E-commerce and Internet Marketing

Concept of E-commerce

E-commerce can be defined as the paperless exchange of business information using electronic data exchange, electronic mail, electronic fund transfer and other network-based technologies. It is an activity where business transactions take place via telecommunication networks, especially the internet. It is useful for sharing business information, maintaining the business relationship and conducting business transactions by the means of telecommunication network.

The word E-commerce means electronic commerce i.e. to perform commercial activities with the help of electronic media. The term electronic commerce is used to describe a new online approach to performing traditional functions such as payment and fund transfer, order, entry and processing, invoicing, cargo-tracking, etc.

E-commerce is online commercial activities focusing on commodity exchanges by electronic means. The electronic means refers to electronic technology, facsimile, e-mail, electronic data exchange, computer, the communication network, credit card, electronic money and the internet. It is the subset of E-business. It constitutes the exchange of products and services between business organizations, groups, and individuals. Basically, it is the process of buying, transferring or exchanging products and services via computer networks including the internet.

According to the organization for economic co-operation and development, “Electronic commerce is the carrying out of business activities that lead to an exchange of value across telecommunication networks.” It is modern concept used for performing commercial activities. E –commerce is beneficial for business organization, customers, and society.

Features of E-commerce

Following are the features of E-commerce:

• Individual communication:

In E-commerce, one can personally talk or have interaction with the customer. We can also select suitable customers through it. The information, ideas, news can be shared with the help of it. The communication can be done individually with the help of different means of communication.

• No middleman:

There is no involvement of middleman in E-commerce. This is direct marketing in it. So,the different goods are sold having the direct relationship with customers. Distribution cost is reduced in E-commerce and we can get goods at low cost.

• Data depository:

Date depository can be also done with the help of E-commerce. Internet is a storing of data. So, data are kept in large scale. On the internet, we can keep or revenue data according to our needs.

• Need of electronic devices:

Internet marketing is an electronic marketing. For internet marketing, we need different types of electronic devices. For example, computer, telephone, etc. Without electronic devices, one cannot do the marketing . There is need of electronic devices for communicating with customers.

• Good relationship:

E –commerce helps to have the good relationship with customers. There is the direct relationship between customers and organization in the marketing process. So, for communicating with them it is needed of E-commerce. and they can build profitable long term relation with them.

Methods of E-commerce

There are various methods used for performing E-commerce activity:

• Business-to- Business:

In this method,commercial activities take place between two business parties. One business party puts its product information online and other business party buys it online. These transactions could be open to all interested parties or limited to a specific party.

• Business –to- customer:

Under this method, the seller puts information such as the price of product, picture of product, design and other information online and buyer purchases the product using their online payment methods such as credit cards. Sometimes intermediaries are involved in such business transactions to facilitate business activities. The activities are done directly from business to customers.

• Consumer- to –business:

In this method, individual offer products and services to companies and the companies pay them. Here, products or services are offered by the consumer for business organizations. The consumer provides all the important materials to the business organization.

• Consumer- to- consumer:

In this method, the business transaction takes place between consumers through some third party. A common example is an online auction, in which a consumer posts an item for sale and another consumer bid to purchase it. The business activities are done between consumer to consumer.

In addition to these methods of E-commerce, there are other methods too. They are business- to-government and Government to the government. Under this methods, the government is involved in commercial activities.

Meaning of Internet Marketing

Internet marketing is the process of marketing or selling of goods and services over the internet. With the development of E-commerce and online services, many people do not want to go to the shop or any other commercial places for buying and selling goods and services. People perform their marketing activities without leaving their chair and table with the help of internet marketing. It has become a vital part of modern business. There arelarge number of internet marketing companies who offer internet marketing services to both small scale and large scale companies largely and effectively. Internet marketing has a number of benefits.

Unlike other marketing media such as television, radio, newspaper and print media, internet marketing is growing rapidly and obtaining recognition.

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Features of Internet Marketing

Following are the features of internet marketing:

• Global marketing facility:

An important feature of internet marketing is global accessibility.It helps to get the touch to the people globally. Internet service provides marketing facility to the various people of the world. People can perform buying or selling activities from any corner of the world.It is beneficial for all the business activities.

• Less expensive:

Internet marketing is one of the less expensive means for performing marketing activities. The cost involved in internet marketing is very less compared to other marketing strategies. It is not too costly for the people to use it.

• Makes marketing easier:

Internet marketing makes marketing activity easier.The buying and selling activities can be done easily.Buyer can place an order easily, make payment, get information about the product, etc. Similarly, the seller can provide information about the product can get payment easily by the use of internet marketing.

• Provide selection opportunity:

Internet marketing provides selection opportunities to the buyers. It increases the choice of products, services and sellers. Buyer can easily select the product/ service he needs and seller he prefers from among the world widely available products/ services.

• Availability of information:

All kinds of information are available on the internet.Worldwide information related to product, sellers, services etc. could be received within short time period. Such facilities can help in the decision-making process. Buyers and sellers can make decisions quickly and accurately.

• Buyer cannot see real product:

In internet marketing, the buyer cannot see the real product.Buyer can see the picture of the product and different information about the product but cannot touch, operate and open the real product.

• Direct contact with customers:

Internet marketing helps to contact directly with the customers. It eliminates middlemen in the distribution channel. If there is direct contact between buyers and sellers, it can establish the better relationship between them. Direct contact with the customer may reduce distribution cost.

• Data inventory:

Data inventory is also one of the features of internet marketing.The Internet is the collection of data and information. Different business enterprises have their own website. Each website contains information and data. The customer can get information and data related to business organization easily.

Use of internet

The Internet has become major source of information in the modern age. We can find all the information on internet whatever we want. The Internet is the network that consists of millions of private, public, academic, business and government networks of local to global scope.

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The Internet is the modern technology used by individuals government offices, business organizations etc. The Internet is more popular due to its multidimensional use. Following are the major uses of internet:

• Information source:

The Internet is one of the major source for collecting worldwide information. We can get the important information about all those which we want to know with the help of internet.We can easily collect information and data related to producers, products, service providing institutions, etc. within the very short time period.

• Communication media:

The Internet can be used as the means of communication too. Written, oral and video phone communication is possible with the help of internet. A conference call among more than two persons at distinct places of the world is possible. It helps to get in touch with the people who are very far from us.

• Data transfer:

The Internet also helps to transfer the important data to the people.Data transfer is one of the important use of the internet. Any business organization can transfer required data from one place to another. Data transfer is essential for E-commercial activities, e-banking activities, etc.

• Advertising the product:

The Internet also helps in the advertisement of various products easily.Modern business organizations use the internet for advertising purpose. They put systematically composed advertisement on their websites which can be easily observed by any customer throughout the world. It is an easy mode of advertising the products.

• Deliver valuable services:

The Internet can also be used for delivering different types of essential services, such as commercial training, telehealth service, website design and management, news broadcasting, graphic design, etc. We can deliver all the important materials to the people or customers through the means of internet facilities.

• Perform E-marketing:

The Internet helps to perform E-marketing too. E –marketing is the process of marketing or selling of goods and services over the internet. The Internet is essential for E- marketing. Different activities related to market like collecting order from customers, payment to the suppliers, etc. are performed through the internet.

References:

Koirala, Dr. Kundan Dutta. Elementary Marketing. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd, 2014.

Thapa, Gopal, Dipendra K. Neupane and Dilli Raj Mishra. Introduction to Marketing. Kathmandu: Asmita Books Publishers and Distributors (P) Ltd., 2014.