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Summary Ditigal Business and E-commerce Management Chaffey
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Digital Business and E-commerce Management Chaffey
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Summary | E-businessChapter 1 | Introduction to digital business and e-commerce
Introduction
Three disruptive technologies (= technologies which offer opportunities for businesses for
new products and services for customers and can transform internal business processes) that
have transformed the businesses:
- The internet = the physical network that links computers across the globe.
- World Wide Web (www) = The most common technique for publishing information on
the Internet html encoded text.
- Wireless communications = Electronic transactions and communications conducted
using mobile devices with wireless connection.
Important because new challenges and opportunities arise every day.
In order to make their business more competitive business undergo a digital business
transformation (= signification changes to organisational processes, structures and systems,
implemented to improve organisational performance through increasing the use of digital
media and technology platforms).
Two key opportunities of digital transformation open to most businesses are:
- Inbound marketing: the consumer is proactive in actively seeking out information for
their needs, and interactions with brands are attracted through content, search and
social media marketing. pull! Inbound marketing is powerful because wastage is
reduced! Tools to target prospects with a defined need:
o Search marketing
o Content marketing
o Social media marketing - The main types of social sites are:
▪ Social networking: (e.g. Facebook)
▪ Social knowledge: (e.g. Google)
▪ Social sharing (e.g. Book review site)
▪ Social news: (e.g. Twitter)
▪ Social streaming: (e.g. YouTube)
▪ Company user- generated content and community
- Mobile marketing: electronic transactions and communications conducted using
mobile devices such as smartphones and tables, and typically with a wireless
connection.
E-commerce
E-commerce = all electronically mediated information exchanges between an organization
and its external stakeholders. buying and selling through the internet.
There are 4 different perspectives to look at e-commerce:
1. A communications perspective: the delivery of information, products or services or
payment by electronic means.
2. A business process perspective: Application of technology towards the automation
of business transactions and workflows.
3. A service perspective: enabling cost cutting at the same time as increasing the speed
and quality of service delivery.
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, 4. An online perspective: the buying and selling of products and information online.
Also pre-sale and post-sale activities across the supply chain.
When evaluating the strategic impact of e-commerce on an organization we look at the buy-
side and the sell-side of e-commerce.
Social commerce (=a subset of e-commerce which encourages participation and interaction
of customers in rating, selecting and buying products through group buying) is an increasingly
important part of e-commerce for site owners. group buying using services like Groupon.
E-business
Digital business (e-business) = the transformation of key business processes through the
use of internet technologies. digital business is boarder in its scope than e-commerce.
Intranets and extranets
Intranet = a private network within a single company using internet standards to enable
employees to access and share information using web published technology
Extranet = a service provided through the internet and web technology delivered by extending
an intranet beyond a company to customers, suppliers and collaborators.
Different types of sell-side e-commerce
Sell-side of e-commerce = both selling products and services online!
Not every product is suitable for sale online, therefore five main types of online presence:
1. Transactional e-commerce sites: enable purchase
2. Services-oriented relationship-building websites: information to stimulate purchase
and build relationships (particularly services that are not suitable for online sales).
3. Brand-building sites: experience of a brand!
4. Publisher of media sites: information, news or entertainment and often include
advertising, commission based sales or sales of customer data.
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, 5. Social network sites (SNS): also supported by advertising (e.g. Facebook, LinkedIn,
twitter etc.). --> to develop user-generated content (UGC) and to exchange messages
and comments between different users.
E-marketing
Digital marketing (e-marketing) = the management and execution of marketing using
electronic media such as the web, email, TV and mobile media in combination with digital data
about customers’ characteristics and behavior.
Media channels for companies to reach their audience online
1. Paid media (advertising)
2. Earned media (publicity, word of mouth)
3. Owned media (Facebook account, websites etc)
* Overlaps require integration of campaigns
Digital media channels
Digital media channels = online communications techniques used to achieve goals of brand
awareness, familiarity, favorability and to influence purchase intent by encouraging users of
digital media to visit a website to engage with the brand or product and ultimately to purchase
online or offline through traditional media channels such as by phone or in-store.
The main types of digital media channels for reaching audiences:
1. Search engine marketing: encourage search click through to the website!
▪ Pay-per-click (PPC) = company pays for text adds to be displayed on the
search engine results.
▪ Search engine optimisation (SEO) = a structured approach used to increase
the position of a company or its products in search engine natural or organic
results listings.
2. Online PR: maximizing favorable mentions and interactions with a company’s brands
products or websites using third-party sites.
3. Online partnership: creating and managing long-term arrangements to promote your
online services on third-party websites or through email communications.
4. Interactive advertising: use of online ads such as banners and rich media ads to
achieve brand awareness and encourage clickthrough to a target site.
5. Opt-in email marketing: tenting email lists or placing ads in third-party e-newsletters
or the use of an in-house list for customer activation and retention.
6. Social media marketing: encouraging customer combinations on a company’s own
site, or a social presence (Facebook, Twitter, etc) or specialist publisher sites (blogs
etc.)
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, * Offline communications should also be reviewed for their role in driving visitors to a company
website of social network presence.
It should not be technology that drives digital marketing, but the business
opportunities!
Digital marketing is most effective when it is integrated with other communication channels.
So, the role of the internet is supporting multichannel and omnichannel marketing and
multichannel marketing strategy.
Multichannel and omnichannel marketing = customer communications and product
distribution are supported by a combination of digital and traditional channels at different points
in the buying cycle (using both offline and onlinemethods). Omnichannel references the
importance of social media and mobile-based interactions in informing purchase. Online
channels should be used to support the whole buying process or customer journey.
Digital business opportunities
New opportunities to compete in the global market place.
Three characteristics of information which, when combined with disruptive internet
technologies, can have a major impact on a market place are:
- Reach (the potential number of customer a business can interact with)
- Richness (the information itself)
- Affiliation (the effectiveness of links with partners).
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