UNIT-III:CONSUMER ORIENTED E-COMMERCE APPLICATIONS: Introduction - Mercantile Process Model: Consumers Perspective and Merchant’s Perspective - Electronic Payment Systems: Legal Issues & Digital Currency - E-Cash & E-Cheque - Electronic Fund Transfer (EFT) - Advantages and Risks - Digital Token-Based E-Payment System - Smart Cards.
UNIT-IV:ELECTRONIC DATA INTERCHANGE: Introduction - EDI Standards - Types of EDI - EDI Applications in Business – Legal - Security and Privacy issues if EDI - EDI and E-Commerce - EDI Software Implementation.
UNIT-V
E-Marketing Techniques
Q.1) What is E-Marketing? Explain its advantages &
Disadvantages?
Ans:
E-Marketing :
Any marketing activity that is conducted
online through the use of internet technologies is known as Electronic
Marketing. It is also known as online marketing or internet marketing.
Electronic marketing has seven core principles:
1.
Personalization
2.
Privacy
3.
Customer Service
4.
Community
5.
Site
6.
Security
7.
Sales Promotion
These seven principles can be
synthesized in the 2P+2C+3S formula.
Personalization:
It is crucial to identify the customers on individual level
and gather all possible information about them to develop customized,
personalized products and services.
Privacy:
Privacy is an important concern in e-marketing. There is a need to develop a policy upon access procedures to the collected customer information.
Customer
Service:
Customer Service is the service provided to customers before, during and after purchasing and using goods or services. Good customer service produces satisfied customers.
Community:
A group of entities that interact for a common purpose is known as a Community. The customers/clients of a business can be seen as part of a community.
Site:
E-marketing interactions take place on the internet. Such interactions and relations also need a proper location. Such a location is known as “Site” or “Web Site”. A site can be accessible through multiple ways.
Security:
The Security function is an essential function to ensure safety of the electronic transactions. Precautions should be taken for the safety of sensitive information. This information should be protected from un-authorized usage.
Sales Promotion:
Sales Promotion is important in e-marketing strategy to achieve immediate sales goals in terms of volume. This principle needs creative thinking of the company.
Advantages of
E-Marketing:
E-Marketing has many advantages. Some
of them are:
Global Reach:The use of Internet for E-marketing eliminates the geographical boundaries. It can be always accessible to unknown buyers and sellers in a 24/7 fashion.
Easy Marketing: With the provisions of E-Marketing, consumers can easily acquire product knowledge and compare products in the global market.
Economics:E-Marketing is a cost effective strategy. It saves the money to be spent on printing catalogs, brochures and other promotional material in traditional method.
Dynamic Content:E-Marketing facilitates the immediate change of content, Add new products and services in a dynamic fashion.
More Attractive:E-Marketing uses GUI environment. It allows adding voice to your presentations. It also provides product information with the help of graphics and animations.
Disadvantages of E-Marketing:
- Lack of personal approach
- Dependence on technology
- Security, Privacy issues
- Maintenance Costs
- Worldwide competition
Q.2) Discuss about the E-Marketing Techniques.
Ans:
E-Marketing Techniques :
Internet provides a new advertising medium. Many different advertising mechanisms exist on the internet. Each of these techniques varies in its cost and ability reach targeted customers. E-Marketing techniques are of two categories:
1. Passive Techniques
2. Aggressive Techniques
1.
Passive Techniques:
Passive Techniques are those methods that require the user to “pull” the information from the website. Here, the user must actively look for the site.
2.
Aggressive Techniques:
Aggressive techniques are those techniques in which the website “pushes” the information on to the consumer, regardless of whether the consumer is interested or not.
The following figure illustrates the continuum of e-marketing techniques:
Directories:Directory services on the WWW provide an index that lists and provides links to websites. The sites may be listed alphabetically or by subject, category or region. Currently websites can be registered to a number of directory services such as Infoseek, Internet Mall, The Yellow Pages and Yahoo.
Q.4) Explain about the Search Engines
Search engines are the programs that search documents for specified keywords and return a list of the matched documents. A Search engine finds every item that matches a query. By using a search engine consumers can easily compare products in the global market. This allows consumers to evaluate the best possible product efficiently.
Search
Engines are of two types:
1.
Crawler-based search engine
2.
Human powered directories.
Crawler
based search engine:
Crawler
based search engines crawl or spider the web and create their listings
automatically. Then people search
through what they have found. A crawler based search engine lists the content
in a dynamic manner.
Google is an example of crawler based search engines.
Human
powered directories:
A
human-powered directory depends on human for its listings. A search looks for
matches only in the descriptions. Organizing and browsing using directories are
not effective because they have to be updated constantly. Open Directory is an example of
human powered directories.
Q.5) Explain about solicited and targeted e-mail
Ans: Solicited,
Targeted E-Mail:
E-Mail marketing has become a popular medium.
Because of its low cost and the ability to send multimedia messages about the
products and links to order from pages.
This is a method used to attract visitors to a
website that requires acts by both the website and the visitor. This mechanism
allows a business to maintain regular contact with customers and drive traffic
to websites or other products. These type of activities are mutually beneficial
to the customers and the business.
Q.6) Explain about Interactive sites
Ans:
Interactive
Sites:
Some sites may attract the visitors to their site by providing general information in an interactive manner. Interactive advertising allows the marketers to establish a two-way interaction with target audience.
An interactive website provides a platform to the visitor to interact freely, share views, give opinion etc. Thus the visitors might be encouraged to return to the website again.
