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Proceedings of the InternationalJOURNAL Conference on Emerging Trends in EngineeringENGINEERING and Management (ICETEM14) INTERNATIONAL OF COMPUTER & 30 – 31, December 2014, Ernakulam, India TECHNOLOGY (IJCET)
ISSN 0976 – 6367(Print) ISSN 0976 – 6375(Online) Volume 5, Issue 12, December (2014), pp. 123-128 © IAEME: www.iaeme.com/IJCET.asp Journal Impact Factor (2014): 8.5328 (Calculated by GISI) www.jifactor.com
IJCET ©IAEME
IMPACT OF ELECTRONIC COMMERCE IN MARKETING AND BRAND DEVELOPING Mr. Dijesh P1,
Dr. Suvanam Sasidhar Babu2,
Mrs. Y Vijayalakshmi3
1
Research Scholar, Bharathiar University, Associate Professor, Department of Computer Applications, Vidya Academy of Science & Technology, Thalakkottukara, Thrissur-680501, Kerala, India 2 Professor – Department of CSE, Sree Narayana Gurukulam College of Engineering, Kadayiruppu, Eranakulam – 682311, Kerala, India 3 Research Scholar, Karpagam University, Coimbatore, Tamilnadu, India
ABSTRACT Electronic Commerce (E-commerce) is the conduct of business activities using electronic data transmission technologies such as those used in the Internet and World Wide Web (WWW). There are different aspects of doing Ecommerce such as Business-to-Customer (B-C), Business-to-Business (B-B), Business –to-Government (B-G) and Customer-to-Customer (C-C). Now a days more and more people participate in E-commerce transactions. The main advantage of E-commerce is that people can save money and time. The financial volume of E-commerce transactions increased to billions of dollars today. People are more concerned about the security of transacting online. Since E-commerce transactions became very common, and the volume of transactions rose high, we need to strengthen the current security facilities. More or less, trust between the trading partners is also very important. Without trust, most people prefer to do traditional methods of doing business. Brands have got a major impact on any kind of business. Emotional brands tries to promote products/services based on emotional appeals of customers rather than specific service offered. Business usually creates an effective web presence to attract visitors and reflect positive images about the organizations among the potential customers. Keywords: Aspects of E Commerce, Advantages, Emotional Brand. 1. INTRODUCTION The financial volume of Electronic commerce transaction rose to billions of dollars today. More people participate and purchase online now a days. The main reason is the easiness of search and cost associated with the purchase of the product. Since there are several sellers at a single point, negotiations are very high. Market is a place where the two parties, buyer and seller come and meet. Sales happens if both the buyer and seller arrive at a final decision to buy/sell not only with respect to the price of the product, but also with several other aspects like date of delivering the product, mode of shipment etc. Prior to doing electronic commerce people were doing traditional commerce. There are several advantages and disadvantages of doing electronic commerce. Before looking into details of electronic commerce, traditional commerce needs to be compared. In a traditional way of doing business, a physical space is necessary. The business needs to hire appropriate employees,
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Proceedings of the International Conference on Emerging Trends in Engineering and Management (ICETEM14) 30 – 31, December 2014, Ernakulam, India pay wages to them and maintain the physical space by paying all utility bills etc. But here the buyer will have the flexibility to choose the product to his/her like by physically verifying it. Also no concerns are there for the payment. Buyer can pay cash or go for electronic payment and receive the product then and there. The major disadvantage is that, cost increase due to the hiring and maintenance of office space, employee wages, utility bills etc. For electronic commerce, no physical space is needed. Therefore no utility bill payments needed. It also has the flexibility to operate 24/7 a day week throughout the year. Buyers from any part of the world participate in the business. 2. BUYER PERSPECTIVE OF BUSINESS/TRNSACTION Buyers purchase the required items through electronic commerce sites after a series of activities. a) b) c) d) e) f)
Identify the specific needs Search for products or services that satisfies the specific need Selection of a vendor Negotiate Purchase transaction with vendor Make payment (Online payment methods can be adopted) Perform regular maintenance and go for any warranty related issues.
