E-Commerce & E-Governance
Unit-II
Covered Syllabus:
• marketing strategies,
• advertising on the web,
• customer service and support,
• internet banking,
• introduction to m-commerce,
• case study: e-commerce in passenger air transport,
• element of e-commerce,
• issues of e-commerce.
Marketing Strategies:
Marketing strategies are comprehensive plans or approaches that
businesses develop to achieve specific marketing objectives. These
strategies outline the tactics, channels, and resources that will be
utilized to reach target audiences, promote products or services, and
ultimately drive sales and revenue.
Here are some common marketing strategies:
• Target Market Segmentation:
Identify and segment the target market based on demographics,
psychographics, behavior, or other relevant criteria. Tailor
marketing efforts to specific segments to better meet their needs
and preferences.
• Product Differentiation:
Differentiate the product or service from competitors by
highlighting unique features, benefits, or value propositions.
Emphasize what sets the offering apart to attract customers and
stand out in the market.
• Branding and Positioning:
Develop a strong brand identity and positioning that resonates
with the target audience. Consistently communicate the brand's
values, personality, and benefits to build brand awareness,
credibility, and loyalty.
• Content Marketing:
Create and distribute valuable, relevant, and engaging content to
attract and retain customers. Content marketing can include blog
posts, articles, videos, infographics, podcasts, and social media
posts that educate, entertain, or inspire the audience.
• Digital Marketing:
Utilize various digital channels and platforms to reach target
audiences, including search engine optimization (SEO), search
engine marketing (SEM), social media marketing (SMM), email
marketing, influencer marketing, and affiliate marketing.
• Social Media Engagement:
Engage with target audiences on social media platforms by sharing
relevant content, interacting with followers, responding to
comments and messages, and building relationships. Leverage
social media to increase brand awareness, drive website traffic,
and generate leads.
• Customer Relationship Management (CRM):
Implement strategies and technologies to manage and nurture
customer relationships throughout the customer journey. This
may include personalized communication, loyalty programs,
customer feedback mechanisms, and customer support.
• Public Relations (PR):
Develop relationships with media outlets, influencers, and other
stakeholders to generate positive publicity and enhance brand
reputation. Utilize PR tactics such as press releases, media
interviews, events, and sponsorships to build credibility and trust.
• Networking and Partnerships:
Collaborate with other businesses, organizations, or individuals to
reach new audiences, expand reach, and create mutually
beneficial partnerships. This may include co-marketing campaigns,
cross-promotions, and affiliate partnerships.
• Data Analytics and Optimization:
Use data analytics tools and metrics to measure the performance
of marketing efforts and make data-driven decisions. Continuously
analyze and optimize marketing strategies to improve results and
maximize ROI.
• Customer Experience Enhancement:
Focus on delivering exceptional customer experiences at every
touchpoint, from initial contact to post-purchase support. Provide
personalized, seamless, and memorable experiences to build
customer loyalty and advocacy.
• Integrated Marketing Communications (IMC):
Ensure consistency and alignment across all marketing channels
and messages to create a unified brand experience. Coordinate
marketing efforts across traditional and digital channels to
reinforce brand messaging and maximize impact.
Effective marketing strategies are adaptable and evolve over time
based on changing market conditions, consumer behavior, and business
objectives. By implementing well-defined marketing strategies,
businesses can attract, engage, and retain customers while achieving
their overall marketing goals.
Advertising on the web:
Advertising on the web, also known as online advertising or digital
advertising, involves promoting products, services, or brands through
various online channels and platforms. It encompasses a wide range of
advertising formats, targeting options, and measurement metrics.
Here's an overview of advertising on the web:
• Display Advertising:
Display ads are graphical ads that appear on websites, apps, or
social media platforms in the form of banners, images, or videos.
These ads can be static or animated and are typically placed
strategically to attract the attention of users browsing the web.
• Search Engine Advertising:
▪ Search engine advertising involves placing text-based ads on
search engine results pages (SERPs) such as Google, Bing, or
Yahoo. These ads are displayed above or alongside organic
search results and are triggered by specific keywords or search
queries.
▪ The most common type of search engine advertising is pay-per-
click (PPC) advertising, where advertisers bid on keywords and
pay only when their ad is clicked.
