E-marketing

E – MARKETINGAdvanced Marketing

Management

Arch. Maribel C. TuberaDBA Student – SY 2012-2013

E - Marketing

• Use of information technology in the process of creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholder.

• E-marketing is bigger than the web.

The web is only one aspect of e-marketing

internet

automobile

television

Personal computer

refrigerator

UPC Scanner

database

E-mailcellphone

PDA

web

E- marketing affects traditional marketing in 2 ways

1. Increases efficiency and effectiveness in traditional marketing functions.

2. The technology of E-marketing transforms many marketing strategies.

E - Commerce

• Using an electronic network to simplify and speed up all stages of the business process , from design and making, to buying, selling and delivering (Dept of Trade and Industry, 1999).

Activities considered as E – Commerce transactions

1. Private Value-Added Networks (VANs) which include internal transmission, data-processing, and encoding.

2. File Transfer Protocols (FTPs)- public transmission of data like Wireless Application Protocol (WAP).

3. Electronic files transmitted via e-mail.

4. Use of Internet Web sites or Web pages.

5. Direct-connection or computer-to-computer communication via a single program.

6. Use of hard drives, compact discs (CDs), zip drives for electronic storage.

7. Use of faxes and e-mail as a means of communication.

Benefits of E – Commerce to a company

1. Better customer service and increased revenue;

2. Improved company image, competitive edge, and accessibility to international market;

3. Ease of customer exchange, thereby encouraging customer loyalty;

4. Paperless documentation/transactions;

5. Accurate supplier information exchange;

6. Attraction of new investment;

7. Lower procurement costs.

E - Business

• Continuous optimization of a firm’s business activities through digital technology.

E – Business (defined by IBM Global Service, VP Neil Isford)

Helping the customer to do one or more of the ff:a) Connect their enterprise;b) Extend the value of the chain;c) Extend the business market.

Internet

• A global network of interconnected networks.

• Includes millions of corporate, government, organizational and private networks.

3 Technical roles of the internet

1. Content providers to create information, entertainment ant etc., that reside on computers with network access.

2. Users (also known as client computers) who access content and send e-mail and other data over the network.

3. A technology infrastructure to move, create, and view or listen to the content (software and hardware)

3 important types of network of the internet

1. Intranet2. Extranet3. web

Social Network

• A social structure made of nodes (generally individuals or organizations) that are tied by one or more specific types of interdependency, such as values, visions, idea, financial exchange, friends, kinship, dislike, conflict, trade, web links, sexual relations, disease transmission (epidemiology) or airline routes.

Tools

a) Social networking sitesb) Message boardsc) Blogsd) Wikise) Pod castsf) Instant messagingg) Online forumsh) Photo and video sharingi) E-mail, etc

People behind a website

a) Ownersb) Venture capitalistsc) Creative directorsd) Account and project managere) Programmersf) Graphic designersg) Copywritersh) Marketers

Web Portals

• Site that helps users locate information that is dispersed throughout the web;

• A portal presents and organizes information regarding other sites

Portal• Point of entry to the internet, such

as Yahoo and AOL websites

E – Business Strategy

• The deployment of enterprise resources to capitalize on technologies for reaching specified objectives that ultimately improve performance and create sustainable competitive advantage.

E – Business Model

• Method by which the organization sustain itself in the long term using information technology which includes its value proposition for partners and customers as well as its revenue streams.

• Include both internet and offline digital models.

E – marketing contribution to the E-Business Model

a. E-marketing increases benefits– Online mass customization– Personalization– 24/7 convenience– Self-service ordering and tracking– One-stop shopping

E – marketing contribution…continued

b. E-marketing decreases cost– Low-cost distribution of communication

messages– Low-cost distribution channel for digital

products– Lower costs for transaction processing– Lower costs for knowledge acquisition– Creates efficiencies in supply chain– Decreases the cost of customer service

E – marketing contribution…continued

c. E-marketing increase revenues– Online transaction revenues such as

product information, advertising and subscription sale, or commission/fee on transaction or referral.

