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Research Analysis – Unisoft Infotech

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Introduction to ERP Enterprise Resource Planning (ERP) is a computerized inventory control and production planning system that was born from Material Requirements Planning (MRP) systems. ERP is a system that organizes functions of an institution; supporting, for example, accounting, finance, human resources and e-commerce applications through the creation of relational databases and graphical user interfaces that unify the tasks of institutions like corporations, government agencies, non-profit organizations, powerful institutions and industries and businesses establishments. ERP systems require software that is capable of providing functionality to various systems that will coincide with one another as a whole. ERP systems support e-commerce applications such as Supply chain management (SCM) and customer relationship management (CRM). ERP Analysis, Application Tools, Software suppliers and reports on the current state of ERP in mid-market companies are available for the ERP Architect in online training articles.

ERP Analysis A number of studies have shown that nearly 70 percent of Fortune 1000 companies will use an ERP system, and even small to medium sized businesses have begun using them. Statistics indicate that the ERP market has grown to $50 billion since the end of the 1990s. Some of the most prominent companies in the ERP industry are PeopleSoft, Oracle, and SAP.

There are a large number of potential uses for this technology. Enterprise Resource Planning

is responsible in assisting companies in the process of managing a number of different operations within their organization. An example of some of these operations would be finance of manufacturing. Companies that specialize in selling ERP systems are trying to combine more modules in their merchandise so that they can help their clients better integrate their processes.

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is comprised of a number of activities that support module program software. This software


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Since the Internet has become an important tool for businesses around the world, ERP vendors are working harder to offer technologies that fully utilize the capabilities of the Internet. Combining the Internet with ERP tools will allow companies to use their products in a mobile manner, and mobile computing will become much more advanced. There are three primary modules that make up an important part of Enterprise Resource Planning, and these three modules are logistics, accounting, and human resources. These modules are important because they will allow companies to become more proficient in the areas of production and order processing. However, ERP is much more powerful than this. It is a number of processes that are connected to numerous modules. It can allow a company or organization to become better organized. The reason for this is because ERP promotes integration rather than compartmentalization. The type of database that is commonly used with these systems is the relational database. Overall, ERP could be described as being a single form of data. The users will gain access to the database in order to gain important information that is related to human resources or financing

ERP Modules Financials

Supply Chain Management

Human Resources

ERP Modules Product Lifecycle Management

Supplier Relationship Management

CRM

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Business Intelligence


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Company Analysis


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About Unisoft Infotech Founded in 1996, Unisoft Infotech is a leading provider of SAP - based Enterprise Resources Management (ERM) solutions for the mid - market. It operates out of its Delivery Centers in Bangalore and Singapore and serves customers in India and South East Asia. Unisoft Infotech is headquartered in Bangalore and has fully functional offices in Singapore. With more than a decade's experience and over a hundred SAP - engagements under its belt, it provides comprehensive SAP solutions to a multitude of industry sectors. Unisoft InfoTech’s mid - market solutions are based on SAP's best practices and are adapted to the regional context. Our Solutions help implement SAP in an optimized way and increase the ROI of your SAP investment. It partners with its customers and guides them through the entire SAP implementation life cycle and helps them make all the decisions related to hardware, software or implementation. Its UNICARE SAP sustenance program ensures that your SAP system is always available and performing to its potential.

Industries Focussed

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• Industrial Machinery and Components • Engineering, construction and operations • Auto Suppliers • Consumer Products • Retail • Professional Services • Chemicals and Pharmaceuticals • Mill Products


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Vision Our Vision is to be a knowledge leader in providing advanced Business Solutions to our customers in the area of Supply Chain Management.

Mission Our Mission is to create and deliver value in every business interaction to our customers, partners and shareholders.

