E-COMMERCE AND DIGITAL MARKETS

UNIT I

What is Ecommerce?
Ecommerce, also known as electronic commerce or internet commerce, refers to the
buying and selling of goods or services using the internet, and the transfer of money
and data to execute these transactions. Ecommerce is often used to refer to the sale of
physical products online, but it can also describe any kind of commercial transaction
that is facilitated through the internet.

The history of ecommerce begins with the first ever online sale: on the August 11,
1994 a man sold a CD by the band Sting to his friend through his website Net
Market, an American retail platform. This is the first example of a consumer
purchasing a product from a business through the World Wide Web—or
“ecommerce” as we commonly know it today.
ecommerce is a digital platform which enables them to sell their goods and
services at a scale that was not possible with traditional offline retail
Global retail ecommerce sales are projected to reach $27 trillion by 2020.
Types of Ecommerce Models
1. Business to Consumer (B2C):
When a business sells a good or service to an individual consumer (e.g. You buy
a pair of shoes from an online retailer).

2. Business to Business (B2B):

When a business sells a good or service to another business (e.g. A business
sells software-as-a-service for other businesses to use)  

3. Consumer to Consumer (C2C):

When a consumer sells a good or service to another consumer (e.g. You sell
your old furniture on eBay to another consumer).

4. Consumer to Business (C2B):

When a consumer sells their own products or services to a business or
organization (e.g. An influencer offers exposure to their online audience in
exchange for a fee, or a photographer licenses their photo for a business to use).
The Vision and Forces behind E-Commerce
FOR MERCHANTS
E-commerce is quite helpful because they get to reduce their advertisement
costs and increase their customer base through online stores

FOR CUSTOMERS
everything is a click away, from bottled water to cars, everything can be bought
online. Some things can even be customized to order (PCs, shirts, etc.)
• FOR THE ECONOMY
E-commerce is new and innovative and is encouraging competition in different
fields.
• The growth of technology and the wide spread of smartphones is encouraging
e-commerce from Uber to eBay. E-commerce is everywhere we go and is
involved in everything we do.
UNDERSTANDING E-COMMERCE
 E-commerce is above all else a technologically driven phenomenon that relies
on a host of information technologies
To truly understand e-commerce, you will need to know something about packet
switched communications, protocols such as TCP/IP, client/server and cloud
computing, mobile digital platforms, Web servers, HTML5, CSS, and software
programming tools such as Flash and JavaScript on client side, and Java, PHP,
Ruby on Rails, and ColdFusion on the server side.
E-COMMERCE ORGANIZING THEMES
Organizing Themes Technology: Development and mastery of digital
computing and communications technology
Business: New technologies present businesses and entrepreneurs with new
ways of organizing production and transacting business
Society: Intellectual property, individual privacy, and public policy
Understanding E-Commerce: Organizing ThemesTechnology: Development and
mastery of digital computing and communication technology Business: New
Technologies present businesses with new ways of organizing productions and
transacting business Society: Intellectual property, individual privacy, public
welfare policy
The Advantages of Electronic Commerce
 Faster buying process.
 Store and product listing creation.
 Cost reduction.
 Affordable advertising and marketing.
 Flexibility for customers.
 No reach limitations.
 Product and price comparison.
 Faster response to buyer/market demands.

Disadvantages of Electronic Commerce

 Security. The biggest drawback of e-commerce is the issue of
security. ...
 Lack of privacy. Many websites do not have high encryption for secure
online transaction or to protect online identity. ...
 Tax issue. ...
 Fear. ...
 Product suitability. ...
 Cultural obstacles. ...
 High Labour cost. ...
 Legal issues.
E-commerce business models can generally be categorized into the following
categories.

 Business - to - Business (B2B)

 Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)
 Government - to - Citizen (G2C)

What is value proposition in e commerce?

 In marketing, a value proposition is a statement that clearly identifies
clear, measurable and demonstrable benefits prospects get when buying
your product or service. You'll typically come across an e-commerce
value proposition on homepages, product descriptions, Facebook ads,
among other places.
REVENUE MODEL IN E COMMERCE

Identify eCommerce Market Opportunities 

Selling successfully through eCommerce sales channels (website, social,

marketplace, 3rd party) requires an understanding of market entry
strategy and eCommerce best practices from an export mechanics (overseas
online sales=exports) standpoint. 
 
