E-business
E-business system - III
Petr Suchánek
E-business

Outline of the lecture
•Customer oriented systems
•Identifying customer target groups
•Advantages and disadvantages of e-business and e-commerce for customers and sellers.

Customer oriented system
•The Customer-oriented solutions are complete products developed for the concrete Customer.*
•Every Customer-oriented system results from the individual work with the client taking into
account specific details of his business processes.*
•The “ordered” software allows to solve problems that could not be solved with standard solutions.*
•The Customer-oriented system is made according to the principle: “The system for the user, but not
the user for the system”.*
*http://www.ssl.obninsk.ru/web/002/english.nsf/index/kis-zak

Identifying customer target groups

•Given the current state of the economy, having a well-defined target market is more important than
ever.*
•Targeting a specific market does not mean that you are excluding people who do not fit your
criteria.*
•Rather, target marketing allows you to focus your marketing dollars and brand message on a
specific market that is more likely to buy from you than other markets.*
•With a clearly defined target audience, it is much easier to determine where and how to market
your company.*
*https://www.inc.com/guides/2010/06/defining-your-target-market.html

Identifying customer target groups – target market

*https://en.wikipedia.org/wiki/Market_segmentation
** https://www.oberlo.com/blog/target-audience

Identifying customer target groups

•Look at your current customer base
ØWho are your current customers, and why do they buy from you? Look for common characteristics and
interests. Which ones bring in the most business? It is very likely that other people like them
could also benefit from your product/service.
*https://www.inc.com/guides/2010/06/defining-your-target-market.html

Identifying customer target groups

•Analyze your product/service*
ØWrite out a list of each feature of your product or service. Next to each feature, list the
benefits it provides (and the benefits of those benefits). For example, a graphic designer offers
high-quality design services. The benefit is a professional company image. A professional image
will attract more customers because they see the company as professional and trustworthy. So
ultimately, the benefit of high-quality design is gaining more customers and making more money.
ØOnce you have your benefits listed, make a list of people who have a need that your benefit
fulfills. For example, a graphic designer could choose to target businesses interested in
increasing their client base. While this is still too general, you now have a base to start from.
*https://www.inc.com/guides/2010/06/defining-your-target-market.html

Identifying customer target groups

•Choose specific demographics to target*
ØFigure out not only who has a need for your product or service, but also who is most likely to buy
it. Think about the following factors:
vAge
vLocation
vGender
vIncome level
vEducation level
vMarital or family status
vOccupation
vEthnic background
Ø
*https://www.inc.com/guides/2010/06/defining-your-target-market.html

Identifying customer target groups

•Consider the psychographics of your target*
ØPsychographics are the more personal characteristics of a person, including:
vPersonality;
vAttitudes;
vValues;
vInterests/hobbies;
vLifestyles;
vBehavior.
•Determine how your product or service will fit into your target's lifestyle. How and when will
your target use the product? What features are most appealing to your target? What media does your
target turn to for information? Does your target read the newspaper, search online, or attend
particular events?
*https://www.inc.com/guides/2010/06/defining-your-target-market.html

Identifying customer target groups

•Evaluate your decision*
ØOnce you've decided on a target market, be sure to consider these questions:
vAre there enough people who fit my criteria?
vWill my target really benefit from my product/service? Will they see a need for it?
vDo I understand what drives my target to make decisions?
vCan they afford my product/service?
vCan I reach them with my message? Are they easily accessible?
*https://www.inc.com/guides/2010/06/defining-your-target-market.html

E-business advantages to customer

•Wide range of products and services*
ØElectronic commerce through internet enables the customers to choose a product or service of their
choice from any vendor anywhere in the world.
ØDue to space constraint, a vendor can stock only a minimum amount of goods in the physical store.
ØA virtual store enables a business organization to stock a lot of goods without considering the
inventory cost.
ØHence, a business also provides a lot of choice to consumers to choose a product of his /her
choice.
*https://accountlearning.com/top-5-advantages-of-e-commerce-to-consumers/

E-business advantages to customer

•Convenience*
ØCustomers can buy any product from anywhere in the world without moving away from their workplace
or home through internet.
ØDue to bad weather, people may restrict their shopping even if necessity arises.
ØE-commerce provides convenience to buy goods or services without causing any physical constraints
to the consumers.
•Saves time
ØTime saving is one of the prime benefits of online shopping.
ØTime taken for selection, buying and paying for an online product may not take more than 15
minutes; the products are delivered to customers’ door steps within a week.
ØIt saves delivery time for the buyers.
*https://accountlearning.com/top-5-advntages-of-e-commerce-to-consumers/

E-business advantages to customer

•Saves money*
ØThe cost incurred by the business on the middlemen generally falls on the consumer.
ØSince the middlemen are eliminated, the customer is free from bearing the cost of the middlemen.
ØTo attract customers and to combat competitors, several business organizations offer product and
services at cheaper price.
ØCertain goods like e-books, music audio clips, software can be purchased and delivered through
internet.
ØIt saves cost for the buyers.
*https://accountlearning.com/top-5-advntages-of-e-commerce-to-consumers/

E-business advantages to customer

•Adequate information*
ØInternet is used as a main vehicle to conduct transactions in e-business.
ØInternet allows customers to search for product information, compare the prices and benefits and
finally evaluate its value before committing purchase.
ØThrough internet, customers can get their queries clarified and track their delivery status when
the goods are being sent to them.
ØIf any doubts arise while handling the products, the customers can easily contact the business
through internet.
*https://accountlearning.com/top-5-advntages-of-e-commerce-to-consumers/

Advantages of Ecommerce*

•Faster buying/selling procedure, as well as easy to find products.
•Buying/selling 24/7.
•More reach to customers, there is no theoretical geographic limitations.
•Low operational costs and better quality of services.
•No need of physical company set-ups.
•Easy to start and manage a business.
•Customers can easily select products from different providers without moving around physically.
*http://www.esalestrack.com/blog/2008/09/advantages-and-disadvantages-of.html

Disadvantages of Ecommerce*

•Any one, good or bad, can easily start a business. And there are many bad sites which eat up
customers’ money.
•There is no guarantee of product quality.
•Mechanical failures can cause unpredictable effects on the total processes.
•As there is minimum chance of direct customer to company interactions, customer loyalty is always
on a check.
•There are many hackers who look for opportunities, and thus an ecommerce site, service, payment
gateways, all are always prone to attack.
*http://www.esalestrack.com/blog/2008/09/advantages-and-disadvantages-of.html

Advantages and disadvantages of e-business

•https://medium.com/@briannawillsss/18-major-benefits-of-e-commerce-business-for-retailers-customer
s-in-2015-63c5fc87f679
•https://www.adeogroup.co.uk/ecommerce-benefits/
•https://www.aonerank.com/digital-marketing-learning/benefits-ecommerce-customers/
•https://www.tutorialspoint.com/e_commerce/e_commerce_advantages.htm
•https://factory.hr/blog/benefits-of-ecommerce-for-businesses-and-consumers

The end