> CONTENTS capeer | sestory of Ecommerce and tndian Busine tectonic Commerce j Commerce Categories Advantages of Ecommerce Disadvantages of E-commerce Threats of E-commerce Features of E-Commerce Emergence ofthe Internet. 17.1 Internet 1.72 Advantages of internet ls 16 8 The Item and Indi. 181 The Future ofthe Internet in India 19° Emergence ofthe WWW 191 Commercalization 1.10 Pros and Cons of Using the Internet. 10,1 Pros of lneret. 1.102 Cons of Internet LI E-Transition Challenges for Indian Corporate Questions and Answers Review Questions Chapter 2 Business models of e-commerce 24 Imronton 22° What isan eCommerce Business Mode? 22.1 E-business Model based onthe relationship of pares s 222 E-business Model based onthe relationship of oes juestions and Answers. “= ew Questions ‘Questions and Answers, Review Questions cnapter 3 Technologies In the World wide Web ‘world Wide Web. ret Client-Server Applications Information Overload. Inve 321 331 ‘A Typology of Agents. Internet Standards. 361 Injemet Protocol Address 3.7.1 The Dotted Decimal Address: xx. Internet Standard Specificatc 38.1 Requirement Levels. chapter 4 E-Marketing Introduction Importance of E-Marketing. 2 421 Advismgs dM ge of deat. ‘Traditional Marketing... fe 43.1 Traditional Marketing Categories. Implementation of Traditional Marketing Strategies. 44.1 Advantages and Disadvantages of Traditional Marketing Identifying Web Presence Goals... - 4.5.1 Lists of Web Presence Goals and strategies... Importance of Web Presence. Online Marketing 47.1 Benefits of online marketing. 4.7.2 — Online Marketing Tools.- CONTENTS 1 story of commerce and indian Business uA letrnic Comers 12 ECommerce Categories fF Advantages of Ecommerce 14 Disadvantages of E-commerce 1S Thea of E-commeree 16 Features of E-Commerce 17 Emergence ofthe Inter. Lah eter 172 Advantages of internet 18 The temetand India 1181 The Ftue ofthe Internet in India 19 Bmenence ofthe WWW. 191 Commercilization 110. Pros and Cos of Using the Items L101 PosofIntemet 1102 Cons of ferme LUT Transition Challenges fo Indian Corporate ‘Questions and Answers. Review Questions Chapter 2 Business models of e-commerce 21 Amroduction 22” What isan eCommerce Business Model? 2.2.) E-business Model based onthe relationship of transaction pates of 222 E-business Model based on the relationship of transaction ‘pes Question and Answers Review Questions. Technologies in the World Wide Wed 31-322 aa coapter 3 World Wide Webs 3 Imemet Client-Server Aplications a 32 32.1 Information Overton... 3 5.5 Software ABER nn tA, 33.1 Valo of Software Apes ia Networked Wold oa 3S ja A Typology of Agemts.a 36 25 meret Standard. AIS st Oricon oe Sede 33 “i Invemet Service Provider (ISP)... ccaats 36.1 How 10 €ho056 29 ISP? conn 316 417 Intemet Protocol Address ae 37.1 The Dotted Decimal Address: x2.x.« 317 3 Internet Standard Specifistoms 0. 38 381 Requirement LeVElb.cnnsso 319 ‘Questions and Answers 321 Review Questions z ae cagcer 4 E-Marketing 4n-424 4.1 tmtroduetion ~ 41 22) Kaponmce of Eee 42 421 Adammgat alge cerca eT 43° Traditional Marketing. — 43 42.1 Tadhional Madi Cope i 44 44 Implementation of Traditional Marketing Strategies. Ad 441 Advantages and Disadvantages of Traditional Marketing 4.5 45 denttying Web Presence Goals. 46 45.1 Lists of Web Presence Goals and strategie oon onsonnn46 446 emportance of Web Presence ee 47 Online Marketing. on ae 47.1 Benes of online marketing 4.10 AM 472 Online Marketing Tools...ee. Feat seer rg sz Din “ag _ types ere AGN (6 e-aning %, 410.1 Features of E-Branding {1102 Impose of Onine Branding ‘bing eefis of Online Bran Questions and AnSwen. “ Review Questions cnaprer 5 $1 tnodacion S11 Why we aed Information Security? 152 Information syste Scouty 153 Ovelook eCommerce seeuniy. ‘S31 Common Ecommerce Security Issues, 54. E-commerce website security measures 54 business Risk Management sues. 5S Legal and Ethical sues 56 Gerling 561 Legal apes of eyhertaking 57 Reding the Amount of lformaton available 58 Using Fake Profs 1 Act as Decoys S81 Privacy iat Risk m the internet Age 59° Phishing 591 Typesof Phishing 592 How is Phishing done? 593 bles on ecommerce 510° Applian Feud S101 Types of E-Commerce Fraud 5101 How w leatity Ecommerce Fraud Online $102 Steps for Preventing Fraud on Ecommerce Store sents memati ere) if” Skimming. 7 534 S11 How eakeming works. 335 5112 How to avoid Skimming... 537 542 CopyiBht mene 5 RS 534 é 21 sses of Copyright in E-commerce 538 513 Intemet Gambling a 5.40 540 S131 Typesof Online Gambling. ae 3152 La Pi ARE ME 5.4 SBE Threats to Children cso Prooting chile rm interes isk. sus Questions and Ans Weta 345 Review QUestONS roman 7 61-634 chapter 6 E-Payment Systems 6:1 Intodetion : 62. Typesof Electonic Payment Systems. 63 E-Ca : 631 Properties of E-Cash 3 6.32 Electronic Cash Storage on. 64 Main Concemsin Internet Banking. - (641 Features of Online Banking 642 Advantages ofntemet Banking 643 Disadvantages of ItemevOnline Banking . (65 Digital payment requirements in & commerce (65.1 Types of Electronic Payment Systems 6.52 _ Digital Token-Based Electronic Payment Systems, 653 Classification of New Payment Systems, 166 Electronic Checks 66.1 Sert Cars Electronic Payment Systems. “612 612 813 02 a 6.14 a 6.14 665ss ‘Questions and Answers. Review Questions chapter 7 mu 2 74 JA 1s Designing E-Payment Systems (62.1 Basic Requirements 4672. Components that Make E-Payrent System, 162.3. Elecronic payment gateway - interfaces 674 Protocol Design and Verification Digital Signatures. {641 Applications of digital signatures. 683 Digi sigaaturealgoithms “Online Financial Services in India {691 Why Digital Financial Services? 69.2 Ten Typesof Financial Services in India (Online Stock Trading, {6.10.1 How does Online Trading Work? {6102 Offtine vs Online Trading 6103 Online Trading Benefits Introduction ‘Mobile Commerce T21 M-Commerce vs, E-Commerce, 122 Types of Mobile Commerce 723 Applications of Mobile Commerce 4 724 Advantages and Disadvantages of M-Commerce... Wireless Applications. 731 Applications of Wireless Communication. Cella network 741. Major Characters of Celia Networks 742. Frequency Rese and Its Applications (Cel Fundamentals 751 Cellular Hierarchy 752. Global System for Mobile (GSM) Communications. {Informacion systems for Mobile Commerce 7.1~ coapcer 8 81 4 ss S21 Typesof E-Commerce Portas a 4 76.1 Whatis Spettun?... 74 7162. How Does Speetum Work? se 718 1.7 Technologies for Mobile Commerce 716 271 Wireless Technologies, 216 7.72 Types of Wireless Netwotksno- 77 773. Types of Wireless Communication 718 174 _ Wines Technology Today no nnnon 720 Generations in Wireless Communication ve T2 74 Security Issues Pertaining to Cellular Technology 728 741 Risks to your Wireless Network. 126 282. Theft of Mobile Devices... 128 243 Whats you doo ia ie i 1 you wi ewan? Se Questions and Answers. ae ee Review Questions. — 732 Portals for E-Business Intovetion 111 What the beefs of por? -¥-Commere Portals $22 Pros and Cons of E-Commerce Portals. Portas in an E-Commerce 2.0 World 83.1 Vaney of Portas... 832 Soci Commerce Portals Human Resource Management. 4.1 Importance of Human Resource Management. $42 How does HRM work? a 84.3 Objectives of Human Resource Management. S44 Skills and Responsibilities ofan HR Manager. HRM software... 551 Human Resource lnformaton Syote (HRS){56 RIS Models Qoestions and Answers Review Questions Chapter | HISTORY OF E-COMMERCE AND INDIAN BUSINESS CONTEXT 44 ELECTRONIC COMMERCE ‘Electronic commerce, commonly known as E-commerce is trading in products or services using computer networks, such as the Internet. @ Electronic commerce draws on technologies such as mobile ‘commerce, electronic funds transfer, supply chain management, Intemet marketing, online transaction processing, electronic data interchange (EDD, inventory management systems, and automated ata collection systems. ‘© Modern electronic commerce typically uses the World Wide Web for at east one part ofthe transaction’ lifecycle, although it may also use other technologies suchas e-mail Definition of E-commerce Sharing business information; maintaining business relationships and conducting business transctions using computers connected to {elecommunication network i called E-Commerce 4.2 E-COMMERCE CATEGORIES 1. Electronic Markets Present a range of offerings available in a market segment so that the Purchaser can compare the prices ofthe offerings and make a purchase . mae comme 2 Teens hme fv neon tment a 6 Ds & eet - bean Te pb of ot ta we i rd Marre do tt cane phe op ye cles wen vente cr ie conic Makes Inert rot cimmerce coeed Fig 14: Three categories of Ecommerce 4.3. ADVANTAGES OF E-COMMERCE © Buying/seling a varity of goods and services from one’s business. © Anywhere anytime transscton, (Cam look for lowest cost fo specific goods or service. Businesses can each out to worldwide clients - can establish partnerships © Onder processing cost reduced © lectronie funds wansfer faster, Supply chain management is simpler, faster, and cl History of €-Commerce and Indian Business Context ory HE Commerce end ndion Business Context 1.3. 