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Slide 4.

1
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
CHAPTER 4
E-ENVIRONMENT
Slide 4.2
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Learning outcomes

Identify te di!erent e"ements of an


organi#ation macro-en$ironment tat
im%act on an organi#ation e-&usiness and
e-mar'eting strategy

Assess te im%act of "ega"( %ri$acy and


etica" constraints or o%%ortunities on a
com%any

Assess te ro"e of macro-economic factors


suc as go$ernmenta" e-&usiness %o"icies(
economics( ta)ation and "ega" constraints*
Slide 4.3
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Management issues

+at are te constraints %"aced on


de$e"o%ing and im%"ementing an e-&usiness
strategy &y te
e-en$ironment,

+at factors in-uence te ado%tion of ne.


digita" media and o. can .e estimate
future demand for on"ine ser$ices,

Ho. trust and %ri$acy can &e assured for


te customer .i"e see'ing to acie$e
mar'eting o&/ecti$es of customer
ac0uisition and retention,
Slide 4.4
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
1LEPT 2actors

Macro-en$ironment

1ocia"

Lega"

Economic

Po"itica"

Tecno"ogica"
Slide 4."
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
1LEPT3 1ocia"

Inc"ude te in-uence of consumer


%erce%tions in determining usage of te
Internet for di!erent acti$ities
Slide 4.#
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
1LEPT3 Lega" and etica"

4etermine te metod &y .ic


%roducts can &e %romoted and so"d
on"ine

5o$ernments( on &ea"f of society( see'


to safeguard indi$idua"s rigt to %ri$acy
Slide 4.!
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
1LEPT3 Economic

Variations in te economic %erformance


in di!erent countries and region a!ects
s%ending %atterns and internationa"
trade
Slide 4.$
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
1LEPT3 Po"itica"

Nationa" go$ernments and transnationa"


organi#ations a$e an im%ortant ro"e in
determining te future ado%tion and
contro" of te Internet and te ru"es &y
.ic it is go$erned
Slide 4.%
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
1LEPT3 Tecno"ogica"

Canges in tecno"ogy o!er ne.


o%%ortunities to te .ays %roducts can
&e mar'eted
&ig're 4.1 ()aves of *hange+ , different ti-es*ales for *hange in the environ-ent
Slide 4.11
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
2actors go$erning Internet
ado%tion

Cost of access

Va"ue %ro%osition

Ease of use

1ecurity

2ear of te un'no.n
Slide 4.12
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Internet Access

Consumers and &usinesses .o uses


Internet $ary according to countries

+itin eac country( ado%tion of te


Internet $ary signi6cant"y according to
indi$idua" demogra%ic caracteristics

7road&and ado%tion
&ig're 4.2 .lo/al variation in n'-/er of 0Cs 1er h'ndred 1o1'lation and 1er*entage
Internet a**ess in 24
Source2 I34 5666.it'.int7I348D7i*t7statisti*s79
&ig're 4.3 :ariation in de-ogra1hi* *hara*teristi*s of 4; Internet 'sers2 5a9 gender,
5/9 age, 5*9 so*ial grade
Source2 eMori 3e*hnology 3ra*ker , 666.-ori.*o-7te*hnology7tra*kerdata.sht-l
Slide 4.1"
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Consumers in-uenced &y
using te on"ine canne"

Psycogra%ic segmentation

Rea"istic entusiasts

Con6dent &rand so%%ers

Carefree s%enders

Cautious so%%ers

7argain unters

8nfu"6""ed
&ig're 4.4 0er*entage /y *ategory 6ho /o'ght offline after resear*hing online
Source2 <rand=e6)orld2 >?L 4; 7 >nne Molen 5Cranfield S*hool of Manage-ent9 7 @enley Centre, 24
&ig're 4." Develo1-ent of eA1erien*e in Internet 'sage
Slide 4.1$
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
797 Pro6"es

Te %ercentage of com%anies .it


access

In-uenced on"ine

Purcase on"ine
&ig're 4.# 0er*entage of /'sinesses that order online
Source2 D3I 5249, &ig !.3a
Slide 4.2
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
+y %ersona" data are
$a"ua&"e,
:* Contact information
9* Pro6"e information
;* 7ea$iora" information <on a sing"e
site=
4* 7ea$iora" information <on mu"ti%"e
site=
Slide 4.21
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Etica" issues and data
%rotection
Etica" issues concerned .it %ersona" information
o.nersi% a$e &een usefu""y summari#ed &y
Mason <:>?@= into four areas3
:* Pri$acy A .at information is e"d a&out te
indi$idua",
9* Accuracy A is it correct,
;* Pro%erty A .o o.ns it and o. can o.nersi% &e
transferred,
4* Accessi&i"ity A .o is a""o.ed to access tis
information( and under .ic conditions,
Slide 4.22
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Etics A 2"etcerBs $ie.

