E-Business Chapter 1

Study Notes

E-business involves the use of digital technology to improve organizational performance, including digital business transformation, digital marketing, and e-commerce.
Digital business transformation refers to significant changes to organizational processes, structures, and systems to improve performance through the increased use of digital media and technology platforms.

Two key opportunities of digital transformation are:
- Inbound marketing
- Mobile marketing

E-commerce offers personalized products/services, enables customer self-service, reduces lead time, reduces overall cost for seller and customers, improves utilization of resources throughout the supply chain, increases customer satisfaction and loyalty, and expands to a global marketplace.

Digital marketing, also known as e-marketing or Internet marketing, describes the management and execution of marketing using electronic media such as the web, email, IP TV, and mobile media in conjunction with digital data about customers’ characteristics and behavior.

Three options to reach an audience online are:
- Paid media
- Earned media
- Owned media

Paid media involves buying media to pay for visitors, reach, or conversions through search, display advertising networks, or affiliate marketing.
Pros of paid media include instant results, ease of tracking, full control over message and copy, and easy targeting of high-intent customers.
Cons of paid media include expense and increased cost as competition increases.

Earned media involves generating publicity through PR invested in targeting influencers to increase awareness about a brand.
Earned media includes word-of-mouth, viral, and social media marketing, and conversations in social networks, blogs, and other communities.
Pros of earned media include increased credibility and trust, heightened brand awareness, and expanded reach.
Cons of earned media include unpredictability and the need for time and effort to encourage.

Owned media refers to media owned by the brand, including a company's own websites, blogs, email lists, mobile apps, or social presence on Facebook, LinkedIn, or Twitter.