– Add value to products/services and increase prices

– Increase customer base by reaching new markets

– Build customer relationships and increase current customer spending

Level of Commitment to E-Business

Pure play

Enterprise

Business process

Activity

Pure Dot-Com (Amazon)

Click and Mortar (eSchwab, most retailers)

Customer relationship management

Brochure ware E-mail

Business transformation

Effectiveness

EfficiencyLeve

l of

busi

ness

impa

ct

E-Business Model ClassificationActivity Level1. Order processing2. Online purchasing3. E-mail4. Content publisher5. Business intelligence (BI)6. Online advertising7. Online sales promotions8. Dynamic pricing strategies online

E-Business Model … continuedBusiness Level1. Customer relationship management

(CRM)2. Knowledge management (KM)3. Supply chain management (SCM)4. Community building online5. Database marketing6. Enterprise resource planning (ERP)7. Mass customization

E-Business Model…continuedEnterprise Level1. E-commerce, direct selling

sponsorship2. Portal3. Broker models (online exchange,

hub, online auction)4. Agent models (manufacturer’s

agent, catalog aggregator, meta mediary, shopping agent, reverse auction, buyers cooperative, virtual mall)

Activity Level of E-Business Models1. Online purchasing2. Order processing3. E-mail4. Content publisher5. Business intelligence (BI)6. Online advertising7. Online sales promotions8. Pricing strategies

Internet marketing activities1. Acquire a good domain name2. Emphasize ease of use3. Offer online value4. Satisfy consumer needs5. Explore URL and Web-

advertising techniques6. Attach signature tags7. Use of search engines,

directories, announcements, etc., as Marketing Tools

8. Explore viral marketing9. Distribute free newsletters10. Find your niche11. Gather affiliates12. Send targeted e-mails13. Produce and publish news

articles14. Distribute press release online

15. Run an auction16. Run contests17. Determine online communities18. Establish an online forum19. Distribute online coupons20. Conduct surveys21. Participate in a charitable

Web site22. Post links to Internet Malls or

Portals23. Participate in paid or free

Banner advertising24. Practice reciprocal Web linking25. Paid or free classified ads26. Host classified ads27. E-mail auto-responders28. Add a search engine29. Apply for awards

Digital Marketing vs Traditional Marketing

1. Digital marketing is spatial, not linear;

2. Digital promotions are generally non-intrusive;

3. Digital promotions appeal more to reason than emotions;

4. Hard sell does not work in digital marketing.

E-COMMERCE VIS-À-VIS E-MARKETING

AREA MARKETING COMMERCE

1. ADVERTISING Provides information and details to answer the inquiries of the customer

Simply describes the features and benefits of the product

2. TARGET MARKET Knows his/her target market well. Products needed/wanted by the target market

No specific target market

3. PROMOTIONS AND DISCOUNTS

Individually tailored to customer Standard for all customers

4. PRICING OF PRODUCTS

based on the ability of the customer to buy and examine the worth of the product

Set by seller without taking into consideration the customer

5. DEVT. OF NEW PRODUCTS

Created to cater to the needs and wants of the customer

Based on research and development

6. RELATIONSHIP WITH CUSTOMER

Continues to maintain and enhance long-term customer relationship

Long-term customer relationship is not that important.Immediate profit is what counts

7. DISTRIBUTION Through direct channels or intermediaries depending on the customer preference

Standard distribution determined by the intermediaries of the seller’s choice

Branding on the Web

• “rational branding” – offers to help web users to view an ad.

• It replaced the “emotional appeal” of a TV with a “cognitive appeal” of providing “functional assistance” (Schneider and Perry, 2000).

• Customer assistance, detailed product information, and personalized viewing of products are strategies to appeal to the cognitive side of customers.

• Brand extension – other strategy that can be employed aside from rational branding

BENEFITS OF E-MARKETING

1. The power-shift from sellers to buyer

• Getting the buyers’ attention and building customer relationship is the priority for every online business.

2. Market fragmentation• Market is being segmented further and further

into smaller fragments;• Marketers create products and services that

communicate more specifically to smaller groups.

• Example is Multiply.com which is an eCircle for people who are active in posting pictures, blogs, music and videos.

3. Death of distance• No more barriers in conducting business across nations.• Geographical boundaries are no more than technicalities

when it comes to internet

4. Time compression• Same with geography, time is also not a factor here as

communication between businesses or individuals or both can be done in real time.

5. Knowledge Management (KM)• Sales reports, demographics, customer account

information, and other valuable knowledge can had easily through the internet which can greatly help any business in their research and development.

6. I can Blog. I can Market• Gives the consumer an opportunity to liberally promote or

go against a product, which in a way is giving the user the power to market it.

