Electronic Commerce (E-Commerce) Project

Electronic Commerce
Electronic Commerce is the process of buying and selling products and
services online. It is also commonly known as E-Commerce. Even though the
internet has come a long way the concept of electronic commerce is still new
to many people. This concept is still emerging and people are getting used to
using e-commerce.
Many literature and books have been penned on this subject; still there is
great confusion and misunderstandings about the concept. Every book has a
different way of explaining the subject of e-commerce and hence this has
left the users confused as to what is the actual meaning of electronic
commerce. This book has been prepared with an idea to provide the readers
a clear understanding about e-commerce and how the application can bring
profits to the business and how the management will benefit from it.
The concept of electronic commerce can be understood easily if the user can
understand the various technical terms which are used in the literature and
also the user has to understand where the terms have been taken from and
the uses of these technical terms. The editor in chief of the International
Journal of Electronic Commerce Mr.
Vladimir Zwass has termed the e-commerce as A medium of sharing the
business information, business transactions, helpful in maintain the business
relationships with the help of telecommunication networks. Mr. Vladimir
Zwass has further mentioned that the concept of electronic commerce
existed before 40 years. It was initially originated in Berlin in 1948 where
the airlifting was done with the help of electronic transmission of the
messages.
The next step in the early electronic commerce was the electronic data
interchange also commonly known as (EDI). Many industry groups had come
together in the 1960 to get a common platform on the electronic data
formats. The main utilization of the electronic formats was for purchasing;
maintaining the finance data, transportation and it was also majorly used for
intra industry transactions. The further development in the electronic
commerce took place in the late 1970.
There were a group of experts who started developing the electronic data
interchange and could develop it by 1990. EDI essentially means the
transferring of business transactions between the sender and the receiver
computer. This can be done on any private network or value added network.
In case of EDI both the sender and receiver should have same type of
software hence the data is transferred at a faster pace compared to other
applications.

The EDI application in electronic commerce is mainly useful for the retail
industry, automobile industry, industries which manufacture heavy
machineries for defense etc. The application helps the industry to coordinate
between the designing department to the maintenance department to help
the manufacturers to share the information regarding designing and
maintenance to their various stakeholders.
The EDI application of the electronic commerce was very expensive to be
used for any industry before the advent and commercial use of internet. This
was mainly because of the high costs of the private networks which were to
be installed for the functioning of EDI. Since the usage of internet has
increased the electronic commerce includes:

Electronic trading of the physical products and also service

information.

It helps in all the stages of electronic trade like online marketing,

ordering of goods, payment for products and services and also further
support for delivery of products and services.

The electronic commerce helps in after sales support and also provides
legal advice to the customers about the products and services.

E- commerce solutions are mainly derived for business purposes which help
in streamlining the process and making it more efficient. It enables and
effective media of communication. Nowadays, electronic process will play
vital role in controlling important decisions while there is collaboration
between two big companies which cater to engineering, consultancy
services, online design, media, electronics and much more.
There are some crucial definitions which are significantly found in media and
journals like:
Electronic Commerce project is the process which is established at various
levels in the company and the place where the transaction and media mode
is telecommunications. The network is being authenticated and the internet
is the only communication mode.
Now internet is an important and safe communication mode as service
providers secure the network. So platform in which the buying, selling of
products is done via online and payment mode is also online then its called
as eCommerce transaction.
Trading or doing commercialization of any online communication media,
email or chat is called as e-commerce communication. Essential media
sources are used for any form of commercialization taking place. There have
been extensive range of options which contribute in every successful
transaction attempt with online media. Today eCommerce solutions are also

