consumers and prospect purchases.
Internet is a part in the promotional mix.

5. Virtual Retailers It is a flat TV screen. Amazon.com Vs. bn.com.
Importance of demographic, psychographics and behavioral characteristics.
Web master Vs. interactive advertising agency.
Internet provider/internet service provider:
Arrange for necessary equipment(server, internet connection and the system maintenance) to handle tha daily activities.

6. Evaluation of On-Line Marketing Situation
Knowing at what point to start is the key to successful marketing efforts.
Crating on-line awareness for product/service.
To be capable to react quickly customer service inquiries.
Technical support by .
Data base development for customer tracking.

7. Relevant Research Process
Personal Characteristics:
Gender
Age
Marital Status
Educational Level
Ethnicity
Occupation
Household income

8. Relevant Research Process (cont.)
Internet Usage Profile
Internet access option and cost
Length and frequency of use
Primary Research
Secondary Research
Steps in Research Process
Define the required relevant research
To ascertain if and where the information can be obtained

9. Relevant Research Process (cont.)
New product and Service Definitions:
Need identification
Product/service development
Identify expected benefits to intended audience
Environmental Factors:
Economic
Cultural
Legal
Political
Tracking Customer movement on the internet.
Cookie files attached to user’s browser
They do it, but it is considered unethical attitude

10. On-Line Market Research
The research process:
Problem definition
Methodology
Data collection and analysis
Findings, recommendations and implementation
Faster and cheaper
Large sample size
It is done interactive manner with customers
Provides early information about product and customers

11. On-Line Marketing Research Methodss.
Focus group conducted in chat room.
Surveys placed on web cites.
Data entry error is eliminated.
Graphics, logo and link to other web pages may be added.
Respondents may be from foreign countries.
Respondents may answer at his/her convenience.
Problems with on-line market research:
Long download time
Long processing time

12. Limitations of On-Line Research
It is not suitable for every client.
It is skewed toward certain population groups.
Sample may not be representative.
Web based surveys have lower response rate than surveys.
Respondents may not trust the truthfulness of web based research.