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Advantages of Traditional Purchasing

The document discusses internet marketing versus traditional marketing, describing the types of each. It also discusses advantages of traditional purchasing and security issues related to e-commerce.

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0% found this document useful (0 votes)
61 views7 pages

Advantages of Traditional Purchasing

The document discusses internet marketing versus traditional marketing, describing the types of each. It also discusses advantages of traditional purchasing and security issues related to e-commerce.

Uploaded by

sREEKANTH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

(1) Internet Marketing vs.

Traditional Marketing

The world of marketing is no longer as simple as it used to be. As the paradigm continues to shift to reward
online advertising, marketers and business owners are often faced with the question of which is more effective:
Internet marketing or traditional marketing? You want your work to drive more customers and make more
sales, all while using the least amount of resources

traditional marketing

Traditional marketing includes any non-Internet advertising methods, some of which have been used for
decades, including:

1. Print
2. Direct mail
3. Broadcast
4. Referral

These types of marketing are typically seen in newspapers, magazines, television, and more. Today, traditional
marketing media are butting heads with the Internet as they compete for the same audiences.

For example, online video streaming services like Netflix and YouTube directly compete with television.
Google can deliver phone numbers much more quickly than a phone book. Plus, an increasing number of
consumers prefer to read their news online instead of in newspapers.

Internet marketing

Internet marketing is the term used to describe any advertising efforts that occur online, including:

1. Email marketing
2. Social media marketing
3. Content marketing
4. Search engine optimization
5. Pay per click advertising

(2) e-Procurement is constantly evolving – but its foundation of improving customer/supplier relationships and
internal business processes remains intact. ... Communication, as it pertains to e-procurement, means the
exchange and sharing of data between customer and supplier.

Advantages of traditional purchasing

1. You can try on clothes


2. You can check the material
3. You can see the design from close
4. You get the product immediately after you pay
5. You know from where does the product comes
(4) The world today is coming closer. From communicating to one person sitting at the other end of the world
to finalizing business deals, everything has become fast and quick. The reason for this is the massive internet
boom which has made life easier for the average person by providing a plethora of options. What’s more it has
also made your shopping experience a more interesting and enjoyable one. You can now get practically
everything from online shopping.

e-commerce security

E-commerce security is protection the various e-commerce assets from unauthorized access, its use, or
modification.

There are various types of e-commerce threats. Some are accidental, some are purposeful, and some of them
are due to human error. The most common security threats are phishing attacks, money thefts, data misuse,
hacking, credit card frauds and unprotected services.

1. Inaccurate management-One of the main reason to e-commerce threats is poor management. When
security is not up to the mark it poses a very dangerous threat to the networks and systems. Also
security threats occur when there are no proper budgets are allocated for purchase of anti-virus software
licenses.
2. Price Manipulation-Modern e-commerce systems often face price manipulation problems. These
systems are fully automated; right from the first visit to the final payment getaway. Stealing is the most
common intention of price manipulation. It allows an intruder to slide or install a lower price into the
URL and get away with all the data.
3. Snowshoe Spam-Now spam is something which is very common. Almost each one of us deals with
spam mails in our mail box. The spam messages problem has never been actually solved but now it is
turning out to be a not so general issue. The reason for this is the very nature of a spam message. A
spam is something which is sent by one person; but unfortunately a new development is taking place in
the cyber world. It is called as snowshoe spam. Unlike a regular spam it is not sent from one computer
but is sent from many users. In such a case it becomes difficult for the anti-spam software to protect the
spam messages.
4. Hacktivism-The full form of Hacktivism is hacking activism. At first it may seem like you should
hardly be aware of this cyber threat. After all it is a problem not directly related to you. Why you should
be bothered at all? However that’s not the case. Firstly hacktivists do not target directly to those
associated only with politics. It can also be a socially motivated purpose. It is typically using social
media platforms to bring to light social issues. It can also include flooding an email address with so
much traffic that it temporarily shuts down.
5. Wi-Fi Eavesdropping-It is also one of the easiest ways in e-commerce to steal personal data. It is like a
“virtual listening” of information which is shared over a Wi-Fi network which is not encrypted. It can
happen on public as well as on personal computers.
(5) Middleware is the software that connects software components or enterprise applications. Middleware is
the software layer that lies between the operating system and the applications on each side of a distributed
computer network Typically, it supports complex, distributed business software applications.

Role of middle ware in e-business

Middleware is a term which refers to the set of services composed of IAA, APIs, and management systems
which support the needs of a distributed, networked computing environment. As the name ``middleware''
suggests, it is, using the hierarchical model, a layer of services which sits between applications and the services
they access. An excellent overview of middleware can be found in RFC 27681. The RFC's authors admit that
even today, middleware is still not a well-defined term but the above definition is consistent with the RFC's
and is sufficient for the purposes of this paper.

