Moor Thy

Internet marketing

Internet marketing, also known as digital marketing, web marketing, online

marketing, search marketing or e-marketing, is the marketing (generally promotion) of

products or services over the Internet.

Internet marketing is considered to be broad in scope because it not only refers to marketing on

the Internet, but also includes marketing done via e-mail and wireless media. Digital customer

data and electronic customer relationship management (ECRM) systems are also often grouped

together under internet marketing.

Internet marketing ties together the creative and technical aspects of the Internet, including

design, development, advertising, and sales. Internet marketing also refers to the placement of

media along many different stages of the customer engagement cycle through search engine

marketing (SEM), search engine optimization (SEO), banner ads on specific websites, email

marketing, and Web 2.0 strategies.

Contents

1 Business models

o 1.1 One-to-one approaches

o 1.2 Appeal to specific interests

o 1.3 Niche Marketing

o 1.4 Geo-targeting

o 1.5 6 key principles of persuasion by Robert Cialdini

2 Advantages and Limitations of Internet marketing

o 2.1 Advantages

o 2.2 Limitations

3 Security concerns

4 Usage trends

5 Effects on industries

o 5.1 Internet auctions

o 5.2 Advertising industry

Business models

Internet marketing is associated with several business models:

E-commerce : a model whereby goods are sold directly to consumers (B2C),

businesses (B2B), or from consumer to consumer (C2C).

Lead -based websites: a strategy whereby an organization generates value by

acquiring sales leads from its website. Similar to walk-in customers in retail world.

These prospects are often referred to as organic leads.

Affiliate Marketing : a process wherein a product or service developed by one entity

is sold by other active sellers for a share of profits. The entity that owns the product

may provide some marketing material (e.g., sales letters, affiliate links, tracking

facilities, etc.); however, the vast majority of affiliate marketing relationships come

from e-commerce businesses that offer affiliate programs.

Local Internet marketing: a strategy through which a small company utilizes the

Internet to find and to nurture relationships that can be used for real-world

advantages. Local Internet marketing uses tools such as social media marketing,

local directory listing, and targeted online sales promotions.

One-to-one approaches

In a one-to-one approach, marketers target a user browsing the Internet alone and so

that the marketers' messages reach the user personally. This approach is used in

search marketing, for which the advertisements are based on search

engine keywords entered by the users. This approach usually works under the pay per

click (PPC) method.

Appeal to specific interests

When appealing to specific interests, marketers place an emphasis on appealing to a

specific behavior or interest, rather than reaching out to a broadly defined

demographic. These marketers typically segment their markets according to age group,

gender, geography, and other general factors.

Niche Marketing

Niche and hyper-niche internet marketing put further emphasis on creating destinations

for web users and consumers on specific topics and products. Niche marketers differ

from traditional Internet marketers as they have a more specialized topic

knowledge. For example, whereas in traditional Internet marketing a website would be

created and promoted on a high-level topic such as kitchen appliances, niche marketing

would focus on more specific topics such as 4-slice toasters.

Niche marketing provides end users of such sites very targeted information, and allows

the creators to establish themselves as authorities on the topic or product.

Geo-targeting

In Internet marketing, geo targeting and geo marketing are the methods of determining

the geolocation of a website visitor with geolocation software, and delivering

differentcontent to that visitor based on his or her location, such as latitude and

longitude, country, region or state, city, metro code or zip code, organization, Internet

Protocol (IP) address, ISP, and other criteria.[citation needed]

6 key principles of persuasion by Robert Cialdini

1. Mutual

You share useful information through a blog with potential clients (e-

books, articles, videos) so they can evaluate these materials in dignity and in the future

would buy their full versions.

2. Deficit

Each year during Christmas time everyone is trying to get some super toy willing to pay

a lot of money because of its exclusivity. Rare things or events (collectibles, a chance to

meet a celebrity, rock concert tickets) are valued much higher than normal. Artificial

creation of scarcity is a very effective technique, and skill in applying it to market for new

products.

3. Sympathy

Give the audience an opportunity to know you better through various channels of

communication express your individuality and share your thoughts through blog posts or

video, actively use Facebook, Twitter and other social media. Keep in mind and people

will be pulled towards you so will be easier to influence.

4. Good reputation

To gain influence you must possess not only fame but also expertise with the good

reputation in your field. Users will not follow you just like that but the skill and

experience can serve as a good bait for them. Become a highly qualified specialist and

share your knowledge supported by examples from the real life. You don’t have to be

the most intelligent it is enough to know the target audience.

5. Popularity

Man by nature is a gregarious animal. We all tend to look at others and act as they do.

For example, in the 2nd quarter turn in front of the restaurant shows its demand by the

public and thus will grow further because if people are willing to wait so long to get

inside there should be very cool. Make sure that everybody knows about it. If you have

managed to sell a million copies of a product, build an ad on it. If the server does not

withstand an influx of visitors apologizing for the lack of access to the site mention the

cause. The principle is clear it’s useful to flaunt popularity and evidence.

