SUBMITTED TO: - SUBMITTED BY: -

Er. Puneet Garg Neha Goel

Asstt. Professor 14BBA019
CSE Departement BBA6th Sem

DEPARTMENT OF BACHELOR OF BUSINESS

ADMINISTRATION
GANGA INSTITUTE OF TECHNOLOGY &
MANAGEMENT, KABLANA
 TABLE OF CONTENTS

CHAPTER PARTICULARS CHECKED SIGNATURE REMARKS

NO. ON

1 INTRODUCTION
TO
E- COMMERCE

2 ELECTRONIC
PAYMENT
SYSTEM(EPS)

3 E – MARKETING

4 MOBILE
COMMERCE

5 E – SECURITY
CHAPTER – 1
INTRODUCTION
TO
E - COMMERCE

E-COMMERCE
E-commerce as anything that involves an online transaction. E-commerce provides
multiple benefits to the consumers in form of availability of goods at lower cost, wider
choice and saves time. The general category of e-commerce can be broken down into two
parts: E-merchandise: E-finance. E commerce involves conducting business using
modern communication instruments: telephone, fax, e-payment, money transfer systems,
e-data interchange and the Internet. Online businesses like financial services, travel,
entertainment, and groceries are all likely to grow. Forces influencing the distribution of
global e-commerce and its forms include economic factors, political factors, cultural
factors and supranational institutions.

E-commerce as anything that involves an online transaction. This can range from
ordering online, through online delivery of paid content, to financial transactions such as
movement of money between bank accounts.

Definition of E-Commerce from Different Perspective

1. Communications Perspective: - EC is the delivery of information, products/services,

or payments over the telephone lines, computer networks or any other electronic means.
2. Business Process Perspective: - EC is the application of technology toward the
automation of business transactions and work flow.
3. Service Perspective: - EC is a tool that addresses the desire of firms, consumers, and
management to cut service costs while improving the quality of goods and increasing the
speed of service delivery.
4. Online Perspective: - EC provides the capability of buying and selling products and
information on the internet and other online services.
Elizabeth Goldsmith and others (2000) reported that the general category of e-
commerce can be broken down into two parts:

1 E-merchandise: Selling goods and services electronically and moving items through
distribution channels, for example through Internet shopping for groceries, tickets, music,
clothes, hardware, travel, books, flowers or gifts.

2 E-finance: Banking, debit cards, smart cards, banking machines, telephone and Internet
banking, insurance, financial services and mortgages on-line.

Farooq Ahmed (2001) reported that the enormous flexibility of the internet has made
possible what is popularly called e-commerce which has made inroads in the traditional
methods of business management. All the facets the business tradition with which we are
accustomed in physical environment can be now executed over the internet including
online advertising, online ordering, publishing, banking, investment, auction and
professional services. E commerce involves conducting business using modern
communication instruments: telephone, fax, e-payment, money transfer systems, e-data
interchange and the internet. The WTO has recognized that commercial transactions can
be broken into 3 stages. 'The advertising and searching stage, the ordering, and payment
stage, and the delivery stage.'

BENEFITS OF E- COMMERCE

 Access new markets and extend service offerings to customers

 Broaden current geographical parameters to operate globally
 Reduce the cost of marketing and promotion
 Improve customer service
 Strengthen relationships with customers and suppliers
 Streamline business processes and administrative functions
SCOPE OF E-COMMERCE

 Marketing, sales and sales promotion

 Pre-sales, subcontracts, supply
 Financing and insurance
 Commercial transactions: ordering, delivery, payment
 Product service and maintenance
 Co-operative product development
 Distributed co-operative working
 Use of public and private services
 Business-to-administrations (e.g. customs, etc)
 Transport and logistics
 Public procurement
 Automatic trading of digital goods
 Accounting
 Dispute resolution

HISTORY OF E- COMMERCE

The history of e commerce is a history of how Information Technology has transformed

business processes. Some authors will track back the history of e commerce to the
invention of the telephone at the end of last century. EDI (Electronic Data Interchange) is
widely viewed as the beginning of ecommerce if we consider ecommerce as the
networking of business communities and digitalization of business information. Large
organizations have been investing in development of EDI since sixties. It has not gained
reasonable acceptance until eighties. EDI has never reached the level of popularity of the
Web-based ecommerce for several reasons:
 High cost of EDI prohibited small businesses and medium-sized companies from
participating in the electronic commerce;
 Slow development of standards hindered the growth of EDI; and
 The complexity of developing EDI applications limited its adaptation to a narrow
user base.
 GROWTH OF E-COMMERCE:

Electronic commerce or e-commerce encompasses all business conducted by means of

computer networks. Advances in telecommunications and computer technologies in
recent years have made computer networks an integral part of the economic
infrastructure. More and more companies are facilitating transactions over web. E-
commerce provides multiple benefits to the consumers in form of availability of goods at
lower cost, wider choice and saves time. People can buy goods with a click of mouse
button without moving out of their house or office. Similarly online services such as
banking, ticketing including airlines, bus, railways, bill payments, hotel booking etc. have
been of tremendous benefit for the customers. Most experts believe that overall e-
commerce will increase exponentially in coming years. Business to business transactions
will represent the largest revenue but online retailing will also enjoy a drastic growth.
Online businesses like financial services, travel, entertainment, and groceries are all
likely to grow.

As per the findings of Internet and Mobile Association India the total value of E-
Commerce activities within India has Crossed Rs.570 Crore during 2004-05. Internet and
Mobile Association India a non-profit organization founded in January 2004 by leading
Indian Internet portals, projects that e-commerce revenues in the country will reach Rs
2,300 Crore in the 2007 financial year, growing at 95 percent over the year 2006. This
pertains to the Business-to-Consumer (B2C) segment.

Table 1: E-commerce market size of India

Year 2002-03 2003-04 2004-05 2005-06 2007-08

Business to Consumer 130 255 570 1,180 2,300
transaction in Rs.
(Crore)
Percent Growth - 96 124 107 95
E-COMMERCE APPLICATIONS:-

1. BANKING INDUSTRY

New information technologies and emerging business forces have triggered a new wave
of financial innovation – electronic banking (e-banking). The banking and financial
industry is transforming itself in unpredictable ways (Crane and Bodie 1996), powered in
an important way by advances in information technology (Holland and Westwood 2001).
Since the 1980s, commercial banking has continuously innovated through technology-
enhanced products and services, such as multi-function ATM, tele-banking, electronic
transfers and electronic cash cards. Over the past decade, the Internet has clearly played a
critical role in providing online services and giving rise to a completely new channel. In
the internet age, the extension of commercial banking to the cyberspace is an inevitable
development (Liao and Cheung 2003).

E-banking creates unprecedented opportunities for the banks in the ways they organize
financial product development, delivery and marketing via the internet. While it offers
new opportunities to banks, it also poses many challenges such as the innovation of IT
applications, the blurring of market boundaries, the breaching of industrial barriers, the
entrance of new competitors and the emergence of new business models (Saatcioglu et al.
2001, Liao and Cheung 2003). Now the speed and scale of the challenge are rapidly
increasing with the pervasiveness of the internet and the extension of information
economy (Holland and Westwood 2001).

Products Offered:

All of the major banks in India have an internet presence offering a range of products
directly to consumers by way of proprietary internet sites. While the initial focus of the
banks has been in the retail-banking sector, there is a growing range of small to medium
enterprise ("SME") and corporate banking products and services being offered. The
products available include
(a) Funds Transfer and Payment Systems:-The major banks offer a range of online
financial services including

(i) Payment of bills;

(ii) Transfer of funds;

(iii) Remittances;

(iv) Applications for letters of credit; and

(v) Settlement through the MAS Electronic Payment System.

(b) B2B E-Commerce:-At least one of the major commercial banks offers an integrated
B2B e-commerce product directly through its website, involving product selection,
purchase order, invoice generation, and payment. However, integrated B2B products and
services are not as yet generally available directly from the banks.

(c) Securities Placement and Underwriting/Capital Markets Activities: - Most

commercial banks offer securities services such as online payment for shares and
subscriptions for initial public offerings directly though their websites. However, more
sophisticated online brokering services are generally only available through the banks'
share-broker subsidiaries.

(d) Securities Trading:- A full range of online securities services are provided by the
specialist securities subsidiaries of the major commercial banks including online trading.

(e) Retail Banking:- All of the major commercial banks have established websites for
retail services. Typically such sites will offer the following services:

(i) A full range of personal account services, including foreign currency accounts;

(ii) Funds transfers;

(iii) Bill payments;

(iv) Credit card services;

(v) Investment services; and

(vi) Online application for loan services including

(a) Car loans;

(b) Renovation loans;

(c) Home loans; and

(d) Personal credit lines.

E-Commerce has provided the platform that enables the implementation of core banking
solutions (CBS). Today all the major banks have gone on to implement CBS. And with
time being a premium among bank customers, banks have been ideating and developing
newer modes of delivering banking services. Today there is a whole plethora of such
platforms available ranging from the ATM to the mobile.

Banks like State Bank of India and its associates are recording over 100,000 transactions
on a daily basis through their 5,000 plus network of ATMs. Incidentally the profile and
usage pattern of ATMs in India matches that of ATMs abroad with an overwhelming
(more than 80%) being used for cash withdrawal. Today with over 20,000 ATMs, India is
recording one of the fastest growth in terms of ATM proliferation, though the per capita
availability of ATMs doesn't compare anywhere to markets like Japan or the US.

With most banks now providing Internet banking facility, bankers say that customers are
using the bank for a variety of purposes. One commonly used service being booking of
rail tickets. Bankers also say that customers are using bank networks for online shopping.
Most of the online banking channels are linked to major retailers. Estimates also indicate
that today over 40% of the share transactions are being put through the internet.