7. Comment? Suggestions? Anyone?• The consumer has the power to immediately give his

views on the products, which enables the company to address it.

8. A virtual store only in e-marketing• it is virtual for it exists in a space that the user cannot see,

yet the purpose of its tangible equivalent is still fulfilled.

9. Customer Relationship Management (CRM)• Businesses can now establish CRM through record-keeping

and using the information to develop a more personal relationship with their patrons.

10. Supply Chain Management (SCM)• This is the coordination of distribution channels to deliver

products more effectively to customers.

11. Enterprise Resource Planning (ERP)• It is a back-office system that processes inventories,

order-taking, purchasing, and invoicing.

Companies need to be good in the following aspects:

1. Create interactions2. Integrate customer information across

systems 3. Analyze data4. Operate at internet speed

Infinite Loop• An efficient model of Integrated Marketing

because every effort contributes to a redefinition of the “right” customer which leads to more efficient spending on acquisition, monetization and retention strategies.

Right Customers• One who satisfies the ultimate objectives of the

site.

• They are what we call “suki” (loyal customer) who repeatedly visit and buy from the site.

• In finding the right customer through efficient marketing efforts, every peso spent in the cyber-site is worthwhile.

The New 4-Ps (the enlightened marketing model)

1. Probe (research); www.yehey.com is a remarkable search engine in the Philippines

2. People – analyze the demographics and psychographics of your audience

3. Proposition (the integration of Kotler 4Ps) – positioning of the brand

4. Postulation- offers an advocacy campaign to be remembered, patronized preferred for a long period of time

• “Probe on People, propose , and postulate.”

Guide for E-consumers1. Know who you’re dealing with2. Know what you’re buying 3. Understand the terms, conditions, and costs

involved in the sale4. Protect yourself when paying online5. Look out for your privacy6. Understand what recourse you have if you run

into problems with your purchase7. Get smart about e-commerce. Demand Friendly

policies and procedures

A consumer-friendly Web site disclose information about:

1. The Company2. The Product Service3. The Sale4. Consumer Protections

Methods of promoting product and services online

1. Pre-promotion campaign2. Reference3. News Releases4. Articles5. Search Engines6. Announcement Sites7. Announcement Lists8. E-zine Ads9. Publisher Swaps10.Opt-In Direct E-mail

Elements of Social Marketing

1. Understand “customer needs”2. Distribution Channels3. Pricing4. Opportunity Costs

Tips on understanding the principles of social marketing

1. Talk to your customers2. Segment your audience3. Position your product4. Know your competition5. Go to where your audience is6. Utilize a variety of approaches7. Use model that work8. Test, test, test9. Build partnership with key allies10.See what you can do better next time

Components of effective e-mail marketing

1. Privacy2. Relevance3. Control4. Rewards5. Brand strength6. Engaging interface/Personalization

Viral Marketing• E-mails forwarded from one source to another,

which contains incentives for those who forward the message to others.

• It is an integral part of a campaign strategy that is used to achieve objectives.

• Both the companies sending out the message and the ones passing it around benefit from this.

Why Web is different?

1. The web is networked2. The Web is instantaneous3. The web is non-linear4. The web is interactive5. The Web is unbounded6. The Web is metamedium

PROS AND CONS OF INTERNET ADVERTISING

The Pros of Internet Advertising

1. Web advertising is the least expensive of marketing a product.

2. Web advertising is an effective commercial communication.

3. Web advertising has an extensive reach.4. Web advertising continuously grows.

The cons of Internet Advertising

1. Does the Internet provide new customers? Or are they just the same ones who simply shifted/ changed buying behavior because of the hassle of going to malls?

2. Click rates alone are of little value3. Web advertising expansion continues4. Average CPMs decline further

Types of Internet advertising1. Banner ads – small rectangular boxes at the top or bottom

of Web sites containing text and pictures.

2. Sponsorships – companies sponsor special content on Web sites that carry news, and financial information.

3. Microsite – limited area on the Web managed and paid for by an external advertiser or company.

4. Search-related ads – hottest growth area. Relevant links to product or service offerings are listed alongside of search engine results.

