MODULE 4: E-COMMERCE AND DIGITAL

MARKETING
Examples of B2C business are everywhere.
 E-business describes the use of electronic means Exclusively online retailers include
and platform to conduct a company’s Business. Newegg.com,Overstock.com, Wish, and Modcloth,
 E-commerce means that the company or site but other major B2C model brick-and-mortar
offers to transact or facilitate the selling of business like staples, Wall-Mart, Target, Rei, and
products and services online. E-commerce has Gap.
given rise in turn to e-purchasing and e-
marketing.
 E-purchasing means companies decide to 3.C2C: Consumer-To-Consumer Ecommerce
purchase goods, services, and information from B2B and B2C are fairly intuitive concepts for most
various online suppliers. Smart e-purchasing has of us, but the idea of C2C is different. What does a
already saved companies millions of pesos. consumer-to-consumer ecommerce business look
 E-Marketing describes company efforts to like?
inform buyers, communicate, promote, and sell
its product and services over the internet. The e Created by the rise of the ecommerce sector and
term is also used in terms such as e-finance, e- growing consumer confidence in online business,
learning, and e-service. But as someone these sites allow customer to trade, buy, and sell
observed, the e will eventually be dropped when items in exchange for a small commission paid to the
most business practice is online. site. Opening a C2C site takes careful planning.
Despite the obvious success of platform like eBay
and Craiglist, numerous other auction and classified
Today, the most commonly use e-commerce sites (the main arenas for C2C) have opened and
business classification are B2B, B2C, C2C or quickly closed due to unsustainable models.
C2B.let us take a look at the most common ways
online transaction occur.
4.C2B: Consumer to Business Ecommerce
C2B is another model most people don’t immediately
1. B2B: Business to Business Ecommerce think of, but that is growing in prevalence. This
A B2B model focuses on providing products online commerce business is when the consumer sells
from one business to another. While many businesses goods or services to businesses and is roughly
in the niches are service providers, you will find equivalent to a sole proprietorship serving a larger
software companies, office furniture and supply business.
companies, document hosting companies, and
numerous other ecommerce business models under
this heading. Reverse auctions, service provision sites like up
work, and several common blog monetization
strategies like affiliate marketing or Google AdSense
B2B ecommerce examples you may be familiar with also fall under this heading.
include the ExxonMobil Corporation and the
Chevron Corporation and Boeing. This business has
custom, enterprise ecommerce platforms that work
directly with other business in a closed environment. 5.Government/Public Administration Ecommerce
A B2B ecommerce business typically requires more The models listed above are the primary
startup cash. ecommerce retail structures, but they aren’t the only
ones. Other types involve government/public
administration conducting transactions with business
2.B2C: Business To Consumer Ecommerce or consumers.
The B2C sector is what most people think of  B2G (also called B2A), for business whose
when they imagine an ecommerce business. This is sole clients are governments or types of
the deepest market, and many of the names you’ll see public administration. Examples are SEDEC
here are known quantities offline, too. B2C sales are 2020 – Security & Defense, Better Than
the traditional retail model, where a business sells to Cash Alliance
individuals, but business is conducted online as
opposed to in a physical store.
  C2G (also called C2A): typically, Companies that manufacture products offsite for sale
individuals paying the government for taxes send the plans or prototypes to a contracted
or tuition to universities manufacturer who produces the product to meet
Two sectors that are closed for entrepreneur owners customer specifications and can either ship directly to
but are growing include G2B for government sales to the consumer, to a third party such as Amazon, or to
private business, and G2C, for government sales to the company selling final product.
the general public. On-demand manufacturing allows you to quickly
change suppliers if you encounter problems with
product quality.
TYPES OF ECOMMERCE BUSINESS
REVENUE MODELS 4. White Labeling
The nest most important think about is how you want White labeling is similar. You choose a product that
to handle inventory management and sourcing is already successfully sold by another company, but
products. Some people like the idea of making their offers white labels options, design your package and
own products and others hate the idea of their garage label, and sell the product. This is common in the
full of boxes. beauty and wellness industries, but more difficult to
encounter in another niches.
1.Drop Shipping One problem with labeling is demand. You’re stuck
The simplest form of ecommerce, drop shipping lets with whatever you order, and most of these
you set up a storefront and take the customers’ companies set a minimum production quantity.
money through credit cards, debit card, PayPal, Pay
Maya. The rest is up to your supplier. This frees you 5. Subscription
from managing inventory, warehousing stock, or One of the most popular and successful pure
dealing with packaging, but there’s major caveat. ecommerce brands is the Dollar Shave Club. Other
examples of subscription services include Stitch Fix,
If your sellers are slow, product quality is lower than Blue Apron, and Nature Box.
expected, or there are problems with the order, it’s on
your head (and in your views). Wacky Hippo is an
example of a site using drop shipping. This companies rely on a subscription model that
delivers customers a box of products at regular,
Many drop shippers use Shopify and Oberlo. Its scheduled intervals. Subscription companies have
quick and inexpensive to set up. A popular model is relatively reliable income streams and can easily
to set up a quick store and drive traffic with Facebook incentivize customers to purchase additional
Ads. subscriptions or encourage their contacts to
subscribe. Successful subscription boxes tend to fall
2.Wholesaling and Warehousing into a small handful of product categories: health and
Wholesaling and warehousing e-commerce business grooming, beauty, fashion, and food.
require a lot of investment at the start-you need to
manage inventory and stock, keep track of customer
orders and shipping information, and invest in the
warehouse space itself.
IV. WHAT IS DIGITAL MARKETING?
DollarDays is an online wholesaler with a massive Digital marketing refers to the marketing of goods
product catalog that includes more than 260,000 and/or services using digital channels, which in most
products. They employ a key strategy for retailers in cases means via the Internet or online.
this space by offering case prices and piece prices,
they can sell to the general public and to retailers. Digital marketing extends beyond internet
This gives them a higher profit margin than strictly marketing to include channels that do not require the
wholesale model. use of the internet. It includes mobile phones (both
SMS and MMS), social media marketing, display
Wholesaler business are all about volume. You will advertising, search engine marketing, and any other
need to push products out to Ebay, Amazon, Google, form of digital media.
etc.
The term ‘marketing‘ refers to analyzing the market
3. Private Labeling And manufacturing and determining what consumers want. It also
includes finding out whether your company can characteristics (such as by age or gender), or even
produce and deliver it profitably. The term ‘digital target their particular interests or location. The most
marketing,’ however, tends to refer more to popular PPC platforms are Google Ads and Facebook
advertising and promotions in the digital world. Ads.

