Company Name

Company Industry

E-Commerce Section #

Student Name

Version
Tracking Table

Revision #

Action/Task

Section #s
Impacted

Done By

Date

Table of
content
.docx#_Toc326427840″>1. Company Overyview
& Products.4
.docx#_Toc326427841″>1.1. Company.4
.docx#_Toc326427842″>1.1.1.The Company Name.4
.docx#_Toc326427843″>1.1.2.Mission and Vision..4
.docx#_Toc326427844″>1.1.3.The Business Models.4
.docx#_Toc326427845″>1.1.4.Targeted Customer Base.4
.docx#_Toc326427846″>1.1.5.Desired Market Image.4
.docx#_Toc326427847″>1.2. Products.4
.docx#_Toc326427848″>1.2.1.Product Catalogue.5
.docx#_Toc326427849″>1.2.2.Value Proposition..5
.docx#_Toc326427850″>1.2.3.Catalogue Focus.5
.docx#_Toc326427851″>1.2.4.Pricing Guidelines.5
.docx#_Toc326427852″>2. Marketing.5
.docx#_Toc326427853″>2.1. Web Marketing..5
.docx#_Toc326427854″>2.1.1. Advertising Focus
& Methods.5
.docx#_Toc326427855″>2.1.2. Web Marketing
Research..5
.docx#_Toc326427856″>2.1.3. Projected Future
Marketing Directions.5
.docx#_Toc326427857″>2.2. Search Engine
Marketing..5
.docx#_Toc326427858″>2.2.1. Search Engine
Optimization..6
.docx#_Toc326427859″>2.2.2. Search Engine
Advertising.6
.docx#_Toc326427860″>2.2.3. Other Directories
Marketing.6
.docx#_Toc326427861″>2.3. Affiliations.6
.docx#_Toc326427862″>2.3.1. Affiliation Services.6
.docx#_Toc326427863″>2.3.2. Reciprocal
Arrangements.6
.docx#_Toc326427864″>2.4. M-Commerce Marketing..6
.docx#_Toc326427865″>2.5. E-mail Marketing..6
.docx#_Toc326427866″>2.6. Other Marketing..6
.docx#_Toc326427867″>3. Social Network & Community Marketing & Customer
Reviews Management7
.docx#_Toc326427868″>3.1. Social Network
Marketing..7
.docx#_Toc326427869″>3.1.1.Advertising Focus & Methods.7
.docx#_Toc326427870″>3.1.2.Methods of Social Network Marketing Research..7
.docx#_Toc326427871″>3.1.3.Projected Future Marketing Directions.7
.docx#_Toc326427872″>3.2. Community Marketing..7
.docx#_Toc326427873″>3.2.1.Facebook Fans or Similar7
.docx#_Toc326427874″>3.2.2.Facebook Ads or Similar7
.docx#_Toc326427875″>3.2.3.Tweeter or Similar7
.docx#_Toc326427876″>3.2.4.LinkedIn or Similar7
.docx#_Toc326427877″>3.3. Customer Reviews
Management7
.docx#_Toc326427878″>3.3.1. Identifying &
Tracking Reviews.7
.docx#_Toc326427879″>3.3.2. Using Positive
Reviews.7
.docx#_Toc326427880″>3.3.3. Mitigating Negative
Reviews.8
.docx#_Toc326427881″>4. Order Fulfillment8
.docx#_Toc326427882″>4.1. Supply Chain
Management8
.docx#_Toc326427883″>4.1.1. Pipeline model8
.docx#_Toc326427884″>4.1.2. Purchasing Technology.8
.docx#_Toc326427885″>4.1.3. Delivery Methods and
Technology.8
.docx#_Toc326427886″>4.1.4. Other (in case you have content that does not fit
the above)8
.docx#_Toc326427887″>4.2. Marketing Technology.8
.docx#_Toc326427888″>4.2.1. Website.8
.docx#_Toc326427889″>4.2.2. Webhosting.9
.docx#_Toc326427890″>4.2.3. Shopping Cart9
.docx#_Toc326427891″>4.2.4. Customer Support9
.docx#_Toc326427892″>5. Payment, Security and Reliability.9
.docx#_Toc326427893″>5.1. Payment Methods &
System…9
.docx#_Toc326427894″>5.1.1. Credit Cards.9
.docx#_Toc326427895″>5.1.2. Wallets (PayPal or
Similar)9
.docx#_Toc326427896″>5.1.3. MicroPayments.10
.docx#_Toc326427897″>5.1.4. Other Payment Methods.10
.docx#_Toc326427898″>5.1.5. Return Policies &
Procedures.10
.docx#_Toc326427899″>5.1.6. Non-Payment Policies
& Procedures.10
.docx#_Toc326427900″>5.1.7. Other10
.docx#_Toc326427901″>5.2. Security Methods
& Systems.10
.docx#_Toc326427902″>5.2.1.Site Security.10
.docx#_Toc326427903″>5.2.2.mCommerce Security.10
.docx#_Toc326427904″>5.2.3.Payment Security.10
.docx#_Toc326427905″>5.2.4.Site Trust Methodology.10
.docx#_Toc326427906″>5.2.5.Other (if you need a
topic not included above)10
.docx#_Toc326427907″>5.3. Reliability Methods
& Systems.10
.docx#_Toc326427908″>5.3.1.Site Reliability.10
.docx#_Toc326427909″>5.3.2.Payment Systems Reliability.11
.docx#_Toc326427910″>5.3.3.Webhost Reliability.11
.docx#_Toc326427911″>5.3.4.mCommerce Reliability.11
.docx#_Toc326427912″>5.3.5.Other (if needed)11
.docx#_Toc326427913″>6. Legal, Ethical and Social Policies and Procedures.11
.docx#_Toc326427914″>6.1. Ethics Policies &
Procedures.11
.docx#_Toc326427915″>6.2. Legal Policies &
Procedures.11
.docx#_Toc326427916″>6.3. Other Social
Responsibility Policy & Procedures.11
.docx#_Toc326427917″>7. References.12
.docx#_Toc326427918″>Appendix 1: Website Sample HomePage.13
.docx#_Toc326427919″>Appendix 2: WebHosts Analysis Table.14
.docx#_Toc326427920″>Appendix 3: Shopping Cart Analysis Table.15
.docx#_Toc326427921″>Appendix 4: Sample Startup Catalogue.16
.docx#_Toc326427922″>Appendix 5: Payment Terms &
Conditions.17
.docx#_Toc326427923″>Appendix 6: Security Policy.18
.docx#_Toc326427924″>Appendix 7: Privacy Policy.19