2. TRAVEL INDUSTRY

In India e-commerce is being driven by the growing online travel industry and online
travel bookings have increased substantially after the entry of low cost carriers. Currently,
online travel industry is contributing 50% to the revenue generated by e-commerce in
India. To boot, online travel industry is growing at 125% (compounded annual growth
rate) annually. Generating revenues of around $300-500 million (Rs.1,350-2,250 crore)
currently, the size of the online travel industry is around 2% of the entire travel industry.
Online travel industry is expected to become a $2 billion industry by 2008. In India, it is
basically low cost carriers like Air Deccan and the Railways, which have significantly led
to increased use of e-commerce.

However airline industry is still exploring the advantages of e-commerce. Currently e-

commerce is being used mostly for e-ticketing among the domestic airlines though e-
ticketing penetration in India is as low as 17% against the world average of 49% and 42%
in Asia Pacific. But according to the UN's International Telecommunication Union, about
400 million travelers worldwide are expected to book tickets on-line this fiscal.

Air Deccan launched its operations with a 100% web enabled ticketing service and in no
time became India's largest e-commerce site, with Rs.30 million worth transactions per
day. Electronic ticketing now accounts for 35%-40% of tickets sold by Air Deccan. E-
ticketing not only make tickets more accessible for travelers 24/7 but also eliminates the
need to invest in ticketing offices and other related infrastructure reducing operational
costs. Also travelers could avoid the long queues and save the service charges payable to
travel agents.

Being a 100% e-ticket enabled airline, Kingfisher not only offers e-ticketing but also
electronic check-in, wherein after printing the boarding card on-line the customer can use
web-enabled check-in on the airline's website and board the plane directly passing
through only mandatory security check at the airport. One of the biggest advantage of e-
ticketing is that one can neither lose an e-ticket nor destroy it by leaving it accidentally in
the pocket. Also e-ticketing environment offers much better degree of connectivity and
reachability.
OTHER E- COMMERCE APPLICATIONS:-

1. EDUCATION AND LEARNING-

Training and continuing education in the field of information technology has evolved
from what was one defined by a necessity of spending hours outside an office in the
classroom, or hours in front of a computer reviewing flat, computer based training(CBT)
presentations to a flexible anytime anywhere convenience mode. Today internet is
empowering professionals with flexible training and customized learning, work
schedules, and budgets, through innovative technologies, flexible delivery methods,
engaging multimedia, and live audio.
E- learning has matured to the extent that the course developers, rather than being
preoccupied with the software and hardware behind the scenes, can pay more emphasis
on providing students a better experience than they might have had even with a
traditional instructor led class in a brick and mortar environment. As a result, learners feel
more at ease with e-learning and are able to move beyond the novel concept that the
person teaching them is not physically in the same building as they are. The focus in such
e-learning environment is on engaging them and keeping the learners engrossed in the
information being conveyed. The key behind good e-learning and bad e-learning solution
lies in the degree to which learners are engaged.

2. SUPPLY CHAIN MANAGEMENT-

Supply Chain Management deals with three issues:-

1. Coordinating all the order processing activities that originate at the customer
level, such as the process of order generation, order acceptance, entry into order
processing system, prioritization, production, and material forecast.
2. Material related activities such as scheduling, production, distribution, fulfillment
and delivery; and
3. Financial activities such as invoicing, billing, fund transfer, and accounting.
The process of Supply Chain Management makes a good application candidate for e-
commerce technologies. It enhances the scope of Supply Chain Management beyond the
efficiency and cost reduction perspective to growth in revenues, profit margins and
improved customer service. E- Commerce technologies assist in linking and managing
digitized products, product information, processes, and intercommunication among
organizations. The primary goal of streamlining the product delivery from the
manufacturer to the customer can be better served with digital communication, sharing of
information databases and coordination across a number of organizations in the ‘chain’.
Through the use of internet standards such as Java and XML, members of a supply chain
can pool together heterogeneous resources and skills for sharing and exchange of
information, to deliver the outcome as one “virtual organization”.

AND MANY MORE SUCH AS:-

 Video on demand
 Remote banking
 Procurement and purchasing
 Online marketing and advertisement
 Home shopping
 Auctions
HOME PAGES OF COMMERICIAL ONLINE SHOPPING WEB
SITES

A) FUTURE BAZAAR.COM

B) UNCOMMON GOODS.COM
C)

HOME SHOP 18.COM

D) INDIA VARTA.COM
CHAPTER - 2
 ELECTRONIC
PAYMENT
SYSTEM (EPS)

ELECTRONIC PAYMENT SYSTEM

Electronic payment is an integral part of electronic commerce. Broadly defined,

electronic payment is a financial exchange that takes place online be-tween buyers and
sellers. The content of this exchange is usually some form of digital financial instrument
(such as encrypted credit card numbers, electronic checks, or digital cash) that is backed
by a bank or an intermediary, or by legal tender. Three factors are stimulating interest
among financial institutions in electronic payments: decreasing technology costs reduced
operational and processing costs, and increasing online commerce. The desire to reduce
costs is one major reason for the increase in electronic payments. Cash and checks are
very expensive to process and banks are seeking less costly alternatives. It is estimated
that approximately 56 percent of consumer transactions in the United States are cash and
29 percent are check. Credits, debits, and other electronic transactions account for about
15 percent of all consumer transactions, and are expected to increase rapidly. Electronic
transactions numbered 33 billion in 1993 and are expected to climb to 118 billion by the
year2000. For the same period, paper transactions are forecast to show very modest
growth, from 117 billion in 1993 to 135billion in the year 2000. Banks and retailers want
to wean customers away from paper transactions because the processing overhead is both
labor intensive and costly.
The crucial issue in electronic commerce revolves around how consumers will pay
businesses online for various products and services. Currently, consumers can view an
endless variety of products and services offered by vendors on the Internet, but a
consistent and secure payment capability does not exist. The solutions proposed to the
online payment problem have been ad hoc at best. For instance, in one method marketed
by Cyber Cash, users install client software packages, sometimes known as “electronic
wallets, on their browsers. This software then communicates with “electronic cash
registers that run on merchants Web servers. Each vendors client works with only that
vendors own server software, a rather restrictive scenario. Currently, merchants face the
unappealing option of either picking one standard and alienating consumers not
subscribing to a standard or needing to support multiple standards, which entails extra
time, effort, and money.
Today, the proliferation of incompatible electronic payment schemes has stifled electronic
commerce in much the same way the split between Beta and VHS standards stifled the
video industries growth in the 1970s. Banks faced similar problems in off-line commerce
in the early nineteenth century. Many banks issued their own notes, and a recurrent
problem was the tendency of some institutions to issue more notes than they had gold as
backing. Further, getting one bank to honor anothers notes was a major problem.
Innovations in payment methods involved the creation of new financial instruments that
relied on backing from governments or central banks, and gradually came to be used as
money. Banks are solving these problems all over again in an online environment. The
goal of online commerce is to develop a small set of payment methods that are widely
used by consumers and widely accepted by merchants and banks. This chapter offers a
brief examination of the various types of electronic payment systems. It then provides an
overview of the business, consumer, and legal implications of electronic payment
systems.

OVERVIEW OF THE ELECTRONIC PAYMENT TECHNOLOGY

Electronic payments first emerged with the development of wire transfers. Early wire
transfer services such as Western Union enabled an individual to deliver currency to a
clerk at one location, who then instructed a clerk at an-other location to disburse funds to
a party at that second location who was able to identify himself as the intended recipient.
Cash was delivered to the customer only after identity was established. In this scenario,
there was no banking environment; Western Union was a telegraph company. Assurance
of payment relied on the financial stability of the firm. Security was pro-vided to the
extent that Western Union was a privately controlled transmission facility used to send
messages about funds transfer; its lines were not shared with the public, and transactions
were private. Authentication was provided only by a signature at the other end of the
transmission that verified that the intended party had indeed received the funds.
During the 1960s and early 1970s, private networking technology has enabled the
development of alternative electronic funds transfer (EFT) systems. Electronic funds
transfer systems have shortened the time of payment instruction transfer between banks,
and in the process have reduced float. However, EFT systems have not changed the
fundamental structure of the payment system. Many of the so-called payment innovations
over the past two decades have been aimed at minimizing banking costs such as reserve
requirements, speeding up check clearing, and minimizing fraud. However, the consumer
rarely interacted with the early EFT systems. Recent innovations in electronic commerce
aim to affect the way consumers deal with payments and appear to be in the direction of a
real-time electronic trans-mission, clearing, and settlement system.
Consumer electronic payment systems are growing rapidly, but the opportunities are
scarcely tapped. In the United States, it is estimated that only 3 percent of the $460
billion supermarket industry is transacted on credit or debit cards. Only 1 percent of the
$300 billion professional services area is transacted electronically. Less than 12 percent
of business at gasoline service stations is electronic and less than 1 percent of fast food
restaurants have magstripe readers. The educational market alone is more than $100
billion today, only 6 percent of which is transacted electronically. Even more important is
the predicted growth ahead. Consumer payments at the point of sale were $3.6 trillion in
1994, 19 percent of which was on credit and debit cards. Recently, several innovations
helped to simplify consumer payments. These include:
· Innovations Affecting Consumers: Credit and debit cards, automated teller machines
(ATMs), stored-value cards, and electronic banking.
· Innovations Enabling Online Commerce: Digital cash, electronic checks, smart cards
(also called electronic purses), and encrypted credit cards.
· Innovations Affecting Companies: The payment mechanisms that banks provide to
corporate customers, such as inter bank transfers through automated clearing houses
(ACHs) that allow companies to pay workers by direct deposits.

