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Sri Vidya Mandir College- Katteri
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UNIT -4
Explain in detail about the electronic market place of buyers and sellers.
What do you mean by Market?
• Market means a place where goods are bought or sold.
• Market includes both place and region in which buyers and sellers are in free competition with one another.
• An electronic market is a special type of electronic commerce, in general serve as a middleman between
buyers and sellers.
What are the types of markets?
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Every market transaction consists of searching, coordination, negotiation, and settlement.
Search reflects efforts of a buyer or seller to search for candidates to have transactions.
There are two main classification of market
1. Stable market
2. Dynamic market
Define stable markets?
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In stable markets, transactions occur only when traders buying and selling intentions, which are fixed.
Computer serves Electronic mails, for instance, adopt posted- off pricing.
Define dynamic markets?
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In dynamic markets, market participants may be forced to change their goals or utilities as market conditions
evolve.
The key difference between dynamic markets and stable markets is the importance of immediate
transaction.
MIDDLE MAN ROLES IN ELECTRONIC MARKETS.
What is the role of middle man in e- marketing?
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Middle man is otherwise known as brokers or intermediate person who involves in e- marketing.
The intermediate person communicates between the customer and organization and works for the well fare
of the company.
Computer based market systems also provides an access to virtually anyone at any time.
Therefore, they easily became around- the- clock global markets.
II BBA CA
E-Business
Unit-V
Sri Vidya Mandir College- Katteri
2
NEGOTIATION STRATEGY
Define negotiation strategy?
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The negotiation strategy has the following characteristics.
• Close tracking of inventoried assets.
• Medium to high dollar value.
• Technical product specifications.
• Budget constraints.
• Hidden inventories difficult to trace.
Define order matching?
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This is used to match the inventory orders that are purchased by our company or organization.
The order matching checks weather the received order is matched with the order which is to be delivered.
The order matching is the following characteristic.
• Critical to plan and maintain.
• Off site distributed regions.
• Careful tracking needed.
• Significant checking of bills.
• Critical to factory and production operation.
What is home searching?
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Home searching is used to search the product in any home page or internet websites.
It has the following characteristic.
• Secure personal login.
• Browse authorized supplier catalogs.
• Create requisition/order.
• Submit requisition/order.
What is market signaling?
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Data collection: it is used to collect the data useful for market signaling.
Market analysis: analyze the market weather the business is profitable for the organization or not.
Supplier management decisions: the supplier management can use a verity of criteria to analyze the
transaction data in useful ways and for making informed decisions.
Configuration of spending controls: analytical tools, and decisions support capability is useful the
procurement professionals with in a firm.
Continuous feedback: continuous feedback should be get from customer to improve the organization
profits.
Explain the steps involved in buyer/seller offer rating?
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The buyers and sellers will quote the rating to their products in e- marketing.
So the customer can visit the website and ordered goods easily.
Customers require the companies with which they do business to continuously improve in following areas.
Speed of service: service can never be too fast a premium is placed on instant, accurate, and
adoptive responsiveness to customer needs.
Convenience: customer value the convenience of one- stop shopping. They provide better
integration of the order entry, fulfillment and delivery cycles.
Personalization: customers wants firms to treat them as individuals. Todays technologies give
companies the ability to provide precisely what customer want, made to their specifications.
Price: companies that offer unique services for a reasonable price are flourishing.
II BBA CA
E-Business
Unit-V
Sri Vidya Mandir College- Katteri
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NTERACTIVE MESSAGING IN NEGOTIATION
TREND CATEGORY
1.customer
2.e- services
3.organisational
4.employee
5.enterprise
technology
6.general technology
TREND ADVANTAGES
• Faster service
• Self service
• More product choices
• Integrated solutions
• Integrated sales and services
• Seamless support
• Flexible fulfillment and convenient service delivery
• Increased process visibility
• Outsourcing
• Contract manufacturing
• Virtual distribution
• Hiring the best and brightest
• Keeping talented employee
• Integrated enterprise applications
• Multi- channel integration
• Middleware
• Wireless web applications
• Hand- held computing
• Infrastructure
• Applications service provider
Explain in detail about E- Marketing?