13 + Can order fom several vendors and monitor supplies Froduction schedule and inventory of an organization can be ‘spsted y cooper spi who can in-tum cede ter DISADVANTAGES OF E-COMMERCE Eicon data interchange wing EDI in expesive for smal Security of internet snot very good * viruses, hacker attacks can parle e-commerce Privacy of e-ransactions isnot guranteed E-commerce de-personlises shopping ‘THREATS OF E-COMMERCE Hackers attempting to steal customer information or disrupt the site A server containing customer information is stolen {Imposter ean misor your ecommerce site wo steal customer money Authorised administtorsusers of an scommerce website downloading hidden active comtent that attacks the ecommerce system, A duafected employee disrupting the ecommerce system, ° |isalso worth considering where potential threats toyour ecommerce site might come from, a identifying potential threats wil help you to protect your site, Consider: Who may want 16 access your ecommerce site to cause ‘Ubiquity: InemevWeb technology is The marketplace is extended ‘beyond traditional available everywhere: at work, at home, andHistory of £-Commerce and indian Business Context 15 ‘system is motivated to ensure that there is end-to-end connectivity of every part ofthe network temporal and elsewhere pic locaton. Marketspcet re. Customer Ven Tpoundares and is removed fiom mobile devices, anytime. 08 created; shopping can take place any ‘senhanced, and shopping costs are reduced. a Ju The technology reaches Commerce is enabled ap ae ional boundaries, around the earth. nati 1.7.4 Internet The Intemet isa global network of computes that allows people to sen email, view web sites, download files such as mp3 and images, chat, ‘ost messages on newsgroups and forum and much more: ‘The Internet was created by the Advanced Research Projects Agency. (ARPA) of the US. government in 1960's and was first known as the ARPANet. AU this stage the Internets ist computers were at academic and. government institutions and were mainly used for accessing files and to send emuils, From 1983 onwards the Intemet as we know it today started to form with the introduction of the communication protocol TCPAP to ARPANet. Since 1983 the Interet has accommodated a lot of changes and. continues 10 keep developing. The last two decades has seen the Internet accommodate soch things as network LANS and ATM an frame switched [apes eee tay et non meen ic iy inferno ant ins coum + elude a cag setts ty ere cl me set of There is one set of te lobe. 4 Richness: Video, audio, and text messages Video, audio, text marketing messages ae are possible. integrated into @ ‘matketng message and consuming experience. Interactivity: The technology works Consumers are engaged ialog tat through interaction with the user. dynamically a experience tothe individual, and makes the consumer a cop. {in the proces of delivering goods to the marke. % Information density: The technology Information proc storage, and reduces information costs and raises ‘The Intemet continues fo evolve with it becoming available on mobile phones and pagers and possibly on televisions in the future. 1.7.2. Advantages of internet There many advantages to using the internet such as communication costs drop dramatically, while currency, bie : and timeliness improve greatly, Information becomes cheap, and accurate, ‘© Personaization/Customization: The Personalization of m ‘messages and technology allows personalized ‘customization of product and services are be delivered to individ swell as groups. based on individual characteristics. | E-mail : Email is now an essential communication tool in business, Its also excellent for keeping in touch with family and fiends, ‘The advantage to email is that itis free (no charge per use) when ‘compared to telephone, fax and postal services, 2. Information: There is » huge amount of information available on the internet fr just about every subject known to man, ranging from ovement law and services, trade fairs and conferences, market information, new ideas and technical suppor. 3. Services: Many services are now provided on the intemet such as ‘online banking, job seeking and applications and hotel reservations, Often these services are not available off-line or cost more. 4.7 EMERGENCE OF THE INTERNET. ‘The Internet is short form for an interconnected network. becomes vital part of our lives, helping us connect with people: The lteret is made of large number of independently operated rs fly disibued with no central contol, Each independentcome am eon ey itbes: communities of all types have sprung “ew onnon eS mage Peseing ou COMPANY Jameson ant Pspeine rr ae clog 59, an tat ce one BOO BS fn prs en And eo supe your ce inthe mo Se nd mas averse 0 he ee Seen We rae Na tue wold. A Lending E86 ss leading 9 that you ae fii magazines fame to avoid playing catch-up ate Improved Customer Service: The companies are availble aannrers 24 hous ys 7 days a week. The Internet never rcsenercstmer needs information about any company cc eres, they can access the company's Web Page ‘Market Expansion: Te Internet isa global system. Latest eta thre ar abou 40 milion people with acces othe ths nrbers rowing every day By simply posting a ‘you ae also adresing International marks Low Cost Marketing: Imagine developing a full color without having to incur the costs of proof, printers, Jong lead times between revisions, and more, The i colo product or services brochure that is interactive incorporates tx, gaps, audio, andlor video. One ‘tumediately updated without incurring the usual costs smatral uptates Low Cost Sling: Without the cost of direct sll ‘customers can get detiled information about your services at any time. And they can easily order your tory of £-Commerce and indian Business Context wu ‘he Internet, request ational information be sent to them vin & request form on your Web page. 1, Lower Communication Costs: Your time, and your emplosees time, is valuable. Most busneses and organizations spend time answering the same questions over and over again. With a Webpage you can make the answers 4.8 THE INTERNET AND INDIA ‘The intemet is one clement that has lately emerged as a cri clement fora comfortable and ficient ifesyle. The “interethas 20% ‘become the essential center for everybody, whether for communication oF rescrch, iterating with ope ot for formal occasions Arguably, technology has always been one of the mos important factors infuencing human lie. Each new technology ushers ina tsunami ‘of change that sweeps acros the individual, profession, clara, and ‘economic element of ogaizations and eustomer throughout the word “Throughout the lst 25 years, India as sen the influence of technology 00 its conomi, anc, apd social sectors. One such emt that has recently taken the Indian crow by a tom is wireless communication. ‘Wireless communication has not only evolved dramatically over he yeas uti has advanced at «considerably quicker rat than it hasbeen ‘opted. For today’s ge, 4G aswel as high-speed Wi-Fi conection are ‘requirements, and in the fare, technologies lke loT (tere of Tings) tn SG would pay eral ole shaping the generation’ liesyles But, bere we get into the futur, le’ tke a step back and lam more about the evolution of the internet ven though Videsh Sanchar Nigam Lid. (VSNL) now widely recognized as Tata Communications Lt. fist opened eyberspce 0 the citizens in India on 15 August 1995, we usd to connect to the internet via a modem (bie for modulatordemodulac) a machine that allowed a ‘computer o send signals over standard phone ines by transfering analog signal into digital one, “The modem was dificult creature to tame. It would make a hf sound and would be dificult o connec to the phone line. One had to iaECommerce Te Themet service provider's (ISP) even if it eventually connected, join with the or, I be able to access the internet ‘gain and agin t0 ‘computer network. Further was no assurance that you woul iseuptions India was indeed 1wcky i available tothe general pubic, ‘we had access to online Browsers htbough both are now part of ‘The Internet Legacy “The VSNL Gateway Tntrct Access Service (GIAS) was in snailabe in Bombay (curently Mumbai), Deh, Calcutta (today Kola ae wel as Madras (curently Chennai). By the end of 1995, the ae Bangalore (currently Bengaluru) and B in tat by te time the Internet was the World Wide Web had developed, Tike Mosaic and Netscape Nay had been expanded 1 cover Nevertheless, the formal opening ofthe Internet forthe Indian ‘nasa colossal blunder since VSNL underestimated the underlying d which was compounded by hardware and network concerns VSNL, on the other hand, was able to introduce 10,000 Intem subscribers in about six months after the failed debut. A year after th software services lobbying group Nasscom set up a stand for VSNL} Mumbai's Nebru Centre to show what the Intemet can achieve. Look cspecily at India, the previous 25 years have witnessed an except Jevel of technological innovation. Internet connection used to need up connection via your phone's line at excruciatingly slow rates in 0 to view emails. Nowadays, millions of citizens in India use fouchset phones to access the Internet at great frequencies from any place highly postive. On the one hand, emerging technologies like 5G, intelligence, and machine leaming are expected to not only pra everyone with high-specd acess othe inteet. Tt would also make the interet more customized and perso with new technologies such as holographic presence, super high video, and virtual reality being availabe 1o everyone Hislory of Commerce ond indian Business Context w -& India to remain the fastest growing internet destination India's internet user base has already surpassed the US, and today fs second largest ater China, Globally, the mumber of intemet wsers is expected to ouch 4,170 milion by 2020, growing at a CAGR of 6%, and adding 960 million inthe next five Years, ‘@ The type of internet users in India i set to change dramatically, Less than 10% of India's population lives in Tir cities. Intemet penetration in these area has alteady reached saturation, and we estimate that 75-80% of new use growth will come from rural reas in the next five year, Intemet businesses wil have newer set of customers who will + Access contet via mobile phones nd not laptops and deskiops. ‘+ Want content i local Indic) languages and no in English + Prefer to consume content vi videos, rather than text “© Lastamile connectivity to be enabled by government, telcos and, ‘technology providers, “Multiple stakeholders will need to work in tandem to bring the next ‘generation of Intemet users (rum, mobile-entric, and loca-language consumers) online in India ‘4 Businesses and consumers to come online, creating an ecosystem ‘of SMBs and miero-entrepreneurs Today, there is an Internet business for almost everything selling old furniture, shopping onlin, booking ave, networking with ends, making payment, consulting dotors.the lst goes on. Even offline busineses are trying to get apart oftheir value chain online. 