INTRODUCTION TO ELECTRONIC DATA INTERCHANGE

All Organization and administrative association with large information system faces a
situation where typing and printing of all information arriving or leaving their domain is
no longer feasible. Everyone who works in a business organization where hundreds and
thousands of standard forms, (e.g. invoices) and received and responded to, knows how
difficult it is to manage this task. These forms should be entered in the computer for
processing, and response, should be generated and posted to the concerned parties. The
whole process is time-consuming and prone to human errors during data entry and
expensive to operate.
Electronic Data Interchange (EDI) is the electronic exchange of business documents in a
standard, computer processable, universally accepted format between-trading partners.
EDI is quite different from sending electronic mail, messages or sharing files through a
network. In EDI, the computer application of both the sender and the receiver, referred to
as Trading Partners (TPs) have to agree upon the format of the business document which
is sent as a data file over an electronic messaging services. Refer to figure, it illustrates
how EDI messages can be used to totally automate the procurement process between two
trading partners.

Figure: EDI enabled Procurement Process

The two key aspects of EDI that distinguish it from other forms of electronic
communication, such as electronic mail, are:
The information transmitted is directly used by the recipient computer without the need
for human intervention is rarely mentioned but often assumed that EDI refers to
interchange between businesses. It involves two or more organization or parts of
organization communicating business information with each other in a common agreed
format.

The repeated keying of identical information in the traditional paper-based business.

Communication creates a number of problems that can be significantly reduced through
the usage of EDI. These problems include: -
· Increased time
· Low accuracy
· High labour charges
· Increased uncertainty.
To take full advantage of EDI’s benefits, a company must computerize its basic business
applications. Trading partners are individual organization that agrees to exchange EDI
transactions. EDI cannot be undertaken unilaterally but requires the cooperation and
active participation of trading partners. Trading partners normally consists of an
organizations principal suppliers and wholesale customers. Since large retail stores
transact business with a large number of suppliers they were among the early supporters
of EDI. In the manufacturing sector, EDI has enabled the concept of Just-In-Time
inventory to be implemented. JIT reduces inventory and operating capital requirements.

Costs and Benefits

Wherever the EDI has been implemented, computers electronically exchange business
documents with each other, without human intervention. This only reduces the operating
costs, administrative errors, and delivery delays. The benefits accruing from EDI
implementation can be broadly classified into direct benefits and long-term strategic
benefits.

Direct Benefits
 The transfer of information from computer to computer is automatic.
 Cost of processing EDI documents is much smaller than that of processing paper
documents.
 Customer service is improved. The quick transfer of business documents and
marked decrease in errors allow orders to be fulfilled faster.
 Information is managed more effectively.
 There is an improved job satisfaction among the data entry operators, clerks etc.
When redeployed in more creative activities.

Strategic Benefits
 Customer relations are improved through better quality and speed of services.
 Competitive edge is maintained and enhanced.
 Reduction in product costs can be achieved.
 Business relations with trading partners are improved.
 More accurate sales forecasting and business planning is possible due to
information availability at the right place at the right time.
Networking Infrastructure for EDI
For the successful functioning EDI, it assumes availability of a wide area network to
which organization can subscribe. All organization that is willing to join EDI services
must subscribe to the common network. In addition, all organization participating in a
EDI service-group that they will use, and load appropriate EDI software on their compute
systems. This software is responsible for providing translation services. EDI services and
network access services as shown in figure.

Figure: Processing of EDI Messages

When a sender’s computer system produces a message and passes it to the translation
service software. This translates the message into the common agreed structure and
passes it to EDI service software. EDI service software executes necessary functions and
procedures to send the message, track it in the network and ensure that it reaches its
destination. EDI services, in addition, may include procedures to ensure security
functions, billing and accounting functions and generate necessary logs for auditing
purposes. Network access services are responsible for actually controlling the interaction
with the network that transports messages from one site to another. The transport network
provides a powerful electronic messaging service to support EDI services. Transport
network uses a “store and forward mechanism” and messages are sent to ‘mail boxes’ that
are managed by the network service provider. The originator can send his messages at
any time independent of the recipient’s system status, whether or not it is ready for
receiving. The recipient systems periodically check their mailboxes and transfer messages
from network mailboxes to their own memory. Thus a transfer cycle is completed. The
receiving computer applies necessary translator and converts the received message into a
format understandable by its application software. The application software is
programmed to recognize various messages and take necessary actions such as generating
response to receive messages and updating other database.

FUNCTIONING OF EDI

Any organization using EDI communicates with their Trading partners, in one of the two
ways:
a) Exchange of date with several trading partners directly
b) Interaction with multiple companies through a central information- clearing
house.

Figure: Typical EDI Configuration

EMERGING FINANCIAL INSTRUMENTS

Smart Cards
Smart cards, also called stored value cards, use magnetic stripe technology or integrated
circuit chips to store customer-specific information, including electronic money. The
cards can be used to purchase goods or services, store information, control access to
accounts, and perform many other functions.

Smart cards offer clear benefits to both merchants and consumers. They reduce cash-
handling expenses and losses caused by fraud, expedite customer transactions at the
checkout counter, and enhance consumer convenience and safety. In addition, many state
and federal governments are considering stored value cards as an efficient option for
dispersing government entitlements. Other private sector institutions market stored value
products to transit riders, university students, telephone customers, vending customers,
and retail customers.

Debit Cards at the Point of Sale (POS)

The fastest growing number of electronic transactions today are debit card point-of-sale
transactions. Such a transaction occurs when a customer uses a debit card to make a
purchase from a merchant (supermarket, gas station, convenience store, or some other
store that accepts such cards instead of using cash, check, or credit card).

The transaction works much like a credit card transaction. For example, a customer gives
an ATM card to the merchant for the purchase. The merchant swipes the card through a
transaction terminal, which reads the information; the customer enters his personal
identification number (PIN); and the terminal routes the transaction through the ATM
network back to the customers bank for authorization against the customers demand
deposit account. The funds, once approved, are transferred from the customers bank to
the merchants bank.

Debit Cards and Electronic Benefits Transfer

Debit cards are being used extensively for electronic benefits transfer (EBT). Electronic
benefits transfer uses debit cards for the electronic delivery of benefits to individuals who
otherwise may not have bank accounts. In an EBT system, recipients access their benefits
in the same way that consumers use debit cards to access their bank accounts
electronically: the card is inserted into or swiped through a card reader and the cardholder
must enter a PIN associated with that card. The benefit recipient can then access his or
her benefits to make a purchase or obtain cash. For example, food stamp purchases are
charged against the participant’s allotment, and other purchases or cash distributions are
charged against the participant’s cash assistance program allotment.
Benefits that can be delivered via EBT generally fall into three categories: federally
funded, but state administered benefits (such as food stamps, Aid to Families with
Dependent Children programs); state-funded and state-administered benefits (such as
general assistance, heating assistance, refugee assistance, and supplemental or emergency
payments); and benefits that are both federally funded and federally administered (such
as Social Security and Veterans benefits).

Electronic Checks
Electronic checks are designed to accommodate the many individuals and entities that
might prefer to pay on credit or through some mechanism other than cash. Electronic
checks are modeled on paper checks, except that they are initiated electronically, use
digital signatures for signing and endorsing, and require the use of digital certificates to
authenticate the payer, the payers bank, and bank account. The security/authentication
aspects of digital checks are supported via digital signatures using public-key
cryptography.
Ideally, electronic checks will facilitate new online services by: allowing new payment
flows (the payee can verify funds availability at the payers bank); enhancing security at
each step of the transaction through automatic validation of the electronic signature by
each party (payee and banks); and facilitating payment integration with widely used EDI-
based electronic ordering and billing processes.
ONLINE SHOPPING

Online shopping is the process consumers go through to purchase products or services

over the Internet. An online shop, eshop, e-store, internet shop, webshop, webstore,
online store, or virtual store evokes the physical analogy of buying products or services at
a bricks-and-mortar retailer or in a shopping mall.The metaphor of an online catalog is
also used, by analogy with mail order catalogs. All types of stores have retail web sites,
including those that do and do not also have physical storefronts and paper catalogs.

Online shopping is a type of electronic commerce used for business-to-business (B2B)

and business-to-consumer (B2C) transactions.
HOW TO PLACE AN ORDER FOR ONLINE GOODS AT
AMAZON.COM

Placing Your First Order

Placing an order with Amazon.com is easy. There's no need to create an account first. You
automatically create an account when you place your first order online. (They cannot
accept orders by phone, fax, or e-mail. All orders must be placed online.)

Here are the steps you need to follow to place an order. If you have any problems when
following these steps, please read the Troubleshooting Tips.

1. Find the Items You Want

2. Add the Items to Your Shopping Cart
3. Proceed to Checkout
4. Sign In/Create a New Account
5. Enter a Shipping Address
6. Choose a Shipping Method
7. Provide Payment Information and a Password
8. Review and Submit Your Order
9. Check Your Order Status
Note: Some items offered on the website are fulfilled by Amazon Merchants or through
Amazon Marketplace. Payment, shipping, and return policies may vary by type of order
and by seller. The seller of each item in your order will be clearly noted on the View
Shopping Cart page.

1. Find the Items You Want

First you will need to browse or search for the items you would like to order. Keyword
search boxes are located on nearly every page of the store. You will also find links to
browse lists and more detailed product-specific searches in the top navigation bar of each
store. When you find an item that interests you, click the title or name of the item to see
its product detail page. Here you will find more information about the item, including
an availability estimate of how long it will take before the item will be ready to leave
our fulfillment center.

