Merce and B.commumication Notes

GOBIND KUMAR JHA 9874411552
E-COMMERCE
&
BUSINESS COMMUNICATION
BY
GOBIND KUMAR JHA
“The journey of thousand miles begins with single step”.
“ Don’t take rest after success because lips are waiting to say that
last success was your luck” – APJ Abdul Kalam
9874411552
“Special Thanks to Mr. Jay Rudra Jha for his effort”.
1 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

Unit – 1
Fundamentals of E-Commerce and E-Business Models
Definition: - “Any economic or business activity that uses Information and Communication Technology (ICT)-
based applications to enable the buying and selling of products and services and to facilitate the transaction of
business activities between and among organizations and individuals.”
Going a further, E-commerce may be additionally defined as –
“the sharing of business information, maintaining business relationships, and conducting business
transactions by means of telecommunications networks.”
We may now go for a wider spectrum of E-commerce. Besides a wide range of online business
activities for products and services, E-commerce also pertains to –
“any form of business transaction in which the parties interact electronically rather than by physical
exchanges or direct physical contact.”
Major players in E-Commerce:

(i) Vendors:
(ii) Commerce Service Provider (CSP):
(iii) E-merchants:
(iv) End users:
Scope of E-Commerce:
The scope of E-commerce may be stated as below:
(i) Carrying on planning jobs electronically through internet, irrespective of whether it is marketing,
production or financial planning;
(ii) Carrying on organizing company’s business through electronic methods;
(iii) Carrying on production and marketing activities through electronic devices;
(iv) Buying and selling of goods and services through a computer mediated network;
(v) Carrying on all other business activities including e-payment through Internet.

Forces fuelling E-Commerce:

There exist three major forces fuelling E-commerce. Those are: economic forces, marketing forces and
technology forces:
Economic Forces:
Marketing Forces:
Technology Forces:
Importance of E-Commerce:
The following are the importance of E-commerce:
1. Wide application
2. Online transactions
3. Exchange of financial data
4. Introduction of different models and websites
5. Consideration of technical issues
6. E-tailing
7. Market research
8. Access to global market place
9. High speed
10. Increase in income
Components of E-Commerce:
The following are the components of E-Commerce:
 Seller;
 Transaction Partner;
 Consumers;
 Companies/Business;
 Government;
 Internet.

Benefits of E-commerce specified:

The benefits of E-commerce are as follows:
1. Global presence;
2. Quality of service;
3. Mass customization of products and services;
4. E-commerce allows ”Network Production”;
5. Selling and buying of items;
6. Minimization of transport obstacles;
7. Availability of services;
8. Reduction in cost;
9. Saving in time;
10. Fast inter-connection;
11. Minimization of cost of operation;
12. Elimination of the middlemen;
13. Tailoring products to customers’ needs;
14. Easy distribution process;
15. Convenience to customers;
16. Reduction in inventory size;
17. Better display.
Limitations of E-commerce:
1. Restricted availability of internet access;

2. Expensive communication infrastructure;
3. De-personalisation of transaction;
4. Loss of customer’s privacy;
5. Attacks by hackers;
6. Difficulty in EDI standards;
7. Brand hijacking;
8. Dishonest training;
9. Attack from virus;
10. Limited to sensory information.
E-Business defined and classified:

In an international benchmarking study for assessing the adoption of e-business in SMEs, the
Department of Trade and Industry emphasized the application of technology in the full range of business
processes, but also emphasise how does it involve innovation.

E-Business, Therefore, Encompasses:
1. Business-to-Customer (B2C): Commercial transactions are between an organization and customers.

2. Business-to-Business (B2B): Commercial transactions are between an organization and other
organizations.
3. Consumer-to-Consumer (C2C): Informational or financial transactions are between customers, but usually
mediated through a business site.
Mobile Commerce or M-Commerce:
Benefits of Mobile Commerce:

(i) Since mobile commerce is the integration of wireless technologies, most of the benefits offered by
Internet and electronic commerce are also offered by mobile commerce.
(ii) The 24 hours round the clock availability of internet is also available to mobile commerce users who could
conduct their business and access information at their convenience, irrespective of whether they are
confined to home or office or any other place, provided it has Internet connectivity.
(iii) Mobile commerce offers a great deal of flexibility in accessing the information through a personalized
mobile environment.
(iv) As because the nature of wireless infrastructure assists in identifying mobile users in a geographic-specific
region, the region-specific promotion or information dissemination can be easily accomplished in the
mobile commerce environment.
(v) Mobile commerce offers better opportunity for personalization of information and delivery of content
which is relevant to the mobile users.
(vi) Instead of third party mechanism of credit cards as required in electronic commerce payment models,
mobile commerce can utilize the mobile device itself for payment of bills, such as – phone bill, electric bill,
petrol purchase etc.
Drawbacks of Mobile Commerce:

(i) Limitation of mobile devices;
(ii) Incompatible networks;
(iii) Band access;
Definition and Clarities of Internet:

The dictionary meaning of Internet is the information superhighway or cyberspace or the net or the
web or World Wide Web (WWW). Arising from the basic dictionary meaning, Internet appears to be the most
important and well-known component of the Information Superhighway network infrastructure. As on today,
Internet is an interconnected networks serving as an information distribution system spreading throughout
the world at large. By using the Internet, one can communicate with the people all over the world by means of
e-mail; one can read online newspapers, magazines, books; one can also join discussions on any topic and can
also participate in games.

It may now be concluded that according to the transaction partners or parties e-commerce can mainly
categorized into categories or models as follows:
(i) Business-to-Business (B2B);
(ii) Business-to-Consumer (B2C);
(iii) Consumer-to-Consumer (C2C);
(iv) Consumer-to-Business (C2B).
 Business-to-Business (B2B) Model Operation:
 Components of B2B Model:

The B2B market has two primary components: (i) E-frastructure; (ii) E-markets.
E-frastructure is the architecture of B2B, primarily consisting of the following:
(i) Logistics – transportation, warehousing and distribution.
(ii) Application service providers – deployment, hosting and management of packaged software from a central
facility like Oracle, Link share.
(iii) Outsourcing of functions in the process of e-commerce, such as: web-hosting, security and consumer care
solutions.
(iv) Auction solutions software for the operation and maintenance of real-time auctions in the internet.
(v) Content management software for the facilitation of website content management and delivery.
(vi) Web-based commerce enablers.
E-markets are simply defined as websites where buyers and sellers interact with each other and conduct
transactions.
 Features of B2B E-Commerce:
(i) Electronic documents are interchanged between business partners through Electronic Data Interchange
(EDI).
(ii) The purchase order is processed and sent by e-mail to the vender.
(iii) The purchase order is stored in a database by the vendor and is acknowledged electronically.
(iv) The vendor dispatches the items ordered either physically or by rail or truck and simultaneously a
delivery note is sent to the customer vendor by e-mail.
(v) On arrival at destination the goods are inspected and verified with the delivery note.
(vi) The stores office updates the inventory by taking notes of inspection and delivery notes.
(vii) The accounts office electronically pay for the items received, through Electronic Fund Transfer (EFT).
 Applications of B2B E-Commerce:
Most B2B applications are in the areas of –
(i) Suppliers management, specially purchase order processing.
(ii) Inventory management, i.e., managing order-ship-bill cycles.
(iii) Distribution management, specially in the transmission of shipping documents.
(iv) Channel management, i.e., information, dissemination on changes in operational conditions.

(v) Payment management, e.g., electronic payment systems or EPS.
 Benefits of B2B E-Commerce:
1. Transactions cost;
2. Elimination of Intermediaries;
3. Enhancement of Price Transparency;
4. Economics of Scale and Network Effects;
5. Direct Interaction with Customers;
6. Focused Sales Promotion;
7. Building Customer Loyalty;
8. Scalability.
 Business-to-Consumers (B2C) Model:
 Benefits of B2C E-Commerce:

(i) Reduces transaction costs;
(ii) Reduces entry barriers;
(iii) More alluring and attractive.
 Consumer-to-Consumer (C2C) Model:
 Features of Consumer-to-Consumer (C2C) Model:

(i) Individuals, intending to sell any item, use an intermediary’s website address.
(ii) The auction site is available for the buyers and sellers for the purchase and sale of goods and services.
(iii) Electronic publishing of scholarly articles or stories are made by the individuals.
(iv) There exists an Internet as the medium of inter-exchange of message.
 Consumer-to-Business (C2B) Model:
E-Governance
E-commerce: E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the
Internet, especially the World Wide Web. Often the terms e-commerce and e-business are used
interchangeably. But it is safer to view e-business as an objective and e-commerce as the means of achieving
this objective.

E-governance: E-Governance is the performance of the governance via the electronic medium in order to
facilitate an efficient, speedy and transparent process of disseminating information to the public, and other
agencies, and for performing government administration activities (Unesco).
E-government: E-Government refers to the use by the government agencies of information technologies (such
as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with
citizens, businesses, and other arms of government.
E-Governance Models:
1. The broadcasting model:
2. The critical flow model:
3. E-Advocacy/Mobilization and lobbying model:
4. The interactive-service model:
Transaction Form Of E-Governance:

 Government-to-Government (G2G) Model;
 Government-to-Consumer (G2C) Model;
 Consumer-to-Government (C2G) Model;
 Government-to-Business (G2B) Model;
 Business-to-Government (B2G) Model.

MCQ Statement
Group – A (1 Mark Type Questions)

1. Marketing and advertising are the functions of E-commerce.
2. Warehousing is not a function of e-commerce.
3. By e-commerce is meant commerce based on transactions using computers connected by
telecommunication network.
4. B2B, B2C & C2B are part of the four main types of e-commerce.
5. To B2C segment do e-bay and Amazon.com belong.
6. C2C model focuses on consumers dealing with each other.
7. C2C model deals with auction.
8. The best products to sell in B2C e-commerce are digital products.
9. Books, PCs, CDs are most liked by the people to be comfortable buying on the internet.
10. Most individuals are familiar with B2C form of e-commerce.
11. B2B form of e-commerce currently account for about more than 95% of all e-commerce revenues.
12. Vertical form of e-market plan brings together buyers and sellers from the same industry.
13. Banner ad is the type of ad which appears on a web page.
14. Pop-up ad type of ad appears on top of a web page.
15. C2G model is part of E-governance.
16. Availability determines when your IT system will be available for knowledge workers to access?
17. Accessability determines who has the right to access different types of IT system and information?
18. Reliability ensures IT systems are functioning correctly and providing accurate information.
19. Scalability represents how well your system can adapt to increased demands?
20. Doing business electronically describes e-commerce.
21. Coversion rate is the percentage of customers who visit a website and actually buy something called?
22. Unique value auction mainly applies to second hand products.
23. Encryption, Decryption and Firewall is a useful security mechanism when considering business strategy
and IT.
24. A business cannot be all things to all people instead, a business must identify target customers, identify
the value of products as perceived by the customers.
25. Customization refers to creating products tailored to individual customers.
Group – B (2 Marks Type Questions)

1. Furniture products are people are most likely to be more uncomfortable buying on the Internet.
2. Digital products are best suited for B2C e-commerce because they are commodity like products, can be
mass-customised and personalized, can be delivered at the time of purchase.
3. Reverse auction is the process in which a buyer posts his internet in buying a certain quantity of items, and
sellers compete for the business by submitting successively lower bids model there is only one seller left.
4. Shorter cycle times, Reduction in costs, Reaches wider audiences are advantages normally associated
with B2B e-commerce.
5. Automobiles is lesser purchased using e-commerce.
6. Customization refers to creating products tailored to individuals customers.
7. Amazon.com is well known for affiliate programme of e-commerce marketing techniques.