E-marketing chain value:
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E- marketing increase the maintenance of strong relationship between the company and the customer.
Online marketing:
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Online marketing means using the power of online works, computer communications and digital interactive
media to reach our marketing objectives.
There are three marketing segments
• Cyber buyers: there are professionals who spend a good deal of time online. Mainly at their places of
business.
• Cyber consumers: these are the home computer users wired up to commercial online services and
internet.
• Cyber surfers: they use only technology to expand their horizons, challenge their abilities and for fun.
II BBA CA
E-Business
Unit-V
Sri Vidya Mandir College- Katteri
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FUNCTIONALITIES OF ELECTRONIC MARKETPLACES
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As the number of customers, products, vendors and information increases, it becomes uneconomical or
even impossible to match customers and products and consider all relevant information.
The following are the important functionalities of electronic market places
1. Need identifications
2. Product brokering
3. Merchant brokering
4. Negotiation
5. Purchase and delivery
6. Target markets
7. Marketing strategies
8. Brand- leveraging strategies
9. Affiliated – marketing strategy
10. Viral marketing strategies
Need identifications:
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Agents can assist the buyer with need identification by providing product information and motivation.
Product brokering:
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once a need is established customers search for a products that will satisfy this need
Merchant brokering:
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once a customer knows what product he or she wants, the customer needs to find where to buy it.
Negotiation:
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The concept of market implies negotiation, mostly about prices. In B2B transactions, negotiation is very
common.
II BBA CA
E-Business
Unit-V
Sri Vidya Mandir College- Katteri
5
Purchase and delivery:
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Agents are used extensively during the actual purchase, including arranging payments & delivery with the
customer.
Target markets
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Marketing strategy involves identifying and analyzing a target market and creating a marketing atmosphere
that satisfies the individuals in that market.
Marketing strategies:
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The practice of sending email messages to people who have requested information on a particular topic or
about a specific product is part of a marketing strategy called permission marketing.
Brand- leveraging strategies:
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Rational branding is not the only way to build brands on the web.
Affiliated – marketing strategy:
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In affiliated marketing one firm website includes descriptions, reviews, ratings or other information about a
product that is linked to another firms site thet offers the item for sale.
Viral marketing strategies:
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Viral marketing relies on existing customer to tell other persons – the company prospective customer about
the products or services they have enjoyed using.
Define aggregation?
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Aggregation is creating a new business models.
Six steps that follow with systematic logic.
• What is the new industry structure? Its a configuration that challenges traditional definitions of
value.
• What does the digital customer wants? Customer want value defined in terms of the whole
customer experience and accompanying expectations.
• What are the new economics? How to convert value creations into revenue? How do you engineer
the end- to- end value stream?
Define market matching?
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Market matching is used to match the current trend of market with the trend before.
The following of the four important things to match the current market trend.
• Convenience: these trends directly impact consumer self- service and ease of use.
• Effectiveness: the trends directly impacts the relationship between the enterprises customer and its
environment.
• Efficiency: these trends impact the internal structure and operating activities of the enterprises.
• Integration: these trends push for one- stop- shopping consolidation.
Explain about product brokering?
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The product brokering is mainly used to sell our products in e- marketing with the help of software agents.
The following are the characteristic of product brokering.
• Effective business design.
• Be customer focused.
• Value creation is a continuous process.
• Transform business processes into digital form.
• Decentralized management but centralized coordination.
Define supply chain management?
II BBA CA
E-Business
Unit-V
Sri Vidya Mandir College- Katteri
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6
SCM is a set of processes which helps organisations develop and deliver products.
SCM is defined as the systematic, strategic co- ordination of the traditional business functions within a
particular company and across business within the supply chain.
Discuss in detail about supply chain management?