2. Add the Items to Your Shopping Cart

If you want to order an item from Amazon.com, click the "Add to Shopping Cart"
button on the item's product detail page. (If you want to buy the product from another
seller, click the link in the More Buying Choices box instead and follow the directions.)
Once you've added an item to your Shopping Cart, keep searching or browsing until your
cart contains all of the items you want to order. You can access the contents of your
Shopping Cart at any time by clicking the at the top of every page of our website.

3. Proceed to Checkout

Take a moment to review all of the items you've placed in your Shopping Cart. If you
decide that you don't want to purchase a particular item right away, click the "save for
later" button next to the title. The item will move from your current Shopping Cart to the
"Saved Items--To Buy Later" list below. If any of the items are to be gifts, click the
"add gift-wrap/note" checkbox under the item. (You'll be given a chance to order gift-
wrap and/or add a note during the checkout process.)
When you're ready to place an order for everything in the "Shopping Cart Items--To Buy
Now" section of your cart, click the "Proceed to checkout" button. You will be taken to
the first page of the order form.

The instructions below outline each step of their online order form. If at any point you
encounter difficulty or receive an error message, please consult their troubleshooting tips.

4. Sign In

Enter your e-mail address. (Keep in mind that the e-mail address you provide here will be
the only e-mail address to which they can send information about subsequent orders.)
Indicate that you are a new customer. (Do not fill in the password field; you will be asked
to provide a password for your account later in the process.) Click the "Sign in" button.

5. Enter a Shipping Address

Tell us where you would like to ship your order. If you are shipping to an APO or FPO
address, click here for further instructions. If you are shipping to a post office box, please
enter the words "PO BOX" before your box number to ensure that the order is delivered
by the U.S. Postal Service.

6. Choose a Shipping Method

Consider how quickly you would like to receive your order, and choose a shipping
method. If you would like to take advantage of FREE Super Saver Shipping and your
order qualifies, be sure to select it as your shipping option; you will not receive free
shipping automatically. Please note that it's not possible to request a specific carrier.

They will estimate shipment dates for you on the order form, just before you submit your
order. You will see estimated shipment and delivery dates in the e-mail they send you to
confirm your order.

If there is more than one item in your order, you will be given the following options:
  Group my items into as few shipments as possible
 I want my items faster. Ship them as soon as they become available (at additional
cost)

If you choose the first option, they consolidate your items into the fewest shipments
possible. They show you the minimum number of shipments needed to complete your
order. If you choose the second option, they will ship items to you as they become
available, beginning with those already in stock. You'll be charged a per-shipment fee for
each shipment.

The shipping charge for your order will be displayed on the order summary page just
before you submit your order.

7. Provide Payment Information and a Password

Next, let us know how you would like to pay for your order. Amazon.com accepts
American Express, Diners Club, Discover, JCB, MasterCard, Eurocard, Visa, Visa Check
Cards, payment from your bank account, Amazon.com gift cards, Amazon Store Card,
and Web certificates. All orders must be prepaid. If you're paying with a credit card, enter
the number without spaces or dashes.

Choose a password for your account so that when you come back to Amazon.com in the
future, you can use the same shipping address and method of payment you provided
during this first order. You will also be able to use your password to make changes to
your order and account information. Make sure to choose something you will remember
the next time you want to place an order.

 Passwords are case sensitive. For instance, "PASSWORD" and "Password" are
two different passwords. When choosing a password, remember the capitalization
you use.
 Passwords must be a minimum of 6 characters.
  It's best to avoid passwords that are easy to guess, such as "secret," "password," or
"letmein." We also suggest that you avoid using your name, e-mail address, or
other personal information that is easily obtained.
 Though it's not a requirement, adding numbers or special characters to your
password will make it even stronger. For example, the password "rivers2!%" is a
much stronger password than "rivers."
 Guard your password carefully. Remember, anyone who knows your password
may access your account.

8. Review and Submit Your Order

Check the accuracy all of the information you provided and make any necessary
adjustments. When you are ready, click the "Place Your Order" button to submit your
order. Once you place your order, they will send you a confirmation e-mail message.
They will send you another e-mail message at the time of shipment. 1-Click shopping is
automatically turned on for you so that it's even easier to order in the future.

9. Check Your Order Status

If you would like to review or change something about the order you placed before it
enters the shipping process, click the Your Account link in the top right corner of most
pages on the site. Here you will be able to change the particulars of your order without
having to contact them.
CHAPTER - 3
E - MARKETING

E - MARKETING
At its core, the mission of marketing is to attract and retain customers. To accomplish this
goal, a traditional bricks-and mortar marketer uses a variety of marketing variables-
including pricing, advertising, and channel choice-to satisfy cur-rent and new customers.
In this context, the standard marketing-mix toolkit includes such mass-marketing levers
as television advertising, direct mail, and public relations, as well as customer-specific
marketing techniques such as the use of sales reps.
With the emergence of the Internet and its associated technology-enabled, screen-ta-face
interfaces (e.g., mobile phones, interactive television), a new era of marketing has
emerged. Well-respected academics and practitioners have called for new rules and urged
debate about fundamental tenets of marketing, including segmentation, mass marketing,
and regionalized programs.) At the ‘other extreme, pundits and academics alike have
argued that both the basic building blocks of marketing strategy and the pathways to
competitive advantage have remained the same.
The approach taken in the current volume falls between these polar views. That is, new
levers have been added to the marketing mix, segments have been narrowed to finer
gradations, consumer expectations about convenience have forever been altered, and
competitive responses happen in real time. In short, these are new, exciting changes that
have a profound impact on the practice of marketing. At the same time, some of the
fundamentals of business strategy-seeking competitive advantage based on superior
value, building unique resources, and positioning in the minds of customers-have
remained the same.
The intent of this text is to provide a clear indication of what has changed and what has
not changed. At the same time, the text would not be complete (and indeed might be
actionable from the standpoint of business practice!) if it did not propose a broader
framework to understanding the practice of Internet marketing. Frameworks such as the
4Ps of marketing or the five forces of competitive analysis are important because they
provide easy-to-remember, simplifying structures for complex problems. They also serve
as guides to managerial action. Thus, under-standing the five forces enables firms to
comprehensively map their competitive environment while simultaneously identifying
specific actions for their managers (e.g., reduce buyer power by increasing the number of
buyers). This opening chapter provides a simple seven-stage framework for Internet
marketing. But first it offers a brief review of the basics of marketing and the scope of
Internet marketing.

Definition and Scope of Internet Marketing

It is perhaps best to begin with the basic American Marketing Association definition of
marketing:
Marketing is the process of planning and executing the conception, pricing, pro-
motion, and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational goals.

The Basics: What Is Marketing?

The definition summarized above has four critical features. These are:
1. Marketing is a Process
A process is a particular method of doing an activity, generally involving a series of steps
or operations. The classical marketing approach involves four broad steps: market
analysis, market planning, implementation, and control. 5 Market analysis involves
searching for opportunities in the marketplace, upon which a particular firm-with unique
skills-can capitalize. Market planning requires segmentation, target market choice,
positioning, and the design of the marketing mix (also termed the 4Ps, or marketing
program). Market implementation includes the systems and processes to go to market
with the marketing pro-gram. Finally, marketing control refers to the informal and formal
mechanisms that marketing mangers can use to keep the marketing program on course.
Analysis, planning, implementation, and control collectively provide a process for
marketing managers to follow in the design and execution of marketing programs.

2. It Involves a Mix of Product, Pricing, Promotion, and Distribution

Strong marketing programs do not involve one action, such as the design of a great
product. Rather, the most successful marketing programs involve mixing the ingredients
of marketing to deliver value to customers. This mixing entails blending the right
amounts of the 4P ingredients, at the right time, and in the right sequence. Too often,
marketing programs fail because they allocate too many (or too few) resources in an
uncoordinated way. How often have you witnessed the hot Christmas toy advertised-but
not found it on the shelf? In the Internet environment, this translates into significant
problems with order fulfillment at the most pressing times of the year.

3. It is about Exchange
Marketing is not successful unless two parties exchange something of value. The buyer
may exchange time, money, or services, while the seller must exchange something of
value to the buyer. The traditional retail context pro-vides the simplest illustration of this
principle. A given consumer exchanges money for a particular good or service. However,
exchange also occurs in a wide variety of contexts, many of which are non monetary.
These include bartering, volunteering services, and political donations.

4. It is Intended to Satisfy Individual and Organizational Needs

The aim of marketing is to provide a satisfactory outcome for both the firm and the
customer. Firms can have highly satisfied customers if they provide services for free.
However, those organizations are not likely to have a long life. The key to modern
marketing is simultaneously satisfying the customer, the firm, and its shareholders. In the
long run, the firm must have a positive cash flow or show a clear path to profitability for
investors to maintain confidence.

What is Internet Marketing?

If traditional marketing is about creating exchanges that simultaneously satisfy the firm
and customers, what is Internet marketing?
Internet marketing is the process of building and maintaining customer relation-
ships through online activities to facilitate the exchange of ideas, products, and
services that satisfy the goals of both parties.

