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Internet marketing based on Electronic Commerce

Conference Paper · July 2011

DOI: 10.1109/CSAE.2011.5952607 · Source: IEEE Xplore

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 Internet Marketing based on Electronic Commerce

Li-Fu Hsu
Dept. of Information Management
Hwh Hsia Institute of Technology
Taipei, Taiwan
Lhhsu@cc.hwh.edu.tw

Abstract—Electronic Commerce (E-Commerce or EC) is market was estimated at $200-300 billion, but is predicted to
possibly the most promising application of information rise to $3000 billion, by 2010.
technology witnessed in recent years. E-Commerce has been Many commercial web sites have catalogues and online
defined in several ways depending on the context and research transactions, but EC is much more than these. It includes
objective. In this study, We proposed a research model that everything from sourcing to settlement and all the underlie
suggested five factors in internet marketing: keyword, internet trading.
auction, e-mail, Blog and advertising marketing. Inspired by Internet marketing is the integral part of E-Commerce,
the technology acceptance model and other relevant research and E-Commerce includes Internet marketing. Internet
in the area, we also identified four factors that influence
marketing will be the entry point of small and medium
electronic commerce adoption: organizational readiness, price,
enterprises to carry to the E-Commerce when the overall
evaluate, and perceived usefulness. To validate the research
model, we collected data from top corporate website by using environment of E-Commerce is not yet very mature.
an Internet survey and show the experimental results of the Therefore, the Internet marketing is as a method of the
Internet marketing influence. enterprise management to realize commodity exchange, it is
the very important and basic internet business activities of
Keywords- E-Commerce; information technology; internet enterprise E-Commerce activities.
marketing At present, business-to-business EC seems still greater
volume than business-to-consumer EC, but it will change in
I. INTRODUCTION the future. These trends are important to global economy
and to the economy of individual countries since EC
Electronic Commerce (E-Commerce) is a popular topic contributes to economic efficiency. EC contributes to
in the mass media and in informatics area as well. Many E- economic efficiency in five important ways. They are as
Commerce initiatives have risen in a short period of time. follows: (1) extreme distances and time limitation, (2)
Those initiatives include innovative smart cards to facilitate speeding products development, (3) reducing distribution
E-Commerce, remote payments and electronic checking [1], and transaction costs, (4) public information for buyers and
online trading of stocks, bonds and related financial sellers and (5) enlarging customer choice and supplier reach
instruments, online banking, and online retailing (e-tailing). [6].
For this study, we have taken two definitions of e-commerce The organization of this paper is as follows: Section 2
[2],[3] and adapted them in a B2C context: ‘‘the process of presents the concept and relationship between EC and
buying and selling products or services using electronic data Internet marketing. Section 3 examines the five factors in
transmission via the Internet and the www.’’ E-commerce Internet marketing and developing model of E-Commerce on
provides many benefits to both sellers and buyers; e.g. Internet marketing is proposed in Section 4. Section 5 shows
Napier et al. [4] pointed out that by implementing and using the experimental results of the Internet marketing influence.
e-commerce sellers can access narrow markets segments that Finally, Section 6 presents a summary of finding and
are widely distributed while buyers can benefit by accessing conclusions.
global markets with larger product availability from a variety
of sellers at reduced costs. Improvement in product quality II. THE CONCEPT AND RELATIONSHIP BETWEEN E-
and the creation of new methods of selling existing products COMMERCE AND INTERNET MARKETING
are also benefits [5]. E-Commerce is a popular area that accomplishes
We have witnessed a revolution with the growth of the processes directly or indirectly related to buying, selling and
Internet and Internet use in twenty century, and we are trading of products, services and information via internet. E-
experiencing a second Internet revolution which is called Commerce is a new communications technology. It includes
electronic commerce. The E-Commerce applications such as all aspects of trading, including commercial market
inter-bank electronic funds via the Internet to do conversion, development, ordering, supply chain management and the
electronic payments between enterprises, as well as the transfer of money [7].
enterprises use the Internet to process all underlie trading. E- The Internet markets in Taiwan are growth rapidly,
Commerce is growing very rapidly, in 2002 the global EC especially in recent ten years. Table 1 shows the growth
ratio of B2C and C2C in recent five years. The Internet and
WWW offer the opportunity to expand EC activity in the
contract cycle to enable new suppliers to service new
customers electronically.
TABLE I. THE INETERNET MARKETS IN TAIWAN
Internet Growth rate of
Growth rate of Growth rate of
Year Marketing online
B2C C2C
(Billion) shopping
2006 1340 46.5% 36.2% 66.5%