3.Content Marketing
The goal of content marketing is to reach potential
UNDERSTANDING DIGITAL MARKETING
customers through the use of content. Content is
Digital marketing targets a specific segment of the
usually published on a website and then promoted
customer base and is interactive. Digital marketing is
through social media, email marketing, SEO, or even
on the rise and includes search result ads, email ads,
PPC campaigns. The tools of content marketing
and promoted tweets – anything that incorporates
include blogs, ebooks, online courses, infographics,
marketing with customer feedback or a two-way
podcasts, and webinars.
interaction between the company and customer.
4.Email Marketing
Internet marketing differs from digital marketing.
Internet marketing is advertising that is solely on the Email marketing is still one of the most effective
Internet, whereas digital marketing can take place digital marketing channels. Many people confuse
through mobile devices, on a subway platform, in a email marketing with spam email messages, but
video game, or via a smart phone app. that’s not what email marketing is all about. Email
marketing is the medium to get in touch with your
potential customers or the people interested in your
In the parlance of digital marketing, advertisers are brand. Many digital marketers use all other digital
commonly referred to as sources, while members of marketing channels to add leads to their email lists
the targeted ads are commonly called receivers. and then, through email marketing, they create
Sources frequently target highly specific, well- customer acquisition funnels to turn those leads into
defined receivers. For example, after extending the customers.
late-night hours of many of its locations, McDonald's
needed to get the word out. It targeted shift workers
and travelers with digital ads because the company 5.Social Media Marketing
knew that these people made up a large segment of its The primary goal of a social media marketing
late-night business. McDonald's encouraged them to campaign is brand awareness and establishing social
download a new Restaurant Finder app, targeting trust. As you go deeper into social media marketing,
them with ads placed at ATMs and gas stations, as you can use it to get leads or even as a direct sales
well as on websites that it knew its customers channel.
frequented at night.
6.Affiliate Marketing
DIGITAL MARKETING CHANNELS Affiliate marketing is one of the oldest forms of
marketing, and the Internet has brought new life to
1.Website Marketing this old standby. With affiliate marketing, influencers
A website is the centerpiece of all digital marketing promote other people’s products and get a
activities. Alone, it is a very powerful channel, but commission every time a sale is made, or a lead is
it’s also the medium needed to execute a variety of introduced. Many well-known companies like
online marketing campaigns. A website should Amazon have affiliate programs that pay out millions
represent a brand, product, and service in a clear and of dollars per month to websites that sell their
memorable way. It should be fast, mobile-friendly, products.
and easy to use.
7.Video Marketing
2.Pay-Per-Click (PPC) Advertising YouTube has become the second most popular search
PPC advertising enables marketers to reach Internet engine and a lot of users are turning to YouTube
users on a number of digital platforms through paid before they make a buying decision, to learn
ads. Marketers can set up PPC campaigns on Google, something, read a review, or just to relax. There are
Bing, LinkedIn, Twitter, Pinterest, or Facebook and several video marketing platforms, including
show their ads to people searching for terms related Facebook Videos, Instagram, or even TikTok to use
to the products or services. PPC campaigns can to run a video marketing campaign. Companies find
segment users based on their demographic the most success with video by integrating it with
SEO, content marketing, and broader social media  2.You send a welcome message with their first-time
marketing campaigns. discount via SMS and follow up with email