The needs of customers will be different. After the identification of the need and selection of an appropriate vendor, negotiation happens between buyer and seller. Buyer negotiate a purchase transaction where as seller negotiates a sales transaction. 3. SELLER PERSPECTIVE OF BUSINESS/TRANSACTION The seller at the other end, do business with the customer in a series of steps. a) b) c) d) e) f) g)
Conduct market research to identify the needs of customers Create product/service that meets the customer needs. Advertisement and promote the product/service Negotiate the sales transaction Ship the goods and raise invoice to the customer Receive and process payments from customer. Provide after sales support, maintenance and warranty claims to the customers.
Both the buyer and seller are having an active role in any electronic commerce business. 4. ADVANTAGE/DISADVANTAGES OF E COMMERCE Electronic commerce has several advantages apart from traditional commerce. a) b) c) d)
Can increase sales and reduce costs Advertisement done on the web can spread the promotional message to potential buyers across the world. Reach narrow market segments – geographically scattered. Useful in the creation of virtual community.
Like all other technologies electronic commerce has major drawbacks. a) Perishable products like fish/meat are not appropriate for sales. b) Antiques may be very difficult to inspect by the buyer from a remote location. Internet reduced the distance between buyer and seller. Online business seems to have a positive impact on business. 5. MARKET FORMS OF ECONOMICAL ORGANIZATIONS Since the major advantage of electronic commerce is the reduced cost, business began to think of different ways in which they can reduce cost and supply good quality products to customers. The impact of economic forces on electronic commerce can be best illustrated with the help of an example.
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Proceedings of the International Conference on Emerging Trends in Engineering and Management (ICETEM14) 30 – 31, December 2014, Ernakulam, India Consider the case of a car manufacturer. Not all the components of a car were manufactured by the car manufacturer. Many of the components were outsourced to other organization having expertise in that field. Consider the tyre of a car. Assume that it is being manufactured by a company called MRF and the car manufacturer is Toyota. MRF will provide regular supply of tyres to Toyota. For manufacturing the tyre MRF requires rubber. They source rubber from main rubber dealers. The main rubber dealer may be collecting rubbers from local distributors. The local distributors visit the different rubber estates and purchase the rubber sheets. We can see business happening and different levels. A percentage of profit booking happens at level. Cost of the tyre increase when it reaches the car manufacturer. Best way to reduce the cost is to reduce the levels between buyer and seller in order to reduce cost. 6. WEB MARKETING STRATEGIES Different companies use several strategies in business. Most common strategy is to group customers and create targeted messages to these groups. Grouping helps to create different market segments. Creating segments and marketing within the segment improves sales and revenue. Marketing mix is the combination of elements a company uses to achieve different goals for selling product/services. When a company decides which elements are needed for different segments, that particular mix is called its marketing strategy. 6.1 PRODUCT BASED STRATEGY Most companies offer different products that are targeted to different groups. When creating a mix the business must consider both the nature of the product as well as the nature of the potential buyers. Companies for different market segments launch different products. Companies must think of their business in terms of the products and service they sell. For example Toyota has product range Etios (4 to 7 lacs), Corolla (12 to 15 lacs), Camry (20 to 22 lacs), Land cruiser Prado (65 to 75 lacs), Land cruiser (1 – 1.2 crores). All these products are not aimed to one segment. Also those who loves to drive sedan can choose Etios & Corolla. Those who need luxury sedan may choose Camry. The above example also illustrates the product-based strategy. It is possible to divide the product base of Toyota into Sedan (Etios and Corolla & Camry) and SUV (Sports Unitility Vehicle such as Land Cruiser). People who are little more adventurous and rich may prefer SUV’s. Now a days we may be able to see many car manufacturers produce compact SUV’s as market demands are high for these types of vehicles. 6.2 CUSTOMER BASED STRATEGIES A strategy that is flexible enough to meet different customer needs is called customer-based strategy. Instead of thinking of a company’s web site s a collection of products, companies can build their sites to meet specific needs of various customers. Companies need to find out customers who share common characteristics. 7. 4 P’S OF MARKETING There are certain elements that influence marketing. Companies must plan what type of product the customer is in need of and make it available at a competitive price at convenient locations. Necessary promotional activites are inevitable for the success of products/services. 7.1 PRODUCT The very first element that influences marketing is the product/service that is offered to the customers. Product is the physical items that the company is selling. The characteristics of the product are important. The customer’s perception of the product – called brand – plays an important role in marketing. 7.2 PRICE Price is the amount the customer pays for the product or service. It is all the financial costs that the customer pays to obtain the product. The total cost is subtracted from the benefits that a customer derives from the product to obtain the customer value. Customer value should always be positive for a product to become successful. Also the customer value may be different for the same product to different customers. For Example the price of Luxury cars varies from 20 lacs till 3 crores. When more products are available at different price bands, customers may prefer for brand. We can conclude that pricing depends on brands. 7.3 PROMOTION Information about the products/service should reach the customers. Promotion includes any means of spreading the globe about the product/services. Several techniques are available in the Internet for communicating with existing and potential customers (News groups, Emails, virtual communities etc.)