8. Electronic market place is the name given to an interactive business providing a centralized market where
many buyers and sellers can come together for e-commerce activities.
9. For carrying out B2B e-commerce corporate network, electronic data interchange standards, secure
payment services, secured electronic communication link connecting business are essential.
10. For carrying out B2C e-commerce World Wide Web, Secure Payment Services are essential.
11. For carrying out C2C e-commerce World Wide Web, Electronic Data Interchange standards are essential.
12. Advantages of B2C e-commerce are business gets a wide reach to customers, shop can remain open 24
hours a day seven days a week.
13. B2C e-commerce includes services such as legal advice.
14. Advantages of B2C e-commerce to customers are wide variety of goods can be accessed and comparative
prices can be found, shopping can be done at any time.
15. Electronic Data Interchange is necessary in case of B2B e-commerce.
16. EDI use can be done on internet.
17. The acronym DES stands for Digital Encryption Standard.
18. Legal professionals is not a major player in e-commerce.
19. Ability to reach directly to the customers is the strength of e-commerce.
20. Electronic tax payment belongs to C2G category of e-commerce.
21. Transition phase is not a stage in the development of e-governance.
22. The facilitator of National E-Governance Programme (NEGP) in India is department of electronics and
information technology.
23. Click through term represents a count of the number of people who visit one site, click on an ad, and are
taken to the site of the advertiser.

Unit – 2
Electronic Customer Relationship Management
(E-CRM)
From Relationship Marketing (RM) to Customer Relationship Marketing (CRM):
The concept of Relationship Marketing was first mooted by Leonard Berry in 1983. He deemed it to
consist of attracting, maintaining and enhancing customer relationships within the organization. As the years
rolled on, companies started more and more entering into a meaningful dialogue with person to person
customers. In the process of doing so, new organizations form as well as new technologies were used,
eventually giving birth to what we know as Customer Relationship Management (CRM). The prime difference
between RM and CRM is that the former does not accept the use of technology whereas the latter uses
Information Technology in implementing RM strategies.
Concept and Definition of CRM:
Primarily, Customer Relationship Management (CRM) is a business strategy enabled by the advances in
technologies. Worldwide implementation of customer information, Enterprise Resource Planning (ERP)
system, Sales force automation and integrated selling point systems – all together have made customer
information available readily and massively.
With the concept and definition of CRM as explained above, we may conclude that in order to
implement CRM in an effective way, one may need to consider the following factors –
 Create a customer focused corporate culture in the organization.
 Adopt customer-based managers to assess customer satisfaction.
 Develop an end-to-end process to serve customers.
 Recommend questions to be asked to help a customer solving problems.
 Tracking all aspects of selling to customers and prospects.
Information of ECRM:
Electronic Customer Relationship Management (ECRM) has developed into the latest model in the
world of Customer Relationship Management. ECRM is now more and more transforming into a business
necessity for companies that have taken to web technology. Web-enabled companies can no more reply on
traditional strategies that have brought them to where they are today.
Objectives of ECRM:
(i) Increased customer loyalty;

(ii) More effective marketing;

(iii) Improved customer service and support;
(iv) Greater efficiency and cost reduction.
Pre-implementation Considerations:
(i) Developing Customer Focused Business Strategies:
(ii) Retooling Business Functions:
(iii) Work Process Re-engineering:
(iv) Technology Choices:
(v) Training and Preparation:
Concept and Definition of Electronic CRM:
The concept of Electronic CRM (ECRM) is derived from Electronic Commerce (e-commerce). ECRM
makes use of net environment, i.e., intranet, extranet and internet. The trend of the upcoming Internet can be
seen as the foundation of what we know as e-CRM today.
ECRM Strategy Components:
When companies integrate their customer information, there are three e-CRM strategy components:
1. Operational: Because of sharing information, the processes in business should make customers’ need as
first and seamlessly implement. This avoids multiple times to bother customers and redundant ECRM
process.
2. Analytical: Analysis helps company maintain a long-term relationship with customers.
3. Collaborative: Due to improved communication technology, different departments in company implement
or work with business partners more efficiently by sharing information.
Scope of ECRM:
In defining the scope of e-CRM, different levels can be distinguished:

1. Foundational Services: This includes the minimum necessary services, such as, website effectiveness and
responsiveness as well as order fulfillment.
2. Customer-Centered Services: these services include order tracking, product configuration and
customization as well as security and/or trust.
3. Value-added Services: These are extra services, such as, online auction and online training and education.

Features of ECRM:
The important of e-CRM are as follows –

(i) It is an integrated customer information architecture.
(ii) It is highly interactive in character.
(iii) It is directly responsive to customer’s requests or problems that helps enterprises to establish and sustain
long-term customer relationship.
(iv) Existence of personalized web pages is of great help.
(v) Products or services are customized.
(vi) It ensures creation of right messages for the right customers and communication of the message through
the right medium.
Functional Components of ECRM:
The important functional components of ECRM may be as follows –

1. CRM software;
2. Business processes;
3. Users of ECRM;
4. Hardware and operating system;
5. People management;
6. Lead management;
7. Sales force automation;
8. Workflow automation;
9. Customer service;
10. Marketing;
11. Analytics.
Strategies of ECRM Solutions:
Numerically enumerated, the r-CRM strategies are –

(i) Creation of a customer-based culture in the organization.
(ii) Adaptation of customer-based managers to assess customer satisfaction.
(iii) Development of an end-to-end process to serve customers.
(iv) Help the customers to answer their questions and solve their problems.
(v) Tracking of all aspects of selling to existing customers as well as to prospects.
(vi) Adoption of Transaction Processing System (TPS) to process real time data.
In view of the importance of ECRM, the strategy for ECRM can be visualized in three stages of –
(i) Customer Information Environment;
(ii) Customer Value Orientation;
(iii) Customer Loyalty.

Benefits or Advantages of ECRM:
The benefits or advantages of ECRM may be stated as follows –

(i) Extended customer relationships.
(ii) Improved customer service and support at all potential contact points.
(iii) Improved product and service delivery process.
(iv) Competitive services delivering high value.
(v) Better customer knowledge and insight.
(vi) Better internal collaboration on valuable customer knowledge and connection with the customers and
partners.
(vii) Personalized experience between the enterprise and the customer ensures smooth and efficient
customer services.
(viii) Multi-channel interaction with knowledge between the enterprise and customers through available
channel, such as – phone, web, e-mail, video etc.
(ix) One-to-one marketing ensuring opportunities to reinforce brand loyalty and convert regular interaction
into great experience for the customers.
(x) Real Time Interaction by providing service right at the sight through phone, chat, e-mail, collaboration
between the representatives and the customers.
(xi) Prompt service through highly trained professionals.
(xii) Target Marketing by providing information to the customers about selective new products and services
based on their previous buying patterns, profile, tastes, internets etc.
(xiii) More effective marketing through targeted campaign and tracking of desired customer audience
effectively.
(xiv) Greater Efficiency and Cost Reduction as the cost of purchasing, implementing and administering is very
low relative to other electronic interaction channels.
(xv) Development of customer-focused business strategies by providing of variety of existing access channels
for customers, such as – e-mail, telephone and fax etc.
Disadvantages or Limitations of ECRM:
The disadvantages or limitations are as follows:

(i) It gives rise to impersonal relationship as there is no system of recognition between the users and the
business enterprises.
(ii) Sometimes mismatch occurs between the enterprise and vendors’ CRM software.
(iii) A poor understanding of the company’s business.
(iv) Implementation of ECRM has a very high rate of failure because of lack of active senior management
sponsorship.
(v) Rejection by the end-users is always a possibility when business functions are re-tooled.
(vi) Sometimes larger size of project may invite failure in the initial stage.
(vii) The ECRM projects either experiencing difficulty or potentially flop, both on the company’s failure to
articulate its needs and the consultancy hired to implement the system.
(viii) Difficulty in measuring and valuing intangible benefits.
(ix) Failure to identify and focus on specific business problems.

(x) Poor user acceptance of ECRM.
Mobile CRM:
The mobile-CRM is becoming popular for reasons which are mainly three –
(i) The devices used by the consumers are improving in multiple ways which allowed for this advancement.
Displays are larger and clear and access time on networks are overall improving.
(ii) Secondly, the users are also becoming more sophisticated to adopt the technology which is nothing new
to them.
(iii) Thirdly, the software developed for applications in m-CRM has become worthwhile and useful to end-
users.
Major ECRM Hazards:
The following lines outlines the potential hazards with ECRM implementation:
(i) Mismatch between a company’s and vendor’s CRM software. Every effort must be made to find a vendor
whose product is flexible enough to emulate the company’s best practices and does not force the
company to adopt the vendor’s best practices. Therefore, each company should select the solution which
best handles the critical customer-facing functions and maintains robust links to the existing ERP system.
(ii) A poor understanding of the company’s business processes.
(iii) The ECRM implementations that take more than ninety days have a high failure rate and the company
should be skeptical about implementation that are considerably longer than 90 days.
(iv) Vendor stability should be a criteria used in selection. It is necessary to check the financial stability of the
vendor to assess whether or not it is likely to be able to survive a softening economy.
(v) Rejection by end-users is always a possibility when business functions are retooled.
(vi) Size of project. Some ECRM implementations have failed, because their initial scope was too broad.
MCQ Statement
Group – A (1 Mark Type Questions):
1. Customer Relationship Management is about acquiring the right customer, instituting the best processes
and motivating employees.
2. The main drawback of CRM is implementing CRM before creating a customer strategy, rolling out CRM
before changing the organization to match and stalking, not wooing, customers.
3. Customer touch point is any occasion on which the brand and product is used by end customers.
4. Consumer behavior is the study of how individuals, groups and organizations select, buy, use and dispose
off goods, services, ideas or experiences to satisfy their needs and wants.
5. A consumer buying behavior is influenced by cultural and social factors, personal factors.
6. Cultural factors exerts the broadest and deepest influence on buying behavior.
7. Socioeconomic system classifies urban households into 8 broad categories.

8. Socioeconomic system classifies rural households into 4 broad categories.
9. Social class is indicated by several variables.
10. A person’s reference groups are all the groups that have a direct or indirect influence on their attitudes or
behavior.
11. Record which is based on business customers past purchases, sales price and volumes is classified as
business database.
12. Whole cluster of benefits when company promises to deliver through its market offering is called value
proposition.
13. All costs customer expects to incur to buy any market offering is called total customer cost.
14. Customised products and services for customers and interaction to individual customers are part of
customer relationship management.
15. Company’s monetary, time and energy cost, all are included in total customer cost.
16. Customers lifetime purchases that generate net present value of future profit streams is called customer
lifetime value.
17. ‘Total customer benefits’ includes product benefits, services benefits, image benefits.
18. Difference between customers evaluation including all costs incurred and benefits is called customer
perceived value.
19. Process of building, organizing and using databases of customer to build customer relationship is
classified as database marketing.
20. Perceived monetary value of all benefits which customers expect from a given product because of brand
image is called total customer benefit.
21. System includes all experiences while using market offering is classified as value delivery system.
22. Technique which tries to identify real cost of serving an individual customer is called activity based
accounting.
23. Process of manage information about customer to maximize loyalty is said to be customer relationship
management.
24. Record which is based on business customer past purchases, sales price and volumes is classified as
business database.
25. Whole cluster of benefits when company promises to deliver through its market offering is called value
proposition.
26. Database marketing is a systematic approach to the gathering, consolidation, and processing of
consumer data (both for customers and potential customers) that is main-tained in a company’s
databases.
27. Contact center is a central point in an enterprise from which all customer contacts are managed.
28. Customer segmentation is the practice of dividing a customer based into groups of individuals that are
similar in specific ways relevant to marketing, such as age, gender, interests, spending habits, and so on.
29. E-commerce website provide complete product information, ranging from pictures of the item in
question to complete specifications.
30. Relationship Marketing focus on customer retention.
31. With customers, conflict may come when company err, customer err and third party gets involved and
errs.
32. Relationship marketing sometimes is referred to as customer relationship management.
33. POS means point of sales.

