Marketing Management

 E-commerce and E-marketing: Concept and

nature; Reason for growth of e-marketing –
Ecommerce marketing practices; types of E-
commerce; E-commerce business models;
Ecommerce marketing strategies – M
commerce marketing practices- Electronic
Payment System-Security issues in E
commerce.
(15 Hours, 15 marks)
 E-marketing is the marketing of goods and
services through the internet.
 Every aspect of marketing is done through
electronic means
 It is a part of E-Commerce
 It simply means marketing through electronic
devices such as computer , Internet , TV and
Digital medium such as e-mail , web and wireless
media and so on.
 It is the process of communicating , promoting
and selling products and services through
electronic devices and related digital
technologies to achieve marketing objectives.
 Chaffey- 2006 , “ E-Marketing is achieving
marketing objectives through use of
electronic communication technology”
 E-Marketing is a subset of e-business that
utilizes electronic medium to perform
marketing activities and achieve desired
marketing objectives for an organisation.
 E-marketing is essentially about conducting
marketing activities through electronic
means.
1. Process of identifying , anticipating and
satisfying customer needs through
electronic means.
2. Includes Internet marketing ,search engine
marketing , e-mail marketing , viral
marketing , digital marketing , Tele-
shopping etc.
3. Keeping close to customers
4. Integrates online and off-line activities as
required by the market.
5. Extension of direct marketing
6. Highly interactive in nature
7. Individualized messages are sent to each
customer
8. Transaction costs are less.
1. Telecom marketing
2. DVD and CD Advertisement
3. Cable network marketing
4. Online retail store
5. Kiosks / ATM /AVM – Medium of
information. Kiosks is a digital display or
small structure that businesses place in high
traffic areas to provide information or offer
self-service options , often incorporating as
interactive display screen.
6. IPTV (Internet Protocol Television)
7. Interactive marketing
8. FM Radio marketing
9. In game advertising
1. Reach
2. Scope
3. Interactivity
4. Immediacy
5. Demographic and targeting
6. Relationship building
7. Lower transactions costs
8. Other Benefits
1. Problem of maintaining the security
2. Problem of maintaining reliability
3. Shortage of skilled technical staff
4. Set up maintenance costs are high
5. Sometimes information is misleading
6. There is less or negligible interaction
between buyers and sellers.
 Internet marketing is achieving marketing
objectives through applying digital
technologies.
 E-Marketing is achieving marketing
objectives through use of electronic
communication technologies.
 Increase in access and connectivity to IT
 Any time , anywhere , anyone
 Organisational changes
 Digital revolution and convergence
 Increasing demand for customised products
and services
 Increasing emphasis on reducing operating
costs and increasing profit margins
 Increased product awareness
 Consumer preferences
 Relationship
 Growing importance of social media
 Benefits to small businesses
 The only thing that is constant is change
 Alwin Toffler – First wave society
( Agricultural society in the past ), Second
wave Society ( Industrial Society in the
present ) and third wave society (Knowledge
Society in the future ) – IT era
 E-commerce simply refers to commerce
through electronic media
 It refers to buying and selling goods or
services through the internet
 It is a process of making business
transactions by two or more parties through
computer and some type of network.
 It is the actual buying and selling of goods
and services electronically online.
 It is a market place where business is using
the information technology and network to
establish business relationship and buying
and selling goods and services.
 “the sharing of business information ,
maintaining business relationships and
conducting business transactions by means
of telecommunication networks”.
 E-Commerce includes electronic trading of
goods and electronic materials
 .

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 E-commerce is an extension of traditional
commerce, which is concerned with the
activities of business, industry and trade
including the exchange of goods, services,
information and money.
 The major difference between e-commerce
and commerce is that with e-commerce,
these exchanges of goods and services are
carried out over the web instead t of the
traditional physical act of going to a trader
for goods and services.