6. Persistence

Start a long term project in the area that you are interested in, develop strategy for the

creation and dissemination of materials that carry people favor and stick to it. For

example starting a blog for profit set a frequency of adding records and does not

undermine it even in the absence of a response.

Advantages and Limitations of Internet marketing

Advantages

Internet marketing is inexpensive when examining the ratio of cost to the reach of the

target audience. Companies can reach a wide audience for a small fraction of traditional

advertising budgets. The nature of the medium allows consumers to research and to

purchase products and services conveniently. Therefore, businesses have the

advantage of appealing to consumers in a medium that can bring results quickly. The

strategy and overall effectiveness of marketing campaigns depend on business goals

and cost-volume-profit (CVP) analysis.

Internet marketers also have the advantage of measuring statistics easily and

inexpensively; almost all aspects of an Internet marketing campaign can be traced,

measured, and tested. The advertisers can use a variety of methods, such as pay per

impression, pay per click, pay per play, and pay per action. Therefore, marketers can

determine which messages or offerings are more appealing to the audience. The results

of campaigns can be measured and tracked immediately because online marketing

initiatives usually require users to click on an advertisement, to visit a website, and to

perform a targeted action.

Limitations

However, from the buyer's perspective, the inability of shoppers to touch, to smell, to

taste, and "to try on" tangible goods before making an online purchase can be

limiting. However, there is an industry standard for e-commerce vendors to reassure

customers by having liberal return policies as well as providing in-store pick-up services.

Security concerns

Information security is important both to companies and consumers that participate in

online business. Many consumers are hesitant to purchase items over the Internet

because they do not believe that their personal information will remain private. Some

companies that purchase customer information offer the option for individuals to have

their information removed from the database, also known as opting out. However, many

customers are unaware if and when their information is being shared, and are unable to

stop the transfer of their information between companies if such activity occurs.

Another major security concern that consumers have with e-commerce merchants is

whether or not they will receive exactly what they purchase. Online merchants have

attempted to address this concern by investing in and building strong consumer

brands and by leveraging merchant and feedback rating systems and e-

commerce bonding solutions. All these solutions attempt to assure consumers that their

transactions will be free of problems because the merchants can be trusted to provide

reliable products and services. Additionally, several major online payment mechanisms

(credit cards, PayPal, Google Checkout, etc.) have provided back-end buyer protection

systems to address problems if they occur.

Usage trends

Technological advancements in the telecommunications industry have dramatically

affected online advertising techniques. Many firms are embracing a paradigm that is

shifting the focus of advertising methodology from traditional text and image

advertisements to those containing more recent technologies like JavaScript andAdobe

Flash. As a result, advertisers can more effectively engage and connect their audience

with their campaigns that seek to shape consumer attitudes and feelings towards

specific products and services.

Effects on industries

The number of banks offering the ability to perform banking tasks over the internet has

increased. Online banking appeals to customers because it is often faster and

considered more convenient than visiting bank branches.

Internet auctions

Internet auctions have become a multi-billion dollar business. Unique items that could

only previously be found at flea markets are now being sold on Internet auction

websites such as eBay. Specialized e-stores sell a vast amount of items like antiques,

movie props, clothing, gadgets, and so on

As the premier online reselling platform, eBay is often used as a price-basis for

specialized items. Buyers and sellers often look at prices on the website before going to

flea markets; the price shown on eBay often becomes the item's selling price.

Advertising industry

In addition to the major effect internet marketing has had on the technology industry, the

effect on the advertising industry itself has been profound. In just a few years, online

advertising has grown to be worth tens of billions of dollars

annually. PricewaterhouseCoopers reported that US$16.9 billion was spent on Online

marketing in the U.S. in 2006.

This has caused a growing impact on the United States' electoral process. In 2008,

candidates for President heavily utilized Internet marketing strategies to reach

constituents. During the 2007 primaries candidates added, on average, over 500 social

network supporters per day to help spread their message. President Barack

Obama raised over US$1 million in one day during his extensive Democratic candidacy

campaign, largely due to online donors.

Several industries have heavily invested in and benefited from internet marketing and

online advertising. Some of them were originally brick and mortar businesses such

aspublishing, music, automotive or gambling, while others have sprung up as purely

online businesses, such as digital design and media, blogging, and internet service

hosting.

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Case Studies

Internet Marketing Programs Website Design and SEO Program Online Marketing Campaign Management Complete Distribution Guest Connect Reporting & Analytics Channel & Revenue Management Consulting Revenue Management Consulting

Internet Marketing Programs

Luxury Resort & Spa Case StudyMontage Resort & Spa, Laguna Beachwww.montagelagunabeach.com

Montage Resort & Spa, which opened in February 2003, is a 262-room ultra-luxury resort located in Laguna Beach, California, serving both affluent leisure travelers and group business clientele. The property is the recipient of many prestigious awards including: Conde Nast Traveler's Annual Reader's Choice Awards - Ranked #2 U.S. Resort (November 2004) and Spa Montage - Five Stars from Mobil Travel Guide (April 2005), "100 Best Places to Stay" - Robb Report Luxury Resorts (2006), Voted One of "The World's Best Hotels" - Travel + Leisure Magazine (2006), and "Best of the Best" - Celebrated Living (2006).