8.SMS Messaging  3.The customer comes back and browses, signing up

Companies and nonprofit organizations also use SMS for push notifications, but ultimately not purchasing
or text messages to send information about their latest
 4.The customer clicks on a retargeting ad and comes
promotions or giving opportunities to willing
customers. Political candidates running for office also back, adding products to their cart
use SMS message campaigns to spread positive  5.The customer receives a cart abandonment message
information about their own platforms. As
via email and revisits their cart
technology has advanced, many text-to-give
campaigns also allow customers to directly pay or  6.The customer finishes their purchase and signs up
give via a simple text message. for Facebook Messenger updates

 7.Order and shipping confirmation updates are sent

via Facebook Messenger
C. ADDITONAL RELATED STUDY:

What is Omnichannel Marketing? From there, any of those used channels could be used
Omnichannel is the idea of using all channels to again to bring the customer back in for a repeat
create one, unified experience for customers. This purchase.
includes both traditional and digital channels, point-
of-sale, in-store, and online experiences.
With an omnichannel concept in place, customer can
get a personalized message that’s directly relevant to
DIFFERENCE BETWEEN MULTICHANNEL what they need at any given time, no matter what
AND OMNICHANNEL MARKETING? channel they’re on.

Difference between multichannel and omnichannel

marketing is that multichannel puts brand at the MODULE 5: WEB 4.0, CRYPTOCURRENCY
center of the strategy and sends the same message out AND CASHLESS TRANSACTIONS, AND
to customer on all channels. This makes multichannel CORPORATE SOCIAL RESPONSIBILITY
marketing completely different from the omnichannel
meaning. Omnichannel marketing puts the customer Corporate social responsibility (CSR) is a self-
at the center of the strategy. In an omnichannel regulating business model that helps a company be
marketing strategy, the message changes and adapts socially accountable—to itself, its stakeholders, and
to how the customer has interacted with other the public. By practicing corporate social
channels. SMS marketing strategy should be part of responsibility, also called corporate citizenship,
omnichannel communication. companies can be conscious of the kind of impact
they are having on all aspects of society, including
economic, social, and environmental.
This means that as your customer moves through
their customer journey, your channels will To engage in CSR means that, in the ordinary course
automatically update so the next one offers a message of business, a company is operating in ways that
enhances society and the environment, instead of
that’s relevant to your customer.
contributing negatively to them.

