Chapter 4: Key Concept

Chapter 4: Marketing on the Web

Key Concept:
This chapter focuses on companies can market their goods and services online. These companies can use either a product-based strategy or a customer-based strategy or even both.

Supporting Points
Web Marketing Strategies
Product-Based Marketing Strategies
- organize website from internal viewpoint (way that they arrange product design and manufacturing processes (Staples, Sears) – Product categories
Customer-Based Marketing Strategies
- site is flexible to meet needs of many different users – identify groups of customers who chare common characteristics (Dell)
Communicating with Different Market Segments
Trust and Media Choice
- mass media (lowest level of trust); personal selling (highest level); blogs allow companies can use the web to communicate like the high-trust personal contact
Market Segmentation
- dividing pool of potential customers into segments (demographic and geographic)
- micromarketing: targeting very small market segements
Market Segmentation on the Web
- web can present different environments online; retailers can provide separate virtual spaces for different market segments
Offering Customers a Choice on the Web
- Dell – one-to-one marketing; internet gives marketers best opportunity for highly customized interactions with customers
Beyond Market Segmentation: Customer Behavior and Relationship Intensity
Segmentation Using Customer Behaviour
- browsers: surfing, trigger words prompt visitor to stay and investigate the products offered
- buyers: ready to make purchase right away; easy transaction
- shoppers: motivated to buy, but look for more info before they make a purchase decision
o simplifiers: like convenience
o surfers: use web to find info, explore new ideas, shop
o bargainers: in search of good deal
o connectors: use web to stay in touch with other people
o routiners: return to same sites over and over again
o sportsters: spend more time on sports and entertainment sites rather then news and financial info
Customer Relationship Intensity and Life-Cycle Segmentation
- awareness: recognize name, but no interaction yet; advertise brand
- exploration: potential customers learn more, might visit site, communication via telephone or email
- familiarity: customers have completed several transactions and are aware of company’s policies, likely to shop and buy from competitors too
- commitment: many successful encounters, customers develop fierce loyalty with brand (commitment stage)
- separation: disappointment, intensity of relationship fades
Acquisition, Conversion, and Retention of Customers
- acquisition cost: total amount of money that a site spends to draw one visitor to the site
- conversion: convert first-time visitor into a customer, visitor usually registers
- retention: costs of inducing customers to return and buy again
Advertising on the Web
Banner Ads
- displays stationary or moving graphic, hyperlink
o banner exchange network: coordinates ad sharing so other sites run one company’s ad while that company’s site runs other members ads
o find site that appeals to market segment and pay those sites to carry the ads
o use network: acts as broker between advertisers and sites that carry ads
- CPM: cost per thousand
- Visit: visitor requests page from web site (trial visit, repeat visit, page view, ad view)
- Impression: each time banner ad lads
- Click-through: visitor clisk banner ad
Other Web Ad Formats
- pop-up ad: appears in its own window when user opens or closes a page
- pop-behind: pop-up that is followed quickly be command that returns the focus to original browser window
- ad-blocking software: prevents banner ads and popup ads from loading
- interstitial ad: user slicks link to load a page, interstitial ad opens in own browser window
- rich media ads: generate graphical actibity that floats ovefr the page itself instead of opening in separate window
Site Sponsorships
- give advertisers chance to promote in more subtle way
Effectiveness of Online Advertising
- difficult to measure; problem is lack of single industry standard measuring service, ways in which site visitors change their web surfing behaviour and habits
E-Mail Marketing
Permission Marketing
- sending email to ppl who request info on particular topic (opt-in email)
Combining Content and Advertising
- get ppl to accept emails more easily
Technology-Enabled Customer Relationship Management
- firm obtains detailed info about customers behavior, preferences, needs, buying patterns and uses that info to set prices, negotiate terms, tailor promotions, add product features, customize entire relationship with that customer
Creating and Maintaining Brands on the Web
Elements of Branding
- differentiation: distinguish product form all others in the market: branding is then difficult for commodity products
- relevance: degree to which product offers utility to potential customer
- perceived value: is the product good?
Emotional Branding vs. Rational Branding
- emotional appeals difficult to convey on the web
- rational brand: offer to help web users in some way in exchange for their viewing an ad (hotmail)
Brand Leverage Strategies
- extend dominant positions to other products and services (yahoo)
Brand Consolidation Strategies
- have everything accessible from one location on the web
Costs of Branding
- transferring existing brands onto the web is easier and less expensive than creating new brand
Affiliate Marketing Strategies
- one firms site (affiliate firm) includes descriptions, reiews, ratings, about a product linked to another firm’s site that offers it for sale
- save expense of inventory, advertising and promoting product, processing transaction
- pay per click / par-per conversion model
Viral Marketing Strategies
- relies on existing customers to tell other people about product
Search Engine Positioning and Domain Names
Search Engine and Web Directories
- spider, robot, crawler: automatically searches the web to find web pages and then info is stored in database
- search utility: takes terms and finds entries for web pages in index that match
- search engine positioning: have particular URL listed near the top os search engine results
Paid Search Engine Inclusion and Placement
- google adwords
- contextual advertising: ads are placed in proximity to related content
- localized advertising: places ads related to location on search results page
Web Site Naming Issues
- buying, selling, and leasing domain names: some companies purchase desirable domain names, lease rights to domain names (sometimes through URL brokers)

