Electronic media buying

Presented by:Ankur

Commerce
Commerce refers to all the activities the purchase and sales of goods or services.
Marketing, sales, payment, fulfillment, customer service

Electronic Commerce (ECommerce)

Electronic commerce is doing commerce with the use of computers, networks and commerce-enabled software (more than just online shopping) e commerce is enabling or achieving your business objectives by using information technology to enhance or transform your business processes.

eCommerce
ecommerce is more then just an online shop selling goods. Businesses make huge savings by more efficient interaction with their suppliers or buyers.
A local pharmacist orders 60% of his supplies from an overseas pharmaceutical suppliers website and saves 5% in his purchases - is this ecommerce? A remote Fiji resort attracts guests from the USA after several exchanges of email. Is this ecommerce?

Brief History
1970s: Electronic Funds Transfer (EFT)
Used by the banking industry to exchange account information over secured networks

Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies
Used by businesses to transmit data from one business to another

1990s: the World Wide Web on the Internet provides easy-to-use technology for information publishing and dissemination
Cheaper to do business (economies of scale)

Features of E-Commerce
1. Payment - credit card, smart cards, E-money 2. Service availability - business among enterprises, customers, suppliers and employees anytime, anywhere. 3. Advertising and marketing-advertising products and services. 4. Sales- Generating orders for the product. 5. Fulfillment Processing the order and delivering the product. 6. Secure Communications-Fast, efficient, reliable communication with customers and partners.

Types of E-Commerce system

Business-to-Business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C) Consumer-to-Business (B2G) Government-to-Business (G2B) Government-to-Citizen (G2C)

Business-to-Business (B2B)

Business-to-Consumer (B2C)-

Consumer-to-Consumer (C2C)-

Consumer-to-Business (C2B)

Business-to-Government (B2G)-

Government-to-Business (G2B)-

Government-to-Citizen (G2C)-

Ecommerce infrastructure
Information superhighway infrastructure
Internet, LAN, WAN, routers, etc. telecom, cable TV, wireless, etc.

Messaging and information distribution infrastructure

HTML, XML, e-mail, HTTP, etc.

Common business infrastructure

Security, authentication, electronic payment, directories, catalogs, etc.

What is working?
Travel / Tourism Retail - items that dont need personal touch objectivity in product quality and performance music, books, gifts, Computers, electronic items Auctions Real Estate - houses and investment properties. Customer support services
More efficient and effective processes between businesses (B 2 B)

What is not working?

Items which require touch and trial
Luxury goods Clothes - beyond T shirts

Groceries - it works for some people but market is restricted Note: Many OFF line factors determine success of Online service. Eg. Transport
network, customer profiles,

Objectives?
Why get online?
Promote awareness of your Organization Sell a product Customer support Information and contact page Networking Everyone else has a web page

Plan
What is your product?
Electronic, Services or physical Portable and inexpensive to deliver Tourism

Who is your market?

Overseas Fish buyers Upper income art collectors Budget travellers / Up market

Obstacles, Implementation and deadlines.

Transactions
1. Getting paid online is very difficult in the Pacific. Many banks will need a large deposit or a strong relationship to allow a SME to open a merchant / credit card processing account at a bank. Alternatives include:

Bank transfer / wire Credit Cards

Merchant account Manual / Automated processing Third party processing
paypal.com

Delivery
Delivering an artifact after online purchase or attracting visitors to an eco tourism resort managing expectations is essential
People are used to guaranteed delivery but more importantly, communicate reality so expectations are realistic. E.g. Implement a 2 week guarantee for goods Ensure online advertisement meets expectations

Use a reliable delivery service (TNT, FedEx)

Advantages of Electronic Commerce

Increased sales
Reach narrow market segments in geographically dispersed locations Create virtual communities

Decreased costs
Handling of sales inquiries Providing price quotes Determining product availability

Being in the space

 Loss of ability to inspect products from remote locations Rapid developing pace of underlying technologies Difficult to calculate return on investment Cultural and legal impediments

Disadvantages of Electronic Commerce

The process of e-commerce

1. Attract customers
Advertising, marketing

2. Interact with customers

Catalog, negotiation

3. Handle and manage orders

Order capture Payment Transaction Fulfillment (physical good, service good, digital good)

4. React to customer inquiries

Customer service Order tracking

Web-based E-commerce Architecture

Tier 1 Tier 2 Tier 3 Tier N

DMS

Client

Web Server

Application Server

Database Server

Infrastructure for E-commerce

The Internet
system of interconnected networks that spans the globe routers, TCP/IP, firewalls, network infrastructure, network protocols

The World Wide Web (WWW)

part of the Internet and allows users to share information with an easy-to-use interface Web browsers, web servers, HTTP, HTML

Web architecture
Client/server model

Cryptography
Keeping secrets
Privacy: interceptor cannot use information Authentication: senders identity cannot be forged Integrity: data cannot be altered Non-repudiation: sender cannot deny sending

How to evaluate cryptography Secret key (symmetric) cryptography;

Security Schemes

Encryption
Digital Signature Security Certificates Fire wall

Encryption

Types of encryption:
Symmetric encryption Asymmetric encryption

Digital Signatures
Digital signatures are a means of ensuring authentication of electronic information. A digital signature is an electronic signature whose authenticity is guaranteed through encryption and a password.
Private Key- A unique combination known only to the signer. It is used to encrypt the message. Message Digest-The encrypted message that is created with the help of the Private key- A code sent to the receiver separately to enable decryption of the message digest. It is also available on the web site of the certification Authority.

Security Certificate
Just as a passport is a universal way to establish your identity and gain entry to another country, a digital or security Certificate provides identification in the electronic world. Certificate authorities (CAS) are organizations that issue security certificates.

Fire wall
The ICSA (International Computer Society Association) defines firewall as a system or group of systems that enforces an access control policy between two computer networks.

Example of electronic media buying

E-Commerce: Begin Recording Step 1 of 9

Begin the ECommerce test by going to the portal Web page and select Record > Start Recording, from the menu.

E-Commerce: Select An Item To Purchase Step 2 of 9

Navigate through the catalog and select an item to purchase. If needed you can validate text samples to ensure proper search engine and database output.

E-Commerce: Add Item to Shopping Cart Step 3 of 9

Add an item to the shopping cart

E-Commerce: Login Step 4 of 9

and login through the authentification system if needed.

E-Commerce: Validate User Information Step 5 of 9

You can validate that the correct user information was retrieved by first selecting text pertaining to the user. Just click Record > Validate > Selected > Text.

E-Commerce: Validate Step In Order Step 6 of 9

To ensure that the order is progressing normally, validate by highlighting some text at each step in the ordering process.

E-Commerce: Enter Payment Information Step 7 of 9

When you reach the payment section of the order, enter synthetic payment information (to avoid transaction charges).

E-Commerce: Validate Feedback Step 8 of 9

Validate the order by selecting and validating feedback that indicates a successful order.

E-Commerce: Enter Payment Information Step 9 of 9

When you are finished testing your E-Commerce portal, select Record > Stop Recording. You tested this portal successfully.