Middleware, at first glance, seems somewhat innocuous or invisible, especially when it works well. Looks can
be deceiving, however. Middleware is a critical component in the CoS model. It is the middleware which
supports the creation and removal of users, provides the ability to verify an identity, manages the addition and
removal of services associated with user ids, and even the addition and removal of services available to users.
Within the enterprise, a good middleware solution makes the delivery of services transparent to users. There is
no need to know which server is providing a given service and a single login/password provides access to all of
the enterprise's services, subject to whatever policies have been established. In the business-to-business world,
where multiple enterprises establish electronic relationships, middleware will perform the same function but it
is complicated by the fact that there are currently no middleware standards in place.

(6) E-business and legacy system are terms that are sometimes used interchangeably, and sometimes they're
used to differentiate one vendor's product from another. But the terms are different, and that difference matters
to today's companies.

In both cases, the e stands for "electronic networks" and describes the application of electronic network
technology - including Internet and electronic data interchange (EDI) - to improve and change business
processes.

E-commerce covers outward-facing processes that touch customers, suppliers and external partners, including
sales, marketing, order taking, delivery, customer service, purchasing of raw materials and supplies for
production and procurement of indirect operating-expense items, such as office supplies. It involves new
business models and the potential to gain new revenue or lose some existing revenue to new competitors.

It's ambitious but relatively easy to implement because it involves only three types of integration: vertical
integration of front-end Web site applications to existing transaction systems; cross-business integration of a
company with Web sites of customers, suppliers or intermediaries such as Web-based marketplaces; and
integration of technology with modestly redesigned processes for order handling, purchasing or customer
service.

E-business includes e-commerce but also covers internal processes such as production, inventory management,
product development, risk management, finance, knowledge management and human resources. E-business
strategy is more complex, more focused on internal processes, and aimed at cost savings and improvements in
efficiency, productivity and cost savings.
(7) Enterprise application integration

Enterprise application integration is an integration framework composed of a collection of technologies and


services which form a middleware or "middleware framework" to enable integration of systems and
applications across an enterprise.

Many types of business software such as supply chain management applications, ERP systems, CRM
applications for managing customers, business intelligence applications, payroll and human resources systems
typically cannot communicate with one another in order to share data or business rules. For this reason, such
applications are sometimes referred to as islands of automation or information silos. This lack of
communication leads to inefficiencies, wherein identical data are stored in multiple locations, or
straightforward processes are unable to be automated.

Enterprise application integration is the process of linking such applications within a single organization
together in order to simplify and automate business processes to the greatest extent possible, while at the same
time avoiding having to make sweeping changes to the existing applications or data structures. Applications
can be linked either at the back-end via APIs or (seldomly) the front-end

E-business solutions.

E-business solutions support business and government processes that are automated and integrated using
information and communication technology (ICT). This involves the electronic exchange of documents and
data that are transported to and processed by disparate systems as part of a supply chain.

(8) E-commerce Challenges: Problems and Challenges of eCommerce Industry

1. Lack of Verification Measures


Once a customer signs up in an e-commerce portal, the portal is unaware about the customer except the
information he/she entered. the credibility of the customer is questionable. This heightens when the
customer issues a Cash-on-Delivery (COD) purchase because the business is unsure whether the
customer is genuine or not. These have resulted in huge revenue losses for many e-commerce players.
2. Product Returns and Refunds
When products are returned because customers are unsatisfied with the product, it scars the business
with heavy loss on shipment and reputation. Cost of logistics have always been an issue for e-commerce
players especially for those who deliver for free.
3. Lack of Integration
Order management system, customer support system, dispatch system, order tracking system, etc are
applications that can streamline the experience of the customer across the buying journey. But if these
systems are disparate it could ruin customer experience.
4. Customer Issues Going Unnoticed
Being in an industry where customers can take their business elsewhere in a blink of an eye, customer
service goes a long way. E-commerce business receives a lot of inbound interaction with more than
75% being complaints or concerns. When these concerns go unnoticed, it compromises the standard of
quality of your business, and tarnishes your image.
5. Customer Loyalty
E-commerce industry is an industry where the cost of switching is pretty insignificant. A lot of players
have lost customers because their rivals have a better quality of customer service, or better discounts.
Knowing that 86% of clients stop doing business with a company because of poor customer service,
you need to ensure customer service is always a priority for your online business and part of your
retention strategy. Customers demand consistent and seamless experiences across all channels, and
players that refuses to deliver fail to retain customers.
(9) A service-oriented architecture (SOA) is a style of software design where services are provided to
the other components by application components, through a communication protocol over a network.
The basic principles of service-oriented architecture are independent of vendors, products and
technologies.[1] A service is a discrete unit of functionality that can be accessed remotely and acted
upon and updated independently, such as retrieving a credit card statement online.
A service has four properties according to one of many definitions of SOA:
 It logically represents a business activity with a specified outcome.
 It is self-contained.
 It is a black box for its consumers.
 It may consist of other underlying services.

Examples:

Different services can be used in conjunction to provide the functionality of a large software
[Link] far, the definition could be a definition of modular programming in the 1970s. Service-
oriented architecture is less about how to modularize an application, and more about how to compose an
application by integrating distributed, separately-maintained and deployed software components. It is
enabled by technologies and standards that make it easier for components to communicate and
cooperate over a network, especially an IP network.

