E-Commerce and Digital
Marketing
TYBMS

What is Digital Marketing?
• Digital marketing is a term used to describe the
integrated marketing services used to attract,
engage and convert customers online.
• Digital marketing utilizes multiple channels such
as content marketing, influencer marketing, SEO,
social media and online advertising to help
brands connect with customers and uncover
performance of marketing programs in real-time.

Digital Marketing
• In simplest terms – it’s the method of
promoting your product or services to
consumers on electronic media such as mobile
phones, computers, tablets and the like

• Thus digital marketing is:
Building awareness and promoting a brand or
product using all available digital channels.
Digital Marketing

Digital Marketing
• When consumers hear about a product today,
their first reaction is “Let me search online for it”.
• And so they go on a journey of discovery: about a
product, a service, an issue, an opportunity.
• Today you are not behind your competition. You
are not behind the technology. You are behind
your consumer

Digital media can be created, viewed,
distributed, modified and preserved
on digital electronics devices.
• EXAMPLES:
• 1. Feeds
• 2. Blogs
• 3. Voice over Internet Protocol
• 4. Podcasts
• 5. Webcams
• 6. Community portals (e.g. Facebook, Myspace,
Friendster, online dating services)

Owned media
• Owned media is any web property that you can control and
is unique to your brand. One of the most common
examples is a website, although blog sites and social media
channels are other examples of owned media properties
too.
• Channels like social media and blogs are extensions of your
website, and all three are extensions of your brand as a
whole.
• The more owned media you have, the more chances you
have to extend your brand presence in the digital sphere.

Earned media
• If owned media sites are the destination then
earned media is the vehicle that helps people
get there.
• What good is a website or social media site if
no one is seeing or interacting with it?

That's where earned media comes in.
• Earned media is essentially:
• 1. online word of mouth
• 2. 'viral' tendencies
• 3. mentions
• 4. shares
• 5. reposts
• 6. reviews
• 7. recommendations, or
• 8. content picked up by 3rd party sites.

Most effective driving forces of earned
media
• 1. A combined result of strong organic
rankings on the Search Engines
• 2. Content distributed by the brand.

2. Brand Content
• When it comes to brand content, interesting,
informative content can come in all shapes
and sizes.
• Whether it be a blog, infographic, video,
press release, webinar or e-book, the bottom
line is that the content has to be worthwhile
in order to receive the valuable earned media;
which is why a great content strategy is also
important.

Paid media
• Paid media is a good way to promote content in
order to drive earned media, as well as direct
traffic to owned media properties.
• Paying to promote content can help get the ball
rolling and create more exposure.
• Social Media sites like Facebook, Twitter and
LinkedIn offer advertising that could potentially
help boost your content as well as your website.

• Another way to gain more exposure for your
content is to pay influencers to tweet or share
your links, impacting the reach and recognition
your pieces receive.
• Using retargeting, Pay Per Click and display ads is
an effective and more direct way to drive
searchers to your owned media sites like your
website, to help increase traffic and/or
conversions.

Digital Marketing Methods
• The most common methods used today are
• SEO– Search Engine Optimization
• SEM– Search Engine Marketing
• Social Media Marketing
• Content Marketing
• Affiliate Marketing
• Email Marketing

Search Engine optimization (SEO)
• SEO is the process of optimizing the content
on your website so that search engines show
it as the top result for searches of a certain
keyword

SEO
• First page rankings and good content are
typically the biggest drivers.
• Rankings on the first page of the search
engines place owned media sites and content
links in a position to receive higher
engagement and shares, which is why a
good SEO strategy is crucial.

Social Media Marketing
• As the name suggests this entails using social
media platforms to promote a product or
service.

Content Marketing
• Content marketing is a long term strategy,
base on building a strong relationship with
your customers by giving them valuable
content that is highly relevant to them on a
consistent basis

Affiliate Marketing
• Affiliate marketing is a type of performance-
based marketing in which a business rewards
• one or more affiliates for each visitor or
customer brought by the affiliate's own
marketing efforts

Email Marketing
• As the name suggests this involves sending an
email that promotes your product or service
to your relevant target group

What is a search engine
• A program that searches for and identifies
items in a database that correspond to
keywords or characters specified by the user,
used especially for finding particular sites on
the World Wide Web.

Search Engine Optimization ( SEO)
• the process of maximizing the number of
visitors to a particular website by ensuring
that the site appears high on the list of results
returned by a search engine.
• Search engine optimization (SEO) is the
practice of increasing the quantity and quality
of traffic to your website through organic
search engine results.

DEFINATION OF SEO
• Search engine optimization is a methodology
of strategies, techniques and tactics used to
increase the amount of visitors to a website by
obtaining a high-ranking placement in the
search results page of a search engine (SERP) -
- including Google, Bing, Yahoo and other
search engines.