1.
Company Overyview & Products
1.1.
Company
.
1.1.1.
The Company Name
The choice of a company name is one of the most difficult decisions
which have to be taken at the beginning of every business, for the name can
indeed decide, to a certain extent, the success of a company (Francis, et al.,
2002).
1.1.2.
Mission and Vision
The company philosophy as well as the self-concept and desire public
image should be clearly phrased in the mission and vision of a company
(Williams, 2008).
1.1.3.
The Business Models
There are five major e-commerce business models: business to business, business to customer,
customer to customer, peer to peer and m-commerce business models (Laudon and
Travers, 2012). These business models can also be classified into sub-sections.
(Note, this section will be updated
during the course as more models are added to the business. For example, in week 3 the business might be
eCommerce only but then adds mCommerce and then Social Networking. If the business has physical sales they
might be acknowledged here but it should be indicated that the brick portion
of the business is not addressed in this plan.
Laudon & Travers (2011) identify five major
revenue models, namely the advertising, the subscription, the transaction fee,
the sales and the affiliate revenue model.
Krmer runs primary the sales revenue model by selling goods,
information, or services to customers (p. 321). (This section will also continue to be built
as the business model expands so does the revenue model)
1.1.4.
Targeted Customer Base
A proper targeting of customers is the key to a
successful business, at least for start-up companies which have not the
resources to enjoy economies of scale (Laudon & Traver, 2011, p. 386).The
desired customer base normally is identified as the unmet demand that this
business can uniquely fulfill. It is
called in strategy course the blue ocean if large, and some now call it the
blue puddle if small.
1.1.5.
Desired Market Image
The desired market image of a company normally finds
its origins in its mission and vision.
1.2.
Products

1.2.1.
Product Catalogue

1.2.2.
Value Proposition
In order to be success each company has to develop an
elaborate customer value proposition. A customer value proposition identifies
target customers, order winners and qualifiers and those business operations
where resources have to be allocated in order to meet the targeted customers
requirements and preferences (Anderson, et al., 2006).
1.2.3.
Catalogue Focus

1.2.4.
Pricing Guidelines
When it comes to the pricing of products, companies have
to take various factors into consideration, beginning from the costs of the
products and ending with the prices of the competition. (How will you establish pricing. Look up things like Gross Margin whereby the
price is a set percentage of cost eg.
160% (100% is the product cost
from vendors and 60% is the combination of the costs incurred between purchase
and sale plus the profit. So, if profit
is 10% this says that all other costs are 50% of purchase price. )
2.
Marketing
2.1.
Web Marketing
What marketing
methods and materials (in summary here) will the company use eg website,
uTube, affiliations (ads on other sites).
2.1.1.
Advertising Focus &Methods