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Proceedings of the International Conference on Emerging Trends in Engineering and Management (ICETEM14) 30 – 31, December 2014, Ernakulam, India 7.4 PLACE Place refers to the locations at which the products/services are available. All the products are not suitable for sales at all locations of the globe. For example the car manufacturer Ferrari has only one showroom in India (at Mumbai). Jyothi laboratories started the business of ironing dress at customer locations in select cities of India (Bangalore, Mumbai). Rolls Royce is about to start a new showroom at Cochin because the company found several potential customers in Kerala. Even though all the points discussed above add more credits to effective marketing, in electronic commerce certain other factor contribute too. 8. CREATING WEB PRESENCE An organizations presence is the public image it conveys to its stakeholders. Stakeholders include customers, suppliers, stockholders, neighbors and general public. The presence gives the customer a reflection of the company. It is like in traditional business people prefer to buy from finest shopping malls where they find some kind of quality assurance. Like wise in electronic commerce the web site should attract visitors. On the web business have the luxury of intentionally creating a good presence. A good web site design can provide many image-creation and enhanced features effectively. It can serve as a sales brochure, a product showroom, a financial report, an employment advertisement and a customer contact point. 8.1 ACHIEVING WEB PRESENCE GOAL An effective web site creates an attractive presence that met the objectives of the business. These can include: a) b) c) d) e) f) g)
Attract visitors to the web site Make the web site interesting enough so that visitors stay Convince visitor to follow the sites links to obtain information Create an impression consistent with the organizations image Build a trusting relationship with visitors Reinforce positive images that the visitor might already have about the organization Encourage visitor to return to the web site
Current days Website is an efficient medium to create a long lasting relationship with the existing and potential customers. Website is also a excellent medium where brand development becomes efficient, fast and cost effective. 9. IMPACT OF BRAND IN E COMMERCE As in traditional commerce brands have a greater impact on electronic commerce. A known and respected brand name can present to potential customers a powerful statement of quality and value. Branded products are easier to advertise and promote. Eg. Sony, Apple, Mercedes Benz, BMW 9.1 ELEMENTS OF BRANDING The key elements are 9.1.1 DIFFERENTIATION The company must distinguish its product from all others in the market. Eg. Apple Computers are best known for its build quality and reliability. 9.1.2 RELEVANCE Relevance is the degree of utility, which the product offers to a potential customer. This may vary across customers. Eg. Customers buy different models/brands of a particular product, because they may find different utility in those products. 9.1.3 PERCEIVED VALUE A customer should see a value in the product/service. Unless a customer perceives a value, he/she doesn’t buy that. Eg. Those who are very much interested in paintings may find more value for a work by Picaso than one who does not have much interest towards painting.
