E-Commerce

and Internet
Marketing

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 Saint Anthony’s College
Santa Cruz, Santa Ana, Cagayan 3514 | FAS School System

LEARNING MODULE 1
======================================================================
SUBJECT: E-Commerce and Internet Marketing (MM elec 2)
LEVEL/QUARTER: First Semester/PRELIM
TOPIC: Introduction to E-Commerce and Internet Marketing
SCHOOL YEAR: 2021-2022
INSTRUCTOR: EDDIE U. AGBAYANI JR.

INTRODUCTION

Have you ever tried to shop Online? Or are you an entrepreneur who uses
technology to sell your products? Have you given a taught about Online Marketing? What
do you think are the best strategies, ideas in making a business online?

Technology has helped build a platform that has enabled the businesses to cash
in on the huge population and market that is now accessible over the internet and sell to
them. Take the case of Online Banking, Mobile Banking, Debit| Credit Cards, ATMs as
well as online trading and other business transactions, all these have grown and
happened as a result of technological advancement in terms of communication, software
as well as hardware technologies. From the time that one connected to Internet using a
desktop, model and a telephone line to the Wi-Fi technology of today, we have graduated
very fast making it possible to buy and sell at the click of a button. At another level the
Business Processes as well as ERP coupled with various software and applications
besides EDI, have enabled businesses to go ‘On Line’ with their business models.

Today no business, be it Business to Business or Business to Consumer, can

ignore the huge ‘Online Market’ that exists on the internet. E Commerce was inevitable.
Physical markets have literally been replaced with ‘Virtual Markets’. E Commerce has had
far reaching impact on business organizations for it has redefined ‘Market’. E Commerce
has made it possible for sellers to reach out to planet wide markets and consumers, thus
changing the way business is conducted. For every prospective Management
Professional, the in depth understanding of ‘Online Marketing’ and ‘E Commerce’ have
become very important. Marketing managers have got to go back to the class rooms to
learn the new rules of game in handling Online Marketing which is drastically and totally
different from the traditional marketing, selling, distribution and advertising strategies.
Understanding all about Internet, E Commerce mechanisms, technologies, learning how
to market online, understanding E Customer and learning to identify, build and nurture a
relationship with the E Customer become the building blocks of one’s new learning.
LEARNING OUTCOMES:
At the end of this topic, you are expected to:

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 • Describe the key features of the technological infrastructure in order to fulfil
marketing functions.
• Define and explain the role of e-commerce technologies, and how security, trust
and payment issues impact the use of the said technologies.
• Relate the e-commerce models and approaches to neos confronted with
challenges of the traditional and digital environment.
• Cultivate appropriate values of internet marketing ethics and social responsibility
among students.
• Develop your ability to strategize using key e-commerce models and insights.
• Prepare an e-marketing plan that will enable you in combining offline and online
marketing activities.

SPECIFIC OBJECTIVE:
This module aims you to:

Be able to manifest the values of an entrepreneur with an ethical and business

minded personality as well as to be responsible to any e-commerce transaction whether
offline or online.

ACTIVATING PRIOR KNOWLEDGE:

Try to answer the questions below (in your own understanding):

1. Have you ever tried to shop Online? Or are you an entrepreneur who uses
technology to sell your products?
2. Have you given a taught about Online Marketing?
3. What do you think are the best strategies, ideas in making a business online?

WEEK 1: TOPIC 1 - Introduction to E-Commerce & Internet Marketing

Objective: In this activity, you are expected to give your understanding and ideas of
Traditional Commerce and E-Commerce.

DISCUSSION AND SUMMARY:

In today’s Generation E-Commerce have
shape the economy in different ways. E-
commerce or Electronic commerce is a process
of buying, selling, transferring, or exchanging
products, services, and information via
electronic networks and computers. In this
module you will understand deeply not just what
but the ethical use and your responsibility as an
entrepreneur, buyers, sellers, producer and
consumer.