Services Offered Unisoft InfoTech’s SAP Implementation Services offers you the skilled and experienced technical, functional and BASIS consultants with the business experience, and proven Accelerated SAP methodology and tools to cost-effectively implement the suite of SAP R/3 modules and applications. Since 1997, Unisoft Infotech has established a solid reputation with our regional customers for delivering high-quality, on-time, and on-budget implementation engagements. Our extensive teams of certified SAP professionals, from project managers to individual SAP technical specialists, have the extensive "hands-on" experience to: - scope and plan the implementation approach. Develop the Implementation Project Plan

Define, design and configure business processes

Configure, set up and test the underlying technical infrastructure

Map the business processes and implement the suite of SAP modules

Perform Change Management through effective Knowledge Transfer and Education programs

Successful 'Go Live' and support

Period and Financial closing support

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Customize business transactions


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Solutions Offered – AUTO100 CPG100

CHEM100

RETAIL100

CPG100

SAP ERP

PS100

ECO100

MILL100

IMC100

AUTO100 - Auto Components sector CHEM100 - Chemical and Pharmaceutical Sector CPG100 - Consumer products Sector

IMC100 - Industrial Machinery and Components Sector MILL100 - Mill - based products PS100 – Professional Service Industries RETAIL100 - Retail Sector CPG100 – Consumer Products

Specifically For Small & Medium Sized Businesses

Specifically For Large Sized Businesses March 20, 2010

ECO100 - Engineering, Construction and Operations Businesses of India


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Support Services –

UNICARE is a flexible support plan, which will reduce the cost of maintenance and continuous improvement. Unisoft makes sure that your SAP investment and its ROI is maximized through Business Processes extensions, Upgrades, Interface development, module extensions in line with leading edge technologies envisioned by SAP. Support is segmented into three categories  Maintenance Support  Enhancement Support  Development Support

Partners – SAP Channel Partner IBM Business Partner (Asia Pacific) HP Reseller (India and Singapore) Easy Software – Services Partner (Asia Pacific)

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SAP Education Partner (India)


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Industry Analysis


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Introduction – ERP Market The ERP market is a very competitive and fast growing market. According to AMR Research Inc., the leading industry and market analysis firm specializing in enterprise application and enabling technologies, the Enterprise Resource Planning (ERP) software market will grow at a compound annual growth rate of 37 per cent over the next five years. AMR Research attributes the continued growth to three primary factors. These are: ERP vendors are continuing to expand market presence by offering new application such as supply chain management, sales force automation, customer support and human resources. To sustain their rapid growth, ERP vendors have to sell more licenses into their installed base. Currently, ERP vendors have a 10-20 per cent penetration (i.e. percentage of total employees currently using the ERP system). This will grow to 40-60 per cent within the next five years. While ERP originated in the manufacturing market, ERP usage has spread to nearly every type of enterprise including retail, utilities, the public sector and healthcare organization. Most will purchase new ERP system over the next five years, often for the first time. The vendors in the ERP market are segmenting into two tiers and are focusing on expanded product functionality, new target markets and higher penetration rates. The top tier consists of five vendors- SAP AG, Baan PeopleSoft, Oracle Applications and J.D. Edwards. One thing is clear; no one wants just ERP' anymore .The emerging trends in the enterprise packaged application industry are its integration with new, cutting-edge technologies, such as sales force automation (SFA) and customer management. Driven in part by the huge impact of Internet-based commerce, these new applications are

functionalities.

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leading to a seeming divergence between so-called Back Office and Front Office


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Knowing the ERP Markets Analyzing ERP market share is quiet different when compared with reviewing the market segments for any other product or service. The segmentations in that case will be numerous and in the form of many criteria like physical, geographical, functional, distribution level and many more factors. ERP the segmentation falls in than three main categories namely type of the industry, size of the industry and geographical areas in terms of the nations where the product is demanded. This helps in arriving at ERP market and ERP software market share. (Instead use ERP Market can be segmented into three major segments/Categories)

While discussing size of industry it refers to the volume of business transacted and the capacity of the firm in terms of large sized or mid sized or low rung. When it comes to the question of type it refers to the mode of business viz hospitality or insurance or manufacturing or health etc‌The market for them purely depends on the services offered by the vendor. The question of geographical segmentation involves a detailed study when it comes to ERP markets.

