Вы находитесь на странице: 1из 24

Lecturer: Dr. Tran Th.

Song Minh

IS 300 REPORT

NA TIO NAL EC ON OMI CS UNI VER SIT Y AD VA NCE D ED UC ATI ON AL PR OG RA MM

Ecommerce Marketing on the Internet


GROUP 3- CLASS 51A
L TIN T THY LINH H TH THU THY NGUYN QUNH TRANG BI THU VN

HANOI -

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

TABLE OF CONTENT

Mike Wall, 2009, Internet Marketing vs. Traditional Marketing [online] Available at: http://www.edreamz.com/blog/post.cfm/traditional-marketing-vs-internetmarketing [Accessed 18 Feb 2012]......................................................................23 Wikipedia, 2008, Internet Marketing [online] Available at: http://en.wikipedia.org/wiki/Internet_marketing [Accessed 18 Feb 2012].............23 Wisegeek, What are some Common Internet Marketing Strategies? Internet Marketing vs. Traditional Marketing [online] Available at: http://www.wisegeek.com/what-are-some-common-internet-marketingstrategies.htm [Accessed 18 Feb 2012]................................................................23 Quirk, What is e-Marketing and how is it better than traditional marketing? [online] Available at: http://www.quirk.biz/resources/88/What-is-eMarketing-andhow-is-it-better-than-traditionalmarketing;jsessionid=E6B80E98193AFC29FD204FF43737A710.sybaris_jboss [Accessed 18 Feb 2012]........................................................................................23

ABSTRACT
E-commerce has become such a worldwide phenomenon that it is of much concern in todays digital era. Since the birth of E-commerce, the number of business conducting over the Internet is increasing substantially. Also, thanks to this utilization, business can now dream of expanding their operation beyond national border without any necessity of facilities. Considered to be
Advanced Finance 51A- Group No.3

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

greatly advantageous, however, E-commerce involves some hidden issues that remain controversial and need to be answered by suggested solutions. Together with the development of e-commerce, internet marketing, or e-marketing is augmenting and becoming a necessity in most companies nowadays. In order to attract customers, to obtain sales, membership requests, and even just inquiries, or for companies to achieve their goals in general, there are many internet marketing strategies companies may utilize. The effectiveness of internet marketing is what sets it apart and in a league of its own compared to traditional marketing. Technology is innovative. So there is a sure that E-commerce must change in the way that all people, including business and non-business users, can samely perceive it as a powerhouse authority of gaining globally competitive advantages . In fact, many developed countries have taken advantage of this potential business and gained large success. However, for undeveloped countries, in which Vietnam is standing somewhere at the middle, this might not turn out to be the case at this moment.

I. INTRODUCTION TO E-COMMERCE
1. What is E-commerce?
Most appropriately defined, E-commerce is the term referred to the buying and selling of products or services via electronic means such as the Internet and other computer networks. However, buying and selling are just two major transactions as E-commerce also includes the entire online process of developing, marketing, selling, delivering, servicing, and paying for
Advanced Finance 51A- Group No.3

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

products and services. Normally, people, including IT persons, consider E-commerce and the word E-business as relative and interchangeable term although in practice, they are distinct concept. E-business is somewhat broader perspective, that is, it includes not only buying and selling process electronically but also servicing customers, collaborating with business partners, and performing electronic transactions with business organizations. Critically, what we perceive and understand about E-commerce nowadays is far different from its very beginning. Actually, it is true that E-commerce has grown to be a multi-billion dollars industry before professional computer were dominant and became one of the greatestever achievement of the worldwide information technology. At first, E-commerce meaning is just the electronic facilitation of commercial transactions supported by some of the leading technologies at that time, starting with the mechanism called Electronic Funds Transfer (EFT). Appeared in the early 1970s, it was built to do the transaction of money transfer and exchange from one account to another via computer-based system. However, it is disadvantageous that this system allows to some limited users, mostly including financial institutions, large corporations, and a few hardcore business. Then after, in the late 1970s, the Electronic Data Interchange, or EDI, has developed much more improvements to cover the lack of its previous system. This technical representative enlarge the capacity by adding transferring the routine documents from financial institutions to manufacturers, retailers, various kind of service industries, and so forth. However, the real e-commerce that everyone are now highlighting as a widespread term was not until the year 1990 - a foothold in the history of IT when Tim Berners-Lee, co-worked on the first web browser program and invented the World Wide Web (WWW). And then 4 years later, Internet was generalized among the public. The appearance of the WWW, hence, leaves Internet a globally and virtually potential environment for commercialized purposes, which results in the
Advanced Finance 51A- Group No.3

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

quick multiplication of applications, and since then, people have just themselves forming a concepts known E-commerce that is commonly known today.