To identify market opportunities, it is important to evaluate key factors such as: 

 Political, economic and competitive environments

 Market access 
 Product potential
 Local distribution and production 
 Social/cultural and demographic/physical environments 

Conduct your own eCommerce market research with available website analytics

tools to help you narrow your top 3 markets, or contact an International Trade
Specialists near you for free export and digital strategy counselling.

Competitive Environment: Definition

A competitive environment is the dynamic external system in which a business
competes and functions. The more sellers of a similar product or service, the
more competitive the environment in which you compete. Look at fast food
restaurants - there are so many to choose from; the competition is high.
However, if you look at airlines servicing Hawaii, very few actually fly to the
islands.
Direct competitors are businesses that are selling the same type of product or
service as you. For example, McDonalds is a direct competitor with Burger
King. Indirect competitors are businesses that still compete even though they
sell a different service or product. The products or services offered by indirect
competitors tend to be those that can be substituted for one another. Again,
considering travel, you have the option to travel by plane, train, or car.
Therefore, airlines are also competing with train lines and buses (assuming the
travel does not go overseas)
Competitive Advantage
To achieve a competitive advantage is the goal of all business strategy. It
means that a company either provides a better solution to a specific problem
than its competitors or offers a similar kind of solution for a lower price and is
a marketing concept. A business unit is said to have achieved competitive
advantage when it “sustains profits that exceed the average for its industry”

Four characteristics of a competitive advantage*

 Significance
 Perceptibility
 Profitability
 Defensibility

Low-Cost Ecommerce Marketing Strategies

1. Optimize Your Site for Search
2. Include Reviews on Product Pages
3. Use Content Marketing
4. Guest Post
5. Market on Social Media
6. Put Influencers to Work for You
7. Start Email Marketing
8. Create a Shoppable Instagram

PPC(Pay-per-click) Ecommerce Marketing Strategies

1. Google AdWords
2. Facebook & Instagram Ads
3. Promoted Pins
4. Retargeting

The High-Tech Ecommerce Strategies

1. Develop an App with Push Notifications

2. Target Virtual Reality Technologies
ORGANIZATIONAL DEVELOPMENT OF E COMMERCE

 
UNIT 2
What is B2C e-commerce?
Business-to-consumer e-commerce, commonly known as B2C e-commerce, is the
online sale of a product or service from a business to an end-consumer.
Business to Consumer (B2C or B to C) is the method of doing commerce where
businesses trade and transact with directly with end customers who buy the product
for consumption.
Take the case of a fast-food chain. This company is said to follow the B2C model
since it is a business that serves consumers and individuals, not other businesses.

What are the benefits of B2C e-commerce?

 No need for a physical presence

 Gathering data

 Increased business opportunities:

 Personalizing your marketing:

Product-Based B2C Model

 Service-Based B2C Model

 Software-Based B2C Model

 Product-Focussed” Software-Based B2C Model- Adobe and Microsoft

 “Service-Focussed” Software-Based B2B Model- Netflix and Spotify 

 Online B2C Models

 Advertising-Based B2C Model- could be a website, blog or forum

 Community-Based B2C Model -take Facebook – it helps connect and

build online communities among its users which then leverages to
promote their products to earn money via the platform.

 B2C Ecommerce

B2C ecommerce is where businesses sell (and buy) goods to consumers and
individuals
  Direct sellers – In this model, consumers purchase goods directly from
the manufacturers via their online retailers. Example: Supreme’s Online
Store.

 Online intermediaries – As the name suggests, these are online

ecommerce platforms that help bring together the buyers and sellers

What is B2B e-Commerce?

Definition
B2B e-Commerce is short for business-to-business e-Commerce, which is
defined as the sales of goods or services between businesses via online channels.
Instead of receiving orders in the traditional ways (by telephone or mail),
transactions are carried out digitally, which helps reduce a great amount of
overhead costs

6 Benefits of Ecommerce for B2B Firms

 Increased Reach. The B2B portals of ecommerce offer a way of
increasing reach to customers and making your organization and products
known by more potential customers. ...
 Streamlining, transparency and efficiency. ...
 Better management of suppliers and customers. ...
 More sales. ...
 Analytics. ...
 Better sales engagement

Basic Models in B2B eCommerce

1. Supplier Oriented Marketplace (eDistribution)

2. Buyer Oriented Marketplace (eProcurement)

3. Intermediary Oriented Marketplace (eExchange)

Conclusion: The Future is B2B

While B2C businesses, brands, and investments have gotten the lion’s share of
attention since the early days of the Internet, B2B eCommerce is here to stay
and it’s slowly but surely growing in size to dwarf the B2C market.