2"etcer <9CC:= %ro$ides an a"ternati$e


%ers%ecti$e( raising tese issues of
concern for &ot te indi$idua" and te
mar'eter3
:* Trans%arency A .o is co""ecting .at
information,
9* 1ecurity A o. is information %rotected
once co""ected &y a com%any,
;* Lia&i"ity A .o is res%onsi&"e if data is
a&used,
Slide 4.23
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Te eigt %rinci%"es for data
%rotection
2air"y and "a.fu""y %rocessedD

Processed for "imited %ur%osesD

Ade0uate( re"e$ant and not e)cessi$eD

AccurateD

Not 'e%t "onger tan necessaryD

Processed in accordance .it te data su&/ectEs


rigtsD

1ecureD

Not transferred to countries .itout ade0uate


%rotection*
www.dataprotection.gov.uk
&ig're 4.! Infor-ation flo6s that need to /e 'nderstood for *o-1lian*e 6ith data
1rote*tion legislation
Slide 4.2"
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Anti-s%am "egis"ation

To %rotect indi$idua" %ri$acy and .it


intention of reducing s%am or unso"icited
commercia" e-mai" <8CE=

F1ending Persistent Annoying e-Mai"B

Anti-s%am "egis"ation can &e $ie.ed at


tt%3GG...*s%am"a.s*com
Slide 4.2#
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
A$oiding 1PAM
Slide 4.2!
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Regu"ations on %ri$acy and
e"ectronic communications

Pri$acy and E"ectronic Communications


Regu"ations <PECR= Act
:* A%%"ies to consumer mar'eting using
emai" or 1M1 te)t messages
9* Is an Fo%t-inB regime
;* Re0uires an o%t-out o%tion
4* 4oes not a%%"y to e)isting customers
.en mar'eting simi"ar %roducts
H* Contact detai"s must &e %ro$ided
Slide 4.2$
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Regu"ations on %ri$acy and
e"ectronic communications
@* Te F2romB identi6cation of te sender
must &e c"ear
I* A%%"ies to direct mar'eting
communications
?* Restricts te use of coo'ies
Slide 4.2%
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
8nderstanding coo'ies

A data 6"e %"aced on your com%uter tat


identi6es an indi$idua" com%uter

Persistent

Tem%orary or session

2irst-%arty

Tird-%arty

Coo'ies are stored as indi$idua" te)t 6"es

da$eJca!eyK&ritisJair.ays*t)t

2LTJVI1LM3&a%#Rn5d)7N88L43Ou"-9H-
:>>>L&ritis-air.ays*comLC 49H9H>>C4
9>;HI4 9@ ::ICI4I>;@ P
Slide 4.3
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
8sing Coo'ies
Slide 4.31
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
+at are coo'ies used for,

Persona"i#ing a site for indi$idua"

On"ine ordering systems

Trac'ing .itin a site

Trac'ing across sites


Slide 4.32
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Vira" e-mai" mar'eting

To reassure .e& users a&out treats to


teir %ersona" information

TR81Te

I1I1 A a 8M accreditation initiati$e

getsafeon"ine
Slide 4.33
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
TR81Te and I1I1
Slide 4.34
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Cec'"ist of com%"iance

2o""o. %ri$acy and consumer %rotection

Inform te user

As' for consent for co""ecting sensiti$e %ersona"


data

Reassure customers &y %ro$iding c"ear %ri$acy


statements

Let indi$idua" 'no. .en coo'ies are used

Ne$er co""ect or retain %ersona" data

Amend incorrect data

On"y use data for mar'eting

Pro$ide te o%tion to sto% recei$e information

8se a%%ro%riate security tecno"ogy


Slide 4.3"
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Lega" A 1%arro.s eigt areas
:* Mar'eting your e-commerce &usiness
9* 2orming an e"ectronic contract
;* Ma'ing and acce%ting %ayment
4* Autenticating contracts conc"uded o$er
te Internet
H* E-mai" ris's
@* Protecting Inte""ectua" Pro%erty
I* Ad$ertising on te Internet
?* 4ata %rotection*
Slide 4.3#
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
:*Mar'eting your e-commerce
&usiness