2. Types of E-commerce business models


There are commonly the six types of e-commerce: B2B, B2C, C2C, B2E, E-government and m-commerce. Business to customer (B2C): in B2C the sellers are organizations and the buyers are individuals. B2C involves a large number of buyers making millions of diverse transactions per day with a relatively small number of sellers. For example, Amazon, an online retailer that offers thousands of products to its customers but each customer purchase is relatively small. It is complex for Amazon to serve all customers with timely, quick, efficient process. This situation is true for all companies using B2C EC. Besides that, how customers access companies on web are important issue in B2C EC. There are 2 basic mechanisms, they are: electronic storefronts and electronic mall. Electronic storefronts presents single store where one shop directly buy their products. Whereas and electronic malls are known as cybermall or e-mall which are the collection of individual shops under a single Internet address. Business to business (B2B): in B2B both the sellers and buyers are organization: both the sellers and buyers are organization. B2B comprises about 85% of EC volume. It covers a broad spectrum of application that enable an enterprise to form electronic relationships with its distribution, resellers, suppliers, customers and other partners. There are several business models for B2B application. The major ones are sell-side marketplace, buy-side market places and electronic exchanges.
Advanced Finance 51A- Group No.3

IS 300 REPORT -

ECOMMERCE MARKETING ON THE INTERNET

In the sell-side marketplace model, organization attempt to sell their products/ services to

others organization electronically from their own private website or from a third party websites where the buyers com to, view catalogs and place an order.
-

In the buy-side marketplace model, the organizations attempt to buy needed products/

services from other organization electronically by using the major methods that is reverse auction or particularly group purchasing. During purchasing process, EC technology helps reduce costs of administrative expense, purchasing cycle time. All the function of procurement such as chasing goods& material, negotiating with supplier or paying for goods.are also accomplish with the help of electronic support (as e-procurement).
-

In electronic exchanges, they are known as public exchanges or exchanges where there are

many buyers and sellers. They are frequently owned/ operated by a third party. They provide all necessary information systems to the participants, thus buyers and sellers merely have to plug in in order to trade. B2B public exchanges are often the initial point for contracts between business partners. Once they make contracts, the partners may move to a private exchange or to the private trading rooms provided by many public exchanges to conduct their subsequent trading activities. Customers to customer (C2C): in C2C, an individual sell products/ services to other individuals. The major strategies for conducting C2C on the Internet are auctions and classified ads. Most individuals conduct the auctions by using intermediaries like eBay or even they can conduct the auctions on their own with the help of some software to create online C2C. Meanwhile, online classified ads are similar to those found in print ads and are available through most Internet service providers, portals, online newspaper

Advanced Finance 51A- Group No.3

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

Business to employee (B2E): in B2E, an organization uses EC internally to provide information and services to its employees. Companies allow employees to manage their benefits and to take training classes electronically. Moreover, employees can buy discounted insurance, travel packages, tickets to events on the corporate intranet or they can order suppliers and materials electronically as well. Finally, many companies have electronic corporate stores that sell the companys products to its employees, usually at a discount. E- government: the use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens, business partners and suppliers. It is also an efficient way of conducting business transactions with citizens and businesses within the governments themselves. Mobile commerce (m- commerce): m- commerce refers to e- commerce transactions that are conducted in a wireless environment, especially via the Internet. M-commerce can be transacted via the Internet, private communication lines, smart cards and other infrastructures. It also creates opportunities for business to deliver new services to existing customers and to attract new customers. The development of m- commerce is driven by the several factors. They are: the widespread availability of mobile devices, no need for a PC (users can access the Internet via a smart phone or other wireless device, they do not need PC to go online), the cell phone culture (the widespread use of cell phone is a social phenomenon, especially among young people), the declining price and the bandwidth improvement (bandwidth for transmitting text, voice, video and multimedia such as 3G, Wi-Fi, WiMax are available and sufficient).