Solutions for the B2B market are considerably more complex. And they often
require a change in the mindset of the people behind small and medium-sized
businesses. Moreover, these businesses make up the bulk of industry on just
about every continent.

However, B2B eCommerce enjoys economies of scale and the long-term

personal relationships behind each buyer and seller means that the future is
clearly B2B.

Customer to Customer (C2C)

What Is Customer to Customer (C2C)?
Customer to customer (C2C) is a business model whereby customers can trade
with each other, typically in an online environment. Two implementations of
C2C markets are auctions and classified advertisements. C2C marketing has
soared in popularity with the arrival of the Internet and companies such as eBay,
Etsy, and Craigslist.

How Customer to Customer (C2C) Works

C2C represents a market environment where one customer purchases goods
from another customer using a third-party business or platform to facilitate the
transaction. C2C companies are a type of business model that emerged with e-
commerce technology and the sharing economy.

Advantages of C2C eCommerce

1. Low transaction cost

2. No intermediary
3. Wide reach
4. Round the clock availability

Limitations of C2C

1. Payment made has no guarantee

2. Notorious for scams
3. No standardisation

Types of Customer to Customer (C2C) Businesses

Craigslist is an e-commerce platform that connects people advertising
products, services, or situations. Craigslist not only provides a platform for
buying, selling, and trading products but posts monthly classified ads, such
as employment opportunities and property listings.

Etsy allows company owners to create their custom website on which to

market their products to consumers. The C2C site offers guidance and tools
for growing a business that ranges in price according to a company's stage of
 development. There's also a "Sell on Etsy" app that helps to manage orders,
listings, and customer queries efficiently.

eBay features two types of product listings: fixed-price items and auction
items. Fixed price items can be purchased quickly by selecting the Buy It
Now button. Auction items feature a Place Bid button for entering bids and
show a current bid price. These items are open to bids for a predetermined
time and are declared "sold" to the highest bidder

Peer-to-peer Business Model

The peer-to-peer business model’s purpose is to act as an intermediary between
individuals. It works as a matchmaker in the middle of two sides: one who has
something to offer (a product or service) and others who can benefit from this
offer.

Usually, the peer-to-peer business model involves a kind of platform that

provides contact between both sides, while establishes rules and regulations,
payment systems, and any kind of process that may be necessary for the
transaction to work out.

This third party reduces the risk of the seller to fail on delivery as well as the
buyer to fail on payment. Besides, it reduces production costs and investments,
allowing lower prices for the consumer.
Some of the most famous examples of companies based on peer-to-peer
business models are:

 Uber, Lyft, Blablacar: rideshare apps, who connect drivers/car owners

and riders.
 Fiverr, Freelancer, Upwork, Toptal, Guru: platforms who connect
freelancers and clients, in different areas, such as marketing,
translation, graphic design, and programming.
 eBay, Amazon, Etsy, Alibaba: sellers list their products for a small fee
(or free) and buyers purchase through the platform.
 Airbnb, Tripping, HomeToGo: the apps connect people who can earn
extra income by renting underutilized property to people who need
accommodation
Peer-to-peer business model’s advantages
 Costs
On a regular basis, all the production process involves countless expenses and
investments, which often cannot be afforded by the producers, especially when
we are talking about goods and services delivered by individuals.
Labor Specialization
The peer-to-peer business model allows individuals who are selling their
products or services to specialize more deeply in their area of expertise.

Risk Reduction
Political, social, and economic conditions are always uncertain, unstable, and,
therefore, involve risks.

What Is Mobile Commerce?

Mobile commerce, also known as m-commerce or mcommerce, is the use of
wireless handheld devices like cellphones and tablets to conduct commercial
transactions online, including the purchase and sale of products, online banking,
and paying bills. The use of m-commerce activity is on the rise. According to
market research company Statista, mobile commerce sales in the United States
were an estimated $207.2 billion in 2017.

