E-commerce

E-commerce

1. Buying or selling of goods and services through electronic networks (internet)

2. Features

   • Ubiquity
     • Internet is available at any time and anywhere
   • Customization
     • Personalize
   • Global reach
     • Internet traverse many national boundaries
   • Integration
     • Allows the use of audio, video and texting
   • Universal standars
     • One set of internet standards globally

3. Effects of changing technology and e-commerce on the marketing mix

   • Product
     • Wider customers base
     • More stock to satisfy consumers according to their needs
     • Interactive websites used to customized a product that will suit consumers specifications
   • Price
     • Consumers may compare prices all over the internet
     • Uses a direct selling approach, thus reducing distribution costs
   • Promotion
     • Online advertising
     • Faster and cost-effective spread
     • Eye-catching, due to the advanced technology implemented in promotional strategies
     • Online Surveys may help to get feedback
   • Place
     • No need of intermediaries, which lead business to have cost savings
     • Loss of personal selling
     • No need to go to outlets
     • Technological to aid in language translation allows to customers to purchase from wherever they want

4. Types of e-commerce

   • Business to business (B2B)
     • Trades between two businesses
     • Large volume of transaction
     • Wholesalers and retailers interfere
   • Business to consumer (B2C)
     • Trades between a business and a consumers/customer
     • More visible to the public compared to those of B2B
   • Consumer to consumer (C2C)
     • Transactions between one consumer to another
     • Physical interaction when selling and buying