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 Electronic commerce, commonly known
as E- Commerce or e-commerce, is trading in
products or services conducted via computer
networks such as the Internet. Electronic
commerce draws on technologies such as
mobile commerce, electronic funds transfer,
supply chain management, Internet marketing,
online transaction processing, electronic data
interchange (EDI), inventory management
systems, and automated data collection
systems. Modern electronic commerce typically
uses the World Wide Web at least at one point
in the transaction's life-cycle, although it may
encompass a wider range of technologies such
as e-mail, mobile devices, social media, and
telephones as well.
Electronic commerce is generally
considered to be the sales aspect of e-
business. It also consists of the exchange of
data to facilitate the financing and payment
aspects of business transactions. This is an
effective and efficient way of communicating within an organization and one of the most
effective and useful ways of conducting business. It is a Market entry strategy where the
company may or may not have a physical presence.

YOU’RE TIME TO SHINE. Give what is asked.

1. In your own understanding, what is all about “TRADITIONAL COMMERCE” and
“E-COMMERCE”? Give 5 answers each using the table below using a word only.

TRADITIONAL COMMERCE E-COMMERCE

1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
2. Make a simple discussion based on the words you have come up under
“TRADITIONAL COMMERCE.

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 3. Make a simple discussion based on the words you have come up under “E-
COMMERCE.
4. Technology has a big impact on business operations. Give 5 ways on how
technology give benefits to business operations.

WEEK 2: TOPIC 2 - History/Timeline of E-Commerce

Objective: In this activity, you are expected to give your understanding in the Timeline of
E-Commerce.
DISCUSSION AND SUMMARY:
The transition between traditional Commerce to Electronic Commerce have greatly
shape our way of life. On how do we transact with others in the use of mail to E-Mail, The
use of paper bill to cashless transaction, and from going to mall or supermarket into
making yourself online to shop and transact. You see this transition tell us how does
Commerce evolved in such way that give us the structure of our business today.
Electronic Data Interchange (EDI) make the business easier with the use of
technology you won’t need to go in person just to give the document to other person.
Electronic Fund Transfer (EFT) become our way to send money online with just a click
you can now transact to other end may it be the form of Buying, Selling, as a Consumer
and as a Producer. Just imagine what will be the future of Commerce.

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YOU’RE TIME TO SHINE. Give what is asked.
1. Why do you think there is need for electronic transfer?
2. What is the challenges and disadvantage of E-Commerce?

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 3. What do you think will be the E-Commerce in the future now that Internet Marketing
improves in this pandemic?
4. What transition take effect in the transition above?
5. Give 5 Examples of common electronic funds transfer (EFT) transactions.
6. Give 5 advantages of EDI in a business.

WEEK 3: TOPIC 3 - E-Commerce Types

Objective: In this activity, you are expected to give your understanding in the E-
Commerce Types

DISCUSSION AND SUMMARY:

E-Commerce can be classified into four main categories. The basis for this simple
classification is the parties that are involved in the transactions. So the four basic E-
Commerce models are (Business to Business, Business to Consumer, Consumer to
Business, and Consumer to Consumer). These services provided online over the internet
network. Transaction of money, funds, and data are also considered as E-Commerce.
These business transactions can be done by the E-Commerce types. The standard
definition of E-Commerce is a commercial transaction which is happed over the internet.
Business-to-Business (B2B
A B2B model of business involves the conduct of trade between two or more
businesses/companies. The channels of such trade generally include conventional
wholesalers and producers who are dealing with retailers.
Business-to-Consumer (B2C)
Business-to-Consumer model of business deals with the retail aspects of e-
commerce, i.e. the sale of goods and/or services to the end consumer through digital
means. The facility, which has taken the business world by storm, enables the consumer
to have a detailed look at their proposed procurements before placing an order. After the
placement of such orders, the company/agent receiving the order will then deliver the
same to the consumer in a convenient time-span. Some of the businesses operating in
this channel include well-known players like Amazon, Flipkart, etc.
This mode of purchase has proved to be beneficial to the consumers when
compared to the traditional method, as they are endowed with access to helpful contents
which may guide their purchases appropriately.
Consumer-to-Business (C2B)
A C2B model is the exact reversal of a B2C model. While the latter is serviced to
the consumer by a business, the C2B model provides the end consumers with an
opportunity to sell their products/services to companies. The method is popular in

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crowdsourcing based projects, the nature of which typically includes logo designing, sale
of royalty-free photographs/media/design elements, and so on and so forth.