4 From an Internet Economy tothe Internet of Things marching ahead to connect India For creating smart cities, Indi needs a balanced focus in tems of modernising city infrastructure ad leveraging technology to improve the efficiency and capacity of ety services.MERGENCE OF THE WWW Sere Bich cient invested he Word Wide Tim Berners-Lee, «Brits usa ww in 1988, tale working at CERN. The We tet the demand for automated inf cone a ives ad insite around the sy nas to merge the evolving technologies oa powerful and easy tq Sharing between scientists The basic iden of he WW mputers, data networks and hypertext bal information system ‘World Wide Web (WWW), byname the Web the Teding i of the Inmet (the worldwide computer network), Wheh ver tmers aces oa vast aay of documents that ae eo hypertext or hypermedia Hinks i. other by means of hype related picces of information in order sins that clecronic comet Allow a user easy acess othe Hypertext allows tbe user to select a word or phrase from text thereby accent other documents that contain additional inf pertaining to that word or phrase, Hypermedia documents featire Tinks images, sounds animations, and movies. “The Web operates within the Internet's basic client-server fo server are computer programs that store and transmit documents to computers on the network when asked 1, while clients are prog that request documents fom server as the user asks for the. software allows users to view the retrieved documents. 1.8.1 Commercialzation ‘Bepnning inthe mid-19%Ds, the Word Wide Web helped propel Internet oa new stage of mass consumption, and in the process both radically transformed as was the society that used ther, The Internet World Wide Web opened new ficlds of debate aver social and cl concems, including the right a privacy, the protection of children harmfl o inappropriate materials, freedom of speech as it lectonic networks, intellectual property, issues of social equality, security of nancial and personal data online, and a host of other History of £-Commerce and naan Business Context 1 ‘As businesses grew increasingly interested in the Internet and the ‘Web for their own strategies, the race to take advantage of the emerging ‘e-commerce markets highlighted the needs of commercial interests inthe {nemo architecture, in Web-and e-mail-hased security measures, and in ‘pusiness models structured on Intemet communications and technology Intum, businesses used these technologies as tools to enter and take _adsantage of new markets throughoutthe world, inthe proces furthering the ‘rolferation ofthe Intemet and the globalization of the worlds economies. In the process, the range of socal and cultural concems connected tthe ‘Web andthe Intemet were intensified. 4.40 PROS AND CONS OF USING THE INTERNET Intentionally or unintentionally Internet usage is a part in the day to day lives of every individual. The Internet has made lives easy and comfortable, but atthe same time made human being dependable forthe smallest of biggest of information. Discused below are the uses of the Internet long with Few cons thai brings along, 1.10.1 Pros of Intornet “© Easy Access to: Information — Information on anything and ‘everything are available online. The Toternet makes it convenient to learn about sew things a any pot in time and get details on various subjects, imespective of time and plac, © Platform for Online Education ~ With the advanced technology, ‘even students and adults wish to lear. new things and gaining ‘knowledge at various online portals has become more accesible, © Job Hunting ~ Employers can look for employees on the internet tnd the jb seokers can apply online Fr jobs using the Internet. © Platform to become an Entrepreneur ~ Today thousands of people nave started their own websites and getting good business and users! customers by making their own websites and selling products or services. This as become accessible due to Intemet connectivity. © Visual and Graphical Representation of ‘Things ~ Various researches have shown that person tends to get more engaged withhas made this Sn net Tenn eo = semen fr bh r= Be, a recuse ofatemet connection eng an extemely essen eer ia wre of the disadvantages of the | fnmporten that person is well ava its excess USHEE Cons ot Internet people for looking things ‘The dependency of peor ha increased massively since the introduc a4 Dependency information olin = 4 use intemet for learning People can easily find online games, © Distraction re which may be a cause of distraction for information, eon © Ballying and Trolls ~ Online platforms are being used fOr un practises like bllying people and trolling them. 4.11 E-TRANSITION CHALLENGES FOR INDIAN COR xt in nia is growing at a remarkable pace The e-commerce if tw igh penetration of intemet and sophisticated electronic devices the reent growth rate of ecommerce in India is far lagging behind other developed countries. There are many big problems and cha the way ofan online merchant. Factors like safety and security of money transaction beng the biggest problem along with others, have ‘te smooth expansion ofthe online industry in the county. Anmough, major poron of e-business sectors have affected below mentioned challenges but sill there are few online giants Makemytip.com, fipkar com, Snapdeal.com who have 0% stallenges nd represents the perfect growth trends of e-commerce History off. Commerce ond indian Business Context 1 13 ‘Online Transaction: Mos of Indian customers do no possess plastic ‘money, creditcard, debit card and net banking system, which isone of the prime rasons to curtail the growth of ecommerce, Nevertheless, tn recet years, some ofthe nationalized banks have started to issue ‘debit card wo als account holders. This is undoubtedly a positive ‘ign for Indian online entrepreneurs, ‘Cash On Delivery: Cash on Delivery (COD) has evolved out of less penetration oferedit ead in India. Most of Indian E-commerce ‘companies are offering COD as one of mode of payment forthe buyers 30%%:50% of buyers ate also taking advantage ofthis mode ‘of payment while making purchase of any product and service over ‘internet. COD has been introduced to counter the payment security ‘issues ofonfine transaction, but this mode has been proving to be Joss and expensive tothe companies. Ie seen that majority ofthe customers denic to make the payment a the time of delivery ofthe product. Hence, companies tend to lose the sale along with product wansi es, In order to cur the problem ‘COD, online companies should take some judicial steps; otherwise asi logic behind the ecommerce business willbe at isk. ‘Online Security: Incase of startup and small business, Business ‘owners are ignoring the importance of authentic software due to ‘budget constraints. They are even failing wo take the initial steps to secure and protect their online business through installation of authentic protection services like antiviras and firewall protection, ‘which indeed a crucial step for successful online business players. In India, maximum number of business entrepreneurs used unauthorized software in their sorver, which usually does not come wvth ungraded online security Such nirated software leaves room for virus malwvares does not come with upgraded online security. ‘Such pirated software leaves room for virus. malwares and Trojan stacks and it is highly risky task to make online transactions inthe systems, which may dislose or leak sensitive details of credit cards and online banking ofthe users. These kinds of droopiness should becamerve sectors. Alliston to i a mandary tion FOF CVT posed 35 scl pment Services 10 Indi, logis PART A (2 MARKS) agit: wT) sof improvement. While, pert 1. What is E-Commerce? series required key reasons behind the one of the Ke ‘E-commerce (electronic commerce or EC) ste buying and selling of ois erie ing far behind in this sect ging far behind — pools and services, or the transmitting of funds or data, over an electronic oe copay tin cline company villages are ail not covered under ae re er ad logistic companies. vermet eo mao oe ‘These business transactions oecur either as busines-to-business, : ‘wing o the Tmited services mnabig way busness-to-consume, consumerto-coasumer or consumer-to-business. es Sanremo Canal ea clo This factor creates accounting problems 2. Define EDI Electronic Data Interchange (EDI) is the computerfo-computer xchange of business documents in a standard electronic format between 3, Weite the Goals of Security. Ind nbn business compan 4. Privacy, ear factor: Fear of making online payment is a fi tmegriy pethobes! ftr of Indian customers. With the aes vo online transactions and its reliability Sleowiarererempmeretss ie Arby feels enazing themselves in online shopping. But stil 4. List out the eards available in E-commerce. of eatomes arent aware of online tansactions and its 1 credit cards, They ofc lotn to dslose their credit ard nd bank oan prefered to stay away from online world of shopping. WC “ouch and Fel factors: Indian customers