• Social Media Advertising:
▪ Social media advertising involves promoting products or services
on social media platforms such as Facebook, Instagram, Twitter,
LinkedIn, Pinterest, and Snapchat.
▪ Social media ads can take various forms, including sponsored
posts, display ads, carousel ads, video ads, and stories ads. These
ads can be highly targeted based on demographics, interests,
behaviors, and engagement with the platform.
• Video Advertising:
▪ Video advertising involves displaying video ads before, during, or
after online video content, such as on YouTube, Vimeo, or other
video-sharing platforms.
▪ Video ads can also be distributed through social media
platforms, websites, or mobile apps. They can range from short,
skippable ads to longer, non-skippable ads and can be highly
engaging for users.
• Native Advertising:
▪ Native advertising blends seamlessly into the surrounding
content of a webpage, app, or social media feed, making it less
intrusive and more engaging for users.
▪ Native ads match the look and feel of the platform where they
are displayed and can appear as sponsored articles, promoted
listings, or recommended content.
• Remarketing/Retargeting:
▪ Remarketing or retargeting involves displaying targeted ads to
users who have previously visited a website or interacted with a
brand but did not complete a desired action, such as making a
purchase.
▪ These ads are aimed at re-engaging potential customers and
encouraging them to return to the website and complete the
conversion process.
• Programmatic Advertising:
▪ Programmatic advertising uses automated technology and
algorithms to buy and sell ad inventory in real-time through ad
exchanges and networks.
▪ This approach allows advertisers to target specific audiences,
optimize ad placements, and maximize the efficiency of their
advertising budgets.
• Affiliate Marketing:
▪ Affiliate marketing involves partnering with third-party
publishers or affiliates who promote products or services on
their websites, blogs, or social media channels in exchange for a
commission on sales or leads generated.
▪ Affiliate marketing can be an effective way to reach new
audiences and drive conversions through trusted sources.
Advertising on the web offers numerous benefits, including precise
targeting, measurable results, scalability, cost-effectiveness, and the
ability to reach a global audience.
By leveraging various online advertising channels and strategies,
businesses can increase brand visibility, drive website traffic, generate
leads, and ultimately, achieve their marketing objectives.
Customer Service & Support:
Customer service and support play a crucial role in the success of e-
commerce businesses, as they directly impact customer satisfaction,
retention, and loyalty.
Here's how customer service and support are typically managed in e-
commerce:
1. Pre-Purchase Assistance:
• Live Chat: Many e-commerce websites offer live chat support,
allowing customers to chat with a customer service
representative in real-time to get assistance with product
inquiries, pricing, availability, or any other pre-purchase
questions.
• FAQs and Knowledge Base: E-commerce websites often provide
a comprehensive FAQ section or knowledge base that addresses
common questions and concerns related to products, shipping,
returns, and policies. This self-service option enables customers
to find answers to their questions quickly and conveniently.
2. Order Fulfillment and Shipping Support:
• Order Tracking: E-commerce businesses provide order tracking
functionalities that allow customers to track the status and
location of their orders in real-time. Customers can access this
information through their account dashboard or by entering their
order details on the website.
• Shipping Assistance: Customer service teams assist customers
with shipping-related inquiries, such as delivery estimates,
shipping options, tracking numbers, and address updates. They
may also handle issues such as delayed shipments, lost packages,
or damaged goods.
3. Post-Purchase Support:
• Returns and Exchanges: E-commerce businesses facilitate
returns and exchanges by providing clear instructions, return
labels, and refund or exchange policies. Customer service
representatives assist customers with initiating returns,
processing refunds, or exchanging products for alternative sizes
or colors.
• Product Support: Customer service teams offer assistance with
product-related issues, such as troubleshooting technical
problems, providing product manuals or guides, or offering
warranty information. They may also handle product recalls or
quality concerns raised by customers.
4. Multi-Channel Support:
• E-commerce businesses offer customer support across multiple
channels, including email, phone, live chat, social media, and
messaging apps.
• Customers can choose the channel that is most convenient for
them to reach out for assistance, and customer service teams
strive to provide timely and helpful responses across all
channels.
5. Personalization and Relationship Building:
• E-commerce businesses personalize the customer service
experience by addressing customers by name, referencing past
interactions or purchases, and offering tailored
recommendations or solutions based on individual preferences
and history.
• Building strong relationships with customers is a priority for e-
commerce businesses, as it fosters trust, loyalty, and repeat
purchases.