This definition can be divided into five components:

1. A Process
Like a traditional-marketing program, an Internet-marketing program involves a process.
The seven stages of the Internet marketing program process are setting corporate and
business-unit strategy, framing the market opportunity, formulating the marketing
strategy, designing the customer experience, designing the marketing program, crafting
the customer interface, and evaluating the results of the marketing program. These seven
stages must be coordinated and internally consistent. While the process can be described
in a simple linear fashion, the marketing strategist often has to loop back and forth during
the seven stages.
2. Building and Maintaining Customer Relationship
The goal of marketing is to build and create lasting customer relationships. Hence, the
focal point shifts from finding customers to nurturing a sufficient number of committed,
loyal customers. Successful marketing programs move target customers through three
stages of relationship building: awareness, exploration, and commitment. It is important
to stress that the goal of Internet marketing is not simply building relationships with
online customers. Rather, the goal is to build offline (as relevant) as well as online
relationships. The Internet marketing program may well be part of a broader campaign to
satisfy customers who use both online and offline services.
3. Online
By definition, Internet marketing deals with levers that are available in the world of the
Internet. However, as noted above, the success of Internet marketing program ‘may rest
with traditional, offline marketing vehicles. Consider, for example, the recruiting and job-
seeking service Monster.com. Monster’s success can be tied directly to the effectiveness
of its television advertising and, in particular, it’s widely successful of the past two years.
4. Exchange
At the core of both online and offline marketing programs is the concept of exchange. In
both the online and offline worlds, exchange is still the heart of marketing. In the new
economy, firms must be very sensitive to cross-channel exchanges. That is, an online
marketing program must be evaluated according to its overall exchange impact-not just
the online exchange impact. Hence, online marketing may produce exchanges in retail
stores. Firms must be increasingly sensitive to these cross channel effects if they are to
measure the independent effects of online and offline marketing programs.
5. Satisfaction of Goals of both Parties
One of the authors of this book is a loyal user of the website weather.com. Each day he
arises and checks the weather in his city as well as the weather in cities he will be
traveling to during the week. He is clearly satisfied with and loyal to the site. To the
extent that weather.com can monetize this loyalty-most likely, in the form of advertising
revenue-both parties will be satisfied. However, if the firm is unable to meet its financial
obligations to employees, suppliers, or shareholders, then the exchange is unbalanced.
Customers are still happy, but the firm is unable to sustain its revenue model. Both parties
must be satisfied for exchange to continue.
E - ADVERTISING
Advertising spending is expected to increase for five reasons:-
A) Shorter Access Times
As more bandwidth becomes available, users will spend a larger proportion of their time
on Web sites and a smaller proportion waiting to access them. With more time available
to draw users’ attention, advertisers should be willing to pay more per user to place their
icons in online periodicals. Shorter access times also enable increasingly complex
graphics to be placed on Web sites, without requiring additional access time. This should
draw to the Web advertisers who may have been concerned that the current graphical
quality was insufficient for displaying their products. With more advertisers, advertising
rates should rise.
B) Reduced Access Fees
New Internet users will be attracted by reduced access fees, with part of the reduction
covered by advertisers. The cost of the access fee itself can be shared by an advertiser if,
for example, the advertiser pays for the access time used when accessing online yellow
pages.
C) Increasingly Convenient Access to Information
As the amount of information online increases, it should be increasingly important for
advertisers to get users to their sites quickly, leading them to pay more for placement in
online periodicals.
D) Increasingly Valuable Information
Product descriptions can be enhanced through online advertising. With more information
available, the decision to purchase should be easier and more purchases should occur
(assuming the product is desirable). This should boost the appeal of the Web and in-
crease the rates that advertisers could be charged for placing their icons in an online
periodical.
E) Better Measurement of Advertising Effectiveness
Product advertising is far more effective if it leads to a purchase. If online advertising
encourages users to shift a portion of their purchases to the Web, then companies may pay
far more to advertise.

E- COMMERCE AND RETAILING

Retailing is expected to change with the rapid development of new online sales and
distribution channels that literally can be used from anywhere, anytime-from work,
school, a hotel, car, or airplane. These developments should impact retailing as much as
the advent of strip malls, catalog retailing, and TV-based home shopping.
Almost every retailer is reevaluating every aspect of its operation from customer service
to advertising, merchandising to store design, and logistics to order fulfillment.
Furthermore, reacting to the pressure of retailers, suppliers are assessing technology
based solutions to drive down costs (labor, delivery, and production) and become more
efficient producers of goods.
Online channels such as online services and the Web are also impacting traditional retail
business models. In the traditional model, the customer went to the store and located the
product. In the online model, the retailer seeks out the customer. The success of catalog
retailers demonstrates that a significant portion of consumers have embraced the reverse
model: the retailer going to the consumer. However, retailers need to consider the
following issues in developing a business model:
· Product/Content Issues: What kinds of products are suited for online re-tailing?
· Software Interface Issues: What kind of features will constitute an effective interface?
What features make it easy to find and select items for on-line purchase?
· Process Issues: What are the specific steps in the shopping process from a consumer’s
perspective? What kind of processes should companies develop to fulfill orders
efficiently?
Before examining the implications of changing consumer behavior and online retailing in
the existing retail business, let us step back for a moment and ask the question: Why
should retailers consider the online environment as a way of doing business? The answer
lies in understanding the market changes that affect retailing and that will continue to
affect it in the future.
Changing Retail Industry Dynamics
Important factors that affecting the retailing industry dynamics are:
 Overbuilding and excess supply.
 Change in consumer demographics, which more premium placed on efficient use
of time
 Changes in consumer behavior, with less focus on brand name and more on
lowest prices.
 Technology improvements that provide greater convenience and more information
than traditional retailing.

Overbuilding and Excess Capacity

With online retailing, constraints of time and space disappear. There is no bricks and
mortar storefront to worry about, no critical locations. This new way of retailing can
severely affect companies that have invested in expansion and adding capacity. It is
important to understand the trouble traditional retailers will face if online retailing takes
off.
The 1980s was a period of overexpansion and turmoil for retailers. By the end of the
decade, complaints about excessive retail space were being voiced. Profits were declining
and control of operating expenses became a paramount management objective. Retailers
reduced staff and minimized merchandising in order to enhance profits. Sales growth and
market share development were given second priority behind profit enhancement.
In the 1990s, companies are under pressure to grow and produce profit. An important
measurement of profit gains is gross margin per square foot. For many retailers, this
number is either growing slowly or declining, partially reflecting a less favorable product
mix and more competition. Inadequate productivity, both per worker and per unit of
space, is also reducing profit margins. Overbuilding also resulted in a growing shortage
of low-cost, entry-level workers for the retail industry. The shortage of entry -level
workers means that retailers are using under trained workers who are less able to
empathize with shopper needs-leading to a perception that retailers in general and
shopping centers in particular are unable or unwilling to provide quality service.
Clearly, with crowded domestic markets and competition constantly grinding away at
operating profit, new ways of retailing are being explored by forward-thinking companies
such as Wal-Mart.
Demographic Changes
Shopping patterns are beginning to change with the increase of time -strapped, two-career
couples and the aging of America. Value and time management are the consumer
concerns driving interest in online retailing. Recent retail data shows a decline in the
amount of time Americans are spending in shopping malls [EDR95]. The suggested
reasons vary: time constraints, safety concerns, and growing frustration with the lack of
courteous service and insufficient product information. Understanding the implications of
time constraints on consumer shopping behavior is important as they portend the trends
to come. For instance, Americans have openly embraced shopping channels like QVC
and Home Shopping Network and retailers like CUC International.
Todays time-strapped shoppers have less time and want better values, fewer hassles, and
more options. Today, a shopping trip requires a consumer to decide what he or she or the
family needs, brave the traffic on the way to a store, hunt for parking, find and select
items for purchase, take them to a checkout, wait in line, pay for the items, sometimes
bag them, and carry them back home. It can be a hassle and a lot of work, so most
working professionals have learned to dread shopping trips. As technology improves, it
may not be long before driving to the store gives way to online shopping with home
delivery as provided by Peapod.
In contrast, there is a growing segment of the population for whom time constraints are
less of a problem. The demographic outlook in the United States is for an increasing
share of older shoppers (age 50 and above) who prefer shopping at stores rather than
online. However, the product mix offered by many department stores and malls is
increasingly out of touch with the aging population and does not reflect the shift in
purchasing power. Also, with the aging of the population, there is evidence to indicate a
shift in consumer interest away from material goods and toward experiences, such as
travel and recreation. In addition, as people get older, they tend to become more frugal.

Retailers will need to concentrate on value by offering new product mixes. By this we
mean a product mix that includes not only merchandise but also bundles in entertainment
and “recreational” shopping with movie theaters, restaurants, bookstores, libraries, and
community meeting facilities. This sort of change is already occurring in bookstore
design (such as Borders Bookstores and Barnes and Noble), which include a variety of
facilities such as coffee shops. However, building shopping malls based on these new
business models is a risky venture and requires huge investments.
Consumer Behavior
Consumer behavior is more volatile than ever before, and companies need new ways of
responding to consumer needs and satisfying demand. According to one survey, the
typical consumer spent only four hours a month in a shopping mall in 1990 versus ten
hours in 1985, and sales per square foot dropped. Specialty retailing-power centers,
discount malls, discount stores, and catalog shopping-has become one solution for closely
monitoring consumer trends and reacting to them quickly. All of these alter-natives have
one thing in common: they provide consumers with a very large selection of producers
priced with deep discounts.
Consumers are no longer as influenced by brand names as they used to be. The
emergence of the value shopper is changing retailing. Today, the shopper is less willing to
pay the premium for the brand name and much more attentive to quality and value. The
decline in gross margins is the first evidence of the impact of that change, reflecting
lower initial markups and more discriminating shoppers in that segment. Clearly, retailers
that are focused on providing value-the best price, service, and selection-regardless of the
brand name will be successful. The real differentiating characteristic for retailers will be
in their ability to define what the broad or niche consumer segment is looking for,
identifying characteristics of customers in each target segment, and learning how to
bundle products and package brands so that they become the preferred choice for online
customers.