4omain name registration

8sing com%etitor names and trademar's


in meta tags

8sing com%etitor names and trademar's


in %ay-%er-c"ic' ad$ertising

Accessi&i"ity "a.
Slide 4.3!
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
9*2orming an e"ectronic
contract

E-commerce sites must contain easi"y


accessi&"e content tat c"ear"y states

Te com%anyBs identity inc"uding address

Te main features of te goods or ser$ices

Prices information

Te %eriod for .ic te o!er or %rice is


$a"id

Payment( de"i$ery and fu"6""ment

1u&stitution
Slide 4.3$
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
EconomicGPo"itica"

Ensuring com%anies com%etiti$e

2unding for education and tecno"ogy

Promoting ne. tecno"ogy e*g* &road&and :9Q in 8M( ICQ


Tai.an( 1out Morea

Acie$ing go$ernment eRciencies

E-go$ernment A a"" 8M ser$ices on"ine &y 9CCH

1inga%ore FInte""igent Is"andB

Ta)ation regimes

Legis"ation for o!sore trading*


&ig're 4.$ > fra-e6ork des*ri/ing the e8e*ono-y
Source2 <ooB >llen @a-ilton 5229. International E-Economy: Benchmarking The Worlds Most Effectie !olicy for the E-Economy. Ce1ort 1'/lished 1% =ove-/er, London.
666.e8envoy.gov.'k7oee7oee7nsf7se*tions7s'--itD/en*h-arking7Efile7indeA1age.ht- Cro6n *o1yright 22
&ig're 4.% Leaders and laggards in e8*o--er*e
Source2 2" >da1ted fro- E*ono-ist Intelligen*e 4nit data 2", E*ono-ist Intelligen*e 4nit
Slide 4.41
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
E-commerce and
g"o&a"i#ation

Te increase of internationa" trading and


sared socia" and cu"tura" $a"ues

Language and cu"tura" understanding

Eng"is &ecoming te "ingua franca of


commerce

Tai"oring e-commerce ser$ices for


indi$idua" countries or regions
Slide 4.42
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Loca"i#ation
Slide 4.43
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Po"itica" factors

Promoting te &ene6ts of ado%ting te


Internet

Enacting "egis"ation to %rotect %ri$acy or


contro" ta)ation

Pro$iding guide"ines and assistance for


com%"iance .it "egis"ation

1etting u% internationa" &odies to


coordinate te Internet
Slide 4.44
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
E-go$ernment

Te a%%"ication of e-commerce
tecno"ogies to go$ernment and %u&"ic
ser$ices
Slide 4.4"
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Tecno"ogica" issues

Need to &e a&"e to assess ne. inno$ation

Rate of cange

+ic ne. tecno"ogies sou"d .e ado%t,

Monitoring for ne. tecni0ues

E$a"uation A are .e ear"y ado%ter

Re-s'i""ing and training

Are our systems secure,


&ig're 4.1 Diff'sion,ado1tion *'rve
&ig're 4.11 EAa-1le of a .artner hy1e *y*le
Source2 .artner 52"9 .artner+s @y1e Cy*le S1e*ial Ce1ort for 2"
&ig're 4.12 >lternative res1onses to *hanges in te*hnology
Slide 4.4%
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Acti$ity 4*:

List a"" te socia"( "ega" and etica" issues


tat te manager of a se""-side e-
commerce .e& site needs to consider to
a$oid damaging re"ationsi%s .it users
of is or er site or .ic may "ea$e te
com%any facing %rosecution*

Nou can &ase your ans.er on issues .ic


may concern you( your friends or your
fami"y .en accessing a .e& site*
Slide 4."
Dave Chaffey, E-Business and E-Commerce Management, 3
rd
Edition Marketing Insights Ltd 2!
Acti$ity ans.er A tis "ecture

Coo'ies A "a.s and consumer %erce%tion on %"acing


tese

Are .e "imiting access to information from certain


sections of society <socia" e)c"usion=,

Pri$acy of %ersona" information entered on a .e&


site

1ending unso"icited e-mai"

Re%"ying %rom%t"y to e-mai"

Co%yrigt

1ite content and %romotiona" o!ersGad$erts are in


'ee%ing .it te di!erent "a.s in di!erent
countries

Pro$iding te)t( gra%ics and %ersona"ity in 'ee%ing


.it socia" mores of di!erent countries