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Second cycle of Training of Trainers “Internet Marketing & e-commerce strategies (B2B & B2C)” By DIMITRIOU KYRIAKOS, SNKE Tashkent, Uzbekistan 04.11. 2014 This project is financed by the European Union 1 The project is implemented by a European Profiles S.A. led consortium The objectives of the training Main objectives are: • Define the terms of internet marketing and e-commerce and get familiar with abbreviations (b2b, b2c, b2g etc) • Get to know strategies in e-marketing • Familiarize with e-commerce classifications • Understand the situation of ecommerce globally This project is financed by the European Union 2 The project is implemented by a European Profiles S.A. led consortium Have you ever? • Have you ever receive a news letter by email? • Have you ever click on the left or right banner in Facebook (if you have an account)? • Have you ever click on an advertisement while searching the web? • Have you ever receive a spam e-mail? This project is financed by the European Union 3 The project is implemented by a European Profiles S.A. led consortium Internet marketing Internet marketing, or online marketing, refers to advertising and marketing efforts that use the Web and email to drive direct sales via electronic commerce, in addition to sales leads from Web sites or emails. Internet marketing and online advertising efforts are typically used in conjunction with traditional types of advertising like radio, television, newspapers and magazines. This project is financed by the European Union 4 The project is implemented by a European Profiles S.A. led consortium Internet marketing The internet became one of the primary sources of information for people around the world. Users prefer doing a quick online search for anything they want, instead of turning the pages of directories and newspapers- even books. Apparently, the web can be used as a powerful internet marketing tool in a number of different ways to promote online businesses and reach target audience across the globe. There are several types of internet marketing strategies used by online marketers and many of them are simple and effective. This project is financed by the European Union 5 The project is implemented by a European Profiles S.A. led consortium internet marketing strategies Types (strategies): Content marketing This project is financed by the European Union Social media marketing Search engine marketing E-mail marketing 6 The project is implemented by a European Profiles S.A. led consortium Content marketing Content marketing is a hot term these days, but it’s not always well understood – because it’s a very broad term. “Content marketing is any marketing format that involves the creation and sharing of media and publishing content in order to acquire customers.” The content marketing most people are more familiar with, is a business blog with regular text posts. This project is financed by the European Union 7 The project is implemented by a European Profiles S.A. led consortium Content marketing But content marketing besides a business block can take many other forms and formats, including: videos, photos, PowerPoint presentations, infographics, white papers, case studies, webinars (Web-based seminar), podcasts and more. This project is financed by the European Union 8 The project is implemented by a European Profiles S.A. led consortium Social media marketing Social media marketing refers to the process of gaining website traffic or attention through social media sites. Typically it looks like this: businesses establish a presence on social networks like Facebook, Twitter, LinkedIn and Google+ in order to engage their online audience, build a following, and drive traffic back to their website and/or blog. This project is financed by the European Union 9 The project is implemented by a European Profiles S.A. led consortium Social media marketing The best thing about social media marketing is that it does not require heavy investment by the company, because making online company profiles on social networking sites is absolutely free. Having your business on social networking sites is an easy and simplest way to communicate and share your products with your target audience. This project is financed by the European Union 10 The project is implemented by a European Profiles S.A. led consortium Search engine marketing There are two main forms of search engine marketing (SEM): PPC, which stands for Pay Per Click and SEO, which stands for Search Engine Optimization. When you do a Google search, you see results based on both PPC and SEO. Typically at the top of the search results page and along the right side of the page, you see sponsored ads. This project is financed by the European Union 11 The project is implemented by a European Profiles S.A. led consortium Pay Per Click Businesses have used Google AdWords program to bid on this search engine placement and will pay money to Google for each ad that gets clicked on, which is why it’s called Pay Per Click (PPC) advertising. All the other search results in the middle of the page are considered “organic” or unpaid results based on Google’s perception of how relevant those results are for the search. SEO techniques can make it more likely that Google ranks your site higher in these organic search results. This project is financed by the European Union 12 The project is implemented by a European Profiles S.A. led consortium E-mail marketing Because it’s been introduced for such a long time, e-mail marketing doesn’t have the humming associated with the marketing techniques above. But it’s been around such a long time because it works. Email marketing can include customer newsletters, product offers, coupons, or more informational updates. Regardless of what type or types of email marketing a firm want to do, having an email marketing platform can streamline and simplify the efforts, and help track to success. This project is financed by the European Union 13 The project is implemented by a European Profiles S.A. led consortium What is e-commerce? Definition: E-commerce (electronic commerce) is the buying and