The Challenge:

As the flagship property for a new luxury hotel brand, Montage Resort & Spa, Laguna Beach, initially approached E-site Marketing to design a Website and develop and implement a fully integrated, strategic online marketing program that would:

Establish and promote brand awareness for a newly-formed, ultra-luxury hotel company/brand

Position the flagship property online during critical stages of the resort's opening phase, as well as into the future

Generate and increase qualified leads, conversion potential and significant revenue sources to meet ambitious online sales goals

Hotel Management Company Case StudyDestination Hotels and Resorts

Destination Hotels & Resorts is one of the industry's leaders in the management and marketing of high-quality independent properties, many of which were successfully converted from major brand affiliations. Over the years Destination Hotels & Resorts, a wholly owned subsidiary of Los Angeles-based Lowe Enterprises, has grown to be the fifth largest independent management company in the United States, managing a portfolio in excess of a billion dollars.

The Challenge: Build online brand awareness and increase revenues across the portfolio of 30(+)

properties/independent hotels. Consistent tracking across the portfolio to demonstrate ROI to asset owners. Implement uniform corporate Information Architecture & E-commerce guidelines. Increase email capture to support CRM initiative. Increase online market share against larger and established hotel brands.

Website Design and SEO Program

Spa Resort Case StudyLake Austin Spa Resortwww.lakeaustin.comLake Austin Spa Resort, located outside of Austin Texas, offers world-class spa services and has been honored by the Zagat Survey as the Number Five Spa in the U.S. and by Condé Nast Traveler, Travel + Leisure and Luxury Spafindermagazines as a Top U.S. Spa.

The Challenge:Although the Lake Austin Spa Resort determined they had built a solid base of local business and developed a loyal following of destination spa visitors, they felt they were not reaching the growing audience of potential spa guests conducting research online. E-site Marketing was retained to develop and implement strategies that would:

Improve and enhance Lake Austin Spa Resort's online exposure Increase incremental revenues generated via the Website's online store

Online Marketing Campaign Management

Case Study:  Online Advertising - Re-targetingAKAhttp://www.hotelaka.com

AKA is a collection of eight luxury extended-stay properties within the Washington DC, Philadelphia and New York metro areas with plans to expand to Los Angeles and London.  They specialize in extended stays of seven nights or more and offer the luxury and comfort of a fully appointed condominium with the convenience of hotel amenities.

ChallengeWith a limited budget, AKA wanted to generate revenue from long-term stay guests, AKA's ideal target market.

Leveraging Social Media as a Distribution ChannelThe Arizona Grand Resortwww.arizonagrandresort.com/ 

The Arizona Grand Resort, a Classic Hotels and Resorts managed property, is the leading Arizona family getaway and Southwest meetings destination.  As a long-time customer of Sabre Hospitality Solutions they take advantage of a variety of online marketing programs to help drive qualified business to their Website including social media programs like RSS feeds, Twitter and Facebook.  Their goal was to find new ways to ensure these efforts yielded results.

The Challenge:

Effectively leverage social media as a distribution channel and tap into and existing fan base to drive incremental revenue to the hotel.         

Social Media - Building FansThe Huntley Hotelhttp://www.thehuntleyhotel.com/

The Huntley Hotel is a four-star luxury hotel located beachfront in Santa Monica, CA.  Sabre Hospitality Solutions works with The Huntley Hotel on a variety of programs including Website development, search engine marketing and social media.

The Challenge:After creating a Facebook page The Huntley Hotel's "fans" began to plateau around 700.  The hotel turned to the social media team at Sabre Hospitality Solutions for a strategy to build its Facebook audience and ultimately drive new customers to the hotel.

City Hotel Case StudyThe Hay-Adamswww.hayadams.comThe Hay-Adams is a 145 room independent, luxury hotel located directly across from the White House, in Washington, DC. The AAA Four Diamond property, and member of Leading Hotels of the World, is ranked on Conde Nast Traveler's Gold List as one of the Top 75 North American Hotels.

The Challenge:Upon completion of an extensive restoration, during which period the hotel was closed, The Hay-Adams wanted to increase awareness of the restoration effort and the grand reopening of the hotel, as well as special promotional rates for the reopening.

The Challenge Properties needed to be on one CRS platform that provided efficient product

management. Front desk sales agents needed a more effective way to sell individual properties

and properties across the brands. Management needed a CRS platform that "communicated" with the PMSs

The Challenge Finding new technology to fulfill the vision of a growing hotel company Managing all channels from a single point of entry to help optimize revenue and

ADR Achieving a single-image of inventory of all reservations

Shell Hospitality Incorporates Suite of SynXis Solutions, Boosts GDS Bookings by Over 40%

"We have a great success story with SynXis! The team really understands our needs and has been instrumental in helping us grow our revenues through their innovative products and services. The results speak for themselves." Karen Johnson, Vice President, Sales and Marketing, Shell Vacations HospitalityShell Vacations Hospitality, a collection of 23 upscale international timeshare properties, needed a solution to help streamline their reservations process. Shell chose SynXis for its comprehensive CRS solutions to increase revenues and drive down overall costs.