3. Benefits and Limitations of E-commerce


a. Benefits

Advanced Finance 51A- Group No.3

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

To everyone, it is undeniable to state that E-commerce is one of best proof for the opinion that technology in the digital world can help people perform far, and beyond their expectations. Everyone gains benefits from E-commerce, but those benefits vary distinctively among different kinds of group.
-

Organization benefits

E-commerce helps click-and-mortar business take advantages over brick-and-mortar business in term of those following: + Help increase the sales of the company and decrease the costs: Profit is the first set of every business projects and dealing with E-commerce is not exceptional. Normally, with physical business, all the buying and selling transactions between sellers and buyers, wholesalers to retailers must be taken one by one; with E-commerce, by online interaction via Internet, any task can be performed simultaneously, hence, within a moment, by a click , many orders are set and ready to serve, much greater than face-to-face transaction. This is an example of U.S case. In the table below, E-commerce sales in U.S retailers are generally upwarding, although the dot-com collapse in 2000 led to unfortunate results and many of ecommerce companies disappeared, and are forecasted to grow in the next few years.

Advanced Finance 51A- Group No.3

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

Besides, E-commerce also results in cost reduction. Costs here imply both explicit cost (production costs, marketing cost, inventory costs, distribution costs and labor costs) and implicit cost (time costs of transaction, opportunity cost of building a physical office) + Obtain global reach competitive advantages: Internet and the E-commerce help company understand each other well without any direct experiences before. By doing E-commerce, even a small company in India can be a worldwide choice for its products and services of U.S customers because of information provided on the Internet. It is really profitable to expand the market from a national to an international context without building any physical presences in the foreign marketplace. That explains why some online vendors such as Amazon, eBay are well-known global brand names thanks to the applications of E-commerce. + Benefits in dealing with business partners: E-commerce has also applied in business contact between organization partners. So, to some extent, E-commerce may minimize the supply chain inefficiencies such as reducing inventories, the number of deliver delays; enabling efficient eprocurement. In addition, E-commerce organization take benefit from building a more collaborative and stronger relationships with suppliers. Individual (consumer) benefits

+ Convenience: Of all the E-commerce activities, may be the most common one is online shopping, describe as people browse to the companys webpage, select items, put it into their cart, and make an online payment by credit cards. E-commerce provide an 24/7 shopping, so that people are free to shop whenever they want, have some clicks instead of going out to the direct location or make a phone call, all of which can waste a lot of time and effort and may lower the satisfaction.

Advanced Finance 51A- Group No.3

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

+ Get more information about the products and services: Products and services provided by Ecommerce are always on the shelves. Consumers may get as much information about the products on the Internet as they want and then can compare to another similar products from other companies to obtain the one with better features and more competitive prices. In other words, when people have greater information, they tend to be more confident in their purchase decision and being more satisfied with it. + Instant delivery: In doing E-commerce, all buying transaction and order happen for a few second. Quick delivery is important for people, especially whom want to use the product immediately, as opposed to waiting longer. This is really important as a late in delivery time may take the customer to pick the competitors product. Societal benefits

+ Higher standard of living: with the support of E-commerce, many less affluent people are motivated to shop more to increase the standard living. + Telecommuting: E-commerce sent individuals from working at their office to their home site . This will decreases the HR costs for the companies as managers neither have to build large office building, large parking lots, nor they have to hire more staffs as well as before. + Availability of public services: Such services like health-care, education, and distribution of government social services can be done at a reduce cost to a large number of people.
b. Limitations

Despite having major importance on todays e-world, it is matter that E-commerce remains much of debating concerns that need to be solved promptly. Those shortcomings are formed by two factors: technological and non-technological limitation.
Advanced Finance 51A- Group No.3

10

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

Technological limitations

+ Lack of universally accepted standards for quality, security, and reliability: Online transactions in E-commerce always imply a danger of being unsecured. The main cause is that people called hacker can easily track the account transactions and stole the credit card pass code or ATM pin numbers. Annually, in US, many E-commerce companies have suffered million dollars in compensation. Although security system is highly concerned, in fact, there is a lack of standard along with reliability. The standard of security cannot be completely trusted and the communication protocol is also according to some a little bit not up to the mark + Insufficient telecommunication bandwidth: This is mostly needed for B2C clients where large number of business transactions needs to take place and the lack of bandwidth usually slows down the complete process of work. + Software development tools are still evolving: Going on making changes to a companys website and e-business modules are highly required in order to keep track of time when any updates happen. Online advertisement may have to be evolved according to the new changes in web browsers and graphics and animations. + Others limitations: difficulties in integrating the infrastructure of E-commerce with IT system, Internet accessibility is still expensive and inconvenient, etc Non-technological limitations

