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c. All rights reserved.

 E-Commerce Defined

• Involves business communications and transmissions

over networks and through computer means,
involving the buying and selling of products and
services and the transferring of funds through digital
communications.

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 E-Commerce Perspectives

• Communication perspective, the delivery of

information, products, services or payments
via telephone or computers.
• Business process, the application of
technology.
• Service perspective, cost cutting measures
while improving quality, and speed of service.
• Online perspective, the ability to buy and sell
products and information on the internet.

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Types of E-Commerce

E-commerce can play a

pivotal role across all
functional areas of the
business.

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 The “Hype” and Reality of E-Commerce

Many companies
Internet decisions
have been based
on the hype and
new business
models resulting in
less than desirable
results.

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 What Is The Internet

• A communications device.
• An alternative distribution channel.
• A means to deliver services.
• A tool for gathering marketing research data.
• A method for integrating the supply chain.

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 Internet Advantages

1. Effectively serve customers.

2. Ability to communicate information.
3. Lowering the cost of doing business.

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Questions to Guide
E-Commerce
Strategy
Formulation

The illustration shows

the framework that
outlines important
strategic and tactical
questions that surround
e-commerce strategies.

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The Internet can be an effective tool in providing information as well as stimulating
action by the customer as demonstrated by this web site.
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The design of the web site
becomes more complicated as
additional objectives are stated
by top management.

Additional considerations in the

planning process for the web site
are the needs of the target
market for the web site.

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Guidelines for Developing an Effective Web Site

In order to develop an
effective web site the
designer must think
like the end user.

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 Digital Channel Advantages

• Can be customized to the buyer’s need.

• Provides a wide range of referral sources.
• The internet is always open for business.

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 Phases of E-Commerce

• Online information…most basic, like a

product catalog.
• Database publishing…the user is provided
with search capabilities.
• Customer self-service…provides customized
information for specific users.
• Transactions…most complex phase, provides
for full transactions.

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 Recap

• The internet is just one component of the

business marketer’s overall strategy and must
be integrated into the firms overall strategy.

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