E-Commerce

Electronic Commerce is an emerging

concept that describes the process of
buying and selling or exchanging of
products, services and information over
electronic system such as computer
networks or Internet
cope of Electronic Commerce
The mainstream of E-Commerce consists of
these three areas, these are

Electronic
Market

EDI Internet
Commerce
Electronic Market
An electronic market is the use of Information
and Communication Technology to present a
range of offerings available in a market segment.

For Example : Air-line booking system.

Electronic Data Interchange (EDI)
EDI is used by organizations for transactions that
occur on a regular basis according to a pre-
determined format. It involves exchange of electronic
business documents, i.e., purchase orders, invoices
etc. EDI transactions are carried through special EDI
software.
ëey features of EDI includeO

No paper work
No human intervention
Exchange of information takes place in seconds
Internet Commerce :

Information and communication

technologies can also be used to advertise
goods and services.
The Internet can, for example, be used for
purchasing of books that are then delivered
by post.
E-Commerce and Trade Cycle
Trade Cycle
Search
Pre-Sale
Negotiate
Order
Execution
Deliver
Invoice
Settlement
Payment
After sale After Sale








— common classification of EC is by the nature of transaction:


  
 (): electronic market
transactions that take place between organizations


   (): retailing transactions
with individual shoppers ² typical shopper at
—mazon.com is a consumer
    (: consumer sells
directly to consumers, examples -individuals selling
in classified ads, auction sites allowing individuals to
put up items for auction ² e.g, e-bay

   
 (: individuals who
sell products or services to organizations and those
who seek sellers and conclude a transaction
E-Commerce and Trade Cycle

Trade cycle has to support :

þ
inding goods or services appropriate to the
requirement and agreeing the terms of trade
 Placing the order, taking delivery and
making payment
 After-sale activities such as Warranties,
services etc
Competitive Advantage
A competitive advantage is an advantage over
competitors gained by offering consumers
greater value, either by means of lower prices
or by providing greater benefits and service
that justifies higher prices.
Three basic types for competitive
advantage are

Cost leadership
Differentiation
Focus
Cost Leadership

Most leadership is simply to be able to

sell the goods or services at a price that is
lower than that of the competition
 Differentiation

Differentiation is where the goods or

services provided have some quality that
makes them more affective than competing
products
Focus

achieving focus means that a firm sets

out to be best in a segment or group of
segments
_alue - Chain
The web of trade relationships is referred to
as the supply chain or the value chain.
ub-Assembly
upply Whole ale

Manufacture
upplement
upply Retail
_alue - Chain

In 1985 Michael Porter

introduced a generic value chain
model that comprises a sequence
of activities found to be common
to a wide range of firms
_alue - Chain
Inbound Logistics: the receiving and warehousing of
raw materials, and their distribution to
manufacturing as they are required.
Operations: the processes of transforming inputs
into finished products and services.
Outbound Logistics: the warehousing and
distribution of finished goods.
Marketing & ales: finding out the requirements of
potential customers and letting them know of the
product and services that can be offered
ervice: Any requirement for installation or advice
before delivery and then after-sale service.
These primary activities are supported by:
The infrastructure of the firm: organizational
structure, control systems, company culture,
Human resource management: employee
recruiting, hiring, training, development, and
compensation.
Technology development: technologies to
support value-creating activities.
Procurement: purchasing inputs such as
materials, supplies, and equipment
trategic Implementation of
E-Commerce

Strategic Implementation divides

implementation into the Technical and
the Business aspects
Technical Implimentation

In approach to technical
implementation of e-commerce,
system depends on the business
objectives, business requirements and
the technologies that have been
selected
Business Implementation
System builds e-shop, also organization
needs to
 Put in place to business infrastructure
to support the new- e-commerce
facility
 arket the new e-commerce facility to
the intended users
e-shop ?

or e-commerce applications that are
selling goods or services the internet
application, held on the servers, is an
e-shop
eatures of e-shop:
 Mustomer Registration Encryption
Dynamic web-pages Online Help
Shopping basket
 ultiple payment options
Online Delivery
Concept of Management
anagement is process of reaching
organization goals, by working with
and through human & nonhuman
resource to improve value added
benefits
We anage 4 s ( oney, an,
achine, and aterial)
1. Accomplishment of results, through the efforts
of other people.
2. Getting things done.
3. Art of decision making and leadership.
4. Forecast , plan, organize, command , co-
ordinate
5. Knowing what you want to do and can do in the
best and cheapest way.
6. Function of an enterprise which concerns itself
with the direction and control of various
activities to attain the business objectives.
Functions of Management