M-COMMERCE (MOBILE COMMERCE)

M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless handheld devices such as smartphones and tablets. As a form of e-
commerce, m-commerce enables users to access online shopping platforms without
needing to use a desktop computer. Examples of m-commerce include in-
app purchasing, mobile banking, virtual marketplace apps like the Amazon mobile
app or a digital wallet such as Apple Pay, Android Pay and Samsung Pay. 

Over time, content delivery over wireless devices has become faster, more secure and
scalable. As of 2017 the use of m-commerce accounted for 34.5% of e-commerce
sales. The industries affected most by m-commerce include
 Financial services, which includes mobile banking 

 Telecommunications, in which service changes, bill

payment and account reviews can all be performed from the same
handheld device.
 Service and retail, as consumers are given the ability to place and pay for
orders on-the-fly.
  Information services, which include the delivery of financial news, sports
figures and traffic updates to a single mobile device.
Types of m-commerce

1. Finance and payments—Paytm

2. Catalogs-- IKEA offers customers a downloadable app that serves as an AR

catalog. 

3. Marketing--location-based mobile marketing 

4. Tickets and entertainment-- bookmyshow

5. Entertainment and games-- Games like Pokemon Go

6. Healthcare-- pharmacy-specific apps

Advantages of mobile commerce

 #1. Provides Easy Store Access
 #2. Better User Experience
#3. Creates a New Marketing Channel
#4. Location Tracking & Personalized Notifications
#5. Benefits with Traditional Retail Sales
 #6. Cost Reduction and Productivity
 #7. Attracts New Consumers
 #8. Higher ROI

ELECTRONIC PAYMENT SYSTEM

The electronic payment system has grown increasingly over the last decades due to
the growing spread of internet-based banking and shopping. As the world advances
more with technology development, we can see the rise of electronic payment
systems and payment processing devices. As these increases, improve, and provide
ever more secure online payment transactions the percentage of check and cash
transactions will decrease.

Electronic Payment Methods

One of the most popular payment forms online are credit and debit cards. Besides
them, there are also alternative payment methods, such as bank transfers, electronic
wallets, smart cards or bitcoin wallet (bitcoin is the most popular cryptocurrency).
E-payment methods could be classified into two areas, credit payment systems and
cash payment systems.

1. Credit Payment System

Credit Card — A form of the e-payment system which requires the use of the card
issued by a financial institute to the cardholder for making payments online or
through an electronic device, without the use of cash.

. Cash Payment System

Direct debit — A financial transaction in which the account holder instructs the
bank to collect a specific amount of money from his account electronically to pay
for goods or services.

E-check — A digital version of an old paper check. It’s an electronic transfer of

money from a bank account, usually checking account, without the use of the paper
check.

E-cash is a form of an electronic payment system, where a certain amount of

money is stored on a client’s device and made accessible for online transactions.

Stored-value card — A card with a certain amount of money that can be used to
perform the transaction in the issuer store. A typical example of stored-value cards
are gift cards.
Accumulated balance digital payment systems enable users to make micropayments and purchases
on the Web, accumulating a debit balance that they must pay periodically on their credit card or
telephone bills. IPIN has been widely adopted by online music sites that sell music tracks for 99 cents.
 How Does Online Credit Card Processing Work?

Transaction Security
An online transaction requires a consumer to disclose sensitive information to
the vendor in order to make a purchase, placing him-self at significant risk.
Transaction Security is concerned with providing privacy in transactions to the
buyers and sellers and protecting the client-server network from breakdowns
and third-party attacks. It basically deals with -

Client security - Techniques and practices that protect user privacy and
integrity the computing system.
Server security - Protect web server, software and associated hardware from
break-ins, vandalism and DOS attacks.
Secure transactions - Guarantee protection against eavesdropping and
intentional message modification (tapping, intercepting, diverting)

Security Issues in E Commerce

1. Malicious Code - It includes a variety of threats such as virus,
worms, Trojan horse etc.
 Virus - A virus is a computer programme that has the ability to replicate itself
and spread to other files, deliver a pay load include micro virus, script virus,
file infecting virus
  Worms - It is a virus designed to spread from computer to computer.
 Trojan horse - It appears to be a benign, but does something other than
expected. It is often away for a virus to enter a computer.

2. Unwanted programmes - There are programmes installed without the user’s

consent.