Consumer-to-Consumer (C2C)
This business model is leveraged by a consumer for selling used goods and/or services
to other consumers through the digital medium. The transactions here are pursued
through a platform provided by a third party, the likes of which include OLX, Quickr, etc.

YOU’RE TIME TO SHINE. Identify what type of e-commerce is being illustrated in

each diagram below then explain why.

1.

2.

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 3.

4.

WEEK 4: TOPIC 4 - Advantage and Disadvantage of E-Commerce and its Process

Objective: In this activity, you are expected to give your understanding in the different
advantages and disadvantages of E-Commerce and how does it operate
SUMMARY AND DISCUSSION:
E-Commerce is based on Client-Server Architecture.

A client can be an application , which uses
a Graphical User Interface (GUI) that
sends request to a server for certain
services.
E-Commerce
A client refers to a customer who
requests for certain services.
The server is the provider of the services
requested by the client.
The server refers to the business
application through which the services are
provided.

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Intranet
Intranet is a computer network system in which a specific organizational systems share
information, computing services and operational systems with each other by using an
Internet (IP) technology.
Internet
Internet is a clustered system of interrelated computer networks that uses a standard
Internet protocol (IP) or transmission control protocol (TCP) network.
Extranet
Extranet is a kind of computer network that allows the outside users to access the Intranet
of organization.

YOU’RE TIME TO SHINE. Give what is asked.

1. Base on the picture above, can you explain the process of Internet Marketing / E-
Commerce?
2. What are the businesses that uses E-Commerce in the Philippines?
3. What do you think are the Strength and opportunities of E-Commerce?
4. What do you think are the issues/limitations of E-Commerce?
5. Using the table below, give 5 ways on how e-commerce can be advantageous to
us and another 5 that makes disadvantageous.
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 ADVANTAGE DISADVANTAGE
1 1
2 2
3 3
4 4
5 5

WEEK 5: TOPIC 5 - M A R K E T I N G in E-Commerce

Objective: In this activity, you are expected to give your understanding In MARKETING.

SUMMARY AND DISCUSION:

Marketing
-is profitably using the results of studying short term and long term needs of those who
can pay for a onetime, or in most cases, a steady flow of service or product placement.
Marketing Concepts
• Production Concept ex. Automobiles
-Concentrate on achieving high production efficiency, low costs, and mass
distribution.
-Consumers prefer products that are widely available and inexpensive.
-Emphasis on low production costs, high production efficiency and mass
production.

• Product Concept ex. Electronic and mobiles

-Consumers will favour products that offer the most in quality, performance and
innovative features.

• Selling Concept
-Management focuses on creating sales transactions.
-Aim is to sell what the company makes rather than making what the market wants.
-Selling concept is practiced with unsought goods (Unsought goods are that buyers
do not normally think of buying, such as insurance or blood donations)

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• Marketing Concept
-Marketing concept works on facts gathered by its market and customer first
approach.
-Undertakes activities such as market research.

ONLINE MARKETING

OFFLINE MARKETING

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YOU’RE TIME TO SHINE. Give what is asked.
1. Base on the figures above what can you say about Traditional and Online
Marketing?
2. Does Offline Marketing still exists in this Technology age?
3. What do you think is the easiest way of promoting your product/item?
4. What will be the challenges in Online Marketing?
5. Give 5 advantage and disadvantages of Traditional Marketing and Online
Marketing using the table below.
Traditional Marketing Online Marketing
1 1
2 2
3 3
4 4
5 5

WEEK 6: TOPIC 6 - Micro and Macro Environment

Objective: In this activity, you are expected to give your understanding in the Micro and
Macro Environment.