OMNICHANNEL MARKETING Corporate social responsibility is a broad concept that

can take many forms depending on the company and
ILLUSTRATION HOW IT WORKS.
industry. Through CSR programs, philanthropy, and
volunteer efforts, businesses can benefit society while
boosting their brands.
1.A customer signs up for your mailing list, and opts
to receive SMS messages
As important as CSR is for the community, it is donating to local charities and sponsoring local
equally valuable for a company. CSR activities can events.
help forge a stronger bond between employees and
corporations, boost morale and help both employees WHAT IS ELECTRONIC MONEY?
and employers feel more connected with the world Electronic money refers to money that exists in
around them. banking computer systems that may be used to
facilitate electronic transactions. Although its value is
backed by fiat currency and may, therefore, be
exchanged into a physical, tangible form, electronic
money is primarily used for electronic transactions
Remember! due to the sheer convenience of this methodology.
 Corporate social responsibility is important
to both consumers and companies. Remember!
 Starbucks is one of the leaders in creating  Electronic money is currency that is stored
corporate social responsibility programs in in banking computer systems.
many aspects of its business.  Electronic money is backed by fiat currency,
 Corporate responsibility programs are a which distinguishes it from cryptocurrency.
great way to raise morale in the workplace.  Various companies allow for transactions to
be made with electronic money, such as
For a company to be socially responsible, it first Square or PayPal.
needs to be accountable to itself and its shareholders.  The prevalence of electronic money has led
Often, companies that adopt CSR programs have to the diminishing use of physical currency.
grown their business to the point where they can give  Although electronic money is often
back to society. Thus, CSR is primarily a strategy of considered safer and more transparent than
large corporations. Also, the more visible and physical currency, it is not without its risks.
successful a corporation is, the more responsibility it
has to set standards of ethical behavior for its peers,
competition, and industry. HOW ELECTRONIC MONEY WORKS?
Electronic money is used for transactions on a global
basis. While it may be exchanged for fiat currency
WHY SHOULD A COMPANY IMPLEMENT (which, incidentally, distinguishes it from
CSR? cryptocurrencies), electronic money is most
Many companies view CSR as an integral part of commonly utilized through electronic banking
their brand image, believing that customers will be systems and monitored through electronic processing.
more likely to do business with brands that they Because a mere fraction of the currency is utilized in
perceive to be more ethical. In this sense, CSR physical form, the vast percentage of it is housed in
activities can be an important component of corporate bank vaults and is backed by central banks.
public relations. At the same time, some company
founders are also motivated to engage in CSR due to Take Note!
their personal convictions. Because of the transparency that is inherent to
electronic money, many have speculated that the
increase of its use could lead to a significant decrease
WHAT IS THE IMPACT OF CSR? in inflation risk.
The movement toward CSR has had an impact in
several domains. For example, many companies have
taken steps to improve the environmental SPECIAL CONSIDERATIONS IN NETWORK/
sustainability of their operations, through measures ELECTRONIC MONEY
such as installing renewable energy sources or 1. Currency in Circulation
purchasing carbon offsets. In managing supply Electronic money can be held in various places. Most
chains, efforts have also been taken to eliminate individuals and businesses store their money with
reliance on unethical labor practices, such as child banks that provide electronic records of the cash on
labor and slavery. Although CSR programs have deposit. However, prepaid cards and digital wallets
generally been most common among large like PayPal and Square likewise allow users to
corporations, small businesses also participate in deposit fiat currency for electronic money. Such
CSR through smaller-scale programs such as companies will make their profit by charging a
percentage on any amount that is withdrawn from
accounts or converted from electronic money back A cryptocurrency is a digital or virtual currency that
into fiat currency. is secured by cryptography, which makes it nearly
impossible to counterfeit or double-spend. Many
2. Electronic Payment Processing cryptocurrencies are decentralized networks based on
Many Americans process transactions electronically blockchain technology—a distributed ledger enforced
in a multitude of ways. This includes receiving by a disparate network of computers. A defining
paychecks through direct deposits, moving money feature of cryptocurrencies is that they are generally
from one account to another via electronic fund not issued by any central authority, rendering them
transfers, or spending money with credit cards and theoretically immune to government interference or
debit cards manipulation.