34. Brainstorming is used for generating ideas.
35. Transaction marketing focus on single sale.
36. In Transaction Marketing, product quality is a primarily a concern of product departments.
37. For good CRM implementation intelligent database is needed.
38. E-Customers demand constant access, immediate response and personalized touch.
39. Customer care begins before the sale.
40. Provide better customer services, cross sell products more effectively, discover new customers are the
goal of CRM.
41. CRM is about managing customer to better understand and serve customer.
42. Objective of CRM is to turn customers into partners.
43. CR is a powerful tool for business.
44. In relationship marketing, orientation is on product benefit.
45. For having good CRM heavy investment in IT is needed.
46. Relationship manager has to develop long term plan towards customer relationship.
47. Customer who always use your product over competitors product are called as loyal customer.
48. The largest medium, for direct response is telemarketing.
49. An information system always requires hardware even if only a pencil.
50. E-bay is a good example to define C2C.
Group – B (2 Marks Type Questions):
1. CRM technology can help in designing direct marketing effort, developing new pricing models,
processing transactions faster.
2. Data mining uses sophisticated mathematical and statistical techniques such as neutral networking and
cluster analysis.
3. The marketing messages committed to customers wishes is a part of permission marketing.
4. The method used to assess real cost of providing services to an individual customer is activity based
accounting.
5. Culture is the fundamental deter-minant of a person’s wants and behavior.
6. Indian marketers use a term called socioeconomic classification, which is based on the education and
occupation of chief wage earner.
7. Aggregate value of customer’s base is classified as shareholder value.
8. Percentage or number of customers who move from one level to next level in buying decision process is
called conversion rates.
9. A person or company that yields a revenue more than incurred costs of selling and serving is called
profitable customers.
10. Programs designed for customers which is limited to any affinity group are classified as club membership
programs.
11. First step in analysis of customer value is to identify customers value attributes.
12. Number of customers or potential customers who will help in company’s growth is classified as customer
base.
13. Any occasion on which brand or product is encountered by end customers is called customer touch point.

14. In buyer decision process, percentage of potential customers in a given target market is called marketing
funnel.
15. Aggregate value of customer’s base is classified as shareholder value.
16. Permission marketing is an approach to selling goods and services in which a prospect explicitly agrees in
advance to receive marketing information.
17. In an internet context, personalization is the practice of tailoring Web pages to individual users
characteristics or preferences.
18. CRM analytics is the processing of data about customers and their relationship with the enterprise in
order to improve the enterprise’s future sales and service and lower cost.
19. Hosted CRM is an arrangement in which a company outsources some or all of its customer relationship
management function to an application service provider (ASP).
20. A central components of CRM personalization is reflected in product descriptions.
21. Surveys is one of the methods for capturing customer information.
22. Silent brainstorming is the first activity to collect clues about what’s important to managing customer
relationships.
23. CRM process begins after sales and before sales.
24. For choosing the right CRM strategy selection Matrix is used.
25. Delivering value is a corner-stone of the relationship.
26. One of the top CRM business driver is automation.
27. Customer information is the fuel for CRM engine.

Unit – 3
Supply Chain Management (SCM)
Backdrop of Supply Chain Management (SCM):
The Supply Chain Management (SCM), covers all aspects of business from the flow of materials,
through distribution channel, to the end-users, each and every aspect of which is covered by the management
system – whether it is material sourcing, product designing, production planning, order processing, inventory
management, transportation and warehousing and above all, customer service. In such a long process,
business partners and customers connect together through the Internet to participate in business trading as
well as in communication and interaction.
Concept and Definition of SCM:
The supply chain begins with the need for a computer and embraces all kinds of activities required to
meet customer demands and to fulfill customer desires. All such activities are associated with the flow and
transportation of goods from the raw materials stage through to the end-users as well as associated with
information stream and funds flow. The supply chain consists of four stages, such as –
(i) The supply network,
(ii) The internal supply chain (i.e. manufacturing plants),
(iii) Distribution systems, and
(iv) The end-users.
In going up and down the stages, there exist four flows, such as –
(i) Material flow,
(ii) Service flow,
(iii) Information flow, and
(iv) Funds flow.
The supply chain is designated as e-supply chain, when it creates three linkages using internet
technologies.
(i) E-procurement links the supply network and manufacturing plant.
(ii) E-distribution link the manufacturing plant and the distribution network.
(iii) E-commerce links the distribution network and end-users. There are two different types of supply chain.
One is responsive supply chain and the other is efficient supply chain. The purpose of responsive supply
chain is to react quickly to market demand and the purpose of efficient supply chain is to co-ordinate the
material flow and services to minimize inventories and maximize the efficiency of the manufactures and
service providers in the chain.

“Real-Time” Benefits Provide by E-SCM:
(i) Global trading capabilities;

(ii) Mass personalization and customization;
(iii) Global exchange of knowledge;
(iv) Global communities;
(v) Collaborative workflow;
(vi) Vertical marketplaces specific to a particular industry;
(vii) Horizontal marketplaces;
(viii) In-between enterprise, i.e., enterprise – to – enterprise connectivity;
(ix) E-marketplace-to-E-marketplace connectivity.
Strategic Advantages of E-SCM:
Rapid Development and Scalability:
Real-time Processing:
Return on Investment:
Key Components of Supply Chain Management:
Such categories of components are as follows:

1. Location.
2. Transportation and logistics.
3. Inventory and forecasting.
4. Marketing and channel restructuring.
5. Sourcing and supplier management.
6. Information and electronic mediated environments.
7. Product design and new product introduction.
8. Service and after sales support.
9. Reverse logistics and green issues.
10. Outsourcing and strategic alliances.
11. Metrics and incentives.
12. Global issues.

Characterization of Supply Chain Management:
(i) Sourcing;
(ii) Production;
(iii) Distribution.
Supply Chain Models and Process
Competitive Priorities and Manufacturing Strategy:
1. Competitive Priorities;
2. Manufacturing Strategies.
Collaborative Planning, Forecasting and Replenishment (CPFR)
Major Activities of CPFR:
 Planning,
 Forecasting,
 Replenishment.
Implementation Step for CPFR:
As guidelines for effectively implementing CPFR, eight steps, as given below, are suggested:
 Step 1 : Develop collaborative arrangement
 Step 2 : Create joint business plan
 Step 3 : Create Sales forecast
 Step 4 : Identify exceptions for sales forecast.
 Step 5 : Resolve/collaborate on exceptional items
 Step 6 : Create order forecast
 Step 7 : Identify exception for order forecast
 Step 8 : Order generation.
The above eight steps will guide companies to successfully implement CPFR.

MCQ Statement
1. The use of information technology to automate business transactions is known as management

information systems.
2. Producer is not a typing supply chain member.
3. When suppliers, distributors, and customers partner with each other to improve the performance of the
entire system, they are participating in a value delivery network.
4. SCM offers the opportunity to capture the synergy of intra and intercompany integration and management.
5. Financing is not a key function that intermediaries play in completing transactions.
6. The supply chain concept originated in marketing discipline.
7. The supply chain management philosophy emerged in 1980s dacade.
8. Inspection, scrap and repair are examples of external costs.
9. Simultaneously achievement of relevant customer metrics is a perfect order.
1. Logistics is an integral part of supply chain management. An emphasis on using the supply chain to deliver
value to customers who are actively involved in product and service specification explanation best
represents outbound logistics.
2. Intangible needs are an output to a single organisation’s transformation process.
3. Procedural is not a flow that moves up and down the supply chain.
4. Systems are not a key element of the operations function.
5. A company’s channel decisions directly affect every marketing decision.
6. Intermediaries play an important role in matching supply and demand.
7. Financing is not a key function that intermediaries play in completing transactions.
8. In marketing terms, we say that the number of intermediary levels indicates the length of a channel.
9. Hybrid marketing systems are also called multichannel distribution systems.
10. Producer is not a typical supply chain member.
11. Customer power is not key attributes of supply chain management.
12. The product/service dev. Function is not a core function of an organization.
13. Lean production involves elimination of all types of waste.

Unit – 4
Digital Payment Systems (e-Payment Systems)
Concept and Forms of Digital Payment System
(I) Concept and Mechanism:
1. Acceptability
2. Convertibility
3. Anonymity
4. Untraceability
5. Flexibility
6. Reliability
7. Efficiency
8. Security
9. Usability
10. Scalability
(II) Forms of Digital Payment System:
1. Electronic Cash Form of Payment System.

2. Electronic Cheque Form of Payment System.
3. Automated Teller Machine (ATM) Form of Payment System.
4. Credit Card and Debit Card Form of Payment System.
5. Smart Card Based Electronic Form of Payment System.
6. Mobile Banking Form of Payment System.
7. Online payment System.
8. RTGS and NEFT Form of Payment System.
1. Electronic Cash (E-Cash) Form of Payment System: the electronic cash or e-cash is a new concept in online
payment systems. It combines computerized accessibility and convenience with security and privacy which
is an improvement on paper cash. It is so versatile that it opens up a host of new markets and widens
application. With some interesting and features, e-cash presents an attractive alternative for payment
even over Internet.
 Properties of E-Cash: to be specific on the point, e-cash must contains the following four properties:
(a) Monetary value,
(b) Inter operability,
(c) Retrievability, and
(d) Security.
 Operationality of E-cash: E-cash is based on cryptographic systems called “digital signatures” which
involves or entails a “pair of key” that work together – one for looking or encoding and the other for
unlocking or decoding. Messages encoded with one key can be decoded with the other key only and not
any other. The encoded key is preserved secret or private while decoding key is made public.
 E-Cash System Mechanism: E-cash is portable. The portability means that it must be freely transferable
between two parties in all forms of e-commerce transaction. In fact, e-cash is an electronic or a digital
form of value storage and value exchange which has limited convertibility into other forms of value and
it requires intermediaries to convert.
2. Electronic Cheque Form of Payment System: Electronic cheque is the second form of electronic tokens
designed to accommodate different individuals and entities preferring to pay on credit or through some
mechanism other than cash. The procedure is that the buyers must register with a third party account
server before writing electronic cheques. The account server also provides a billing service. The registration
procedure varies depending on the particular account server and may require a credit card or a bank
account to give a back up service to the cheques.
3. Automated Teller Machine (ATM) Form of Payment System: ATM performs the most important function of
a bank. It is made up of plastic card replacing cheque and avoiding personal attendance of the customers,
banking hours restrictions and paper-based verifications. ATM is used for electronic fund transfer and as an
electronic fund transfer terminal, ATM is capable of handling cash deposit, transfer between accounts,
balance enquiries, cash withdrawal and pay bills. It may be both online or offline. The online ATM enables
the customer to avail banking facilities from anywhere anytime. The offline ATM facilitates Internet banking
or e-banking which means any user with a personal computer and a browser which enable him to get
connected to his back and/or website to perform any of the virtual banking functions.
4. Credit Cards and Debit Cards Form of Payment System: Credit Card is a post paid card. The credit card
holder is empowered to spend wherever and whenever he intends to buy anything within the limits fixed
by his banks. Credit card is a very popular tool of online purchase payment. Credit card is made of plastic
whose holder is granted a revolving credit limit. The card normally contains cardholder’s name, account
number and many other information encoded on the magnetic strip. As a medium of payment tool, the
Credit Card has been widely accepted by merchants and consumers throughout the world.
5. Smart Card Based Electronic Form of payment System: Smart Cards are getting renewed lease of life as a
mode of online payment. They are essentially credit card sized plastic cards with the memory chips and in
some cases, with microprocessors embedded in them so as to serve as storage devices for much more
information than credit card with in-built transaction processing capability.
6. Mobile Banking Form of Payment System: today’s corporate world being very hectic, it very often becomes
difficult to keep track of everything related to finance and banking. Now through Mobile Banking, one can
access his bank account and carry out transactions through mobile.

