Vous êtes sur la page 1sur 13

BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY

GROUP ASSIGNMENT
CIT 744: E-COMMERCE
NAME
KASWALULA G SAIDILA

REGISTRATION NUMBER
IMC/BIT/14/7748

JOSHUA MAGIGE

IMC/BIT/14/

MARWA PHILEMON
NYAHENDE CARLOS

IMC/BIT/14/77187
IMC/BIT/14/76970

PART A:
INTRODUCTION
Tourism is one of the rapidly growing sector in many countries especially Tanzania where the
whole process of advertising and operating towards achievements is focused in wide scope and
visions, since that most of the tourist attractions in our country exists in a very local places which
need much attention to catch up on some information regarding that particular place. Therefore
we have to introduce some policies and strategies which will lead the tourism sector to a highly
development in reference to other sectors.
Following the factors and challenges facing tourism industry such as availability of tourism
marketing services and operations all over the world, therefore there has to be a superior method
or technology which will drive all the services and bring them at a place where every one will be
able to access the information and service he needs.
But, the tourism industry has shown great tolerance and it is highly growing sector which has
shown great development within these few years lately, such that it is growing stronger and
powerful of the other sectors showing some technological developments as we are capable of
looking some features of the places we need to visit, we can also see available social services as
well as putting on many attractive features that people will be interested on, like many other
business do on the internet.

CHARACTERISTICS AND FEATURES OF TOURISM MARKETING


Tourism has got dynamic features that can be accessible on the Internet. Since that tourism is an
information-intensive industry and the Internet is the most effective and efficient means in
information exchange worldwide. Internet can facilitate the promotion and distribution of tourist
products and potentially enable tourism destinations and enterprises to compete on a level
playing field.
Tourism Is an Information-Intensive Industry
Tourism is very information-intensive and information is often dubbed the "life-blood" or
"cement" of the industry which holds together the different producers and other supplies. In few
other areas of activity are the generation, gathering, processing, application and communication
of information as important for day-to-day operations as they are for the travel and
tourism industry. The perishability of tourism products and the often erratic tourist demand
make the task of balancing tourism supply and demand far more significant than any other sector.
That is probably why tourism became one of the first industries to widely apply IT and conduct
electronic commerce from the 1960s in computerized reservation systems (CRSs) and then
global distribution Systems (GDSs).

The Tourism Destination Product Is Fragmented


As a place product, tourism includes all the elements a destination has to offer to tourists,
including the social, cultural and physical environments as well the "touristic" components of
tourism supply such as attractions, transport and lodging facilities, and other travel related
services. Pollock (1999) highlights the difficulties in tourism destination marketing which are
attributable primarily to two factors. First, tourism is fragmented in that while the tourist looks at
a holiday as a complete "experience", it is sold in the market place "in bits" as beds, meals, tours,
seats, etc. by a plethora of independent suppliers that operate independently of one another.
Second, no one agency controls or can deliver content about a destination's tourism product as
the marketing of a tourism destination is shared by another plethora of organizations such as
tourist information centers, regional tourism boards, national tourism organizations and
national tourist offices overseas located in main generating markets.

Tourist Products and Services Are Difficult to Evaluate


As a service industry, most tourist products are intangible services, they are experienced and
cannot be touched, tasted, smelt or seen and therefore
difficult for tourists to grasp and evaluate. Furthermore, the spatial fixity of tourist attractions
and amenities means that a tourist cannot really assess their quality until he arrives at the
destination. Tourists have, for a long time, relied on limited information from holiday brochures
and other literature to evaluate tours and destinations. Comprehensive, relevant, timely and
accurate information is essential in tourists' holiday decision making process. But they were not
readily available to tourists until the emergence of the Internet, especially the wide use of the
Web.
Tourism Distribution Has Physically Nothing but Travel Tickets to Deliver
Since in tourism, it is the tourists who travel to the destination, rather than the tourist product be
transported to the market. When a tourist books an airline seat, a hotel room, or a package
holiday, he acquires the right to use that seat, room or holiday in the specified time period. After
the tourist completed his journey or holiday, he takes nothing home but experiences (though
often together with some photos and souvenirs). In the whole process, from the booking, through
the out journey to the return journey, the only things being transported are travel tickets and the
tourist himself. This unique characteristic offers tourism a great advantage in Internet marketing
as the only cost of online sale will be the transaction processing expense plus a little postage
cost; in contrast, for manufactured goods, the delivery cost is often substantial.
Majority of Tourism Enterprises Are Small In Size
The fragmented tourism industry is also polarized in that on the one hand, there are a few large
multinational airlines, tour operators, hotel chains and theme parks; on the other, there are
millions of small and often family owned businesses, especially in the travel retailing, tour