 Browser parasites - Programmes used to monitor and change bettings of a

user's browser
 Adware - Unwanted pop up ads Spyware - Programmes used to obtain personal
information
3. Phishing and Identity theft - It refers to any deceptive, online attempt by a
third party to obtain confidential information for a financial again.

4. Hacking -

 Hacker - An individual who intends to gain unauthorised access to

computer systems.
 Cracker - A hacker with a criminal intent
 Cyber Vandalism - Intentionally, disrupting, defacing or destroying a
website

5. Credit Card Fraud - It refers to use of stolen data to establish credit under
false identity.
6. Spoofing - Hackers hide their identity, misrepresent themselves by using fake
email addresses or masquerading as someone else this threatens integrity and
authenticity of the hacked website.
7. DOS (Denial of Service) - Hackers flood a website with useless traffic to
inundate or overwhelm the network.
8. DDOS (Distributed Denial of Service) - Hackers use numerous networks from
numerous launch points to send useless traffic to a website. This may cause a
complete shutdown making it impossible for users to access the website.
9. Sniffing - A sniffer is a type of eavesdropping application that monitors
information travelling over the network. It enables hackers to steal proprietary
information from anywhere on a network including email, files, reports etc.
10. Insider jobs - It involves poorly designed server and client software and
complexity of programmes which increase vulnerabilities for hackers to exploit.

The defensive measures used in Transaction Security are:

1. Encryption - It is the process of transforming plain text or data into cipher text
that cannot be read by anyone except the sender and receiver. It is done with a
help of mathematical algorithm the key is required to decode the message.
2. Secure Socket Layer - The SSL protocol provides data encryption, server
authentication, client authentication and message integrity for TCP/IP
connections. It prevents eavesdropping, tampering or forgery when data is
transported over the internet between two applications.
3. Secure hypertext transfer protocol - It is a secure message-oriented
communication protocol designed for use in conjunction with HTTP enabled
secure connection and individual message transmission. Under SHTP a message
may be signed, authenticated or encrypted.

4. Trust Seal Programmes - Trust seals have been developed to provide

assurance about web businesses practices and policies.

5. Digital Signature - It is a signature in encrypted electronic code which is

encrypted by the sender with his public key and can be decrypted only with the
public key of the sender (by receiver).

5. Digital Certificate - It is a digital document issued by a trusted third-

party institution known as certificate authority that certifies the name and
identifying information of the company. It is signed with the private key
of the Certificate Authority. Therefore, its authenticity can be known by
knowing the public key.
On-line mercantile models from customer perspective
The on-line consumer expects quality, convenience, value. Low price and
control. To meet these expectations and understand the behaviour of the online
shopper there is a need for a business process model that provides a standard
product/services purchasing process from an interactive services and
merchandising point of view.
Consumer mercantile activities can be grouped into three phases prepurchase
preparation purchase consummation and post purchase interaction.

1. The prepurchase preparation phase includes search and discovery for set
of products in the large information space capable of meeting customer
requirements and product selection from the smaller set of products based on
attribute comparison.

2. The purchase consummation phase specifies the flow of information and

documents associated with purchasing and negotiation with merchants for
suitable terms such as price. Availability and delivery dates: and electronic
payment mechanisms that integrate payment into the purchasing process.

2. The post purchase interaction phase includes customer service

and support to address customer complaints, product returns and
product defects
What is online market research?
Online Market Research is a research method in which the data collection process is
carried out over the Internet. ... This research can evaluate the performance of a product or
service and may allow companies to glean insight into consumer purchasing behavior.

What is Online Market Research?

Online Market Research is a research method in which the data collection
process is carried out over the Internet.

Online Market Research can be either Qualitative or Quantitative. 

Qualitative Online Tools include Video Ethnography and Market Research
Online Communities (MROCs).  Quantitative Online Methods include
mobile and app surveys.

This research can evaluate the performance of a product or service and may
allow companies to glean insight into consumer purchasing behavior. With
the rising use of the Internet, online research has become a popular tool
among market research firms.

Online research can provide additional information about a buyer, such as her
prior purchasing history. Online research projects can be carried out by a
company itself or by a hired research firm.

Benefits of Online Market Research

Online market research can be a beneficial tool for companies due to its reach
and convenience. Online research tools can be used with relative ease and
accuracy for both qualitative and quantitative research.

