E-COMMERCE

• E-commerce is the buying and selling of products or services over electronic systems such as the Internet and other computer networks.
• The term e-commerce was coined by Dr. Robert W. Taylor, who used it to describe the first online shopping system he developed at Xerox PARC (Palo Alto Research Center) in 1972.
• In 1984, Michael Aldrich invented the concept of "tele-shopping" when he connected his home television set up with a local supermarket's stock control computer using a modem and telephone line.
• Marketing


  The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
• Agricultural marketing

  A process which starts with a decision to produce a saleable farm commodity, involves all the aspects of market structure or system, both financial and institutional, based on technical and economic considerations, and includes pre- and post-harvest operations, assembling, grading, storage, transportation and distribution
• Five competing concepts of Marketing in the line of Agri-Business

  • Production Concept
  • Product Concept
  • Selling Concept
  • Marketing Concept
  • Societal Marketing Concept
• Production Concept


  Focuses on producing large amounts of product, readily available and at a low cost (bulk production)
• Product Concept


  Refers to quality of the products that came from good production process and management control
• Selling Concept


  Focuses more in increasing the sales which the products needed to attain in order to be recognized in the market and in the economy
• Marketing Concept


  Mainly focuses on the customer wants, needs and who will decide the price of your product or services offered
• Societal Marketing Concept


  Emphasizes the welfare or the well-being of the society as it contributes to the development of the company and may also be the factor to outgrown actions that the environment created. Mainly focus on developing a favorable image in the market, which increases their sales and as well adapt to what the society considers as wants
• The online marketing environment is based on a delicate ecosystem, just like the natural world, and it can become out of balance if the wrong things are added to it or taken away from it
• Micro Environment


  Referred to as an operating environment and focuses on customer needs and wants
• Micro Environment elements


  • Customers
  • Suppliers
  • Employees
  • Marketing Intermediaries
  • Competitors
• Customers


  Are the oxygen of business, it is necessary to understand and supply what customers need. Identify the buyer behavior, where to access customers online
• Suppliers


  Can provide high quality products at a good price. The suppliers side by accessing levels to the internet, propensity to use and integration with existing systems
• Employees


  Relate to Human resources that are so important especially in the new field of doing business through internet systems. It requires the capability to learn new things and act fast. That helps create competitive advantage for the company
• Marketing Intermediaries


  Are companies which help the organization sell, promote and distribute products and services in the market. For internet marketing, there are online intermediary websites. These intermediary websites work as a platform between consumer and business suppliers
• Competitors


  Are companies which help the organization sell, promote and distribute products and services in the market. For internet marketing, there are online intermediary websites. These intermediary websites work as a platform between consumer and business suppliers
• Macro Environment


  Refers to a collection of outside forces and factors that are beyond a company's control but will have an impact on its digital development. These Pressures include those brought on by technology, the economy, politics, the law, and society
• Macro Environment elements


  • Social Factors
  • Legal and ethical Factors
  • Technological Factors
  • Economic Factors
  • Political Factors
• Social Factors


  The social perception of the internet directly influences its use. The typical perception of the internet can be classified as no perceived advantage, little or no trust in the internet, security risk, cost of usage and utility
• Legal and ethical Factors

  Countries are developing ethics related laws advocating the correct use of the internet. Any organization should be aware of these laws and develop their marketing programs after taking them into consideration
• Technological Factors


  The advent of the internet has seen the rise of online retailers, seriously hampering the function of neighborhood stores. The biggest challenge for today's organization is to access the current technological environment and figure which solution would be the best against the competition
• Economic Factors


  The overall economic prosperity of the country will determine the extent of e-commerce activities. Organizations will target developed economies for more internet based transactions as compared to a developing country
• Political Factors


  The political and the governing environment in the region or country is determined through ruling government, public opinion and pressure/consumer advocacy groups
• Direct Marketing


  Uses one-to-one communication to reach potential customers. It delivers marketing messages in a personal and relevant way, often through emails, phone calls, or text messages
• Types of Direct Marketing

  • Telemarketing
  • Email Marketing
  • Social Media Marketing
  • Internet Marketing
  • Text Marketing
  • Direct Email
  • Kiosk Marketing
  • Direct Selling
  • Direct Response
• Telemarketing

  Involves contacting clients over the phone to sell them a product or service. With this form of direct marketing, companies can have employees or automated machines reach out to many individuals at one time
• Email Marketing


  Company reaches out to consumers by sending email messages to them. Consumers can either subscribe to a company's email list or companies can purchase a list of verified consumer emails through a mailing. It is considered as one of the most effective marketing strategies
• Social Media Marketing


  Uses various social media platforms to connect with consumers, popularize their brand, initiate business transactions and promote special offers
• Internet Marketing


  Uses online search engines to generate traffic to a company's website. Using the internet to market a company is often profitable, flexible and far-reaching
• Text Marketing


  Is when companies contact consumers via text messages. There is often a higher response rate with text marketing because of how often consumers use their cell phones
• Direct Email


  Allows a company to send information about products, special offers, services and sales to a street address via the postal service. Two benefits of direct mail marketing include versatility, meaning they can personalize it to the consumer, and make it easy for companies to send large amounts of product information to a targeted audience
• Kiosk Marketing


  Is a cost-effective way to reach many different consumers in a crowded setting, like a mall or grocery store. It involves selling products and services to customers through machines, most commonly a vending machine
• Direct Selling


  Involves a consultant selling products or services to a customer in-person at the customer's home or workplace
• Direct Response


  Is a kind of marketing which is known as broadcast advertising. It involves advertising a business through television, radio and multimedia
• Types of Online Customers

  • Discount seeker
  • Impulse purchases
  • Need-based shoppers
  • Wandering buyers
  • Loyal customers
• Discount seeker


  They will always base their purchasing choices on their ability to save money. Discount consumers are also frequent customers, but they only contribute to a product when they are given discounts on standard goods and brands or when they only purchase inexpensive goods
• Impulse purchases


  Often known as impulse buying, refer to a consumer's last-minute, unplanned decision to acquire a good or service. The term "impulse purchaser," "impulse buyer," or "compulsive buyer" is used to describe someone who frequently makes such purchases