1.0 Executive SummaryE-commerce may be construed to refer to the process of not only buying but also selling goods and services via the internet. Mostly, the internet used in this kind of business is the World Wide Web. In this kind of business, potential buyers log onto the sellers website and shop from the catalogue maintained in the buyer’s website in something that can be said to be a virtual mall (New Age International, 1979: p5). Once the buyer decides to buy, he will do so via electronic money transfer and thus it is the responsibility of the seller to ensure that the goods or services so purchased are safely and timely delivered to the buyer.
Despite the security concerns in business transactions as far as e-business is concerned, e-business or e-commerce for that matter has continued to gain popularity by the day. Internet marketing is part of e-commerce and may be construed to simply refer to the marketing of goods and/or services over the internet. Ever since the discovery of the worldwide web, there has been a shift towards internet marketing because of a myriad of reasons.
First, the internet offers a low cost marketing option as compared to other options. Secondly, the internet is able to reach a wider audience as compared to the other offline forms of marketing. Finally, the internet is a unique medium of marketing because of the interactive nature and thus it is able to not only provide instant responses but also elicit instant responses from clients and audience in general (Hofacker, 2000: pp89-93). Furthermore, the hastily embrace of internet has been as a result of the alleged wider scope of the internet marketing.
The scope is wider because it involves both digital media such as e-mail and the wireless media. It is also important to note the fact that internet marketing also involves management of customer data which is digital and also an electronic customer relationship management (ECRM) system. In short, the internet has been able to provide most workable solutions that have been lacking in other forms of marketing for a very long time and thus the popularity of internet marketing is not coincidental.
Internet marketing is not only able to foster brand identity but also manages to enact both brand personalization and brand commitment. A number of organisations in various industries have been able to invest in internet marketing because of its viability. It is for this reason that VAWM i- Tunes seeks to venture into the internet arena to do business and market its products. The business shall be doing business of selling music online. This paper seeks to illustrate the effectiveness of e-commerce by giving a brief overview of the business, the online marketing strategy, the online business environment, the web presence and the legal and ethical environment of the business. 2.0 Overview of the BusinessVAWM i Tunes will be business that shall deal with online music.
It will sell audio music and ring tones through the internet just the same way as the apple conducts its business. All types of audio and visual music shall be available for download by the customers at a cost payable over the internet as well. All the operations of the business organization will be more oriented to the internet arena as opposed to the normal business environment.
Since the business is starting, it will be localized to Australia alone with future plans to expansion throughout the worldwide web. The main source of revenue generated will mainly come from the online sale of music. This kind of revenue model is called Fee-for-transaction revenue model. In this model the business shall offer services for which a fee shall be charged. The service entails provision of songs to the customers. The business makes it easy for the customers to download the music so that they can enjoy listening to their favorite music having paid the amount per download required. The more the number of downloads by customers, the more the revenue generated and vice versa.
Therefore, to maintain the desired amount of revenue, there is need for an aggressive online marketing so as to gain a competitive edge in the market in a bid to achieve the desired amount of revenue.