+ Security and privacy concerns: These issues are especially important in the B2C area, and security concerns are not truly so serious from a technical standpoint. Yet, the customers perceive these issues as very important and therefore the E-commerce industry has a very long

Advanced Finance 51A- Group No.3

11

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

and difficult task of convincing customers that online transactions and privacy are, in fact, fairly secure. + Lack of trust in paperless, faceless transaction: E-commerce has give its birth to another form of buying- the online shopping. However, compare to the traditional shopping, this has just happened for a several years and there is still a large portion of people who do not prefer such kind of transaction. The main reason for it is that they dont feel satisfied and comfortable when making a transaction with an unknown sellers and no paperwork required. In addition, there may be no guarantees about the quality of the products and services; or even the reason can be some suspicions about the danger of being a fraud seller who make this website to eat up their money. + Others limitations: such as the difficulty to obtain venture capital due to the dot-com disaster, many legal and public policy (including taxations) remain unsolved, etc

II. MARKETING ON THE INTERNET


1. What is Internet Marketing and types of Internet Marketing
Being one of the biggest changes of our lifetimes, the Internet, together with the fast evolution of technology, has particularly made a huge impact on how businesses operate. The era of information technology has marked an e-commerce explosion, where businesses firms around the world have to strive to stand out while new business methods and new business models are

Advanced Finance 51A- Group No.3

12

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

discovered every day. One of the biggest help for firms to do so is from taking advantage of marketing on the Internet. Marketing on the Internet, also known as Internet marketing, online marketing, web advertising, or E-marketing, is referred to as the marketing of products and services using the Internet as its medium. Marketing on the internet includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers. It encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and developing its brand identity. Although the new internet marketing technologies and tactics are getting more powerful and changing accordingly, when mentioning types of e-marketing, there are still some that are most well-known and widely used. They are Display Advertising, Search Engine Optimization (SEO), Search Engine Marketing (or Pay-per-Click), Social Media Marketing, Email Marketing, Referral Marketing, Affiliate Marketing and Content Marketing. In Display Advertising, web banners or banner ads are placed on a third-party website. Banners are purchased to be displayed on the website for a certain period of time and advertiser pays money for the same. Usually, banner marketing is used to divert potential traffic to the site. Therefore, it should be noted that the success of display marketing depends on the website where the banner has been displayed, whether it attracts prospective customers or not. One of the most commonly used internet marketing strategies is Search Engine Optimization (SEO), which is used based on the fact that the higher a website is ranked on the search engine, the more visitors it will receive from the search engine's users. SEO is a process of improving the visibility of a website or a web page in search engines via un-paid search results. This means

Advanced Finance 51A- Group No.3

13

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

making it easy for search engines to find and index by including certain keywords and key phrases in the content, based on what targeted consumers are likely to type into the search engines. Additionally, it is important to realize that besides keywords, quality content, and tags, search engines may look at other factors when ranking websites. Some companies try another common internet marketing tactic called Search Engine Marketing (or Pay-per-Click) to get more visitors and purchasers. It is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages through the use of paid placement, contextual advertising, and paid inclusion, or through SEO. In this strategy, companies choose keywords or phrases and carefully craft ads to appear on other sites, and companies only have to pay when somebody actually clicks on ads. Nowadays, when some hundreds million people are accessing to social network sites like Facebook, Twitter, LinkedIn, YouTube,, Social Media Marketing is getting more popular than ever. Social Media Marketing refers to the process of gaining website traffic or attention through social media sites. Rather than directly advertise, companies create content that attracts attention and encourages readers to share it with their social networks. An opinion or message spread by a third-party will appear to be more trustworthy and objective than by companies themselves. Also, social media serves can be considered a relatively inexpensive way of marketing. Email Marketing is directly promoting products through the use of email. It usually involves using email to send ads, request business, or solicit sales or donations, and any email communication that is meant to build loyalty, trust or brand awareness. Email marketing can be done to either cold lists or current customer database. Broadly, the term is usually used to refer to sending email messages with the purpose of enhancing the relationship of a merchant with its