are more Mass in buying products physically. They tend to choose the by touching the product diretly. Thereby, Indian buyers ‘nin to do ticketing and booking onbine in Travels sand clecvonics Companies dealing with products ike hundirafs,jewelry hae o face challenges to sell thei ‘he buyers wantto see and touch before they buy these \d ISP, NSP, ADSL IMP and PSTN. |. ISP- Intemet Service providers. ii, NSP Network service Providers, li PSTN - Public Switched Telephone network. |v. ADSL-~ Asymetre Digital Subsciber ine. ¥. IMP- Internet Mercantil protocoloe cher sng Pere down te a cations of E-commerce? ern fd tafe errs interation rer supported coisorative work try data interchanges Internet ipeword'slargest IP-based network. isan, very dierent counties onal seven et ‘heii Define Protocol A pool te ‘addresses, bow data is split into packets. revise set of rules defining how REVIEW QUESTIONS PART B (5 MARKS) Edortly expin bow to establish trust in e-commerce. apna latret and WWW tots which ads e-commere, Discs the pros and cons ofthe internet for e-commerce, Explain the Major sues of Inteet. Explain the Commercial Transaction Process in E-Commeroe, ‘Wite note World Wide Web. Explain the Lepl issues of Intemet Commerce. Explain the Benefits of commmerce ‘PART C (10 MARKS) Explain he Threats of commerce. What are the features of ecommerce? Explain in detail. Explain the Future of inte in Inia Describe E-Transiton Challenges for Indian Corporate. Chapter 2 BUSINESS MODELS OF E-COMMERCE 24 INTRODUCTION “The digital shi sa very real trend and businesses nt already online will need to break into the ecommerce landscape sooner rather than late. [Applying the right ecommerce business model tothe online store will Be ‘one ofthe fist steps Not taking the time to evaluate your business and understand your target market ean be extremely detrimental an lea to thousands in wasted spend. Digital advertising, SEO, and content marketing are effective ways to drive trafic, evenue and help you realize a large ROI, but they won't be nearly as effective without a well-planned eCommerce business strategy. \Whether you're just starting explore ecommerce or already have an established digital commerce venture and are looking to expand your important to know which model best fits your needs 2.2 WHAT IS AN ECOMMERCE BUSINESS MODEL? lectronie commerce, of eCommerce, is a business model that lets businesses and consumers make purchases or sel things online, Atthough there are many different ways to categorize e-business models, they can be broadly categorized as | E-business Model based on the relationship of transaction parties. 2. E-siness Model based onthe relationship of transaction types.‘22 & bese pacties ynmerce busi shir ae six sor ECO Consumer (B20) pusness 0 ess o Business (B2B) 1 2 Boss sins to Government (B2G) 1 o Consumer (B2B2C) Business o Business 1 C 5 Conaer to Consumer (C20) met 1 Business (C2B) vanadst 2. Fig. 24 1. Business to Consumer (820) Asthe name implies, business o consumer (B2C) is when a lccctly to end users, It isthe ecommerce is futly straight f marks its produto servi now frm of commer complete 2 B2C transaction everytime you purchase ood fr stor et inert aresaurant, watch a movie ata theater, and get You ar the end use ofthe products and services these con 4 € Commerce, there are five diffrent B2C models: ‘onlin ited, advertising-based, community-based, andl irs sling isthe most common model. I is when Products from online retailer “© Inthe advertising-based model, information is given away for free and money is made fom advertising onthe site. | @ Facebook is an example of « community-based site that makes _money from targeting ads to users based on their demographics nt location. © Finally the fee-based model involves companies that sell information borenterainment 1 consumers fora fe, lke Netflix or subseription- based newspapers. In recent years, online B2C sales have been trending upward. Many traditional brick-and-mortar retailers have either been closing, or pivoting ‘and edding in digital channels to their strategy as shoppers go online for the things they need Fig 22: Business to Consumer (82) 2. Business to Business (828) ‘As the name implies, business to business (B2B) is when a company ‘markets its productsor services directly to other businesses. B2B ecommerce ‘can be broken down into two methodologies, vertical and horizontal, Vertically oriented businesses sell o customers within a specific ‘industry. With a horizontal approach, you ae selling to customers across a ‘myriad of industries, Each approach has their own pros and cons, sch as industry expertise and! market depth (vertical) versus wide-spread market coverage and diversification (horizontal) Both can be a lucrative pathway, but your strategy will depend on "your products and customers so consider them carefully,‘Fig 24: Business to government (826) 182G (also called B2A) is an eCommerce business model for companies whose only client are governments or public administration. examples Some software companies (outsourcing. development) that provide services dell tothe government + Legal and employment information distribution 4 eo 4 Business to Business to Consumer (82820) 1 B2B2C ecommerce, a company sls products to another company which are then sold to consumers, An example of a B2B2C arangement 1s when a wholesale distributor sells merchandise to retail stores that then scl the merchandise to end ser. The B2B2C models comprised of three pas: the it snes (ie basins f prot origin), an tenes, and the end user ‘There ae sever diferent ways the BIB2C mode can be wwe Commerce applications. For example, a company could partner with nother company to promote its products and services, giving the partner a commission for each sale. 5. Consumer to Consumer (C20) -sroter model most people don't typically think o's the consumer » sot gs esd il li ag also obtain soft data about new tends that may cause unexpected ‘hanges and opportunites in local or even global markets © With an agent at work, the competent user's decision-making ability is enhanced with information rather than paralyzed by too much36 E-Comi input. An agent can be an autonomous, (prefera collaborative, adaptive, computational entity. The (IA) is an agent which can deal with new and trying ne Based Robots), Softbots (Software Robots), Tas Robots), Userbots, Robots, Personal agents, Auton Personal assistants. Information access and navi major applications of software agents in the intran extranet world. Application of Software Agents ‘Advising Alerting Distributing Enlisting Guiding Identifying Matching Evaluating Navigating Organizing Presenting Querying = Retrieving Scheduling Securing Soliciting Teaching Broadcasting Summarizing Browsing Monitoring Negotiating Reminding Searching Storing Translating 3.4 A TYPOLOGY OF AGENTS An agent is defined as a referring to a component of sof hardware which is capable of acting exactingly in order to on behalf of its user. In a typology of agents, we attempt | agents into different agent classes. A typology refers to the stud 1. First Classification The software agents can be classified based on their first classification, ic. by their ability to move around some software agent can be a static agent or mobile agents,logies in The World Wide Web _ INTERNET SERVICE PRO! 3.15 ER (ISP) ___ An ISP, or Internet Service Provider, is a company that offers internet ‘agcess to individuals and businesses for a monthly or yearly fees. In addition tointernet connection, ISPs may also provide related services like web site hosting and development, email hosting, domain name registration etc howpi - _ Different ISPs, and sometimes even the same one, offer different types of internet connections 1. Dialup PP cable 3. DSL broadband Hardware such as dialup modem or a wireless modem and router are usually provided by the company. When you register with an ISP for its services, an account is created and you are provided with the login details username and password. You connect to the internet via your account and this way the company keeps a watch on your online activities ii ___ ISPs can be both regional, confined to a geographic area, or national, servicing the entire country and they are connected with each other through Network Access Points (NAPs). ISPs are also referred to as Internet Access Providers. + Types of internet access: Most ISPs offer several types of internet access which essentially differ in connection speeds the time taken for download and upload. Many also offer different plans or “packages” that vary in the download limit, number of email accounts on offer ete _ Dialup internet access is probably the slowest connection and requires you to connect to the internet via your phone line by dialing a number specified by the ISP. This means, dialup connections are not “always on”, unless you want to raise a huge phone bill, you * would sever the connection when you finish work online. > Cable internet access can be obtained from the local cable TV " operator. However, ask them for a demo first or check with your neighbourers on the quality of serviceuw par broadband is indeed ver > Umternet acest og apocds quicker the speed, inary growth inthe numberof devices connected to the Internet, | canoe erent "> ntemet connection BiVES YOu bit protocol standard, known a Pvt, hegan o be replaced by a 128-bit sees Aw 1 oe ee os Iv 2000, for instance) and can OP omputer can eateh the snition of 1P address fe 2 ee ne Tin ete eS pees I cm co ee eer eo Bee those i which internet is specially th ‘a destination IP address. Fvery IP addoue that ic exposed to the public is unique. tn contrast, IP addresses within a focal network use