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Universal Journal of Management and Social Sciences
Vol. 5, No. 4; April 2015
E-Commerce and the Importance its Dimensions in the Marketing
Reza Zareii1, *Shahram Gilaninia2
1
Department of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran,
2
Department of Industrial Management, Rasht Branch, Islamic Azad University, Rasht, Iran
* Corresponding Author
Abstract
Something which separates e-commerce from traditional commerce is basically a route or
method through which the information between customers and sellers is exchanged and
processed. In e-commerce, the information instead of transferring through direct contact of
persons, exchanges through a digital network or other electronic channels. It means setting
processes electronically which is done with the exchange aim of money, commodity, services
and information. The difference between e-commerce and electronic commerce is in the kind of
commercial activities which support every one of them. E-commerce is just includes the activities
of commerce unit of an organization such as tenders, price quotations, order negotiation,
transportation delivers and pays. In addition to these processes, commerce includes activities
such as customer relations management, supply chain management and enterprise resource
planning. The combination of commerce and electronic began from 1970 and many huge
companies tried to made computer networks in order to exchange the commercial information
between themselves and producers, so e-commerce launched in four sessions: 1. Until March of
1994, the structure and architecture of e-commerce should be determined. 2. Until September of
1994, a primary e-commerce should be determined which enable the federal government and
private producers to exchange the information related to purchases and products prices. 3. Until
July of 1995, a complete system of e-commerce should be implemented and be capable to have
exchange the e-money and the use of databases. 4. Until the January of 1997, a complete
system of e-commerce with all possible capabilities should be implemented. In this article
attempts with the theoretical expression of E-Commerce be addressed the importance
dimensions, mechanisms and challenges.
Keywords: E-commerce, E-commerce Branches, Advantages of E-commerce, Disadvantages of
E-commerce
Introduction
E-commerce as a worldwide network and also as marketing and communication prerequisite
tries to change the methods of business, because of its ubiquity, relatively low cost access, ease
of work, flexibility and attraction (Lecy Et al. 2012). This technology has given new models of
purchasing, selling and service to customers and tries to make a new definition of traditional
relations between customers and sellers. (gilaninia et al, 2011) Interaction between technology
and business process is the key of understanding the effects that e-commerce may have on
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Universal Journal of Management and Social Sciences
Vol. 5, No. 4; April 2015
economic transactions and at economic totally. Something which separates e-commerce from
traditional commerce is basically a route or method through which the information between
customers and sellers is exchanged and processed. In e-commerce, the information instead of
transferring through direct contact of persons, exchanges through a digital network or other
electronic channels. E-commerce maybe creates a selling channel, marketing or excessive
distribution beside the traditional channel of commerce or commodities, services and new
market (Tseng 2010).
Concept of E-commerce
It means setting processes electronically which is done with the exchange aim of money,
commodity, services and information. The difference between e-commerce and electronic
commerce is in the kind of commercial activities which support every one of them (Marjani Et
al. 2012). E-commerce is just includes the activities of commerce unit of an organization such as
tenders, price quotations, order negotiation, transportation delivers and pays. In addition to
these processes, commerce includes activities such as customer relations management, supply
chain management and enterprise resource planning (Hertwig 2012). In today’s world, the
information and communication technology and its applications has led to significant changes
in economic, social and cultural processes, as of the previous conventional procedures has been
abolished completely and replaced by the methods of third millennium or so-called “virtual”
one. Exports are not excluded from this category. E-commerce and related procedure to the
electronic business have facilitated and accelerated the export sessions (Kraemer Et al. 2005)
History of E-commerce
The combination of commerce and electronic began from 1970 and many huge companies tried
to made computer networks in order to exchange the commercial information between
themselves and producers, so e-commerce launched in four sessions:
1. Until March of 1994, the structure and architecture of e-commerce should be determined.
2. Until September of 1994, a primary e-commerce should be determined which enable the
federal government and private producers to exchange the information related to purchases
and products prices.
3. Until July of 1995, a complete system of e-commerce should be implemented and be capable
to have exchange the e-money and the use of databases.
4. Until the January of 1997, a complete system of e-commerce with all possible capabilities
should be implemented (Carr 2003).
E-commerce Branches
1. E-commerce, electronic business
2. Electronic marketing
3. Electronic banking
4. Smart cards
5. Public relations management with customer (Potas Et al. 2010)
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Universal Journal of Management and Social Sciences
Vol. 5, No. 4; April 2015
Required Substrates for E-commerce:
1. A smooth and accurate banking system
2. Confidentiality of personal information
3. Acceptence of electronic documents by Judicial Branch
4. Laws,costoms, tax and banking
5. Commercial code of product and making information safety
6. Preparation and codification of financial system of information and legal system of
information (copyright)
7. Adapting the national regulations with international uniform regulations
8. Cooperation between universities, research centers and other organizations
9. Supply, issuing and applying smart card
10. Providing fast and reliable communication lines and create a platform for wireless
communication (Samieezadeh & Chaharsooghi 2008)