selling of goods and services, by transmitting of funds or data, over an electronic network, primarily the Internet. http://dictionary.cambridge.org Business conducted through the use of electronic appliances (whether or not using the internet) without the exchange of paper-based documents. http://www.businessdictionary.com/definition This project is financed by the European Union 14 The project is implemented by a European Profiles S.A. led consortium Classifying e-commerce There are a lot of classifications in e-commerce depending on various parameters. The most common are based on: Nature of parts that are involved This project is financed by the European Union Types of goods that are offered 15 The project is implemented by a European Profiles S.A. led consortium Based on the parts The two most common participants in ecommerce are businesses and consumers. Based on this we can come up with 2 primary types (most common) and 2 as a second level types. The most common types are going to be defined first This project is financed by the European Union 16 The project is implemented by a European Profiles S.A. led consortium B2B major type • Business to Business Ecommerce (B2B Ecommerce) In this type of ecommerce, both participants are businesses. As a result, the volume and value of B2B ecommerce can be huge. An example of business to business ecommerce could be … Brainstorming… This project is financed by the European Union 17 The project is implemented by a European Profiles S.A. led consortium B2C major type • Business to Consumer Ecommerce (B2C Ecommerce) When we hear the term ecommerce, most people think of B2C ecommerce. That is why a name like Amazon.com pops up in most discussions about ecommerce. Elimination of the need for physical stores is the biggest rationale for business to consumer ecommerce. But the complexity and cost of logistics can be a barrier to B2C ecommerce unlimited growth. This project is financed by the European Union 18 The project is implemented by a European Profiles S.A. led consortium C2B • Consumer to Business Ecommerce (C2B Ecommerce) On the face of it, C2B ecommerce seems lop-sided. But online commerce has empowered consumers to originate requirements that businesses fulfill. An example of this could be a job board where a consumer places her requirements and multiple companies bid for winning the requirement. Another example would be a consumer posting his requirements of a holiday package, and various tour operators making offers. This project is financed by the European Union 19 The project is implemented by a European Profiles S.A. led consortium C2C Consumer to Consumer Ecommerce (C2C Ecommerce) The moment you think of C2C ecommerce eBay.com comes to mind. That is because it is the most popular platform that enables consumers to sell to other consumers. Since eBay.com is a business, this form of ecommerce could also be called C2B2C ecommerce (consumer to business to consumer ecommerce). This project is financed by the European Union 20 The project is implemented by a European Profiles S.A. led consortium Minor types • Employees can be regarded as a special type of consumer. That said a new type of ecommerce is B2E (Business to Employee ecommerce). • If we consider Government to be separate entity, as also Citizens, we can come up with many more types of ecommerce: B2G (Business to Government), G2B (Government to Business), G2E (Government to Employee), G2G (Government to Government), G2C (Government to Citizen), C2G (Citizen to Government). This project is financed by the European Union 21 The project is implemented by a European Profiles S.A. led consortium Based on goods Classifying Ecommerce Business Based on Type of Goods Sold: • Physical goods, e.g., books, gadgets, furniture, appliances, and so on • Digital goods, e.g., software, e-books, music, text, images, video and more • Services, e.g., tickets, insurance, accommodation, car rental and... This project is financed by the European Union 22 The project is implemented by a European Profiles S.A. led consortium Classification reason The reason such classification is important is that it gives the analyst an insight into the business model and financial model of the business. For instance, the logistics of delivering the physical goods can be a huge challenge for some businesses. Sellers of digital goods do not face that problem. When it comes to selling tickets, there are many parameters that need to be evaluated in real time, e.g., in the case of air tickets: availability, location of seats, meal preferences, refundable vs. non refundable tickets, and much more. This project is financed by the European Union 23 The project is implemented by a European Profiles S.A. led consortium E-commerce in Europe (b2c) • 816 million people live in Europe • 565 million people use the Internet • 264 million people are e-shoppers This project is financed by the European Union 100% 69% 32% 24 The project is implemented by a European Profiles S.A. led consortium Impact Impact of e-commerce in European economy 2 million new jobs This project is financed by the European Union 645.250 Active websites 3,7 billion parcels 25 The project is implemented by a European Profiles S.A. led consortium TOP 10 (2013) Top 10 e-commerce countries in turnover (EUR billion) • USA € 315.4 • China € 247.3* • UK € 107.1 • Japan € 81.3 • Germany € 63.4 • France € 51.1 • Australia € 26.9 This project is financed by the European Union • Canada € 18.0 • Russia € 15.5 • S. Korea € 15.2 * B2C & C2C goods & services, excluding insurances Source: (http://www.adigital.org/sites/ default/files/studies/european -b2c-ecommerce-report2014.pdf) 26 The project is implemented by a European Profiles S.A. led consortium Total B2C e-sales 2013 of goods and services Asia-Pacific € 406.1 bn +16.7% North America Europe Latin America € 333.5 bn € 363.1 bn € 37.9 bn +06.0% +16.3% +24.6% Africa MENA Others € 2.3 bn € 11.9 bn € 18.7 bn +11.9% +32.6% +10.8% Global €1,173.5 bn +13.6% This project is financed by the European Union 27 The project is implemented by a European Profiles S.A. led consortium en mundo (in the world) • Globally the average