The Impact Of E Commerce In Marketing Information Technology Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

At the down of 21st Century, the hospitality organization depends largely upon the illustrious outrageous development of mass media & communication.

A market is a network of interaction & relationships where information, products, services & payments are exchanged. When the market place is electronic, the business interactions occur. The market handles all the necessary transactions, including the transfer of money between banks. In electronic markets, the principal participants- transaction handler, buyer, broker, and sellers, are not only at different locations but seldom even know one another. The means of interconnection varies among parties and can change from event to event, event between the same parties. The term commerce is viewed by some as transactions conducted between business partners. Therefore, the term electronic commerce seems to be fairly narrow to some people. Thus, many use the term e-business. It refers to a broader definition of business partners, and conducting electronic transactions within an organization. Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products. Services, and information via computer networks including the internet.

Electronic commerce or e-commerce refers to a wide range of online business activities for products and services. It also pertains to "any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact."

E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network. E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.

E-markets are simply defined as Web sites where buyers and sellers interact with

each other and conduct transactions.

Transactions which are conducted over an electronic network where the buyers and merchant are not at the same physical location e.g. the buying on the internet. The mean by which people conduct business online- trading money for services. The process of taking money via credit card transaction, pay pal and other forms of payment- in exchange for the services or product sold via internet is E-Commerce.

Moving elements of marketing strategies and activities to a computerized, networked environment such as the internet. It is the strategic process of creating, distributing, promoting, and pricing goods and services to a target to a target market over the internet or through digital tools.


The marketing mix for the hotel industry concludes 4 branches namely price, product, place and promotion. Product is to do with the new e product which is room sales etc. And has modernised altogether in a different way. Price is to do with the prices available on internet which are secure enough transact on. Place in context to e commerce is dealing with the world wide web. And finally promotion is to do with the advertisements and promotional tools used to promote the hotel product.

Back to e-marketing for hotels...the emerging trend in the industry, especially with hotel chains who've embraced the online revolution, is to increasingly focus on the role at the property, hotel complex and area levels. In the Middle East for example, the concept was almost non-existent just a few years ago. A case in point is Starwood Hotels & Resorts, which had about 4 to 5 property level online marketing executives / managers in 2005 in the Africa & Middle East region - today this same number is over 13 in the Middle East region alone!

The revenue contribution of the Internet as a distribution channel has seen tremendous growth in the past few years, with some hotels in high internet-penetration divisions like North America reporting as much as 50% of their revenues generated on the Internet. Hotels in the Middle East have seen modest revenue channel contributions of 5-10% but the growth year-over-year has been extremely positive and the future looks very bright. Overall, looking at the top 21 hotel brands worldwide, Travel CLICK's e TRAK reports that the Internet accounted for 38.3 percent of 2006 brand hotel bookings, driven by a 20.2 percent growth rate compared to 2005. As hotels continue to shift marketing funds from offline to online, more bookings will be made directly through hotels' own websites (at present, many customers also tend to research their stays online and book offline, hence the Internet is a strong indirect booking influence too).


The majority of hospitality e-commerce systems are focused on the marketing business function. Marketing involves the management of the pricing, placement, and promotion of products and services provided by a specific hospitality enterprise. E-marketing uses electronic networks for the promotion and placement of products and services. For example, W Hotels, a portfolio of luxury-boutique properties owned by the Starwood Hotel Group, was one of the first to offer online "virtual tours" of its properties. This enables a prospective client to conduct site visits without having to travel to each property. Most branded hotels provide this promotion feature today. If a client makes the decision to book a group with one of the properties, the arrangements also may be made online; this is an example of electronic placement of the hotel product.


In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. With developments in the Internet and Web-based technologies, distinctions between traditional markets and the global electronic marketplace-such as business capital size, among others-are gradually being narrowed down.

Every process of marketing has its own advantages & drawbacks in context to e-commerce, the negative includes non-reliability. The transaction being unsafe & unsecured. There has been intrusion of fake sites & unauthorized portals this has led to customer disappointment & proves to be a major drawback of e-commerce. There is need to be a solution & technological advancement for this problem. Another disadvantage to be noted shall be the hotel loosing price control on the room rate.

High Internet access costs, including connection service fees, communication fees, and hosting charges for websites with sufficient bandwidth. Limited availability of credit cards and a nationwide credit card system. Underdeveloped transportation infrastructure resulting in slow and uncertain delivery of goods and services.

Network security problems and insufficient security safeguards. Lack of skilled human resources and key technologies (i.e., inadequate professional IT workforce);

Content restriction on national security and other public policy grounds, which

greatly affect business in the field of information services, such as the media

and entertainment sectors. Cross-border issues, such as the recognition of transactions under laws of other ASEAN member-countries, certification services, improvement of delivery methods and customs facilitation; and the relatively low cost of labor, which implies that a shift to a comparatively capital intensive solution (including investments on the improvement of the physical and network infrastructure) is not apparent. (

Interwoven is a key partner for us, and by integrating with their Web Content Management solution, we can jointly enable leading companies like Hilton International to achieve their global e-commerce objectives, no matter how complex or widespread," said Mark Hagerty, director of application development for "Hilton International has set a true example for how global e-commerce expansion can be accomplished."


"It's extremely gratifying to play such a significant role in helping a global leader like Hilton International achieve their goal of successfully expanding their business in such a short amount of time," said Erik Hansen, senior vice president and general manager, EMEA operations, Interwoven "Interwoven's heritage is in delivering industry-leading Web Content Management solutions, and by partnering with language translation pioneers like, we can provide our global customers with even deeper solutions to meet all their Web needs."


A number of global companies have adopted electronic commerce as a means of reducing transaction related expenditures, connecting with current and potential customers, and enhancing revenues and profitability. If a restaurant is to have an

Internet presence, what aspects of the business should be highlighted? Food service companies that have successfully ventured onto the web have employed assorted web-based technologies to create a powerful marketing tool of unparalleled strength. Historically, it has been difficult to create a set of criteria against which to evaluate website effectiveness. As practitioners consider additional resources for website development, the effectiveness of e-marketing investment becomes increasingly important. Care must be exercised to ensure that the quality of the site adheres to high standards and incorporates evolving technology, as appropriate. Developing a coherent website strategy, including an effective website design, are proving critical to an effective web presence.


Customer satisfaction increased as the web-site became a one stop shop providing an array of services and information and deliver automated content presentation

based on customer interests. The other contributing factors included quick issue resolution and personalized services based on customer profiles and interests,

helping build loyalty. Improved customer retention Keeping the information web site current & dynamic and providing special offers tailored to customer demographics helped increase business and assisted in customer retention.

Marketing analytics The client was able to determine the effectiveness of its marketing programs as e-mail campaigns and affiliate marketing programs - ads,

banners - on third party web-site were tracked for ROI. Additionally, the project allowed the compilation of a customer database to support targeted marketing initiatives. Low operating costs As the content creation and publishing processes were made simpler with automated work-flows, functional department personnel

were able to manage and operate the web-site with reduced technical dependency, lowering operating costs.


Yes, I emphasise on the fact that e-commerce proves to be a catalyst in the process of the formation of successful e-business. It has laid numerous foundations for future & shall continue its growth in a major way towards the success of business.

E-commerce has proved to be a malicious tool for promoting business in hospitality organization worldwide. Its output can seen through a variations in industries including small scale or large scale. It has a very positive approach for the industry & has led its way towards the success of the industry. I am very pleased to confirm that the progress of e commerce has lasting impacts on the economy on a whole as well.