Technology Improvements in Electronic Retailing

Today, electronic retailing is still far from being a competitive threat to more traditional
store retailing (see Table), but it is becoming increasingly attractive as technology and
applications improve, and retailers gain experience.

Type of Outlet Definition and Examples

Shopping malls These include under one roof general

merchandise, drug stores, and groceries
department stores
Supercenters These consist of three or more anchor
stores with a total leasable area
between 200,000 and 700,000 square
feet.
Factory outlet mall These primarily stock name-brand
manufacturers’ items. These are
growing in stature and popularity as
well. Like power centers, factory outlet
malls are also gaining market share at
the expense of shopping malls.
Warehouse clubs These are retailers offering common
consumer products at near wholesale
prices when purchased in bulk
quantities.

Examples include Wall-Marts Sams Club, Price/Costco, and BJ’s wholesale.

Three dominant forms of electronic retailing channels are:

Television retailing, CD-ROM retailing, and online service based retailing, in which we
include Web-based retailing.

ELECTRONIC CRM (E-CRM)

Customer relationship management is the implementation of customer-centric business
strategies; which drives redesigning of functional activities; which demands re-
engineering of work processes; which is supported, not driven, by CRM technology.
Customer relationship management (CRM) is a term which is not only used by business
organizations today to maintain such good relationships with their present and old clients
and associates but the terminology is now being used by almost any type of organization
to create a beneficial environment for them and all in today's era of competition. CRM
has played an ever increasing and important role in the growth of all such organizations
those have developed a sense of understanding towards customer service and satisfaction
and implementing CRM.

As the internet is becoming more and more important in business life, many companies
consider it as an opportunity to reduce customer-service costs, tighten customer
relationships and most important, further personalize marketing messages and enable
mass customization. Together with the creation of Sales Force Automation (SFA), where
electronic methods were used to gather data and analyze customer information, the trend
of the upcoming Internet can be seen as the foundation of what we know as eCRM today.
We can define eCRM as activities to manage customer relationships by using the Internet,
web browsers or other electronic touch points. The challenge hereby is to offer
communication and information on the right topic, in the right amount, and at the right
time that fits the customers specific needs.

Effective implementation of E-CRM:

For improving customer relations through information technology, the firms should take
care of:

1. Budget Guidelines: Organizations look into the affordability of the info-tech

applications in its implementation. It means that it should conduct a techno-economic
feasibility analysis.

2. Technology issues: Business is dynamic and technology supported organization has to

understand the culture of the company. People need to understand the process for CRM
implementation, and to communicate properly the importance of the new CRM system
within the organization.
Information Technology in CRM:

 Installation of implementation support: this aims at providing 24*7 service

concept by the way of info-tech applications. Networked computers with data
communication devices will help in the installation of proper implementation
support.
 Data mapping and system conversion: With this technique one can map the data
and its interlinks to device a system that better suits the customers.
 Interface design and development: A better info-tech interface design and
development is a must for interacting with the customers for providing better
services to them and also to have the best interface among the various
functionaries of the organization.
 Report Design and development: A proper report design is a must in CRM.
Reports exist at various levels starting from customer compliant to the final stage
of fixing up the problem/ providing solution and to keep the proper database of
the customer complaint and solutions offered. In all these, a well-designed report
format using info-tech will help the organization to its success.
 GUI design and customization: For the better info-tech-based CRM, a proper
user-friendly interactive design of customer complaint format is important. One
can design input/ output formats with the help of multimedia applications that is
with the use of graphics, picture, text etc, which make the graphic user interface
effective and also it can be customized for different applications.
 System testing: The system, which is developed using IT applications, should be
put on field testing before it is totally implemented.
 Operation & support: The very important aspect of CRM is to effectively
operate and give the best support to the customers.
CHAPTER - 4
 MOBILE
COMMERCE
MOBILE COMMERCE

M-commerce (mobile commerce) is the buying and selling of goods and services through
wireless handheld devices such as cellular telephone and personal digital assistants
(PDAs). Known as next-generation e-commerce, m-commerce enables users to access the
Internet without needing to find a place to plug in. The emerging technology behind m-
commerce, which is based on the Wireless Application Protocol (WAP), has made far
greater strides in Europe, where mobile devices equipped with Web-ready micro-
browsers are much more common than in the United States.

In order to exploit the m-commerce market potential, handset manufacturers such as

Nokia, Ericsson, Motorola, and Qualcomm are working with carriers such as AT&T
Wireless and Sprint to develop WAP-enabled smart phones, the industry's answer to the
Swiss Army Knife, and ways to reach them. Using Bluetooth technology, smart phones
offer fax, e-mail, and phone capabilities all in one, paving the way for m-commerce to be
accepted by an increasingly mobile workforce.
As content delivery over wireless devices becomes faster, more secure, and scalable,
there is wide speculation that m-commerce will surpass wireline e-commerce as the
method of choice for digital commerce transactions. The industries affected by m-
commerce include:

 Financial services, which includes mobile banking (when customers use their
handheld devices to access their accounts and pay their bills) as well as brokerage
services, in which stock quotes can be displayed and trading conducted from the
same handheld device
 Telecommunications, in which service changes, bill payment and account reviews
can all be conducted from the same handheld device
 Service/retail, as consumers are given the ability to place and pay for orders on-
the-fly
 Information services, which include the delivery of financial news, sports figures
and traffic updates to a single mobile device

IBM and other companies are experimenting with speech recognition software as a way
to ensure security for m-commerce transactions.

Todays communications market is moving quickly toward the promise of

communications, commerce, and content available anytime, anywhere, and on any
device. Service providers are no longer simply network operators, but are evolving to
become providers of rich, interactive media, productivity services, and retail experiences.
Consumer expectations have also evolved to where the term wireless no longer implies
just voice service, but rather represents a complex infrastructure to which one connects in
real time, from any place to be informed, entertained, or engaged in visual or audio
communication, or to buy goods and services. The constant exchange of value among the
multitude of constituents is the pulse of this infrastructure, the underlying and measurable
component of which is wireless commerce. This suggests that service providers are not
only challenged with a need to quickly deploy new services, but also to measure and
account for those services while honoring a new ecosystem comprised of diverse
stakeholders and new and complex value chains.
This rapid evolution of the mobile market is causing service providers to seek back-office
solutions that will allow them to become participants in, and enablers of, this new
ecosystem without compromising their current services or support of existing subscribers.
Those back office systems that most directly impact the subscriber experience are, in fact,
the ones that have the greatest influence on a service providers success or failure. To be
successful, service providers must build a flexible and integrated wireless commerce
back-end that can be delivered with a subscriber-centric framework. The back-end must
support the rapid deployment of new services, while the subscriber-centric framework
ensures a high-quality, integrated, and consistent user experience carried through systems
including billing, customer care, prepaid, roaming, clearing, and self-care services.

PRODUCTS AND SERVICES AVAILABLE

1. Mobile ticketing

Tickets can be sent to mobile phones using a variety of technologies. Users are then able
to use their tickets immediately by presenting their phones at the venue.

Tickets can be booked and cancelled on the mobile with the help of simple application
downloads or by accessing WAP portals of various Travel agents or direct service
providers.

Mobile ticketing for airports, ballparks, and train stations, for example, will not only
streamline unexpected metropolitan traffic surges, but also help users remotely secure
parking spots (even while in their vehicles) and greatly facilitate mass surveillance at
transport hubs.

A) Mobile vouchers, coupons and loyalty cards

Mobile ticketing technology can also be used for the distribution of vouchers, coupons
and loyalty cards. The voucher, coupon, or loyalty card is represented by a virtual token
that is sent to the mobile phone. Presenting a mobile phone with one of these tokens at
the point of sale allows the customer to receive the same benefits as another customer
who has a loyalty card or other paper coupon/voucher. Coupons may be sent to a
customer utilizing location based services when he is in a certain physical proximity (e.g.
passing by the store). Mobile delivery enables:

 economy of scale
 quicker and easier delivery
 effective target marketing
 privacy-friendly data mining on consumer behavior
 environment-friendly and resources-saving efficacy

B) Content purchase and delivery

Currently, mobile content purchase and delivery mainly consists of the sale of ring-tones,
wallpapers, and games for mobile phones. The convergence of mobile phones, mp3
players and video players into a single device will result in an increase in the purchase
and delivery of full-length music tracks and video. Download speeds, if increased to 4G
levels, will make it possible to buy a movie on a mobile device in a couple of seconds,
while on the go.

C) Location-based services

Unlike a home PC, the location of the mobile phone user is an important piece of
information used during mobile commerce transactions. Knowing the location of the user
allows for location based services such as:

 local maps
 local offers
  local weather
 people tracking and monitoring

D) Information services

A wide variety of information services can be delivered to mobile phone users in much
the same way as it is delivered to PCs. These services include:

 news services
 stock data
 sports results
 financial records
 traffic data and information

Particularly, more customized traffic information, based on users' travel patterns, will be
multicast on a differentiated basis, instead of broadcasting the same news and data to all
Users. This type of multicasting will be suited for more bandwidth-intensive mobile
equipment.

2. Mobile banking

Banks and other financial institutions are exploring the use of mobile commerce to allow
their customers to not only access account information, but also make transactions, e.g.
purchasing stocks, remitting money, via mobile phones and other mobile equipment. This
service is often referred to as Mobile Banking or M-Banking. More negative issues like
ID theft, phishing and pharming are lurking when it comes to mobile banking,
particularly done on the mobile web. Net security technology free from redundancy and
paradigm shifts away from mobile web-based banking will be an optimal solution to
mobile banking in the near future.

