Page 296 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 14: Information Technology in International Business

Notes
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Caution Despite the differences in e-procurement applications, the bottom line is that a
company must choose one that works for its industry and one that will help make its
supply chain more efficient if the system implementation is to truly be successful.

14.1.2 Benefits of Electronic Procurement

Reduction in Manpower Cost
Reduction in Purchase Cycle Time

Wider Choice of Vendors
Better Prices for the Purchased Goods
Reduction in Transaction Cost
Fewer Human Errors

Better Relations with the Vendors
Better Compliance with Regulations

14.2 E-Marketing

Internet marketing, also known as web marketing, online marketing, webvertising, or e-
marketing, is referred to as the marketing 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, mobile advertising and Web 2.0 strategies.
In 2008, The New York Times, working with comScore, published an initial estimate to quantify
the user data collected by large Internet-based companies. Counting four types of interactions
with company websites in addition to the hits from advertisements served from advertising
networks, the authors found that the potential for collecting data was up to 2,500 times per user
per month.

14.2.1 Types of E-marketing

E-marketing is broadly divided into the following types:

Display Advertising: The use of web banners or banner ads placed on a third-party website
or blog to drive traffic to a company’s own website and increase product awareness.
Search Engine Marketing (SEM): A form of marketing that seeks to promote websites by
increasing their visibility in Search Engine Result Pages (SERPs) through the use of either
paid placement, contextual advertising, and paid inclusion, or through the use of free
search engine optimization techniques.

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