• Customer service representatives strive to provide friendly,
empathetic, and personalized support to create positive
experiences for customers.
6. Feedback and Improvement:
• E-commerce businesses actively seek feedback from customers
to identify areas for improvement and enhance the overall
customer experience.
• They may collect feedback through surveys, reviews, ratings, or
direct communication with customer service representatives.
• Customer feedback is used to identify pain points, address
issues, implement changes, and continuously improve products,
services, and processes to better meet customer needs and
expectations.
Internet Banking or E-Banking:
Internet banking, also known as online banking or electronic banking,
refers to the provision of banking services and transactions conducted
over the internet through a secure website or mobile application.
Internet banking allows customers to perform a wide range of
banking activities conveniently and securely without visiting a physical
bank branch.
Here's an overview of internet banking:
➢ Account Management:
▪ Customers can view account balances, transaction history, and
statements for various accounts, including checking, savings,
credit cards, loans, and investments.
▪ They can also manage account details, update personal
information, set up account alerts, and order checks or cards
online.
➢ Fund Transfers:
▪ Internet banking enables customers to transfer funds between
their own accounts or to other accounts within the same bank.
▪ They can also initiate external transfers to accounts at other
financial institutions, including one-time transfers or recurring
transfers for bill payments or savings goals.
➢ Bill Payments:
▪ Customers can pay bills electronically through internet banking
by setting up billers, scheduling payments, and making one-
time or recurring payments for utilities, loans, credit cards,
insurance, and other bills.
▪ Many internet banking platforms offer features such as
payment reminders, e-bills, and payment history tracking.
➢ Online Deposits:
▪ Some internet banking platforms allow customers to deposit
checks remotely using their mobile devices by taking photos of
the front and back of the check.
▪ Customers may also have the option to make online transfers
from external accounts or set up direct deposits for payroll or
government benefits.
➢ Mobile Banking:
▪ Internet banking extends to mobile devices through dedicated
mobile banking apps or mobile-responsive websites.
▪ Mobile banking apps offer similar features to online banking,
including account management, fund transfers, bill payments,
mobile deposits, and account alerts.
➢ Security Features:
▪ These may include encryption, multi-factor authentication,
secure login procedures, session timeouts, and monitoring for
suspicious activity.
➢ Customer Support:
▪ Internet banking customers have access to customer support
services through various channels, including phone support,
live chat, email, and frequently asked questions (FAQs).
▪ Customer support representatives assist with account
inquiries, technical issues, transaction disputes, and other
banking-related concerns.
➢ Additional Services:
▪ Internet banking platforms may offer additional services such
as account aggregation, budgeting tools, financial calculators,
investment management, and credit score monitoring.
▪ Some banks also provide educational resources, articles, and
guides to help customers make informed financial decisions.
Here are the types of internet banking briefly explained:
▪ Basic Online Banking: Customers can view account balances,
transaction history, and transfer funds between accounts.
▪ Mobile Banking: Banking services accessed through mobile
devices, offering features like mobile deposits and bill payments.
▪ Advanced Online Banking: Includes additional features such as bill
payment, fund transfers to external accounts, and account
management tools.
▪ Virtual Banks: Operate entirely online without physical branches,
offering a range of banking services through internet and mobile
platforms.
▪ Cryptocurrency Banking: Enables users to manage digital assets
and perform transactions using cryptocurrencies like Bitcoin and
Ethereum.
▪ Neobanks: Digital-only banks that offer banking services through
internet and mobile platforms, often with innovative features and
competitive rates.
▪ Open Banking: Allows third-party developers to create
applications and services that integrate with a bank's systems and
data through APIs, offering enhanced functionality and
customization options for users.
Introduction of M-Commerce:
Mobile commerce, commonly referred to as M-commerce, refers to the
buying and selling of goods and services through mobile devices such as
smartphones and tablets.
It involves conducting online transactions, browsing product catalogs,
and completing purchases using mobile apps or mobile-optimized
websites.
M-commerce has become increasingly prevalent due to the widespread
adoption of smartphones and the convenience they offer for shopping
on the go.
Here's an overview of M-commerce:
• Mobile Shopping Apps: Many retailers and e-commerce
businesses offer dedicated mobile apps that allow customers to
browse products, make purchases, and manage accounts directly
from their smartphones or tablets.
