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Unit 2: Reaching Your Market
Chapter 9
Information Technology
and Social Media
Learning Goals
 Explain the difference between a dot-com
and a bricks-and-mortar business
 Describe how B2B businesses use the
Internet
 List the components of successful e-tailing
 Describe e-marketing and the role of social
media in e-marketing
 Explain the challenges to e-tailing
 Outline eight advantages and seven
disadvantages of e-tailing
Day 1 – Response Journal
You have the choice to either shop online or
shop at stores for the rest of your life. You
cannot do both.
Which would you choose? Why?
***Save As Nov 19 in your Response
Journal Folder***
The Internet
 Imagine that you are a teenager living in the
year 1990
 You would not email your friends
 You would not buy anything over the Internet
 You would not do research for homework
assignments online
 Why not?
 At that time, the World Wide Web didn’t exist and
the Internet wasn’t available to the general public
The Internet
 Today however, the Internet and the World Wide
Web are available to the general public, all around
the world
 All you need is an Internet enabled device
 The Internet and the World Wide Web are also
changing how companies do business
E-Commerce (short for electronic commerce) is
 _____________
any business activities conducted over the Internet
 These activities can includes buying, selling,
promoting, product and competitor research, and
customer service
Internet as Place
 E-commerce is possible because of the
Internet and the World Wide Web
 The ____________
is a computer based
Internet
communications network
 Developed in the 1950s as a research and military
tool
 The ______________________
(Web) is the
World Wide Web
network of information sources that are
available over the Internet
 Developed in 1993
 The Web is part of the Internet
E-Commerce Basics
 When someone says they are ____________,
Online
they are connected and/or available to
communicate using the Internet
 Info on the Web is organized into
_____________
Web Pages
 A web page is the smallest unit of info that can be
accessed on the Web
 One or more web pages from the same source, that
are connected by hyperlinks, make up a
____________
Website
 The first page of a website is called a ___________
Homepage
E-Commerce Basics
 _____________
Hyperlinks are used to link the pages of a website
together
 They make the website easy to navigate
 A _______________
Web Address is how a website is identified and
located on the Web
 Using a unique set of numbers and symbols
 The www at the beginning of a web address indicates that
it is on the World Wide Web
 If you do not know the specific web address you are
looking for, you can find it using a ______________
Search Engine
 A search engine is software that searches the Web to find
information on your topic
E-Commerce Basics
 The format of a web address can tell you
what kind of organization it is
Some Types of Web Addresses
Type
Code
Commercial organization (business)
.com or .ca
Colleges and universities
.edu
Government institutions and agencies
.gc
Organizations not included above, such as not-for-profit
organizations
.org
Marketing on the Internet
Two types of businesses use the Internet:
1. Dot-Coms
 A business that conducts all of its sales online and
has no retail stores
 E.g. Amazon
2. Bricks and Mortar
 Sells products and serves customers mainly from
a building or store
 Also called a traditional business
 May do some sales and promotion online
 E.g. Canadian Tire
B2B on the Internet
 Business-to-Business (B2B) companies were the
first to use the Internet extensively
 For example, many businesses use
__________________________
Electronic Data Interchange (EDI); were
businesses exchange information via computer
 Consists of info that would otherwise have been sent as
paper documents
 EDI messages typically include purchase orders, shipping
notices, invoices, etc.