Natural
Paid
Paid

Three components of Organic search
• There are three main components to organic search:
• 1. Crawling
• 2. Indexing and
• 3. Ranking.
• When a search engine like Google arrives at your website, it
crawls all of the links it finds.
• Information about what it finds is then entered into the
search engine’s index, where different factors are used to
determine which pages to fetch,
• Based on indexing ranking of the search engine result page
is organized for a particular search query.

• If a search engine isn’t able to crawl and index
the pages on a particular website, it is not
going to receive any traffic from Google.
• Clearly, ensuring website is properly crawled
and indexed by search engines is an important
part of SEO.

But how can one tell if a particular
site is indexed properly?
• If you have access to Google Search Console, it
tells how many pages are contained in XML
sitemap and how many of them are indexed.
Unfortunately, it doesn’t go as far as to tell
which pages aren’t indexed.

• Google Search Console (previously GoogleWe
bmaster Tools) is a no-charge web service by
Google for webmasters. It allows webmasters
to check indexing status and optimize visibility
of their websites. As of May
2015, Google rebranded Google Webmaster
Tools as Google Search Console.

Coca-cola on face book

Coke on Twitter

Coca-Cola’s Pinterest

What is E-commerce
• Commercial transactions conducted
electronically on the Internet.
• Thus consists of the buying and selling of
products or services over electronic systems
such as the Internet and other computer
networks.

Business on the Net
• Not all businesses can complete all of
their activities online
• Companies that can complete almost all
of their business online are called click-
only companies.
• Companies that use both the internet
and traditional businesses operations
are called brick-and-click businesses.

Difference between E-commerce and
E-Business?
Commerce : The exchange of commodities, buying and selling, of products
and services requiring transportation, from location to location is known as
commerce.
E-commerce is buying and selling of Information, Product and Services
using an electronic medium. It is accepting credit and payments over the net,
doing banking transactions using the Internet, selling commodities or
information using the World Wide Web and so on.
E-Business in addition to encompassing E-commerce includes both front
and back-office applications that form the engine for modern E-commerce. E-
business is not just about E-commerce transactions; it's about re-defining old
business models, with the aid of technology to maximize customer value. E-
Business is the overall strategy and E-commerce is an extremely important
facet of E-Business.

Why Study E-commerce?
• Technology is different and more powerful than
other technologies
• Has challenged much traditional business thinking
• Has a number of unique features that help explain
why we have so much interest in e-commerce

43
Buyer and Seller Roles In Commerce

11/14/2022
Different types of E-Commerce
Business
(organization)
Customer
(individual)
Business (organization)
Customer
(individual)
B2C
(e.g Amazon)
-Dell selling me alaptop
Mc Donalds selling me a Big
Mac
C2B
(e.g Priceline)
Me selling my old
schoolbooksto a second handbook
shop
C2C
(e.g eBay)
Mary buying an iPod from
Tom on eBay
Me selling a car to my
neighbour on OLX
B2B
(e.g Amazon)
 B2b -Intel selling micro
processors to Dell
Heinz selling ketchup to Mc
Donalds

B2C
 B2C means e-commerce transactions between business and
consumer
 Commerce between companies and consumers
 Involve customer gathering information; purchasing physical
goods (tangible such as books or consumer products) or
information goods (goods of electronic material or digitised
contents such as software or e-books
 2nd largest and earliest form of e-commerce
 Example of B2C business:
 Retailing business: Amazon.com, pizzahut.com,
 Information goods: cuticuti.com,
 With the use of online banking tools (example: Maybank2u)

 B2B means e-commerce transactions between
business and business
 E-commerce between companies
 Example: IBM, HP, Dell
 B2G means e-commerce between companies and
public sector
 involves borderless transactions.
 Internet for public procurement,
 Example: myeg.com.my, e-tender by JKR, licensing
procedures and other government related operation

Advantage/benefit to business
 Help increase profits and decrease costs; reduced overhead; facilitates “pull”-type supply
chain management
 Wide base for customers – internationally; geographically scattered; areas not previously
reached
 Identify new suppliers and business partners
 Ability to create highly specialised businesses
 Lower communication costs
 Buyers have wide range of choices of vendors and products
 Availability 24/7
 Competitive market causes decrease in prices, discounts or “freebies” thrown in
 Customers receive relevant and detailed information in seconds, as opposed to days or weeks
 Allows individuals to work from home, do less travel

Disadvantage to business
• Some businesses processes may not work using e-
commerce
– Perishable goods
• Difficult to calculate return-on-investment (ROI)
• Potential cultural and legal obstacles
– Legal environment still unclear and have conflicting
laws
• No “touch-and-feel” aspect
– Loss of ability to inspect products from remote
locations