• SCM can be grouped into three levels of activities. They are
• Strategic groups
• Tactical
• Operational
Strategic level:
• Strategic network optimization including the number, location and size of warehouses, distribution centers
and facilities.
• Strategic partnership with suppliers, distributors and customers creating communication channels for critical
information and operational improvements such a cross docking, direct shipping and third party logistics.
Tactical:
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Sourcing contracts and other purchasing decisions .
Production decisions include contracting, scheduling and planning process definition.
Inventory decisions including quantity, location and quality of inventory.
Operational:
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Daily production and distribution planning include all nodes in the supply chain.
Production schedule for each manufacturing facility in the supply chain.
What are the tasks can be performed in SCM?
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Common interest
Openness
Mutual help
Clear expectations
Leadership
Co-operations not punishments
Trust
Benefit sharing
Technology
Common interest:
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Both parties have a stake in the outcome of the collaboration to ensure on going commitment.
Openness:
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Collaboration partners must openly discuss their practices and processes
Sometimes this means sharing information that is traditionally considered propriety.
Mutual help:
• When addressing supply chain problems or opportunities , look for cross company solutions.
Clear expectations:
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All parties needs to understand what is expected of them and the others in the relationship.
Leadership:
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Without a champion, collaboration will never be accomplished.
II BBA CA
E-Business
Unit-V
Sri Vidya Mandir College- Katteri
7
Co-operations not punishments:
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Focus on jointly solving problems not looking for someone blame.
Trust:
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This must be evident throughout both organizations - at very management level and functional area.
Benefit sharing:
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In a truly collaborative relationship, partners share the pain the risks and the losses.
Technology:
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Advanced technology is essential to enabling a collaborative relationship across the supply chain.
Benefits of supply chain management:
If all the enablers can be put in the place and the impediments removed, the greatest benefit that can be expected in
financial.
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Financial benefits.
Reduced inventory
Improved customer service.
More efficient use of human resources and
Better delivery through reduced cycle times.
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Non- financial benefits.
Stronger focus on core competencies
Enhanced public image
Greater trust and interdependence
Increased sharing of information, ideas and technology
Improved share holders value and
Competitive advantage.
II BBA CA
E-Business
Unit-V
Sri Vidya Mandir College- Katteri
8
ONLINE CATALOGUE:
What is online catalogue?
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Internet based presentation of a set of items available for purchase, including description , price and
ordering information.
It is digital brochure of information on products with images and salient features mentioned.
It is also called cyber catalogue, electronic catalogue and web catalog.
An electronic catalogue is an online publications.
The main aims of e- catalogues are to advertise, to sell, to distribute, and to draw the customers attention.
They are the digital representation of a company and a powerful e- commerce tool.
ADVANTAGES:
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E-catalogues bring many advantages to different companies.
1. Low costs
2. Market expansion
3. Interaction
4. Information for customers
5. Regular update
1. Low costs:
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Unlike conventional catalogues, these e-catalogues allow to save money, since no need to spend on
paper and printing
For this reason they are perfect for small and medium sized companies
2. Market expansion
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People around the world will be able to gain access to online catalogues any time
By using these catalogues users will be to search for products and services ,place orders make payments by
credit cards or payments portals and clears up their doubts
II BBA CA
E-Business
Unit-V
Sri Vidya Mandir College- Katteri
9
3. Interaction
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Unlike prints catalogues digital catalogues allow directs relationships between the company and its clients
With an e-catalogue a company can informs about its products and services to its clients .who will contacts
the company`s representatives to clears up their doubts to make comments or suggestions
4. Information for customers
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With this catalogues each company will be able to provide information on the products and services it
offers and links to other websites for customers to get complementary information
5. Regular update
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E-catalogues can be update from the server in a regular. fast and easy way the changes made are
immediately available for customer to see catalogues show the latest about new products. Prise , points
of sale new technology incorporations.etc.
II BBA CA
E-Business
Unit-V