Application
Dell uses a customer-based strategy by having different sections on their website specified for customers differing needs. Customers can customize products to their needs online. These customers may be surfers or even commitment customers. If customers have dealt with Dell before and enjoy the experience of customizing their own product, they create a relationship with the company and return when they need a new computer.

Chapter 4: Class Notes

Chapter 4: Marketing on the Web


7 Pages Every Website Should Have
- Contact Us
- Testimonials
- Privacy Policy
- FAQ
- A "gimme" page: section where users can be persuaded to five up some of their personal information in exchange for something else
- About Us
- Confirmation

Web Marketing
- Product-Based Strategies: i'm going to design my website around various product categories (Staples.ca)
- Customer-Based Strategies: focusing on customers needs and why are they coming to our site in the first place (BMO.com)
- Trust and Media Selection: look at web as mass media vehicle OR look at it as personal contact (talking to every customer & customizing website to fit that customer)
- Market Segmentation: helps direct the personal interaction or focus - customer-based strategies to direct to different customers and customize what we offer (Dell.ca)
- The Long Tail: popular products is where most of profit comes from however, companies ignore long tail of many different types of products that aren't as popular, but if you add up the long tail, the profit exceeds the profit you earn on the short side.

Consumer Behaviour
Segmentation
* Browsers: just surf the site, if they are interested, they stop: if not, they continue on; have to get them to stick to the site, offer free things, cool graphics - somehow trigger them to stay longer
* Shoppers: ppl that know that they are in the market for something (digital camera), but don't know what they want to buy but know the features they want (cendirect.com)
* Buyers: ready to make purchase: strategy as marketer - has to make it easy to buy (amazon.ca) - facilitate ecommerce transaction

Relationship Marketing
* Awareness: make customers at least want to look at site
* Exploration: get them to the site and look up info
* Familiarity: they actual buy something and are comfortable with it
* Commitment: experience and relationship with companies (takes a lot of work to get customers to this point)
* Separation: something happens and messes up relationship (easy to lose customers)


Consumer Strategies
- Acquisition: cost of getting someone to your site (awareness and exploration)
- Conversion : how much is it going to take to convert that browser to a buyer (familiarity and satisfied)
- Retention: trying to get customer commitment

Advertising Strategies
Banner Ads: easy to create in-house
Pop-Up Ads: there are standards created; pop-under ads: close browser and something else is there
Active Ads: people walking across the screen, car driving along the bottom of site
Interstitial Ads: iceberg radio - comes in between getting to the actual product
Site Sponsorships: sponsor a website and you get advertising - custom options
Problems - Measuring Effectiveness: Page visit, page views, ad view (the page that contains the ad), impression (the ad itself), click-through, purchase

CPM ads: cost per thousand views impressions, banner ads online and regular ads in print, TV
CPC ads: cost per click, think google ads
CPT ads" cost per transaction, you pay only if the customer brought to you from a media site becomes a paying customer

E-Mail & CRM Strategies
Permission Marketing: have someone sign up on website, giving company permission to send you stuff and you have accepted
Content & Advertising: similar to permission, but not just sending info about product, sending other info in newsletter format and other advertising built in
Outsourcing Processing: companies to process email, reports, analytic processing
eCRM Solutions: figure 4-10

