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Chapter 8

Chapter 8. E-Commerce, Web 2.0, and Social Networking. Before the Internet…. How did we do business? How did companies communicate with customers? Who controlled the relationship? E-commerce: buying and selling of goods and services over public and private computer networks.

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Chapter 8

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  1. Chapter 8 E-Commerce, Web 2.0, and Social Networking

  2. Before the Internet… • How did we do business? • How did companies communicate with customers? • Who controlled the relationship? E-commerce: buying and selling of goods and services over public and private computer networks

  3. Evolution of Interorganizational Systems

  4. How do companies use E-Commerce? • E-Commerce is the buying and selling of goods and services over public and private computer networks • Merchant companies – take title to the goods they sell. They buy and then resell them. • Example? • Nonmerchant companies – arrange for the purchase and sale of goods without ever owning or taking title • Example?

  5. E-Commerce Merchant Companies • Types – May use different IS • Sell directly to customers • B2C • Sell to companies • B2B • Sell to government • B2G • Web storefronts – customers can manage orders

  6. Example

  7. Nonmerchant E-Commerce • Most common • Auctions • Others can serve specific industries or interests • Clearinghouses • Provide goods and services at stated prices and arrange for delivery but never take title • Electronic Exchange • Matches buyers and sellers

  8. How does E-commerce improve market efficiency? • Disintermediation • Elimination of middle layers in supply chain • Distribution directly to buyer • Eliminates carrying costs, shipping costs are reduced • Improved flow of price information • Customer can find best price for the value • Seller can understand price elasticity • Direct information from consumer • Price experimentation

  9. Web 2.0 Loose grouping of capabilities, technologies, business models, and philosophies First Example:

  10. Comparing Web 2.0 withTraditional Processing

  11. Group Exercise • Each group look at one of the characteristics • Compare and contrast the differences between Web 2.0 and Traditional Processing • What do the terms mean? • Can you find an example of the Web 2.0 characteristic?

  12. Software as a Service • Companies that don’t sell a product or license • They provide software as a service (free) • Thin client processing (no software installed) • Example: Google Maps

  13. Why is Web 2.0 important? • Use increases value • Participation and ownership differences • “Do what you want, we’ll publish it.”

  14. How can businesses benefit? • Advertising • Adwords – you pay to put your ad on sites or in search results • Adsense – others pay you to put their ad on your site • Social Networking • Mashups

  15. Internet Advertising (Extra content, not in book)

  16. Advertising • Targeted Advertising possible in Facebook • Location • Demographics • Interests • Send people to your site for information, to buy product, or to your Facebook page to become a fan

  17. Facebook Advertising • Designing the Ad • Choose External URL or a page • Title • Body • Picture

  18. Facebook Advertising • Target the Ad • Location • Demographics • Likes/Interests • Education • Workplace • Facebook Connections

  19. Facebook Advertising • Set the Budget

  20. Some Terms to Know • Total Impressions = How many times our ad is visible to users • Total Clicks = How many times users click on our ad to visit our page • Click Through Rate = Clicks/Impressions • Average CPM = Cost per 1000 impressions

  21. Tracking Clicks and $ on Facebook

  22. Designing the Ad • Choose type of ad • Text • Image • Display Ad • Mobile Ad

  23. Text Ad

  24. Display Ad

  25. Ad Settings

  26. Keywords • Make your own list • Use Keyword Tool to find other suggestions

  27. Tracking Ad Performance

  28. Comparing CPM toEvaluate Advertising Options • Print Advertising • $400 • 32,000 pieces • CPM = 400/32 = $12.50 • TV Advertising • $1500 • 135,000 viewers • CPM = $11.11 • Facebook Advertising • $2600 • 12 Million impressions • CPM = $0.22

  29. Extra Credit: The Mobile Movement • Watch video • How do you use your phone? • Over a 3 day period, log your use. • Summarize in a chart how you use your phone • Messages (text or email) • Information search • Purchases • Social Networking • Did use of your phone impact purchasing decisions? How?

  30. Social Capital • Investment in social relations with the expectation of returns in the marketplace • Adds Value by providing: • Information • Influence • Social Credentials • Personal Reinforcement • Total Value of your Social Capital: # and strength of relationships and the resources controlled by those related

  31. Over 100 million members • Professional network of contacts • Resume management/availability • Find and be introduced to potential business partners and experts • Interact in group settings • Recruiting

  32. Step One – Get Established • Establish your Profile • Contact information • Experience • Education • Recommendations

  33. Step Two – Get Connected • Add connections • Click on Contacts • Add connections from your: • Email addresses • Colleagues • Classmates • LinkedIn’s recommendations • See who others are connected with and send invitations • Rule of Thumb: Connect with whom you know

  34. Step Three – Get Involved Source: http://www.socialmediaexaminer.com/social-media-funnies-bikers-get-linkedin/

  35. Extra Credit • Create a profile on LinkedIn • Connect with me and other professors • Join a JMU group • Post a discussion item on LinkedIn • Advice: • Review your Facebook and Twitter presence and be sure that if you connect them on LinkedIn that there is nothing embarassingor inappropriate for a professional • If you don’t connect accounts, make sure your security settings are appropriately set on Facebook

  36. How Social Networks Add Value to Businesses • Number of relationships • Strength of relationships • Resources controlled by “friends” Traditional vs. Social Networking with Technology – How is it different?

  37. Business Applications for Facebook • Applications • Social • Useful • Expressive • Engaging • What apps on FB do you use?

  38. Should We Have a Group or Page? • Use for group interaction and communications • Consider Facebook Groups • Can be secret, open, or closed • Use for promotion to current or prospective customers • Consider Facebook Pages • Post variety of information related to your business • Profiles – for individuals

  39. Measuring Engagement (Extra content, not in your book)

  40. Engagement Ratio Engagement Ratio = # of Interactions Fans Interactions: • Likes to your posts • Comments on your post • Wall posts by others • Shares

  41. Comparing Engagement Ratios

  42. Beauty of Comparing Ratios • Denominator is # Fans – puts you in comparable terms with those who are much larger or smaller • Allows you to see what’s working • Downside – It’s manual

  43. Using Twitter

  44. Twitter’s Uses Short updates (140 characters or less) Instantaneous Relationship builder with those you may not know…yet Research on variety of topics Research of candidates

  45. An Analogy – Twitter is like a Party • Can be as large as you want it to be • Invite (Follow) people who tweet about things that interest you • People you can learn from • People you can help • What do you say? • What you would say when networking at a party • Use manners, show kindness, have fun • Source: http://www.inc.com/marla-tabaka/giving-up-on-twitter.html

  46. Twitter Terms • Following, Followers • Tweet, Retweet, and DM • Hashtags to know • #anyterm – used to categorize tweets • #hburg • #jmu • #fail • #ff – Follow Friday – recommendations on who to follow

  47. Business Application of Twitter • Dialogue with stakeholders • Public relations • Relationship sales • Market research

  48. User Generated Content (UGC) • Ratings and Surveys • Opinions • Customer Stories • Discussions • Wikis • Blogs • Videos

  49. Crowdsourcing • Users provide services to or on behalf of the vendor • Combines social networking, viral marketing, and open source design • Example: www.msdn.com

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