possible with from small town to urban areas which has compelled every
business engage in e-commerce.
Online shopping, banking, money transfer all is kind of e-commerce
functionalities. Now these essentials have contributed in getting several
kinds of commercial media activities. This will include web commerce,
icommerce (internet) which are nothing but same terms. Now there are
certain cyber stores, icommerce and virtual e-selling stores which have
opened new avenues of online trading, thus promoting the cyber selling
transactions and concept. Now there have been important potential pointers
in commerce for retailers, wholesalers, buyers, sellers and much more.
Marketing strategies for e-commerce marketing
Global competitive forces have compelled firms to design adaptive strategies
.Out of the innumerable activities which a firm indulges in marketing as a
process determines the expectations of a products success or failure
Marketing and sales are cogent applications of logic. Some companies have
developed and converted their marketing strategy in to their unique selling
proposition. Different channels of marketing involve television, print media,
agents of mass communication, banners, posters, hoardings, word-of mouth,
internet etc. The latest and advanced technique of marketing is mobile
marketing.
It would be better to discuss both mobile marketing and the firms strategy
of marketing in detail to further understand how they are synchronous in
nature.
According to Kotler et al(2005), marketing mix involves a set of marketing
tools which are convenient and fused by the organization so that the target
audience can get attracted towards it.
Marketing theory was first presented by MMA(2006) the credit for placing
the market research foundation. There is 4Ps which exists and they are
theory of place, price, promotion and product according to author Mc Crathy.
No critics have argued on the marketing mix theory but there is a possibility
of a support tool which can recognize the difficulties implicated in the theory
of the marketing mix.
An efficient tool for obtaining the set prospect and goals from marketing is
marketing communications and is used by personal marketing,
advertisements, direct marketing, sales promotions, public relations
managers, etc.
Policy of Integrated Marketing Communications

According to Petler et al(2003, p93), IMC is a theory of marketing

communications policy which identifies the additional value of using a
complete policy in order to assess the policy roles of different
communications disciplines. The author explains that IMC is obsessed by the
marketing policy which leads to additional planning resulting in taking crucial
decisions which are compulsory for implementing marketing activities. The
following figure explains the mobile marketing environment framework
(Matti Leppaniemi and Heikki Karajaluoto, n.d, p.5).
According to Kitchen et al(2004), IMC theory is used by communicators thus
results in contemplation of various communication channels, message
delivery channels, prospects and customers and contains possible contacts.
This is the reason why immediate marketing policies implementation and
communication policies take place.
Therefore, for an effective mobile marketing policy, the above activities give
more importance. These consist of creating and initiation of mobile
marketing campaign by the organization and the communication tools
necessary for marketing organizations product and services and integration
of various communication channels to convey an enjoyable, interesting and
reliable message to the audience.
It is necessary to have an analysis of the organizations on the whole which
contain the status of the market, competitors, its products and consumers,
etc. which is the first stage of IMC procedure. The target audience and
market communication both depend on this step and so this step is critical.
Product choice and consumer market are tremendously important for the
point of analysis. Some essential factors which are necessary for product
choice are demography, behavioral pattern, geography, etc.
It is essential to recognize the correct customers and Customer Relationship
Management(CRM) plays a vital role in attaining this task. CRM spotlights on
marketing communication policies and also offers guidelines for fulfilling
customers wants and requirements.(Peppers et al 1999, and Peltier et al
2003).
Marketers require a goal to plan their policy for attaining the goal and to
accomplish the prospect. In simple words, a goal will explain the marketers
what should be attained and policy tells what they should do to attain the
goal. According to Smith (1999), plan plays an important role in the path of
marketing as it allows the manufacturers or sellers to produce products as
per the needs of their customers and which can convince them.
Hence, strategies are measured as a communication tool and signifies how
good a product can execute in the market as far as selling is concerned.
Organizations are continuously developing and working on the policies,

however, rising competition force the organizations to take up the new rules
of competition and plan the policies accordingly.
The author Balasubramanian.et.al (2002), explains marketing
communication goals are set hierarchically in an organization based on the
company's goals. Marketing communication goals are concerned with
attitudes, consciousness, creation, etc.
The demanding responsibilities are identifying the correct customers. This
duty can be simply held by use of CRM (Customer Relationship Management)
where it allows the marketers to spotlight on the marketing communication
policies and offer rules in satisfying the exact requirements of customers
(Peppers et al. 1999 and Petlier et al. 2003). Butterfield (1977) discovers
that the marketers want to construct the goals of marketing communications
program after they choose the customers and get the knowledge on their
requirements in detail.

