Internet and e-business

Question 1: Answer

The internet has provided new ways on promoting, positioning and marketing each business. Such process lies in the context of e-business. E-business is the generic term given to the process of conducting business electronically. In particular, it is the use of computers and internet to facilitate communication between buyers and sellers; to reduce business overheads and to increase operational efficiency (Eckersley, Harris & Jackson 2003). In E-business there are different models used by different companies. These include tendering via reverse auctions, affiliate marketing and group purchase.

A reverse auction is an electronic auction in which suppliers bid online against each other for contracts in line with a published specification and pre-established criteria. Reverse auctions are used by different organisations both private and public to secure better contract for prices and terms in line with the goods and services they buy. Tendering using the model of reverse auctions enables the participating companies to set up scheduled events in which companies can bid against each other to win the business. This model can give the participating team’s significant savings on price as compared to previous contracts. This process is done through online and virtual process.

The next model is affiliate marketing. This model is known to be one of the hottest trends in electronic business. Such model is more commonly known as revenue sharing, pay-per-lead programs and pay-per-sale process. Companies that use this model include those who belong in recruitment services, small business sells and other large organisations online who want to be competitive online. In this model, the affiliates earn commission by adding content. These programs are well designed to make the website of other company work with its affiliates. The main purpose of the affiliate marketing is to put advertising banners or text links of the agreed organisation on their website. Through this, people who visit such site will see the links or banners of the affiliate company.

The last model is the group purchasing. Group purchasing is a process in which industries of different fields are group together to achieve cost savings by integrating their purchasing power to negotiate rates and prices lower than each could other wise get in individual purchasing. Industries involved in this model are health organisations, insurance companies, chemical industries and other. Through group purchasing, the company may be able to determine who among the suppliers will provide lower and affordable cost with quality products or services.

To summarize it all, the emergence of the Internet and e-business has undoubtedly changed the business environment in which the music industries around the world operate. It has been stated that the Internet has altered industry structure by reducing the costs of coordination in the value chain. The Internet has become a source of competitive benefit by bestowing companies with new ways to outperform their competitors, and spawned new businesses by providing more information. Moreover, the Internet is also evolving to encourage direct interaction between producers and consumers in markets where consumers have more complete information about goods and services, enabling them to exert substantial control.

Question 2: Answer

Perhaps, the rapid growth of technological advancement in the society has brought people so much ease in all the things they do. Part of this technological advancement is the emergence of the Information Technology. Information Technology is often regarded as the unquestioned cornerstone towards competitiveness in the 21st century. These technological advancements have brought people especially those in the business world to utilise a strategy that would be helpful in enhancing the business value of any organisation (Ramsdell, 2000). The intricacies of achieving business achievement through increased efficiency, effectiveness and competitiveness, combined with innovative applications of IT, has heightened the awareness of both IT and business managers towards more strategically oriented approaches for planning and management (Luftman et al 1993).

Hence, the digital technology can be used in this restaurant thru different models. In this age of technological advancement the company may choose from different IT models which can be applied to the business. The digital technology can be applied first by considering management of change or innovation. In this case, the appropriate technology that can be used is the Integrated Marketing Communication thru the use of internet. An integrated marketing communications (IMC) program reflects a consistent style and approach to everything a particular company do. IMC has come to symbolize the new focus of marketing discipline on integrating the communications functions to communicate to all of an organization’s stakeholders and not just its customers (Wightman, 1999). Basically, this paper aims to examine the reasons for the increasing importance of the IMC perspective in planning and executing advertising and promotional programs.

In addition Integrated Marketing Communications (IMC) is a marketing plan which advances the goal of establishing and strengthening the mutual relationship of the company to its customers by providing a way to make contact with customers through advertisements (Smith & Taylor 1998).

In this innovation, the critical area that must be given attention is the advertising and promotional campaign of the said restaurant. Generally, advertising or promotional campaigns are regarded as an open sponsorship of offering products, services and any ideas through the use of any mediums of communication. In this regard, there are different kinds of media which are use for advertising and promotional campaign purposes. Basically, in this new IMC theme, the focus will be heavily on advertising and sales promotion thru the internet.

For these purposes, the restaurant will be applying the IMC process in addressing communications and promotion of products as part of an overall marketing mix. In doing so, the following communication channels will be employed:

• Broadcast, print, support and interactive media

One of the IMC tools which are commonly used by different industries in order to promote their product is the use of broadcast, print, support and interactive media. These tools include TV advertisement, radio, magazines, newspapers, pamphlets, posters, bulleting boards and other interactive media. In line with the products of the restaurant, the company may use these IMC tool in order to reach different people anytime and anywhere. The advantage of using such tool is it may be much cheaper than other IMC tools. In addition, since most of the people have their own television and some target market has radio, the company will be sure that their promotional campaign will reach many consumers. In addition, the use of print ads and interactive media is also useful to reach individuals, specifically that target market that have no time watching or listening. However, the disadvantage of using this technique can be attributed to the growth of internet and other modern technology. Because of this people nowadays devotes their times in these new technology that they forget to use the TV or radio and or prefer not to buy magazines and other print ads.

• The Internet

The internet has been a valuable source of information in creating the market approach. It has provided data on marketing mix and IMC and strategies employed by other companies. Moreover, the internet is also a very good avenue for advertising because many individuals surf the web and many transactions are done through the web. In addition customers can also subscribe to the restaurants products and service offerings through its web site.

In order for the restaurant to become successful the business operations must be aligned with the strategies of the digital technology. Hence, through the internet and other digital medium the company may be able to communicate well with their customers to achieve its organisational goal and competitive advantage.

Reference

Eckersley, PM, Harris, L, & Jackson, PJ 2003, E-Business Fundamentals. Routledge.

Luftman, J.N.; Lewis, P.R; Oldach, S.H. 1993. Transforming the Enterprise: The Alignment of Business and Information Technology Strategies. IBM Systems Journal 32(1): 198-221.

Ramsdell, J. 2000. A Foundation for a Semantic Web. Source unknown.

Smith, PR, and Taylor, J 1998. Marketing Communications – An Integrated Approach. (4^th Edition) London: Kogan Page.

Wightman, Ben 1999. Integrated Communications: Organization and education. Public Relations Quarterly, Vol. 44, Issue 2, pp. 18-22.