E-commerce infrastructure
 Information superhighway infrastructure
 Internet, LAN, WAN, routers, etc
 Telecom, cable TV, wireless, etc
 Messaging and information distribution infrastructure
 HTML, XML, email, HTP, etc
 Common business infrastructure
 Security, authentication, electronic payment, directories catalogs,
etc
 Web architecture
 Client/server model
 N-tier architecture; e.g. web servers, application servers,
database servers, scalabilty

The process of e-commerce
 Attract customers
 Advertising, marketing
 Internet with customers
 Catalog, negotiation
 Handle and manage orders
 Order capture
 Payment
 Transaction
 Fulfillment (physical good, service good, digital good)
 React to customer inquiries
 Customers service
 Order tracking

Issues Surrounding E-commerce
• 1. Trust
• 2. Language
• 3. Culture
• 4. Culture and government
• 5. Infrastructure

Trust Issues
• How do I know who you say you are?
• How can I guarantee that you will supply me
with the products you offer within the
timeframe you gave?

© The New Yorker Collection 1993 Peter Steiner from cartoonbank.com. All rights reserved

Trust Issues
• Established companies, especially those with
offline presence, have easy time creating trust
on the Web
• New companies face difficulties due to
anonymity that exists
– Visitors won’t just buy from anyone, especially if
they have never heard of the company before

Language Issues
• “Think globally, act locally”
• Providing local language conversions of a site
– Customers more likely to buy products or services
from a site in their own language
• About 60% of content on Web is in English; more than
50% of current Internet users do not read English

Culture Issues
• Common language and common customs
provide an easier time for consumers to
determine how companies will react in
situations of misrepresentation of quality, etc
• Laws and business practices vary between
countries

Culture Issues
• Wine.com (not suitable for Muslim culture)
• Use of icons and terms to depict common actions
– Shopping carts used in US; shopping baskets used
in Europe; shopping trolleys used in Australia
– The OK symbol seen as an obscene gesture in
some countries

Culture and Government
• Government controls that limit forms of open
online discussions
• Some officials in North African and Middle
East take public issue with the availability of
sexually explicit, anti-Islamic content on the
Web

Culture and Government
• In 2004, Chinese government shut down a Blogbus
because it contained an essay which the government
deemed to contain “forbidden content”
• French law regulates that an advertisement for a
product must be in French; companies willing to sell
to Frenchmen online and ship to France must have
content in French
• What impacts do you see for these restrictions in
Malaysia where e-commerce is concerned?

Infrastructure Issues
• Local connection costs in developing countries
high; some countries required payment for time
spent online
– This could lead to people spending less time online
– Introduction of flat-rate access required
– Check Tmnet promotion, W1max, Celcom and Maxis
broadband
• More than half of businesses on web turn away
international orders as do not have capacity or
processes in place to fill them

Obstacle, problems and issue faced by companies
in engaging e-commerce
1. Lack of awareness and understanding of the value of e-commerce
 Many thinks that e-commerce suited only for big companies
 Additional cost that will not bring any major returns to investment
2. Lack of ICT knowledge and skills
 Shortage of skilled workers especially in small and medium companies
 Limited capabilities in design, distribution, marketing and post sale support
3. Financial cost
 Initial investment to adopt new technology is proportionately heavier for small than for large firm
 Firms will need to undertake investment in an appropriate computer system to implement e-commerce.
 High cost of computer and internet access
4. Infrastructure
 Many developing countries has poor telecommunication infrastructuren
5. Security
 Ensuring security on payment and privacy of online transaction
 Lack of trust to use internet to make online payment

Impact of e-commerce
 e-commerce will eliminate mediation process as
producers can sell direct to consumers.
 firms will have fast knowledge of what customers want.
 Firms can use this knowledge to guide the development
of their product lines and to identify new growth areas
at their earlier stages.
 e-commerce will also help small- and medium-sized
enterprises (SMIs) to gain greater market reach for their
products and services.

Impact of e-commerce
 In fact, e-commerce can be an efficient and economical
way for many SMIs to enter an export market.
 E-commerce offers consumers a wide range of new
opportunities to do direct shopping and banking using the
convenience of a home computer or other communication
devices.
 Consumers will also benefit in terms of lower final prices
due to lower transaction costs as described above.
 e-commerce consumers will have a wider and direct access
to producers of goods and services without intermediaries.

Impact of e-commerce
 With a wider choice of products and services offered to
them, they can cast their preferences by describing what
they want.
 In this environment, e-commerce will hasten the shift of
market power of consumers, from a "product taker" to a
"product maker".
 As a result, this process will lead to greater competition
among firms to protect their market share.
 e-commerce will result in higher investment by the
Government, firms and consumers.

Impact of e-commerce
 Coupled with higher investment in IT, e-commerce will
result in higher efficiency and productivity of the economy.
 e-commerce will contribute to higher total factor
productivity of the Malaysian economy which is needed to
sustain economic growth in the long term.
 E-commerce will create new activities and a variety of new
industries which utilize IT.
 This will lead to the creation of new job opportunities.