Session 4: EmarketingSession 4: Emarketing

Internet MarketingInternet Marketing Traditional Sales IntermediaryTraditional Sales Intermediary Efficient distribution and greater reachEfficient distribution and greater reach Catalog salesCatalog sales Etailing (Electronic retailing)Etailing (Electronic retailing) B2B and B2C(Walmart, Amazon etc)B2B and B2C(Walmart, Amazon etc) B2C industry Rs 10000Crores(Online travel contributes 70%)B2C industry Rs 10000Crores(Online travel contributes 70%)

• Etailing: Rs 1100 croresEtailing: Rs 1100 crores• Online classifieds: Rs 820 CroresOnline classifieds: Rs 820 Crores• Digital downloads: Rs 250 CroresDigital downloads: Rs 250 Crores• Online subscriptions: Rs 30 CroresOnline subscriptions: Rs 30 Crores• OthersOthers

What Sells wellWhat Sells well Online TravelOnline Travel Computer hardware and softwareComputer hardware and software Consumer ElectronicsConsumer Electronics Office SuppliesOffice Supplies Sporting goodsSporting goods Books and MusicBooks and Music ToysToys Health and beautyHealth and beauty EntertainmentEntertainment Apparel and clothingApparel and clothing JewelleryJewellery

Characteristics of successful e-Characteristics of successful e-tailingtailing

High brand recognition High brand recognition A guarantee provided by highly reliable and well A guarantee provided by highly reliable and well

known vendorsknown vendors Digitized format(Software,Music,Videos)Digitized format(Software,Music,Videos) Relatively inexpensive items(office supplies)Relatively inexpensive items(office supplies) Frequently purchased items(groceries)Frequently purchased items(groceries) Commodities with standard specs(books)Commodities with standard specs(books) Well known packaged items(food, chocolates etc)Well known packaged items(food, chocolates etc)

Classification of distribution Classification of distribution channelschannels

Mail order retailers that go onlineMail order retailers that go online Direct Marketing from manufacturersDirect Marketing from manufacturers Pure-play e-tailersPure-play e-tailers Click and mortal e-tailersClick and mortal e-tailers Internet (online) mallsInternet (online) malls

E-tailing

Issues in e-tailingIssues in e-tailing Disintermediation and reintermediationDisintermediation and reintermediation CybermediationCybermediation HypermediationHypermediation Unbundling(e.g stock market)Unbundling(e.g stock market) Channel and price conflictsChannel and price conflicts Determining the right priceDetermining the right price Personalization(use of Cookies and customization)Personalization(use of Cookies and customization) Online fraudOnline fraud How to make customers happyHow to make customers happy

Market ResearchMarket Research Goal is to find information and knowledge that Goal is to find information and knowledge that

describes relationships among products, customers, describes relationships among products, customers, marketing methods and marketersmarketing methods and marketers

Discover marketing opportunities and plansDiscover marketing opportunities and plans Turn browsers into buyersTurn browsers into buyers Offline and online researchOffline and online research Market segmentationMarket segmentation

Market Segmentation Market Segmentation Dividing consumer markets into logical groups for conducting Dividing consumer markets into logical groups for conducting

market research, advertising and salesmarket research, advertising and sales

Based on web usage(related lifesyles, themes of internet Based on web usage(related lifesyles, themes of internet usage, internet attitudes and psychographic and demographic usage, internet attitudes and psychographic and demographic characteristics)characteristics)

Aid of tools such as data modelling and data warehousing, Aid of tools such as data modelling and data warehousing, data mining and web mining.data mining and web mining.

Market Segmentation Market Segmentation Diverse audienceDiverse audience Large studies more cheaper than traditional methodsLarge studies more cheaper than traditional methods Prediction of online buying behaviourPrediction of online buying behaviour What are the purchase patternsWhat are the purchase patterns How does individuals navigateHow does individuals navigate How do we identify real buyers from those who are browsingHow do we identify real buyers from those who are browsing What is the optimal web page designWhat is the optimal web page design Provides identification of early shift in consumer trendsProvides identification of early shift in consumer trends

Factors affecting online sales Factors affecting online sales Using a survey found followingUsing a survey found following

• Frequent update of contentFrequent update of content• Information on a companyInformation on a company• Provision for individual userid and passwordProvision for individual userid and password• Tight securityTight security• Availability of good privacy statementsAvailability of good privacy statements

Online market researchOnline market research Implementing web based surveysImplementing web based surveys Online focus groupsOnline focus groups Hearing directly from customersHearing directly from customers Customer scenariosCustomer scenarios Tracking customer movementsTracking customer movements Transaction logs(IPC.com)Transaction logs(IPC.com) Cookies, web bugs and spywareCookies, web bugs and spyware Web analyticsWeb analytics Tools used: supersurvey.com, surveymonkey.com, websurveyor.com, Tools used: supersurvey.com, surveymonkey.com, websurveyor.com,

clearlearning.com, zoomerang.comclearlearning.com, zoomerang.com

Online market research processOnline market research process Steps in collecting market research dataSteps in collecting market research data

• Define the research issue and target marketDefine the research issue and target market• Identify newsgroup and internet community to studyIdentify newsgroup and internet community to study• Identify specific topics for dicussionIdentify specific topics for dicussion• Subscribe to the pertinent group and register in communitiesSubscribe to the pertinent group and register in communities• Search discussion topic and content lists to find the target marketSearch discussion topic and content lists to find the target market• Search email discussion group listsSearch email discussion group lists• Subscribe to filtering services that monitor groupsSubscribe to filtering services that monitor groups• Read FAQs and other discussions Read FAQs and other discussions • Visit Chat roomsVisit Chat rooms

Online market research processOnline market research process Content of research instrumentContent of research instrument

• Post strategic queries to groupsPost strategic queries to groups• Post surveys on a websitePost surveys on a website• Offer reward for participationOffer reward for participation• Post strategic queries on a websitePost strategic queries on a website• Post relevant contents to groupsPost relevant contents to groups• Post detailed survey in special email questionnairesPost detailed survey in special email questionnaires• Create a chat room and build a communityCreate a chat room and build a community

Target audience of StudyTarget audience of Study• Compare audience with target populationCompare audience with target population• Determine editorial focusDetermine editorial focus• Determine contentDetermine content• Determine what web services to create each type of audienceDetermine what web services to create each type of audience

Limitations of Online market Limitations of Online market researchresearch

Too much data available, time consumingToo much data available, time consuming Solution: Use data warehousing and data mining(Business Intelligence)Solution: Use data warehousing and data mining(Business Intelligence) Accuracy of responsesAccuracy of responses Ethics and legality of web trackingEthics and legality of web tracking Loss of respondents due to technical glitchesLoss of respondents due to technical glitches Non verbal cues (55% of communication) is lostNon verbal cues (55% of communication) is lost Security issuesSecurity issues