the sume private addresses; thus, a user's computer in company A can have the sume address asa wer in company B and thoussnds of other companies However, private IP addreses are not reachable fiom the outside world nay ie SP Pa alowed onl «ow GH aaa tyeu pla downlaod movies and music or other have to beep a eeck on th 3.6.1 Howto choose an ISP? 3 <> Monthy or yearly charge: Yes, we ll need to keep a close sr wales bt this doesnot mean you pick Towsy ISP cheap, The oie would lo vary aross diferent lag amount of the data transfer. LLoplcal Vs. Physical: ‘An IP addres logical adress that assigned by software residing ins server or router. In oder oleate a device inthe network, the logical IP tures is converted oa physical address by a funtion within the TCP/IP protocol software. The physical address i aetually built into the hardware you go te best de a ‘Network infastnctre devices such as servers, routers and firewalls are typically assigned permanent “static” IPaddresses The clint machines ean also be assigned stati IPs by a network administrator, but most often are automatically assigned temporary “dynamic I addresses via sofware ‘that uses the “dynamic host configuration protocol” (DHCP). Cable and [DSL modems typically use dymamic IP with a new IP address assigned to | the modem each time itis rebooted, © Type ofimernet access: A dilup connection would be m rough fou plant aces the internet for only few week Want t dowload movies, music ete:? Get a © Regional or national ISP: Are you a frequent traveller If ‘national SP and sce if hey have a plan that lets you ‘connection (va USB modem) from diferent places, Bua services fom the ISP 1 The Dotted Decimal Address: x21 1 IP addresses are writen in “doted decimal” notation, which is four sets of numbers separated by decimal points; for example, 204.171,64.2, Instead ofthe domain name of & Web site the acta address can be entered into the browser, 37 INTERNET PROTOCOL ADDRESS leteet Protocol Adress also called as IP Address uniquely Metis each computer onthe Intemet. A computer ‘may be permanently assigned ot supplied cach time that if the Imernet by an Intemet service provider. In order to“Applicability Statement (AS) ‘An Applicability Statement specifies how, and under what ‘one or more TSs may be applied to support a particular ‘capability An AS identifies the relevant TSs and the specific way venich they ate to be combined, and may also specify particular valves ar anges of TS parameters or subfunctons of TS protocol that must be Implemented ‘An AS also specifies the circumstances in which the use of particular 115 is required, recommended, or elective Meson ofthe IF prowcol OTE a uc UP adresses (TPV6), the se aie 32-bit number colin me of sates se efter died int pase onthe split ofthe 32 Bits a Sk host common of which ie i tr Ca ns nesses are asigned, quite cin er) Th serworks Ne ek acess ovis fr ws hele a Ss Aeron which are reserved fo “> ANAS may describe pacar methods of using # TS ina renticted specie antag oman hin of applica” sch as Item outers, terminal Sever, sus merenneT STANDARD SPECIFICATIONS ieee i ane ee serra tec the ntert Standards Process fll , Eo ee 2 mo cmennes specication, commonly called “reguremens document, for cia Spectction(T5) 1 particular class of Interet systems, such as Ineret Tours 2 ppp Stntement (AS) Internet how © AnAS may not havea higher maturity lve nthe standards rack ‘than any stadardstrack TS on which the AS relies For example, aTS at Draft Standard level may be referenced by [AS atthe Proposed Standard or Draft Standard level, but nt by an AS at the Standard level, Requirement Levels [An AS shall apply ne ofthe following “requirement levels" to each ofthe TSs to which it refer: ‘Required: Implementation ofthe referenced TS, as specified by the |AS, is required 10 achieve minimal conformance. For example, IP ‘and ICMP must be implemented by all Inemet systems using the ‘TCP AP Provcot Suite. 1 Tecnica! Speciation (5) ‘Tectia Speciation is any description of a protocol procedure, convention. of format It may completely describe al or epions unipeciied A TS may be completely selfcont may meaporate mcr ra other specifications by reference. might ot might ot be Internet Standards), seca il nae «see fi spe ad the {sa Gomi fps) Thus, a TS that inberel Paral cones hall contin statement to that effet 7S dows not spciy regu ae oquiements for is use within the pment, which depend on the particular context.e-commerce cr the referenced put experience and/or fesraility in the dors res is of Recommended iy ifthe omission is ithe AS. Ven acs, and protec them on plicaiiy the fictions, oducts, an sould om epoca For xan systems tt tetve: implementation ait of oe TELNET protocol shoud Be imp coal benefit Fm TM “tthe eferenced TS is optional Ihe AS that is the AS creates m0} Hemever a particular vendor mayé mean peice mn ec ait in ve the DECNET MIB could ST a en where the DECNET protocol the standards wack, and are therefore not required, fe dectve Two addition onan of a neces t0=np tallabe for these TS: Limited Use: The TS i considered to be appropriate fr in limited o unique circumstances. For example, the protocol withthe “Experimetal” designation should Tied to those actively involved withthe experiment [Not Recommended: ATS thai considered tobe i This may be its ited aneonaliy specialized nature, or historic era ui abled “Not Resommended Detine WWW. “The World Wide Web is another way to eserbe the Tntemet, which + ga nctwork of computers which are connected and that share information, Art nitow, communication around the word. An example of the World Wide Web i the Internet. 12, What is client service application? CCicnt Application Services enables multiple Windows and Web ‘applications to share wser management functionality, such a Yogin, role land profile fom a common server 13. What isan example ofa client-server? ‘Some faite examples of «client server system on the internet are ‘le wansfor protocol clients (FTPs), Web servers, Web browsers and DNS. ‘They con alo include applications like Web sites. Server devices often feature high powered central processors, huge disk drive space and higher 4. What do you mean by information overtomd? Information overload deseibes the excess of information available to a person aiming t9 complete a ask or make a decision. This impedes the Jccnion-making process, resulting in a poor (or even no) decision being made |S. What is software agent in E-Commerce? Softwate agents are the wefil tools to help individuals to undertake their activities on E-Commerce surroundings. Software agents create “iercnt paths for communication. As the name indicates software agents "cts ax mediators for the processes of choosing products and merchants. 16. What is the role of software agents for BZB e commerce? Software agents provide security to the information. Since E-commerce deal with business onlin, security plays the heart of business.of B2B E-commerce technology aswell ‘ normative speci Internet Standards allow its ferent sources which allows the internet to function, the set of rales governing the format of data sent vi sais lots of com Basiness needs 1 What is Internet standard? refer o all the documented require Internet Standards 1 10 the Internet, a= meibooigy pertaining what is ISP? Define IP addres. Am IP address is « unique address that identifies a device network, IP stands for network REVIEW QUESTIONS PART B (5 MARKS) Explain the Internet clint server applications. Explain the software agent applications Explain about Internet standards What are the internet standard for organizations Explain about IP, ‘PART C (10 MARKS) Discuss about the software agents and its classifications Explain the structure of IP address Discuss about Intemet standard specifications. ceaation sills Which is provided By sponsible for costomerSaisthetion cin computer network engineeting refs “featon of ecinology thats appropriate forthe operation of hardware and softy E-MARKETING 44 intropucTion Definition FF marketing also known as online or intemet advertising which uses the intemetlechnology to promote online message to customer [E-marketing examples are emi or social media advertising, web banners and mobile adverising E-marketing isthe process f marketing a producto service offering ‘using the Internet to reach the target audience on smartphones, devices, social media ct. E-marketing not only includes marketing onthe Internet, ‘but also inches markstng done via e-mail and wireless media It wes 8 ‘ange of technologies help connect busineses to their eustomers Fig. 44 Like many other media channels, ¢-marketing is also a part of inegrted marketing communications (IMC), which helps a brand grow arrows diferent channel, E-marketing has become a pivotal tactic intheing several Tamed by companies asi rowing artery aon" ° re cia we ot eel tent ee ‘eppening hour o customers cough right channels, St arn nah bey and sl So th uitonal oftne channels as wel. smpard to offise marketing. One thing which makes on case the impact in eal time, Marketers * ° E-marketing is very standout isthe bility to ° the performance and tweak the messaging accordingly which ean fine marketing. cefecive when compared to In the times of pandemic, online marketing becomes prominent whe te offnec traditional marketing channels the optim ret on vale ° 42:1 Advantages and Disadvar Advantage of E-Marketing lmemet provides 24 bours and 7 days "24/7" service to is So you can build and make customers relationships world 90s of E-Marketing your customer can shop or order prod % The cost of spreading your message on internet is nothing. social mea sites ike Facebook, Linkedin and Google pls you freely adverts and promote your business