A) Mobile brokerage

Stock market services offered via mobile devices have also become more popular and are
known as Mobile Brokerage. They allow the subscriber to react to market developments
in a timely fashion and irrespective of their physical location.
B) Auctions

Over the past three years mobile reverse auction solutions have grown in popularity.
Unlike traditional auctions, the reverse auction (or low-bid auction) bills the consumer's
phone each time they place a bid. Many mobile PSMS commerce solutions rely on a one-
time purchase or one-time subscription; however, reverse auctions are high return
applications as they allow the consumer to transact over a long period of time.

C) Mobile purchase

Mobile purchase allows customers to shop online at any time in any location. Customers
can browse and order products while using a cheap, secure payment method. Instead of
using paper catalogues, retailers can send customers a list of products that the customer
would be interested in, directly to their mobile device or consumers can visit a mobile
version of a retailers ecommerce site. Additionally, retailers will also be able to track
customers at all times and notify them of discounts at local stores that the customer
would be interested in.

D) Mobile marketing and advertising

Mobile marketing is an emerging concept, but the speed with which it's growing its roots
is remarkable. Mobile marketing is highly responsive sort of marketing campaign,
especially from brands’ experience point of view. And almost all brands are getting
higher campaign response rates. Corporations are now using m-commerce to expand
everything from services to marketing and advertisement. Although there are currently
very few regulations on the use and abuses of mobile commerce, this will change in the
next few years. With the increased use of m-commerce comes increased security. Cell
phone companies are now spending more money to protect their customers and their
information from online intrusions and hackers.

PAYMENT METHODS

The main payment methods used to enable mobile commerce are:

 premium-rate calling numbers,

  charging to the mobile telephone user's bill or
 Deducting from their calling credit.
 Registration of a credit card that is linked to a SIM card.

ADVANTAGES AND DISADVANTAGES OF MCOMMERCE

New advanced mobile applications typically involve high-speed services being accessed
by devices remotely, any where, at any time. Introduction of higher data speeds and
packeted ‘always on’ technology will enable mobile devices to be used to receive, send
and access a huge range of information and services in real time.

Across all e-commerce applications there are barriers to adoption. M-commerce seeks to
remove even further the sense of a consumer having to go to the business for products or
services, or needing to be skilled in multiple technologies or having to plan whenever
they want to access a business using the Internet.

Mobile phone-based devices are now permitting visual and data transfer (e.g. emails,
multimedia messaging, etc) across spectrums and networks usually preserved for voice
traffic alone. Evidence suggests as devices and networks converge with existing
technologies (e.g. Internet, mobile phones and video conferencing or TV broadcast
systems), consumers are reacting to the technology in a very positive manner.

To enable the improvement of customer use of data options m-commerce applications

and technology have evolved rapidly. While some features continue to evolve, these are
some of the more common advantages, and disadvantages of m-commerce.

Attributes Today Emerging Attributes

Ubiquity – independent access anytime Localisation – merging capabilities and sharing
Reachability – access on your demand from costs between retailers or a region wishing to
anywhere ‘push’ or promote mutual services and products
Form factors – use the device that suits Instant connectivity – access to applications on
their needs and user preferences (PDA, PC, demand using multiple technologies and more
mobile phone, etc.) network option.
Convenience and accessibility – time and Personalisation – use of existing technology to
space constraints are removed and people receive what you want, when and how you want
can access applications to their time and (i.e. remove advertising, etc.). Also means
preferences retailer has more direct access to an individual
Security – use of means such as Security user as devices are more personal than a PC or
Socket Layer (SSL) to provide personal TV that may have multiple users. Personalisation
security, privacy of communications, and also promotes brand positioning (control and
data integrity above that available in fixed targeting) and communication with a user in their
Internet environments. desired language.

Security remains the single largest barrier to adoption of m-commerce. For both business
managers and customers, concerns raised in surveys include security problems related to
data encryption, protecting the wireless connection from unauthorized access, hackers,
viruses and the like. Further limitations of m-commerce remain. They include:

 Small screens of most devices still limit types of file and data transfer (i.e.
streaming videos, etc.)
 standards guiding applications and technology development and connection(s)
 WAP and SMS limited to small number of characters and text.
  use of graphics limited
 less functionality for mobile Internet over mobile phones and existing generation
of handhelds than for mobile computers (laptops and next generation handhelds)
 user interface is often difficult to learn how to use
 limited bandwidth
 limited roll out of higher bandwidth mobile networks and devices (i.e. 3g
networks and wireless broadband networks are predominantly located in cities)
 cost of establishing mobile and wireless broadband infrastructure
 technology constraints of mobile devices (memory, processing power, display
capabilities, input methods)
 security of data moved across some mobile and wireless networks
 Businesses investment in hardware and infrastructure is seen as riskier as rapid
evolution of mobile and wireless technologies continues.

M-commerce activities: What does m-commerce mean for

customers?
Emerging mobile and wireless technologies mean that businesses can adopt m-commerce
strategies or blend such technologies with traditional e-commerce strategies in order to
better understand the customer. Advantages include providing the following services with
greater personalization, anywhere, any time.

Transactions

 banking
 stock trading and brokering
 shopping (real time - online - access, buying, purchasing or browsing)
 auctions
  betting
 reservations and ticketing
 e-cash
 sales force automation
 field service automation

Telemetry and passive data capture (silent commerce)

 status, sensing and measurement data

 logistics management (tracking, driver navigation systems, travel information and
positioning)
 wireless phones with various devices
 small distance wireless devices connecting people and technology or systems (i.e.
Bluetooth)
 traffic flow and road network management
 wireless scanning of items at a location or point of placement (i.e. mass road
transit scanning of vehicles, products at a checkout or products in a warehouse as
they move between scanned points, etc.)
 location triggered advertisements (e.g. SMS to mobile phone that promotes the
shop at the point the customer nears the location)
 Remote monitoring (e.g. security systems, farm management, etc.)

Entertainment

 music
 games
 graphics
 video
 interactive games

Information

 news
  maps/guides
 directories
 traffic/weather
 market data
 corporate
 browsing and directory services

Communication

 email
 chat
 corporate system access and security
 video/voice
 intranet
 extranet

All the above applications mean a business can use m-commerce to better understand the
customer, including their:

 individual preferences
 location and time factors
 use patterns
 technology and applications preferences
 technology skills and patterns of use

Trends
New advanced mobile applications typically involve high-speed services being accessed
by devices, remotely, anywhere, at any time. Introduction of higher data speeds and
packeted ‘always on’ technology will enable mobile devices to be used to receive, send
and access a huge range of information and services in real time.
As mobile technologies and networks mature, so does their reliability. This in turn
reduces uncertainties and lowers risk to both the business and the customer. New
international standards for network connectivity, data sharing, content management and
security have also ‘locked in place’ the more positive gains being made.

As such gains are made, so we begin to see more rapid technological development where
businesses see the value proposition ICTs can bring to business processes and
competitiveness.
CHAPTER – 5

E - SECURITY
5.1 INTRODUCTION TO E - SECURITY
In the computer industry, refers to techniques for ensuring that data stored in a computer
cannot be read or compromised by any individuals without authorization. Most security
measures involve data encryption and passwords. Data encryption is the translation of
data into a form that is unintelligible without a deciphering mechanism. A password is a
secret word or phrase that gives a user access to a particular program or system. The
Internet is a huge place that hosts several millions of people. As all the people are not
honest, illegal activity’ is inevitable. Statistics show that only 10% of computer client is
reported and only 2% of the reported client results in with convictions. There are two
basic types of criminal activities: The person who tries to understand and learn the
various systems and capabilities of any private network. In this case the person has no
intentions to do any damage or to steal any resources but tries to observe the system
functionality. For example teenagers who tries to enter into a network out of curiosity till
they are caught or deducted. The persons who uses the Internet and the Web to benefit
themselves by doing illegal activities such as, stealing softwares, information and causing
damage to resources. This type of criminal activity raises the concern for network
security. A large system like Internet has many holes and crevices in which a determined
person can easily find the way to get into any private network. There are many terms used
to signify the computer criminals.

DEFINITION

E-security refers to the process of ensuring the confidentiality, integrity, and availability
of electronic information and protecting it against malicious attackers who could use or
alter the information to disrupt critical national infrastructure and industry.

TYPES OF COMPUTER CRIMINALS

1. Hacker-is a person who has good knowledge about computers and tries to open the
data packets and steal the information transmitted through the Internet.
2. Cracker-is someone who specifically breaks into computer systems by bypassing or
by guessing login passwords. These persons enter into the network as authenticated users
and can cause any harm to the system.
3. Phreaks-are persons who hack phone systems. These people specifically try to scam
long distance phone-time for them to control phone switch capability or to hack company
automated EBX systems to get free voice-mail accounts or to raid companies existing
voice-mail messages.
4. Phracker-is the combination of freak and cracker. A phracker breaks into phone
systems and computer systems and specializes in total network destruction.

SECURITY ISSUES
Another major issue in the Internet security is misrepresentation and fraud. One of the
reasons of misrepresentation is that on the net it is easy to appear as anyone or anything
without the actual presence.
For example, shops site displaying goods, which the dealer may not have them
physically. But at the same time, creating a scam site is not as easy as it seems to be,
because one must host pages somewhere, which makes the provider responsible for the
content. For this reason, most Web site providers examines sites and have access to the
information that is been provided. With the rapid growth in use of Internet, in future the
number of fraud cases in which perpetrators create their own provider site will probably
increase. This is possible specially, in case of offshore servers where laws are more
favorable to the criminal and enforcement will be very difficult. For this reason, it is
increasingly important for Web users to protect themselves.