Smith, (1999), tactics has played crucial role in a marketing course because
the sellers or and manufacturers of the customers can satisfy them.
Therefore, tactics are considered as a communication tool and indicates how
well can a product perform in the market as far as selling is concerned. The
working strategies are constantly developed with the growing competition
that face new designing strategies accordingly.
Balasubramanian.et.al (2002), has arranged hierarchically the marketing
communication objectives which satisfy hierarchy levels. The marketing
objectives for communication cluedde generation, knowledge,analysis and
lots more.
CRM (Customer Relationship Management) is quite challenging with varied
aspects as per (Peppers et al. 1999 and Peltier et al. 2003). Butterfield
(1977) explore marketers for marketing communications by selecting
customers having knowledge on the needs. Smith (1998) mentions tactics
as a common in marketing having detailed strategy. Direct mail, PR,
advertising are assessing growth for the firm for any new product in the
market.
Any firm marketing communications having segregated objectives as stated
by Bickton and Broderick (2005)are hierarchically related to corporate levels.
It is quite essential for making the specific strategies integrate for giving an
achievement.
Design

Efforts made by the website made.com for implementation of digital

information systems have been both successful and effective (LAAKSONEN,
(2005). Digital system and analog I&C systems differ in many ways. The
importance of digital systems' signals has been emphasized by made.com
because they are sampled and digitized. Moreover, they have the advantage
of transmitting the information in sequence.
This system implies that the functional specifications that exist now were
given due consideration prior to their application to the new digital design.
Compared to the analog systems, Digital I&C systems are advantageous
because they have no drifts and are highly accurate, easy for
implementation and are flexible. Referring to the website, it may be
confirmed that the company maintains the sequences in timing (Rutgers,
2010).
Last two decades have seen wide utilization of linear digital systems by
website in processing of signal processing that has been used in a number of
mission critical applications, Digital Business management as applicable in
military satellite and medical. On the contrary, Consumer applications are
not so much critical. In an environment associated with hospital, even a
second of delay in detection of error may be fatal.
At the same time, delay of this kind may be tolerated or may even be
desired in case of multimedia application, particularly in case of introduction
of latency for significant reduction in cost. This website has developed
different techniques for the test of digital systems concurrently.
A scheme for detection of fault in the matrix operations has been developed
by this company (LAAKSONEN, 2005). The techniques so developed for
matrix operations, find their applicability on linear systems since they can be
represented as simple matrix operations. Another technique developed by
the company website finds extension of algorithm-based approaches to nonlinear systems, suggesting models of the non-linear operators as linear time
varying operators.
As regards the Digital Librarian (DL), the company emphasizes that the next
generation of the digital libraries should typically be a specialist librarian who
has the capability of managing and organizing the digital library. At the same
time, it is capable of handling the specialized task of massive digitization,
storage, access, digital knowledge mining, digital reference services, and
electronic information services. In addition to all these, it is in a position in
searching co-ordination and managing the archive and its access.
The website has created a symbolic Human-Machine Guru in the shape of
the digital librarian that guides the information superhighway or the

universal digital library or the global digital library. Moreover, the website
enlightens various roles and functions of a Digital Library in retrieving the
information, delivering the content, navigating and browsing.
The website aims at educating and training the digital librarians in a
professional manner for enabling them to manage the digital information
systems. Moreover, it specifies various features related to the Digital Library
that includes its interface functions, roles, skills. It also determines
competencies for managing the digital information systems applicable to the
areas of importance such as imaging technologies, optical character
recognition, mark-up languages, cataloguing, metadata, multimedia
indexing, database technology, user interface design, programming and web
technology (LAAKSONEN, 2005).
Significance of E-commerce network
E-Commerce and Its Extensive Network
It doesnt mean that e-commerce and e-business will only include the
internet surfing, online transaction and different times of email marketing
systems. Its extension is wide covering different fields to enhance the
multifunctional features of e-marketing and e-trading.
The business management online program has extended its hands to bring
different disciplines under one umbrella for the benefits of personal
observation and research. For instance, e-marketing covers the
telemarketing, endorsement programs and sophisticated marketing methods
to enhance the proper betterment of the business using the hi-tech
interactive technology. Comparing to the conventional marketing, internet
based telemarketing is more advantageous and powerful.
In past businessmen had to do door-to-door campaigns for the endorsement
of products. However, with times advancing, the format of promotional
survey and the advertisement has undergone a prominent transition. This
type of switchover from the traditional stereotyped marketing and
advertisement to the upgraded online campaigns to ensure the trouble free
promotional campaigns is more user-friendly and cost effective.
Customer Relationship Management
Customer relationship management is another area of concern and you will
have to gain efficiency to communicate with different types of customers
whose demands are at variance. They like to buy sophisticated products.
Now you will have to understand pulse rates of consumers and try to choose
the best business to earn revenues in higher percentage.
Up gradation of Computer Science