Branding Strategies
Leveraging & Consolidation: (google buying other sites that get the brand trust and image of google)
Affiliate Marketing: sell advertising to other businesses that want to access a certain market (blogs) - commission sales person.....using amazon's brand: posting reviews for books, customer hits link to go to amazon.com and if they buy the book, blogger gets a commission
Viral Marketing: word of mouth done through technology

Search Engine Strategies
Search Engines:
- spider, crawler, robot: goes into internet and indexes all the pages, stored; could submit website to google and have them index it immediately
- index or database
- search front-end:
Web Directories: you don't have a crawler get info, you have people to gather info
SEO for Keywords: search engine optimization
- Long tail keywords: terms or keywords that aren't popular, but when combined, you target and segment market further; short terms are very expensive to purchase
- SEO digger
- SEOBook Keyword tools
- Google's Dos & Don'ts
Paid inclusion: pay to get your site to show up on first page on google (adwords)
Blogs, Social Media Sites, Forums:
Website Domain Names

Chapter 3: Key Concept

Chapter 3: Selling on the Web: Revenue Models and Building A Web Presence

Key Concept:
This chapter focuses on 6 main ways in which a company can generate revenue online. We learn how these models work and what companies use each. This chapter also focuses on what is involved in order to make a successful web site based on the customers.

Supporting Points:
Revenue Models
Web Catalog Revenue Models: print catalogues expanded online (old mail order model was the start of this)
- Computers and Consumer Electronics: Apple, Dell, Gateway (offer customers access to product info and customization); Best Buy, Circuit City (sell products same way they sell in their stores)
- Books, Music, and Videos: Amazon,com (evolved to become retailer selling books, music, videos, electronics, tools, etc); amazon inspired others to sell online such as Barnes & Noble;
- Luxury Goods: people are usually reluctant to buy through the internet; Versace was developed online to provide info to those who would shop in-store
- Clothing Retailers: Gap; display photos of casual and business clothing with prices, sizes, colors, tailoring details; customers examine clothing and place an order; personal shopper: intelligent agent programs that learns the customers preferences and makes suggestions; virtual model: graphic image built from customer measurements; some companies have overstock websites to sell off inventory; colour settings on monitors cause problems
- Flowers and Gifts: 1-800-Flowers created online extension to its telephone order business; mrs. Fields cookies
- General Discounters: Buy.com, Walmart.com
Digital Content Revenue Models: Lexis.com (provides full-text search of court cases, laws, patent, tax regulations); ProQuest (sells digital copies of published documents)
Advertising-Supported Revenue Models: sites provide info about stuff through advertisements from other companies and charge advertisers rates for placing ads on their page; stickiness: ability to keep visitors as the site and attract repeat visitors; 2 problems: (1) no consensus on how to measure and charge for site visitor views, (2) few web sites have sufficient numbers of visitors to interest large advertisers
- Web Portals: Yahoo!; web directories: listing of hyperlinks to web pages; web portal: site that ppl use as launching point to enter the web (includes directory and search engine, other features that help ppl find what they are looking for)
- Newspaper Publishers: some worry if it helps or hurts sales of newspapers
- Targeted Classified Advertising Sites: niche markets are more successful; monster.com, autotrader.com; classified advertising is very profitable
Advertising-Subscription Mixed Revenue Models: subscribers pay a fee and accept some level of advertisingl The New York Times (mostly advertising supported, charges fees for access to certain areas of the site though)
Fee-for-Transaction Revenue Model: businesses offer services for which they charge a fee that is based on the number or size of transactions they process
- Travel Agents: earn commissions on each booking; value-added is info consolidation and filtering; Travelocity, expedia; these sites also generate revenue from ads placed on travel info pages
- Automobile Sales: carsdirect.com – allows people to select a car at a price it determines
- Stockbrokers: charge customers commission for each trade executed
- Insurance Brokers: Progressive insurance – provides quotes for them and their competitors
- Event Tickets: ticketmaster – sell tickets from one virtual location
- Real Estate and Mortgage Loan Brokers: eRealty: industry observers agree that new online brokers do much better job selling on the Web than traditional real estate brokers
- Online Banking and Financial Services: online banks hold tiny portion of worlds financial transactions; account aggregation: ability to obtain bank, investment, loan and other financial account info from multiple web sites and display in one location at banks web site
- Online Music: ?
Fee-for-Service Revenue Models: based on value of the service provided
- Online games: MSN Games by Zone.com
- Concerts and films:
- Professional Services: WebMD offers general health info