spending per eshopper per year was € 857 (2013) • All over the world 2,668 million people use the Internet • Nearly half of them (1,181 million) use eshopping at least once per year • The estimation is that the number will be double within 5 years This project is financed by the European Union 28 The project is implemented by a European Profiles S.A. led consortium E-commerce grows day by day Total retail sales in the US topped $4.53 trillion in 2013, and e-commerce accounted for a significant portion of that growth, up 16.9% in 2013—or nearly $40 billion— according to new figures from eMarketer. (http://www.emarketer.com/Article/Total-USRetail-Sales-Top-3645-Trillion-2013Outpace-GDP-Growth/1010756) Not universal data available This project is financed by the European Union 29 The project is implemented by a European Profiles S.A. led consortium In US • The Census Bureau of the US Department of Commerce announced that the estimate of U.S. retail e-commerce sales for the 2nd quarter of 2014, was $75.0 billion, an increase of 4.9% from the 1st quarter of 2014. The 2nd quarter ecommerce estimate increased 15.7 % from the 2nd quarter of 2013 while total retail sales increased 4.4 % in the same period. Ecommerce sales in the second quarter of 2014 accounted for 6.4 %of total sales. This project is financed by the European Union 30 The project is implemented by a European Profiles S.A. led consortium Not including traveling This project is financed by the European Union 31 The project is implemented by a European Profiles S.A. led consortium E-Commerce Strategy key issues Mission Engagement STRATEGY Stake holdrs This project is financed by the European Union Strategy Technology 32 The project is implemented by a European Profiles S.A. led consortium E-Commerce Strategy • Mission - what business is going to do • Strategy - how will you go about making the business a success • Technology - the technology to support the business • Stakeholders - identify the partners that will help move the business forward • Engagement - get moving then review and improve as you go This project is financed by the European Union 33 The project is implemented by a European Profiles S.A. led consortium Core Tasks • Make sure you know the job and the market • Multi-channels to market to improve results • Integrate the shopping experience • Easy-to-use purchase process • Consider localisation requirements currencies & languages • Consider customer relationship management and personalisation • Mobile and tablets This project is financed by the European Union 34 The project is implemented by a European Profiles S.A. led consortium Core Tasks • Make sure that you select a scalable platform or solution • Make sure you have the right team • Marketing Campaigns and requirements • Integrate to external systems, suppliers or 3PL (third party logistics) • Prepare a social media plan • Prepare a mobile commerce plan • Prepare a content management plan This project is financed by the European Union 35 The project is implemented by a European Profiles S.A. led consortium and • Consider how you will deal with – Content – Pricing & inventory – Logistics and shipping – Service & support – Payment & refund/returns methods – Security & PCI Compliance {Payment card industry (PCI) compliance} This project is financed by the European Union 36 The project is implemented by a European Profiles S.A. led consortium PCI Data Security Standard (PCI DSS) From the world's largest corporations to small Internet stores, compliance with the PCI Data Security Standard (PCI DSS) is vital for all merchants who accept credit cards, online or offline, because nothing is more important than keeping customer’s payment card data secure. The size of the business will determine the specific compliance requirements that must be met. This project is financed by the European Union 37 The project is implemented by a European Profiles S.A. led consortium PCI compliance Payment card industry (PCI) compliance is adherence to a set of specific security standards that were developed to protect card information during and after a financial transaction. PCI compliance is required by all card brands. There are six main requirements for PCI compliance. The vendor must: This project is financed by the European Union 38 The project is implemented by a European Profiles S.A. led consortium Requirements 1. Build and maintain a secure network - Install and maintain a firewall configuration to protect cardholder data. - Not use vendor-supplied defaults for system passwords and other security parameters. 2. Protect cardholder data - Protect stored cardholder data. - Encrypt transmission of cardholder data across open, public networks. This project is financed by the European Union 39 The project is implemented by a European Profiles S.A. led consortium Requirements/2 3. Maintain a vulnerability management program - Use and regularly update anti-virus software. - Develop and maintain secure systems and applications. 4. Implement strong access control measures - Restrict access to cardholder data by business need-to-know. - Assign a unique ID to each person with computer access. - Restrict physical access to cardholder data. This project is financed by the European Union 40 The project is implemented by a European Profiles S.A. led consortium Requirements/3 5. Regularly monitor and test networks - Track and monitor all access to network resources and cardholder data. - Regularly test security systems and processes. 6. Maintain an information security policy - Maintain a policy that addresses information security This project is financed by the European Union 41 The project is implemented by a European Profiles S.A. led consortium Summary Are there additional questions? Will you help me to summarize our training action of the day? This project is financed by the European Union 42 The project is implemented by a European Profiles S.A. led consortium Спасибо Thank you for your attention Additional information will be found in the training material This project is financed by the European Union 43 The project is implemented by a European Profiles S.A. led consortium