Modern telemarketing prioritizes the proper usage of laptops to support the

web based marketing. The up gradation of the computer science has made it
easier for consumers and dealers to come closer for commercial purposes.
Finance and Accounting
The e-commerce also includes net banking, online dealing, auditing, file
keeping and account ledger updating. The intangible intellectual property
will be made tangible and profitable sources.
Economics
To some extent, e-business also values the economics. It is obvious that to
realize the changes in the global market, one should be knowledgeable in
the economics. He will have a better understanding about the deep impact of
e-commerce on the land based local market. The difference between ecommerce and conventional open market is becoming brighter. You will have
to apply economic strategies to get constructive information in this regard.
Production and Operations Management
E-business has brought a breakthrough in the conventional setups. Online
shipment processes are more cost effective, hazard free and speedy. It will
take few seconds to support the transaction online. It saves time and
money. The process is simple and easy to understand. The whole transaction
is not complicated and long lasting.
Production and Operations Management (manufacturing)
In online business, instead of wasting time only to put emphasis on the
production, entrepreneurs need to take care of better presentation of
products to attract consumers. It revives the friendship among dealers and
consumers through the online chatting, email exchanges and inbound
linkage systems. The way of placing the order via ERP is speedy and less
time consuming.
Management Information Systems
Online business gives scope to researchers to do analysis, site optimization,
evaluation and surveys to know the mindsets of consumers.
Human Resource Management
There is enough scope for home based business operating online sites. It
also ensures the data protection, safekeeping of intellectual property, legal
transaction, redressed forums to give justice to consumers and the
protection of consumers rights. E-commerce takes care of multi-tire

aspects to facilitate consumers for completing dealings via web based

portals.
Benefits of e-commerce project to the companies
International marketplace
Did you some back imagine that e-commerce popularity will put the smallest
of any venture on the world map and people will be accessible to its
services/products. E-commerce have taken the technology resource by
storm by enabling the business to grow wide and reach further audiences. Ecommerce have made global communication better and fused the energies in
the right direction. After several years technology has made the world come
close and exchange trade secrets. E-commerce has surpassed the
geographical boundaries.
Decrease in operational cost
E-commerce is breath taking which has lead significant impact on every
process. The operation cost earlier which involved many systems, documents
and all is free from materials and it has now only been limited to Intel mini
case which stands out as perfect e-commerce gadget.
Customization is another aspect which has been affected greatly as now
personalization after e-commerce is just at your finger clicks and no one
connecting emotionally to someone is just part which has changed the
thought process of buying and selling of products on the web. Earlier ecommerce during the emergence was not safe but now has shredded new
aspects. E-commerce has really improved sales, organized the company
process and helped in drawing fruitful results.
There are inventory storage problems, stack issues and calculation problems
which were pertinent before when only the manually valuation of things was
done. The e-commerce solutions have reduced all these shortcomings and
made processing, distribution of all expensive goods from electronics to
other valuables easy.
The listing is done on the website portals of the order released. The
components use has now been counted and authentication of every step is
quite possible which was unlike earlier. There are stocks which are obsolete
have taken the place in listing and status is always being updated. Ecommerce solutions have been are not only part of the technology sector but
finance, marketing and many allied professions today. Life has changed with
e-commerce solutions as every step using online methods are well guarded.
Every company has so many products the technology oriented e-commerce
trade has really simplified various aspects including the features and

