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Relationship between E-Marketing, E-commerce, E-business and Internet-marketing

Relationship between E-Marketing, E-commerce, E-business and Internet-marketing

One of the main barriers in pursuing advanced research in the fields related to e-commerce and e-marketing is the ambiguous way of dealing with the concept and definition of E-Marketing. The majority of researchers within the field misuse the term E-Marketing for E-business, E-Commerce and Internet Marketing as the synonym which is incorrect since these terms have different connotations (Eid & El-Gohary, 2011). For instance, E-Marketing is wider in scope than Internet Marketing (IM) since it refers not only to digital media such as the Web, e-mail and wireless media, Intranets, Extranets and mobile phones but also includes electronic customer relationship management systems and the management of digital customer data, etc. In contrast with that,      E-commerce and E-business have a wider and broader scope than E-Marketing.

It is difficult to find an accepted definition of E-Commerce (Duffy & Dale, 2002), since its definitions vary according to interpretation and use. For example Kim and Moon, 1998 define Electronic Commerce (EC) as: “The delivery of information, products and services, or payments via telephone lines, computer networks or any other electronic means” (Kim & Moon, 1998). Baourakis defines it as: “The trading of goods and information through the Internet”(Baourakis, Kourgiantakis, & Migdalas, 2002) . On the other hand, Chaffey (2007) interpret E-Commerce as a means to exchange information: “All electronically mediated information exchanges between an organization and its external stakeholders”(Chaffey, 2006). In addition, according to some scholars, E Commerce can take a variety of forms which include electronic data exchange (EDI), mobile telephone, direct links-up with suppliers, Internet, Intranet, Extranet, electronic catalogue ordering, and e-mail (Quayle, 2002).

E-Business as a term is broader than E-Commerce since it does not refer only to buying and selling (as in E-Commerce) but also refers to servicing customers and collaborating with business partners. This is in line with the roots of the concept of E-Business (Chesher, Kaura, & Linton, 2003).

Based on the various definitions for E-Commerce and E-Business, mentioned above, the concept of E-Business goes beyond the narrow understanding associated with the term E-Commerce. Within this context, E-Commerce characteristically relates to the process of buying and selling products, services and information through the use of the Internet and/or computer networks (Chaffey, 2007; Lesjak and Vehovar, 2005; Greenstein and Feinman, 2000 and Turban et al., 2004). Moreover, according to Rodgers (Rodgers, Yen, & Chou, 2002),  E-Commerce principally focuses on the organisation customers while E-Business expands the connectivity of the organisation to include not only its customers but also the organisation suppliers, employees and business partners.

Based on the above discussion, it is clear that E-Business, E-Marketing, E-Commerce and Internet Marketing are not equivalents or a different wording for the same meaning as observed in the literature, where there is a blurring of the distinction between the terms. These differences and relationship can be illustrated in figure bellow.

 
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Posted by on February 1, 2012 in Life & Economy, MKT

 

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Financial engineering, 10 Definitions

What is financial engineering? Here are 10 definitions about FE.

Based on International Association of Financial Engineers (IAFE) definition, Financial Engineering is the creation of new and improved financial products through innovative design or repackaging of existing financial instruments.

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Financial engineering is an engineering discipline which deals with the creation of new and improved financial products through innovative design or repackaging of existing financial instruments. Financially, engineered products like American Depository Receipt (ADR) and Global Depository Receipt (GDR) have provided companies access to international financial markets to raise funds. However, financial engineering is considered as being responsible for triggering the global financial crisis by increasing leverage and price risks (Shah & Srinivasan, 2010).

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Financial Engineering is a multidisciplinary field involving financial theory, the methods of engineering, the tools of mathematics and the practice of programming. It is about the securities, banking, and financial management and consulting industries, or as quantitative analysts in corporate treasury and finance departments of general manufacturing and service firms (Swishchuk & Manca, 2010).

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Mainstream financial engineering as a study of methods that stand upon the  assumptions of behavior, markets and institutions of the neoclassical vintage is critically examined (Choudhury, 2009).

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Financial engineering is a process in which financial securities are designed and packaged with innovative features. Typically, financial engineering involves creating certain type of derivative securities. House construction is to civil engineering what security packaging is to financial engineering. They both involve putting raw materials together to come up with something for a particular purpose.  Civil engineers wear hard hats and heavy boots for protection and safety while financial engineers “wrap” themselves in legal papers full of cryptic fine prints (Wei, 2005).

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FINANCIAL ENGINEERING is a process involving the creation and combination of a variety of financial instruments in order achieve a defined financial objective within certain cost, tax and legal constraints, e.g. combining or dividing existing financial products to create new financial products (Gastineau & Kritzman, 1999).

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Financial engineering sometimes also refers to the strategies companies use to maximize profits or other important performance metrics. Examples include creating derivatives that address unusual risks faced by a party to a transaction, structuring a purchase or sale in a way that better addresses the interests of the buyer and the seller, and using new methods to compute the fair market value of new or existing financial instruments (Zopounidis, 1999).

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Financial engineering works in other environments as well. The financial theory of offering several existing products under one package has become very common in the telecommunications industry. Many providers today offer bundled service packages that include local phone service, unlimited national long distance, Internet service, and cable or digital satellite television. The end result of this type of arrangement means one lower price to obtain three or more services at significant cost savings to the consumer (Smithson, 1998).

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Financial engineering is the innovation and creation of new financial instruments. The most important products of financial engineering are speculative bonds, zero coupon, securities assets, financial derivatives and repurchase agreements (Moles & Terry, 1997).

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Computational finance, also called financial engineering, is a cross-disciplinary field which relies on computational intelligence, mathematical finance, numerical methods and computer simulations to make trading, hedging and investment decisions, as well as facilitating the risk management of those decisions. Utilizing various methods, practitioners of computational finance aim to precisely determine the financial risk that certain financial instruments create (Bradman, Rouge, Pentecostalism, Pentecostal, & Woroniecki).

 

References

Bradman, D., Rouge, B., Pentecostalism, O., Pentecostal, O., & Woroniecki, M. P. Encyclopedia> Cheminformatics.

Choudhury, M. A. (2009). Islamic Critique and Alternative to Financial Engineering Issues. Islamic Economics, 22(2).

Gastineau, G. L., & Kritzman, M. P. (1999). The dictionary of financial risk management (Vol. 52): Wiley.

Moles, P., & Terry, N. (1997). The handbook of international financial terms: Oxford University Press, USA.

Shah, V., & Srinivasan, P. (2010). Financial Engineering and Innovation as Risk Management Tools: The Case of Indian Companies During Global Financial Crisis. IUP Journal of Risk & Insurance, Vol. 7, Nos. 1 & 2, pp. 50-66, January & April 2010.

Smithson, C. W. (1998). Managing financial risk: a guide to derivative products, financial engineering, and value maximization: McGraw-Hill Professional.

Swishchuk, A., & Manca, R. (2010). Modeling and Pricing of Variance and Volatility Swaps for Local Semi-Markov Volatilities in Financial Engineering. Mathematical Problems in Engineering, 2010.

Wei, J. Z. ( 2005). A Layman’s Guide to Financial Terms. 24.

Zopounidis, C. (1999). Multicriteria decision aid in financial management. European Journal of Operational Research, 119(2), 404-415.

 
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Posted by on January 3, 2012 in FIN, MBA

 

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