2.1.2.
Web Marketing Research
What kind of research will the company do to determine
the most effective methods of marketing its site. Anticipate this changing over time.
2.1.3.
Projected Future Marketing Directions
What are your plans for the future. These are the kinds of marketing that you
might not be able to afford to do as a startup but plan to do in your 3 to 5
year plan.
2.2.
Search Engine Marketing
Search engine marketing aims to increase the traffic
on ones website. How will the company
market via any search engines (eg Google AdWords intermittently)
2.2.1.
Search Engine Optimization
When entering the company name or the keywords at Google, . This gives a clear indication
that uses search engine optimization.
The website is maintained in a way that maximizes its visibility and thus
achieves a high ranking. Relevant keywords like have been well place at the
website. The URL is registered at Google. In addition to the organic
inclusions, a paid inclusion is .
2.2.2.
Search Engine Advertising
.
2.2.3.
Other Directories Marketing
For example, divers sites will be listed on divers
directories. Green sites get themselves
listed on approved as green sites.
2.3.
Affiliations
.
2.3.1.
Affiliation Services
Does the company have
a contract with such a service?
Who? How? Cost?
Measure of effectiveness.
2.3.2.
Reciprocal Arrangements
. Does the company have private reciprocal
affiliations. In which each company puts an ad on the others webstie.
2.4.
M-Commerce Marketing
How does the company plan to do m-commerce and provide
a mobile shop .
2.5.
E-mail Marketing
Email is an important and
growing online marketing tool (Kotler & Armstrong, 2010) which is also used
by . The company provides . How will you handle email marketing? Will you use a service like Constant
Contact? How will you handle
opt-out? How will you get permission to
send email marketing?
2.6.
Other Marketing
This section is included to allow for the template to be kept current
because more and newer methods are being created every year. In addition, there might be some eCommerce
marketing mixed into some traditional marketing. Address this only very briefly as it is not
eCommerce so only mention how to connects to eCommerce. Eg all traditional marketing material will
have the email, website, Facebook, tweet, QCR, etc.
3.
Social Network& Community Marketing&
Customer Reviews Management
3.1.
Social Network Marketing
3.1.1.
Advertising Focus &Methods
Currently, social network participation is
one of the most common usages of the Internet (Laudon & Traver, 2011, p.
670)..
3.1.2.
Methods of Social Network Marketing Research
What Social Network methods will be
used to identify potential customers (hint, like a listing of which email
addresses click like )
3.1.3.
Projected Future Marketing Directions
3.2.
Community Marketing
3.2.1.
Facebook Fans or Similar

3.2.2.
Facebook Ads or Similar

3.2.3.
Tweeter or Similar

3.2.4.
LinkedIn or Similar

3.3.
Customer Reviews Management
Whether you intentionally
provide a customer review capability on your site or not, customers today do
review sites. In the USA Yelp,
TripAdvisor or Cruise Critic and Angies List are popular at this writing. What methods are used in your businesses
target market locales and how will you identify them, track them and manage
them.
3.3.1.
Identifying &Tracking Reviews

3.3.2.
Using Positive Reviews
Eg Will you have a way to rate your products
and/or make comments and show the positive ones on your site? In your catalogue?
3.3.3.
Mitigating Negative Reviews

4.
Order Fulfillment
4.1.
Supply Chain Management
Supply chain
management encompasses the planning and management of all activities involved
in sourcing and procurement, conversion, and all logistics management
activities. Importantly, it also includes coordination and collaboration with
channel partners, which can be suppliers, intermediaries, third party service
providers, and customers. In essence, supply chain management integrates supply
and demand management within and across companies. Because of its
comprehensive tasks which mainly include the basics of a company supply chain
management is often considered as the success driver of businesses (Council of
Supply Chain Management Professionals, 2011).
4.1.1.
Pipeline model
This describes
the process from customer arrival. In
the first version it is arrival on website.
In later weeks it may be arrival on any
media that allows the customer to begin the product selection
process. For example, it might start
with a customer seeing a QCR code anywhere and using that to order. This section should have a couple of graphic
models at least by the end of term.
4.1.2.
Purchasing Technology
In order to
implement the 4.2.1 model(s) there has to be hardware and software to do
it. Much of that might be outsourced as
SaaS (starting with webhost and shopping cart).
All of the technologies have to be able to work with each other.
4.1.3.
Delivery Methods and Technology
Part of the Pipeline Model is
the delivery of the product or service.
How will the process move from order and payment to delivery. For example, how will an order trigger shipping
documents or a download process? Which shipping services will be used and why
and what options does the customer have in the selection of delivery
method? How can the customer track their
order and how does this happen? (Think
about how you have experienced this in your own online shopping)
4.1.4.
Other (in case you
have content that does not fit the above)
4.2.
Marketing Technology
4.2.1.
Website
The internet is a major distribution channel, this is why a well
organized and maintained website is mandatory. The customers should be able to
easily find their desired products and also get the latest information.
4.2.2.
Webhosting
Which webhost will be used? Include
an appendix of the webhosts considered and a discussion in this section
justifying why the webhost was chosen and which of their plans were chosen and
what the plans are for coping with outgrowing the current plan.
4.2.3.
Shopping Cart
Which Shopping Cart will be used?
Include an appendix of the Shopping Carts considered and a discussion in
this section justifying why the Shopping Cart was chosen and which of their
plans were chosen and what the plans are for coping with outgrowing the current
plan.
4.2.4.
Customer Support
A new company doesnt have the ability to have 24/7 support (I made the mistake of offering it once
thinking I had others to cover and when they didnt keep up their part I had to
do it for the term of the contract) Have
a reasonable plan