Revenue Models in Transition
Subscription to Advertising-Supported Model:
Advertising-Supported to Advertising-Subscription Model
Advertising-Supported to Fee-for-Services Model
Advertising-Supported to Subscription Model
Multiple Transitions
** Many companies undergo transitions in their revenue models as they leanr how to do business successfully on the web
Revenue Strategy Issues
Channel Conflict and Cannibalization
- channel conflict: occur when sales activities on company’s site interfere with existing sales outlets (also called cannibalization – sites sales consume sales that would be made in the company’s other sales channels
Strategic Alliances and Channel Distribution Management
- when two or more companies join forces to undertake activity over long period of time
- channel distribution managers: companies that take over responsibility for a particular product line within a retail store
Mobile Commerce
- few companies have made money in mobile commerce but some believe that a company with the right service can be successful

Creating an Effective Web Presence
- presence: the public image it conveys to stakeholders
- stakeholders: include customers, suppliers, employees, stockholders, neighbours, general public
Identifying Web Presence Goals
- Making Web presence consistent with brand image:
Achieving Web Presence Goals
- objectives:
o attracting visitors to site
o making the site interesting enough that visitors stay and explore
o convincing visitors to follow sites links to obtain info
o creating impression consistent with org’s desired image
o building trusting relationship with visitors
o reinforcing positive images that the visitor might already have about the org
o encouraging visitors to return to the site
- Profit-driven Organizations
o Companies can enhance their images by providing info
- Not-for-profit organizations
o Key goal is info dissemination
Web Site Usability
How the Web is Different
Meeting the Needs of Web Site Visitors
- Many motivations of web site visitors
- Making web sites accessible
o Offer easily accessible facts about the org
o Allow visitors to experience the site in different ways at different levels
o Provide visitors with meaningful communication link with the org
o Sustain visitor attention and encourage return visits
o Offer info about products and how to use them
Trust and Loyalty
- seller can create value in relationship with customer by nurturing customers’ trust and developing it into loyalty
Customer-Centric Web Site Design: there are many things to think of when designing your site and there are some guidelines that involve usability, avoiding business jargon, text visibility, etc.

Application
Valhalla Pure Outfitters has an online store that has only been up and running for a few months thus far. There is channel conflict between the online store and the retail stores across BC and Alberta. The site is set up so that the products are sold online but come from the closest retail store. Some of the stores are frustrated and do not like the idea that the online store is taking 50% of the margin on sales made online, as they are losing their margin if they were to sell it in store.

Chapter 3: Selling on the web

Revenue Models
Web Catalog
- Books & CDs
- Clothing & Apparel
- Computers & Electronics

Digital Content (IP): stuff you own the copyright too or licensed the copyright to - you have the right to distribute
- Journal Articles
- Research Studies
- Industry Reports

Advertising-Supported:
- Web Directories/Portals: (search engine, shopping directories, white/yellow pages)
Mixed Model Advertising-Subscription Supported: advertising fees as well as subscription fees for content products

Fee-for-transaction: every single sale, piece of that sale (in terms of profit) goes to the website - getting paid on each transaction and number of transactions
- travel agents
- auto sales
- event tickets
- stock brokers
- online banking
- online music

fee-for-service: paying for the value of service online

(Example question for exam)
1. Web Catalog:
- Listing of products with info and pricing
- Sell directly to customers online
- Need checkout and shipping process
- Returns and other policies (sales contract policies)
- Make money through standard markup and margin
Examples:
- NFLshop.com, Amazon, dell, Victoria secret, walmart, buy.com
2. Digital Content
- All the firms own the rights
- Databases
- Make money off selling the rights for the info they have
- View abstracts: to sell entire thing, you have to pay
- More academic and research focused
- Largely controlled by education institutions
Example:
- International trade commissioner, Harvard business journal, CBC learning online, ACM digital library