ERP Specific Market Segments

Presently, THE Target Markets

Potential Future Target Markets

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Indian ERP Market

European ERP Singapore Market ERP Market

MiddleEastern ERP Market


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ERP Market – INDIA ERP market in India steadily growing for the last few years and the main reason for this enormous growth can be attributed to the inability of order system to manage the conversion to year 2000. There are also other factors such as industry best practices, easy and faster implementation and good cost predictions. Another factor behind the growth is that already existing clients acquire more licenses and modules. The number of employees using the ERP system is increasing and the ERP clients who have started with the basic modules are going for subsequent applications. There is also a trend to replace customized system with standard application packages, like an ERP system. India is expected to present ERP suppliers an important marketplace as manufacturing companies are significantly investing in technology solutions to improve their manufacturing operations. According to observation made by some experts in the field, the ERP market started showing solid organic growth since 2004 as IT spending improved. The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2 during the period of 2004-2009. The market was $83 million in 2004, and is projected to be over $250 million in 2009, according to a research report. The report further clarifies that manufacturers in India are increasingly implementing ERP solutions to ensure that decision makers have the required information visibility across the value chain. Majority of Indian manufacturers are small by global standards, requiring easyto-use ERP solutions to meet their specific process requirements, including localization needs to address the continually evolving tax and statutory requirements. Small and medium enterprises across industry verticals and micro verticals, such as automotive,

advantages.

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pharmaceuticals, and textiles, are leveraging ERP solutions to gain sustainable competitive


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ERP Market – SINGAPORE  Small Businesses Rejuvenate Demand for ERP Software The enterprise resource planning (ERP) software market in Singapore is on a comeback trail as small- and medium-sized businesses (SMBs) step up deployment of mid-market ERP (MERP) solutions, specifically designed to suit their functional requirements. The market has returned to growth mode after a brief lull caused by the demand saturation for traditional ERP software among large organizations. However, marketing MERP software to SMBs is a difficult task, as they are extremely cost-conscious and reluctant to invest in incremental projects that would yield long-term benefits. To overcome this challenge and cash in on the huge business potential, vendors are explicitly redesigning their products to deliver comprehensive solutions.  Greater Demand for MERP Drives Overall Growth of the ERP Market Demand for MERP software is steadily increasing among SMBs that are always innovating and customizing their products and services to meet the changing business requirements. The inherent need to provide sophisticated solutions that are capable of reducing complexities in back-end operations has intensified the competition between Tier I and Tier II ERP vendors. This is only likely to benefit SMBs, as they will have better products at competitive prices to choose from. Enterprises are keen to reduce costs and increase revenue, leading to efficacious business management. The escalating competitive pressure is forcing companies to equip themselves with modern business processes that will provide unlimited access to information and enable them to compete effectively in the emerging global market, says the analyst. These

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developments are giving a fresh impetus to the ERP market.


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ďƒ˜ MERP Software Market Holds Huge Untapped Revenue Potential Apart from catering to the SMB segment, vendors are also focusing on expanding their product offerings and providing solutions to specific verticals. Industry specific functionality is gaining importance as companies look for meaningful solutions with appropriate differentiation tailored to match their diverse requirements, says the analyst. This is an exciting development, which holds immense revenue potential. Additionally, application service provider (ASP) initiatives are increasing in Singapore with SMBs realizing the benefits of outsourcing the management of their financials and operational systems through an ASP model. This is likely to reduce costs and eliminate the dependence on limited internal IT resources. However, market success will only favor those vendors that swiftly implement MERP software at a reasonable cost besides facilitating a quicker ROI and expansion of customer base. To execute this, vendors should identify the right channel partners and value-added resellers (VARs) and continuously help customers to derive value from their investments.

ERP Market - MALAYSIA The markets remain untapped at large. However it is quiet promising with the encouragement of ERP intervention in Small and Medium industries. The manufacturing sector occupies the chunk (benefactor and beneficiary) however the fact remains that others are not lagging behind. ERP has significantly contributed in terms of jobs and income.