• Mobile-Optimized Websites: In addition to mobile apps,
businesses also optimize their websites for mobile devices to
ensure a responsive and user-friendly experience for mobile users.
Mobile-optimized websites feature simplified navigation, faster
loading times, and adaptive layouts that adjust to different screen
sizes.
• Mobile Payment Options: M-commerce transactions are
facilitated through various mobile payment methods, including
mobile wallets, digital payment platforms, and in-app payment
systems. Mobile wallets such as Apple Pay, Google Pay, and
Samsung Pay allow users to securely store payment information
and make purchases with a tap or touch of their device.
• Location-Based Services: M-commerce leverages location-based
services such as GPS and geofencing to provide personalized
shopping experiences based on the user's location. Businesses can
send targeted promotions, discounts, or notifications to users
when they are near a physical store or specific location.
• Mobile Marketing: M-commerce is closely integrated with mobile
marketing strategies, including mobile advertising, push
notifications, SMS marketing, and mobile-optimized email
campaigns. These marketing tactics are designed to engage
mobile users, drive traffic to mobile channels, and encourage
conversions.
• Mobile Commerce Trends: Emerging trends in M-commerce
include augmented reality (AR) shopping experiences, voice
commerce using virtual assistants like Siri and Alexa, social
commerce on platforms like Instagram and Facebook, and the
integration of artificial intelligence (AI) and machine learning for
personalized recommendations and chatbot assistance.
• Challenges and Opportunities: While M-commerce offers
significant opportunities for businesses to reach and engage
mobile consumers, it also presents challenges such as security
concerns, device compatibility issues, and the need for seamless
integration with existing systems. Businesses must adapt to the
evolving mobile landscape and prioritize mobile optimization to
capitalize on the growing trend of M-commerce.
Overall, M-commerce has transformed the way consumers shop and
interact with businesses, providing convenience, flexibility, and
accessibility for mobile users worldwide.
As mobile technology continues to advance, M-commerce is expected
to play an increasingly prominent role in the future of retail and e-
commerce.
Case Study: E-Commerce In Passenger Air Transport:
A case study on "E-commerce in Passenger Air Transport" would
involve an in-depth analysis of how electronic commerce (e-commerce)
has impacted the airline industry, particularly in the context of
passenger travel.
Here's how the case study might be structured:
➢ Introduction:
• Provide an overview of the airline industry and the emergence
of e-commerce.
• Introduce the significance of e-commerce in transforming
passenger air transport.
➢ Background of the Industry:
• Discuss the traditional methods of booking flights before the
advent of e-commerce.
• Highlight the challenges and limitations associated with
traditional booking systems.
➢ Rise of E-commerce in Air Travel:
• Describe the evolution of e-commerce in the airline industry.
• Identify key milestones and innovations that facilitated the
adoption of e-commerce.
➢ Key Players and Platforms:
• Analyze the role of various stakeholders in e-commerce,
including airlines, online travel agencies (OTAs), and booking
platforms.
• Discuss popular e-commerce platforms used for booking flights
and their features.
➢ Trends and Technologies:
• Explore current trends in e-commerce within the passenger air
transport sector.
• Highlight technological advancements shaping the e-commerce
experience for travelers.
➢ Impact on Passenger Experience:
• Evaluate how e-commerce has enhanced the booking process
for passengers.
• Discuss the convenience, accessibility, and customization offered
by e-commerce platforms.
➢ Business Implications:
• Assess the impact of e-commerce on airline revenue streams
and business models.
• Discuss the emergence of ancillary services and the role of e-
commerce in driving ancillary revenue.
➢ Challenges and Considerations:
• Identify challenges and risks associated with e-commerce in
passenger air transport.
• Discuss issues such as cybersecurity, data privacy, regulatory
compliance, and competition.
➢ Case Studies and Examples:
• Provide real-world examples of airlines or e-commerce platforms
that have successfully implemented innovative strategies in
passenger air travel.
• Analyze case studies highlighting the benefits and challenges of
e-commerce adoption in the airline industry.
➢ Future Outlook:
• Predict future trends and developments in e-commerce and
passenger air transport.
• Discuss potential areas for further innovation and growth in the
e-commerce ecosystem.
➢ Conclusion:
• Summarize the key findings of the case study.
• Emphasize the importance of e-commerce in shaping the future
of passenger air transport.