SUMMARY AND DISCUSSION:

Micro-environment elements are close to the firm and incorporate the suppliers,
showcasing delegates, consumer markets, public, competition and marketing
intermediaries-inward environment.
The Macro Environment is the uncontrollable factor of the company affecting the
entire industry of the region or country.
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 MICRO MACRO
Competitors Population & Demographic
Organization Economic
Suppliers Socio-Cultural
Market Technological
Intermediaries Legal & Political
Customers Environmental

YOU’RE TIME TO SHINE. Give what is asked.

1. What is /are your insights on micro and macro environment?
2. How can you say that the business is in Micro Environment and Macro
Environment?
3. Create a Venn diagram showing the similarities and differences of micro and
macro environment.

SUMMARY:
Electronic commerce or e-commerce (sometimes written as e-Commerce) is a business
model that lets firms and individuals buy and sell things over the internet. E-commerce
operates in all four of the following major market segments:
• Business to business
• Business to consumer
• Consumer to consumer
• Consumer to business
KEY TAKEAWAYS

• E-commerce is the buying and selling of goods and services over the internet.
• E-commerce can be a substitute for brick-and-mortar stores, though some
businesses choose to maintain both.
• Almost anything can be purchased through e-commerce today.

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  E-commerce lets firms and individuals conduct business over the Internet.

E-commerce, which can be conducted over computers, tablets, or smartphones may

be thought of like a digital version of mail-order catalog shopping. Nearly every imaginable
product and service is available through e-commerce transactions, including books,
music, plane tickets, and financial services such as stock investing and online banking.
As such, it is considered a very disruptive technology.
Understanding Electronic Commerce (e-commerce)
E-commerce has helped businesses establish a wider market presence by
providing cheaper and more efficient distribution channels for their products or services.
For example, the mass retailer Target has supplemented its brick-and-mortar presence
with an online store that lets customers purchase everything from clothes to
coffeemakers to toothpaste to action figures.

By contrast, Amazon launched its business with an e-commerce-based model of

online sales and product delivery. Not to be outdone, individual sellers have increasingly
engaged in e-commerce transactions via their own personal websites. Finally, digital

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marketplaces such as eBay or Etsy serve as exchanges where multitudes of buyers and
sellers come together to conduct business.

The Advantages and Disadvantages of Electronic Commerce

E-commerce offers consumers the following advantages:

• Convenience. E-commerce can occur 24 hours a day, seven days a week.

• Increased selection. Many stores offer a wider array of products online than they
carry in their brick-and-mortar counterparts. And many stores that solely exist
online may offer consumers exclusive inventory that is unavailable elsewhere.

E-commerce carries the following disadvantages:

• Limited customer service. If you are shopping online for a computer, you cannot
simply ask an employee to demonstrate a particular model's features in person.
And although some websites let you chat online with a staff member, this is not a
typical practice.
• Lack of instant gratification. When you buy an item online, you must wait for it to
be shipped to your home or office. However, retailers like Amazon make the
waiting game a little bit less painful by offering same-day delivery as a premium
option for select products.
• Inability to touch products. Online images do not necessarily convey the whole
story about an item, and so e-commerce purchases can be unsatisfying when the
products received do not match consumer expectations. Case in point: an item of
clothing may be made from shoddier fabric than its online image indicates.

REFERENCES:
• https://www.investopedia.com/terms/m/marketing.asp
Alexandra Twin
• https://www.grin.com/document/280494
Saimunur Rahman
• https://www.geeksforgeeks.org/difference-between-traditional-commerce-and-e-
commerce/
Satyabrata_Jena

Reach me through my facebook account @ Eddie Agbayani Jr. or gmail account :

eddieagbayani220@gmail.com for queries and clarification.

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