While physical currency is still advantageous in Remember!

certain situations, its role has gradually diminished  A cryptocurrency is a new form of digital
over time. Many consumers and businesses believe asset based on a network that is distributed
electronic money is more secure and convenient across a large number of computers. This
because it cannot be misplaced, and it is widely decentralized structure allows them to exist
accepted by merchants nationwide. The U.S. outside the control of governments and
financial market has consequently established a central authorities.
robust infrastructure for transacting electronic money,  The word “cryptocurrency” is derived from
which is primarily facilitated through payment the encryption techniques which are used to
processing networks, such as Visa and Mastercard. secure the network.
 Blockchains, which are organizational
Banks and financial institutions partner with methods for ensuring the integrity of
electronic money networking processors to issue their transactional data, is an essential component
customers branded network cards that facilitate these of many cryptocurrencies.
electronic transactions from bank accounts to  Many experts believe that blockchain and
merchants. Electronic money is also easily transacted related technology will disrupt many
through e-commerce, letting consumers conveniently industries, including finance and law.
shop for goods and services online.  Cryptocurrencies face criticism for a number
of reasons, including their use for illegal
activities, exchange rate volatility, and
vulnerabilities of the infrastructure
CRITICISMS OF ELECTRONIC MONEY underlying them. However, they also have
Although electronic money is quickly becoming the been praised for their portability, divisibility,
norm and is often hailed as the more secure and inflation resistance, and transparency.
transparent alternative to physical currency, this does
UNDERSTANDING CRYPTOCURRENCIES
not mean that it comes without its own set of risks
Cryptocurrencies are systems that allow for the
and vulnerabilities.
secure payments online which are denominated in
For instance, fraud becomes an issue when money terms of virtual "tokens," which are represented by
can be transferred from one party to another without ledger entries internal to the system. "Crypto" refers
the necessity for the physical verification of the to the various encryption algorithms and
original owner’s true identity. cryptographic techniques that safeguard these entries,
such as elliptical curve encryption, public-private key
Electronic transactions also lend themselves to being pairs, and hashing functions.
more discreet and, thus, easier to hide from the IRS,
making electronic money a potential and unwilling TYPES OF CRYPTOCURRENCIES
accomplice to tax evasion. Lastly, the computer The first blockchain-based cryptocurrency was
systems that are responsible for carrying out Bitcoin, which still remains the most popular and
electronic transactions are not perfect, meaning that most valuable. Today, there are thousands of
electronic money transactions can sometimes go awry alternate cryptocurrencies with various functions and
simply due to system error. specifications. Some of these are clones or forks of
Bitcoin, while others are new currencies that were
built from scratch.
WHAT IS A CRYPTOCURRENCY?
Bitcoin was launched in 2009 by an individual or Cryptocurrencies hold the promise of making it easier
group known by the pseudonym "Satoshi to transfer funds directly between two parties,
Nakamoto."1 As of Nov. 2019, there were over 18 without the need for a trusted third party like a bank
million bitcoins in circulation with a total market or credit card company. These transfers are instead
value of around $146 billion. secured by the use of public keys and private keys
and different forms of incentive systems, like Proof
Some of the competing cryptocurrencies spawned by of Work or Proof of Stake.
Bitcoin’s success, known as "altcoins," include
Litecoin, Peercoin, and Namecoin, as well as In modern cryptocurrency systems, a user's "wallet,"
Ethereum, Cardano, and EOS. Today, the aggregate or account address, has a public key, while the
value of all the cryptocurrencies in existence is private key is known only to the owner and is used to
around $214 billion—Bitcoin currently represents sign transactions. Fund transfers are completed with
more than 68% of the total value. minimal processing fees, allowing users to avoid the
steep fees charged by banks and financial institutions
Take note! for wire transfers.
Some of the cryptography used in cryptocurrency
today was originally developed for military Disadvantages
applications. At one point, the government wanted to The semi-anonymous nature of cryptocurrency