 Cost advantages
 Speed advantages
 Data collection in real-time
 Advanced analytics
 Efficient global and multi-country survey management

5 Online Retail Pricing Strategy Examples Worth Copying

Basket-based pricing
We give top marks to basket-based pricing for the innovative method
in which products are priced to entice customers into buying more. An
excellent example of how this mechanism is deployed is the
way Jet.com does it. These eCommerce shoppers are incentivized for
buying recommended products. An intelligent real-time pricing
algorithm runs in background of the store. Coined as ‘smart cart’, the
algorithm matches their customers’ delivery location for selected
merchandise with the closest trusted supplier that stocks them.

Always lower than the competition

Shopping around for the same product on different sites is a practice most of us
are guilty of. In light of the fact that webrooming and showrooming are
becoming more and more common, it’s even more important for retailers to keep
their prices competitive. 

Loss leader pricing

The loss leader approach is a fantastic way to get  your customers to regularly
shop on your online store. Generally practiced by retailers like Amazon and
Walmart, the idea behind this pricing strategy is to keep certain items
significantly lower than what is available on competing sites.

Quick-delivery pricing
One retailer who is using this strategy effectively is Amazon. The marketplace
leader makes full use of its state of the art logistics network to not only serve its
customers in record time, but also to use it as a profit making strategy.
Customers are given quick delivery options such as same day, next day or 2 day
shipping, in return for an additional premium.  

Real-time price optimization strategy

Using real-time retail insights to determine the price at which your products are
sold is the ideal way of ensuring profitability. Being lower than the competition
at all times however, is not an advisable retail pricing strategy. Instead, you can
use out-of-stock situations identified in real-time by a retail analytics product
like In competitor to pump up prices.
What is mean by online banking?
Banking online means accessing your bank account and carrying out financial transactions
through the internet on your smartphone, tablet or computer. It's quick, usually free and
allows you to carry out a number of tasks such as paying bills and transferring money,
without having to visit or call your bank.

Types of Online Banking or E-Banking

1) Account Management
2) 2) Deposits and Payments
3) Debit Card
4) E-statement
UNIT 3
E-MARKETING

E-marketing is a process of planning and executing the conception, distribution,

promotion, and pricing of products and services in a computerized, networked
environment, such as the Internet and the World Wide Web, to facilitate
exchanges and satisfy customer demands. It has two distinct advantages over
traditional marketing. E-marketing provides customers with more convenience
and more competitive prices, and it enables businesses to reduce operational
costs.

Advantages of E-marketing
Certain advantages of emarketing are discussed as below:
1. Much better return on investment from than that of traditional marketing as it helps
increasing sales revenue.
2. E-marketing means reduced marketing campaign cost as the marketing is done through the
internet
3. Fast result of the campaign as it helps to target the right customers.
4. Easy monitoring through the web tracking capabilities help make emarketing highly
efficient
5. Using e-marketing, viral content can be made, which helps in viral marketing
Types of e-marketing
There are several ways in which companies can use internet for marketing. Some ways of e-
marketing are:
1. Article marketing
2. Affiliate marketing
3. Video marketing
4. Email marketing
5. Blogging
6. Content marketing

What Is A Marketing Mix

The marketing mix traditionally consists of four marketing decisions to
drive business goals into a specific target market. These four marketing
decisions are: Product, Price, Place, and Promotion (Also called the four
P’s)

Since the inception of the marketing mix (coined by McCarthy in the 1960
book called Basic Marketing: A Managerial Approach), the marketing mix
has grown to include more core marketing decisions to make it a better
tool for business.
The 7 Ps of Online Marketing Mix
Online Marketing Mix
7P's of the online marketing mix is a model for marketing decisions, which
incorporates the placement, promotion, pricing, products, and more.
A benefit of an online marketing mix in your business model is that
understanding every element of your marketing process enables us to
create better, highly functioning, and profitable businesses online.

To create and execute a proper digital marketing strategy, understanding

how different elements of an online marketing mix connects to your
business is essential.