You can easy and instanly update your registered custom subscribers through email Visitors or potential customers of your website ean get UB ‘mint information on each visit I you are having a sale, your customers can start shi ‘scounted prices erally as soon as they open thelr emia 1 company has an information sensitive business, ikea law fim, ‘newspaper or online magazine, that company can also deliver its products diretly to customers without having to use a courier of E-Marketing 1f you want a strong online advertising campaign you have 1 spend ‘money The cos of web site design, software, hardware, maintenance of our busines sit, online distribution costs snd vested time, all must ‘be factored into the cos of providing Your service or product online. Almost aver 60% of households now a day shop online. While that ‘numbers are continuously growing, your company’ needs to reach axiom people. ‘Some people prefer the live interaction when they buy’any product. And if your company has a small business with one location, this ay also deter customers fom buying who lives on long distances. ‘Your company should have updated information on your ste. This requires research and skills and thus timing of updates is also criti. |s your company web site secure? There are many incorrect stereotypes about the security of the internet. As a result, many visitors of your business web site will not want 19 use their credit card to make a porchase. So there isa fear in the minds of your ‘Visitors of having their credit card info stolen + 4.3. TRADITIONAL MARKETING Traditional marketing refers to a form of promotion that reaches an audience offline. Companies use marketing channels such as print, ‘broadcast, telemarketing or direct mail to engage their audience and broaden ther reach. Companies that invest in traditional advertising spend great deal of time and creativity rating succesful marketing campaigns -Benerate substantial revenue, Although traditional marketing has been clips by digital marketing nny indi tial ete bowing your band. don, marketing presents opportunities to reach a large audieace in that digital ating exttraditional marketing as part ofan overall adverssingstatety. For the ‘part. this form of advertising depends on the company’s available budget. Mid-sized companies and large corporations are most likely 10 ‘use TV commercials. Advertising on television is usually the most ‘expensive form of marketing, with prices depending onthe time slots and programming content. Bigger companics aio use direct mail more often, as the design, ‘printing, and mailing expenses can add up to substantial amounts. Midesized and large businesses often use all forms of traditional ‘marketing in oe way or another. Entrepreneurs and small. businesses, who may have limited ‘marketing budgets, most often use print marketing in newspapers or newsletters to advertise to local customers. Many also place local radio advertisements, Some use dirset mail, and a few may employ Iumted telemarketing. ‘While network television commercials are usually out ofthe budget range for smaller companies, local cable programming has made ‘clevision advertising more acessible for these types of businesses, ‘outs running a low as Rs 1500 for a 30-second spot, plus =a mast coterie ce ‘rather broad category that so ig wd ine 1 maenements that We se 5 under one of four, Tdi 1 most say fr fo ie the oldest form of traditional mt marketing: 16 the Fe eaves i paper frm hi Sa ‘ancient times, when Egyptians created, toy. aking ¢ Broadcast marketing: 1 includes television Troadcasts have been around singe ey prin, rood and wall posters on papy” ravi fst commercial broadest radio program su on November 2, 1920. Televi was quicker to adopt ‘ception and the first wit ess than en years between 2 Direct mail marketing: It sss printed material Tike stalogs, and fliers sent through ind most nals the Seas Catalog, wi © Telephone marketing, or telemarketing: It is the delivering sales messages over the phone to convings $ Opportunity for powerful erative efforts, 4 buy a product or service. This form of marketing, © Easy to understand wi may using aggressive sales tactics, Px ae 44 IMPLEMENTATION OF TRADITIONS Disadvantages — STRATEGIES: a ° ae ‘Traditional marketing en a “ St cconpes so many etl + Taped come a ’ newly every company sling x produc or service vaca oneALS ine WEB PRESENCE GO! Oe ee ee iwacoletion of We es a AME en ei ale «De ae: sss tat na ods at have Web sk et co Tis thir home Pa ae snl oes alte cies eS Fo hae en hme oe aes of tp Newb vy isola Website i aig Since it sounds lke ge . F enna with» Web server sever inthis contest is 8 computer ah penjine ies fron ormoresitss. On one Rand. ery large Web ie sed ona mumber of servers that may in diferent geographic TM isa good example; its Web site consists of thousands rid-wide locations. But a more spread out over many’ servers in Wor ‘ramp is probably the site you ae looking at, whatis.com. We sever witha number of other sites that ‘commercial space providers nothing todo with Internet glossaries 4.51 Lists of Web Presence Goals and strategies 1. Attcting Visitors tthe Web site + Links to the sit from otber web sites. + Links tothe ste (or specific pages) in Marketing e-mails + Social Neworking 2. Making the sit interesting enough that visitors stay and, + Product reviews + Comparison features. Advice on how to use a producto service, 9, Convincing visors to fellow the site's links to obtain in * Cleary labeled links that include hint ofthe inf btined by following them, 4. Creating an impression consistent with the organization's image ‘Using established branding elements suchas: + Logos ‘+ Characters used in other advertising media. + Slogans + Catciphrases Bualing a trusting relationship with vistors, Ensuring the validity and objectivity of information presented on the -einforeing positive images thatthe visitor might already have about ‘he organization Presenting: + Testimonials + nformation sbout awards, ‘+ Links to extemal reviews or articles about the organization ois products and services. Encouraging visitors retum to the site 4 Featuring curent information about the organization or its products and services tht i egularly updated. Set SMART Website Goals to Reach Business Objectives, The __ SMART model for setting Specific, Measurable Atanable, Relevant, and Marketing: drive trafic, engage prospects generate leads and re- engage existing customers Sales: Help close sales by validating and supporting sales team ‘Customer Support: Improve cusiomer satisfaction through better Webmasters: Simplify and optimize content updates and website ‘management.Tr Integrate with other systems; meet security, performance scalability requirements © Operations: Reduce costs by. streamlining and automat workflows and tasks @ TR: Attract and recruit new employees and support cu employees. © C-Suite : Grow the company’s bottom line and increase profitability 4.6 IMPORTANCE OF WEB PRESENCE 1. Brand Building strong online presence allows rei that you need t attract more customers so to build your brand and gain © Along with making your business readily aoeessble, an oni presence also gives your customers an easy way t0 find out me bout what you have to offer. 2. Positive Reviews “@ Acredible business that values its customers can look forward positive reviews that will sult in customer loyalty and a customer base. “© Customers often use reviews to make their purchasing decision’ it’s important to prioritize quality customer service 3. Effective Marketing © Online presence makes it easier for you to market your business sell your products. A properly designed and informative website ‘well-written content enables customers to make informed pureh choices & The web provides a marketing platform that gives you a effective way to each a wider audience than conventional m techniques, 4. Recessibility ‘© Itis essential for both small and large businesses to maximize benefits of having « strong web presence. Aspects such a8 all day long. This enables your prospective customers to find Dons sn vi aay ee sn yt {you run a rei busines, yourotine store willbe acessibleon 2 24 hour basis and customers can conveniently make their purchases ‘whenever they needto,Thisisa key advantage over one shopping ‘here you have to wat uni busines hour, 4.7 ONLINE MARKETING ‘What is ontne marketing? Digital marketing, also called online marketing is the promotion of ‘brands to connect with pte customers sing the internet and other fons of digital communion. This includes not only ema, sci edi, and web-based advertising, but ao tex and multimedia messages ss marketing anne, ‘The methods and techniques use for online marketing include email, Social media, display advising, search engine optimization, Google ‘AdWords and more. The objective of marketing js to reach potential coslomers through the chamels where they spend ter time reading, searchin, shopping an sciaiing online ‘Widespread adoption ofthe inemet for business and personal we has ‘generated new chanel for averting and marketing engagement, including those mentioned aboveChallenges inherent t0 onli Tia we ao my enti ad fa ae rediums to attract, engage) marketing, which wses primarily digital ms tnd convert virtual visitors fo customers traditional marketing, which as Ci mrtg ies fon ve " like print, billboard, television and historically included mediums radio advertisements “@ ‘Before online marketing, channels emerged, the cost to market froduets or services was often. prohibitively expensive, and traditionally ificul to measure 1 campaign, which are measured through Tink of natn TV : ‘of brand awareness, consumer focus groups to determine levels These methods