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E-MarketingChapter 1: Introduction to

e-marketing

Dr.Ahmad Shraideh

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The wired-up world Marketplace migrates into the E-marketspace

Internet continues to grow rapidly and across borders In China there are more mobile phone subscribers

than the population of the US In Japan, the usage of the web by mobile user nearly

equals those by PC Everything will be wired up connected to the

Internet Interactive digital TV and radio, Cars, mobile

phones, palm tops, planes, trains and automobilesetc..

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C2B and C2C C2C

Such as eBay and communities of interests such as sport, films Encouraged by the growth of social networks such as Facebook and

MySpace and their business equivalent They are reducing consumption of other forms of digital media and

traditional media Companies need to develop a strategy to engage these consumers

C2B Customers developing their own content online, known as user generated

content (UGC) where businesses

Play a significant role in some B2B or B2C sectors In this model, a potential buyer approaches a marketplace of sellers who(the seller) then compete for the sale

Priceline and other price comparison sites such as Kelkoo follow thismodel

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B2C, B2B, C2B and C2C


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e-definitions

E-commerce: Selling and purchasing online the ability to

transact online This includes e -tailing, online banking and

shopping Does not include the marketing nor the back

office administration processes


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e-definitions

E-business Has a broader perspective than E-commerce It involves the automation of all the business

processes in the value chain from purchasing of raw materials, to production, stock holding,distribution and logistics, sales and marketing,

after sales, invoicing, debt collection and more It creates the ability to run a business online

This includes e-marketing and e-commerce


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e-definitions

E-marketing Be closer to customers to understand them better

and to maintain a dialogue with them, addingvalue to products, widening distribution channelsand boosting sales through running e-marketingcampaigns using digital media channels such assearch marketing, online advertising and affiliatemarketing


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e-definitions

E-marketing It also includes using the website to facilitate

customer leads, sales and managing after sales

service Simply e-marketing is marketing online whether

via web sites, online ads, opt-in e-mail, interactivekiosks, interactive TV or mobiles

It is broader than e-commerce since it is notlimited to transactions but includes all processesrelated to marketing


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Right Touching A Multi-channel Communications Strategy

Using web, e-mail, phone, direct mail Customized for Individual Prospects and

Customers forming segments Across a defined customer lifecycle In order to

Delivers the Right Message Featuring the Right Value Proposition (product,

service or experience) With the Right Tone at the Right Time


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THE CUSTOMER-LED BUSINESS

How a web sit may fulfill the def. of marketing Identify needs:

From customer comments, requests and complaints

solicited via the web sites e -mail, chat rooms Observing new customer groupings identified by data-

mining through customer data, sales and interests ( webanalytics )

Online surveys (improve the site, requestingsuggestions)


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THE CUSTOMER-LED BUSINESS How a web sit may fulfill the def. of marketing

Anticipate customer needs By asking customers questions and engaging them in a dynamic

dialogue built on trust Collaborative filtering (amazone.com) Sophisticated profiling techniques using (data mining and cookies)

Satisfy needs: Prompt responses, punctual deliveries, order status updates,

helpful reminders, after sales services and added value services

combined with the dynamic dialogue The dialogue maintains permission to continue communicating and

then adds value by delivering useful content in the right context


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Sloppy e-marketing

Cause Unclear objectives Lack of strategy Miserable execution

Marketers should assess and minimize therisks before embarking on e-marketing.


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Sloppy e-marketing


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Marketing objectives

Useful framework for developing objectives isthe 5Ss

Sell Serve Speak Save Sizzle


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Objective1 Sell: using the Internet asa sales tool Increase the direct online revenue contribution

for different products and different markets E.g. Defines the proportion of sales transactions completed

online

For example, a bank might try to achieve 15% of its insurancesales online Increase is the indirect online revenue

contribution E.g. Define the proportion of sales that are influenced by digital

communications Increase the reach of the web site within its

target audience


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Objective1 Sell: using the Internet asa sales tool Challenge

Anything can be sold online(give examples) Regulating what is reasonable and proper to sell The impact on some industries (Dell, IBM, General

Electric, Ford and GM) Companies must be able to sell or transact online to meet

these customers new online needs Many products and services are partly bought online,

How? Mixed-mode selling must be considered

Organizations have to be able to sell both online and offline(buy online or just to browse web site)


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Objective 2 Serve: Using the Internetas a customer-service tool How can a web site help customers, improve their

experience or add value to their experience? By adding value for customers at different stages of the

buying process, whether pre-sales, during the sale orpost sales support

By increasing switch cost E.g:

Newspapers, no time constrains Using an online forum, Q &A service, an appointment booker Fedex, GE and Dell add value through their web sites all the time


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Objective 3 Speak: Using the Internetas a communications tool Chat rooms can be used as focus groups

Small groups of customers who discuss yourproduct, pack, advertisements, etc

Using online questionnaires May annoy web visitors, if they were long Keeps them short (builds the questions across

pages) or rewarding visitors them with a suitableincentive for filling the questionnaire


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Objective 3 Speak: Using the Internetas a communications tool Using digital media channels to speak to your audiences

on other sites Search engine marketing

Search engine optimization (SEO) to increase companies position inthe natural search listings

Paid search marketing Online Public Relations

Through third party web site (Social network and blogs) Online partnerships

Interactive advertising Opt-in e-mail Viral marketing


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Objective 4 Save: Using the Internetfor cost-reduction Saving can be done within

Media channels Customer service

Transactional costs (Negotiate better) Print and distribution (reports, user manuals, saving

storage space , paper, fuel, money and time) Self-service which will lead to customer satisfaction

(Banks, fedex, zajel , FAQ etc) Extra revenues through advertising

Cost per Acquisition (CPA) = Cost Per Click/conversion rate


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E-strategy Strategy summarizes how to achieve objectives It is influenced by

Objectives prioritization (sell, serve, speak, save and sizzle) The resources available

E-marketing strategy Is a channel strategy where electronic channels and digital

media support other communications and distributionchannels

It should identify target markets, positioning, Online ValueProposition, the choice of mix of digital media channels toacquire new customers, and contact strategies to welcomeand develop existing customers


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E-marketing Tactics, actions andcontrol Tactics

Are the details of strategy Tactical e-tools include

Web site, opt-in e-mail, digital media channels such as paidsearch and display advertising, virtual exhibitions andsponsorship

Tactics require an understanding of what each e-toolcan and cannot do

Tactics may also involve where and how each tool isphysically used, whether with a kiosk, interactive TV,mobile or alternatives (such as microwave)


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E-marketing Tactics, actions andcontrol Actions

Include project planning and implementation Also requires an appreciation of what can go

wrong (libel, viruses, mail bombs, hackers andhijackers,

Create a contingency (emergency) plan

What happens when the server goes down? What happens if one of the e-tools is not working?


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E-marketing Tactics, actions andcontrol Control

Involves assessing the results against objectives Regular review of what s working and what s not

with continuous improvement Which tools are giving the best return on investment? Why? Measuring number of hits, number of conversions, churn

rate Control also includes competitive intelligence

Monitoring your competitors ( what theyre doing; whatworks for them; what theyre stopping)

E-tactics, or even the e-strategy can be changed if necessary

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Documents

218 Chapter 1