7. Online Form of Payment System: Online Marketing means reaching the marketing objectives through the
medium of online networks, computer communications and digital interactive media. It is a form of
marketing which replaces neither traditional marketing nor modern marketing comprising of marketing-
mix.
 Operationality: the process of online marketing involves three market segments which are as
follows:
(i) Cyber buyers
(ii) Cyber consumers
(iii)Cyber surfers
As a viable alternative to traditional payment system, digital payment mechanism need certain
characteristic features, such as, -
 Acceptability
 Convertibility
 Flexibility
 Reliability
 Efficiency
 Security
 Usability
 Salability
Some Operational Differences Between NEFT and RTGS are as follows:
Yardstick NEFT RTGS

1. Settlement Done in batches, a slower process Settled on Real Time basis, a
faster process
2. Full form of Acronym National Electronic Fund Transfer Real Time Gross Settlement
3. Timing through Monday to 8.00 a.m. to 6.30 p.m. 9.00 a.m. to 4.30 p.m.
Friday
4. Timing on Saturdays 8.00 a.m. to 12.30 p.m. 9 a.m. to 1.30 p.m.
5. Minimum limit of money No minimum Minimum ` 2.00 lac
transfer
6. Maximum limit of money No limit No limit
transfer
7. Happening of credit in Happens in the hourly batch Happening Real time between
beneficiary account between banks banks
8. Minimum charges as per Upto 10,000 - ` 2.5 `2 lac to 5 lac - ` 25 – 30
RBI From 10,001 to 1 lac - `5.00 Above 5 lac - ` 50 – 55
From 1 lac to 2 lac - ` 15.00 (Lower charges for 1st half of
Above 2 lac - ` 25.00 day)

Designing of Electronic Payment Systems:
In spite of cost effectiveness and efficiency attainments, the spread of electronic payment systems
were faced with so many hazards or hurdles as are given below:
 Privacy
 Security
 User – friendliness
Requirements of E-payment:
Irrespective of the type of payment mechanism adopted, digital payment mechanisms have to fulfill
certain basic requirements which are pertinent to discuss here as below:
1. Fungibility or Acceptability
2. Convertibility
3. Flexibility
4. Reliability
5. Efficiency
6. Security
7. Confidentiality (Trust)
8. User Friendliness
Success Factors for E-commerce Payment System:
1. Integrity
2. Non-repudiation
3. Authentication
4. Confidentiality
5. Reliability
E-commerce Payment System in Government Sector:
State Bank of India and all other public sector banks, like PNB, UCO bank, UBI, CBI etc. and the leading
private banks, such as – ICICI, HDFC, IDBI, Axis Bank etc. have been authorized by RBI to undertake
Government businesses and those banks are offering the following electronic mode services for transfer of
funds –
1. National Electronic Fund Transfer (NEFT)
2. Real Time Gross Settlement Scheme (RTGS)
3. Electronic Clearance Scheme (ECS)
4. Core Banking Solutions (CBS)

MCQ Statement
1. Smart cards are plastic cards the size of a credit card that contains an embedded chip on which digital
information can be stored.
2. Paisapay is facilitated in eBay.co.in
3. Electronic check is a method of transferring money from one person’s account to another.
4. If you need to transfer money to another person via the internet, then use can use financial cybermediary,
electronic check, electronic bill presentment and payment.
5. A combination of software and information designed to provide security and information for payment is
called digital wallet.
6. Financial electronic data interchange is used in B2B to pay for purchases.
7. Digital cash, electronic cash, E-cash are electronic representation of cash.
8. Trust card is introduced by BSNL and itzcash.
9. PaisaPay is offered only by eBay.in
10. The E-payment mechanism widely used in B2B is E-cheque.
11. Credit card is also known as plastic money.
12. E-cheques are prepaid.
13. Proximity smart card is read only.
14. Contact smart card uses a sim like structure for reading and writing data.
15. Authenticity is A stands in CIA of smart card.
16. Confidentiality is C stands in CIA of smart card.
17. E-banking is also known as Net banking.
18. E-cheque is not an offline payment mode.
19. Cash on delivery is not an online payment mode.
20. E-cheque is an online payment mode.
21. A digital signature is an authentication of an electronic record by tying it uniquely to a key only a sender
knows.
22. The responsibility of a certification authority for digital signature is to authenticate the public keys of
subscribers.
23. Certification of Digital signature by an independent authority is needed because the authority checks and
assures customers that the public key indeed belongs to the business which claims its ownership.
24. One of the problems with using SET protocol is the bank has to keep a database of the public keys of all
customers.
25. In electronic cheque payments developed, it is assumed that most of the transaction will be business to
business.
26. In Electronic cash payment a customer buys several electronic coins which are digitally signed by coin
issuing bank.
27. In Electronic cash payment a customer withdraws “coins” in various denominations signed by the bank,
the bank has a database of issued coins, the bank has a database of spent coins.
28. Digital Cash has characteristics of anonymity, security, confidentiality.

Group – B (2 marks Type Questions):
1. E-cash is not related to security mechanism.

2. Financial cybermediary is an internet based company that makes it easy for one person to pay another
over the internet.
3. Electronic bill presentment and payment permits the transmission of a bill, along with payment of that
bill, to be conducted over the internet.
4. Electronic data interchange is the name for direct computer to computer transfer of transaction
information contained in standard business documents.
5. Public key encryption uses multiple keys. One key is used to encrypt data, while another is used to decrypt
data. The key used to encrypt data is called the public key, while the key used to decrypt data is called the
private key.
6. When a transaction is processes online, use secure electronic transactions can the merchant verify the
customer’s identity.
7. Encryption scrambles the contents of a file so you can’t read it without having the right decryption key.
8. Public key encryption is an encryption system that uses two keys: a public key that everyone can have and
a private key for only the recipient.
9. Security auditing software checks out your computer or network for potential weaknesses.
10. Smart card is better protected than other card using encryption.
11. The presence of microchip make the smart card smart.
12. Integrity is I stands in CIA of smart card.
13. MMID is used to identify mobile money.
14. Wallets is not used as a security mechanism.
15. EPS is backbone of all E-payments in E-commerce.
16. The Secure Electronic Transaction protocol is used for electronic cash payments.
17. In SET protocol a customer encrypts credit card number using his private key.
18. The bank has to have the public keys of all customers in SET protocol as it has to check the digital
signature of customers.
19. In cheque payment protocol, the purchase order form is signed by purchaser using his private key using
his signature hardware.

Unit – 5
Enterprise Resource Planning (ERP)
Importance of ERP: ERP is the acronym of Enterprise Resources Planning, the most important of which is the
Enterprise while Resources and Planning parts of the acronym do not have so much of importance and impact
as Enterprise. It is the Enterprise which combines both Resource and Planning into a single and integrated
software programme based on a single database so as to enabling various departments to share information
and to impart communication with each other.
Steps needed for ERP Implementation:
Before embarking on ERP, the major factors that have to be considered are as follows –
1. Infrastructure Resource Planning
2. Local Area Network (LAN)
3. Department of Server
4. Introducing new PCs
5. Need for adequate training facilities
6. Human Resource Planning
7. ERP Education
8. Commitment to release the right people
9. Top Management’s Commitment
10. Ability and Willingness
11. Reasonably well working Manual Systems
The keys to the successful implementation of ERP are related to –
(a) Securing top management’s commitment for implementation of ERP
(b) Forming cross-functional task forces for linking project management with business units
(c) Carrying an assessment exercise of hardware requirements
(d) Making deployment in a step by step introduction rather than all at once
(e) Starting early planning on user training and support
(f) Streamlining decision making to move implementation quickly.
Advantages of ERP:
Some of the important direct benefits may be as follows:

1. Business Integration
2. Flexibility
3. Better Analysis and Planning Enableness
4. Use of updated Technologies

MCQ Statement
1. The solution for all business made is ERP.

2. ERP stands for Enterprise Resource Planning.
3. Cybersoft is not a component of ERP.
4. Material Requirement Planning (MRP) utilizes software applications for scheduling production processes.
5. The most important step of ERP implementation is gap analysis phase.
6. An enterprise is a group of people with common goal.
7. The traditional business system is called as legacy method.
8. Decision support systems, executive information systems, query/report writing tool is used to produce
reports about data.
9. The elapsed time between placing an order and it receiving it also known as elapsed time.
10. In order to reduce the lead times, the organization should have an efficient integrated inventory system.
11. Customer specific products are also known as make-to-order.
12. Using engineering change control system, business can gain effective control over engineering change
orders.
13. The capacity planning features of most ERP systems offer, both rough cut and detailed capacity planning.
14. The business information has 3 fundamental characteristics.
15. The CRM system consist of 3 components.
16. The blueprint contains models of the redesigned organizational structure.
17. The primary concept of data warehousing is that storing huge amount of data.
18. A data warehouse is a collection of computer based information that is critical to the successful execution
of enterprise initiatives.
19. W.H Inmon is credited as the father of data warehouse concepts.
20. The heart of data warehouse is its current data where the bulk of data resides.
21. The OLAP concept has 12 rules.
22. Financial departments use OLAP for applications such as budgeting, activity based costing and so on.
23. Expand DRP Distribution Requirements Planning.
24. The companies can use supply chain management for critical business process.
25. Executive Committee formulates the long term goals, objectives and strategies regarding the ERP
implementation.
26. Enterprise is group of people with common goal.
27. The traditional information model fails in creating the integrated information environment in business.
28. ERP systems is for entire organization.
29. The cost of ERP depends on the package, depends on available resources and technology used.
30. Flexibility is one of the objectives when selecting a ERP package.
31. A successful training will account for a minimum of 10-15% of the total project.
32. The training is a ongoing process.
33. For ERP implementation, the representatives should select from each department.

1. ERP supports multiple currency value.

2. In enterprise way, entire organization is considered as a system and the departments are its subsystem.
3. Integrated data model approaches reduces data redundancy and provide update information.
4. Database is the process by which different functional areas can work together to design and develop a
product that meets the needs of the customer.
5. The first step in business strategy is assessment.
6. Transforming the workforce will require a array of activities.
7. The discovery model used by the data mining for the creation of information about data.
8. OLAP transforms data warehouse data into strategic information.
9. ERP implementation process has eleven phases.
10. People Soft is strong in HR.
11. The work team normally includes hired consultants and the in-house team.
12. Post implementation is the last phase in ERP implementation life cycle.
13. ERP packages are different architecture and set of functionalities.
14. End-user is the people who will be using the ERP system once it is in place.
15. For training the employees will be divided into groups based on their qualification.

