Chapter 2.

Internet Marketing Environment

2.1. Basic Forms of Virtual Business

2.1.1 Business-to-Consumer (B2C) electronic commerce:

O There are various models for performing E-commerce activity:

O Under this method, the seller puts information such as the

price of product, picture of product, design and other
information online and buyer purchases the product using their
online payment methods such as credit cards.

O Sometimes intermediaries are involved in such business

transactions to facilitate business activities. The activities are
done directly from business to customers.
2.1.1 Business-to-Consumer (B2C) electronic commerce:

O B2C (Business to Consumer) is that we often see

vendors sell goods directly to the user, for example you
go to McDonald’s to eat Burger is B2C, because you just
a customer.

O Example: Safaricom
2.1.1 Business-to-Consumer (B2C) electronic commerce:

O B2C e-commerce refers to the online transactions between

businesses and individual consumers.

O This form of e-commerce involves businesses selling products

or services directly to end consumers through online platforms.

O B2C transactions typically take place on websites or mobile

applications, where consumers can browse, select, and purchase
products or services.
2.1.1 Business-to-Consumer (B2C) electronic
commerce:
O Examples of B2C e-commerce include online retail
stores, travel and ticketing websites, and online food
delivery services.

O B2C e-commerce often focuses on providing a user-

friendly interface, personalized experiences, and
efficient delivery to meet consumer expectations.
 2.1.2 Business-to-Business (B2B) electronic
commerce:
O In this model, commercial activities take place between
two business parties. One business party puts its product
information online and other business party buys it online.

O These transactions could be open to all interested parties or

limited to a specific party. B2B (Business to Business) is a
business to establish business relationships with businesses
 2.1.2 Business-to-Business (B2B) electronic
commerce:
O B2B e-commerce involves online transactions between
businesses, where one business sells products or services to
another business.

O This form of e-commerce caters to the needs of businesses

in their procurement, supply chain management, and
collaboration with other companies.

O B2B transactions can include the purchase of raw materials,

components, or finished goods for further production or
resale.
2.1.2 Business-to-Business (B2B) electronic
commerce:
O Online B2B platforms facilitate transactions by
connecting businesses and providing features such as
bulk ordering, negotiation tools, and supply chain
integration.

O B2B e-commerce aims to streamline business processes,

reduce costs, and improve efficiency in the procurement
and distribution of goods and services.
 2.3. Business Models in Emerging E-
commerce Areas
O 2.3.1. Consumer-to-Consumer (C2C) Business Models:

O C2C e-commerce involves online transactions between

individual consumers, where one consumer sells products or
services directly to another consumer.

O C2C platforms provide a virtual marketplace where individuals

can list, buy, and sell products or services to one another.
 2.3. Business Models in Emerging E-
commerce Areas
O Examples of C2C platforms include online classifieds,
auction websites, and peer-to-peer sharing platforms.

O Trust and reputation systems are crucial in C2C e-

commerce to establish credibility and ensure smooth
transactions between individuals.

O C2C (Consumer to Consumer), is similar to the retail

market, the direct object is the end-user shopping from
another consumer who is selling their wares online.
Example; eBay, Craiglist, etc.
 2.3. Business Models in Emerging E-
commerce Areas
O In this method, the business transaction takes place between
consumers through some third party.

O A common example is an online auction, in which a consumer

posts an item for sale and another consumer bid to purchase it.
The business activities are done between consumer to consumer.

O In addition to these methods of E-commerce, there are other

methods too. They are business- to-government and Government
to the government.
 2.3. Business Models in Emerging E-
commerce Areas
O 2.3.2. Peer-to-Peer (P2P) Business Models:

O P2P business models enable individuals to share or

exchange resources, services, or information directly
with one another.

O P2P platforms facilitate transactions between peers,

eliminating the need for intermediaries or traditional
service providers.
 2.3. Business Models in Emerging E-
commerce Areas
O Examples of P2P business models include ride-sharing
services, accommodation-sharing platforms, and crowd
funding platforms.
O P2P platforms typically earn revenue through transaction
fees, commissions, or subscription fees from participants.
O Trust and reputation systems play a vital role in P2P
business models to foster trust and ensure quality
interactions between peers.
2.3.3. M-Commerce Business Models:
O M-commerce, or mobile commerce, refers to e-commerce
transactions conducted through mobile devices such as
smartphones or tablets.
O M-commerce business models leverage mobile technology
and connectivity to enable customers to make purchases and
access services on the go.
O Examples of m-commerce business models include mobile
shopping apps, mobile payment platforms, and location-
based services.
2.3.3. M-Commerce Business Models:

O M-commerce revenue streams can include mobile

advertising, in-app purchases, mobile wallet fees, or
subscription models.

O Personalization, ease of use, and seamless mobile

experiences are critical factors for success in m-
commerce business models.
 2.4. Internet Demographics and Villages:

O Internet demographics refer to the characteristics and

profiles of individuals who use the internet.

O Internet usage demographics include factors such as age,

gender, income level, education, and geographic
location.
 2.4. Internet Demographics and Villages:

O Understanding internet demographics is crucial for

businesses to tailor their marketing strategies and target
specific customer segments.

O Internet demographics can also help identify

opportunities for niche markets and determine the
accessibility of internet services in different regions.
 2.5. The Global Village:

O The term "global village" refers to the concept of a

world interconnected through communication
technologies, particularly the internet.

O The internet has facilitated global connectivity, breaking

down geographical barriers and enabling instant
communication and information sharing.
 2.5. The Global Village:

O The global village has transformed business dynamics,

allowing companies to reach customers worldwide and
collaborate with partners across borders.

O The internet's global nature presents opportunities for

businesses to expand internationally and access diverse markets
with different cultural nuances and preferences.
 2.5. The Global Village:

O However, operating in the global village also requires

considering language barriers, cultural sensitivities, and local
regulations to ensure successful international business
operations.
 O END OF CH-2!

O NEXT CH-3 LOADING….