E-Commerce Final

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22 Terms

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Digital Business vs E-commerce :

Digital business refers to the broader transformation of all business processes using digital technology, including operations, customer service, product development, and internal workflows. E-commerce is a subset of digital business, focused specifically on digitally enabled commercial transactions—buying and selling goods/services online.

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Inbound Marketing :

A strategy where customers voluntarily engage with a brand through valuable content, SEO, and digital touchpoints, instead of being interrupted by outbound advertising.

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Zero Moment of Truth (ZMOT) :

The stage where customers research online—through search, reviews, and social media—before deciding to buy.

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Types of Websites :

transactional sites (enable purchases and online sales), brand-building sites (provide information that communicates values and enhances brand image), and content/entertainment sites (engage visitors through media, games, tools, or interactive features).

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Paid vs Earned vs Owned Media :

Paid = bought exposure; Earned = third-party mentions; Owned = channels controlled by the company such as websites and social media profiles.

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7Ds of Digital Marketing :

digital devices (phones, computers), digital platforms (search engines, social media), digital media (paid/earned/owned channels), digital data (customer insights), digital technology (automation, AI, martech), digital audiences (target segments), and digital experiences (website/app interactions).

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5S Goals :

Sell (increase sales), Serve (add value), Speak (engage customers), Save (reduce costs), and Sizzle (enhance brand experience).

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Macro-environment Factors :

Political (regulation, tax), Economic (inflation, growth), Social (culture, demographics), Technological (innovation, martech), Legal (privacy, data protection), and Environmental (sustainability, climate considerations).

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Micro-environment Factors :

customers (needs, journeys), competitors (online positioning and tactics), intermediaries (search engines, marketplaces, affiliates), suppliers (technology or logistics partners), and internal company capabilities (skills, data, technology).

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Demographic vs Sociographic Segmentation :

Demographic = age, gender, social class; Sociographic (psychographic) = beliefs, attitudes, motivations, and lifestyle.

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Porter’s Competitive Forces :

threat of new entrants (lower online barriers), bargaining power of buyers (high price transparency online), bargaining power of suppliers (platform dependence), threat of substitutes (digital alternatives), and industry rivalry (amplified by comparison tools)

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CPC :

Cost-per-click — the cost paid by advertisers each time a user clicks an ad.

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CPA :

Cost-per-acquisition — the cost required to acquire a new customer or desired action.

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Brand Identity in CRM :

The set of brand associations (symbols, values, personality) communicated across digital touchpoints to build trust and loyalty.

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Leads :

Potential customers who express interest through actions such as subscribing, registering, or requesting information.

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Website Prototyping :

Creating wireframes or mockups to test navigation, structure, and usability before full development.

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Website Accessibility :

Accessible websites follow W3C accessibility guidelines so users with disabilities (visual, auditory, cognitive) can navigate and understand content. This includes alternative text, proper structure, readable contrast, keyboard navigation, and screen-reader support

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Digital vs Traditional Media :

Digital media enables real-time interaction, precise targeting, measurable performance data, and personalized communication. Traditional media (TV, print, radio) delivers one-way messages with broader, less targeted reach and limited measurement. Digital’s interactivity shifts communication from “push” to “pull.”

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Conversion vs Brand-Building Goals :

Conversion goals measure actions (purchase, sign-up); brand-building goals focus on awareness, reach, and favorability.

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Digital Media Budgeting :

Budgeting relies on channel mix selection, forecasting performance, and balancing paid, earned, and owned media.

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Attrition Rate :

Attrition rate measures the percentage of visitors who drop off at each stage of a buying or conversion process. High attrition signals usability issues, weak value propositions, or friction in checkout or form flows

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Pages per Visit & Visits per Visitor :

PPV = number of pages viewed per session (engagement); VPV = how often users return, indicating loyalty.