Unit – 6
New Trend’s in E-Commerce
Social Commerce
Backdrop of Social Commerce: With the popularity, acceptance and growth of social media enhanced, social
commerce, as a follow-up action, has been quickly emerged as a new phenomenon. It occurs when customers
show hesitant decision making behaviors at the point of time of purchasing goods and services although most
agreeably decision may be influenced by other people. Social commerce, in such situation, represents a shift in
customers’ thinking from individual decision to collaborative decision. Since the social web provides a
discussion platform for customers, such collaborative decision could be easily facilitated and because of such
discussion platform provided by the social web for customer’s discussion, it can be leveraged by companies to
lean the discussion to their advantage and influence customers’ purchase decision.
Characteristics of Social Commerce:
(a) Social media technology,

(b) Community interaction, and
(c) Commerce activity.
Categories of Social Commerce Platform:
(i) Ecommerce-oriented social commerce,

(ii) Interest-oriented social commerce,
(iii) Social network-oriented social commerce,
(iv) Group buying-oriented social commerce.
Advantages:
1. Cost-related;
2. Social Interaction;
3. Interactivity;
4. Targeted market;
5. Customer service.
Disadvantages:
1. Time intensive;
2. Trademark and copyright issues;
3. Trust, privacy and security issues;

4. User-Generated Content (UGC);
5. Negative feedbacks.
Digital Marketing
Introduction: Simply speaking, digital marketing means the promotion of products or brands through one or
more forms of electronic media. Although it has been around for quite some time but it has not been so far
well-defined. It is easy to say what does it include and what is does not include. If encompasses banner
advertising, Search Engine Optimisation (SEO) and pay per click. Yet, it is very narrow a definition because it
also includes e-mail, RSS, voice broadcast, fax broadcast, blogging, video streams, wireless text message and
instant messaging. It has a very wide scope. On the other hand, it does not include more traditional forms of
marketing, internet marketing or web marketing which are different in name but synonymous in concept.
Despite, why is digital marketing emerging so significantly and so more importantly.
Digital Marketing Plan: Any digital marketing plan is a strategic document which takes the current situation of
a particular organization to set some mid-term goals and to determine the strategy and means to accomplish
them. This strategic document also describes the responsibilities, time frame and control tools for monitoring.
Goal Setting: The criteria for goal setting shall be:

(i) Specific – simple and easy to understand;
(ii) Measurable – by any kind of quantitative or qualitative unit;
(iii) Assignable – can be assigned and implemented by a member of the company.
(iv) Realistic – achievable in a realistic framework.
(v) Time-related – achievable within a definite time-frame.
Search Engine Optimisation (SEO) and Social Media:
For many teams there are different sets of people who work on SEO and social media separately.
However, this scenario is changing lately.
(i) The two may still officially belong to separate teams, but social media marketing will need to be more
informed on the SEO strategist’s agenda so that the SEO strategy may go hand-in-hand with content
promotion.
(ii) SEO strategists too need to know how to work with social media marketers in order to receive the social
signals it needs to make sure that their company ranks high in search.
Content Marketing as a Form of Digital Marketing
Goals of Content Marketing:
(i) Brand awareness

(ii) Lead generation
(iii) Engagement
(iv) Sales
(v) Lead nurturing

(vi) Customer rafeution and loyalty
(vii) Customer evangelism
(viii) Up-selling and cross-selling.
E-mail as a Form of Digital Marketing: As a form of digital marketing, e-mail marketing is an online marketing
technique which uses e-mail to send advertisements or commercial information. This is a communication tool
used to attract new customers to make loyal to the brand. Any e-mail communication is considered as e-mail
marketing if it helps build customer loyalty, trust in a product or company or brand recognition. E-mail
marketing is an efficient way to stay connected with the clients while promoting business. It helps reaching
the target markets easily and quickly without the need for large quantities of print space, television or radio
time or high production costs.
Mobile Marketing as a Form of Digital Marketing: Mobile marketing is marketing on or with a mobile device,
such as a smartphone. Mobile marketing can provide the customers with time and location sensitive,
personalized information which promotes goods, services and ideas. Mobile marketing is similar to advertising
delivered over other electronic channel, such as, graphic and voice messages.
 SMS messaging is currently the most common delivery channel for mobile marketing.
 Search Engine Marketing is the second most common channel, followed by display-based Campaigns.
Advantages of Digital Marketing:
(i) Digital Marketing can make reduction of cost and thus save money and help to stretch marketing budget.
(ii) Digital Marketing can save time and cut steps in the marketing process.
(iii) Digital Marketing provides customers with an alternative option to purchase.
(iv) Digital Marketing removes the time and distance barriers to get ways for stretching business in the
overseas countries.
(v) Digital Marketing is very much information-rich and interactive.
(vi) Digital Marketing removes entry-barriers and offers equal opportunity for access.
(vii) Digital Marketing can be constantly and continuously available because the online information server is
always on the job, twenty four hours a day and 365 days a year.
E-commerce to Foster Transaction Relationship in Digital Marketing:
(i) Business to Business (B2B)

(ii) Business to Consumer (B2C)
(iii) Business to Employee (B2E)
(iv) Government to Consumer (G2C)
(v) Consumer to Consumer (C2C)

MCQ Statement
1. The concept of social commerce who first initiated in November, 2005.

2. Social network includes facebook, twitter.
3. Social commerce is the e-commerce concept of word-of-mouth.
4. Social commerce on discussion platform is the interaction of buyer, seller and community.
5. SEO stands for Search Engine Optimisation.
6. The full form of ROI is Return On Investment.
7. The best way to promote a business with social media is offer a lot of helpful and free information.
8. Social medial is a mass media.
9. The goal of social commerce is to increase traffic, brand equity, customer engagement.
10. Social commerce help brands to expand their relations with customers so as to maintain trust, familiarity,
relationships.
1. The sell goal of a business-to-business website involves an interactive dialogue with a virtual sales person.
2. The speak goal of a business-to-business website involves gaining permission from a website visitor to
engage in future dialogue by e-mail and other communication channels.
3. Business-to-business (B2B) e-commerce involves commercial transactions between an organization and
other organizations (inter-organisational marketing).
4. Youtube brand channel is an example of business-to-business services offered by Google which gains
advertising revenue through hosted videos.
5. A portal which is an online platform operated by a third party and is open to buyers or sellers in a
particular industry is a B2B independent e-marketplace.
6. Raw materials is production related procurement.
7. The west way to improve search engine ranking is with a blog.
8. Timeline is the latest major change in functionality added to facebook.
9. Rackspace is the Hosting Company that is used for all external consumer facing sites.
10. Sitecore is the new content management tool for SWEET.

(BUSINESS COMMUNICATION)
UNIT – 1
INTRODUCTION
Communication:
In Common Sense, Communication is a kind of bridge that fills the gap between two persons. In other words its
simply means sharing the ideas, views knowledge, feeling etc. between two or more persons.
Features of Communication:
Communication tries to minimize the gap between the persons and it helps the human being to come closer to
each other.
1. Two Persons:- There must be at least two persons for the completion of communication, since no single individual
can exchange the ideas with himself, there must be at least two persons one is known as sender and other is
receiver.
2. Exchange of Ideas:- Communication cannot be thought of it there are no ideas, feelings, informations to share
between two persons.
3. Mutual Understanding:- There must be a good mutual understanding between sender & receiver that mean
receiver should understand the message in the same spirit as it is given by sender.
4. Direct & Indirect Communication:- A communication may be direct or indirect that mean it is not necessary that
both sender and receiver will be there face to face, it may also be through indirect sources.
5. Continuous Process:- Communication is a continuous process since it never ends it continues throughout the life, as
soon as the people leave they communicate.
6. Use of Words, Symbols etc:- There are many ways to share the ideas, message, views from one person to another
person, it may be through words spoken, written or through symbols.

Business Communication:-
The word business communication consists of two different words having its own specific meaning so in total we
can say business communication is the process whereby the various informations, views, messages related to business
organisation are being shared from one business house to another.
Features of Business Communication:

The features of business communication are as follows:
a) Practical: Effective business communication deals with the practical aspects of information explain why, how,
when and the like quarries. It bypasses impractical, imaginary, unnecessary or repetitive information to
eliminate waste of time. It conveys important information to the receiver.
b) Existence of two or more person: There must be at least two persons to complete the communication process.
It is an exchange facts, ideas, messages, opinions and information by one person to the in the business world.
Here one person is known as sender and the other as receiver.
c) Factual: Usually, a business communication includes facts and figures in place of overall idea. Important date,
place, time and information should clearly mention in the message.
d) Clear and Brief: The language used in the message should be clear, brief and lucid. It must be freed from
ambiguity. Sometimes charts, diagrams, symbols and figures are used to clarify the information contained in the
message.
e) One way/Two ways process: Business communication may be one way or two ways process. In the one way
communication process the sender conveys the information and the receiver received that message. While in
two ways process the sender and receiver interchanging their views and information.
Elements of Communication OR Process of Communication:-

Communication may be defined as exchange of ideas, views, message between or among the different persons.
It helps to bring together persons staying apart.
A communication gets completed through following process:-

1. Sender:- As we know communication is a two way process hence there are two persons individual in a complete
communication. The person who intends to convey the message is known as Sender.
2. Idea or Message:- Every Sender needs some message or ideas to pass it. Message is the subject matter of
communication. It is a kind of thought that processes in our mind. It may be thought, feeling, ideas, views etc.

3. Encoding:- Since Subject matter of communication is theoritical or intangible hence passing of message requires
conversion of such message into certain symbols or words. Hence the conversion of subject matter into words,
action, pictures etc is known as encoding.
4. Communication Channel:- The person who is interested in communication chooses the suitable channel of
communication through which he or she wants to communicate. Generally there are many channels of
communication but sender always prefers that channel which suits the interest of both persons.
5. Receiver:- Receiver is the person who receives the message or symbols as sent by sender. He or She tries in a
best possible manner to understand the message as given by Sender.
6. Decoding:- It is the process of breaking the message or understanding the message in such way so that meaning
of message should be exactly as sent by sender.
7. Feed Back:- Feedback is the process to give reply or response to the sender that receiver has received the
message. Feedback may be positive or negative.
Different model of communication:

The different models of communication are explained below:
(i) Rhetorical Model: Under this model, the speaker draws the attention of the audience and tries to convey
his/her speech to them. The prophet of this model is a Greek Philosopher Aristotle who presented this nearly
2300 years ago. This model has five elements – the speaker, the message, the audience, the occasion and the
effect. His advice the speaker to prepare their message for the audience.
(ii) Propagandistic Model: The principles of this model are to convey informal to all. Usually, few rules and
principles are conveyed through this method. This method is generally used by the business concern or religious
institution to communication information to their followers.
(iii) Negotiable Method: Under this method the negotiator establishes the message by discussion for
communication and influencing his/her subordinates. This method is generally used for labour management or
for establishment of international relationship and legal process.
(iv) Communication Model: The latest development in the field of communication is the communication model.
With the help of this model the senders can transmit the information and message to their subordinate or
audience through the communication process. Feedback system may introduce to judge the effectiveness of the
communication. Due to that reason, this model is accepted in most of the area.
(v) Attention – Interest – Desire – Action (AIDA) Model: The founder of this model is Strong. The interest of the
recipient of information and messages arises out of the attention and desires of him/her arises out of his/her
interest. Finally the ultimate action arises out of the desires of the person. Under this model the sender used
various model for transmitting their message to the recipient.

(vi) The Mathematical Theory of Communication Model: The founder of this model is Claude F. Shannon and
Warren Weaver. The model was made by them in the year 1947 but published in 1949. This model analyses the
process of communication of message and put emphasis on the accurate transmission. It consists of four
elements: (a) Source of information, (b) Transmitter or sender who sends a message though signal, (c) Receiver
who received and decode the signal, and (d) Destination i.e. where the message to be send.
Forms of Business Communication:-

Business Communication
Internal External
Upward Face to Face
Downward Written
Horizontal/ Lateral By Phone
By E-mail
Social Networking Services
Internal: - When the communication takes place among the various staffs of the organisations inside the business house
regarding the concerns of the employees, such communication is known as Internal Communication.
Types of Internal:-
1. Upward:- It refers to type of communication where the informations flows from lower level to level that mean the
information must originate at the bottom level and move towards top level.
2. Downward: - It refers to type of the communication where the information flows from top level to lower level.
Generally the informations that flow contain instructions, policies, objectives, mission etc.
3. Horizontal: - In this type of communication, the communication takes place between the people of same rank in
the organisation. Generally the basic purpose of horizontal communication is to share the knowledge between or
among each other and to achieve common goal.
External: When the communication takes place with the external parties of the organisation where business related
informations are passed to the persons staying outside the business, such communication is known as External
Communications.
1. Face to Face:- It is the oldest & the best way of communication where the physical attendance of both the parties are
required for the flow of information under this form. There is better understanding & less misunderstanding.