are traditionally not well-suited for controlled 4.7.1 Benefit of onine marketing A ey benefit of using online channels for marketing © busi ox product isthe ability to measure the impact of any given channel, well as how visitors acquired through different channels iteract with Trebsite or landing page experience. Of the Visitors that conver into pa ‘stomers, further analysis can be dove to determine which channels ‘most effective at aequting valuable customer {Analytics for web or mobile app experiences can help determine following ‘€ Which online marketing channels ate the most cost-effective scquiing customers, based on the conversion rate of visions customers, and the cost of those visitors, “© Which channels are effective at acquiring and driving higher! ‘vale for customers. such as email marketing, which dives purchases to prior customers, Which cohon of customers exhibit song engagement behav high potential for upslls such as software or mobile apps, expect to sell more products to customers with high eMorketing “There are 4 numberof tol robust online marketing |. Email marketing. tat can be sed to build and maintain a 3. Search engine optimization (SEO) 4. Display averting 5. Seach men eee 6 vii een a 1 Aten & weba ptinin $. Comet arta 9. Video rating, 10, Marketing analy 11, acing a Cmte dea a 3, Content management system (CMS), 14. Pay peri (PR) aver, 15. Linkedin ads 16, Afi marketing 7. Examples of online marketing, Online Marketing Campaigns Some examples foie marketing campaigns rca: anon advertises fr search Keywords relied 20 on eg itn sec e bcamer on ‘evant audience to dive trafic a specie webpage. % Whole Foods collet email adesis on tir webie to erate nail Has that canbe ied o adverse new product, sales and vents in their stores . *tice Fas ate favorable O08 of high-a in influences Bite Beauty prt a thcitaget aie semarketing ests ma row thei presence vt rcs Wit imperso ih tone methods of marketing dot he vital nate of iene Marketers must inform tel veong widerstanding of their é rn meng wih + ms na al Terand the overall Ur experienc trating can becom Conte debvery preferences. Tectia can be used 0 und needs and a sing can also be crowded and competitive: lth ros an services in both focal and om can be significant io provide epporuitis 1 P or markets is empowering the com 4.8 EADVERTISING ni advertising is advertising that uses the Fntermet Elect ness promote and sell forms of digital meta 10 be be Online adverising isan emerging form of advertising own with he pid development of Ince and pradually bet te most import averting medium, Online advising can be one-to-many oF many-to Compared with radon advertising, online advertising has of being interac. Taough this medium consumers are ‘espe anymore, they become the partners ofthe advertise ners in lie advertising, they wl ad the averisement click on the avertsement, move on adverse’ website information aboot the produc, nd even place the order online ‘nlie ndvrisings beter fee a logical and convincing emoneting ana ‘Advantages ofthe nteret Advertsing > Target marketing: A major advantage of advertising through Web is ‘the ability to target specific groups of individuals with a minimum of ‘vaste coverage. Though internet advertisements canbe targctd 10 spsife customers asp ther age, sex, come, education hobbies, meres and geogrphie locations. ‘© Message tailoring AS a result of precise tagsing, messages can ‘ne designed to appeal 0 the spesfe needs and wants of the target sliene. The iterative eapabliies ofthe Net makes it possible ‘o cay on one-to-one marketing wih ineresed success in Bot the ‘oiness and the consumer markets © Interactive eapabiives- Because the Inert 6 interactive, it Provides strong pote fr increasing customer involvement and “itsfcton and almost immediate feedback for buyer ad sllers © teformation acces: Pehaps the greatest advantage ofthe inter avorsngis its aval as an formation source 24X 7. Internet ses cin find plethora of infomation about almost any topic of ‘her choie merely by elicking on the ad © ‘Enhancing lent cngagement- Market sim is 10 iateract fTtvly with hircustomers ad 1 prove their experience with, ‘hoiband, This is made posible though interactive internet ads © Sales potential: Item advertising campaigns focus on growing soles tough the brands website and partner networks. Such Campaigns ean also simultaneously pareve conversion and branding objectives, The sles poten of this medium i increasing over the years. © Creatvty-creatvelydesignedintemetadscan enhance acompany’s ‘mage and positively positon the company oF organisation in the consumer'smindg © Exposure: For many smaller companics, with limited budgets, the World Wide Web enables them 1 gain exposure to potential customers tht would have been imposible,tn Tay mare ples nt in order to increase the likeli th aulence ano 10 ‘Stressing brand mes fd campaign with a digital one it thatthe message will resonate with and image & Complements IMC- The set, both complements» en it serves asa vial i ‘complemented by other IMC media. As sucht in the integrative process. {482 Disadvantages of Internet Advertising ‘> Measurement problems- One of the greatest disadvantages of Tonernet i the lack of reliability ofthe research numbers generat A quick review of forcast, audience profiles, and other statis fffered by research providers will demonstrate a great deal vanance-eading to a serious lack of validity and reliability © Websnart- At times, downloading information from the Internet takeva longtime. When there area number of user the time inc and some sites may be inaceessible due to too many visitors Fi ‘any users who expect speed, this is a major disadvantage, Br hand is helping 4 ede this problem. © Cluter- asthe numberof ads proliferates, the likelihood of one's ting noticed deops accordingly. The result i that some ads may} et noticed, and some consumers may become iitated bythe © Potential for deception- The Centre for Media Education refered to the Web a6 “a web of deceit” in regard to attempts tuverisers to target children with subile advertising messages. > Privacy- Like their dioct marketing counterparts, Inert must be earful in no impinging upon the privacy of uses © Limited production quality: Although it is improving, advertising does not offer the capabilities of many cof ‘media from a production standpoint, While the advent of technologie and rich media, itis narrowing the gap, the net bchind some traditional medi in this area So the medium is notable to reach tothe © Irritation- Numerou ay come ab wes eee camak 4.9 TYPES OF INTERNET ADVERTISING ‘Online averising has th major advantage of immediate publishing ‘of information that sno limited by geographic or time constrints. Online shenisers can customise advertisements making. consumer targeting ‘more ecient and precise. For example, AdWords, Yahoo! Search engine an! Google AdSense enable ads to be shown on relevant web pages alongside elated search ess 1 Display a The ads contain graphics, whitespace and ext placed in an interesting ‘manner. These ads ate an extension ofthe traditional banners and they come in various size, Such ads re wed widely by advertisers Because they lp in building brand awareness, when vewed by site vistors. Moreover, ‘refill tagsted display ads can generate high click-through rates, such sa local Facebook ad presented only to people with profiles matching he target market deseripon. Rectangles, pop-ups, banners, butions, and soscraper display ads oecupy various amounts of pixels of dedicated Space fr rent on web pags, 2. Rich media Ads All ads in this category are intratve in natures they offer click ‘ough option tothe consumers. By clicking on th a, the consumer is ‘eansported tothe advertiser's website, where the transaction or any other objective is actualy achieved, All ofthe following formas canbe rich medi: © Banner ad: An advertising graphic image or animation displayed ‘ona website nan application, orn an HTML email. This form of| ‘online advertising is olde than the search engines themselves.contents ofthe WeOPREE «Pott ods A oth ty which «large 38 will Be ale pecsto minimise the disruption of he coment “© Walipper od: An od which changes the background being viewed Trick banner: A banner ad that looks like « dialogue, uttons Popups new window which opens in front of the display an advertisement, o entire webpage. © PopunderSimilar to a pop-up except thatthe window : scat behind the current window so thatthe user does not to take the aa they close one or more active windows fall pies banners, short mesage © Video ad-sinilar to a banner ad, except that instead of a animated image, actual moving video clips are displayed {© Video game ad-ads appearing in online games. 3. Contextual ads: Ad servers, suchas Facebook or Google's double cick inventory of ads from clients and serve them into websites as ser are viewing particular pages Fr example, a user searches for fashion garments on retail site that works with double cick, users might get the ad ‘guments on their email page: Thi is called offering specifi ‘based on profile information. Ths is good for marketers and good for users who receive relevant ads ‘moment they want information,a orn : ay se sum wal of company’ a have he peri ak gu : : beading fe OT gappearance tats projected to ‘on products and services so that businesses or individuals ean react vision, mission, persona snore quickly on user ratings and then matchup thir actions and branding state alin. doc wa ange ed 4 3s ttateges othe needs and expectations oftheir customers. branding medium to position a brand in Be speed online channels 3s # PO ity apromisea company makes toi ‘@ Image campaigns in the traditional media (TV, press, outdoor rat Abra ring 6 © establish st advertising) requ more regular panning in advance. Aso, publi The purpose of banding it ay ‘eatons and media relations ned kine. loyalty. Your bra consume a ita res an identity fr YOU to remember you Dat competion ‘© Building longterm relationships with journalists takes many months. (nthe Inte tis possbl to have an effect immediately and any information sent over the ntwork (a new post on blog, newsletter, ‘new poston social me) gosto the audience ight away. ‘© What's moe, atractive messages spread though the network itself, “hanks to th pssiblies feopying, staring and forwarding content. 