5. Interstitials – often have video or animation that pop up between changes on a web site.

6. Content advertising – links ads not to keywords but to the content of Web pages.

7. Alliances and affiliate programs – when an Internet co. works with another, and they end up advertising each other.

Images of Consumer

1. Consumer as Chooser2. As Communicator3. As Explorer4. As Identity-Seeker5. As Hedonist6. As Victim7. As Rebel8. As Activist9. As Citizen

Consumer Response to Marketing Action1. Exposure – ensuring that the marketing offering is in the

right place for the target market to have access to it, at least potentially.

2. Attention – has 4 aspects. (Gaining attention, Holding attention, Leading attention, Distracting attention)

3. Perception – capturing the attention is not enough, the message should be perceived and understood in the intended way.

4. Retention – concerned with ensuring that it is remembered in the intended way.

5. Conviction – it aims to develop favorable beliefs, attitudes, and intentions towards the marketing offering.

6. Action – when consumer takes action, it is safe to say that the message has been effective and has targeted the right market.

7. Post-purchase – companies must offer after-sales services so that the whole experience of purchasing will be satisfactory.

4 major segment of users

1. Recreational consumers – access at home and use internet for personal applications.

2. Occupational consumers – access at home, mainly for business-related activities such as conducting work at home or running a small business

3. Corporate Users – access from workplace locations and uses internet for work applications.

4. Academic Users – access from academic locations and used for research and educational applications.

TRIMP media IN, TRI media OUT• Television, Radio, Internet, Mobile, and Print

• Electronic media offer numerous benefits in terms of information dissemination, product selection, target marketing, brand building, and consumer advertiser interactivity and intimacy.

• TRIMP is a departure from the traditional concept of promoting a product or a service.

• Technological advances have created a new electronic medium via the internet, together with the mobile medium.

Internet Advertising

Convergence of traditional advertising and direct response marketing.

Traditional Advertising

Internet Advertising

Direct Marketing

Strategic Planning Process

Strategic planning : the core of E-marketing plan

CustomersNeeds and other segmenting

dimensions

CompanyObjectivesResources

CompetitorsCurrent and Prospective

Segmentation and Targeting

Differentiation and Positioning

Product Place

Price Promotion

Target Market

Market Planning Process

Market PlanningSet objectives

Evaluate opportunitiesCreate marketing plans

Develop marketing program

Control marketing plans and program

Measure resultsEvaluate progress

Whole company strategic mgt planning.

Match resources to market opportunities

Implement marketing plans and programs

Main components of e-marketing plan• Identify your target audience• Set your objectives• Decide upon the marketing mix• Agree on a budget• Action planning• Measure your success

6 ways to make money in the Internet

1. Marketing existing products and services

2. Selling advertising space

3. Charging fees for accessible content

4. Charging fees for online transactions or links

5. Providing technical services

6. Writing books or presenting lectures on the Internet

Channels of Distribution

ManufacturerManufacturer’s

stores Consumers

Manufacturer Computer

Consumer

New Scheme

ManufacturerTV Set

Consumer

ManufacturerTransactional

Media Consumers

Types of Pricing Strategies1. Premium pricing2. Penetration pricing3. Economy pricing4. Price skimming5. Psychological pricing6. Product line pricing7. Pricing variations8. Optional product pricing9. Captive product pricing10.Product bundling11.Promotional pricing12.Geographical pricing

Transformation producing more effective online advertising

1. Solution over benefits2. Relationships over transactions3. Dialogue over monologue4. Integration over isolation

Secrets to successful branding in the Internet 1. Always start with a big idea;

2. Leverage the medium that delivers the greatest return on investment against MarCom and business objectives;

3. In the offline universe, a brand is created by the advertiser and expressed through media channel. Advertiser is in control.

In the online universe, the advertiser empowers the consumer to define an experience through which the brand is built. Consumer is in control.

4. Web has engendered a set of expectations inherent to the digital interactive medium: speed, control, and value.

5. Maximize your use of creative assets across all media and geographies, through an extranet-based asset management system.

6. Never forget to put language about global digital distribution in all your talent contracts.

7. Don’t be afraid to let ideas bubble up from their natural wellsprings

Digital Payment

• The goal of digital payment system is to acquire payment from a customer to a merchant

– Credit cards – E-mail-based First Virtual’s PIN System– ACH – the U.S. Automated Clearing House– DigiCash – invented by David Chaum– CyberCash/CyberCoin– SET Secure Electronic Transaction – works

similar way to CyberCash– Mondex – is not an Internet payment

system, a closed propriety system involving smart cards

END