Encryption
Encryption is a technique for hiding data. The encrypted data can be read only by those
users for whom it is intended. Nowadays various encryption techniques are available.
One of the available techniques commonly used for encryption is Public Key.
In a Public Key encryption system each user has two keys-public key and private key.
The encryption and decryption algorithms are designed in a way so that only the private
key can decrypt data that is encrypted by the public key. And the public key can decrypt
data, encrypted by the private key. Therefore, one can broadcast the public key to all
users.
For example, Kelvin has a private key known him only. Another user, Carlo has a private
key that known to her only. Both users have public keys that every other user knows.
Kelvin wants to send a secure message to Carlo. But he wants that only Carlo should read
the message and she should know that Kelvin has sent the message to her. For this,
Kelvin encrypts his message using the Carlos public key that is known to all other users.
However, once the message is encrypted using the Carlos public key only Carlos private
key can decrypt the message that is known only to Carlo.
When Carlo receives the message from Kelvin, she decrypts with her private key and is
able to read the message. In case Carlo replies Kelvin back then she should encrypt the
message with Kelvins public key that can only be decrypted by Kelvins private key.
POTENTIAL

In recent years, information technology has proven to be a critical tool in facilitating the
near-instant delivery of information and in increasing the availability of information to
billions of new organizations and users. As more and more organizations recognize the
potential that ICT can bring, they have begun to use it to exchange increasingly important
information, creating a need to have an e-Security strategy to ensure that important
information is protected from attackers.

There are several important factors to remember about e-Security strategy and
information risk management. First, the function of e-Security is not to remove risk
completely, but to assess what the acceptable level of risk is for an information system
and work to bring the risk down to that level – risk cannot be completely eliminated but
can be managed. Second, managing information risk is not a one time process, it must be
undertaken on a continuous basis – information technology is constantly growing and
changing and organizations must adapt to ensure information security against malicious
attackers who are also evolving with the technology. Third, it is inevitable that e-Security
systems will be breached at some point.

In developing an e-Security strategy, it is important to create a balanced program that

considers all organizational and technical levels – management, operational, and
technical controls are all important. An organization must first classify its information
assets and assess the potential impact of their loss, and then develop baseline security
controls to ensure that a minimum level of security is in place for the information it
assessed. Security controls must be continually tested, refined, and monitored. The cycle
of categorizing risk and implementing controls must work on a continual basis as
technology evolves and as new information becomes available within the system.

Several sets of minimum e-Security standards are already available which can be used in
developing and implementing an e-Security strategy for federal governments. The ISO
(International Organization for Standardization) has extensive e-Security standards which
are used by governments and international organizations across the world, in particular
ISO 27001 which is used by the World Bank.

A legal framework that provides the foundation of a national e-Security strategy is an

important element in protecting national information systems. Law that protects the
integrity of electronic information and transmission of electronic information is a
fundamental component which allows e-Security policies to legally exist and which
allows for enforcement in the event of a breach.

It is important to recognize national information technology infrastructure as a critical

element of e-Security. In some cases, this infrastructure may be owned and managed by
the private sector. If so, it is important to bring in private sector organizations to ensure
that all internal e-Security measures are applied externally as well. This should
accompany oversight and frequent audits.

LIMITATIONS

The primary limitation to e-Security strategy is the inevitability of breaches of security

measures. There is always inherent risk in the transmission of electronic information and
the function of an e-Security strategy is to manage that risk so it exists at an acceptable
level for a given set of information. As such, breaches will occur regardless of existing
security measures and it is the job of e-Security management to continually evaluate and
refine e-Security strategy to keep current with technology.
5.2 SEARCH ENGINES

Getting the Best from Search Engines:

Search engines drive traffic to your web pages. They are the Yellow Pages of the internet.
Estimates vary, and your site will have its own figures, but between 50% to 80% of traffic
could come from the top ten major search engines. Your site will need to be registered.
There are three ways to do this: Wait for the search engine to find the company website
by following a link from another site. This may take a very long time and is not
recommended. Go to each search engine and select their Submit URL option, entering the
required details.
Use a human or software page submission service. Whichever route is chosen, remember
that while some search engines will index pages within days, others can take months or
even a year to record a site. Normally indexing is free but several engines now offer a
paid-for express service.

Using a URL to Promote your Company Online:

The Unique Resource Locator is the address typed into a web browser’s toolbar. Search
engines will use it to answer their users’ searches. Your company name may be the first
thing that visitors look for, therefore it makes sense to own ‘yourcompanyname.yle*
alternatively, visitors may type in what they are looking for and add yle to it. It is
relatively quick and easy to register related URLs. A floor mop company might register,
for example, FloorMop.yle, CleanFloors.yle and MrsMop.yle. As soon as these are
registered they can be directed at an existing company web page
.
Meta Tags Help Find Traffic for your Site:
What are they?
HTML coded descriptions of site title, content and keywords.
Why are they so important?
Search engine spiders use meta tags to identify relevance of your site to a search. Search
engines then compare the words in a search with the coded descriptions and with the
pages content that details company products and services.
View Your Page Tags with View Source:
In Navigator and Explorer right click while viewing the web page for the correct menu
or, in page editing software, view page properties.

Spiders: Software programs that run over web pages and index their contents.

Seven Important Keyword Concepts:

When writing keywords use terms that visitors searching for products will use, regardless
of whether or not they know your company. Examples are from a floor mop company.
Concepts clean carpets, sparkling floor, hygienically clean floors
Brands product brand names (yours, not competitors)
Company names company name (current and previous names)
Your name well-known personnel - the chairman through to local sales representatives.
Common words wax, polish, cloth, mop, cleaning fluid, etc. Industry keywords ISO
standards, regulations, legislation, trade bodies. Phrases from advertising strap lines to
the language used in company literature Generic phrases are fine - however for example,
even if its not your trade name. But only use 970 Txi Turbo Speed if it’s one of your
products.

Four Ways to Make Keywords Work for you:

1. Title: include and repeat in the title of each page the keywords that people might
search for to find the topic on that page.
2. Prominence: keywords that are more prominent will be weighted much higher by
search engines. Most engines give higher rankings to keywords near the beginning of the
title and to those that are close to the beginning of the page.
3. Length of Page: keep your pages short. Repeat keywords frequently, particularly in
the first 3-5 lines of the pages. Some engines ignore or largely ignore wording beyond the
first paragraph or two.
4. Observe and experiment: use activity log files to understand which keywords work
best with each Search Engine
Four Tips to Avoid Mistakes in Page Design:
1. Repetition: never repeat a keyword more than 6-7 times on a page.
2. Avoid frames: not all spiders (eg: Altavistas) will follow links that are in frames.
3. Provide a link back to the home page: the first page your visitors find is unlikely to
be your home page. Always place a link back to your home page.
4. First impressions count: most search engines will display the first few lines of text.
Summarize contents in those first few lines.

Use Page Text to Support Meta Tags:

Now that it has read your meta tags, the search engine will compare them with the words
on the web page. Most engines read at least the first seven to ten lines of text. Make the
engine’s life easy. Put as many of the meta tag words and phrases into your opening
paragraphs as possible. A higher correlation between meta tags and copy will get a higher
ranking. The challenge, of course, is to include as many tags as possible without making
the opening paragraphs read as if they were written by a five year- old. There is a skill in
this. But look at the web pages that top search results chances are, they’ve made a success
of it.

Gateway Pages Point the Way:

The more information that is crammed into a single web page, the less importance a
search engine will attach to each topic on the page. Describe in equal lengths five
products on the same page and each will receive one fifth of the engine’s weighting. Put
fifty products on the same page and each will receive just 2% weighting (not much!). If
your company has many products it will pay to create individual product pages and to
register main product groups separately with search engines.

Alt Tags Turn Pictures into Words:

Search engine spiders can’t see pictures. They rely on alt tags – a few words that describe
the image - to tell them what is in the picture. View them by placing the cursor over a
picture: if a short line of text appears after a few seconds, that’s the alt tag. Tell the search
engine what’s in the picture. If it’s a company logo, don’t use company logo as the alt tag.
This is meaningless. Give the engine something to work with: Brasso widgets, quality
brass widgets to buy online is good, especially if all these words are in your page meta
tags.

Learn from Your Competitors:

Try using search engines to find your own site. How easy is it? If competitors are placed
higher in searches, take a look at their pages and meta tags. What have they done to merit
a higher ranking? Don’t forget to view the websites of your international competitors,
too. Check the server log files: what are the most popular search terms used to find your
site? Try out those searches and check out any pages ranking above your own.

Once a Page is well Ranked Keep it there:

Engines re-visit web pages to find out if they have changed. The more often they change,
the more often they are visited. And engines’ results lists usually reflect how recently a
page was up-dated. Up-date pages regularly.

And Finally, Momentum:

Many search engines favor sites that rank highly in previous searches and that were
clicked upon. The better the rankings a site achieves, the more the engine will do to keep
it at this level. This makes it tougher to break into the top results. But once a page makes
it to the top, it will be more visible in search results, be visited more often and quickly
becomes harder to dislodge. Get a page up there. The effort repays itself.
Action Planning:
Is the site designed to be search-engine friendly?
Are meta tags and alt tags in place?
 Check that they are the right tags for your company.
 Search for a meta tag generator if you’re not sure. Is the site registered with major
search engines?
 Search for the site. If it’s not top of the search, find out what your higher placed
competitors did to earn their ranking.
 Make some improvements. Try changing one thing on each page.
 Measure what effect this has by reading the log files