1. TOPIC:Topic 4: Marketing LESSON TITLE:E-commerce LEARNING INTENTION: To understand e-commerce as a business practice COMPETENCY FOCUS: Creativity: learners will develop skills in creativity and design by firstly looking at how promotion is used in business to help them to reach their goals and secondly, to design their own promotional campaign responding to a creative brief from the client. Reasoning: Learners will develop skills in reasoning as after providing advantages and disadvantages for the use of the promotional mix, you will be required to make a reasoned judgment. [IB Learner Profile Development: Open-minded] Success Criteria By the end of the lesson, I can… 1) Distinguish between the terms B2B and B2C selling 2) Explain the terms B2B and B2C selling, using examples 3) Discuss the costs and benefits of e-commerce to firms and consumers. SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development. CRITICAL THINKING KEY: Knowledge Application Analysis Evaluation

2. E-COMMERCE E-commerce: Selling/buying goods over the internet. Marketing can involve: -Selling goods to end user over internet (B2C) -Advertising goods over the internet -Selling/buying goods to other businesses over the internet (B2B)

3. Practice Exam Question NetShops NetShops began as a business to customers (B2C) e-commerce company in 2002. Founded by Doug Nielson, it began with a single online “store” and now owns and operates over 200 online stores selling a wide range of products targeted at various niche markets. One of the reasons that the firm has grown so quickly is its “NetShops Affiliate Program”, which allows other businesses to place links on their own web sites to the NetShops’ website. When a customer purchases a product from NetShops as a result of following one of these affiliate links, the affiliate company earns a commission on this sale. NetShops is able to quickly launch additional online stores in niche markets for which traditional channels of distribution do not exist. No single online store accounts for more than 5 % of the total sales of NetShops. NetShops maintains an online database of all purchasers. The company uses software to obtain select personal data (e-mail and regular post addresses, for example) and to record purchases in their shops. NetShops also knows which of its sites and products customers have viewed. The firm can identify customers’ interests and purchasing trends, from which it can develop consumer profiles. [Source: adapted from Inc. 500 and http://www.netshopsinc.com/, November 2007]

4. Practice Exam Questions 1.Define the term e-commerce. [2 marks] 2.Distinguish between B2B and B2C marketing. [4 marks] 3.Discuss the costs and benefits to consumers of NetShops’ e-commerce approach. [7 marks]