characteristics of customer products. E-commerce is climbing the popularity

charts rapidly.
E-commerce is now new to the entire world but the increase in its dynamics
has certainly made it the best mode of communication and. E- commerce
solution also have affordable rather cheap telecommunications cost. Internet
communication is quite cheap and reliable too when compared to VANs. The
internet does not comprise of leasing the cables unlike other communication
media. The laying down of cables is difficult rather sending any fax, mail,
message or the direct calling.
It is because of e-commerce the world trading is possible at such extensive
level and people have come closer.
Benefits of e-commerce to consumers
E-commerce has made all the transaction and accessing online process
transparent between the buyer and seller only. If we look back and see the
development of e-commerce it cannot be denied that services and 24x7
customer service support have made it possible. Buying, selling, money
transactions at any point of time in life and availing to all other tech friendly
tools for customers have made many not so web friendly people indulge in
this force. The services are secure all the time and transaction made are
clearly reflected in your accounts. So now with e-commerce world is at the
users finger tip in just a few clicks from the comfort and allows them to login
from anywhere.
Array of choices: In e-commerce shopping from websites and portals, there
are plenty of choices the customer can enjoy, view the features,
specifications of the product and decide to buy as many companies list the
prices too. Today the services have increased to free shipping and immediate
home delivery. E-commerce benefits can be enjoyed on any services and
shopping from pin to expensive jewellery.
Price comparison is another aspect which has made the world be competitive
and develop comprehension. The size and functionalities of the e-commerce
have grown drastically into leaps and bounds. There are essential and
primary services based on which the outcome is divided. You can easily get
varied comparisons of prices, product features and extensive services with
reviews written by viewers. This helps the customer buy the trustworthy and
durable making them an addict of e-commerce trading. Today many
countries are using online sites for shopping whereas few countries still are
not entirely equipped with it.
The best part of trading in e-commerce arena is no bound to buy. If you like
the product and satisfied with the price then only can get whereas while

walking in the shop, customers may be compelled to buy You can view
endless products and check out same designer products on the official
website. A little research will help you save many hard earned bucks with
effective use of e-commerce. It is a value added service for customers which
not only makes them feel happy but the user friendly platform and
communication today used by many sites have made addictions grow in
society.
Limitations of e-commerce to consumers
Well there are not only flowery aspects of the e-commerce overtime but
rather some limitations exists which can be overcome easily. Few just for
your information are:
As technology has progressed this has enabled an increase in electronic and
many computing equipment. In e-commerce business today digitization is
the basic need and extensive need of equipments has been required such
that the network never is interrupted and functionalities always keep on
increasing by making every portal and site user friendly, interactive too. Now
in e-commerce there is a need for dialling connections, broadband and
networking connectivity devices. Now there are various internet costs
associated which is not the case today in offline commercialization. In ecommerce there is an initial good equipment cost for establishing. The ecommerce ventures have to always keep in mind the technology changes
and always be updated with it.
Security is another important aspect which was not a concern in an offline
commercial market but since the number of threats, virus, hackers have
grown so the protection of e-commerce platforms have just changed and
new softwares are used with firewall protection to completely safeguard the
security of the commerce online. The transaction and payment systems too
are secured and governed by cyber law and privacy as per company
guidelines. The data security is difficult to control on the internet. As there
are no specific cyber laws and varies from one state to another so
implementation of data tasks can cause private data hampering.
The electronic process has replaced the physical contacts with any customers
causing problem for the image of the company. In e-commerce the
customers cannot touch the quality of products, they have to rely on
companies. This also results in lacking trust as faceless justifying money is
not accepted culture in many parts of the globe.
As the main focus is on the internet so the e-commerce environment has
really become quite complex which enables in strategically making a
different presence on the web with additional value added services which are
integrated as per the business and depends on several aspects keeping the

