What is Market?

A market is a network or interactions and

relationships where information, products,
services and payments are exchanged.

When the market is electronic, the business

center is not physical building but rather a
network-based location where business
interactions occur.
What is Digital Market?
A place where buyers and sellers negotiate,
submit bids, agree on orders and if
appropriate finish the transactions
electronically.
The digital market is the place where
shoppers and sellers meet.
How Does a Digital Market work?

1. Buyer logs on to the marketplace

2. Buyer searches for product
3. Buyer selects product
4. Buyer orders product
5. Purchase order sent to seller
6. Seller confirms order
7. Buyer pays for product
8. Payment information sent to bank
9. Credit checked
10. Credit approved
11. Product shipped
12. Product received
Relationships in Digital Markets

Two types of relationships may exist

Customer Seller linkage is established at

the time of
transaction and may be one transaction
only (i.e.,
purchase transaction)
Customer / Seller purchase agreement is
established
whereby the seller agrees to deliver
services or
products to customer for a defined period
of time
(i.e., subscription transaction)
Participants in Digital Markets

Transaction Handlers
Buyers
Brokers
Sellers
Inter-organizational Information System
(IOS)

An IOS involves information flow

among two or more organizations.
Its major objective is efficient
transaction processing, such as
transmitting order, bills and
payments using EDI or extranets.
There is no negotiation just
TYPES OF IOS

Electronic Data Interchange (EDI)

Electronic Fund Transfer (EFT)
Electronic Forms
Integrated messaging
Shared Databases
Supply Chain Management
 SELLING ON THE WEB
Function Requirements for an Electronic Storefront

1. Search for, discover, and compare products for purchase

2. Select a product to be purchased and negotiate or
determine its total price
3. Place an order for desired products
4. Have their order confirmed, ensuring that the desired
product is available
5. Pay for the ordered products (usually through some form
of credit)
6. Verify their credit and approve their purchase
7. Have orders processed
8. Verify that the product has been shipped
9. Provide feedback to the seller
 Outsourcing Vs. Insourcing
Insourcing  build and run the electronic
storefront in-house

Large companies wanting:

• to “experiment” with e-commerce without a great
investment
• to protect their own internal networks
• to rely on experts to establish their sites

Outsourcing  contract with an outside firm

Three types of providers

Internet Malls— offers cross-selling from one store to another and
provides a common payment structure
Internet Service Providers— focused on operating a secure
transaction environment; not on store content
 ADVERTISEMENT METHODS
BANNER
An interactive ad placed on a webpage that is linked
to an external advertiser's website or another
internal page within the same website. The file size
of the image should be about 7kb to 10kb. The
smaller the file size, the quicker it loads.
There are two types of banners:
Keyword banner : When a pre-determined word is
queried form the
search engine
 ADVERTISEMENT METHODS…(cont)
There are several different forms of placing banner
advertising on the internet on other’s web site.
The most common forms are
Banner Exchange : means the company A agrees to
display a banner of
company B in exchange for
company B displaying
company A’s web ad.

Paid Advertisement : Purchasing banner ad place

on the internet is
 ADVERTISEMENT METHODS…(cont)
SPLASH SCREEN
A splash screen is an initial web site page e use to
capture the user’s attention for a short time to tell
the user what kind of browser and other software
they need to view the site.

URL (Uniform Resource Locator)

Every web site has a unique address referred to as
a URL (uniform resource locator).
As you become familiar with browsers, you may
enter the exact URL at the address field for direct
 ADVERTISEMENT METHODS…(cont)
E-MAIL
Another way to advertise on the internet is to
purchase email addresses. The advantages of this
approach are its low cost and the ability to reach a
wide variety of targeted audiences. Most companies
develop a customer database to whom they send
emails. Email is emerging as a marketing channel
that affords cost-effective implementation and
better, quicker response than other advertising
channels.
CHAT ROOMS
 DIGITAL DESIGN
Digital Design is the art and process of
creating a single Web page or entire Web sites
and may involve both the aesthetics and the
mechanics of a Web site's operation although
primarily it focuses on the look and feel of the
Web site.
Some of the aspects that may be included in
Web design or Web production are graphics
and animation creation, color selection, font
selection, navigation design, content creation,,
JavaScript programming, and ecommerce
 DIGITAL DESIGN AND APPEARANCE

The media or method used to create the

appearance of a web site can have a direct
influence on its USABILITY and VISIBLITY.

