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| Group Business |
Norbert Berger
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Chen
Shih-Chang |
Contents
¦ 1.
Introduction………………………………………………3
¦ 2. Why is ISN (Internet Shopping Network) so attractive?...3
2.1 Evidence of growing
ISN:…………………………………………………...3
2.1.1. The number of commercial sites on the Web is doubling every six months.
2.1.2. By the end of 1997, there was only 82 million PCs hooked up to the Internet.
2.1.3. According to IDC, nearly 50 percent of all U.S. companies have set up sites on
the Web.
¦ 3. Comparison of
Traditional Business and ISN……………4
3.1 The advantage of ISN………………………………………………………..4
3.1.1. Convenience.
3.1.2. Low price.
3 .1.3 The advantage in
time:
3.1.4. It is easy to get
shopping information from ISN:
3.1.5. The ISN provides a
very wide shopping service:
3.1.6. Time of opening:
3.2 Reasons why ISN can not take the place of the Traditional Business……….5
3.2.1. One main leisure
activity of city inhabitants is shopping.
3.2.2. The satisfaction of
discussing the price with the retailer is very exciting for
some people.
3.2.3. It is a big
difference when you can touch, check, feel and make sure what you
have bought in a store but you
cannot through ISN.
3.2.4. The most discussed
problem in ISN is credit cards use.
3.2.5. Internet shops do
not have an identifiable address:
¦ 4. Internet
Marketing…………………………………………7
4.1 The definition of Marketing……………………………………………………..7
4.2 The Four P’s of Marketing in Business………………………………………….7
4.2.1. Produce a solution that "meets a need" or "solves a problem.
4.2.2. Price your product, service, or idea competitively.
4.2.3. Place or distribute your product, service, or idea.
4.2.4. Promote your product, service, or idea.
¦ 5. How is Internet
marketing different from Conventional
Marketing?………………………………………………..8
¦ 6.
Conclusion-“e-commerce” will be the trend of future……8
¦ 7. Bibliography………………………………………………8
¦ 1. Introduction:
The purpose of this article is to study the difference between Internet Business processes and Traditional Business. I will divide the essay into five sections and look at the following topics: Internet Shopping Network (ISN), Comparing the Traditional Business and ISN, Internet Marketing and the difference between Internet marketing and Conventional Marketing. In the conclusion, it will be discussed whether “e-commerce” is going to be the trend of the future.
The invention of the Internet does not only make information transfer easier and faster but also provides new business opportunities. Over the Internet we can buy products from any other country without waiting for a long time. Moreover, we save money as we do not have to pay flight tickets to go abroad. It is even easier for us to use the Internet than to go to the kitchen and make a cup of coffee; because the only thing we have to do is to sit in front of a computer and to click the mouse.
¦ 2. Why is ISN (Internet Shopping Network) so attractive?
Why is Internet Shopping Network (ISN) so attractive and why do so many people take advantage of it? Although ISN is only 3 years old, it is increasing dramatically. According to a report by IDC Research, the amount of commerce conducted over the Web will skyrocket from $2.6 billion in 1996 to $220 billion in 2001. The percentage of users who will buy goods and services on the Net will also climb from 25% to 39% during the same time period (Heatherington Tom and Lori, 1998, The complete small business Internet Guide, p.25). This is why so many people join the ISN and try to build up their businesses on the Internet.
2.1 Evidence of growing ISN:
2.1.1. The number of
commercial sites on the Web is doubling every six months.
This major expansion in commercial Web sites is a result of the tremendous growth in the adoption of the Internet and World Wide Web technologies by businesses (International Data Corporation (IDC) http:// www.idcresearch.com/).
2.1.2. By the end of 1997,
there was only 82 million PCs hooked up to the Internet.
However, it will be 268 million by the year 2001 according to survey data collected by the research firm Dataquest (http://www.gartner11.gartnerWeb.com/dq/).
2.1.3. According to IDC, nearly 50 percent of all U.S. companies have set up sites on the Web.
But the National Federation of Independent Business finds that although 75 percent of small businesses use computers, only 40 percent have Web sites (National Federation of Independent business and IDC Research, 1997, http://www.cyberratlas.com/segments/site/business.html).
¦ 3. Comparison of
Traditional Business and ISN:
3.1 The advantage of ISN
3.1.1. Convenience.
In brief, over ISN, we can buy almost anything without leaving home. Although somebody might say that it is very convenient to live in big cities, imagine that you get stuck in a traffic jam, or have to pay for an expensive taxi service…etc, etc. To give another example, if you live in a sub-urban area, you even have to pay more than people who live in modern cities. However, by using ISN all you have to do is turning on the computer and clicking what you want to purchase and you will get it in a few days.
3.1.2. Low price.
The low price attracts the
clientele. The ISN can save lots of capital from
not paying the shop’s rental and staff wages. For example, a large-sized company
might need 30-50 staff members, whereas ISN just needs about 5-10 staff members and a
storage place. The ISN can provide a cheaper price than traditional businesses. Price is
an important concern in business. It is another reason why ISN can grow so fast and so
successfully (Article about Internet shopping in Taiwan, Dr. Chang Gen Der, 1997, http://www.chengte.com/shop/).
3 .1.3 The advantage in time:
Because a web site can be
changed very easily at any time, consumers can always find out the most fashionable
products from it, which is also a reason why people are interested in it.
3.1.4. It is easy to get shopping information from ISN:
Most of the big ISN web
sites all have a “searching” function that is an easy and fast way to get
information on time. If you do not like to hang around in the high street; or look for
goods from one store to another. ISN is always the best choice for you and it is very
easy.