2007 1842 37.5% 29.6% 50.0%

2008 2430 29.7% 24.9% 36.4%

2009 2950 23.5% 24.5% 22.1%

2010 3583 21.5% 23.6% 18.7% Figure 2. Relationship between E-Commerce and Internet marketing

The content of E-Commerce and Internet marketing

The WWW enables business-to- business and business-
should include three aspects: First, E-Commerce insists
to-consumer transactions. Tim Berners-Lee make the
Internet marketing. Second, Internet marketing is the core
protocols in 1990that were introduced onto the Internet in
business activities of E-Commerce. Third, the combination
1991 using Nicola Pellow’s line-model browser and the
of E-Commerce and Internet marketing will give E-
existing hypertext mark-up language (HTML) [8]. When
Commerce new contents, expand E-Commerce extension,
combined with Mosaic in 1993, the web protocols brought us
accelerate the using of Internet marketing methods, create
the WWW. The internet is key ingredient in E-Commerce as
integrated and comprehensive modem new marketing model
we know it today, and Figure 1. is shown that Internet
which is E-Commerce based on Internet marketing.
marketing on Taiwan from 2006 to 2010.
III. EXAMINES THE FIVE FACTORS IN INTERNET
MARKETING
The open standards of the Internet ensure that large
organizations can easily extend their trading communities, by
increasing the efficiency of their business operations. In
addition, smaller companies that found the proprietary
communications technologies of the last decade too complex
and costly can now select the level of communication
appropriate for their businesses and benefit from the Internet
revolution and the E-Commerce revolution.
Figure 1. How E-Commerce Websites Work The Internet environments are an on-line global
marketplace that operates 24 hours a day, with millions of
Internet marketing is growth rapidly every year. At the sellers, buyers, products and services. The Internet and its
application level, typical technologies would include: capabilities also provide companies with new, more cost
telephone, fax, EDI, electronic mail, electronic funds transfer, effective and time-efficient means for working with
and the Internet – more specifically the Web. customers, suppliers and development partners.
Therefore, it can say that Internet marketing is an The model of Internet marketing based on E-Commerce
important means of implementing E-Commerce, and the E- is focus on five factors which as follow:
Commerce is the advanced stage of Internet marketing  Keyword: The keyword in the internet marketing
developing, so carrying out marketing E-Commerce can not gains access to world wide markets at a fraction of
separate from the Internet marketing, but the Internet traditional costs and shorten procurement cycles
marketing does not equal to the E-Commerce. Figure 2 through the se of on-line catalogues, ordering, and
gives out relationship of E-Commerce and Internet payment.
marketing [9],[10], and we can obtain from Figure 2.  Internet auction: Internet auction could reduce the
Based on concepts of E-Commerce and Internet marketing cost and reduce purchasing and
marketing, we believe that E-Commerce and Internet production cycles.
marketing refers to new comprehensive marketing model  E-mail: E-mail will promote closer relationship with
which is based on E-Commerce and uses every kind of customers and suppliers and rising exposure rate. It
Internet marketing methods and means to achieve online is also reduce the cost of communications directly.
business activities [11].  Blog: The consumer will have trust and loyalty.
Blog will reduce the cost of the service. It provides
 a quick and easy way of exchanging information  Network. It is mainly linked by wired network
about a company and its products. between internal departments. It is also mainly
 Advertising marketing: It is easier to estimate the linked by wireless network between external
effect of advertising marketing. customers, to realize trade activities, marketing
According the five factors in Internet marketing, we activities, personalized services.
develop the workflow of Internet marketing based on E-  Functions of each part. E-Commerce module should
Commerce which can be divided into three main stages have functions that meet customization needs of
[12],[13], which are following: customers, business negotiating, on-line signing, on-
Stage 1: Marketing analysis and research. In this stage, it line payment and commodities distributing and
should know the characteristics of the product, financial services, after-sale service etc. Internet marketing
condition and human resources. module should have functions such as search engine
Stage 2: Constructing E-Commerce platform. This stage marketing, on-line advertising and short message
include 4 plans, which are E-Commerce platform owned by marketing. A variety of on-line marketing methods
the enterprise, third-party E-Commerce platform, are more flexible and integrated application. Internal
collaborative E-Commerce platform and international E- management module should comprehensive use ERP,
Commerce platform. SCM, CRM and other advanced modern
Stage 3: Implementing Internet marketing on E- management science methods to make the internal
Commerce. Information collecting and publishing, Web enterprise management, and at the same time.
promoting, on-line transacting and paying, commodities
transporting and after-sales service are in this stage complete.
No matter what kind of Internet marketing to take, as V. EXPERIMENTAL RESULTS
long as they links to the internet, the enterprise has the basic In the experiments we used the World Wide Web
conditions to develop Internet marketing, and it will make User Surveys, begun in 2010 Aug. and end in 2010 Oct.,
initial marketing activities such publishing some supply and have been made publicly available for academic research.
demand information on internet, exchanges with customers Questionnaire information is available for about 10,000
by e-mail, etc.
respondents for each survey, with 4153 respondents
IV. DEVELOPING MODEL OF E-COMMERCE ON INTERNET answering questions from specialized surveys. For our
MARKETING analyses, we used answers 8 related to online shopping
proficiency from one specialized survey about 5 factors.
The information network technology is developing and is
Table 2 is shown the percent of sample with characteristic
applied; E-Commerce and Internet marketing will be
and factors.
developed toward the integrating direction. Internal
management and external commodity trading and internet TABLE II. THE PERCENT OF SAMPLE WITH CHARACTERISTIC AND
marketing activities coordinates, E-Commerce and Internet FACTORS
marketing gradually integrates. It is shown in Figure 3.
Searching Internet Advertising
K eyword E-mail Blog
Sam ple A uction Marketing
M ale 62.7% 16.7% 33.4% 5.6% 19.7% 24.6%

