Advertising and Media :: Electronic activity and online advertising ::
TYPES OF ELECTRONIC ACTIVITYAssuming the use of the Web, what are its main usages? What are the main categories of activity on the Web? And for electronic media generally? Organisations can utilise electronic systems under a number of key activities: 1. E-markets. This is the use of the Web as a marketplace. Here buyers and sellers can come together under the auspices of a marketplace provider, as in a physical marketplace, and do business. Take warehouse space as an example. A commercial estate agency now operates an electronic market for warehouses. Organisations with warehouse space to let can log on to this site. They will list the details of various warehousing they have available. Firms searching for warehouse space will also log on to the site. At this point the estate agent provider will step aside. A warehouse space provider and an interested potential customer will then enter into electronic dialogue on the site, and the customer will make a financial offer. A price will be agreed and a written agreement finalised online. The site provider charges an access fee and possibly a small commission on the sale. A traditional marketplace transaction has been enacted. 2. E-commerce. This is the wider use of the Web for buying and selling generally. Part or most of the transaction will take place online. An organisation will feature its product or service on its Web site. Interested potential customers may access the site: – for fuller information – for a cost estimate – to obtain a sample – to set up a sales meeting – for a tailored product specification – to enquire about servicing or delivery – to place an order. The benefits of e-commerce include low cost, speed, the global nature of the technology and the interactive nature. They can reduce the normal cost of sales or save on company overheads. Thus, various organisations now offer a financial inducement to order or complete deals online. The cost of the inducement is often more than offset by the reduction in staff costs and general overheads, etc. Another benefit of e-commerce is that it facilitates the customisation of products. And of course customers can shop around or carry out commercial activities 24 hours a day. It should, however, be pointed out that e-commerce has taken longer to take off in the UK than anticipated. Many people still use the Web for trawling for information, but prefer to see the product physically, in real life, before buying. Various ecommerce launches have failed and many investors have had their fingers burned. The potential benefits of e-commerce remain, and many transactions are now being enacted, but the full future possibilities are still to be realised. 3. E-communication. The most common use of the Web is as a tool for communication. A very large and increasing number of organisations, and indeed private individuals, now operate sites. This has become an almost standard part of the marketing communication mix, working with other elements and reinforcing them. Obviously the World Wide Web has considerable value for communication flows, as we have observed. There is, however, a range of communication types: 4. Transactional: that is, the use of the Web as part of a transaction sequence. This can cover a multitude of transaction forms, eg: – sales order placement and confirmation – inventory and stock control – invoicing and credit control – parts control – supplier confirmation and supply chain management – delivery and distribution logistics. Within the transaction sequence, a number of marketing-operation transactions may be implemented effectively through the net, including: – promotions offers, ordering and supply – dealer merchandising programmes – dealer promotion and promotional support – sales force operations. 5. Cataloguing and reference. The Internet is a most useful tool for accessing lists, or catalogues or libraries of data. 6. Knowledge management. Electronic media are instrumental in data-flow, data exchange, data capture and data selection and the shaping and structuring of an immense bank of knowledge. 7. Informational. The Web is a most flexible tool for information flows, and this is the core of many Web sites. Organisations can fit a Web site into their communications mix, to present news and basic information about themselves, their product or service: – what it is – what it does – what its benefits are – how to get it – any latest or up-to-date developments. 8. Promotional. The Web site will also usually partake of a promotional element, offering inducements or special deals or promising extra benefits for purchasing. 9. Advertising. The electronic media, as we have also observed previously, may carry advertising messages, in a variety of forms. This is both a kind of advertising medium in itself and a conduit for advertising as an adjunct to the other functions of e-communication. |
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