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Proceedings of the International Conference on Emerging Trends in Engineering and Management (ICETEM14) 30 – 31, December 2014, Ernakulam, India Likewise one cannot exactly predict the value of “Kohinoor diamonds”. 10. EMOTIONAL VS RATIONAL BRANDING Brands may loose its value if the environment in which they have become successful changes. For example, in India when motorcars were introduced, Hindustan Motors “Ambassador” model was very much successful for a long terms. When the interest of the customers changed to small cars of lesser engine size, the market shifted to Maruti Suzuki (Maruti 800 model). Customers did not see the same perceived value or differentiation in Hindustan Motors product. Companies have used emotional appeals in their advertisements and promotional offers. For example Cine artists in advertisements, Cricketers in advertisements contribute to generate emotional feelings among customers. Since the web users may be busy people who will rapidly click away from emotional appeals, it is very difficult to convey in the web. In rational branding companies relies on specific help offered, not on broad emotional appeal. 10.1 BRAND LEVERAGING STRATEGIES It is a technique used to extend a websites dominant positions to other products and services. For Example, Yahoo acquired Geocities.com and broadcast.com and entered into partnership with a number of media and entertainment companies. 10.2 COST OF BRANDING Brand developments are very difficult in the current competitive environment. Transferring existing brands to the web or use the web to maintain an already reputed brand is much more easy and less expensive. 11. CONCLUSIONS Electronic commerce has several advantages over doing business in the traditional way. The advertisements and promotions done through web can reach even geographically separated area. Cost of selling in the web is also less when compared with traditional commerce. Marketing done through web, as a medium is efficient and cost effective. With the enhancements in computer technology, maintaining a long lasting relationship with customers and building trust become easy. Electronic commerce also helps developing brands. Electronic commerce has grown as a better medium in identifying and reaching potential customers. REFERENCES Books [1] [2] [3]
Peter Keen. Ensuring E-Trust. ComputerWorld. Beginnig Ruby on Rails E Commerce – Cristian Hellsten. Ravi Kalakota, Andrew B. Whinston. Electronic Commerce: A Manager’s Guide, Addison-Wesley, ISBN: 0201-88067-9.
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The SANS Institute, www.sans.org/topten.htm.
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Jane Bryant Quinn. The Spies in Your Pocket". Newsweek.
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S.Sasidhar Babu, M.Vinaya Babu, and N.V.Kalyankar “Analysis of Intelligent Information Retrieval Techniques in a Digital Library Services”, International Journal of Physical Sciences, Ultra Scientist Vol. 21(3) M, pp 971-980(2009). ISSN: 0970-9150.
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Dr.Suvanam Sasidhar Babu, Prof.A. Chandrasekhara Sarma, Yellepeddi Vijaya Lakshmi, Dr.N.V Kalyankar “Scalability of Multi Tier Transactions Towards Data Confidentiality for Cloud Applications” International Journal of Soft Computing and Engineering ISSN:2231-2307, Volume – 2, Issue 4, Pages (247-250) (September 2012). http://www.ijsce.org/attachments/File/v2i4/D0904072412.pdf Yellepeddi Vijayalakshmi, Dr. Suvanam Sasidhar Babu, Dr. N.V. Kalyankar, “A study of privacy settings threats in social network and industrial network for a safer and secure in cyberspace” International Journal of Advanced Computer Engineering, ISSN: 0974-5785, Volume -6, Number 1, Pages (24-28) January – June 2013. Dr. S. Sasidhar Babu, Y. Vijayalakshmi, A. Anantha sai Varun, A. Sandhya Lakshmi, P. Chandrika “Methodical detection of malicious Apps. Smartphone evolutions on android”, International Journal of Advanced Computer Engineering, ISSN: 0974-5785, Volume -6, Number 1, Pages (34-37), January – June 2013. V. Poorna Chander, Prof. G. Charles Babu, Dr. Suvanam Sasidhar Babu, Yellepeddi Vijayalakshmi “Procure Data Storage in Cloud Using CPABE” Interantional Journal of Computer Trends and Technology – ISSN 23490829, Page No.3633, Volume 4, Issue 10, October 2013. Suvanam Sasidhar Babu, “Discovery Mining on web Intelligence with SQL Inference” J. of Comp. and I.T. Vol. 1(2), 151-158 (2010). International Journal of Computer Science and Information Technology Vol. 1, Issue 2, December, 2010 Pages (109-186) ISSN 2229-3531. S.Sasidhar Babu, Ato Solomon Zewdie, Dr.N.V.Kalyankar, S.Vijaya Lakshmi “Strength of Auditing in Structured Query Language” International Journal of Computer Science, Systems Engineering and Information Technology 3 (2), July-December 2010, pp. 337–343. ISSN 0974-5807. V.Srikanth and Dr.R.Dhanapal, “Ecommerce Online Security and Trust Marks”, International Journal of Computer Engineering & Technology (IJCET), Volume 3, Issue 2, 2012, pp. 238 - 255, ISSN Print: 0976 – 6367, ISSN Online: 0976 – 6375. Dr.Anukrati Sharma, “A Study on E – Commerce and Online Shopping: Issues and Influences”, International Journal of Computer Engineering & Technology (IJCET), Volume 4, Issue 1, 2013, pp. 364 - 376, ISSN Print: 0976 – 6367, ISSN Online: 0976 – 6375.
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