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ERP market and ERP Software market share is quiet encouraging.


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ERP Market - EUROPE The ERP market among small and middle-sized companies has not yet been as exploited as for the largest companies. The large ERP vendors are now heading for this customer group and have to offer simpler solutions that are cheaper, pre-configured and easy to install. It is likely that the Euro conversion will have a great impact on the ERP market and be a business driver for ERP sales to small and middle-sized companies. Outsourcing of the ERP environment is another possible market opportunity. The ERP vendors, especially SAP, and the consulting firms have received much criticism for delayed and expensive projects. The most important factor for a project’s success is the client’s devotion to and responsibility for the ERP project. Other implementation success factors are; appropriate resources are dedicated full-time; enough time for and content of training; the ability to manage the change; and the right level of business process reengineering throughout the project. The ERP market has been a very successful playground for the consulting firms. Their problem has been to find qualified employees. Lack of experienced people has gained a lot of attention on the market and the most important factors when choosing an ERP business partner is reference projects and qualified consultants throughout the whole project. The new services that the consulting firms will have to deliver in order to be competitive in the future are: management consulting skills, specific industry knowledge, Euro knowledge,

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E-business knowledge, outsourcing capabilities.


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ERP Market – MIDDLE EAST Analyst firm Gartner forecasts that ERP software sales will rise by 19.7 percent in 2008, to $113.8 million, in the Middle East and Africa (MEA) region and that the MEA region will experience a compound annual growth rate (CAGR) of 12.9% from 2007 to 2012. Middle East ERP software sales growth is largely expected along certain driving industries. According to Gartner principal research analyst at Chris Pang, "In terms of the industries that we're really talking about for MEA, it's some of the industries within professional services, financial services, basically those areas which are at the moment seeing a boom. As Dubai and other middle eastern countries transform their economies from being more oilbased towards more professional services and financial services-oriented, we expect some of the growth in ERP to come into play." Gartner also expects software-as-a-service (SAAS) to to gain popularity in the Middle East, however, not at the same aggressive rates experienced elsewhere. "In terms of SAAS uptake in North America and parts of Western Europe, that's been very quick and it's been growing quite significantly year on year," said Pang, "However, in the Middle East, we expect the uptake to be a little bit slower and follow the trend of continental Europe, places like France and Germany as opposed to places like the UK and Netherlands which have been faster adopters of SAAS." According to the Annual Middle East Call Centre/CRM conference, ERP adoption among Middle Eastern countries has surpassed 20 percent annual growth and The Middle East Contact Centre market is currently witnessing a 30% growth rate in the number of agent

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positions.


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Competitor Analysis


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Introduction The competitors of Unisoft Infotech have been classified into 2 broad categories –

Direct Fellow 3rd Party ERP Vendors

Indirect Direct competitors of SAP ERP - ex. Oracle, People Soft, BAAN etc

Open Source ERP Providers

Traditionally, the ERP market has been segmented by the size of customers the vendors targeted: large enterprise vendors, midmarket vendors, and small business vendors. It was thought that the same vendors and products couldn’t serve multiple segments, but that notion has been disproved recently. We are now seeing many ERP vendors competing effectively in all segments. The Fortune 2000 have largely selected and deployed their ERP backbones, but many of them still rely on legacy MRP and MES investments within certain geographies, divisions, or individual facilities. With the focus on standardizing IT architectures across the entire company, centralized ERP systems that are extended to the entire corporation are replacing many of the midmarket plant applications. The traditional

are too big and complex, and they’re making inroads into the midmarket through rapidly growing reseller channels.