3. Advertising-Supported:
- Solely supported by advertising
- Counting systems for hits on ad’s : reach, CPM – how many impressions, CPC (clicks per thousand) – how many times someone actual clicks on it
- No subscription of service fees
- High traffic / highly targeting
-
Examples: newschoolers.com, monster.ca, yahoo.ca, google, msn,
4. Mixed model Advertising-Subscription Supported
- Has membership requirements
- Costs money to become a member
- Yearly fee for subscription
- May have to pay for product or info on the site
- Uses advertising to generate revenue
Examples: hotmail.com,
** to move someone from free-loader to subscriber: additional features, tell them they will get less advertisements
5. Fee for transaction
- Own the product after transaction
- Paying for a specific interaction with the firm (one time)
- Make money based on buying with volume discounts as a low cost
- Fee is for the transaction
- Log in
- Info/price
- Paypal/payment options – check out
- Remove the middle man – this is where the fees come in
- CIS: get the customer to do the work for you
Example: ticketselleronline.com,
6. Fee for service
- Don’t own product at the end of the service
- Access to the service for a certain time period
- Log in
- Privacy regulations
Example: www.macorr.com, www.adgcanada.ca

Strategic Issues (the back end)
- channel conflict/cannibalization
- alliances/distribution management:
- mobile commerce:

Web Presence
- attractive and easy to use
- ranks high on stickiness (not only attracting, but having them stay there and browse)
- provides quick links / content
- provides help and support
- portrays consistent image
- reinforces positive image
- builds trusting relationship
- engages for return ability: new content, social presence sites (forum)

Chapter 2: Key Concept

Chapter 2: Technology Infrastructure: The Internet and The World Wide Web

Key Concept:
This chapter focuses on how the internet has changed over the past few years, including networks, protocols, and other important elements that have improved the speed, quality and depth of what is involved today. This chapter focuses on the history of the internet and the web, along with languages, software, technologies and connectivity that is involved or used when accesses the web and the internet.

Supporting Points:
History of the Internet:
- 1960’s: US Department of Defense: networks were built that could operate independently
- 1969: ARPA used network to connect 4 computers: ARPANET
- 1972: email was born: Ray Tomlinson
- 1979: Usenet: user’s news network: newsgroups
- 1989: NSF: commercial network traffic
- 1990: more than 300,000 computers connected to networks
- 1995: internet was privatized and no longer operated by the US gov’t
History of the Web:
- 1945: Memex: memory extension device
- 1960’s: hypertext: one page links to another; 1987: Xanadu: global system for online hypertext publishing and commerce
- 1989: WWW, system of hyperlinked HTML documents
- 1993: Mosaic: first program that could read HTML and use the hyperlinks to navigate
- 1994: Netscape was designed: web browser: became fastest-growing software company
Network Technologies:
- local area network: LAN or wide area networks: WANs
- packet-switched networks: files and email broken down into packets, labeled electronically with origin, sequences, destinations address: travel from computer to destination
- routing computers, router computers, routers, gateway computes, border routers: decide best way to get packet to destination
- hubs, switches and bridges move packets from network to network
- internet backbone: handle packet traffic along internets main connecting points
Internet Protocols:
- collection of rules for formatting, ordering, error-checking data sent across networks
- TCP/IP: rules that govern how data moves through the internet and how network connections are established and terminated
- TCP: breaks down info into packets: and reassembles at the other end
- IP: specifies addressing details for each packet, labeling packets with destination addresses
- Domain names: sets of words assigned to specific IP addresses
o Top-level: .edu, .com, .org
- Web client software: sends requests for web page files to other computers (web servers)
- Web server: receives and responds by sending files back to those web client computers: purpose of web server is to respond to requests for web pages from web clients
- URL (uniform resource locator): combo of protocol name and domain name: lets user locate a resource on another computer
Markup Languages
- SGML: standard generalized markup language: was used to create documents that needed to be printed in various formats and revised frequently
- XML: extensible markup language: used to mark up info that companies share
- XHTML: extensible hypertext markup language:
- HTML: tags that define format, style of text
- XML: templates that can be used with the same info input by HTML
Intranets and Extranets:
- intranet: interconnected network, uses TCP/IP, does not extend beyond the organization that created it: easiest low-cost way to distribute internal corporate info
- extranet: intranet that has been extended to include outside boundaries of the org (customers, suppliers)
- public network: any computer network available to the public (the internet)
- private network: leased-line connection between 2 companies that physically connects their intranets to one another
- virtual private network: extranet that uses public networks and protocols to send sensitive data to partners, customers, suppliers, employees using system IP tunneling
- Bandwidth: amount of data that can travel through a communication line per unit of time
- DSL, ISDN: through local telephone service provider
- Broadband services: DSL, high speed
- Wireless: blue tooth, ultra wideband, Wi-Fi
Internet2
- make the web quicker and more efficient
- no more waiting to download videos or music
Semantic Web
- all words on a website will be links