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 Interchanged and having the same concepts
 Doing business online
 EB is the term which is derived from e-commerce
 Electronic commerce is a business to business
[B2B] initiative aimed at communicating business
transaction documents on a real time or near real
time basis between known trading partners such
as suppliers, customers etc.
 Ecommerce
 Might be considered as the use of the Internet as
a company’s primary or exclusive portal to its
customers. Amazon or e-bay conducts all of their
business online and their products and services
are exclusively those which can be sold online.
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 E-business refers to companies for which
internet is one of several channels to
customers and perhaps not even the primary
one.
 Banks are a classic example, as are
companies, which have internet storefronts.
But all such entities have other primary
channels to distribute their products.

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1. Increased potential market share & global
reach
2. Easy to expand market with minimum
capital outlay
3. Enable to procure materials and services
from other companies
4. Shorten or even eliminates distribution
channels , makes products cheaper and
increases vendor’s profits
5. Enables customization of products
6. Lower costs of advertisement
7. Easier to launch a new product line
8. Brings companies and customers closer
together
9. Offers greater flexibility
 24
 Saves time , money and effort
 Provides more choices
 Price and product comparison are available
on line
 Provides more efficient customer services
 Provides global market place
 Enables personalization and customization of
product and services
1. Small businesses face tough competition
from large businesses
2. Security fears are a major barrier to the
adoption of e-commerce
3. There are chances of computer viruses and
hackers accessing files
4. Product details and other information about
business are vulnerable to downloading by
competitors
5. New type of intermediaries are essential to
e- commerce. These intermediaries add to
transaction costs.
 Expanded geographical reach
 Expanded customer base
 Increase visibility through Search engine
Marketing
 Provide customers valuable information about
your business
 Available 24/7/365 – Never close
 Build customer Loyalty
 Reduction of Marketing and Advertising costs
 Collection of customer Data

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1. Operating efficiency will improve
2. Better quality
3. Greater customer satisfaction, better
decision making , low cost , high speed and
real time interaction
4. Less time- more transactions achieved same
day
5. Consumers can save their transaction time
6. Cost effective- middleperson

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 New market place and opportunities
 Communication technology
 Innovative and powerful information system
 Supply industry
 Negative impact- retail

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 Lack of adequate infrastructure for IT
technology and Internet
 High tariff rate
 Target of Hackers
 Absence of effective cyber law
 Privacy and security issue
 Payment related problems
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1. Credit card security is a serious issue
2. Costs involved with bandwidth and other computer
and server costs
3. Extensive database and technical knowledge and
experience required
4. Customer apprehension about online Credit Card
orders
5. Constantly changing technology may leave slow
business behind
6. Some customers need instant gratification, and
shipment times interrupt that
7. Search utilities far surpasses the speed used to find
products through
catalogs
8. Encourages competition between small and large
online retailers
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 E-Commerce is a much wider subject than
selling online.
 It is of the view that e-commerce covers any
form of transaction where technology has played
a part.

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1. Business to Business [B 2 B]
2. Business to customers [B 2 C]
3. Consumer to Business [C 2 B]
4. Consumer to Consumer [C 2 C]
5. Business to government [B 2 G]
6. Government to Business [G 2 B]
7. Government to Citizen [G 2 C]
3/17/2023 35
 B2B E-Commerce is the selling, buying, and trading
of goods and services through an online sales
portal between businesses.
 Since both parties involved are business entities
 Furthermore, the relationship between the
companies involve long-term interests.
 B2B (business – to- business) is the major and
valuable model of ecommerce.

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 B2B e-commerce is conducted between two
separate businesses and has been in effect for
many years.
 E-commerce plays an important role in enhancing
and transforming relationships between and
among business.
 Tata ,IBM , Telco , Citibank, BHEL , HULL ,TVS,
Samsung Electronics
 B 2 B is the largest E-Commerce model
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 Consists of the sale of products or services from a
business to the general public.
 Products can be anything from clothing to flowers
and the products can also be intangible products
such as online banking, stock trading, and airline
reservations.
 Sellers that use B2C business model can increase
their benefits by eliminating the middlemen.