guiding, hotel and catering sectors. For example, in Scotland the average size of the
accommodation establishment in the Bed and Breakfast sector was 2.5 rooms in 1999. For the
small tourism enterprises, the Web is probably the first effective and feasible medium for them to
carry out professional marketing function beyond the basic sales and operating activities.
MAJOR TYPES OF E-COMMERCE SUITABLE FOR TOURISM BUSINESS
E-commerce has got several types but in regards to tourism business there some of those types
which are suitable for this kind of business. These types are as follows

Business-to-Business (B2B)
Business-to-Business (B2B) e-commerce encompasses all electronic transactions of goods or
services conducted between companies. Producers and traditional commerce wholesalers
typically operate with this type of electronic commerce.
Business-to-Consumer (B2C)

The Business-to-Consumer type of e-commerce is distinguished by the establishment of


electronic business relationships between businesses and final consumers. It corresponds to the
retail section of e-commerce, where traditional retail trade normally operates. These types of
relationships can be easier and more dynamic, but also more sporadic or discontinued.
Consumer-to-Business (C2B)

In C2B there is a complete reversal of the traditional sense of exchanging goods. This type of ecommerce is very common in crowdsourcing based projects. A large number of individuals make
their services or products available for purchase for companies seeking precisely these types of
services or products.
Business-to-Administration (B2A)

This part of e-commerce encompasses all transactions conducted online between companies and
public administration. This is an area that involves a large amount and a variety of services,
particularly in areas such as fiscal, social security, employment, legal documents and registers,
etc. These types of services have increased considerably in recent years with investments made
in e-government.

THE KEY COMPONENTS OF E-COMMERCE BUSSINESS MODEL

Customer value

This is an aspect which carries on total functioning and priority so as to meet the
customer demands, this is to say that we value our customer by providing on what
they need.

Scope

The scope is the specific plan on the requirements for the services that an ebusiness works along.

Price

The value of the service provided to the customer by the company expecting to be
payed in return and hence that a customer has to meet the conditions required.

Resources

Resources include all means of service and tools used to provide services and
products, and through these resources the company lies on to ensure an efficient
supply of service to its customers.

FACTORS THAT WILL DEFINE THE FUTURE OF E-COMMERCE IN TOURISM


BUSINESS
1. Standards Making Process:
A well-established telecommunications and Internet infrastructure provides many of the
necessary building blocks for development of a successful and vibrant e-commerce marketplace.
2. Delivery Infrastructure:
Successful e-commerce requires a reliable system to deliver goods to the business or private
customer.
3. Availability of Payment Mechanisms:
Secure forms of payment in e-commerce transactions include credit cards, checks, debit cards,
wire transfer and cash on delivery.
4. General Business Laws:
The application of general business laws to the Internet will serve to promote consumer
protection by insuring the average consumer that the Internet is not a place where the consumer
is a helpless victim.
5. Public Attitude to E-commerce:
The public attitude toward using e-commerce in daily life is a significant factor in the success of
e-commerce.
6. Business Attitude to E-commerce:

The willingness of companies to move away from traditional ways of doing business and
develop methods and models that include e-commerce is essential.
PART B:
BUSINESS CONCEPTS AND STRATEGIES APPLICABLE TO E-COMMERCE
The Internet and the Web have had a major impact on the business environment in the last
decade, and have affected:
Industry structure
The nature of players in an industry and their relative bargaining power by changing the basis of
competition among rivals, the barriers to entry, the threat of new substitute products, the strength
of suppliers, and the bargaining power of buyers.

Industry value chains


The set of activities performed in an industry by suppliers, manufacturers, transporters,
distributors, and retailers that transforms raw inputs into final products and services by reducing
the cost of information and other transaction costs.
Firm value chains
The set of activities performed within an individual firm to create final products from raw inputs
by increasing operational efficiency.
Business strategy
A set of plans for achieving superior long-term returns on the capital invested in a firm by
offering unique ways to differentiate products, obtain cost advantages, compete globally, or
compete in a narrow market or product segment.