4, Constantly expanding audience “© Weare secng a gradual decrease in he number of tational media consumers, fo example TY a the pres. Meanwhile, the number of Foteret users is constant inresing 5. Build trust ‘© Intitonal communication cases the range of recommendation of satisfied or dsstsed customers was ite, © Coreatly, the umber of reached consumers expressing their cpinions i much bigger anda result of this, any recommendation ce ncgtive message can havea hugs impact onthe perception ofthe ‘and, and of erating its image 4.10.2 Importance of Onine Branding Forany bsinss, onlin branding central not only tthe success of business but its conn and relevance in oday’s business world ‘you apart fom 4.10.1 Features of -Branding randing, like traditional eoncre ae t and manage ib using the tools and has the same objectives as traditional ‘branding, aims to create a image, butt eat fered by the internet. I sot hs ons ae diferent in many aspects. Ebranding, unlike branding is characterized by 1. Constant presence © Traditional forms of mark dvertsements, inthe pressor on leaflets constitute an ting communications. such © Communication on the Intemet is constant; all the constantly on websites or social media profiles ‘© They can be reached by every internet user from a ‘world. The cost ofan online presence, as opposed tothe forms of banding is small, especially considering its 2. Interactivity Communication conducted onthe intemet allows one * communication (radio advertising, television speech) © Recognition: In order for people o lear about your business and with the customer ‘what you have to of, online branding is essential. Without this, ‘ ‘your busines will remain unknown and customer wil be hard to Soci media users can fllow the channels of indi ‘they are kept informed about the activities of their Your web development service provider can help you in setting security for your sit Make sure you initiate and end your transactions with certification ‘Selecta safe and secure e-commerce platform which uses oi oriented programming language, Keep on monitoring your website regularly and ask your web h ‘company to check thei serves for any virus or malware. Purge old rconds from the database and keep minimum of data 2 Client Disputes and Refunds (One ofthe biggest problems wit online shopping inthe e-comm industry is that clients can claim refunds on disputed orders. Most of time dispute arises when the product never arrives and the amount has charged from customers account Sometimes the customer has been charged twice and some Product description doesnot match the real product, i «-secuily: Information System i “Moreover many refind fads can ao oes These ae some othe potential risks associated with an eo {what's the Solution? ee ‘You cam avoid disputed orders and claims for chargeback by: © Avoiding shipment of wrong ‘6 Nov charging the customer until and unless you ae sure that all tems hase shipped and delivered. ‘© Using tracking number foreach order thai placed and. ‘© Rarcode seanners help in minimising payment related errors 5, Violation of Intellectual Property olson of ints popey soon ofthe common seu sats of e-commerce bina Froton ef IPs very importa che ecommerce indisty and inlids weit logos, einen, tpnes, pdt and othe Violation of copyright rues and inelleal a huge loss. propery can cts you ‘Whats the Soltlon? Fes techniques can be weg li Fa Do not copy ofa a Enforce song copyright mle Trin your employees eaing IP Sey ‘ever disclose sensitive information drag ve cats Nee they sre not secur ata ‘Tmploy strict written protocols and enforce security policies and practices een 4 ow SE0 Ranking ‘Out of many e-commerce threats, SEO and digital marketing of your >usiness can also become a seriousisk Googe keeps on changing elitism dict as ur ranking, Low SEO ranking means low traffic to-your website which lnately ests in es nombres =ecemenimetntrtmteey gag Facus on exceeding the, > in a ie et onan ar torent an marketing the there are cha a “ {@ Personalisation isthe key to 7. Weak Authentication Me a "é Find the right keywords to promote your products “© Use the right tools to sear for Make an effective social media strategy = ee per and stolen credit card_ information prone to more eyt " authentication ll common Fisk of e-commerce busines. onstage Da ae «hnces that this information Cie stolen, You ned. ‘maibods for your online security that can resin amacke nn What's the Solution? —_ a stolen creditcard to make an onli or any ca we = a 1d tight enough to, transaction Your online security shouldbe strong. an 4 doubifl transaction ‘Whats the Solution? ‘The best solution to this problem is that you should use two-factor or ‘You can use the following techniques to prevent fraudulent pure ‘multifactor authentication methods, Its the perfect way of improving you online security. adds an extra layer of security and ean ask for a verification cade other than TD and passwords, 5.5 LEGAL AND ETHICAL ISSUES. ‘The foundations ofall secure systems are the moral principles and Practices nd the professional standard ofall employees ofthe organization, ©. wile people are part of the solution, they areal most ofthe problem, ‘The following issues are examples of security problems that an ‘organization may have to deal with: 1. Ethics and Responsible Decision-Making © The foundation of all seeury systems is formed by the moral Principles and practices of those people involved and the standards ‘tthe profession. That is wile people are part ofthe solution, hey sre also most the problem, 2 «You should be PCT compliant because PCT compliance Protects dbus of crt cardholder and maintains the firewall for protection of data, Use Secure Sockets Layer authentic ‘@ SSL cenificates are important for transactions “They can authenticate your business identity and encrypts the which saves the data from being stolen 6. Poor Customer Service oor customer service or experience can be a serious tur off customers. Eventually, it can hurt your business Inincludes many loopholes ranging from your rade and ccastomer service agents to not upto date inventory management deliveries can also make you lose business. wi the Solution? © Always be polite when you are talking to your customersE-Commerce Tec "@ Security problems with which an organization may have to include: responsible decision-making confidentiality, privacy. it fraud & misuse, ability copyright, trade secrets, and sabotage tis easy to sensationalize these topics with real horror stores it more dificult to deal withthe underlying ethical issues involved 2. Confidentiality & Privacy © Computers can be used symbolically t defraud victims. Atfomeys, goverament agenci ter generated data quite { 1 intimidate, deceive of and businesses increasingly use mounds of compu legally confound their audiences. © Criminals also find useful phony invoices bills, and checks generate by the computer. The computer lends an ideal cloak for caying otf criminal acts by imparting a clean quality to the crime. i The computer has made the invasion of our privacy a great deal casi and potentially more dangerous than before the advent ofthe compu ‘A wide range of datas collected and stored in computerized files related to individuals, These files hold banking information, credit information) organizational fundraising, opinion polls, shop at home services, driver ticense data, ares records, and medical records. 4 “The potential threats o privacy include the improper commercial Wi ‘of computerized data, breaches of confidentiality by releasing confident data to third parties, and the release of records to governmental for investigative purposes 3. Piracy ‘ Thatis,usersmay eglly create backup copy of software ifitis thld in an archive. Many software companies provide a fee copy to users that preclude the need for 1 users purchase ‘mended to defeat copy protection systems and subsequently copies oftheir software. © Ifthe software purchased is actually eased, you may if ‘even be able to make backup copes of the software. The di ‘etwoen leasing and buying is contained within the documentation The software industry is prepared a n ‘The courts are dealing wit i aaa oyun of te TR et vftware Protection it whe erween i ie nee snacatepine edad po pace y tonal 4. Fraud & Misuse The computer can crete unique envromentin which unauthorized scvites can occur Crime in history have many radios names including the, fad, embezzement, extortion, ee. Computerreated fad ines the intodustion of faudulent records nto a computer syste the of money by electronic means, of ani i Be serves nd if of ale ability Under the UCC, an express waranty san airmation or promise of oct quality to the bayer and Becomes part of the Basis of the bares Promises and affirmations made by the software developer to the user about the nature and quality ofthe program can also be classified as sv expess warty, : % Programmers or retailers possess the right to define express vwarantes, % Thus, they have to be realistic predictions about the cap or hardware 5 sae any claims and ature oftheir software