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 This is called disintermediation because
businesses sell products directly to
consumers without using traditional retail
channels.
 Business – to Consumer [B2C] is basically a
concept of online marketing and
distributing of products and services over
the internet
 Lower Marketing costs
 Lower order processing cost
 Better customer service
 Lower customer support cost
 Wider markets

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 C2B is a business model in which a consumer
becomes a product or service provider for a
certain company.
 This person often has a certain talent and tools
that can help promote someone’s business.
Companies pay this customer a certain amount of
money for the services rendered. Such services
include:
 writing reviews for personal blogs or websites;
 sharing posts on social media;
 creating photos and videos.
 It provide a way for consumers to sell to each
other, with the help of online business.
 The best example of this type of business is
eBay.com.
 C2C or Consumer-to-consumer e-Commerce
is one consumer selling goods or services to
another consumer online, similar to how eBay,
Etsy, or Craigslist works.
 It is a type of trade relation where both the
sellers and buyers are consumers instead of
businesses.
 B2G refers to the supply of goods and services for
online government procurement.
 This is a huge market which mainly covers everything
from office supplies to military equipment.
 B2G websites offer lower costs and greater choice
to the administration, and make government tendered
offers more accessible to companies.
 B2G is a derivative of B2B marketing and often
referred to as a market definition of public sector
marketing which encompasses marketing products
and services to various government levels including-
federal, state and local- through integrated marketing
communications techniques using as strategic public
relations, branding, advertising, and web based
communications.

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 Government uses G2B model websites to
approach business organiations.
 Such websites support auctions , tenders and
application submission functionalities.
 Online insurance policy
management
 Corporate announcement
dissemination
 Online supply requests
 Special employee offers
 Employee benefits reporting
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1. Supplier Management
2. Inventory Management
3. Distribution Management
4. Channel Management
5. Payment Management

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 Alibaba
 IndiaMart
 ExportersIndia

