Lecture - 01
E-Commerce (Electronic Commerce)
is the buying and selling of goods or services using the internet. It allows
people and businesses to trade online without needing a physical shop.
Customers can browse products, compare prices, make payments, and get
items delivered all through websites or mobile apps. E-Commerce also
includes online services like booking tickets, paying bills, or subscribing to
digital content. It saves time, offers convenience, and connects buyers and
sellers globally.
Example: Buying clothes from Daraz, Amazon, or ordering food from
Foodpanda are simple forms of E-Commerce.
Benefits/Features of E-Commerce
Shopping Anytime – Customers can buy products 24/7 without
waiting for shops to open.
Global Reach – E-Commerce allows businesses to sell worldwide,
not just in one city.
Low Cost – Running an online store is cheaper than a physical shop.
Convenience – People can shop from home using a phone or
computer.
Variety of Choices – Customers can see many products and brands
in one place.
Easy Payments – Online stores provide quick and safe payment
options.
E-Business means using the internet and digital technology to run
and manage a business. It is broader than e-commerce because it is not
only about buying and selling online, but also about handling other
business activities like customer support, online marketing, supply chain,
payments, and communication through digital tools. In simple words, e-
business is “doing business electronically.”
Example: A clothing company using its website for online orders, social
media for advertising, and email for customer service is practicing e-
business.
E-Commerce vs. E-Business
1. Meaning
E-Commerce (Electronic Commerce): Buying and selling of goods
and services through the internet.
E-Business (Electronic Business): Using the internet and digital
tools for all business activities, not just buying and selling.
2. Scope
E-Commerce: Focuses only on online transactions like shopping,
booking, payments.
E-Business: Covers wider activities like online marketing, supply
chain, customer support, training, and communication.
3. Example
E-Commerce: Ordering shoes from an online store.
E-Business: Managing inventory online, training staff digitally,
handling suppliers, and also selling online.
4. Technology Use
E-Commerce: Mainly uses websites, apps, and payment gateways.
E-Business: Uses websites, apps, intranets, extranets, CRM, and
ERP systems.
5. Relationship
E-Commerce is a part of E-Business.
Every E-Commerce activity is E-Business, but not every E-Business
activity is E-Commerce.
E-Commerce: Key Concepts
1. Friction-Free Commerce
This means shopping online is smooth and simple, without many barriers
like distance, time, or physical effort. Customers can shop from anywhere,
anytime.
Example: Ordering groceries from Daraz or Amazon without leaving home.
2. Lowered Search Costs
In e-commerce, customers can easily search and compare products,
prices, and features. This reduces the time and effort needed to find the
best option.
Example: Using Google Shopping or price comparison sites to find the
cheapest mobile phone.
3. Disintermediation
It means removing middlemen between producers and customers.
Businesses can sell directly to buyers, reducing extra costs.
Example: A farmer selling fresh fruits directly to customers via a website,
without going through a shop or distributor.
4. Price Transparency
Online shopping allows everyone to see prices clearly. Customers can
compare prices from different sellers instantly.
Example: Booking a hotel room on [Link] shows prices from many
hotels for easy comparison.
5. Elimination of Unfair Competitive Advantage
Earlier, local shops had an advantage because customers had fewer
choices. With e-commerce, everyone can access the same information and
options.
Example: A small online clothing brand can compete with a big brand
because both are visible on social media.
6. Information Asymmetries
In traditional markets, sellers often knew more than buyers, which gave
them an advantage. E-commerce reduces this gap because customers can
read reviews, ratings, and product details.
Example: Before buying a laptop on Amazon, customers read user reviews
to know if it’s really good.
7. Network Effect
The value of an e-commerce platform increases as more people use it.
More users mean more sellers and more choices, which attract even more
users.
Example: The success of platforms like eBay or OLX grows because many
buyers and sellers join.
Agency Roles vs. In-House Roles
🔹 Agency Roles
Definition: External companies hired to handle marketing.
Skills: Teams with experts in SEO, ads, content, social media.
Advantages:
o Wide industry experience.
o Creative and fresh ideas.
o Flexible to scale campaigns.
Disadvantages:
o Less focus on one brand.
o Can be costly.
🔹 In-House Roles
Definition: Marketing handled by employees within the company.
Skills: Staff works only for that business.
Advantages:
o Deep knowledge of brand and customers.
o Quick decisions and actions.
o More control and alignment.
Disadvantages:
o Limited resources and expertise.
o Harder to cover all marketing areas.
What is Digital Marketing?
Digital Marketing means promoting products or services using the internet
and online tools instead of only traditional methods (like TV, radio, or print).
It helps businesses connect with people where they spend most of their
time – online.
✅ Example: If a clothing brand shows ads on Facebook or ranks its
website on Google so people can find it, that’s digital marketing.
Types of Digital Marketing
Search Engine Optimization (SEO)
Search Engine Marketing (SEM)
Social Media Marketing (SMM)
Email Marketing
Content Marketing
Strategy vs Tactics (Examples)
Strategy (Big Plan) Tactics (Small Actions)
Increase website traffic Write SEO-friendly blog posts
Build brand awareness Run Instagram ads
Improve customer loyalty Send personalized emails
Generate more sales online Use Google PPC campaigns
Digital Marketing Process
Objective (What we want to achieve):
o Increase sales
o Build brand awareness
o Reach more customers online
Strategy (How we will do it):
o Know the target audience
o Choose right platforms (Facebook, Instagram, Google, etc.)
o Create useful and attractive content
Methods (Tools/Techniques used):
o Social media marketing
o Search engine optimization (SEO)
o Email marketing
o Online ads (PPC)
Result/Purpose (Why we do it):
o More traffic, leads, and sales
o Better customer relationships
o Business growth
Digital Marketing: Key Concepts
1. Search Engine Optimization (SEO)
SEO means improving a website so it shows up higher on Google and
other search engines without paying money. It uses keywords, quality
content, and links.
Example: A bakery writes blogs like “Best chocolate cake in Lahore” to
appear in Google searches when people type that phrase.
2. Search Engine Marketing (SEM)
SEM is paying search engines to show your ads when people search for
related terms. It includes both free SEO and paid ads.
Example: A clothing brand pays Google to display their ad when someone
searches “buy summer dresses.”
3. Pay-Per-Click Advertising (PPC)
PPC is a type of SEM where businesses pay only when someone clicks
their ad.
Example: An electronics store runs a Google ad for “buy smartphones,”
and pays only if someone clicks on the ad.
4. Analytics and Data Analysis
Analytics means studying data to understand how many people visited a
website, what they did, and where they came from.
Example: A blogger checks Google Analytics to see that most visitors
come from Facebook.
5. Content Management System (CMS)
A CMS is software that helps people create, edit, and manage website
content without technical skills.
Example: A business uses WordPress to easily update product details on
their website.
6. Digital Advertising Channels
These are different online platforms where businesses can advertise, like
Google, Facebook, Instagram, YouTube, and TikTok.
Example: A shoe brand advertises on Instagram Stories to reach young
audiences.
7. Influencer Marketing
This is when companies partner with popular social media personalities to
promote their products.
Example: A skincare company sends free products to a beauty YouTuber,
who reviews them for her followers.
8. Marketing Funnel
The funnel shows the customer journey from awareness to purchase.
Steps: Awareness → Interest → Decision → Action.
Example: A person sees a laptop ad (awareness), reads reviews (interest),
compares prices (decision), then buys (action).
9. Remarketing/Retargeting
Remarketing means showing ads to people who already visited your
website but didn’t buy.
Example: You check a travel site for flights, then later see ads for the same
flights on Facebook.