Digital Customer/ Online customer

Digital customers use digital channels — Web, mobile and social — to consume

content, engage with brands and complete a transaction.
Customers come in all shapes and sizes, but with today’s technology customers are increasingly
coming in the digital form. A digital-only customer is exactly what it sounds like – a customer that a
company engages with on any sort of non-physical level. In turn, digital customers come with their
own set of company best practices.
Because there are hundreds if not thousands of different technological platforms through which
companies can engage with their customers, it is important for companies with digital customers to
think about their varying needs and the ways in which their customers consume their digital products.
But to do this, it is important to consider the types of digital customers. 

A Digital Customer / Online customer Can Be:

 Social media users

 Web customers

 Mobile customers

 Blockchain customers

 Email customers
What is Web 2.0 and how does it work?
Web 2.0 is the term used to describe a variety of web sites and applications that allow anyone
to create and share online information or material they have created. A key element of the
technology is that it allows people to create, share, collaborate & communicate.

When it comes to defining web 2.0. the term means such internet applications
which allow sharing and collaboration opportunities to people and help them to
express themselves online.

“Web 2.0 is the business revolution in the computer industry caused by the move
to the internet as a platform, and any attempt to understand the rules for success
on that new platform.”– Tim O’ Reilly.

It’s a simply improved version of the first worldwide web, characterized

specifically by the change from static to dynamic or user-generated content and
also the growth of social media. 
What are the examples of Web 2.0 applications?
Web 2.0 examples include hosted services (Google Maps),Web applications ( Google Docs,
Flickr), Video sharing sites (YouTube), wikis (MediaWiki), blogs (WordPress), social
networking (Facebook), folksonomies (Delicious), Microblogging
(Twitter), podcasting (Podcast Alley) & content hosting services and many more.

Advantages of Web 2.0:

 Available at any time, any place.
 Variety of media.
 Ease of usage.
 Learners can actively be involved in knowledge building.
 Can create dynamic learning communities.
 Everybody is the author and the editor, every edit that has been made can be tracked.
 User-friendly.
 Updates in the wiki are immediate and it offers more sources for researchers.
 It provides real-time discussion.

CUSTOMER RELATIONSHIP MANAGEMENT IN WEB 2.0 WORLD

What is social media in simple words?

Social media is computer-based technology that facilitates the sharing of ideas, thoughts, and
information through the building of virtual networks and communities. ... Users engage
with social media via computer, tablet or smartphone via web-based software or web
application, often utilizing it for messaging
Social media marketing
Social media marketing is a powerful way for businesses of all sizes to reach prospects and
customers. Your customers are already interacting with brands through social media, and if
you're not speaking directly to your audience through social platforms like Facebook, Twitter,
Instagram, and Pinterest, you're missing out! Great marketing on social media can bring
remarkable success to your business, creating devoted brand advocates and even driving leads
and sales.

What is Internet Branding?

Do you follow businesses online? Take a moment to look at your favorite brands. What do
they post about, share, and discuss? How a company represents itself online is all a part of
internet branding. Internet branding is defined as a technique in brand management that
uses the internet as a medium to position its brand in the marketplace. You may also see this
referred to as online branding.

Uses for Internet Branding

Before building an internet marketing strategy, first focus on the reasoning for the building this strategy.
The primary uses for an internet branding strategy include:

 Brand Story
 Identifying the customer base
 Brand awareness
 Building a dialogue with customers
 Value proposition
 Driving sales

5 major elements play a key role in identifying a company’s brand strategy

and they include:
Brand strategy analysis
Creating brand identity: 
Brand positioning
Brand design
Brand advertising
UNIT 4
What is Traffic?

Traffic is visitors to your website. They are grouped into different segments, depending on
how they found you. Get your head around the types of traffic that you’ll commonly see used
in online analytics:

Direct traffic URL type-ins, bookmarks, or media links that are not tracked

Campaign traffic display ads, email campaigns, social media campaigns (you can create a
campaign tag to link to a landing page to track this)

Search traffic from search engines, including both organic (defined below) and paid search

Referral traffic from other sites that have direct links to your site

Organic traffic all traffic that comes to your site as a result of unpaid search results.

There are 3 main traffic outcomes that you can measure:

Quantity 
Quality
cost of traffic

Increase Traffic
1. Advertise
2. Get Social
Write Irresistible Headlines
Pay Attention to On-Page SEO
Target Long-Tail Keywords
Start Guest Blogging
Invite Others to Guest Blog on Your Site
Post Content to LinkedIn
Interview Industry Thought Leaders

Website Business Models

The term “business model” became popular in the late 1990s, during the Internet
boom, in part because many website businesses seemed to plan for generating
traffic without a clear view of how or when traffic would generate revenue and
profits.
The portfolio site: like a business card on the Web
These sites offer information. Their target users go to them to find out more about a business.
The sites don’t specifically sell anything, but they do support sales by generating leads or
making the viewer’s buying decision easier.