 tradekey
 tradeboss
 dial4trade
 sulekha
 TradeIndia

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 Making payment through electronic media by
using debit or credit cards for the products
bought electronically.
 Widely used in air ticketing , insurance ,
banking , retail, health care , online markets
and even government institutions.
 E-payment system is prevailing anywhere
money needs to change hands.
 1970
 This is a computer-based system that facilitates
the transfer of money or the processing of
financial transactions between two financial
institutions the same day or overnight.
 EFT is defined as "any transfer of funds initiated
through an electronic terminal, telephonic
instrument or computer or magnetic tape so as
to order, instruct, or authorise a financial
institution to debit or credit an account.”
1. Banking and Financial Payments
 (a) Large scale or wholesale payments (e.g.,
bank to bank transfer).
 (b) Small scale or retail payments (e.g, ATMs).
 (c) Home banking.
2. Retailing Payments
 (a) Credit Cards (e.g., VISA or Master Card).
 (b) Private label credit/debit cards.
 (c) Charge cards.
3. Online E-commerce Payments
 (a) Token based payment systems:
(i) e-cash,
(ii) e-Cheques,
(iii) smart cards or debit cards
(b) Credit card based payment systems:
(i) encrypted credit cards,
(ii) third party authorisation number
1. Electronic Token Based E-payment Systems:
 Electronic token is a digital analogue of various forms
of payment backed by a bank or financial institution.
 It is a unit of digital currency that is in a standard
electronic format.
 Electronic tokens are of three types.
 (1) Cash or real time: Transactions are settled with
the exchange of electronic currency. An example of
online currency exchange is e-cash.
 (2) Debit or prepaid: Users pay in advance for the
privilege of getting information.
 (3) Credit or post-paid: The server authenticates the
customers and verifies with the bank that funds are
adequate before purchase.
2. E-money or E-cash
 E-money or e-cash is an e-payment system. It is
an electronic medium for making payments and
is the trend today.
 It is the creation of electronic money or tokens,
usually by a bank, which buyers and sellers trade
for goods and services.
 It consists of a token, which may be
authenticated independently of the issuer.
 E-cash includes debit cards, credit cards, smart
cards, EFT, ACH (automated clearing house) etc.
 E-cash can be used for making or receiving
payments between buyer and seller
 There are two distinct sets of properties to
consider in a money transfer.
 They are ACID (atomicity consistency,
isolation, durability) test and the ICES
(interpretability, conservation, economy,
scalability) test.
1. Atomicity: this test says that a transaction
must occur completely or not at all.
2. Consistency: All parties involved in the
transaction process must agree to the
exchange.
3. Isolation: Each transaction must be
independent of any other transaction and be
treated as a stand-alone episode.
4. Durability: It must always be possible to recover
the last consistent state or reverse the facts of
exchange. This means reversing charges in the
event the customer changes his or her mind.
1. Interpretability: This refers to the ability to
move back and forth between different
Systems of e-payment.
2. Conservation: This means how well money
holds its value over time (temporal
Consistency) and how easy money is to
store and access (temporal durability).
3. Economy: this means the transaction should
be inexpensive and affordable.
4. Scalability:This is the ability of the system to
handle multiple users at the same time.
 Acceptability: For electronic payment to work, the
system must be widely accepted by and
acceptable to merchants.
 Ease of integration: The website interface must
be effective and well integrated into the total
network environment.
 Customer base: There must be enough users and
enough traffic to justify investing in the e-
payment mechanism.
 Ease of use and ease of access: Users don't like
to wait. Using a payment system should be as
easy as hitting button on the screen.
1. Credit card: Credit cards are now accepted
everywhere. Credit cards are the most
widely used and convenient method of
making online payment. Credit cards work
around the globe, regardless of the location
or country of the issuing bank. They also
handle multiple currencies and clear
transactions through a series of clearing
houses.
2. Debit Cards: Another important and popular
method of making payment is through debit
cards. Debit cards are issued by banks to their
customers who have maintained an account in
the bank with sufficient credit balance. Each
time the customer makes a purchase, an
amount equal to the purchase is debited in his
account. When using a debit card, customers
are drawing money from their account. But in
the case of credit cards, customers are
borrowing money from the banks.
3. Smart Cards: A smart card was first produced by
Motorola in 1977. It is a thin, credit card-sized
piece of plastic that contains a half-inch-square
area that serves as the card's input/output system.
A smart card contains a programmable chip, a
combination of RAM and ROM storage, and an
operating system of sorts, all embedded in the
plastic. It encrypts digital cash on a chip and can be
refilled by connecting to a bank. A smart card
carries more information than can be
accommodated on a card with a magnetic stripe.
The chip's ability to store information in its memory
makes the card smart. Smart cards are basically of