3.1.5. The ISN
provides a very wide shopping service:
Amazon is the biggest
bookstore in the world that claims that it has billion of books and CD’s…etc,
etc. It is very hard to find another bookstore like this where you can buy almost
anything. The major advantage of Amazon bookstore is that no matter what kind of book you
order, they will try to find it for you and the price is very reasonable. ISN can provide
a very wide service and that is another reason why their consumers range from age 8-80.
3.1.6. Time of
opening:
The ISN shopping stores
open 24 hrs a day, 365 days a year. If you have enough time and good computer facilities,
not only can you avoid being bothered by the staff, but also you can find the best price
for your needs.
3.2 Reasons why ISN can
not take the place of the Traditional Business:
3.2.1. One main leisure activity of city inhabitants is shopping.
It is quite enjoyable
going into a shop, which has beautiful interior decorations and well-designed displays.
For these reasons, some people prefer to pay more money to buy better “service”
instead of staying at home and using ISN. However, the price of the goods is still the
most important concern in business. That is why there are so many people going shopping at
on-sale time and why they do not mind the crowd in the shops.
3.2.2. The satisfaction of discussing the price with the retailer is very
exciting for some people.
It is regarded as a kind
of success when someone buys the products at a cheaper price. However, it is very hard to
do this kind of negotiation face to face and they will not feel satisfied over the ISN.
3.2.3. It is a big
difference when you can touch, check, feel and make sure what you have bought in a store
but you cannot through ISN.
In order to solve this
problem, engineers are thinking of how to develop 3D-advertising services on ISN in the
near future. Another major problem of ISN is transporting. Some products might be broken
in transit and nobody is willing to take whole responsibility for it.
3.2.4. The most
discussed problem in ISN is credit cards use: Consumers have to give their personal
details (names, credit card numbers…etc, etc.) over the Internet. Sometimes it could
be very dangerous. The procedure of purchasing is when the merchant had got
consumer’s credit card information. They will check it by the bank which
issues the credit card, then decide if they are going to sell the goods to you or not.
Consumer’s details, such as address, telephone number…etc will be the evidence
in case of disputes.
A good ISN will provide a
“secure server” to protect the consumer’s rights. It is the best way to
attract consumers and companies’ brand on their server. For example, Amazon bookstore
paid 670 billion to invest for a secure system in 1997 in order to protect their
consumers’ rights (Dr. Chang Gen Der, 1997, Article about Internet shopping in
Taiwan, http://www.chengte.com/shop/).
3.2.5.Internet shops do not have an identifiable
address:
It is a serious problem of
ISN at the present time, because some Internet merchants might use this way to earn money
from innocent consumers. Indeed, it is hard to find the Internet shops’ address if
they do it on purpose. The consumers will never find the right address of the ISN shop and
in case of lost or no delivery of the goods purchased they will loose their money.
¦ 4. Internet Marketing
4.1 The definition of
Marketing
The American Marketing Association defines marketing as: "The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives."
(http://www.ama.org/mngraphics/sixtieth/eighties.htm)
4.2 The Four P’s of Marketing in Business
As a business owner, you must continually develop, implement, and monitor the four P's of marketing your company. (http://www.ama.org/mngraphics/sixtieth/eighties.htm)
4.2.1. Produce a solution that "meets a need" or "solves a problem." (Develop your product, service, or idea and identify a target market.)
4.2.2. Price your product, service, or idea competitively. (Determine a price for your product, service, or idea that is acceptable to your target market.)
4.2.3. Place or distribute your product, service, or idea. (Make your product available in the right place for your target market.)
4.2.4. Promote your product, service, or idea. (Promotion includes making decisions about advertising, public relations, sales, and sales promotion.)
¦ 5. How is Internet
marketing different from Conventional
Marketing?
The introduction of Internet marketing is the dawning of a new age in marketing communication that provides companies with a powerful tool to reach new audiences. The most exciting aspect of this technology is that it provides the ability to target select groups of potential buyers. Once you identify your target market, you can develop and continue on-going, inexpensive, interactive communication with that group. Most conventional marketing is essentially one-way communication to a relatively large audience with varied buying interests. Unlike Internet marketing, conventional marketing does not foster the opportunity to develop an intimate relationship with your customers. (Tom and Lori Heatherington, 1998, The complete small business Internet Guide, p56)
¦ 6.
Conclusion-“e-commerce” will be the trend of future
To conclude, I think that “e-commerce” has become a reality and it is a good tool for businesses in the future. According to the report by Activemedia, "The 1997 Real Numbers Behind 'Net Profits," "...overall movement to online commerce may well swell Net-generated revenues to $1 trillion by the year 2001." They keep saying that "Small to medium-sized companies building strong personal relationships continue to nibble away at the shares formerly maintained by large corporation marketing advantages" (http://www.activmedia.com/).
Imagine your store open to potentially millions of shoppers, 24 hours each day, 365 days per year without having employees, parking problems. Imagine updating or redecorating your electronic catalogue with a few keystrokes with no additional printing or distribution charges. Imagine being able to deliver personalized sales suggestions customized to the individual buying habits of your customers. Imagine receiving all of your orders complete with correct calculations for state and local taxes and shipping charges. Imagine operating a global business from a desktop computer on your kitchen table. Do you not think that “e-commerce” will be a major tool for business growth and changing consumers’ buying habits?
¦ 7. Bibliography:
1. Tom and Lori Heatherington, 1998, The complete small business Internet Guide,
2. International Data Corporation (IDC) http:// www.idcresearch.com/
3. National Federation of Independent business and IDC Research, 1997, http://www.cyberratlas.com/segments/site/business.html.
4. Dr. Chang Gen Der, 1997, Article about Internet shopping in Taiwan, http://www.chengte.com/shop/