Advanced Finance 51A- Group No.3

14

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

current or previous customers, to encourage customer loyalty and repeat business, sending email messages with the purpose of acquiring new customers or convincing current customers to purchase something immediately, or adding advertisements to email messages sent by other companies to their customers. Referral Marketing, in many ways, should be the least expensive strategy of internet marketing. Referral Marketing is a method of promoting products or services to new customers through referrals, usually word of mouth. To small businesses, good referral marketing strategy is absolutely essential. A solid referral marketing strategy can be so powerful because people feel more comfortable when a product or service is recommended by someone they know and trust, rather than the company itself. Another reason is that referred customers are typically less price sensitive, and lastly, a good referral marketing system can quickly multiply, giving companies plenty of interested prospects. In Affiliate Marketing, a company hires other companies or websites which are called affiliates. Affiliates ensure the responsibility of marketing of the product or services on behalf of the company in exchange of commission for their work. They may use banners or logos for advertising the product of the company for which they host advertisement. When the visitors click on the banner or logo, they are connected to the sponsors site for which they are paid a commission. Because affiliates often use regular advertising methods, Affiliate Marketing may overlap with other Internet marketing methods to some degree, such as search engine Optimization (SEO), Search Engine Marketing (or Pay-Per-Click), E-mail marketing, and Display Advertising.

Advanced Finance 51A- Group No.3

15

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

Last but not least, Content Marketing is the creation and publication of original content in order to engage current and potential consumer bases. The content can be displays in the form of magazines, print or online newspapers, websites, blogs, podcasts, videos, emails or events... Content Marketing is developed based on the belief that educating the customer can lead to the brands recognition as a thought leader and industry expert. Thus, it serves the purposes of retaining reader attention and improving brand loyalty.

2. Internet Marketing versus Traditional Marketing


Marketing is an important strategy for businesses and it contains numerous effective tools. Though traditional marketing has been in use for many years, now companies in the world are shifting from that traditional way of marketing to Internet marketing due to a proven fact that Internet marketing is more effective in many ways. The nature of the internet means businesses now have a truly global reach. No longer does a firm have to spend a large budget to reach customers in far regions, because Internet Marketing can help the firm access customers from over the world, as long as the Internet is available, with notably smaller budget. Additionally, Internet Marketing can facilitate the interaction between companies and customers. Instead of getting information from one side, which means traditional marketing only involves spreading out a brands messages, e-Marketing promotes a two-way communication channel, where companies also receive feedbacks from their customers. By this, companies become more dynamic and adaptive, and take appropriate actions accordingly. Internet marketing is able to provide an immediate impact. Traditionally, the period between customers gaining interest in one product or service and their actual purchase could be long, or

Advanced Finance 51A- Group No.3

16

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

even long enough for them to eventually lose that interest. Now, with E-Marketing, just by a click, that step becomes more simple than ever. Internet Marketing makes business hours 24 hours per day, 7 days per week for every week of the year. By closing the gap between providing information and eliciting a consumer reaction, the consumers buying cycle is speeded up and advertising can go much further in creating immediate leads. Internet Marketing is a constant source. It is difficult to go back and review an advertisement on TV or radio. Print is a little better for this but newspapers and magazines do get thrown out after a week or month. On the other hand, Internet marketing provides customers with a permanent address online that people can visit anytime they want. In terms of reaching targeted customers, there are ways that traditional marketing can target prospects depending on a television channel or show, radio station genre or industry magazine. However, traditional marketing will never be able to target as precisely as Internet marketing. Because the nature of the Internet is such that its users will tend to organize themselves into far more focused groupings, wise marketers who know where to look can quite easily find access to the niche markets they wish to target, and then present directly to the interested audiences.

3. Role of Internet Marketing in global business


The Internet truly flattens the world... a fact that brings opportunity to marketers with an international component to their businesses or a desire to do business globally. The growth of the Internet has increased competition tremendously and opened up the doors to international business. Companies have developed a web presence to keep themselves ahead or in line with their competitors internationally. In addition to gaining a competitive advantage, there are a