BASIC CONCEPTS OF CONSUMER BEHAVIOUR AND PURCHASING


DECISION
Stages in the Buying Process
Stage 1. Need Recognition
Perhaps youre planning to backpack around the country after you graduate, but you dont have a
particularly good backpack. Marketers often try to stimulate consumers into realizing they have a
need for a product. Do you think its a coincidence that Gatorade, PowerAde, and other beverage
makers locate their machines in gymnasiums so you see them after a long, tiring workout?
Previews at movie theaters are another example. How many times have you have heard about a
movie and had no interest in it until you saw the preview? Afterward, you felt like had to see it.
Stage 2. Search for Information

Maybe you have owned several backpacks and know what you like and dont like about them.
Or, there might be a particular brand that youve purchased in the past that you liked and want to
purchase in the future. This is a great position for the company that owns the brand to be in
something firms strive for. Why? Because it often means you will limit your search and simply
buy their brand again. What you already know about backpacks doesnt provide you with enough
information, youll probably continue to gather information from various sources. Frequently
people ask friends, family, and neighbors about their experiences with products. Magazines such
as Consumer Reports or Backpacker Magazine might also help you. Internet shopping sites such
as Amazon.com have become a common source of information about products. Epinions.com is
an example of consumer generated review site. The site offers product ratings, buying tips, and
price information. Amazon.com also offers product reviews written by consumers. People prefer
independent sources such as this when they are looking for product information. However,
they also often consult non neutral sources of information, such advertisements, brochures,
company Web sites, and salespeople.
Stage 3. Product Evaluation
Obviously, there are hundreds of different backpacks available to choose from. Its not possible
for you to examine all of them. (In fact, good salespeople and marketing professionals know that
providing you with too many choices can be so overwhelming, you might not buy anything at
all.) Consequently, you develop whats called evaluative criteria to help you narrow down your
choices. Evaluative criteria are certain characteristics that are important to you such as the price
of the backpack, the size, the number of compartments, and color. Some of these characteristics
are more important than others. For example, the size of the backpack and the price might be
more important to you than the color unless, say, the color is hot pink and you hate pink.
Marketing professionals want to convince you that the evaluative criteria you are considering
reflect the strengths of their products. For example, you might not have thought about the weight
or durability of the backpack you want to buy. However, a backpack manufacturer such as
Osprey might remind you through magazine ads, packaging information, and its Web site that
you should pay attention to these features
Stage 4. Product Choice and Purchase
Stage 4 is the point at which you decide what backpack to purchase. However, in addition to the
backpack, you are probably also making other decisions at this stage, including where and how
to purchase the backpack and on what terms. Maybe the backpack was cheaper at one store than
another, but the salesperson there was rude. Or maybe you decide to order online because youre
too busy to go to the mall. Other decisions, particularly those related to big ticket items, are made
at this point. If youre buying a high-definition television, you might look for a store that will
offer you credit or a warranty.
Stage 5. Post purchase Use and Evaluation
At this point in the process you decide whether the backpack you purchased is everything it was
cracked up to be. Hopefully it is. If its not, youre likely to suffer whats called post purchase

dissonance. You might call it buyers remorse. You want to feel good about your purchase, but
you dont. You begin to wonder whether you should have waited to get a better price, purchased
something else, or gathered more information first. Consumers commonly feel this way, which is
a problem for sellers. If you dont feel good about what youve purchased from them, you might
return the item and never purchase anything from them again. Or, worse yet, you might tell
everyone you know how bad the product was.
Companies do various things to try to prevent buyers remorse. For smaller items, they might
offer a money back guarantee. Or, they might encourage their salespeople to tell you what a great
purchase you made. How many times have you heard a salesperson say, That outfit looks so
great on you!? For larger items, companies might offer a warranty, along with instruction
booklets, and a toll free troubleshooting line to call. Or they might have a salesperson call you to
see if you need help with product.

Stage 6. Disposal of the Product


There was a time when neither manufacturers nor consumers thought much about how products
got disposed of, so long as people bought them. But thats changed. How products are being
disposed is becoming extremely important to consumers and society in general. Computers and
batteries, which leech chemicals into landfills, are a huge problem. Consumers dont want to
degrade the environment if they dont have to, and companies are becoming more aware of the
fact.
DIGITAL COMMERCE MARKETING AND ADVERTISING STRATEGIES AND
TOOLS TO USE IN TOURISM BUSINESS
Internet marketing (vs. traditional)
More personalized
More participatory
More peer-to-peer
More communal
The most effective Internet marketing has all four features

Multi-Channel Marketing Plan


1. Web site
2. Traditional online marketing
Search engine, display, e-mail, affiliate
3. Social marketing
Social networks, blogs, video, game
4. Mobile marketing
Mobile/tablet sites, apps
5. Offline marketing

Television, radio, newspapers

Strategic Issues and Questions

Which part of the marketing plan should you focus on first?


How do you integrate the different platforms for a coherent message?
How do you allocate resources?
How do you measure and compare metrics from different platforms?

How do you link each to sales revenues?

MAIN TECHNOLOGIES THAT SUPPORTS ONLINE MARKETING


Cloud Computing

Cloud computing is an amorphous term, but Im defining it here as data centers migrating away
from corporate or the home to the internet based data centers. Firms like Rackspace, Carbonite,
Jungle Disk and my favorite, Box.net are really growing their user base. The ability to integrate
these applications within other software packages, (for example you can integrate Box.net within
NetSuite), is a real alternative to the costly implementations for tools like Share point and
Documentum. Keep an eye on the company that Computer Associates acquired, 3Tera, and
software companies that virtualize data centers and applications. This software allows data
centers to move their entire operation to the data center closest to the highest levels of traffic
within seconds. As the world rotates each day, the data centers will also rotate to wherever the
sun is shining. The data center that never sees night interesting concept towards addressing
disaster recovery and increasing internet speeds while seeking best pricing on energy. Thats
enough to make the green contingency happy, the typical internet user and even the lawyers
among us.
Software as a Service
Major software industries are being consolidated from the traditional client / server model.
Companies such as NetSuite, Salesforce, Omniture, Rackspace, and others are finally making it
possible to enjoy the benefits of the internet without having to be a propeller-headed, geek. This
is our hope and Lima Consulting Group continues to position itself to help companies benefit
from these trends by integrating these software solutions for our clients. We believe there are
three is in technology Innovators (the manufacturers of software), Implementers (the
installers) and Integrators (consulting companies that implement two or more of the innovators
solutions). Well continue to see increased competition from new entrants who present
themselves as cloud computing, Software as a Service consulting companies.

PART C
Discuss the steps you should take, in developing an e-commerce
presence.
Maximize your customers experience. The world may be more comfortable with online
shopping these days, but as an internet retailer, you still have the disadvantage that no one can
physically examine your products. Fill this void with detailed product descriptions and additional
bullet points detailing specifications at a glance; utilize high quality photos, and integrate videos
such as product demos; enable product reviews; always think about how you can give your
customers more.
Establish your brand identity. From your logo and color scheme to your language use and total
website design, every decision you make sets a mood and establishes your companys
personality. How do you want your visitors to perceive you? The voice you choose and tone you
strike should be consistent throughout. These are the first steps to building a connection with a
customer. Be professional and unique.
Build Trust. People dont give their credit card information to people they dont have confidence
in. There are many ways to build that trust, but you should start with including company contact
details in an easy to find location and telling your company story. Assuring privacy and security
is essential. An Extended Validation Secure Sockets Layer (EV-SSL) certificate, which
customers recognize when they see a green bar or a green lock in the address bar of a secure
website, is also an important step for any online retailer.
Enable easy search-ability. Whether people come to your ecommerce website just to browse
or whether they are looking for something specific, you should do everything you can to make
their hunt a simple process. Place the search bar in a clear location (perhaps the top right) on
every single page; suggest similar or complementary items to the one a visitor is looking at; use
corrective searches that offer possible spelling suggestions rather than an error message; separate
products into logical categories, and enable search within each category.
Be mobile-friendly. Online shopping isnt just happening on desktop computers, so make sure
every customer can have a straight-forward experience, no matter what device they are
using. Responsiveness is vital for websites these days. You dont want to lose a possible sale
because your online store doesnt work on a smartphone or tablet.
Optimize the checkout process. Dont let your potential customers fill up their shopping carts
only to stop due to complexities or confusion. Make the checkout steps clear with a progress
indicator, and enable customers to navigate backward or forward easily during this process;
design all information forms with simplicity in mind, asking only for necessary information and
making entry errors understandable; offer guest check-out for customers who do not want to

register before their purchase; provide a clear order summary before the final purchase and a
clear order confirmation afterward.
Go above and beyond. People remember quality service. Its the little conveniences and special
add-ons that bring them back for more just as much as the quality products that they purchase.
Invest in solid customer service; offer a same-day shipping option or free shipping; provide gift
wrapping; communicate with professionalism and personality.

Process that should be followed in building an e-commerce presence.


1. Systems analysis/planning
2. Systems design
3. Building the system
4. Testing
5. Implementation

Key factors to consider in choosing Web server and e-commerce merchant


server software include:

Functionality

Support for different business models

Business process modeling tools

Visual site management tools and reporting

Performance and scalability

Connectivity to existing business systems

Compliance with standards

Global and multicultural capability