two types relationship based smart cards and
electronic purses. Electronic purses, which replace
money, are also known as debit cards and e-
money.
1. Provides users with the ability to make a
purchase.
2. Holds cash, ID information, and a key to a
house or an office.
3. Provides identification of the cardholder,
authentication of the transaction, and
authentication of the data representing the
transaction. (fingerprints )
4. Encryption and decryption of messages to
ensure security, integrity and confidentiality.
5. A carrier of value in a system similar to what is
known as electronic purse.
4. Electronic Cheque: Electronic cheques are
very similar to ordinary paper cheques
except that they are initiated electronically.
Digital signatures are used for signing and
endorsing electronie cheques. E-cheques
are delivered by public networks such as the
Internet. E-payment (deposits) are gathered
by banks and cleared through existing
banking channels, such a automated
clearing houses (ACHs)
5. E-Wallet : E-Wallet Essential e-payment
system. It operates like a carrier of e-cash
and information in the same way a real
world wallet functions such as carrying real
cash and various IDs. The aim is to give
customers a single, simple and secure way
of carrying currency electronically.
1. Decide on an online site where you would like to
shop.
2. Download a wallet from the merchant's Website you
intend to shop. The special form requires you to fill
out personal information such as credit card
number, phone, address etc. When making a
purchase, you click on your e-wallet and the order
is automatically completed.
3. Fill out personal information such as your credit
card number, name, address and phone number
and where product should be shipped.
4. When you are ready to buy, click on the wallet
buttons and presto, the buying process is fully
executed. Billing information is automatically filled
out.
The most popular wallets available are: Microsoft, AOL,
Gator, Cybercash, Yahoo, and 1BM etc.
1. The customer places an order online by
selecting items from the merchant's website
and sending the merchant a list. The merchant
often replies with an order summary of the
items, their prices, total amount, and an order
number.
2. The merchant confirms the order and supplies
the goods or services to the customer.
3. The consumer acknowledges and approves this
information and returns it to the merchant
4. The merchant then generates an authorisation
request for customer's credit card and sends it
to the merchant's bank.
5. The merchant's bank then sends the credit
authorisation request to the customer.
6. The customer sends an acknowledgement
back to the merchant's bank after receiving
an acknowledgement from the customer's
bank.
7. Once the customer's bank authorises
payment, the merchant's bank authorises an
acknowledgement back to the merchant
with the authorisation number.
1. Connectivity
2. Scalability
3. Maximum throughput
4. Load balancing and Linear growth
5. Reliability
6. Security
1. Spoofing: Spoofing is a type of scam in which a
criminal disguises an email address, display name,
phone number, text message, or website URL to
convince a target that they are interacting with a
known, trusted source. Spoofing often involves
changing just one letter, number, or symbol of the
communication so that it looks valid at a quick
glance. For example, you could receive an email
that appears to be from Netflix using the fake
domain name “netffix.com.”
2. Unauthorised disclosure: When information about
transactions is transmitted in a transparent way,
hackers can catch the transmissions to obtain
customers' sensitive information.
3. Unauthorised action: A competitor or an unhappy
customer can alter a website so that it refuses
services to potential clients.
4. Eavesdropping: The private content of a
transaction, if unprotected, can be intercepted,
when it goes through the route over the Internet.
5. Data alteration: The content of a transaction may
not only be intercepted, but a altered, either
maliciously or accidentally. User names, credit card
numbers and amount sent are all vulnerable to such
alteration.
6. Phishing: Phishing (pronounced as fishing) is a
specialised form of online identity theft. It means
obtaining personal details online through sites and
e-mails masquerading legitimate businesses. A
common form of phishing is where a spam e-mail
is Sent out purporting to be from an organisation
such as a bank or payment service (spam e-mail
unsolicited e-mail usually sent to try to sell or
market a product or service).
1. Business practices: A customer may not know
that the order will actually be filled. The retailer
may disappear with the money without sending
the goods. This is a risk for the customer.
2. Information privacy practices: Sometimes the
website owners do not keep the privacy of
sensitive information of customers. This is also
a risk for the customer.
3. Transaction integrity: Electronic transactions
and documents may get lost, changed,
duplicated or incorrectly processed. This brings
into question the integrity of electronic
transactions and documents. Disputes may
arise regarding terms of transactions or billing
issues.
4. Information protection: There are different
types of risks connected with information
protection. Some of them are disruption,
destruction, disaster, and unauthorised access.
The people behind website should take
appropriate steps to protect customer
information.
5. Consumer recourse: Customers may be
concerned about how their complaints may be
handled. They may also be concerned about