 When businesses use computers to store and
transmit information, they are using IT, which stands
for ______________________
Information Technology
B2B on the Internet
B2B companies use the Internet to;
 Communicate and exchange documents
 Manage inventory, using EDI
 Research and purchase items
 Keep in touch with their sales
representatives
B2B on the Internet
Sales reps use computers or tablets to
 Check product availability
 Place orders
 Track orders
Shopping on the Internet
 The selling of products to consumers over
the Internet is called ________________
E-tailing
 From the words Electronic Retailing
 Also called E-commerce (electronic
commerce)
 Companies that sell to consumers online
are often called E-tailers
 Now a days, consumers can buy almost
anything on the Internet
Successful E-tailing
In order for e-tailing to be successful, customers
must be able to;
 Find the website
 Look at products
 Select products
 Be engaged
 Get help
 Pay for products
 Receive a receipt
 Return merchandise
Day 1 – Assigned Work
Students please complete the following;
 K & U Question #2 on page 132
 Thinking Question #4 on page 133
 Application Question #2 on page 133
*** Save As Ch 9 Day 1 in your Unit 2 folder ***
Day 3 – Response Journal
What can e-tailers do/provide in an attempt to
encourage consumers to make more
purchases online?
***Save As Nov 23 in your Response
Journal Folder***
Challenges to E-tailing
 When retailers began using the Internet in
the mid 1990’s, they used their websites
more for promotion than selling
 A number of concerns discouraged
consumers from actually buying products
over the Internet
 Many of those concerns have been resolved
for some concerns, while others are still
reluctant
Challenges to E-tailing
These challenges include the following;
 Security
 Privacy
 Complaints
 Website effectiveness
 Slow connections
 Preference for traditional stores
Challenges to E-tailing: Security
 Customers worry that their personal information or
identity will be stolen
 Typically, when a person logs onto the Internet and
visits a website, any info they exchange can be seen
by anyone on the Internet
 This might happen with a ________________________;
an
Nonsecure Connection
Internet connection over which anyone can see the info
exchanged
 To address this concern, Internet providers and retailers
developed a process called ______________;
a process that
Encryption
converts data into a form that can only be read by a person with
an authorized code
 An internet connection that uses encryption is called a
_________________________
Secure Connection
Challenges to E-tailing: Security
 When you are using a secure connection, a small
icon of a _______________
appears on the web
Closed Lock
page
 This guarantees customers that their personal info is
safe
 Secure websites are necessary so customers will be
willing to;
 Give personal information
 Make payments
Challenges to E-tailing: Privacy
 Many consumers are concern about how their
personal information might be used by e-tailers
 When you visit a website, technology can keep
records of your every click and every purchase
 Many people are uneasy about a company having
this type of info about them
 So in response, many e-tailers have developed a
Privacy Policy
___________________
Banana Republic Website
Challenges to E-tailing:
Complaints
 If customers are unhappy with their
purchase or the company itself, they must be
able to file a complaint
 Many consumers feel this is more
challenging online
 In response, most e-tailers display a
__________________
icon that lets
Contact Us
customers connect with the Customer
service department
Challenges to E-tailing: Website
Effectiveness
 There are many components to website
effectiveness, but the biggest problem is often
______________________
Difficult Navigation
 E-tailers must make it easy to view products, select,
and purchase them
 More than half of all online shoppers leave a
website without making an intended purchase
 The reason is usually “I didn’t understand what to do next”
 Companies should strive to make the online
shopping experience pleasant and unique
 Provide added benefits
• E.g. special pricing, more selection, etc.
Challenges to E-tailing: Slow
Connections
 Slow or interrupted connections interfere
with the online shopping experience
 If the website loads slowly, customer get
impatient
 If the Internet connection breaks while
making a complex purchase, the customer
get frustrated
 The availability of high speed Internet has
drastically reduced this problem
Challenges to E-tailing:
Traditional Stores
 Some customers just prefer shopping where
they can see and handle the products
 Many customers will research products
online, but make the actual purchase at a
bricks-and-mortar store
Future of E-tailing
 Internet retailing has had a large impact on
sales and marketing
 Almost every business now has a website
 Businesses can offer customer service and
information online, even if they don’t sell
 E-commerce has created jobs, lowered prices and
lowered business expenses
 The volume of purchases consumers make online
is growing each year
Day 3 – Assigned Work
Students please complete the following;
 E-tailing: Advantages & Disadvantages
Worksheet
 Hard copy provided