Web sites built using the techniques of flash

multimedia are very often great works of art,
and are beautiful to look at if you have the time,
but are usually flops when it comes to
accomplishing their purpose.

The reason: their technology is too far ahead of

 DIGITAL DESIGN AND
APPEARANCE….. (cont)

Websites designed and constructed with

HTML based media are more successful,
because they are better suited to current
internet connection methods.

The two main factors that determine a

website's appearance are color and
layout.
 USIBILITY

Usability is a quality attribute

that assesses how easy user
interfaces are to use. The
word "usability" also refers to
methods for improving ease-
of-use during the design
process.
 WHY USIBILITY IS IMPORTANT

On the Web, usability is a necessary condition

for survival.
1. If a website is difficult to use, people leave.
2. If the homepage fails to clearly state what a
company offers and what users can do on
the site, people leave.
3. If users get lost on a website, they leave.
4. If a website's information is hard to read or
doesn't answer users' key questions, they
leave.
 WHY USIBILITY IS IMPORTANT

IMPORTANT NOTE HERE?

There's no such thing as a user reading a
website manual or otherwise spending much
time trying to figure out an interface.

There are plenty of other websites available;

leaving is the first line of defense when users
encounter a difficulty.

The first law of e-commerce is that if users

 VISIBILITY

No web site will be successful

if it isn't visible on the
internet.
The two main factors that will
determine how many people
see a website are:
 Quality of content
 HTML
1. HTML stands for Hyper Text Markup Language
2. HTML is language which is used to make
formatted web pages.
3. A web page is a file
4. A web page is a HTML file
5. Web page documents have the file extension .html
or .htm
6. HTML is a tag based language
• You Can Format Text
• You Can Create Lists of Things
• You Can Set Up Links to Other Pages
• You Can Insert Images
• You Can Format Information in Tables
To learn HTML, we require:

1. NOTEPAD
2. BROWSER
Tags
1. A <TAG> tells the browser to do something.
2. Some Tags have Attributes
3. An ATTRIBUTE goes inside the <TAG>
and tells the browser how to do it.
The base tag for an
HTML document is
the <HTML> tag.
HTML uses
Tags Starting Tag

<HTML> Closing Tag

The <HEAD> tag sets
initial document
information off from the
rest of the document.
That information can
include <TITLE>, and
other document
Every HTML document
needs a pair of HEAD
tags.
<HTML> HEAD
OPENING
<HEAD> &
CLOSING
</HEAD> TAG

</HTML>
The <TITLE> tag tells the
browser what you've named
your page. The title of the
page usually shows up in
the title bar of the browser
with which you're viewing
the page. The <TITLE> tag
With in the HEAD
tags are the TITLE
tags. TITLE
OPENING

<HTML> &
<HEAD> CLOSING
TAG
<TITLE> </TITLE>
</HEAD>
</HTML>
The <BODY> </BODY>
tags hold the content of
your HTML document.
The bulk of the page is
within the BODY tags.

<HTML> BODY
<HEAD> OPENING
<TITLE> </TITLE> &
CLOSING
</HEAD> TAG
<BODY>
</BODY>
</HTML>
1. BOLD <B>……</B>
2. ITALIC <I>……</I>
3. UNDERLINE <U>……</U>
4. STRIKEOUT <S>……</S>
5. CENTER ALIGN <CENTER> ….. </CENTER>
6. CHANGE LINE <BR>
7. PARAGRAPH <P>….</P>
8. SUPERSCRIPT <SUP>….</SUP>
9. SUBSCRIPT <SUB>….</SUB>
To change font size
and font color we
use following tags

<font>
</font>
<font>
Attributes
• Size
• Color
• face
Fonts come in 7 sizes:

The default font size is 3

YAHOO GROUP
e_commerce_2006