Interactive
advertising has the following advantages:
I. Direct Response: Interactive advertising can generate an
immediate direct response via click-through to a website.
II. Enhanced brand
awareness and reach: Animated or graphical interactive ad can generate
awareness about a brand, product or need.
III. Targeting: It allows to identify the customers on individual level and to collect all possible information about them to develop customized, personalized ads.
Q.7) Explain about Banner advertising.
Ans: Banner
Advertising:
On-line
banner advertising is an aggressive advertising technique. Firms pay a fee to
the marketing companies to flash advertising banners across the pages of other
sites.
A banner ad or a web banner is a form of advertising on the WWW. It embeds an advertisement into a webpage to attract traffic to a website by linking to the website of the advertiser.
When
a webpage that references the banner is loaded into a web browser then the web
banner will be displayed. This event is known as an “Impression”. If the viewer
clicks on the banner, then he is directed to the website advertised in the
banner. This event is known as a “Click through”.
The advantage of banner advertising is that a
more effective banner attracts more number of visitors to a site.
Q.8) Explain about off-line advertising.
Ans:
Off-Line
Advertising:
Off-Line advertising is a method to promote websites through television, radio and print. Off-Line advertising method is costly than other methods. It requires to place advertisements in many highly regarded newspapers, such as The Wall Street Journal, USA Today, Barron’s and the New York Times, etc. In fact, approximately 75 percent of the advertising dollars spent on off-line advertising.
Q.9) Explain about spam-mail.
Ans:
Spam Mail
Spam Mail is the use of electronic messaging system to send unsolicited bulk messages indiscriminately. It is a more aggressive tactics to attract customers. The e-mail addresses may be purchased with another business. Software robots can also be used to scan the WWW and collect e-mail addresses from communities.
Spam
is referred to as “postage due marketing” because those messages reside on the
recipients host computers until they are deleted. Storage of those messages
cost businesses money. Groups such as Coalition Against Unsolicited Commercial
Email (CAUSE) have emerged to fight for spam mail regulation.
Q.10) Explain about the application of 5P’s.
Ans:
Application
of 5P’s:
The five elements of electronic marketing are:
I. Product
II. Pricing
III. Place
IV. Promotion
V. Personalization
The following figure illustrates the relationship between the Customer Oriented Value Chain and these 5P’s:
Product:
A Product is a good or service
that a business offers to its customers. The product component can be placed in
the production section of customer-oriented value chain. Traditional physical
goods include items such as automobiles, grocery items and printed news papers.
Traditional Service products include service offered by doctors, accountants,
hair dressers, etc.
Pricing:
The pricing of a good refers to the processes in determining the amount to charge for a specific product. Pricing models are typically used to determine a firm’s price. Search engines allow the customer to easily compare prices of many goods on the internet.
Place:
Place is referred to as outbound logistics or distribution. It is a process of moving the product from the producer to the customer. A product may travel directly from the producer to the consumer or it may be channeled through wholesalers or retailers.
Promotion:
The successful promotion of a product
requires that at a minimum, a positive message be received by potential
customers. Product promotion can be communicated in many ways:
- Paid advertising channels
- News stories and press releases
- Word of mouth
- Consumer’s personal experience
- Packaging
Personalization:
Personalization refers to the ability of customers to receive personalized information. In internet marketing it is essential to provide the visitors with the information they are looking for. It is important to share information of the product, services on blogs, forums, etc by posting about it.
Q.11) Explain various E-Advertising mechanisms.
Electronic advertising is a form of promotion that uses the internet and WWW to deliver marketing messages to attract customers. It includes ads on search engine result pages, banner ads, social network advertising, e-mail marketing, etc.
Advantages of
E-advertising:
- Immediate publishing of information and content round the clock, worldwide.
- Efficiency of advertiser’s investment.
- Provides revenue to the businesses.
Different
Techniques in E-Advertising are:
1) Banners.
2)
Sponsorships.
3) Portals.
4) Online Coupons
Banners:
According
to internet advertising bureau (IAB), Banner
advertising is the most popular form of on-line advertising. Banner
advertising is used to attract visitors to a site. Banner ads contain text,
graphics and animation that are placed on the screens of search engines, web
browser software and websites.
Banner
advertising is of two types
Ø Click through
advertisement.
Ø Non click-
thorough advertisement.
Click through advertisement:- It contain hyper links to the site about which the banner is advertising.
Non Click through advertisements:- It does not contain hyper links to the site.
Banner
advertising is typically measured and priced according to two features.
- CPM- Cost Per thousand Impressions.
- CTR- Click Through Rate
Sponsorships:
Sponsorship
is another popular on-line advertising method. Sponsorships typically allow the
firms banner to stay on a site for a longer period of time or for a certain no.
of days.
Some corporate entities may provide equipment to a famous sports personality in exchange for their brand recognition. Sponsorships are a good mechanism for generating brand recognition.
Portals:
A
portal is referred to a site that serves the “post of entry” on to the web.
Portals are designed to give web users the information they need. Portals
typically sell advertising space on their websites.
Apart
from the standard search engine feature, web portals offer other services such
as e-mail, news, stock alerts, databases and entertainment, etc.
Example: AOL, MSN, Google, Yahoo, etc.
Online coupons:
Online coupons are another way for the firms to advertise on internet. Online coupons may be exchange on-line or printed for use in stores. These are distributed from sites for businesses that subscribe their services. These are very much useful for super markets and food industry.
v Benefits of
online coupons:
- Discounted Prices.
- Convenient access
- Wide variety of products.
- Support for economy.
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