2. Written:- Under this type of Communication the flow of information takes place through written means such as
letters, leaflets, banners, posters etc. the basic disadvantage of written message it increases the cost of
communication.
3. Phone: - When communication is done through the phone then the sender or receiver do not have to meet physically
but, the very common disadvantage of telephonic communication is the technical problem which leads to loss of
message.
4. Email: - E-mail refers to the electronic mail. It is a kind of written communication but through electronic means. It can
be considered as the fastest way of communication but it also have technical difficulties.
5. Social Networking Sites: - It refers to those services through which people get connected to the society. It can be also
considered as the easiest means to get connected with the external parties.
Principle of Effective Communication: - Only Communication does not serve the actual purpose because
Communication must be effective, since the effective communication is the part and parcel of any business organisation.
An effective Communication must have following principle features:-
1. Clarity of Purpose: - The message to be delivered must be clear in the mind of sender that mean a sender must know
the purpose of communication.
2. Completeness: - The message of Communication must be concise that mean the unnecessary words all details should
be avoided the best message always have maximum information with minimum words.
3. Conciseness: - The message delivered must be concise that mean the unnecessary words all details should be
avoided the best message always have maximum information with minimum words.
4. Feedback: - The sign of effective communication is the proper feedback. Feedback has a big implication in the world
of communication, since it indicates the receiver has received the message in the same sense and in the same time. A
good feedback must always be specific.
5. Empathy: - Empathy is a situation when a sender or speaker put himself into the shoes of listener that mean to be
sensitive to the needs of listener. A sender must understand the feeling or emotions of listener while communicating
to him.
6. Multiple Channels: - A Communication to be effective must be done using various channels that mean a sender must
be dynamic to adopt the changes.
Barriers of Communication:-
There are many restrictions or compliments due to which message as send by sender does not reach infact. The barriers
to the communication can be classified into following broad categories:-
1. Organisational Barriers.
2. Individual Barriers.
3. Semantic Barriers.
4. Other Barriers.

1. Organisational Barriers: - It refers to all those restrictions or problems which arises inside the organisation & effects
the effective communication. Organisational barriers may be classified into two types:-
(i) Negative Climate in the work place.
(ii) Absence of Communication Policy.
2. Individual Barriers: - It refers to those barriers which we created by either sender or receiver. It may be of following
types.
a) Difference in Personalities: - The mismatch of personality also acts as barriers to the communication since each
individual have different personality.
b) Perception: - Perception is the unique way of understanding the message. Due to difference perception
effective communication.
c) Fear: - Fear of attack, criticism & insult also turns out as barriers to the communication.
d) In Attention: - When receiver do not attend the sender in a full fledge manner than also Communication is not
effective.
3. Semantic: - A common barriers to each & every Communication is the language problem that mean when same
subject matter have the different words or different meaning due to language difference. This is known as Semantic
Problem.
4. Other Barriers: - Apart from above problem there are many barriers which reduces the effective Communication
Such as:-
a) Over loaded information: - Too much information at a time does not created effective communication, Since
the receiver develops a monotonous attitude.
b) Faulty or Incomplete Expressions: - It message is not properly or effectively communicated or expressed then it
creates a barriers to the Communication.
Measures to Overcome the Communication Barriers

The barriers of Communication stop the free and smooth flow of message from sender to receiver. Hence, it is necessary
to remove the barriers of communication.
The barriers of communication can be removed as follows:-

1. Clarify ideas before Communication: - The Person sending the message should be clear in his mind about what he
wants to say. He should know the objective of his message of the time of Communication.
2. Communicate according to the need of the Receiver: - The sender must pass only those informations which are
relevant by the receiver that mean the level of understanding and ability of receiver should be understood.
3. Consult others before Communication: - Others must be consulted at the time of planning the communication. Its
main advantage will be that the ideas of others will contribute towards the effective Communication.
4. Beware of Language, tone & Continent: - The sender must be aware of the language since the fact of message
should be framed in clear and beautiful language. The tone of message must not also attack the feelings of the
receiver. The continent of message should not be overloaded by technical words.

5. Ensure proper feedback: - The feedback must be ensured in all sort of Communication in case of face to face
communication the feedback can be obtained from the reaction of receiver. It helps to improve the better future
communication.
6. Be a good listener: - Both sender & receiver should be good listeners. Both should be ready to listen to each other
with positive attitude, patience and open up mentality.
Remedial measures to remove the barriers in communication:

The following measures or means may be adopted to remove the barriers to communication:
a) Clear policy of the organization: Clear policy of the organization helps to built up good communication. All
incoming information are to be edited and clearly explained to all the concerned of the organization.
b) Be Aware of language, tone and content of message: The sender should take off that the language of the
message should lucid, understandable and free from ambiguity. The tone of the message should never been
hurt the feeling of the recipient of the message. So far as the contents of the message should be brief and
excessive use of technical words should be avoided.
c) Consistency of the message: The information sent through the message should not be self contradictory. It
should be in accordance with the objectives, policies, programmes, techniques and strategy of the organization.
If some time a new message is sent to replace the old one, the changes if any should be clearly mentioned
otherwise it will create confusion.
d) To receive feedback: Feedback is to be received from the recipient of the message to make clear that whether
they can understand the meaning of the message or not. In the face-to-face communication, the reaction on the
face of the recipient can be understood. But in the case of written communication or others some proper
suitable method should have to be adopted by the sender.
e) Be a good listener: Good listening habits of the listeners can remove the personal and perpetual barriers. Both
of the receiver and sender should listen each other’s points of view with attention, patience and positive
attitude.
Characteristics of Conflicts:
The characteristics of conflicts are stated below:
a) Conflict does not appear. Conflict emerges.
b) Conflict is like a virus when it appears it begins to spread like crazy.
c) Conflicts are insensible by differing values.
d) Conflict is energized through opposing interests.
e) Conflict is fueled by poor communications.
f) Conflict boost up when trust breaks down.
g) Conflict is decomposed by incompatible goals.
h) Conflicts are encouraged by differing personalities.
i) Conflict is not breakdown in communication but a process that is ongoing. The communication is not like a car
that can break or cease to function. It entails communication about disagreement.
j) Conflict inherently involves some sense of struggle or incompatibility or perceived difference among values,
goals, or desires.

Difference between Inter Group Conflict and Intra Group Conflict:

Basis Inter Group Conflict Intra Group Conflict
a) Definition Inter group conflict refers to the conflict Intra group conflict refers to the conflict that
that arise between the various members arise between the various members of a group
of a group due to disagreement and due to disagreement and misconception.
misconception.
b) Causes It arise due to diversity, incompatible goal, It arise due to lack of security, misuse of
poor communication and lack power, loss of status etc.
dependability.
c) Effects It affects organizational objectives. It affects objectives first.
d) Overcome It can be controlled through proper It can be controlled through proper evaluation
planning, co-operation, co-ordination etc. method, review technique, proper tactics etc.
“Feedback is the essence of Communication”:

The feedback is the essential component of communication because the ultimate success or failure of the
communication depends on the feedback. These are explained below:
(i) Completion of the communication: Under two ways communication it is essential to receive feedback
from the receiver. Through the feedback the sender can understand the attitude of the receiver.
(ii) Measuring the effectiveness of the communication: Through the feedback the sender can ensure the
effectiveness of his communication. By means of feedback the sender can be sure that the receiver has
received the message and understood the meaning of the message.
(iii) Understanding the receiver’s view: By means of feedback the sender could understood the views and
opinion of the receiver about his message. On the basis of this understanding the sender can plan his
next course of action.
(iv) Measuring the appropriateness of the channels of communication: Message can be conveys by the
sender by using various channels of communication. Improper channel fails to convey the information
of the receiver. Thus the receiving of message by the receiver and their feedback in return prove that
the channel selected for transmission of message is proper and justified.
(v) Collection of information: By means of one way communication the sender can only conveys
information. But if the sender wants to gather information, he must demand feedback. This can be
possible only through two ways communication.
(vi) Making proper decision: The receiver’s of message sent their opinion by means of feedback to the
sender. Now, the sender can make proper decision by considering the opinion of the receiver. Opinion
of the receiver can helps to improve the quality of the sender’s decision.

Unit – 2
Types of Communication
Communication
Formal Communication Informal Communication
Formal Communication: - The Formal Communication is the exchange of official information that flows
along the different levels on the basis organizational hierarchy, authority and accountability and conforms to
the prescribed professional rules, policy, standards, processes and regulations of the organization.
Features of Formal Communication:-

1) Oral or Written: - Formal Communication may be written or oral. It will be written in case of policy's matters of the
business & in case of daily routine works matters are handled through oral communication.
2) Formal Relation: - The formal relation is required in order to have the proper formal communication that mean all
employees must have some sort of relationships among each other so that a systematic flow of information must be
there.
3) Prescribed Path: - In case of formal Communication the path of communication is predecided whereby the flow path
of communication is fixed because the definite channel is required for the movement of message.
4) Organisational Message: - The messages that are exchanged in case of formal communication are totally
organisational. No element of personal touch is found in case of formal communication.
5) Deliberate Effort: - In case of formal communication channel of communication is not automatically created rather
it is created through the efforts of managers.
6) Rumours: - In case of fomal communication information flows in a systematic manner following some rules &
regulations, hence there is no scope for the false information to flow.
Advantages of Formal Communication:-

1. Increase overall efficiency: This type of communication is generally follows well defined rules and
regulation and chain of command. So, it can increase the overall efficiency of the organization.
2. Easy Communication System: The top level is generally communicates with their employees for conveying
their direction and order by using formal downward communication system. Again the employees
communicate with their higher authority to use this system. It is very much easy to communicate with
each other.

3. Less Chance of Misunderstanding: Since formal communication is always written, so there is less
possibility of ambiguity and misunderstanding.
4. Develop Relationship: It helps to develop intimate relationship between the immediate boss and his
subordinates.
5. Permanent Record: The copy of this type of communication is always preserved in the file and it is used as
reference. As a result, it is easy to seek the copy of it if necessary.
6. Ease of delegation of authority: Authority is delegated by the superiors to the subordinates by the help of
formal communication.
Disadvantages of Formal Communication:-

1) Time Consuming and Expensive: It is a time consuming and expensive method of communication because the
message has to travel various level before it reach to the receivers.
2) More Workload: It increases the workload of every manager because all the communication has to pass through
them.
3) Lack of Initiative: Under this communication system everybody does their duty by following specific predetermined
system. So it makes the obstacle to develop the creativeness of the employee.
4) Lack of Cordiality: In this communication system the subordinate staffs strictly follow the order of superior authority.
So the implementer of the order does not obey their duty properly.
5) Less Effective: It is less effective where personal guidance and counseling is needed.
6) Not suitable in case of emergency: It is not suitable at the time of emergency, because it hinders the normal flow of
information.
Informal Communication: - According to Bovee and his associates, “Informal communication is the flow of
information without regard for the formal organizational structure, hierarchical or reporting relationship.” So,
grapevine or informal communication is the process of spontaneous exchange of information between two or
more person at different status without following any formal relationship and chain of command in the
organizational structure. It may overlaps routes, levels and positions. It is direct, spontaneous, flexible and
unofficial in nature. It arises due to the personal need of the members of the organization.
Features of Informal Communication:-

1) Unofficial Channel of Communication: As it doesn’t follow any structured route or channel, so it is an
unofficial channel of communication.
2) Not controlled by the management: It is not controlled by the management but manage by the employee
themselves. It takes the form of gossip. It may be true or rumors.
3) More reliable information: Almost all employee perceives and belief that the flow of information through
grapevine is more reliable than the information received through formal communication channel. Although
it sometimes provide false information.
4) Flexible: It is more flexible communication because it is free from all type of formalities.