Application:
It is pretty hard to apply this chapter to a specific company, but one can say that most all companies use the internet in some way or another. Valhalla Pure Outfitters uses the internet and has created an online store that links all 16 privately-owned stores to the one site. If a customer orders a product online, they can see what store has that product and where it is going to be shipped from. That store then gets an email as to what product is needed and where it has to be sent. Most products in every store are linked to the online store and available for sale. The company uses many networks to connected the head office to one another, along with linking all the stores to the online store.

Chapter 2: Class Notes

Technology Infrastructure:

History of the Internet: (the network communications) - not the web!
- 1960's: Dept of Defense
- 1969: ARPANet - redundancy model for network communications
- 1972: E-mail -
- 1974: TCP/IP - Vint Cerf: developed protocols; technology, rules, guidlines for how we transfer data across the internet
- 1979: Usenet - email for groups (newsgroups)
- 1980's: NSF - National Science Foundation - US based org given billions of $$ by the US gov't, with the mandate to educate and give students and faculty and researchers access to all the resources of the gov't (where the money came in)
- 1993: CBC Peter Mansbridge - YouTube announcement
- 1995: Privatized - more internet hosts - no longer only funded by NSF

History of the Web (how we use this network to publish and share info)
- 1945: Vannevar Bush - Memex - store all of memory items
- 1960's: Ted Nelson - "hypertext"
- 1987: Ted Nelson - Xanadu - memex on steroids
- 1989: Tim Berners-Lee - WWW - father of the world wide web: created a hypertext system
- 1993: Marc Andreesen - Mosaic - developed first web browser
- 1994: Andreesen & Clark - Netscape
- 2004: Web 2.0 - facebook is a web 2.0 application (web 1.0 application is where info is stored on web and you can access it, but you only passively consume content; web 2.0 consume and produce content). Before we would just email back and forth and only be able to read email; now we can talk instantaneously with one another over instant messaging.

Web Languages
- SGML:
*HTML: Hypertext markup language; shows us what is bold, italic
* DHTML
*XML : extensible markup language; tells us what the content is inside the document (title, author, publisher, isbn) - Used for almost eveything in Web 2.0
*XHMTL : extensible hypertext markup language; next level (not only is it a heading 1, but also the title of the book) tags...
* CSS: cascading style sheets; like templates in word - apply diff sheet to change the look
- Scripting and Programming: (creating web applications)
* Javascript: most popular (AJAX, Client-side, Server-side); PHP: used for databases
- Tutorials

Web Software
- Web Servers: any single computer connected to internet can be a web server; need ability to run one of the following programs
* Apache:
* IIS: internet information server; works with microsoft products
* HSF: server that will run off of USB stick
* Server2Go: could run business off of and fits on usb stick
* EasyPHP:
* XAMPP:

- Web Clients:
* Internet Explorer: most of the market share
* Firefox: better techonology but only 25% of market
* Opera: one of the first browsers to come up with tabs
* Flock: new browser directed toward social browsing

Future of the Internet
- internet2 (5 years or so): increase in bandwidth; instantaneous downloads and capacity to hold everything and anything and anyone can get to it immediately
- semantic web: googlefied: search, retrieve, link from anything on the page (not only hyperlinks)

Network Technologies:
- Hardware:
* Routers: connects two networks: plans the map of where the info goes: has intelligence within
* Hubs: extra connection points (routers only have 4 ports): only good for shorter distances
* Switches: for larger companies that need to switch off to longer distances
* Gateway: router or switch: connects gateway between one gateway and another
* Access Point: usually built into routers
* Modems: POTS (plain old telephone service), Cable, DSL

