| Concept of Service | | | | grown more than twice and reached 580 millions. |
| The current work deals with marketing offer of | | | | By 2005, their number is estimated to reach |
| e-commerce service. It highlights the essential | | | | more than 770 million. |
| steps of marketing of a brand-new firm offering | | | | These figures show that the Internet has |
| services of website construction, design, | | | | become very important and significant business |
| programming, development, and promotion. The | | | | medium through which buyers and sellers not only |
| service should be provided exclusively online via | | | | conduct transactions that were earlier conducted |
| the site of the company. Online business | | | | live, but carry out online-specific business |
| operations include ordering, agreement on | | | | buy-and-sell operations. Only three years ago, in |
| requirements, elaboration of design, and providing | | | | the first three quarters of 2002, according to the |
| constant customer support. | | | | figures of Department of Commerce [3], |
| The service implementation process should include | | | | e-commerce transactions amounted to more than |
| the following stages: | | | | 20 billion dollars. It should be taken into account |
| - Defining goals of the site. This may include either | | | | that those numbers are significantly lower than |
| physical meeting or discussion of the product in | | | | the amount of actual real transactions. |
| question via Internet. | | | | Today, e-commerce is booming. Market size of |
| - Developing the website structure. This stage is | | | | e-commerce has reached immense volumes. |
| aimed at flashing out technical aspects of the site. | | | | Moreover, this growth tends to accelerate. While |
| It should include definition of necessary | | | | in 2002 total volume of retail American |
| technology, type and specifications of site | | | | e-commerce sales was fixed at $44 billion, one |
| navigation. | | | | year later it increased to 56 billion. Then, in 2003, |
| - Website design and built. Developing layout and | | | | online sales made only 1.6 of total sales, providing |
| graphics of the site. This may include elaborating | | | | the ground to suggest that there is very large |
| the company's genuine creative approach in | | | | growth potential. Online sales are predicted to rise |
| developing the graphic looks of the order, or | | | | to 2.9% by the year of 2007. Thus, Internet |
| complying with the requirements presented by | | | | economy force became more integral part of the |
| the customer as to general look of the project. | | | | entire US economy than it has ever been. |
| - Website programming and built. This stage | | | | Research conducted by the Cisco Systems |
| depends on details of each specific project and | | | | (available at [2]) shows that the Web is |
| definite requirements posed as to the quality and | | | | transforming the way people work and the |
| level of the site. Also, this process varies | | | | revenue from Internet transactions annually |
| according to the kind of customer and destination | | | | grows by more than 50 percent. |
| of the site contemplated. All features of the site | | | | Jupiter Research [4] reports that American B2B |
| are subject to examination and test by both | | | | Internet commerce rates increased noticeably |
| company's specialist and customer. | | | | over the past 5 years and amount from $336 |
| - Technical release of the site. Once technical | | | | billion in 2000 to $ 6.3 trillion in 2005. Jupiter |
| aspects of the project finished, the customer | | | | mentions five industries that have more than half |
| should be provided with free consultation along | | | | of all buying and selling operations online. These |
| with further site marketing and promotion | | | | are: aerospace and defense, chemicals, electronics, |
| services, techniques, and practical advice. | | | | motor vehicle and parts, and computer and |
| - Ongoing site maintenance. This is the stage | | | | communications equipment and software. Among |
| when the job of creating the customer's site is | | | | these industries, computer and communications |
| finished. But the company guarantees keeping all | | | | equipment and software is leading with estimated |
| its sites current in terms of graphics, technology, | | | | number of online sales in this 2005 year reaching |
| navigation and usability. After release of the site, | | | | to $1 trillion. |
| the company continues working with the | | | | That is very important for the current study |
| customer as to establishing a schedule for the | | | | since the project in question is to be launched in |
| website regular review and maintenance to meet | | | | computer and communications industry. |
| clients' requests, accommodate users' feedbacks, | | | | Therefore, proceeding from the trends mentioned |
| incorporating new system updates and new | | | | in the industry of electronic commerce, one can |
| technologies. | | | | assume that the direction of one's business |
| It is a fact that the idea of the | | | | connected to online service and e-commerce, |
| internet-commerce of this type is not brand-new, | | | | notwithstanding powerful competition, has all the |
| and for a new company to enter the market and | | | | chances to further develop and gain success since |
| receive profit out of its business, it is necessary | | | | this market sector is subject to enhancement, |
| to invent some novel elements in the service | | | | development and transformation. |
| offered. The innovative elements that this project | | | | Since the number of Internet users is growing |
| contains compared to large variety of | | | | and the number of companies willing to be |
| competitors functioning on IT e-commerce | | | | represented on the Web is increasing along with |
| market are based on combination of cost | | | | the number of companies launching online |
| leadership and differentiation generic strategies | | | | business, there is very high and further increasing |
| (according to M. Porter, [1]). Therefore, the | | | | demand in providing programming, design, site |
| project is launched in B2C format, though there | | | | development and marketing services. Therefore, |
| can be differentiation of customers and hence | | | | a new firm in the industry theoretically has solid |
| differentiation of the level and variety of services | | | | opportunities to enter the market, whatever |
| offered to each individual customer, and the | | | | saturated it may be, and successfully develop. On |
| project is for-profit, small business case. | | | | the basis of abovementioned, the outline of |
| This new business is intended to compete with | | | | relevant business target market gets clearly seen. |
| both large business providers of site development | | | | Target Market |
| services and small business representatives dealing | | | | The target market of the project is very vast |
| with this issue. | | | | one. It varies from individuals with the minimum |
| Another unique feature of the project is wide | | | | requirements as to functionality, appearance and |
| variety of services included in one business offer. | | | | program possibilities of the site, to large |
| This includes: web-design, redesign of existing site, | | | | companies with more solid and expensive orders. |
| possibility of working with many programming | | | | Since there are very different kinds of customers |
| languages, site management, allocation in search | | | | with various interests and needs, each requiring |
| engines, animation, free hosting offer, email | | | | different approach and professional level of |
| registration, web mail and POP3 access, ftp | | | | performance, they should be segmented into |
| access, tools for web statistics, domain name | | | | distinct groups. By segmenting the customers, the |
| registration, other services like full life website | | | | company increases its chances on success. |
| consulting, flash animation creation, elaboration of | | | | The customers were divided according to the |
| graphic and logo design, e-commerce and shopping | | | | level of the desired product complexity. After |
| carts, site management, administering and | | | | such criterion, three levels can be distinguished: |
| maintenance, banner ads, marketing, engine | | | | those requiring basic site development; |
| position enhancing and promotions, search engine | | | | intermediate level, and sophisticated one. Basic |
| optimization, software testing and even online | | | | level implies comparatively low cost of services |
| training. | | | | and is fine for individual customers, |
| Industry Overview | | | | non-professional companies specializing, for |
| The industry of e-commerce is one of the | | | | example, in online selling of a small range of |
| fastest and most dynamically developing industries | | | | products. According to its name, this solution |
| worldwide. Today it is quite difficult to accurately | | | | anticipates limited functionality, simple design, and |
| define the impact of the Internet on commerce in | | | | quick implementation of the order. |
| exact figures, but according to the estimates by | | | | Second group of customers comprises those with |
| 2000 there were about 260 million Internet users | | | | intermediate level orders. Such sites should |
| worldwide and by mid 2003 their number has | | | | include... |