5) Rapid Communication: It is direct and transmits very fast. Especially the grapevine or rumors spread very
fast among the employee in the organization.
6) Distortion of the meaning: Something the meaning and the subject matter of the information is distorted
in his system.
Advantages of Informal Communication:

1) Free from distortion: It is almost free form distortion. It tries fill up the gaps of formal communication.
2) Fast Communication: The greatest feature of this kind of communication is that it transmits information at
tremendous high speed and it is very much suitable at the time of emergency.
3) Fulfils Social Needs: It meets social needs of the members of the organization and results in a sense of
belonging among them. It provides immense psychological satisfaction to them and strengthens the
solidarity of the workers.
4) Spontaneous Efforts: It is direct, spontaneous, flexible, dynamic and varied in nature.
5) Provision for freedom: It provides an opportunity to the workers for their expression against fear,
grievances and doubt. As a result new ideas, suggestions and opinions may come out.
6) Fulfillments of Organizational Objectives: It helps to achieve the organizational objectives by overcoming
the limitations of formal communication.
Disadvantages of Informal Communication:

1) No Authenticity: In many occasion it proves to be irresponsible, ill-informed and gossiping in nature.
Sometimes it takes the shapes of rumors.
2) May have Negative Effect: If it opposes the policies of the organization and changes of management then it
becomes impossible to implement such in the organization.
3) Maintenance of Secrecy: It almost fails to maintain secrecy. Any secret matter is likely to be flashed
without any problem or hesitation because there is no proper rules and restriction.
4) Incomplete flow of information: Generally information release from this sort of communication process is
incomplete and unauthentic. There is ample chance of misunderstanding and misinterpretation.
5) Lack of resistance: It does not follow any official or prescribed rules, formalities and chain of command in
the organizational structure. It is beyond any control. Organization has no mechanism to resist its
movement.
6) Misunderstanding: Lack of order, decency, conduct, decorum and rules result disorder, misunderstanding
and confusion in informal or grapevine communication. Thus, it creates conflicts among the workers.
7) Rumors: Mostly informal communication fabricated the main facts and represents the rosy picture for
circulation. This mainly destroyed the working atmosphere of the organization.

Distinguish between Formal Communication and Informal Communication:

Points of Difference Formal Communication Informal Communication
1. Definition The formal communication is the Informal communication is the flow of
exchanged of official information that information without regard for the
flows along the different levels on the formal organizational structure,
basis organizational hierarchy. hierarchical or reporting relationship.
2. Form It follows the chain of command in It is direct and transmits very fast. It
any structured organization. takes the form of gossip and
exchange of passion.
3. Nature It is an impersonal and official Informal communication is personal
communication. It is a source of and unofficial in nature. It is a socio-
tension in many cases. psychological in nature.
4. Authenticity It is most authentic, because it follows It is less authentic as it spread in a
the official scalar chain. grapevine manner.
5. Speed It is very slow. The speed of this type It is very fast. It spread like a
of communication depends on the epidemic.
length of the scalar chain.
6. Responsibility for As the source of information is As the source of information is
communication known, so it is easy to assign untraceable, so it is difficult to assign
responsibility of communication upon responsibility upon any individual.
the individual.
Distinguish between Written Communication and Verbal Communication:

Points of Difference Written Communication Verbal Communication
1. Definition A written communication refers to When messages or information
such kind of communication where communicated of exchanged with the
messages, orders, instructions etc. are words of mouth them it is called as
send through written form. verbal communication.
2. How it is It is with the help of text. It is with the helps of word of mouth.
3. Nature of contract It fails to create direct contact It facilitates close and direct contact
between the sender and receiver between the sender and receiver.
feedback.
4. Proof Proper records of communication are No record of communication is there.
present.
5. Feedback In this case much time is needed to In this case much less time is needed
receive feedback. to receive feedback.
6. Media of Letter, Circular, Manual, Report, Face-to-Face Talk, Speech, Lecture,
Communication Telegram, Office, Emo, Bulletin, Interview, Meeting, Telephonic Talk,
Journal, Magazine, E-mail, Fax, Video Conference, etc.
Internet, etc.
Distinguish between Downward Communication and Upward Communication:

Points of Difference Downward Communication Upward Communication
1. Definition Downward communication refers to Upward communication process
the flow of information and message where the flow of information,
which flow down through the suggestions, complaints and
organization’ formal chain of grievances are sending from the
command or hierarchical structure. subordinate to the superior.
2. Flow of Under this case information flows Under this case the feedback flows
Communication from top level of bottom level or from from subordinate to superior from
superior to subordinate. bottom level to top level.
3. Speed Speed flow of information is very fast. The speed flow of information is slow.
4. Nature Authoritative and directive in nature. Participative and appellative in
nature.
5. Purpose To give, orders, instructions, advice or To make complaints or appeal, give
assign responsibilities. feedback or suffusions.
6. Means of Communication is made through Communication can be made both
Communication formal ways like Circular, Notices. formal and informal ways like Report,
Direct letter and proposals.
Distinguish between Horizontal Communication and Vertical Communication:

Points of Difference Horizontal Communication Vertical Communication
1. Definition Horizontal communication refers to Vertical communication refers to such
such communication that is taken communication that is taken place
place between persons operating at between the superior and
the same level and under the same subordinates.
superior.
2. Flow of Flow of information between the Flow of information between the
Communication persons holding the same rank and superior and subordinate and vice
position or flow of information within versa or between the top level of
the same level of management. management and lower level of
management.
3. Purpose The purpose of this type of The purpose of this type of
communication is to co-ordinate the communication is to give advices,
activities of various departments and orders, instructions and directives to

division of the organization. the subordinate in the downward
direction and receiving feedback,
opinion and suggestion from the
subordination in the upward
direction.
4. Degree of formality This kind communication enjoys This kind of communication is more
greater degree of informality. formal over horizontal
communication.
5. Mode of Mostly done verbally. Mostly done through written media.
communication
6. Possibility of The message of this kind of The message of this kind of
Distortion communication is free from communication may be distorted.
distortion.

Unit – 3
Tools of Communication
Introduction:
In Now-a-days, the advancement of technology has resulted into the transfer of message to all corners of the world or to
any destinations just with a single touch. There are many modern tools of Communication in now-a-days whether the
business house is small or large.
Some of the modern tools are:

(i) Fax (Facsimile)
(ii) E-mail
(iii) Video-Conferencing
(i) Fax: - It refers to the modern tool of communication whereby the sender of fax message prepares the copy on a
sheet. Generally no larger than A4 Size which can be fed into the machines. He dials the destination number gets the
fax tone and feeds the message into machines. The receiver receives the message in the same form.
Features of Fax:
1) Device of transmission: It is consider as the latest device for transmitting diagram, message, circulars, etc.
2) Two inter-related telephone: It is connected with two inter-related telephone line.
3) Fast Transmission: It is the most quest mode of transmitting message and information from one place to another
place instantly. As such, the cost of transmission and reception decline.
4) Tools for exchange information and message: It is the device that helps to send information and message both
internally or outside the organization.
5) Written communication: As through FAX only written materials are transmitted, so it is a tool of written
communication.
6) Memory: The machine can store the message in the memory, if there is proper device connected with for printing
the page.

Advantages of FAX:
1) Speedy transmission: Sketch, diagram, message in type form and information can be transmitted at
exceptionally high speed. Important decisions and instructions can be quickly conveyed to the branches
and other offices.
2) Less costly: It can provide written and permanent document at least cost.
3) Accurate transmission: It can transmit information, message, etc. same to same from one place to another
in the form of telegraph. The receiving machine decrypts the signals and uses its in-built printer to produce
an exact photocopy of the matters transmitted.
4) Overcoming time zone barriers: As it facilitates to have hard copy of the document, so it can able to
remove the time zone barriers easily.
5) Feedback of the message: It can ensure feedback of the message easily within a short period of time.
6) Virus free: It is virus free process of transmitting information from one place to another through
telephonic lines.
Disadvantages of FAX:
1) Costly Device: It is a costly device. It has incremental cost once a concern has paid the fees for access.
2) Poor Quality of Outcome: Sometimes receive copy is not clear and makes it too difficult to read the
message.
3) Space Constraint: FAX machine needs telephone line, papers power and separate space for itself and
printer.
4) Non-changeability of message: It is quite impossible to change the message which has already been
transmitted.
5) Absence of Privacy: Letter sent through FAX suffers from lack of privacy. So, it can be used only for those
documents which are not confidential.
(ii) E-Mail: - E-mail stands for electronic mail through which the written messages along with few small media
could be sent from Sender to Receiver. There are many ISP (Internet Service Providers) who allows to
create e-mail id for free. Both the sender & receiver need an e-mail id to communicate under this modern
tool of communication. E-mail addresses are often found in lower case. The format of a typical e-mail id is
[email protected]

Features of E-mail:
1) Modern means of communication: It is a modern means of communication through computer network.
2) Speedy Transmission: It can send message instantly from one computer to another in any part of the
world.
3) Medium of sending information: It used to send messages, pictures and data files from one computer to
another electronically over computer network.
4) Remittance of written message: It can send only written message between individuals or groups of
individuals.
5) Paper free network: For sending message it does not use any paper. Thus, it is environment-friendly and it
can save lot of trees from being cut down.
6) Gift of internet: It is a gift of internet. Because without using internet we can’t send message from one
computer to another.
Importance of E-mail in Modern Business:

a) High Speed: It is a very fast mode of communication. It can convey the information and message
instantly at any part of the globe.
b) Paper free network: For conveying information and message it doesn’t require any paper. Thus, it is
environment-friendly and can save lot of trees from cut down.
c) Time Saving: It can save time by transmitting the information with the help of internet.
d) Attachment of files: The features of attachment in the e-mail allow users to send huge data in the
form of folder.
e) Remittance of written message: It can send only written message between individuals or groups of
individuals.
Advantages of E-mail:
a) Speed: It can transmit the message very fast to anywhere. There are almost no time gaps between
transmitting the message and its receipts through internet.
b) Less Costly: It costs very little for sending message to far off countries. It turns to be cheaper
alternative to telephone conversion.
c) Efficiency: It can increase the efficiency of the organization by making neat, prompt And timely
communication.
d) Flexibility: It provides flexibility in the sense that hardware and software used for e-mail are also used
for other purpose.
e) Future Reference: Important e-mail can be preserve for future reference either in floppy disk or in the
hard disk of the computer.

f) 0Easy to operate: Sending of e-mail through computer network is a very task. Anybody with a
preliminary knowledge of computer technology can able to compose and convey the same to the
desire destination.
Disadvantages of E-mail:-
(i) Security Problems: There is no guarantee of privacy of this system. Hackers can make an access to
one’s e-mail unless it is in coded form. For that reason many concern restrict the access to the e-mail
and to the internet because of security risk and possibilities of abuse.
(ii) Regular Checking: The efficiency of this system depends on the regularity of the user’s in checking e-
mail. It is not possible to know, when the recipients checks the mail. It could lies in the mail box for
days if the recipients don’t check the mail.
(iii) Personal Work: During office hours personal e-mail may also sent and the employee may check and
read it. This will in turn goes against the interest of the organization by way of increasing cost and
wastage of time.
(iv) Restricted Use: It can be used by only those who have computers or android phone.
(v) Dependent on telephone connection: If for any reasons if telephone connection is interrupted than it
is not possible to sent e-mail because of non availability of internet service.
(vi) One way system of communication: It is one way system of communication. It does not permit the
interaction as a telephone link does.
Video - Conferencing: - It is one of the modern tools of communication with audio-visual impact under
video conferencing one can hear or see others even without being close to them that mean various people
staying at different places can be connected together at the same time. It needs expensive electronic gadgets.
Generally it is used when variety of opinion is required at the same time on the same subject matter.
Advantages of Video Conferencing:

(i) Provision for Face to Face Conversion: It enable different people within the country or abroad to carry
on face to face conversion.
(ii) Reduction of Travel Cost: The biggest advantage of video conferencing is that you can reduce vastly
the travel cost. Because people can hold meeting and carry on discussion without the expense of
travel.
(iii) Time and Improved Productivity: Travelling not only involves fiscal cost but also takes time. Whilst you
may be able to use some of that time productivity, much of it will be lost. One advantage of video
conferencing is that you regain that time as you can set up conferences instantly and enriches
communication.