5.
Payment, Security and Reliability
5.1.
Payment Methods & System
The intent was for you to review your competitors
sites and copy their methods, with whatever changes and improvements you felt
should be there. Most of these are
standard terms and conditions that are shown on the sites. You need to find them and copy and modify
them for your specific use. You might,
by the end of term, make the official terms appendices (mCommerce might have a
different term than eCommerce) and use this section to explain why you have
these particular terms and conditions.
5.1.1.
Credit Cards
To offer credit cards you have
to have a contract with a processing company.
One group identified.cardaccept.com/Price_Comparison.aspx”>http://www.cardaccept.com/Price_Comparison.aspx . On this page the company itself makes
unsupported claims about what it offers compared to others. You cant take their word for it. You need to identify a couple of companies
like this that will work for where your group is located and have a table like
this that compares at least 3 of them.
5.1.2.
Wallets (PayPal or Similar)
One group that isnt located
in a PayPal type area identified Ukash at.ukash.com/za/en/where-to-get.aspx”>http://www.ukash.com/za/en/where-to-get.aspx . Is PayPal the best choice for your
local? You need to justify what type of
alternatives to credit card you will accept.
5.1.3.
MicroPayments
Can you think of any possible
product even samples that could be paid for by smartphone or other
micropayments. One group in a prior
course had cleaning tutorials for use with their products.
5.1.4.
Other Payment Methods
Some countries have kiosks
people use. Others have gift cards and
prepaid and subscription payments.
5.1.5.
Return Policies &Procedures
Again, these are relatively standardized for each
industry with some variations by industry.
Copy from groups competitors and modify.
5.1.6.
Non-Payment Policies &Procedures
How might it be possible for there to be a
non-payment? Again, how do competitors
do this.
5.1.7.
Other
Use this section if you have industry specifics
(likely found on competitor sites)
5.2.
Security Methods & Systems
What security methods, hardware, software, services
will be used. What language on the
site(s) or other access (Facebook) will assure the customer of security. Again, what can you find on the topic of
security on your competitors sites.
5.2.1.
Site Security
5.2.2. mCommerce
Security
5.2.3. Payment
Security
5.2.4. Site
Trust Methodology
5.2.5. Other (if you need a topic not included above)
5.3.
Reliability Methods & Systems
What reliability methods, hardware, software, services will be
used. What language on the site(s) or
other access (Facebook) will assure the customer of security. Again, what can you find on the topic of
security on your competitors sites.
5.3.1.
Site Reliability
5.3.2.
Payment Systems Reliability
5.3.3.
Webhost Reliability
5.3.4.
mCommerce Reliability
5.3.5.
Other (if needed)

6. Legal,
Ethical and Social Policies and Procedures
Check your competitors to see
what policies and procedures they have on their site that have not been
previously covered. If your company is a
green company, it may have special comments in various places about its
social policy to be green.
6.1.
Ethics Policies & Procedures

6.2.
Legal Policies & Procedures

6.3.
Other Social Responsibility Policy &
Procedures

7.
References
Anderson, J. et al. (2006) Customer Value Propositions in Business
Markets, in: Harvard Business Review, 84 (3), p90-99 [Online]. Available from:
http://ehis.ebscohost.com.ezproxy.liv.ac.uk/eds/detail?sid=2dcb5d34-a552-4b50-bfe3-5516688bdc60%40sessionmgr113&vid=1&hid=103&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=buh&AN=19707489
(accessed: November 15, 2011)
Laudon & Traver (2011) E-commerce 2011, 7th, international
edition, Pearson

Appendix 1: Website Sample HomePage

Appendix 2: WebHosts Analysis Table

Appendix 3: Shopping Cart Analysis Table

Appendix 4: Sample Startup Catalogue

Appendix 5: Payment Terms & Conditions

Appendix 6: Security Policy

Appendix 7: Privacy Policy
Company Name Company IndustryE-Commerce Section #Student NameVersion
Tracking TableRevision #Action/TaskSection #s
ImpactedDone ByDateTable of
content.docx#_Toc326427840″>1. Company Overyview
& Products.4.docx#_Toc326427841″>1.1. Company.4.docx#_Toc326427842″>1.1.1.The Company Name.4.docx#_Toc326427843″>1.1.2.Mission and Vision..4.docx#_Toc326427844″>1.1.3.The Business Models.4.docx#_Toc326427845″>1.1.4.Targeted Customer Base.4.docx#_Toc326427846″>1.1.5.Desired Market Image.4.docx#_Toc326427847″>1.2. Products.4.docx#_Toc326427848″>1.2.1.Product Catalogue.5.docx#_Toc326427849″>1.2.2.Value Proposition..5.docx#_Toc326427850″>1.2.3.Catalogue Focus.5.docx#_Toc326427851″>1.2.4.Pricing Guidelines.5.docx#_Toc326427852″>2. Marketing.5.docx#_Toc326427853″>2.1. Web Marketing..5.docx#_Toc326427854″>2.1.1. Advertising Focus
& Methods.5.docx#_Toc326427855″>2.1.2. Web Marketing
Research..5.docx#_Toc326427856″>2.1.3. Projected Future
Marketing Directions.5.docx#_Toc326427857″>2.2. Search Engine
Marketing..5.docx#_Toc326427858″>2.2.1. Search Engine
Optimization..6.docx#_Toc326427859″>2.2.2. Search Engine
Advertising.6.docx#_Toc326427860″>2.2.3. Other Directories
Marketing.6.docx#_Toc326427861″>2.3. Affiliations.6.docx#_Toc326427862″>2.3.1. Affiliation Services.6.docx#_Toc326427863″>2.3.2. Reciprocal
Arrangements.6.docx#_Toc326427864″>2.4. M-Commerce Marketing..6.docx#_Toc326427865″>2.5. E-mail Marketing..6.docx#_Toc326427866″>2.6. Other Marketing..6.docx#_Toc326427867″>3. Social Network & Community Marketing & Customer
Reviews Management7.docx#_Toc326427868″>3.1. Social Network
Marketing..7.docx#_Toc326427869″>3.1.1.Advertising Focus & Methods.7.docx#_Toc326427870″>3.1.2.Methods of Social Network Marketing Research..7.docx#_Toc326427871″>3.1.3.Projected Future Marketing Directions.7.docx#_Toc326427872″>3.2. Community Marketing..7.docx#_Toc326427873″>3.2.1.Facebook Fans or Similar7.docx#_Toc326427874″>3.2.2.Facebook Ads or Similar7.docx#_Toc326427875″>3.2.3.Tweeter or Similar7.docx#_Toc326427876″>3.2.4.LinkedIn or Similar7.docx#_Toc326427877″>3.3. Customer Reviews
Management7.docx#_Toc326427878″>3.3.1. Identifying &
Tracking Reviews.7.docx#_Toc326427879″>3.3.2. Using Positive
Reviews.7.docx#_Toc326427880″>3.3.3. Mitigating Negative
Reviews.8.docx#_Toc326427881″>4. Order Fulfillment8.docx#_Toc326427882″>4.1. Supply Chain
Management8.docx#_Toc326427883″>4.1.1. Pipeline model8.docx#_Toc326427884″>4.1.2. Purchasing Technology.8.docx#_Toc326427885″>4.1.3. Delivery Methods and
Technology.8.docx#_Toc326427886″>4.1.4. Other (in case you have content that does not fit
the above)8.docx#_Toc326427887″>4.2. Marketing Technology.8.docx#_Toc326427888″>4.2.1. Website.8.docx#_Toc326427889″>4.2.2. Webhosting.9.docx#_Toc326427890″>4.2.3. Shopping Cart9.docx#_Toc326427891″>4.2.4. Customer Support9.docx#_Toc326427892″>5. Payment, Security and Reliability.9.docx#_Toc326427893″>5.1. Payment Methods &
System…9.docx#_Toc326427894″>5.1.1. Credit Cards.9.docx#_Toc326427895″>5.1.2. Wallets (PayPal or
Similar)9.docx#_Toc326427896″>5.1.3. MicroPayments.10.docx#_Toc326427897″>5.1.4. Other Payment Methods.10.docx#_Toc326427898″>5.1.5. Return Policies &
Procedures.10.docx#_Toc326427899″>5.1.6. Non-Payment Policies
& Procedures.10.docx#_Toc326427900″>5.1.7. Other10.docx#_Toc326427901″>5.2. Security Methods
& Systems.10.docx#_Toc326427902″>5.2.1.Site Security.10.docx#_Toc326427903″>5.2.2.mCommerce Security.10.docx#_Toc326427904″>5.2.3.Payment Security.10.docx#_Toc326427905″>5.2.4.Site Trust Methodology.10.docx#_Toc326427906″>5.2.5.Other (if you need a
topic not included above)10.docx#_Toc326427907″>5.3. Reliability Methods
& Systems.10.docx#_Toc326427908″>5.3.1.Site Reliability.10.docx#_Toc326427909″>5.3.2.Payment Systems Reliability.11.docx#_Toc326427910″>5.3.3.Webhost Reliability.11.docx#_Toc326427911″>5.3.4.mCommerce Reliability.11.docx#_Toc326427912″>5.3.5.Other (if needed)11.docx#_Toc326427913″>6. Legal, Ethical and Social Policies and Procedures.11.docx#_Toc326427914″>6.1. Ethics Policies &
Procedures.11.docx#_Toc326427915″>6.2. Legal Policies &
Procedures.11.docx#_Toc326427916″>6.3. Other Social
Responsibility Policy & Procedures.11.docx#_Toc326427917″>7. References.12.docx#_Toc326427918″>Appendix 1: Website Sample HomePage.13.docx#_Toc326427919″>Appendix 2: WebHosts Analysis Table.14.docx#_Toc326427920″>Appendix 3: Shopping Cart Analysis Table.15.docx#_Toc326427921″>Appendix 4: Sample Startup Catalogue.16.docx#_Toc326427922″>Appendix 5: Payment Terms &
Conditions.17.docx#_Toc326427923″>Appendix 6: Security Policy.18.docx#_Toc326427924″>Appendix 7: Privacy Policy.19
1.
Company Overyview & Products1.1.
Company.1.1.1.
The Company NameThe choice of a company name is one of the most difficult decisions
which have to be taken at the beginning of every business, for the name can
indeed decide, to a certain extent, the success of a company (Francis, et al.,
2002).1.1.2.
Mission and VisionThe company philosophy as well as the self-concept and desire public
image should be clearly phrased in the mission and vision of a company
(Williams, 2008).1.1.3.
The Business ModelsThere are five major e-commerce business models: business to business, business to customer,
customer to customer, peer to peer and m-commerce business models (Laudon and
Travers, 2012). These business models can also be classified into sub-sections.
(Note, this section will be updated
during the course as more models are added to the business. For example, in week 3 the business might be
eCommerce only but then adds mCommerce and then Social Networking. If the business has physical sales they
might be acknowledged here but it should be indicated that the brick portion
of the business is not addressed in this plan.Laudon & Travers (2011) identify five major
revenue models, namely the advertising, the subscription, the transaction fee,
the sales and the affiliate revenue model.
Krmer runs primary the sales revenue model by selling goods,
information, or services to customers (p. 321). (This section will also continue to be built
as the business model expands so does the revenue model) 1.1.4.
Targeted Customer BaseA proper targeting of customers is the key to a
successful business, at least for start-up companies which have not the
resources to enjoy economies of scale (Laudon & Traver, 2011, p. 386).The
desired customer base normally is identified as the unmet demand that this
business can uniquely fulfill. It is
called in strategy course the blue ocean if large, and some now call it the
blue puddle if small.1.1.5.
Desired Market ImageThe desired market image of a company normally finds
its origins in its mission and vision.1.2.
Products1.2.1.
Product Catalogue1.2.2.
Value PropositionIn order to be success each company has to develop an
elaborate customer value proposition. A customer value proposition identifies
target customers, order winners and qualifiers and those business operations
where resources have to be allocated in order to meet the targeted customers
requirements and preferences (Anderson, et al., 2006).1.2.3.
Catalogue Focus1.2.4.
Pricing GuidelinesWhen it comes to the pricing of products, companies have
to take various factors into consideration, beginning from the costs of the
products and ending with the prices of the competition. (How will you establish pricing. Look up things like Gross Margin whereby the
price is a set percentage of cost eg.
160% (100% is the product cost
from vendors and 60% is the combination of the costs incurred between purchase
and sale plus the profit. So, if profit
is 10% this says that all other costs are 50% of purchase price. )2.
Marketing2.1.
Web MarketingWhat marketing
methods and materials (in summary here) will the company use eg website,
uTube, affiliations (ads on other sites). 2.1.1.
Advertising Focus &Methods2.1.2.
Web Marketing ResearchWhat kind of research will the company do to determine
the most effective methods of marketing its site. Anticipate this changing over time. 2.1.3.
Projected Future Marketing DirectionsWhat are your plans for the future. These are the kinds of marketing that you
might not be able to afford to do as a startup but plan to do in your 3 to 5
year plan. 2.2.
Search Engine MarketingSearch engine marketing aims to increase the traffic
on ones website. How will the company
market via any search engines (eg Google AdWords intermittently)2.2.1.
Search Engine OptimizationWhen entering the company name or the keywords at Google, . This gives a clear indication
that uses search engine optimization.
The website is maintained in a way that maximizes its visibility and thus
achieves a high ranking. Relevant keywords like have been well place at the
website. The URL is registered at Google. In addition to the organic
inclusions, a paid inclusion is .2.2.2.
Search Engine Advertising.2.2.3.
Other Directories MarketingFor example, divers sites will be listed on divers
directories. Green sites get themselves
listed on approved as green sites. 2.3.
Affiliations.2.3.1.
Affiliation Services Does the company have
