CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

  The internet played a vital role in the world and most especially in the performance of many organizations. It has been so common in most companies in the world are connected to the internet. The internet system is an innovative web bases solution useful for organization and companies to improve sales of their goods and services. Online and virtual environment as an enormous network of millions of computer allowing communication throughout the world. Internet is related to e-commerce, since it based on electronic.

E-commerce also known as electronic commerce consist of the buying and selling of product and services over electronic media such as internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily since the advert of internet. A wide variety of commercial activities conducted in this manner spuring and drawing on innovation in electronic funds transfer (EFT), Supply chain management (SCN), internet marketing, online transaction processing (OTP), electronic Data interchange (EDI), inventory management system and automated data collection system.

Modern electronic commerce typically uses the world wide web at least as some point in the transaction life cycle although. It can encompasses as wider range of technologies  such as e-mail. Electronic commerce that is conducted between business is refer to as business to business. Business to business can be open to an interested parties such as commodity exchange or limited to specific, pre-qualified participants such as commodity exchange or limited to specific, pre-qualified participants.

Electronic commerce in generally considered to the sales aspects of e-business. It also consist of the exchange of data to facilitate. The financing and payment aspects the business transaction. It has changed over the 30 years. Although the internet become popular world wide in 1994. It took four years to introduce secretary protocol and DSL what is it allowing continual connection to the internet and by the end of 2000 a lot of European and American business companies offerd their service through the world wide web.

The e-commerce meant the facilitation of commercial transaction electronically, using technology such as electronic data interchange (EDI) and electronic fund transfer (EFT)both introduce on the 70’s allowing to send commercial document like purchase order or invoices electronically.

Sales promotions are important marketing tools in today’s businesses. They command a greater portion of the marketing budget than advertisements (in consumer-packaged-goods business). However, while advertisements are quite popular and a big business on the Internet, sales promotions on the Internet have not caught on yet. Part of the reason is that an advertisement is purely informational with no exchange value. It is broadcast to the largest possible segment of population possible within a budget. On the other hand, coupons, the primary vehicle for sales promotion, have an exchange value and are intended for a select section of the population. The digital nature (ability to make perfect copies inexpensively), easy access, and low overhead for distributing information on the Internet is a boon to advertising, but a problem for sales promotions.