operational areas into consideration. There are several businesses which

have been converted to an electronic process. E-commerce operation of any
kind are performed at lightening speed and saves plenty of processing time
unlike any other manual method. Perhaps it has lead to an increase pushing
features and adding many new features which gratify customers easily
because of the instant results they see happening.
Communication via online chat option and customer care is so swift that all
the queries are solved at click of a button. The outcome of services/products
is reliable and trustworthy because the guideline of e-commerce is facile in
nature which makes any vendor buy and sell services easily. There are
imperative businesses available online which have flourished in few years
and being young earned fortune and become a brand. This is all because
they have channelized the tools and methods of business and e-commerce
trade in ideal manner for building effective communication and approach
which can be used by patrons worldwide. However, website development is
the primary requirement of any business because if you have to use the
substantial norms of e-commerce then strategic planning is required for any
online business.
Impact of social networking sites on consumers
Nowadays internet marketing is playing vital role in the success of company
and its products that builds the relationship between customers and
companies. It includes different types of activities online in order to support
the customers with required products, goods and services etc. Internet
marketing process includes different types of marketing aspects that can be
used to market the specific product or service of the company. Among them
social media marketing is playing key role in the internet marketing process
in which customers will perform the advertiser role and promote the
company products through word of mouth strategy.
The satisfied customers yield more productivity and refer other customers
by using the product feedback. Each and every customer has their own
product preference and their buying behavior changes continuously. In
general, there are different types of marketing aspects that addict customer
towards the specific product. Among them word of mouth strategy can be
considered as the significant aspect in which the individual feedback of the
existing customers shows major impact on buying behavior of new
customers.
According to the views of (Kirby 2006), social media marketing can be
considered as the significant marketing technique that can be used to
convey the marketing messages to the customers in order to improve the
brand image of specific product or service of the company.

In views of Kiss & Bichler (2008), social marketing can be considered as the
important marketing technique which uses different types of social networks
in order to create brand awareness among the customers that distribute the
messages in the form viral messages that spreads from one customer to the
other.
(Hennig-Thurau et al. 2004) stated that social marketing is the customer
communication process through which the brand information of the company
will be shared from one customer to other customer by using customer
contacts.
Social Media Networks
Among the total internet networks, social media networks are playing vital
role in connecting users from different ends. Especially the popular social
media networking sites such as Facebook, Orkut and Twitter are playing vital
role in social marketing process. By using these social networking sites many
companies are marketing their products by using social messages of
customers (Kirby, 2006)
According to the views of Kirby (2006) social network marketing is the
process that allows the existing customers to perform the advertiser role in
order to promote specific product of the company to the new customers.
Ferguson (2008) specified that, social marketing is not only the process of
marketing products to the new customers by using old customers feedback,
but it is the process of supporting the product with existing customers in
order to build trust among new customers.
In views of De Bruyn & Lilien, (2008) the messages communicated between
existing and new customers might be of active or passive in nature because
active promotion process allows the companies to market their products
successfully but in some situations passive promotion process doesnt
support the company with required resources.
Hotmail can be considered as the beset example for successful social
marketing process when compared with other social networks. Hotmail
services include a signature message of particular company by which each
and every message or mail transferred from hotmail includes the
promotional message that reaches to the other users as marketing message.
For this particular reason, among the total social media networks hotmail
services are widely used for social marketing process (De Bruyn and Lilien,
2008).
Kirby (2006) argued that social marketing process is widely accepted by
many customers because there will be no physical disturbances in the

marketing process. Social marketing process includes customers as their

major marketing resources. This is the reason why customers prefer internet
marketing process rather than using traditional marketing processes. Even
though internet marketing is allowing many companies to successfully
market their products, still they are facing many failures because most of
the customers are blocking and ignoring the company advertisements and
messages about the products. At this particular situation, companies can
make use of social marketing process in order to allow the customers to
market the products. Social marketing process includes critical decisions of
the customers through which customers will decide whether to market the
product or not (Jurvetson & Draper, 1997; Helm, 2000; Thomas, 2004; De
Bruyn & Lilien, 2008).
Online Social Marketing
Online viral marketing process includes viral marketing process through
different types of online marketing resources that are explained in below as
follows:
Search Engine Campaign
Nowadays internet marketing process is playing key role in individual lives
and many users are depending on internet for different purposes especially
on search engines in order to find appropriate product according to their
preferences. By using the search engines customers will select their required
product and even refers them to the other user.
Text Messages through Mobile phones
Along with internet mobile phones are widely used by many users over the
world and the text messages forwarded from mobile phones will spread fast
when compared with other devices. Customers can send the feedback to
their friends on the products and goods purchased recently which increases
the awareness of particular brand of the company.
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