a contract with such a service?
Who? How? Cost?
Measure of effectiveness.2.3.2.
Reciprocal Arrangements . Does the company have private reciprocal
affiliations. In which each company puts an ad on the others webstie.2.4.
M-Commerce MarketingHow does the company plan to do m-commerce and provide
a mobile shop .2.5.
E-mail Marketing Email is an important and
growing online marketing tool (Kotler & Armstrong, 2010) which is also used
by . The company provides . How will you handle email marketing? Will you use a service like Constant
Contact? How will you handle
opt-out? How will you get permission to
send email marketing? 2.6.
Other MarketingThis section is included to allow for the template to be kept current
because more and newer methods are being created every year. In addition, there might be some eCommerce
marketing mixed into some traditional marketing. Address this only very briefly as it is not
eCommerce so only mention how to connects to eCommerce. Eg all traditional marketing material will
have the email, website, Facebook, tweet, QCR, etc. 3.
Social Network& Community Marketing&
Customer Reviews Management3.1.
Social Network Marketing3.1.1.
Advertising Focus &Methods Currently, social network participation is
one of the most common usages of the Internet (Laudon & Traver, 2011, p.
670)..3.1.2.
Methods of Social Network Marketing Research What Social Network methods will be
used to identify potential customers (hint, like a listing of which email
addresses click like ) 3.1.3.
Projected Future Marketing Directions3.2.
Community Marketing3.2.1.
Facebook Fans or Similar3.2.2.
Facebook Ads or Similar3.2.3.
Tweeter or Similar3.2.4.
LinkedIn or Similar3.3.
Customer Reviews Management Whether you intentionally
provide a customer review capability on your site or not, customers today do
review sites. In the USA Yelp,
TripAdvisor or Cruise Critic and Angies List are popular at this writing. What methods are used in your businesses
target market locales and how will you identify them, track them and manage
them. 3.3.1.
Identifying &Tracking Reviews3.3.2.
Using Positive Reviews Eg Will you have a way to rate your products
and/or make comments and show the positive ones on your site? In your catalogue? 3.3.3.
Mitigating Negative Reviews4.
Order Fulfillment4.1.
Supply Chain ManagementSupply chain
management encompasses the planning and management of all activities involved
in sourcing and procurement, conversion, and all logistics management
activities. Importantly, it also includes coordination and collaboration with
channel partners, which can be suppliers, intermediaries, third party service
providers, and customers. In essence, supply chain management integrates supply
and demand management within and across companies. Because of its
comprehensive tasks which mainly include the basics of a company supply chain
management is often considered as the success driver of businesses (Council of
Supply Chain Management Professionals, 2011).4.1.1.
Pipeline modelThis describes
the process from customer arrival. In
the first version it is arrival on website.
In later weeks it may be arrival on any
media that allows the customer to begin the product selection
process. For example, it might start
with a customer seeing a QCR code anywhere and using that to order. This section should have a couple of graphic
models at least by the end of term.4.1.2.
Purchasing TechnologyIn order to
implement the 4.2.1 model(s) there has to be hardware and software to do
it. Much of that might be outsourced as
SaaS (starting with webhost and shopping cart).
All of the technologies have to be able to work with each other. 4.1.3.
Delivery Methods and TechnologyPart of the Pipeline Model is
the delivery of the product or service.
How will the process move from order and payment to delivery. For example, how will an order trigger shipping
documents or a download process? Which shipping services will be used and why
and what options does the customer have in the selection of delivery
method? How can the customer track their
order and how does this happen? (Think
about how you have experienced this in your own online shopping)4.1.4.
Other (in case you
have content that does not fit the above)4.2.
Marketing Technology4.2.1.
WebsiteThe internet is a major distribution channel, this is why a well
organized and maintained website is mandatory. The customers should be able to
easily find their desired products and also get the latest information. 4.2.2.
WebhostingWhich webhost will be used? Include
an appendix of the webhosts considered and a discussion in this section
justifying why the webhost was chosen and which of their plans were chosen and