Fem ale 82.3% 13.2% 42.5% 6.7% 18.3% 19.3%

M arried 45.1% 5.7% 23.8% 20.6% 26.1% 23.8%

D ivorce 11.5% 16.5% 22.4% 6.4% 29.7% 25.0%

In C ollege 33.8% 19.8% 27.6% 11.3% 18.6% 22.7%

PostG rad 48.9% 17.6% 24.3% 9.8% 19.7% 28.6%

Incom e $20,000-
26.6% 17.3% 25.4% 12.3% 14.2% 30.8%
$40,000
Incom e $40,000-
12.1% 15.4% 22.5% 6.2% 11.3% 44.6%
Figure 3. Developing model of Internet marketing on E-Commerce $50,000
Incom e $50,000-
19.4% 13.5% 32.5% 3.4% 19.2% 31.4%
The major three parts of the model are described as $75,000
follow: Incom e O ver
19.7% 8.6% 22.8% 2.9% 23.5% 42.2%
$75,000
 Integration of every component. The model is an
organic integration of the various parts, the E- Incom e N otSay 11.5% 19.7% 24.3% 5.7% 27.5% 22.8%
Commerce, Internet marketing, internal management A ge 25-39 39.8% 12.8% 21.6% 4.2% 26.4% 35.0%
and external customers is linked by network, to
coordinate with each other and interrelated. A ge 40-65 43.9% 10.9% 20.7% 8.6% 21.6% 38.2%
 A ge O ver 65 3.6% 24.5% 22.8% 15.7% 16.2% 20.8% The world around us is rapidly changing. The Internet
InternetExp.6-
marketing and other E-Commerce related developments have
18.7% 19.7% 26.9% 23.4% 22.6% 7.4% the potential to radically change the ways in which we
12 M onths
InternetExp.1-3 communicate, interact, receive information, entertainment
35.1% 16.7% 25.4% 16.5% 27.6% 13.8% and other service. For businesses to survive in the 21th
Y ears
InternetExp.4-6 century and beyond, we proposed the Internet marketing
20.5% 21.5% 19.4% 12.1% 21.6% 25.4% based on E-Commerce models that give business outstanding
Y ears
InternetExp. it deserves as a key ingredient in business success.
8.7% 23.7% 29.7% 11.7% 20.9% 14.0%
O ver 7 Y ears

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