put controls on cryptography similar to the legal transactions makes them well-suited for a host of
restrictions on weapons, but the right for civilians to illegal activities, such as money laundering and tax
use cryptography was secured on grounds of freedom evasion. However, cryptocurrency advocates often
of speech. highly value their anonymity, citing benefits of
privacy like protection for whistleblowers or activists
SPECIAL CONSIDERATIONS living under repressive governments. Some
Central to the appeal and functionality of Bitcoin and cryptocurrencies are more private than others.
other cryptocurrencies is blockchain technology,
which is used to keep an online ledger of all the Bitcoin, for instance, is a relatively poor choice for
transactions that have ever been conducted, thus conducting illegal business online, since the forensic
providing a data structure for this ledger that is quite analysis of the Bitcoin blockchain has helped
secure and is shared and agreed upon by the entire authorities to arrest and prosecute criminals. More
network of individual node, or computer maintaining privacy-oriented coins do exist, however, such as
a copy of the ledger. Every new block generated must Dash, Monero, or ZCash, which are far more difficult
be verified by each node before being confirmed, to trace.
making it almost impossible to forge transaction
histories. CRITICISM OF CRYPTOCURRENCY
Since market prices for cryptocurrencies are based on
supply and demand, the rate at which a
Many experts see blockchain technology as having cryptocurrency can be exchanged for another
serious potential for uses like online voting and currency can fluctuate widely, since the design of
crowdfunding, and major financial institutions such many cryptocurrencies ensures a high degree of
as JPMorgan Chase (JPM) see the potential to lower scarcity.
transaction costs by streamlining payment
processing.4 However, because cryptocurrencies are Bitcoin has experienced some rapid surges and
virtual and are not stored on a central database, a collapses in value, climbing as high as $19,000 per
digital cryptocurrency balance can be wiped out by Bitcoin in Dec. of 2017 before dropping to around
the loss or destruction of a hard drive if a backup $7,000 in the following months.2 Cryptocurrencies
copy of the private key does not exist. At the same are thus considered by some economists to be a short-
time, there is no central authority, government, or lived fad or speculative bubble.
corporation that has access to your funds or your
personal information. There is concern that cryptocurrencies like Bitcoin
are not rooted in any material goods. Some research,
ADVANTAGES AND DISADVANTAGES OF however, has identified that the cost of producing a
CRYPTOCURRENCY Bitcoin, which requires an increasingly large amount
of energy, is directly related to its market price.
Advantages
Cryptocurrency blockchains are highly secure, but
other aspects of a cryptocurrency ecosystem,
including exchanges and wallets, are not immune to
the threat of hacking. In Bitcoin's 10-year history,
several online exchanges have been the subject of
hacking and theft, sometimes with millions of
dollars’ worth of "coins" stolen.

Nonetheless, many observers see potential

advantages in cryptocurrencies, like the possibility of
preserving value against inflation and facilitating
exchange while being easier to transport and divide
than precious metals and existing outside the
influence of central banks and governments.

WHAT IS CASHLESS TRANSACTIONS?

The cashless transaction refers to an operation that
takes place online between the two people,
organization or businesses. A digital transaction is a
form of transaction that takes place without any
physical appearance for example if you buy
something online and make payment through debit or
credit card that transaction or shopping considered to
be a cashless transaction. This process enables the
customer to buy anything from anywhere fast and
conveniently.

Here are some types of cashless transactions that can

be used in day-to-day dealings cheques and demand
drafts, E-wallets, net banking, IMPS and debit cards,
etc. These methods also have numerous benefits to go
cashless.

 Cashless transactions help to reduce the risk

of fake currency and cut down the printing
cost by large.
 Cards and mobiles are handier and easy to
carry which take less space as compared to
cash.
 Risk of robbery and theft will be reduced
automatically if there is less cash in wallets,
but the case of theft and loss of card can be
get blocked by just calling the card
company.
 The cashless digital transaction offers
numerous cashbacks offers in-kind or points.
 It is the easiest way to keep the record of
your expenses with a history.