(10)

E-Commerce Ethical and Legal Issues

The vastness of Internet advertising offers a solid platform for Electronic Commerce (or e-commerce)
to explode. E-Commerce has the ability to provide secure shopping transactions coupled with instant
verification and validation of credit card transactions. E-Commerce is not about the technology itself, it
is about doing business leveraging the technology.

A technological innovation is followed by frequent incorporation of ethical standards into law. New
forms of E-Commerce that enables new business practices have many advantages but also bring
numerous risks. Let’s discuss about the ethical and legal issues related to e-business.

Ethical Issues

In general, many ethical and global issues of Information Technology apply to e-business. So, what are
the issues particularly related to e-commerce? Let’s list some of the ethical issues spawned with the
growing field of e-commerce.

Web tracking

E-businesses draw information on how visitors use a site through log files. Analysis of log file means
turning log data into application service or installing software that can pluck relevant information from
files in-house. Companies track individual’s movement through tracking software and cookie analysis.
Programs such as cookies raise a batch of privacy concerns. The tracking history is stored on your PC’s
hard disk, and any time you revisit a website, the computer knows it. Many smart end users install
programs such as Cookie cutters, Spam Butcher, etc which can provide users some control over the
cookies.
The battle between computer end users and web trackers is always going on with a range of application
programs. For example, software such as Privacy Guardian, My Privacy, etc can protect user’s online
privacy by erasing browser’s cache, surfing history and cookies. To detect and remove spyware
specially designed programs like Ad-Aware are present. A data miner application, SahAgent collects
and combines Internet browsing history of users and sends it to servers. The battle goes on!

Privacy

Most Electronic Payment Systems knows the identity of the buyer. So it is necessary to protect the
identity of a buyer who uses Electronic Payment System.

A privacy issue related to the employees of company is tracking. Monitoring systems are installed in
many companies to monitor e-mail and other web activities in order to identify employees who
extensively use business hours for non-business activities. The e-commerce activities performed by a
buyer can be tracked by organizations. For example, reserving railway tickets for their personal journey
purpose can be tracked. Many employees don’t want to be under the monitoring system even while at
work.

As far as brokers and some of the company employees are concerned, E-Commerce puts them in danger
zone and results in elimination from their jobs. The manner in which employees are treated may raise
ethical issues, such as how to handle displacement and whether to offer retraining programs.

Disintermediation and Reintermediation

Intermediation is one of the most important and interesting e-commerce issue related to loss of jobs.
The services provided by intermediaries are

(i) Matching and providing information.


(ii) Value added services such as consulting.

The first type of service (matching and providing information) can be fully automated, and this service
is likely to be in e-marketplaces and portals that provide free services. The value added service requires
expertise and this can only be partially automated. The phenomenon by which Intermediaries, who
provide mainly matching and providing information services are eliminated is called Disintermediation.

The brokers who provide value added services or who manage electronic intermediation (also known as
infomediation), are not only surviving but may actually prosper, this phenomenon is called
Reintermediation.

The traditional sales channel will be negatively affected by disintermediation. The services required to
support or complement e-commerce are provided by the web as new opportunities for reintermediation.
The factors that should be considered here are the enormous number of participants, extensive
information processing, delicate negotiations, etc. They need a computer mediator to be more
predictable.

Legal Issues

Where are the headlines about consumers defrauding merchants? What about fraud e-commerce
websites? Internet fraud and its sophistication have grown even faster than the Internet itself. There is a
chance of a crime over the internet when buyers and sellers do not know each other and cannot even see
each other. During the first few years of e-commerce, the public witnessed many frauds committed over
the internet. Let’s discuss the legal issues specific to e-commerce.

Fraud on the Internet

E-commerce fraud popped out with the rapid increase in popularity of websites. It is a hot issue for both
cyber and click-and-mortar merchants. The swindlers are active mainly in the area of stocks. The small
investors are lured by the promise of false profits by the stock promoters. Auctions are also conductive
to fraud, by both sellers and buyers. The availability of e-mails and pop up ads has paved the way for
financial criminals to have access to many people. Other areas of potential fraud include phantom
business opportunities and bogus investments.

Copyright

The copyright laws protect Intellectual property in its various forms, and cannot be used freely. It is
very difficult to protect Intellectual property in E-Commerce. For example, if you buy software you
have the right to use it and not the right to distribute it. The distribution rights are with the copyright
holder. Also, copying contents from the website also violates copy right laws.

Domain Names

The competition over domain names is another legal issue. Internet addresses are known as domain
names and they appear in levels. A top level name is [Link] or [Link]. A second level name
will be [Link]/blog. Top level domain names are assigned by a central non-profit organization
which also checks for conflicts or possible infringement of trademarks. Problems arise when several
companies having similar names competing over the same domain name. The problem of domain
names was alleviated somewhat in 2001 after several upper level names were added to com.

Another issue to look out for is Cybersquatting, which refers to the practice of registering domain
names with the desire of selling it at higher prices.

Security features such as authentication, non-repudiation and escrow services can protect the sellers in
e-commerce.

One needs to be careful while doing e-commerce activities. The need to educate the public about the
ethical and legal issues related to e-commerce is highly important from a buyer as well as seller
perspective.

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