Quiz 4: Social Media: Living in the Connected World

Business

Electronic business: Electronic businesses are wide range of commercial activities that take place through internet applications (e-mail and virtual shopping carts). It involves carrying out online transactions with customers. Five categories of electronic business are as follows: 1. Electronic-tailing or virtual-stores on websites 2. Business-to-business transaction 3. Interchange of data electronically 4. E-mail, blogs, instant messaging, and other web-enabled communication tools 5. Gathering of demographic and other product information via internet

Case synopsis: P is operating in about 80 countries and it earns $500 million from e-commerce. The management is striving to increase the amount eight fold to $4 billion. The online category grows 25% each year. The company has increased its online sales, digital media works, search, behavioral target ads, and video that identifies the internet users. P's electronic store has the potential to increase the revenue through buying behavior of shoppers. Online marketing is flourishing these days as customers prefer internet purchases more than live shopping experience. Companies like P.G. should provide more information about the product to the customers. In online shopping, consumers cannot physically see or touch and feel the product. The only way marketers can explain about the product is by providing maximum information about size, packaging, color, and various other features. Hence, a company like P.G. electronic stores uses shopper information to import internet sales. The following are the purposes that pilot website such as electronic stores can serve for retailers: • Advertising the product • Generating prospects • Conducting direct sales • Business-to-business sales • Making shopping experience easy • Offering maximum information regarding the product • Inventory and display costs will be reduced • Several products available in single website

Online buyers and sellers: Online buyers are online customers of a concern who prefer to buy through the website. Online sellers are third party sellers who increase their credibility to attract more customers towards their products. The research shows that the typical online buyers and sellers are between 18 and 64 years of age and spend 66 hours a month online both at work and at home. Strategic implications to online marketers: Electronic marketing is a strategic process of production, distribution, promotion, and price of goods and services to target market over digitized tools. Consider the following factors for strategic implication of the facts to online marketers: • Revenue generation • Building up the network • Societal web demographi c s • Price competition over internet • Equilibrium of market structures