 Planning
 Organizing

eading
 Staffing and Training
 Montrolling
Planning

Planning is deciding in advance what to

do, how to do it, and who is to do it
The goals and objectives are described
Types of Planning
þ Organizational Planning:
Done by Top-management It creates
framework for employees and services
 Divisional/ Departmental Planning
Moncerned with determining the scope of
activities and goals assigned to each
division
Time-Frame of Planning
þ
ong-Term Planning:
Broad technical and competitive aspects
between 5 to þ5 years are planned
Risk
actor due to technological changes or
Govt: policies

 edium-Term Planning
Purchase of aterial, production, labour,
expenses are planned for  to 5 years
Time-Frame of Planning

 Short-Term Planning
Inventory planning and control, employees
training, work methods etc are planned for
less than a year period
Organizing

It is performed to assemble and arrange

the necessary resources, which can be
man, money, and machinery and to
assign work to be performed
Organizing includes
þ Identifying the work
 Division of work
 Grouping of activities
4 Assigning the duties
5 Defining Relationship
taffing
The recruitment of each organizational
position, that of managers and
operators with effective selection of the
most competent personnel full of
efficiency
Objective : Right man on right place
and on right time
Leading
The anagerial functions anager is
directing which shows your sub-
ordinate a path to success A manager
must have art of
eadership which
gives directions and guidelines to
workers to achieve the Goal
Controlling
Montrolling is basically checking
current performance against
predetermined standards to ensure the
adequate progress and satisfactory
performance
Montrol over policies

Montrol over Organization

Montrol over personnel

Montrol over cost and expenses, salaries

Montrol over research and development

R

   

 
 


 
!"#$
%"
&
'
()
*#
()

+
,-


8. Year-End Financial tatements, Tax Returns, and Audits

9. Assistance to the Board of Directors

10. Emergencies:

11. Annual Association Meeting:

12. Establishments of Files

13. Bank Accounts

14. Annual Budget:

15. Insurance
Marketing
arketing is "an organizational function
and a set of processes for creating,
communicating and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization"
Marketing

arketing is the process of planning and

executing the conception, pricing,
promotion, and distribution of ideas,
goods, and services to create exchanges
that satisfy individual and organizational
objectives
LE_EL OF MARKETING
Two Levels of Marketing

trategic Marketing
Strategic arketing attempts to determine how an
organization competed against its competition in a market
place In particular, it aims at generating a competitive
advantage relative to its competition

Operational Marketing
Operational arketing executes marketing functions to
attract and keep customers and to maximize the value
derived from them This includes the determination of the
marketing mix, advertising execution etc
The marketing concept
V choosing and targeting appropriate
customers
V positioning your offering
V interacting with those customers
V controlling the marketing effort
V continuity of performance
Marketing Environment
The marketing environment surrounds
and impacts upon the organization. There
are three key perspectives on the
marketing environment, namely
1. 'macro-environment,µ
2. 'micro-environmentµ
3. 'internal environment'.
Marketing Environment
Macro-Environment
This includes all factors that can influence and
organization, but that are out of their direct
control A company does not generally influence
any laws (although it is accepted that they could
lobby or be part of a trade organization) It is
continuously changing, and the company needs
to be flexible to adapt There may be aggressive
competition and rivalry in a market arketer
needs to compensate for changes in culture,
politics, economics and technology
Micro-Environment
This environment influences the organization
directly It includes suppliers that deal directly
or indirectly, consumers and customers, and
other local stakeholders In this context, micro
describes the relationship between firms and the
driving forces that control this relationship It is
a more local relationship
Internal Environment

All factors that are internal to the organization

are known as the 'internal environment' They
are generally audited by applying the '
ive s'
which are en, oney, achinery, aterials
and arkets The internal environment is as
important for managing change as the external
As marketers we call the process of managing
internal change 'internal marketing '
Kinds of Markets
There are four main kinds of market:

Industrial markets: the market for manufactured

products aimed at businesses, i e capital goods e g
engineering, construction 
Consumer markets: the market for goods and services
that are sold to households e g clothing, shampoo,
holidays
Commodity markets ± market for primary products or
raw materials e g steel, coal, coffee
Financial markets: the market for services that dealing
with money e g banking, insurance, accounting
Marketing Mix
A cake mix All cakes contain eggs,
milk, flour, and sugar However, you can
alter the final cake by altering the
amounts of mix elements contained in it
So for a sweet cake add more sugar! It is
the same with the marketing mix The
offer you make to you customer can be
altered by varying the mix elements
Four P's of the marketing mix

Product
The Product management and Product marketing
aspects/part/feature of marketing deal with the
specifications of the actual good or service, and
how it relates to the end-user's needs and wants

Pricing: This refers to the process of setting a

price for a product, including discounts
Promotion:
This includes advertising, sales promotion, publicity,
and personal selling, and refers to the various
methods of promoting the product, brand, or
company
Placement or distribution refers to how the
product gets to the customer; for example, point of
sale placement or retailing This fourth P has also
sometimes been called Place, referring to the channel
by which a product or service is sold (e g online vs
retail), which geographic region or industry, to which
segment (young adults, families, business people),
etc