• Provide recommendations for airlines and stakeholders to
navigate the e-commerce landscape effectively.
Overall, the case study would provide a comprehensive analysis of how
e-commerce has revolutionized the passenger air transport industry,
covering its evolution, impact, challenges, and future prospects.
Element of e-commerce:
E-commerce, or electronic commerce, encompasses various elements
that collectively contribute to the online buying and selling of goods
and services.
Below are the key elements of e-commerce:
• Online Storefronts:
Online storefronts are digital platforms where businesses display
their products or services for customers to browse and purchase.
Websites like Amazon or eBay, where multiple sellers offer their
products.
• Digital Products and Services:
E-commerce encompasses the sale of both physical goods and
digital products or services. Digital products include software, e-
books, digital art, online courses, and subscription-based services
like streaming platforms or software-as-a-service (SaaS) offerings.
• Payment Gateways:
Payment gateways are online services that facilitate the secure
processing of financial transactions between buyers and sellers.
They encrypt sensitive payment information and authorize
transactions, enabling customers to pay for their purchases using
credit/debit cards, digital wallets, bank transfers, or other
payment methods.
• Shopping Carts:
Shopping carts are virtual baskets that allow customers to select
and store items they intend to purchase while continuing to
browse an online store. Users can view their selected items, adjust
quantities, remove items, and proceed to checkout when ready to
complete their purchase.
• Product Listings:
Product listings provide detailed information about the items
available for purchase on an e-commerce platform. This includes
product descriptions, images, prices, sizes, colors, specifications,
and customer reviews. Clear and accurate product listings help
customers make informed buying decisions.
• Inventory Management:
Inventory management systems track the quantity, location, and
status of products available for sale. They help businesses manage
stock levels, monitor product movements, forecast demand, and
automate reordering processes to ensure products are available
when customers place orders.
• Order Management:
Order management systems handle the entire order fulfillment
process, from order placement to delivery. They organize
incoming orders, allocate inventory, generate packing slips,
coordinate shipping, provide order tracking information, and
manage returns or exchanges.
• Customer Accounts:
Customer accounts allow users to create personal profiles on e-
commerce websites. Account holders can save their shipping and
billing information, track order history, manage wishlists, receive
personalized recommendations, and access exclusive deals or
promotions.
• Security Features:
E-commerce platforms implement various security measures to
protect customer data and prevent unauthorized access or
fraudulent activities.
This includes SSL encryption to secure data transmission, PCI DSS
compliance to safeguard payment information, and measures like
CAPTCHA to prevent automated attacks.
• Customer Support:
Customer support services assist customers with inquiries, issues,
or assistance related to their shopping experience. Support
channels may include live chat, email support, phone assistance,
self-service FAQs, and community forums, aiming to provide
timely and helpful resolutions to customer queries.
• Analytics and Reporting:
E-commerce analytics tools track website performance, customer
behavior, and sales metrics to provide insights into the
effectiveness of marketing efforts, product popularity, conversion
rates, and customer engagement. Analyzing this data helps
businesses make informed decisions and optimize their e-
commerce strategies.
• Marketing and Promotions:
E-commerce marketing strategies aim to attract customers, drive
sales, and build brand awareness. This includes tactics such as
search engine optimization (SEO), pay-per-click (PPC) advertising,
email marketing, social media campaigns, influencer partnerships,
discounts, coupons, and loyalty programs.
Issues of E-Commerce:
Here are the issues of e-commerce:
• Security:
Risks of data breaches, identity theft, and cyberattacks.
• Trust:
Establishing credibility and maintaining customer trust.
• Payment Fraud:
Vulnerability to stolen credit card information and fraudulent
transactions.
• Competition:
High competition among businesses for market share and
customer attention.
• Logistics and Fulfillment:
Challenges in efficient order processing, shipping, and delivery.
• Customer Experience:
Ensuring a seamless and satisfactory shopping journey for
customers.
• Regulatory Compliance:
Adhering to regulations governing online transactions, data
protection, and taxation.
• Technology and Infrastructure:
Dependence on robust technology infrastructure for website
functionality and security.
• Internationalization:
Dealing with language barriers, currency conversions, and
compliance with foreign regulations.
• Customer attracting and retaining:
Challenges in attracting and retaining customers amidst
competition and changing market dynamics.