any warranty disputes. Customers may be in
another country. They are concerned about how
their rights are protected. Court action is
expensive for all.
1. Authentication: Customers must be able to assure
that they are in fact doing business and sending
private information with a real and existing
business organisation.
2. Confidentiality: All messages in the e-marketing
environment should be confidential. Information
must be protected from the eyes of unauthorised
internal users and external hackers.
3. Integrity: Transaction must remain unmodified
during the transit between client and server.
Communications must be protected from
undetectable alteration by third parties in
transmission on the Internet.
4. Non-repudiability: After sending message, the
sender should not be able to deny the message
after some time.
5. Privacy: There should be sufficient provision
to safeguard message that is being sent or
received over Internet. The message may
sometimes be read or even altered by
someone unknown interloper. This problem
is technically called unauthorised network
monitoring or packet sniffing (sniffing is the
act of reading unprotected packet
information as it ravels over a network.
Packet means data being transferred over a
network in a unit)
1. Anti-virus Programme: The first and most
critical element of Internet security system is
antivirus software. If organisations do not have
up-to-date antivirus software, they are asking
for trouble. Antivirus software scans computers
for signatures of a virus.
2. Integrity checking software: Integrity checking
software should be installed on the server to
face many threats. The idea behind this is that
a database of file checksums for critical system
files will be created for each of the computers.
The integrity checker will then be run at regular
intervals to ascertain whether data have been
changed by a hacker
3. Audit Logs: The audit longs along with the firewall logs
are to be examined on a semi regular basis with the aim
of the detection of abnormal activity. Web access logs
checks to see whether any CGI (Common Gateway
Interface-a method of processing information on web
server in response to a customer's request) script
attacks have been done. The logs will be used to identify
the source of some hacking attempts or denial of service
attacks.
4. Firewalls: Firewalls can be used to minimise the risk of
security breaches and viruses. Firewalls are usually
created as software mounted on a separate server at the
point the company is connected to the Internet. Firewall
software can then be configured to accept only links
from trusted domains representing other offices in the
company or key account customers. Thus, all access to
the Internet will go through firewalls. This means the
Interne traffic will be able to be watched closely. Hence
any misuse can be noticed quickly
5. Backups: In order to protect the data in the system,
we take back ups of all critical files on the web
server. Hardware and software can be used for
backups.
6. Encryption: Encryption software using cryptography
is used to secure all financial matters or
transmission of any sensitive information.
Encryption is a process that conceals meaning by
changing messages into unintelligible messages. It
is the scrambling of information into a form that
cannot be readable. It is the process of
transforming information before communicating it
to make it unintelligible to all except the intended
recipient. To encrypt or decrypt information,
mathematical formulas called cryptographic
algorithms, or ciphers and numbers called keys are
used.
7. Digital signature: Digital signatures are used
not only to verify the authenticity of the
message and claimed identify of the sender but
also to verify message integrity. A message is
encrypted with the sender's private key to
generate the signature. The message is then
sent to the destination along with the
signature. The recipient decrypts the signature
using the sender's public key. If result matches
with the copy of the message received, the
recipient can ensure that the message has not
been modified during transmission because
only the originator is in possession of the
corresponding encryption key.
8. Digital certificates: A digital certificate is an
electronic file that uniquely identifies
individuals and websites on the Internet and
enables secure, confidential communications.
9. Secure Sockets Layer Protocol: SSL was originally
developed by Netscape Communication. It is an
information technology developed for transmitting
safely over the Internet. SSL enables a private link to
be set up between customer and merchant.
Encryption is used to scramble the details of a
transaction as it is passed between the sender and
receiver and also when the details are held on the
computers at each end. It would require a
determined attempt to intercept such message and
decrypt it. The main facility the SSL provides is
security and confidentiality.
10. Secure Electronic Transaction:
11. Hardware technologies: For securing information
some hardware technologies are used. The
hardware technologies include network intrusion
hardware, physical security measures and virtual
private network and smart cards.
 Hacking is a computer crime in which the
criminal breaks into a computer system for
exploring details of information etc.
 It means destroying, deleting or altering any
information residing in a computer resource
or diminishing its value or utility or affecting
it injuriously by any means with the intent to
cause wrongful loss or damage to the public
or person.