(iv) Better and friendly mode of communication: Its equipments are sophisticated, faster and more user
friendly.
(v) Reduced carbon footprint: Using video conferencing instead of travelling helps you to reduce your
carbon footprint and demonstrates your own green credentials.
(vi) Building Relationship: It helps people to feel connected and goes a long way in building relationship,
exchange of ideas and culture.
Disadvantages of Video Conferencing:

(i) Too Costly: It involved huge cost on built up virtual lab on each location. Thus, technologically and
economically it is not suitable for small and medium concern.
(ii) Problems of technical complexity: It is not widely accepted due to its technical complexity. It requires
merging of various complex technologies and techniques that allow systems to talk each other and
enable them to viewing each other. But this can be interrupted suddenly due to link failure.
(iii) Feeling Uncomfortable: Many people feel uncomfortable with video conferencing because they are
unable to use the idea of viewing by video transmission.
(iv) More Impersonal: Video conferencing can be less personal than meeting face to face, yes, and it can
be possible to miss out on vital body language when you’re struggling with a pixilated image or
stuttering video.
(v) Impossible in case of brain storming: It cannot replace face to face communication particularly when
brain storming, negotiation and persuasion are needed.
(vi) Problem of Monopoly: As there is less number of supplier of this technology, so there is greater
possibility of creation of monopoly in such tool of communication.
Features of Video Conferencing:

(i) Sophisticated Tools: It is a modern and sophisticated tool of communication.
(ii) No provision for face to face presence: No face to face presence is required for teleconference,
meetings and discussions.
(iii) No travelling is required for attending meeting: Participants can ask questions and get answers
without travelling long distance to attend the meeting.
(iv) Useful recording and Play back: Video Conference meetings allow users to record the whole content
of video conference, which will be very beneficial to staff training and online learning.
(v) Special Hardware and Software: Special hardware, and telephonic line with internet connection are
required for teleconference/video conference.
(vi) Digital web camera: Digital web cameras are required to make conferencing picture in video
conference.

Unit – 4
Drafting
Notice for Annual General Meeting with Agenda:

With due respect this is to informed you that the 22nd annual general meeting of the shareholders of the
company will be held on Friday, 21st April, 2017 at the registered office of the company at 4 p.m. to transact
the business mentioned in the agenda annexed herewith. Your presence is highly solicited. Proxy form has also
been annexed along with this notice to enable the members to appoint proxy in case of their absenteeism if
any.
The registrar of members and Share Transfer Books of the company will remain closed from 14 th December,
2017 to 21st December, 2017, both days inclusive.
AGENDA
1. The secretary read the notice convening the meeting.

2. Read apologies for absence, (if any).
3. Confirmation of the minutes of the last Annual General Meeting.
4. Presentation of audited Accounts for the year ended 31st March, 2017.
5. Review the progress of the company and indicate the possibilities of future expansion.
6. Confirmation of the Director’s Report.
7. Declaration of dividend for the financial year 2016-17.
8. Reappointment of Mr. S.K. Suri for the next term who retired by rotation on 31.3.2017.
9. Appointment of M.K.Bagchi as director in place of A.K.Jalan who retired on 31.3.2017 by rotation.
10. Appointment of Sen & Associate as an Auditor of the company for the financial year 2017-18 and fixing
up their remuneration.
11. Miscellaneous, if any.
12. Vote for thanks to the chair.

Notice of the 23 rd Board Meeting of the Company:
This is to notify that the 23rd Board Meeting of the company will be held on Friday, 11th January, 2019 at the
registered office of the company at 4p.m. to transact the business mentioned in the agenda annexed
herewith. Your presence is highly solicited.
AGENDA
1. Confirmation of the minutes of the last board meeting.

2. Consider the matters arising out of the last minutes, their verification and adoption.
3. Consider the application for transfer of share.
4. Recommendation of interim dividend and final dividend.
5. Consider the application of transfer of shares.
6. Consideration of opening a new branch at New Delhi.
7. Redemption of debentures, if any.
8. Fix the date of next board meeting.
10. Vote of thanks to the chair.
Notice of the 1 st Board Meeting of the Company:
This is to notify that the First Board Meeting of the Company will be held on Monday, 11 th January,
2019 at the registered office of the company at 4p.m. to transact the business mentioned in the agenda
annexed herewith. Your presence is highly solicited.
AGENDA
1. Election of chairperson of the company.

2. Production of certificate of incorporation of the company.
3. Adoption of the common seal of the company.
4. Appointment of the Managing Director.
5. Appoint of the directors.
6. Appointment of the secretary.
7. Appointment of the banker.
8. Appointment of the auditor.
9. Fixation of the date of the next board meeting.
11. Vote of thanks to the chair.

Minutes of the Annual General Meeting of the Company:

Minutes of the 22nd Annual General Meeting of Sunflower Ltd. held on Wednesday, 19 th April, 2018 at 4
p.m. at the registered office of the company.
1. Members Present a) Mr. Sunil Jalan …………….. Chairperson
b) Mr. Pranam Dhar
c) Mr. Partha Bala
d) Mrs. Chandrani Banerjee
e) Mrs. Bratati Das …………….. Secretary
f) Mrs. Srirupa Mukherjee
g) Mr. Sujan Chowdhury …………. Auditor
h) Mr. Shibsankar Banerjee and 216 shareholders, whose
signatures appear in the attendance register, were present
in the meeting. Mr. Sunil Jalan took the chair.
2. Notice of the meeting The Secretary read the notice of the meeting convening the
meeting.
3. Confirmation of the minutes of The minutes of the last Annual General Meeting held on 17th
the last Annual General Meeting April, 2017 were read out by the Secretary and was duly
confirmed by the meeting and was duly signed by the
chairman.
4. Presentation of Audited Accounts Resolved that the Audited Accounts for the financial year
for the financial year 2017-18 2017-18 is hereby adopted.
5. Declaration of Dividend On the motion of the Chairperson Seconded by Mr. Arindam
Ghosh, it was resolved that 20% dividend on equity shares
be declared and paid to those whose names appear in the
registrar of the company as on 31.03.2018.
6. Re-appointment of a Director Resolved that Mr. Partha Bala, a director of the company
who retiring on by rotation retiring by rotation be hereby re-elected and re-appointed
as a director of the company for the next term.
7. Removal of director Resolved that Mrs. Bratati Das, a director regarding whose
retirement a special notice has been heard as per the
companies act, 2013 be hereby removed from her office as
a director of the company.
8. Appointment of Auditor On the motion of T.K. Puri seconded by N. Agarwal, it was
resolved that Ghosh & Ghosh Associate of B.B.D. Bag,
Kolkata 700001 has been appointed as auditor of the
company to hold office till the conclusion of the next Annual
General Meeting.
9. Fresh issue of shares Resolved that 5,000 Equity Shares of ` 100 each be issued at
a premium of ` 20 per share to raise funds of the company.
10. Miscellaneous, if any No special items was raised and discussed.

11. Vote of Thanks The meeting ended with a hearty a hearty vote of thanks to
the chairs.
Minutes of the 23 rd Board Meeting of the Company:
Minutes of the 23rd Board Meeting of Bipasa & Co. held on Saturday, 10th January, 2018 at 4 p.m. at the
registered office of the company.
1. Directors Present at the meeting a) Mr. S. K. Puri
b) Mr. Sohan Gandhi
c) Mr. Mohan Modi
d) Mrs. R. Kour
e) Mrs. Kusum Gupta
f) Mr. Tomes Robinson
Mr. S. K. Puri took the chair to preside over the
meeting.
2. Confirmation of the minutes of the last Mr. Amar Singh, the secretary of the company read out
Board Meeting the minutes of the proceeding of the last board
meeting was held on 11th October, 2017. The minutes
were, thereafter confirmed.
3. Payment of interim dividend Resolved that an interim dividend of 10% be paid on
the paid value of equity shares.
4. Forfeiture and re-issue of shares Resolved that the shares of those shareholders who
failed to pay the consecutive call money, their shares
will be forfeited and re-issued to another person at a
discount of Rs. 2 per share.
5. Appointment of Auditor Resolved that Gupta & Gupta Company be appointed as
the auditor of the company at a fees of Rs. 1,00,000 per
annum in place of our existing auditor Khan & Singh
Company who has resigned.
6. Redemption of Debentures Resolved that the 10% debentures of Rs. 80,000 be
redeemed at two installments after six months each.
7. Miscellaneous, if any No special point has been raised and discussed.
8. Data of the next meeting Resolved that the next board meeting will be held on
March 15, 2018 at 4 p.m. at the registered office of the
company.
9. Vote of Thanks The meeting ended with vote of thanks to the chair.

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GOBIND KUMAR JHA 9874411552

“The journey of thousand miles begins with single step”.

“Special Thanks to Mr. Jay Rudra Jha for his effort”.

1 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

Major players in E-Commerce:

(ii) Commerce Service Provider (CSP):

(iv) End users:

2 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

Forces fuelling E-Commerce:

3 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

Benefits of E-commerce specified:

1. Restricted availability of internet access;

E-Business defined and classified:

4 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

1. Business-to-Customer (B2C): Commercial transactions are between an organization and customers.

Mobile Commerce or M-Commerce:

Benefits of Mobile Commerce:

Drawbacks of Mobile Commerce:

Definition and Clarities of Internet:

5 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

 Business-to-Business (B2B) Model Operation:

 Components of B2B Model:

6 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

 Business-to-Consumers (B2C) Model:

 Benefits of B2C E-Commerce:

 Consumer-to-Consumer (C2C) Model:

 Features of Consumer-to-Consumer (C2C) Model:

 Consumer-to-Business (C2B) Model:

7 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

2. The critical flow model:

3. E-Advocacy/Mobilization and lobbying model:

4. The interactive-service model:

Transaction Form Of E-Governance:

8 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

Group – A (1 Mark Type Questions)

Group – B (2 Marks Type Questions)

9 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

10 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

Concept and Definition of CRM:

(i) Increased customer loyalty;

11 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

(i) Developing Customer Focused Business Strategies:

(ii) Retooling Business Functions:

(iii) Work Process Re-engineering:

(iv) Technology Choices:

(v) Training and Preparation:

Concept and Definition of Electronic CRM:

ECRM Strategy Components:

In defining the scope of e-CRM, different levels can be distinguished:

12 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

The important of e-CRM are as follows –

Functional Components of ECRM:

The important functional components of ECRM may be as follows –

Strategies of ECRM Solutions:

Numerically enumerated, the r-CRM strategies are –

13 Special Thanks to Mr. Jay Rudra Jha (Ex-student)

The benefits or advantages of ECRM may be stated as follows –

Disadvantages or Limitations of ECRM:

The disadvantages or limitations are as follows: