Internet Marketing and E-commerce
Electronic commerce, commonly known as e-commerce or eCommerce, consists of the buying and selling of products or services over electronic s. 2 Is the Internet economy synonymous with e-commerce and e-business? . This is the type of e-commerce that deals with relationships between and among. Differences or Relationship between E-Commerce and E-Business are some of the differences or relationship between an e-commerce and e-business.
E-Commerce and E-Business/Concepts and Definitions
Therefore business requires both. Internet marketing and E-commerce both deals with online transactions. Internet marketing is a part of e-commerce. Internet marketing is similar to e- commerce online marketing or e- commerce website marketing. Internet marketing is associated to various business models. It comprises of e-commerce business model where goods and services are sold directly to consumers B2Cbusinesses B2B or from one consumer to other consumer C2C.
Difference between Internet Marketing and E-commerce: Some people say that Internet marketing and e-commerce are same but there is a slight difference between these two terms.
E-commerce is a wider concept than internet marketing, Internet marketing only deals with business transactions carried through internet, e-mails, search engines whereas e-commerce carries business transactions through various electronic mediums like internet, mobiles, telephones, fax machines, ATMs, credit cards. Internet marketing looks from the advertising and branding perspective, it tries to grab the attention of the customers by attractive designs and ads whereas e-commerce looks from the shop-keeper perspective it tries to figure out how the customers will search the product, who will buy it, what features, functionality and prices would the customers accept.
Internet marketing ties together the technical and creative aspect of internet, including designing, development sales and advertising. E-commerce marketing is considered to be the sales aspect of e-business; it includes exchange of data to facilitate the financing and payment aspect of business transactions. The quality of work was ecstatic, with great content and valuable information.
My best ever experience. Internal integration, on the other hand, is the networking of the various departments within a corporation, and of business operations and processes. This allows critical business information to be stored in a digital form that can be retrieved instantly and transmitted electronically. Internal integration is best exemplified by corporate intranets. The e-hub serves as the center for management of content and the processing of business transactions with support services such as financial clearance and information services.
Because of this very important link, SESAMi reaches an extensive network of regional, vertical and industry-specific interoperable B2B e-markets across the globe. Corporations are encouraged to use e-commerce in marketing and promotion to capture international markets, both big and small. The Internet is likewise used as a medium for enhanced customer service and support. It is a lot easier for companies to provide their target consumers with more detailed product and service information using the Internet.
Close to a third of the 1. To enhance customer service, Submarino has diversified into offering logistical and technological infrastructure to other retailers, which includes experience and expertise in credit analysis, tracking orders and product comparison systems.
The development of ICT is a key factor in the growth of e-commerce. For instance, technological advances in digitizing content, compression and the promotion of open systems technology have paved the way for the convergence of communication services into one single platform.
This in turn has made communication more efficient, faster, easier, and more economical as the need to set up separate networks for telephone services, television broadcast, cable television, and Internet access is eliminated.
At present the high costs of installing landlines in sparsely populated rural areas is a disincentive to telecommunications companies to install telephones in these areas. Installing landlines in rural areas can become more attractive to the private sector if revenues from these landlines are not limited to local and long distance telephone charges, but also include cable TV and Internet charges.
This development will ensure affordable access to information even by those in rural areas and will spare the government the trouble and cost of installing expensive landlines.
For e-commerce to be a competitive alternative to traditional commercial transactions and for a firm to maximize the benefits of e-commerce, a number of technical as well as enabling issues have to be considered. A typical e-commerce transaction loop involves the following major players and corresponding requisites: The Seller should have the following components: A corporate Web site with e-commerce capabilities e.
Banking institutions that offer transaction clearing services e. For business-to-consumer transactions, the system must offer a means for cost-efficient transport of small packages such that purchasing books over the Internet, for example, is not prohibitively more expensive than buying from a local store ; and Authentication authority that serves as a trusted third party to ensure the integrity and security of transactions.
Consumers in a business-to-consumer transaction who: Form a critical mass of the population with access to the Internet and disposable income enabling widespread use of credit cards; and Possess a mindset for purchasing goods over the Internet rather than by physically inspecting items.
A legal framework governing e-commerce transactions including electronic documents, signatures, and the like ; and Legal institutions that would enforce the legal framework i. And finally, the Internet, the successful use of which depends on the following: For e-commerce to grow, the above requisites and factors have to be in place. The least developed factor is an impediment to the increased uptake of e-commerce as a whole. For instance, a country with an excellent Internet infrastructure will not have high e-commerce figures if banks do not offer support and fulfillment services to e-commerce transactions.