The Challenge Taking advantage of the growing online distribution channel Reservation calls were going to individual properties and were not always efficient With a timeshare business model, owners lose money when rooms go unused so it

is critical that rooms can sell quickly. Needed to have high conversion rates from prospects Property Management System (PMS) was not integrated to CRS

Guest Connect

Case study: Portuguese chain increases reservations through their Website by over 190% after implementing Sabre Hospitality's Guest Connect booking engineVila Gale was founded in 1986 and has since established itself as one of the largest Portuguese hotel groups with 23 hotels in Portugal and Brazil. Their core values are innovation, reliability, ambition, guarantee, accessibility, efficiency and freedom to meet their long term objective to "always be close to" their customer.

The Challenge: Vila Gale was looking for a fast, simple and interactive booking engine. As a hotel group with very different unique selling points across their chain, Vila Gale wanted a booking engine that would best help them merchandise each property's experience. Further, the group wanted to increase revenue generated by them directly.

User-friendly booking engine and control center; Highly international system available in multiple languages, currencies;  Abilityto have control over the design and process on hotel group level; Streamlined booking process across their properties; Improved consumer experience through the booking process to help them convert

guests through their site.

Aqua Hotels & Resorts switch to Guest Connect and conversions increase by 38%"Visitors to our website have found our new booking engine very easy to use as evidenced by the huge increase in conversions, bookings and revenue!  We've found the multi-step booking process to enhance usability as consumers are familiar with this way of shopping.  Another benefit of switching to Guest Connect has been a decrease

in questions about the website booking process to our central reservations office; guests are now comfortable completing the whole booking online."Amber Watt, Directory of Internet Strategy, Aqua Hotels & ResortsAqua Hotels & Resorts is a full-service hotel management company with 16 properties throughout Hawaii catering to a wide range of travelers.  Aqua's goal was to power its website  with a booking engine that gave visitors a simple way to shop for and book exactly what they wanted.  Because of the wide range of markets served they needed unlimited merchandising flexibility to showcase each property's unique offerings.  In order to gain better operational, marketing and revenue management efficiencies Aqua also needed a system that could be managed at the chain-level.

Aqua Hotels & Resorts needs: Fast and reliable booking engine to accommodate the growing online market Easy and intuitive user interface that enabled guests to complete the entire booking

online without overburdening the reservations call center Increase revenues per booking by selling packages and ancillary products during

the booking process Increase efficiency in revenue management, marketing, operations and

reservations across the group Enable guests to make multiple reservations with one booking

DeHistoriske sees an almost 50% increase in bookings after switching properties to Guest Connect Booking Engine"We are thrilled with the results we've seen since switching to SynXis. Recently we have experienced a growth in demand and interest in our product that required a booking engine whose capabilities could meet a variety of different customer and property needs. Guest Connect can accommodate both our individual property's needs as well as our brand."Nils Henrik Geitle, Managing Director, DeHistoriskeDe Historiske - Historic Hotels and Restaurants of Norway, a collection of 37 unique and distinguished properties across Norway, needed a solution to help drive revenue to their properties through their own booking engine. The chain was looking for a booking engine that would help them increase exposure to online customers, in addition to a distribution partner whose account management team was experienced and could assist them with implementing their strategy.

The Challenge De Historiske needed a strong online technology solution to help grow its presence

on the Internet. De Historiske required a booking engine which would give property managers the

flexibility to market each property to a diverse customer base.

Reporting & Analytics

Magnolia Hotels adds SynXis Internet Marketing and RezTrack Reporting Tools, Improves Year Over Year Bookings By Almost 12%"We need the flexibility to try new and innovative marketing programs and know immediately what works to drive more business and what doesn't. All the data we need is available in the RezTrack Report and SynXis' Internet Marketing Portal. Together these tools have been a tremendous help in guiding us on where to spend our marketing dollars to ensure the highest return."Mike Pratt, Vice President, Sales & Marketing, Magnolia HotelsMagnolia Hotel, a privately-held hotel management and development company headquartered in Denver, Colorado, manages four-star hotel properties in four different cities in the United States, all situated in historic buildings and prime downtown locations. Magnolia Hotels chose to implement the SynXis RezTrack® and Internet Marketing Reporting Tools to gain a better understanding of return on investment for its E-marketing campaigns as well as increase its look to book ratios and reservations on its booking engine.

The Challenge Reservation tracking was processed manually through rate codes and via multiple

locations. Manual tracking resulted in unorganized data. Lack of reliable data made it difficult to know where to spend marketing dollars. Customer database was not growing quickly enough, slowing down new customer

acquisitions and return visits from previous guests.