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large enterprise vendors have started to attack the market perception that their products


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ERP vendors by Application Segments


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ERP vendors by Application Segments & License Revenue


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ERP by License Revenue and share by Geographical Location


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Some best Open Source ERP providers


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Online campaign which I came across “Infor "Big ERP" Campaign Integrates Online – Offline Tactics — Including Social Media”

How do you generate awareness for your company when your industry is defined by two Goliaths — namely SAP and Oracle? That’s the question that confronted Infor, a company that develops and sells ERP and other software solutions designed specifically for midmarket companies. Although SAP and Oracle have been moving into the mid-market with their own offerings, the market has been very poorly served. Designed for the biggest companies, “Big ERP” — as Infor calls it — was retrofitted for the mid-market, and in the process, has created a great deal of frustration. “According to market research by analysts such as Forrester, people know of Oracle and SAP, and then you drop way down and a bunch of companies get mentioned, including ours,” says Dave Alampi, Infor’s VP of Marketing Strategy and Services. “We wanted to move the needle on unaided awareness and preference and wanted people to think ‘Infor’ when they considered a business software solution. We wanted to take the big guys to task and create a campaign that would touch a nerve and connect what people were thinking about the market.” Here’s how Infor set out to achieve these objectives.

Infor’s Cambridge, Massachusetts agency PJA Marketing + Advertising developed the campaign, which features the “Big ERP” characters that represent the frustrations midmarket companies have with regard to Big ERP software.

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Step #1: Develop a message and test it.


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“We gave these characters personality,” says Mike O’Toole, President of PJA. “Our creative staff gave them a fun voice — and this voice worked naturally with the social media elements of the campaign. Infor began testing the “Big ERP” concept message to determine if it resonated with customers and prospects — which it did, in virtually every geography tested.” Step #2: Get C-suite buy-in. When asked if they had push back with regard to using social media and the Big ERP characters for the campaign, Alampi and O’Toole both said the top brass at Infor believed the campaign was the right thing to do. One lesson marketers can learn is that it pays to have marketing strategy that’s based on business objectives and real world research — which is especially helpful when you have a new CMO come in when you’re in the middle of creating the campaign. “We reviewed our goals with Robert Humphrey, our new CMO,” reports Alampi, “as well as the thinking behind the campaign, the details and media strategy, and our research and test results. He became a strong advocate very quickly.” Adds O’Toole, “Infor isn’t opposed to social media nor do they believe in doing it just because ‘everybody’ else is. To back up our recommendation for social media integration, we used data from IDG Connect which showed that close to 80% of decision makers in the software adoption process use information from social media channels. We were able to prove that prospects and customers in Infor’s industry use social media to make purchasing decisions.” Step #3: Create external and internal campaign components.

publications, a “DownWithBigERP” micro site, YouTube videos, Facebook, LinkedIn, and Twitter.

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The campaign, which began running in November 2009, features print ads in business


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In addition, Infor ran an internal contest for employees on who could develop the best video or submit the funniest photos. To generate excitement, the company created full-sized cutouts of the Big ERP characters, mouse pads, etc. “We had lots of employee engagement,” says Alampi, “and over 40 submissions, including three videos, from individuals and groups around the world. Our employees really understand the frustration in the market and are very excited about this campaign.” Once the campaign went live, Infor and PJA began engaging market influencers by following editors and analysts who write about ERP. “We commented on their Tweets and blog posts and after awhile, they started commenting back. We have over 300 followers now for our Big ERP Twitter feed — and while that sounds like a small number, these are highly influential people,” says O’Toole. Step #4: Measure results. Because the goal of the campaign was to raise brand awareness, Infor will be looking at its market awareness every six months and retesting to see how far they’ve moved the needle. The team is also looking at the impact on its sales pipeline and the number of hand raises due to the campaign micro site and traffic to the Infor site plus the 29 country sites. And, the company will be tracking RFPs and RFIs to see if these numbers increase as well as the impact of social media on the broader conversation. The team is using Radian6 to look at naturally occurring conversation around ERP and the mid-market within the blogosphere, list serves, and social networks. “We want to know,” says O’Toole, “how much of this conversation includes Infor and how we can increase natural mentions within conversations.”

said, “You have to follow through. Our CEO, Jim Schaper, wanted to be bold and make a bold statement. As a marketer, you hear this often but once the C-suite sees what ‘bold’ looks like, ideas get watered down or campaigns canceled altogether.”