Advantages of E-commerce
1. Delay in preparing and submitting the documents will be disappeared.
2. No need to reenter data into computer and reduce costs
3. Accelerate the flow of information at transactions and entering the cross-regional
markets for global marketing
4. Receive e-mail messages that are announced in a small distance to the sender.
5. Time and space limitations will be disappeared.
6. Reduction of commodity and service costs, selling increase followed by increased
income and investment potential
7. Increase the welfare of people’s lives by creating jobs, reducing traffic and increasing
globalization speed
8. Quick access to information and create a new commercial opportunities for
entrepreneurs
9. Facilitate entry to international markets (Ling 2001)
Disadvantages of E-commerce
1. Human social relations
2-Reduction of production
3-Bankruptcy, due to the inability of small businesses and reduction of production (Mahdavi
& Haghdoust 2007)
E-commerce and Its Challenges
It can be said that nowadays along with the wide span of e-commerce companies in this wide
area, a company should has a deserving management team, proper services and good selling,
proper structure of planned business, ideal infrastructure with safe network and at last
websites with good designing in additional to proper product regarding customer demand to
survive. In other word, the success key of a company at e-commerce area can be recognized
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Universal Journal of Management and Social Sciences
Vol. 5, No. 4; April 2015
from two aspects: technology with proper organization and costumer-centered procedure
(Dehghani 2007)
Technical and organizational point of view are as follows:
1. Market researches and proper designing of business and supply and demand
2. Strong management team in accordance with Information technology (IT) strategy
3. Provide and easy and secure way of exchange and interaction with customers .,Making a
perfect business model, Performance based on the new technology and updating ,Focus
on a limited numbers of competitive advantages
4. Offering attractive and efficient websites
5. Regarding the opinions and experiences, and providing self-service services for
customers (Yukl 2008)
The Impact of E-commerce Application on Exports
At the globalization substrate, the development of information technology (IT) has increased
the richness of information in society. If different parts of society especially commercial part
have enough rich information, there is the expectation of successful presence of companies and
businesses of different parts of that society at competitive level and global market.
Information
technology
development
Increase
information
richness
Successful
presence at
global scene
Export
development
The impact of technology on development of export (Jahangir 2006)
Continuous development of
companies and products
Allocation of tasks instead
of products
Globalization
Global
presence
Export
development
Replacing input business
Reorganization of
traditional structure of
industry
Advantages of E-commerce regarding development of export (Safari 2010)
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Universal Journal of Management and Social Sciences
Vol. 5, No. 4; April 2015
Challenges and Solutions of E-commerce in the World
Undoubtedly, utilizing information technology (IT) is one of the required elements to increase
commercial efficiency in national economic. Nowadays using internet and resulted commerce
from this technology by companies, has become an instrument to reach competitive advantage
in commerce. New changes of 21 century and market globalization followed by new methods of
commerce and marketing which has been impressed by rapid improvement of all aspects of
science and technology, and made most of economists, experts and futurists to believe that in
recent years, a revolution such as industry revolution has been done. This revolution has
entered the world into a new area and affect different economic, social and cultural aspect of
human life and through utilizing new technologies, and reach an unbelievable level of dynamics
and variability
(gilaninia et al 2012-B) . Nowadays being at global markets by the help of successful methods
which indicates a picture of the economic capability of that country, are such requirements
compatible with current international system regarding achieved progresses at industrial and
economic area. One of the aspects of economic area is deep changes which has been made in
economic relation between persons, companies and governments, while has presented a new
phenomenon as electronic business and e-commerce (Dubelaar Et al. 2005). One of the most
important features of using this technology is streamlining the operation methods and so
reduction of costs. Undoubtedly, rational utilizing of e-commerce technology can help us to
improve business performance and more active presence in commerce area and will improve
the condition of society at regional and global markets (Sajjadi & FallahZadeh 2012).
E-commerce includes all process of development, marketing, selling, delivering, services and
electronic payment for products and exchanged services in network and global markets of
costumers and is supported by global network of business partners (Podsakoff Et al. 2000).
Conclusion
E-commerce is just includes the activities of commerce unit of an organization such as tenders,
price quotations, order negotiation, transportation delivers and pays. In addition to these
processes, commerce includes activities such as customer relations management, supply chain
management and enterprise resource planning. In today’s world, the information and
communication technology and its applications has led to significant changes in economic,
social and cultural processes, as of the previous conventional procedures has been abolished
completely and replaced by the methods of third millennium or so-called “virtual” one. Ecommerce Branches is included, E-commerce, electronic business, electronic marketing,
electronic banking, smart cards, public relations management with customer. Advantages of Ecommerce included events such as delay in preparing and submitting the documents will be
disappeared. No need to reenter data into computer and reduce costs. Accelerate the flow of
information at transactions and entering the cross-regional markets for global marketing.
Receive e-mail messages that are announced in a small distance to the sender. Time and space
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Universal Journal of Management and Social Sciences
Vol. 5, No. 4; April 2015
limitations will be disappeared. Reduction of commodity and service costs, selling increase
followed by increased income and investment potential. Increase the welfare of people’s lives
by creating jobs, reducing traffic and increasing globalization speed. Quick access to
information and create a new commercial opportunities for entrepreneurs(gilaninia et al 2012A). Facilitate entry to international markets. Also Disadvantages of E-commerce included
human social relations, reduction of production, bankruptcy, due to the inability of small
businesses and reduction of production. It can be said that nowadays along with the wide span
of e-commerce companies in this wide area, a company should has a deserving management
team, proper services and good selling, proper structure of planned business, ideal
infrastructure with safe network and at last websites with good designing in additional to
proper product regarding customer demand to survive. In other word, the success key of a
company at e-commerce area can be recognized from two aspects: technology with proper
organization and costumer-centered procedure. Undoubtedly, utilizing information technology
(IT) is one of the required elements to increase commercial efficiency in national economic.
Nowadays using internet and resulted commerce from this technology by companies, has
become an instrument to reach competitive advantage in commerce.
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