Channel & Revenue Management Consulting

The Challenge Room reservations coming through the GDS channel were dropping Only one standard public rate had been set-up in GDS and the property's general

manager felt that they were lacking a targeted revenue strategy Hotel felt they could maximize exposure to other channels as well

Revenue Management Consulting

The Challenge Limited staff for monitoring competitive pricing and room occupancy Difficulty managing inventory, stay restrictions, and pricing on a consistent basis Steep occupancy drop-offs during off-peak season (June, July, August) Weak distribution channel production

Reporting & Analytics Testimonials Case Studies Research & Articles

Top Players in the E-Commerce Sector in India:• ASA Systel Communications Private Limited• Candid Info• Chenab Information Technologies Private Limited• Eurolink Systems Limited• HashPro Technologies• Compare Info Base• Sanver E-Solutions• Planet Asia• Candid Web Technology• Trisoft Design

Some of the details regarding these top players in the E-Commerce Sector is given below:

ASA Systel Communications Private Limited:They are engaged in the business of construction of e-commerce websites and portals to different organizations. They use the latest security methods and mode of payment and they have offices at different parts of the country like Lucknow, Chennai, Bhopal, Mumbai and Delhi.Candid Info:Candid Info are based in New Delhi and they are popular in the field of offshore outsource web designing and development. They also offer SEO Solutions and they are specialists in Blog, SEO, Portfolio, E-commerce solutions and web hosting.Chenab Information Technologies Private Limited:They use state-of-the-art internet tools, technologies for their web based e-commerce services, and they have software development centres at the city of Mumbai and at New York as well. They hold the pride of being the first ever company in the world to get ISO 9001:2000 certification.Eurolink Systems Limited:They offer Trillium protocol services, Flex TCA systems and e-business solutions to their customers all over the globe. The combine COTS hardware and software to customize the requirement of each of their customers. They have offices at different countries like Switzerland, the US and England.HashPro Technologies:They offer services like strategic planning and designing, implementation, development and traditional analysis of e-business and they are leaders in the integrated talent management software field. They offer services like internet marketing, e-commerce hosting and they are hoping to become 100% e-corporation with their e-workforce initiative.Compare Info Base:

They are leaders in IT and e-commerce solutions and they manage more than 4000 domain names and 1500 web portals and websites. They have made their web presence felt in different fields like greetings, media, education, travel, GIS, software development and maps. They have earned very good name in purchase and sale of e-business and they are specialist in PHP programming & development, web development services and content development services.Sanver E-Solutions:Sanver E-Solutions are based in Mumbai and they believe information technology as a means of attaining their objectives. They are offering personal business solutions and personalized services with the help of information and communication technology. They are also specialist in other areas like CRM & SFA, CRM Hosting and implementation.Planet Asia:They offer high quality Business to Partner, Supplier and Customers (i.e.) B2SPEC solutions to international companies with the help of their deep experience and track record in externalized applications.Candid Web Technology:They offer the best service for dynamic development and designing of websites. They have a large client base ranging from small companies to big corporates.Trisoft Design:They offer service exclusively on Microsoft platform to their customers located in different countries. They are leaders in the .Net technology, which they have gained because of their experience.E-Commerce Companies offer the finest and most tangible e-commerce solutions and they offer high-end e-commerce solutions with focus on the security and privacy of the e-commerce website. These e-commerce companies contribute their great share to the development of country by offering wide range of employment opportunities.

E-COMMERCE COMPANIES IN INDIA

ABSTRACT

E-commerce is in its boom everywhere and India is no exception. All businesses whether they are small or big have their

websites. But e-commerce is much more than just buying and selling over the Internet. According to Robert J. LeBlanc,

Vice President Software Strategy, IBM, having a Web site doesn't mean you're ready for e-Business. Today e-Business is

about using Internet technologies to transform key business processes. It's about strengthening relationships with

stakeholders...capitalizing on new business opportunities...increasing efficiency...and becoming more customer-centric.

Choi, Stahl and Whinston (2002) found business-to-business activities in electronic commerce include: •Internal

electronic mail and messaging, online publishing of corporate documents , online searches for documents….

Concentrating on software selling firms in India what researcher endeavor to do in this research is

1. To examine the growth of e-commerce in both physical and financial terms.

2. To identify key characteristics of the firms engaged in e-commerce.

3. To conduct constraint analysis of e-commerce and

4. To develop a strategic plan for effective dissemination of e-commerce in India.

Results of first and last two objectives have already been published so results of second objective are being presented in

this particular paper.