The basic commerce model: sales and profits

The simplest website business model is based on making sales and profits. A
classic commerce website like Amazon.com or Buy.com sells products, takes
orders, charges credit cards, and ships goods.
The content model: based on advertising The content sites work economically
like mainstream network television in the United States, free content to users paid
for by advertisements that users put up with
Community sites A typical community site offers email, bulletin boards and
forums, a common focus for some group that has a common interest. Community
sites are often started by groups, clubs, and government organizations. Some of the
best of them, however, are sponsored by businesses that want to take advantage of
the common interest. For example, a rock climbing community site might be
sponsored by a local store.
Most sites are really hybrids, combinations  Amazon.com combines commerce
with content and community; Yahoo.com also combines content, community, and
commerce.

Content marketing: what is it?

Content management (CM) is the process for collection, delivery, retrieval,
governance and overall management of information in any format. The term is
typically used in reference to administration of the digital content lifecycle, from
creation to permanent storage or deletion. The content involved may be images,
video, audio and multimedia as well as text.
Content management process
Organization:
Creation
Storage
Workflow:
Editing/
Publishing: 
Removal
Types of digital content management
Social media content management: Social media content management tools help
to create an organized social media marketing strategy with defined goals and to
analyze engagement.
Web content management: Web content management is used to create, manage
and display webpages. 
Mobile content management: Mobile content management (MCM) provides
secure access to corporate data on smartphones, tablets and other devices.

Enterprise content management: An enterprise content management (ECM)

system has components that help enterprises manage data effectively. ECM
components are geared to goals such as streamlining access, eliminating
bottlenecks and minimizing overhead, along with version control, routing,
archiving, content governance and security.

What is campaign management in digital marketing?

Campaign management is the planning, execution, tracking, and analysis of a

marketing initiative; sometimes centered on a new product launch or an event.
Campaigns normally involve multiple pushes to potential buyers through email, social
media, surveys, print materials, giveaways, etc. all focusing on a similar topic or idea.

Marketing campaigns are launched to get potential buyers thinking about a specific
problem — a problem that can be solved using your product or service. These
campaigns are crucial to engaging your audience and raising market awareness around
your brand.

What Does a Marketing Campaign

Manager Do?
A marketing campaign manager is usually someone who has experience in email
marketing and is familiar with CRM and digital marketing automation tools like
Marketo, Eloqua, and Salesforce. They usually work closely with sales, sales ops, and
external agencies to execute marketing campaigns and measure and report on their
effectiveness.
A marketing campaign manager is responsible for planning and executing the
marketing campaign so that it meets the goals and needs of the marketing team. They
also oversee and schedule everything customer-facing; including all copy, design, and
audience segments.

What are Some Popular Marketing

Campaign Management Tools?
Some of the most popular marketing campaign management tools include Marketo,
Pardot, HubSpot, and Eloqua. But don't rush into purchasing one just yet.

Segmenting Customers for Digital Marketing

One of the biggest challenges when it comes to digital marketing is how to determine in what
ways your audience will engage.
 Will they follow us on Twitter?
 Submit photos for our website?
 Provide reviews on our brand experience?
 Comment on our blog?
A third way to segment customers for digital marketing
Traditionally marketing has looked at demographic and psychographic data as
ways to identify and segment customers. “Female, upper-income, 25-34,
African American, college-educated, who prefers high-end brands” was good
enough for a long time. The thought being that by going narrower, the marketer
gets a better return on their marketing dollars and does not pay to interrupt
customers who would have no interest in buying.

Today, a third way to group customer segments is coming to light – especially

for digital marketing. Based on studies done by Forrester Research, this method
goes by the term “Social Technographics”. By analysing the online habits of
U.S. adults, the company developed various categories to help the marketer
predict what they might expect for engagement.
Note: These consumers are still sliced in part by demographic data. As you
might expect, participation can vary widely by age and a bit by gender.

How to use Segmentation, Targeting and Positioning (STP) to

develop marketing strategies