Advanced Finance 51A- Group No.3

17

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

number of additional reasons why a companys web presence is becoming an increasingly important tool to reach global markets. E-marketing has been a major influence on many industries such as music, banking, commerce, as well as the advertising industry. In the music industry, many customers buy and download music in the Internet rather than buying CDs. More and more banks offer online services. Online banking services are expected to attract more customers if customers do not have to go directly to branch banking. Currently, more than 150 million Americans use online banking services and the growth rate increases significantly. The improved speed Internet connection is the main reason for this growth. About 44% of individuals use Internet to perform banking transactions over the Internet. Internet auctions are becoming popular. The previously rare items can be found on eBay. This site also has a strong influence on prices. Buyers and sellers often refer to the price on eBay before the flea market and the price on eBay often becomes the price at which products are sold. More and more people who sell at flea markets, transfer to selling on eBay and run the business at home. The influence of E-marketing on advertising industry is growing. Within a few years, online advertising grew steadily to tens of billions dollars. According to the report of PricewaterhouseCoopers, the total value of Emarketing in U.S market was 16.9 billion USD in 2006. Marketers with global goals are now establishing mirror sites and multiple-language versions of their Web sites. Internet translation tools are available that make this easier to do. It is only a matter of time until those marketers use their Web sites to accept and fulfill orders online from customers worldwide. Internet marketing plays an important role in global business.

Advanced Finance 51A- Group No.3

18

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

First, Internet marketing expands markets and territories. Marketing no longer has to artificially stop at a country's borders. An Internet marketing program can make a global initiative not only possible but also practical. A company's Web site can be mirrored in several languages, and it can address country-specific issues. An intranet can be established to provide low-cost, instant communications with every sales office, sales representative, distributor, and retailer worldwide. An extranet can be used to admit partners, suppliers, and customers into select portions of the intranet. The Web site can be promoted inexpensively throughout the world with links on other Web pages and in email newsletters. Simple, inexpensive mailings can be executed in each target country to drive prospects to the corporate Web site. On the other hand, E-marketing also develops global marketing partnerships. Internet marketing makes joint ventures attractive and easy to implement. A marketer can join together with one or more partners whose products or services complement the marketer's products or services. Then members of this consortium can pool their resources. They can execute cooperative email campaigns by sharing each other's lists or form a collaborative Web site that features their solution set. They can also use their own extranets to speed communication with sales and marketing personnel from all participating companies throughout the world. Internet marketing provides worldwide customer service. In an era that emphasizes customer service, a marketer can now use the Internet as the foundation for 24-hours-a-day, 365-days-ayear customer support. The way a company services its business customers differentiates it from its competitors. The Internet can facilitate online customer service centers and provide customeronly information, service, support, and, in the case of software and information, live product. With the advent of Internet telephony, companies will be able to interconnect the Internet and voice response; customer service will take on a new level of quality.
Advanced Finance 51A- Group No.3

19

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

III.CONCLUSION
1. The future perspectives of E-commerce and Internet Marketing
18 years have passed since the first time E-commerce went into the human life. Over these 18 years, E-commerce has spread to most corners of the world, from the East to the West, from the North to the South. It has made marketing; buying, selling and shipping industry develop than ever. Moreover, it has opened a new era of implementing technology to business, created a brand new market with strong competitiveness. In recent years, despite the terrible economic crisis, E-commerce has grown stably at an exponential rate. Analysts forecast the U.S market to grow over 250 billion dollars by 2014. In UK, the sales for E-commerce in 2010 are mounted to over 60 billion dollars. It is predicted that 10% of every pound will be spent online in 2012. The identical situation occurs in U.S in which online retail sales will increase 10% annually by 2014. Specifically, E-commerce and Internet Marketings trends are presented as following. a. Mobile commerce The skyrocketing growths in mobile industry as well as the rapid spread of Internet have become great conditions for E-commerce to develop over the world. So far, revenues gained from mobile commerce have risen dramatically, according to a study by Appcelerator and IDC. Mobile commerce is estimated to boost significantly through such platforms as Android, iPad and iPhone. b. Social commerce Besides mobile, social network is also a potential market for E-commerce and Internet Marketing. The social network has developed with a rapid growth in 10 years lately. It is
Advanced Finance 51A- Group No.3

20

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

interesting that in UK, 90% of all purchases are influenced by Internets society. The revenues of social commerce are believed to reach 30 billion dollars in 2015 by integrating E-commerce websites with social networks like Facebook or Twitter. c. Video and Streaming Media The year 2011 has witnessed a strong increase in the use of video. In years to come, video commerce will be fully integrated into online shopping and other businesses. Internet TV and other multimedia will continue to develop. Consequently, the use of video to advertise products and services will also continue to experience a rise in the future. d. Personalization This private service still remains common. Depending on the growth of e-commerce in casual life, companies are going to concentrate on delivering personalized services. For example, online shopping websites will provide more personalized services to customers. This promises an eventful market for companies who offer personalized services in upcoming years. e. Online for Small Business

Advanced Finance 51A- Group No.3

21

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

The survey above has shown how small businesses use their websites. There are 30% of them used for e-commerce. It is still a minor number in comparison with customer service. When social networks are also developing, it is no doubt that small businesses will also take advantage of E-commerce and Internet Marketing to boost their product sales.