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When asked what other large companies like Infor can learn from the campaign, Alampi


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“Schaper wanted a bold campaign with a sense of humor,” continues Alampi, “and this gave PJA the freedom to develop ‘Big ERP.’ It’s different, it’s getting people’s attention, and people are responding to it. The campaign, which has yet to be launched in Europe and Asia Pacific, is already paying off. In fact, we’ve even received a couple of leads via Twitter, which was completely unexpected!”

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VIDEO URL - http://bit.ly/inforvideo


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Consumer Behavior Analysis


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Introduction The emergence of e-commerce as a way of doing business has created an environment in which the needs and expectations of business customers and consumers are rapidly changing and evolving. This situation presents marketing managers with the challenge of ascertaining which elements of market space are new and how much continuity can be retained from the past. Some marketers apparently believe that it is enough to offer a Web site, maintaining a superficial appearance that the firm is progressive, or they ignore the Web altogether, possibly making use of digital technology to support existing business plans. Others take the opposite tack, saying that everything is changing and that nothing can remain the same (e.g., Feather, 2000; Murphy, 2000). A more balanced view proposes that people are basically the same but that new technologies are changing many of the ways customers shop and buy – thus, many businesses must overhaul their operating models to create digital strategies that meet changing needs and preserve competitiveness We begin by considering characteristics of the most innovative online buyers and how marketers might best attract these individuals to Web sites. Quite a lot has been learned in the past few years about online customer behavior. This knowledge should benefit emarketers in their efforts to develop successful online marketing strategies. These topics are important because now that many investors have been burned by dot-com business failures, they are unwilling to provide funding to start-ups that do not have clear business strategies in place and excellent indicators of potential success. In addition, competition is fierce, so competitive advantage is even more important on the Web than it is for an industrial sales representative calling on a customer or for a retail store in a neighborhood shopping mall. We propose that the more managers know about customers and their expectations of, as well as reactions to, e-commerce activities, the better these online

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vendors will be able to attract and to retain consumers.


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Characteristics of B2B Online Buyers In their analysis of the buying process for tangible, customized products, Gattiker, Perlusz, and Bohmann (2000) suggest that potential B2B online customers gather information needed for decision making and process it, taking into account situational factors and available product attributes. Further, o Individual buyers’ demographic characteristics o Cultural backgrounds o Attitudes toward technology, and o Economic factors influence the decision-making process. For instance, they note that women are less likely than men to spend time on the Web and more likely to value interpersonal communication. Younger respondents are more likely than are older respondents to spend time on the Web and to have made at least one purchase online. More educated respondents are more likely to spend time on the Web than are less educated respondents. Outcomes, specifically Web beliefs and behaviors, depend on Web usage patterns, ability to test and purchase products online, type of information available, and usage situation. While all customers might be expected to evaluate certain product attributes, particularly as their needs depend on the planned usage of the product, B2B purchasing agents differ from individual (B2C) shoppers. In particular, corporate buyers are more concerned than are B2C consumers with obtaining specific information, such as delivery conditions and pricing options. In addition, corporate agents may require documented quality and post sale support because of company policy. Other features that may be important include presale support, availability of post sale on-site service, and terms of replacement (e.g., lead times).

may occur for both B2B and B2C customers. For instance, extrinsic product attributes, including price and brand name, recommendations from others, and warranty, may be more important online than in a brick-and-mortar retail store where other product features may be more readily evaluated.

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The research further suggests that some differences between online and off-line shopping


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List of useful websites for the Online Campaign  www.facebook.com  www.twitter.com  www.linkedIn.com  www.erp.com o ERP Launches New Community Networking Site Targeting Enterprise Resource Planning Professionals, ERP Services, and ERP Systems Software. New Enterprise Resource Planning Site www.ERP.com Offers A Central Forum for ERP Practitioners, Companies and Enterprise Systems Consultants To Get Helpful Tips and Tools, ERP Related Jobs and Consulting Leads, And ERP, CRM and MRP Systems Software and Solutions.

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 www.erpexperonline.com


Market Reserach Report - Unisoft Infotech