KEYWORDS

E-commerce, physical characteristics, qualitative characteristics, software companies

1. INTRODUCTION

We can see that businesses indulged in E-commerce are increasing in number day by day. This is because Ecommerce has an edge over traditional commerce.” In the future, there will be no distinction between’dotcom’and traditional businesses, just winners and losers. Internet strategies that focus on speed, efficiency and

Report on e-commerce (2001) the Internet revolution generated a lot of hype. The hype resulted in

astronomical valuations for dotcoms that attempted to transfer value from established “old economy” players

to themselves. In India too, massive venture capital flows into start-ups fuelled a “land grab” phase. Leading

companies bought into the threat that companies who do not aggressively embrace the Internet would suffer a

competitive disadvantage. This is the reason why India also companies are developing and launching their

web sites. But having a web site does not guarantee success of business. According to Robert J. LeBlanc,

Vice President Software Strategy, IBM, having a web site doesn't mean you're ready for e-Business. Today eBusiness is about using Internet technologies to transform key business processes. It's about strengthening

relationships with stakeholders...capitalizing on new business opportunities...increasing efficiency...and

becoming more customer-centric. Choi, Stahl and Whinston (2002) found business-to-business activities in

electronic commerce include: •Internal electronic mail and messaging, online publishing of corporate

documents, online searches for documents, projects and peer knowledge, distributing critical and timely

information to employees, managing corporate finance and personnel systems, manufacturing logistics

management, supply chain management for inventory, distribution and warehousing, sending order

processing information/reports to suppliers and customers, Tracking orders and shipments.

IADIS Internacional Conference e-Commerce 2004

RESEARCH OBJECTIVE

To identify key characteristics of the firms engaged in e-commerce in India and conduct constraint analysis.

Since constraint analysis has already been published key characteristics of firms are identified in this

particular paper.

RESEARCH METHODOLOGY

The study was carried out in India and the focus in this study was on the software companies in India. As the

research was aimed to study characteristics of the e-commerce companies’ top-level management is most

concerned with it. So only CEO, MD or GM was interviewed from each organization. The size of sample for

study of software Industry is 150. To make the sample more authentic and representative Indian software

companies were randomly selected. Thirty physical and qualitative indicators were selected as independent

variables for the study. The data were collected personally by the researcher through well-structured

interview schedules developed for the purpose. The respondents were interviewed personally and

individually. Qualitative data were quantified, appropriately tabulated and analysed. Standardized statistical

techniques as percentage, frequency, weighted mean were applied to draw inferences. SPSS software was

used for statistical analysis.

RESULTS AND DISCUSSION

Existing Status of Software Companies

The status of different software companies has been presented in the following Table 1. Mainly physical and

qualitative indicators can present the status of software companies. Location of company, form of

organization, number of employees and capital investment describe physical character of the software

company, while the features of website gives an overview of qualitative characteristics of the company.

a) Physical Indicators

It is apparent from Table that near about one third of the companies (32.7%) had established their software

companies in Hyderabad, while 27.3 per cent of companies had set up their units in or nearer to Delhi. The

findings show that 23.3 per cent companies were located in other town or cities and 16.7 per cent in other

metropolitan cities. If we add number of companies in Hyderabad and Delhi to metropolitan cities, we can

conclude that maximum of software companies have their base in metropolitan cities. This may be because

there is more demand of software in metropolitan cities because of large number of educational institutes,

industries, government offices and computer literates. Moreover software industry needs large number of

computer experts who are easily available in metropolitan cites. Basic infrastructure like good bandwidth and

uninterrupted access to Internet needed for software companies doing e-commerce is available in

metropolitan cities only.

The pooled data in Table 1 shows that a majority of respondent companies (48%) were limited

companies, followed by sole proprietorship (40.7%) and partnership (11.3%). This implies that majority of

software organizations are limited companies and sole proprietorship, perhaps to avoid unwanted crisis and

other problems created due to partnership.

The Table further reveals that 48 per cent units employed more than hundred persons. There were 30 per

cent companies that employed 40 to 100 persons followed by 22% of companies that have employed less

than 40 persons. It can be concluded that most of the software companies have strength of employees more

than 100.A single Software developing project needs intelligent and committed team of large number of

software developing experts. And many software developing projects are carried on simultaneously in a

software company so more than one hundred employees are required by a typical software company.

per cent of companies with an investment between Rs 50 lakhs to one crore. While there were 20.7 per cent

companies having investment of Rs.30 lakhs to 50 lakhs. It can be concluded that a total investment of more

than Rs. one crore is there in software companies as software company needs large part of fixed capital for

hardware and software of computers and accommodation.

Qualitative Indicators

(i) Techno-Economic Details of Product/ Company on Website

It is evident from the Table 1 that majority of companies (78.7%) have online display of product information,

while 21.3 per cent of companies did not have online display of product information. It was noticed during

the collection of data that because the softwares are prepared on the basis of customer’s requirements the

details of the products cannot be shown in detail.

A significant majority of respondents (82.7%) had not displayed the price information of the products on

their websites, whereas, only 17.3 per cent of the respondents had displayed the price information on the

The further analysis of data shows that companies who provide customized softwares don’t display

their price information on the website. Moreover cutthroat competition among the software companies also

resists them to provide price information over the Internet.

About all the software companies (95.3%) had their company profile on their websites (Table 1), while

per cent companies were found which did not display their profile on website. Almost all the companies

show their profiles on the website. This may be because they want to tell about themselves more to the users.

The Table 1 indicates that 59.3 per cent of companies had not displayed their dealer/wholesaler directory

on website and 40.7 per cent had display their dealer/wholesaler directory on website. It was observed during

the time of data collection that the companies which did not display a dealer/wholesaler directory on website,

A perusal of Table 1 indicates that nearly three fifth (62%) of the companies did not have their websites

linked to industry trade associations. The remaining two fifth (38%) companies had their websites linked to

industry trade associations. This may be because they do not want to make their website a complex one.

Moreover they might not have given much attention towards these types of links.

It is obvious from the Table 1 that a significant majority (88%) of companies did not have their websites

linked to other data sources, while only 12 per cent of companies had their websites linked to other data

sources. One of the reasons may be that they do not want to make their website a complex one. Moreover

they might not have given much attention towards these types of links.

Conclusively, a typical software company doing e-commerce has online display of product information,

company profile and no online display of price information, a dealer/wholesaler directory and its website is

not linked to industry trade associations and other data sources.

(ii) Logistics of e-Commerce

The revelation of study pointed out that more than three fifth (68%) of companies did not have online

ordering (but traditional means of payment) system, while rest of them (32%) had online ordering (but

traditional means of payment). It is depicted from this study that majority of software companies are not

doing online ordering (but traditional means of payment). The reasons behind this may be fear of fake

customers, doubt on security of transactions over the net and lack of knowledge of cyber laws, as also seen in

It is clear from the Table 1 that a significant majority of software companies (95.3%) did not have online

ordering and payment system, while only 4.7 per cent companies had online ordering and payment system

employed by them. This predicts that there is some difficulty in employing online ordering and payment

system in India. This problem may be fear of cyber stealers, doubt on security of transactions over the net

and lack of knowledge of cyber laws, as also seen in the Table 1.

Majority of companies (90%) had reported that they were not doing online software (product) delivery

and 10% were into online software delivery. One of the reasons why the companies are not doing online

software (product) delivery is fear of cyber stealers and fake customers. Moreover skilled employees are

needed to do this as it involves good technical knowledge.

It is apparent from the Table 1 that most (92%) of the companies did not provide online training of

software. Only 8 per cent of the software companies provided the facilities of online training. One of the

67reasons why the companies are not doing online software (product) delivery is that skilled employees are

needed to do this as it involves good technical knowledge. Customers also need to be very intelligent and

must be having good computer skills to learn working on software online.

Table 1 reveals that 61.3 per cent of the software companies were not having online communities on their

websites, whereas 38.7 per cent were having online communities on their sites. Thus a typical software

company is not having online communities on its website. This may be because they do not want to make

their website a complex one. Moreover they might not have given much attention towards these types of

communities.

Conclusively, in logistics, a typical software company did not have online ordering (but traditional means

of payment) system, online ordering and payment system, online software (product) delivery, online training

of software (product) and online communities on the website.

(iii) Customer Care

The present analysis is related to the interactive websites of software companies. Out of 150 companies, three

fourth of the companies (74.7%) were not having interactive websites, while only about one fourth

companies (25.3%) were having interactive websites. Interactive website is one which has different

WebPages and products based on the profile of customers. As soon as the customer feeds his/ her personal

details, a new webpage according to the preferences filled must open. This helps the customer quickly find

information that he/ she needs and this satisfies customer. But it is observed in this study that the WebPages

of a typical software company is not customized and hence not an interactive one.

The Table 1 indicates that majority of the companies websites (84.7%) did not have a password protected

area provided for customers, while only 15.3 per cent websites had a password protected area. A password

protected area kept for customers helps them to maintain privacy of their personal details. But it is evident

from this study that much attention is not being given to the privacy of customer data. It is not good for

company also because customer may fill fake information because of lack of a password protected area and

this information may not be used for further research and analysis.

The present analysis is about the availability of the website on the Internet all the time. The revelation of

study pointed out that three fourth (75.3%) of companies were not available online all the time, while rest of

them (24.7%) had online presence of their website all the time. An online customer expect availability of the

website all the time when he/ she wants to get the information. If for any reason the website is unavailable

their trust cannot develop towards the company and their previous loyalty (if any) towards that website

decreases. It is found that a typical software company is not available all the time. It was realized during data

collection that one of the reasons of unavailability of website is the lack of proper Internet infrastructure.

Lack of proper infrastructure was found to be a serious problem that is evident from Table 1.

It is clear from the Table 1 that a significant majority of software companies (81.3%) had websites in

which searching facility was not there for convenience, while 18.7 per cent companies had cared for

convenience of customers. Today customers are time starved and they want to get their needs and want to be

fulfilled easily without any delay. They want to get everything conveniently. But it is seen that convenience

of customers is not much cared by the software companies. This shows careless attitude of the companies

towards customers.

More than three fourth majorities of companies (79.3%) had reported that they were not having any

provision for customer feedback, while only 20.7 per cent companies had provision for customer feedback.

Customer feedback has always been an easy way to improve the things at sellers end, but it is observed from

this study that a typical software company does not have any provision for customer feedback. This implies

that software companies have not utilized this easy way of improvement.