- Protocols: rules and guildelines for how to tranfers info over the internet
* Internet: TCP (transmission control protocol) & IP (internet protocol- made up of 4 numbers 0-255; 127.0.0.1 (local computer); 192.168.1.x (local area network)port 80 opens up web server to allow other people to get to it; sheilds up: tells you your problems), TelNet, VOIP,
a) Domain names: all have associated domain names instead of knowing what the numbers are;
* Mail: SMTP & POP3 (old technology, standard email accounts; outlook express), IMAP (newer, stores the messages on the server, the okanagan email), WebMail (google, hotmail, yahoo)
* Newsgroups: NNTP (newsgroup transfer protocol)
* Files: FTP (file tranfer protocol): retreiving files on the internet, SFTP (secure)
* Web: HTTP (hypertext transfer protocol), HTTPS (secure)

Network Connectivity
- Bandwidth:
* Telephone: POTS, ISDN - old service
* Broadband: Cable, DSL
* Leased-line: T1/T3, ATM/OC3: always on connection, pay $1,000 a month
* Wireless: iRDA, Bluetooth, Wi-Fi ethernet (most important for this class), Cell network, satellite

Chapter 2: Mindmap

Chapter 1: Class Notes

Intro to E-Commerce
- Revenue model: focuses on sales; how do i bring money into the company (create one channel to bring in revenue); indentify customers, market to them
- Business model: focuses on strategic elements of you busines and what it does; bottom-line driven

Sounds Bites:
- fortunes have been made and lost
- still riding the learning curve on what works and what doesn't
- being first to market isn't that important anymore
- EDI and EFT have been around since the 60's
- 60% of internet content is in English: >50% users do not read English; >75% users live outside of the US (still have to be aware of global size of the market, and English is not everything)

E-Commerce Defined
- is the exchange of info across electronic networks at any stage in the supply chain whether within an org, between businesses, between business & consumers, or between public and private sectors whether paid or unpaid
- is commerce, but enhanced and accelerated by IT (internet)
- most important thing in supply chain: exchange of info

E-Business:
- transformation of key business processes through the use of internet technologies
- encompasses e-commerce & includes front and back office applications that form engine for modern business; redefining old business models with aid of technology to maximize customer value


E-Commerce vs E-business
- e-commerce is equivalent or a subset of electronic business

E-Commerce Categories:
- B2B: supply chain, value chain (Dell)
- C2B: demand aggregation (consumer groups)
- B2C: commerce over the Net (amazon)
- C2C: community groups (eBay)
- B2G: business to government

- B2B: Disintermediation: removing the middleman

First Wave
defining characteristics:
- dominant influence of US businesses
- extensive use of english
- many companies started with ouside investor money
- piracy, hacking problems

Second Wave of E-Commerce
Defining characteristics:
- global enterprise: multi-cultural and multi-lingual
- established companies fund electronic commerce initiatives with own capital
- integration with key business processes
- many customers are now linked to broadband connections

Product/Process Suitability
- Commodity item: hard to distinguish from competitors products or services
- shipping profile: how easily can a product be packaged and delivered?
- high value-to-weight ratio: what is the ratio of shipping cost to selling price?
- digital products:

Advantages of E-Commerce
- increase sales through enhanced customers services
- decrease costs of handling inquiries and transactions
- reach potential customers in every country
- increase purchasing opportunities/options
- make negotiating price and delivery terms easier
- ability to do commerce transactions faster and easier with a audit trail

Disadvantages of E-Commerce
- perishable products harder to sell online
- companies believe that their business is centered around e-business model (draw ppl in because its new, but are they really making money at it)
- cultural and legal obstacles

Global Nature of E-Commerce
- Trust issues: use brand recognition and image to connect with customers
- Language issues: focus on localization, which considers multiple elements of the local environment (unlike translation, which is just language)
- Cultural issues: expectations of parties and how each will react (values and customers)
- Infrastructure issues

Bio

Wasssssaaaaabi!

My name is Randi. I am currently in my last semester of my business degree majoring in marketing. While going to school full time, I work two part-time jobs which keeps me busy most days. I hope to obtain a job in the events and tourism marketing field in the future when I am done my degree. I work hard to get to the job done!