what the plans are for coping with outgrowing the current plan.4.2.3.
Shopping CartWhich Shopping Cart will be used?
Include an appendix of the Shopping Carts considered and a discussion in
this section justifying why the Shopping Cart was chosen and which of their
plans were chosen and what the plans are for coping with outgrowing the current
plan.4.2.4.
Customer SupportA new company doesnt have the ability to have 24/7 support (I made the mistake of offering it once
thinking I had others to cover and when they didnt keep up their part I had to
do it for the term of the contract) Have
a reasonable plan 5.
Payment, Security and Reliability5.1.
Payment Methods & SystemThe intent was for you to review your competitors
sites and copy their methods, with whatever changes and improvements you felt
should be there. Most of these are
standard terms and conditions that are shown on the sites. You need to find them and copy and modify
them for your specific use. You might,
by the end of term, make the official terms appendices (mCommerce might have a
different term than eCommerce) and use this section to explain why you have
these particular terms and conditions. 5.1.1.
Credit CardsTo offer credit cards you have
to have a contract with a processing company.
One group identified.cardaccept.com/Price_Comparison.aspx”>http://www.cardaccept.com/Price_Comparison.aspx . On this page the company itself makes
unsupported claims about what it offers compared to others. You cant take their word for it. You need to identify a couple of companies
like this that will work for where your group is located and have a table like
this that compares at least 3 of them. 5.1.2.
Wallets (PayPal or Similar)One group that isnt located
in a PayPal type area identified Ukash at.ukash.com/za/en/where-to-get.aspx”>http://www.ukash.com/za/en/where-to-get.aspx . Is PayPal the best choice for your
local? You need to justify what type of
alternatives to credit card you will accept. 5.1.3.
MicroPaymentsCan you think of any possible
product even samples that could be paid for by smartphone or other
micropayments. One group in a prior
course had cleaning tutorials for use with their products. 5.1.4.
Other Payment MethodsSome countries have kiosks
people use. Others have gift cards and
prepaid and subscription payments. 5.1.5.
Return Policies &ProceduresAgain, these are relatively standardized for each
industry with some variations by industry.
Copy from groups competitors and modify. 5.1.6.
Non-Payment Policies &ProceduresHow might it be possible for there to be a
non-payment? Again, how do competitors
do this. 5.1.7.
OtherUse this section if you have industry specifics
(likely found on competitor sites)5.2.
Security Methods & SystemsWhat security methods, hardware, software, services
will be used. What language on the
site(s) or other access (Facebook) will assure the customer of security. Again, what can you find on the topic of
security on your competitors sites. 5.2.1.
Site Security5.2.2. mCommerce
Security5.2.3. Payment
Security5.2.4. Site
Trust Methodology5.2.5. Other (if you need a topic not included above)5.3.
Reliability Methods & SystemsWhat reliability methods, hardware, software, services will be
used. What language on the site(s) or
other access (Facebook) will assure the customer of security. Again, what can you find on the topic of
security on your competitors sites.5.3.1.
Site Reliability5.3.2.
Payment Systems Reliability5.3.3.
Webhost Reliability5.3.4.
mCommerce Reliability5.3.5.
Other (if needed)6. Legal,
Ethical and Social Policies and ProceduresCheck your competitors to see
what policies and procedures they have on their site that have not been
previously covered. If your company is a
green company, it may have special comments in various places about its
social policy to be green. 6.1.
Ethics Policies & Procedures6.2.
Legal Policies & Procedures6.3.
Other Social Responsibility Policy &
Procedures7.
ReferencesAnderson, J. et al. (2006) Customer Value Propositions in Business
Markets, in: Harvard Business Review, 84 (3), p90-99 [Online]. Available from:
http://ehis.ebscohost.com.ezproxy.liv.ac.uk/eds/detail?sid=2dcb5d34-a552-4b50-bfe3-5516688bdc60%40sessionmgr113&vid=1&hid=103&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=buh&AN=19707489
(accessed: November 15, 2011)Laudon & Traver (2011) E-commerce 2011, 7th, international
edition, PearsonAppendix 1: Website Sample HomePageAppendix 2: WebHosts Analysis TableAppendix 3: Shopping Cart Analysis TableAppendix 4: Sample Startup CatalogueAppendix 5: Payment Terms & ConditionsAppendix 6: Security PolicyAppendix 7: Privacy Policy