In countries that have significant e-commerce figures, a positive feedback loop reinforces each of these factors. As a technical infrastructure, it is a global collection of networks, connected to share information using a common set of protocols.
Also, as a vast network of people and information, the Internet is an enabler for e-commerce as it allows businesses to showcase and sell their products and services online and gives potential customers, prospects, and business partners access to information about these businesses and their products and services that would lead to purchase.
Before the Internet was utilized for commercial purposes, companies used private networks-such as the EDI or Electronic Data Interchange-to transact business with each other. That was the early form of e-commerce.
However, installing and maintaining private networks was very expensive. With the Internet, e-commerce spread rapidly because of the lower costs involved and because the Internet is based on open standards.
In this context, corporate functions, decisions and processes involving e-commerce activities are more coherent and organized. The proliferation of intranets has caused a shift from a hierarchical command-and-control organization to an information-based organization. This shift has implications for managerial responsibilities, communication and information flows, and workgroup structures. Aside from reducing the cost of doing business, what are the advantages of e-commerce for businesses?
It enables start-up and small- and medium-sized enterprises to reach the global market. Leveling the Playing Field through E-commerce: The Case of Amazon. It does not have a single square foot of bricks and mortar retail floor space. To be fair, Amazon has yet to turn a profit, but this does not obviate the point that in many industries doing business through e-commerce is cheaper than conducting business in a traditional brick-and-mortar company.
However, this does not discount the point that without a good e-business strategy, e-commerce may in some cases discriminate against SMEs because it reveals proprietary pricing information. A sound e-business plan does not totally disregard old economy values. The dot-com bust is proof of this.
Difference between Ebusiness and Ecommerce ConceptSimplified-Simplifying Concepts
Majority of these were e-commerce and content companies. The shutdown of these companies was followed by the folding up of Internet-content providers, infrastructure companies, Internet service providers, and other providers of dial-up and broadband Internet-access services. The crash began when investors started demanding hard earnings for sky-high valuations.
The Internet companies also spent too much on overhead before even gaining a market share. E-commerce applications in this area include easy-to-use ordering systems that allow customers to choose and order products according to their personal and unique specifications.
The benefits of network production include: With network production, a company can assign tasks within its non-core competencies to factories all over the world that specialize in such tasks e. How is e-commerce helpful to the consumer?
E-commerce allows for a faster and more open process, with customers having greater control. E-commerce makes information on products and the market as a whole readily available and accessible, and increases price transparency, which enable customers to make more appropriate purchasing decisions. How are business relationships transformed through e-commerce?
E-Commerce and E-Business/Concepts and Definitions - Wikibooks, open books for an open world
How does e-commerce link customers, workers, suppliers, distributors and competitors? To manage the chain of networks linking customers, workers, suppliers, distributors, and even competitors, an integrated or extended supply chain management solution is needed. Supply chain management SCM is defined as the supervision of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.
It involves the coordination and integration of these flows both within and among companies.Advantages and Disadvantages of eBusiness You Need to Understand
The goal of any effective supply chain management system is timely provision of goods or services to the next link in the chain and ultimately, the reduction of inventory within each link. The product flow, which includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs; The information flow, which involves the transmission of orders and the update of the status of delivery; and The finances flow, which consists of credit terms, payment schedules, and consignment and title ownership arrangements.
Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise, called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company. Shared data resides in diverse database systems, or data warehouses, at several different sites and companies. It also allows all parties in the supply chain to better manage current resources and plan for future needs.
Old Economy Relationships vs. It is Google's number 1 source of revenue.
What Is the Difference Between E-Business & E-Commerce?
AdSense is used to advertise when users type in key words in Google's search engine. Ads are placed on the right hand side of the screen. The ads are text based and allow for links to the website on the advertisement as well.
The AdWords program determines the pricing for key words. AdWords is based on a Vickrey auction system. It is a sealed-bid auction, users submit bids not knowing what other users bid.
The highest bidder wins but the second place person's bid is paid. There are pros and cons to this type of auction. The winners the vast majority of the time are the ones who bid the highest. A downside to this type of system is that there is no price discovery, which is a market failure known as imperfect information.
AdSense users generate revenue by having users click on their links and by having them buy what is offered on their website. AdSense has been a huge success for Google and the users of the system.