It is apparent from the Table 1 that almost three fourth (74.7%) of the companies had overprovision and

25.3 per cent of the software companies did not have overprovision. It is seen that a typical software

company has overprovision, which implies that more customers that routine can also be served well during

peak seasons and unexpected increase in demand.

per cent were not having timely supply of products for different reasons. It is clear from above that a typical

software company cares for timely supply of the products. Timely supply of products is must to keep

customers happy in these days of competition. It is one of the best ways to get a favorable word of mouth

68The study has shown that a majority of respondents (83.3%) provide required quality products. It is

necessary to mention here that they were applying software quality measurement tools to judge the quality of

the software. The rest of them were not proving required quality of products (16.7%).

It is clear from the Table 1 that majority of the respondents (86%) were doing after sales services, while

14 per cent of the respondents were found to be not providing after sales services. Hence, majority of

software companies care for after sale services. After sale service is one of the major factor that determines

from where to buy and from where not to buy. Better the after sale services, better is the word of mouth.

A perusal of the accessibility of website indicates that half of respondents (50.7%) belonged to the group

having their websites easily accessible every time at every place of the world, while 49.3 per cent belonged to

the group having website not easily accessible. More than half software companies were found to be having

easily accessible websites. Easy accessible website attracts customers to surf through the website again and

again. It makes a favorable attitude of customers towards the company and develop a type of faith that

website will easily open and would not take much time.

Conclusively, in customer care a typical software company does not have an interactive, easily accessible

and convenient website, a password protected area and online availability all the time. It has overprovision,

required quality products and after sale service. It also cares for timely supply and customer feedback.

(iv) Technical Features of Website

The pooled data in Table 1 shows that a majority of respondent companies (61.3%) were having static web

pages, while (38.7%) of companies had dynamic web pages.

The web’s origin lies in linked static content, and it is clear from this study that software company’s sites

today remain static. It implies that company must manually edit its WebPages in order to change what its

Web server sends to a browser. In a static model, a browser uses the Hyper Transport Protocol (HTTP) to

request an HTML file from a Web server. The server receives the request and sends the request and sends an

HTML page to browser, which formats and displays the page. Although this model provides ready access to

nicely formatted pages of information for employees and potential customers, it provides only limited

interaction between the user and the Web server and the static pages must be manually edited to update their

content. Gateway Interfaces such as Common Gateway Interface (CGI), Internet Server Application

Programming Interface (ISAP), and others can be used to add dynamic content to the web. With these

interfaces, a browser can send an HTTP request for an executable application rather than for a static HTML

file. The server runs the specified application. The application can read information associated with the

request to determine what values were passed with the request, such as those values that a user submits by

filling out an HTML form. The application then parses the values for meaningful information and generates

output in HTML to send to the browser.

The pooled data in Table shows that a majority of respondent companies (89.3%) had automation of

back-end processes, while only 10.7 per cent companies did not have automation at back end. Further

analysis shows that software companies are making advantage of automated back-end processes to cut costs

and improve efficiencies.

The present analysis is related to the measurement of price/performance ratio before selecting hardware

and software for e-business by software companies. Out of 150 companies, more than half of the companies

(54%) were not having provision for measurement of price/performance ratio, while only less than half

companies (46%) were having such provision. Cut in costs is the demand of today’s dynamic and

competitive era. This can be done while buying hardware of software for e-business. It is clear from above

that more than half of the companies were not having provision for measurement of price/performance ratio.

Therefore there is a need of stress that should be given in calculating price/ performance ratio of the system

before buying it.

The status of different software companies have been presented in Table 1 from which it is evident that

aesthetics was not used in 81.3 per cent of the websites and 18.7 per cent of the companies have used

aesthetics in designing their websites. It is clear from above that much importance is not given to the

aesthetics while making a website, whereas aesthetics if used can attract and help in retaining the customers.

The Table further reveals that 54 per cent companies had fast access websites. There were 46 per cent

companies that were not having fast access websites. The traffic on the Internet and websites is increasing

and also the bulk of information is increasing. In this type of environment the more powerful the server is,

more fast is the website and thus more satisfied the customer is.

IADIS Internacional Conference e-Commerce 2004

69A typical software company has static web pages, fast access website and automation at backend, while it

does not have provision to calculate price performance ratio before selecting hardware or software. It does

not use aesthetics in designing its website.

CONCLUSION

In this research it was found that a typical Indian software company has its base in a metropolis, strength of

employees more than hundred, capital investment more than one crore and is limited company. It has online

display of product information, company profile and no online display of price information, a

dealer/wholesaler directory and its website is not linked to industry trade associations and other data sources.

In logistics, a typical Indian software company did not have online ordering (but traditional means of

payment) system, online ordering and payment system, online software (product) delivery, online training of

software (product) and online communities on the website. In customer care it does not have an interactive,

easily accessible and convenient website, a password protected area and online availability all the time. It has

overprovision, required quality products and after sale service. It also cares for timely supply and customer

feedback. In technical features a typical Indian software company has static web pages, fast access website

and automation at backend, while it does not have provision to calculate price performance ratio before

selecting hardware or software. It does not use aesthetics in designing its website.