E -COMMERCE

E -COMMERCE

1. Definition

   • Use of internet for commercial activities
     • Sale
     • Purchase
     • Customer support

2. Origins

   • Use of internet in commerce: 1960
   • Online shopping: 1994

3. Features

   • Ubiquity
   • Customization
   • Global reach
   • Integration
   • Universal standards

4. Types

   • Business to business (B2B)
   • Business to consumer (B2C)
   • Consumer to consumer (C2C)

5. Impact on marketing mix

   • Product
     • Allows wider product range
     • Allows customization
   • Price
     • Allows price comparison
     • Increases direct selling approach
   • Promotion
     • Allows the creation of online advertising
   • Place
     • Redeuced the need of intermediaries
     • Allows sales without physical movenment

6. Advantages

   • Firms
     • Widened target market
     • Cost effective advertising method
     • Reduced wastage of materials
   • Customers
     • Ability to trade wuthout moving
     • Increased choice and comparison
     • Satisfying sale services

7. Disadvantages

   • Firms
     • Presence of risk in the paymen process
     • Need to invest in online security
     • Competitors get easy access to product information
     • Expensesw in maintaining online sites
   • Customers
     • Impossibility of trying before buying
     • Excessive presence of distracting online ads

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