2. Challenges and opportunities for Vietnamese Marketing on the Internet.


E-commerce in Vietnam has a short history compared with the world. It is officially implemented in the year 2006 after completing the phase of forming and acceptance. Since then, the speed of E-commerce growth in Vietnam is rapid with various support activities, for instance, bidding, E-commerce ranking program and electronic customs. Recently, some newly-appeared e-commerce modes have been developed fast like mobile business or online entertainment. However, the E-commerce forms in Vietnam now have grown in an unbalanced structure because the transactions are mainly B2C. Moreover, the infrastructure in Vietnam has not fully developed in comparison with developing countries in SEA like Thailand or Malaysia. Some other issue are raising in Vietnamese E-commerce is weak legal documents, the relationship of E-commerce to other organizations and such technical problems as information and network quality, certificate of e-signature, In years to come, Vietnam is promised to be a potential market for many business fields including E-commerce. To take advantage this business, the government should pay more attention to legal documents and strengthen relationship with large organizations. In addition, we should study from the experience of developed countries. Only by this way do we succeed in E-commerce in the near future.

Advanced Finance 51A- Group No.3

22

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

REFERENCES
1. Rainer & Cegielski. (3rd Edition). Chap.6: E-commerce and E-Business. In Introduction to Information Systems: Supporting and Transforming Business (pp. 196-223). John Wileys & Sons, Inc. 2. Wikibooks. (n.d.). E-Commerce and E-Business/Concepts and Definitions. [online] Available at: http://en.wikibooks.org/wiki/E-Commerce_and_E Business/Concepts_and_Definitions [Accessed 16 Feb 2012] 3. Anonymous, 2008, The history and evolution of E-commerce [online]. Available at: http://ecommerze.wordpress.com/2008/06/12/the-history-and-evoltion-of-e-commerce/ [Accessed 16 Feb 2012] 4. 2009, Benefits and Limitations of E-business [online] Available at: http://www.witiger.com/ecommerce/benefits-limitations.htm [Accessed 20 Feb 2012] Mike Wall, 2009, Internet Marketing vs. Traditional Marketing [online] Available at: http://www.edreamz.com/blog/post.cfm/traditional-marketing-vs-internet-marketing [Accessed 18 Feb 2012] Wikipedia, 2008, Internet Marketing [online] Available at: http://en.wikipedia.org/wiki/Internet_marketing [Accessed 18 Feb 2012] Wisegeek, What are some Common Internet Marketing Strategies? Internet Marketing vs. Traditional Marketing [online] Available at: http://www.wisegeek.com/what-are-some-common-internetmarketing-strategies.htm [Accessed 18 Feb 2012] Quirk, What is e-Marketing and how is it better than traditional marketing? [online] Available at: http://www.quirk.biz/resources/88/What-is-eMarketing-and-how-is-it-better-thantraditional-marketing;jsessionid=E6B80E98193AFC29FD204FF43737A710.sybaris_jboss [Accessed 18 Feb 2012] 5. The Future of E-commerce [online] Available at http://www.kronikmedia.co.uk/blog/future-ofecommerce/277/ [Accessed 18 Feb 2012] 6. Sramana Mitra, The Future of E-commerce [online] Available at http://www.forbes.com/2009/04/30/ecommerce-amazon-ebay-technology-internet-ecommerce.html [Accessed 18 Feb 2012]

Advanced Finance 51A- Group No.3

23

IS 300 REPORT

ECOMMERCE MARKETING ON THE INTERNET

7. Trn Thanh Hi, Bo co thng mai in t Vit Nam [online] Available at http://www.docstoc.com/docs/22164353/B%C3%A1o-c%C3%A1o-Th%C6%B0%C6%A1ng-m %E1%BA%A1i-%C4%91i%E1%BB%87n-t%E1%BB%AD-Vi%E1%BB%87t-Nam-n%C4%83m [Accessed 19 Feb 2012]

Advanced Finance 51A- Group No.3

24

Оценить