Chapter 1: Introduction to the resources of electronic marketing

Introduction
1. Electronic commerce
The practice of satisfying consumer and business wants and needs
through online procurement.
Conducting of business communication and transactions over
networks.
2. Electronic marketing
The process to facilitate electronic commerce
3. Internet
An electronic communications and information medium
Has spawned software and hardware innovations designed
specifically to aid the convenience of online shopping.
4. Electronic marketing resources
Electronic tools which facilitate electronic transactions or
communications.
Collectively with internet, electronic marketing resources are being
integrated into traditional marketing programs, improving reach,
effectiveness, and efficiency of contact to targeted audiences.
Ex. Online customer research, email, viral marketing, instant
messaging, websites, palm-pilot like devices, intelligent shopping
agents for efficient selections (whether at the stock market or
supermarket), and online customer service.
5. Direct marketing tools
Amazon.com, eBay, and customer feedback are all important
activities of the IMC (Integrated Marketing Communication)
program.

The marketer enters the online age

1. Narrowcasting
To send data to a specific list of recipients.
Technological advances are enabling the marketer to identify
specific prospects and deliver specific products for consumption by
specific market.
2. Electronic tools
Tools implemented on or by means of a computer
Ex. Websites, listserv, discussion groups, Usenets, banner
advertising, online press releases, or online conferences.
3. Help you, the marketer, in determining the segmentation strategy before
taking the products or services to the market by utilizing online marketing
research and analyzing aftermarket reception by consumers through
online consumer service and surveys.

4. Electronic commerce is the conducting of business communications and

transmissions over networks and through computers, specifically the
buying and selling of goods and services, and transfer of funds through
digital communications.
5. Electronic commerce can also include all intercompany and intracompany
functions (marketing, finance, manufacturing, sales, and negotiation)
Electronic mail
EDI (Electronic Data Interchange) File transfer
Fax broadcasting (broadcasting information to a specific group using
fax)
Video conferencing (a discussion between people in different places
that can see and hear each other using electronic communications)
Workflow
Interaction with a remote computer
6. Electronic marketing is all the online or electronic-based activities that
facilitate manufacturing goods and services by the producer to satisfy the
wants and needs of the consumer.
7. Electronic marketing resources are those technological or electronic
marketing tools that are used to complete the marketing directives.
8. Typical technology marketing resources:
World Wide Web (WWW)
Interactive web sites
Shopping agents
Avatars (image representing users in a multiuser virtual reality
space)
Cyber shopping malls
Electronic coupons
Automatic information
CD-ROM presentations
Listening to the consumer speak
Marketing process
1. Situation analysis
A study of the marketing strengths, weaknesses, opportunities of an
existing business or other type of organization.
What or the objectives setting of the marketing process.
2. Marketing planning
The activities to construct a unique strategy of the marketing Ps.
3. Marketing Implementation
Activities which execute the strategies or ideas of the marketing
plan.
How
The importance of electronic marketing resources in business today
1. Company Communication
Communication processes and procedures used within a company.

2.

3.

4.

5.

Both internal and external messages, is a good example where

online marketing resources could be utilized.
E-mail address: the domain-based address that is used to send
electronic mail to a specified destination.
Electronic mail
I.
simple and permanent
II.
inexpensive
III.
wide-reaching communication tool
IV.
can communicate 24-hours a day and own timetable
V.
Eliminates telephone tag (messages are received while you
are in meetings, on the road, or sleep at night.
VI.
Positive performance-enhancing resource that has worked its
way throughout the corporation.
Productivity innovations
Technological advancements that increase productivity
Salespeople in the field are benefiting from online resources
Electronic tools speed salespeoples response time to customer
questions about inventory levels, product details and other business
inquiries.
Ex. Wireless faxes, e-mail on the run, and laptop order placements
Business-to-business (B2B) exchanges
Products or services of one company are sold to another company.
Online transactions business of 3 companies (cisco systems. Inc,
dell computer corp., and general electric Co-totaled about $3 billion
in 1997)
Customer Loyalty
Customer preference of a particular brand
Past behavior will usually predict future actions and information
such as this can help managers plan future sales or merchandising
events, manage inventory levels, or track brand movement.
Customer loyalty programs in which retailers track customer
purchases to reward them with points or discounts toward future
purchases.
Frequent flier miles program- how a particular airline can encourage
the business flier to concentrate his air travel to one airline. Ex.
Pepsi and Marlboro cigarettes have created bonus programs based
on purchase points.
Affinity Marketing-marketing strategy to a group who has a similar
interest. It is built on the belief that mutual benefits for the
consumer and the e-merchant will lead to long term relationshipnot one time purchase.
Globalized reach
Ability to reach global markets due to technological advancements.
Random surfing of the web will bring you to many colorful, contentladen sites that might impress you.
For the modest enterprises, a worldwide audience may be of little
benefit because of the economics involved.
Language differences might also pose problems with customer
service or technical support.

6. Competitive Intelligence
To compete with strategic intelligence about the competition.
The WWW site is an open book for your competitors to investigate
your product or service offerings, and you can do the same.
One staff member might be responsible for reading trade
magazines, monitoring discussion lists, or attending industry
conferences solely about servers.
Another person might oversee information on networking or areas
of emerging technology and another employee might observe a
close competitors action or innovations.
7. Cost Management
the ability to control and reduce cost using new technologies.
Email is an excellent substitution for long-distance telephone
charges or the cost of a postage stamp and stationary.
Electronic tools such as videoconferences or Electronic Data
Interchange (EDI) can replace expensive travel and lodging costs.
8. Partnering and logistics
Join others to handle the details of an operation.
Electronic marketing resources add to that perception and reality
because people can act more decisively and quickly by being
electronically linked.
Linkages may include internal intranets, or extranets, and external
partnership or collaborations with outsourced company.
Intranet-network that provide services within an organization but
which are not necessarily connected to the internet.
Extranet- extensions of a companies intranet out onto the internet.
Collaboration- working jointly with others.
EDI-Huge amount s of data are exchanged within or among
companies or branches.
Ex. Maybank- daily transactions must be routed to a central bank
both quickly and accurately.
Telecommuting- the practice of working at home and
communicating with coworkers through the phone, computer, and
modem. It gives the staff more options for work environments such
as at home, soccer field, library, or anywhere a personal computer
can be interfaced.
Asynchronous- A process whose execution is in the background.
Nature of information transmission, which allows a difference
between the time a message is sent and received. Ex.
Asynchronous transaction could be the purchase of bicycle parts at
2.30 A.M in which the order is processed at 8.30 the next morning.
9. Corporate recruitments
The process of enticing new and talented individuals to work for
your corporation.
Technology workers are in short supply.
Since technological whizzes spend their walking hours in front of a
color monitor, they are probably accessible through online
discussion lists or responses to Usenet postings.

Company can locate potential employees, as well as search for

consultants, government documents, specialty trades, or general
contractors.

Is E-Commerce for Large or Small Companies?

1. A smaller firm such as SoBe Beverages , began by employing its web site
to maintain distributor communications and expand consumer awareness
of its healthy beverages.
2. Their drinks bear exotic names (Black Tea, Elixir, Zen Blend, or
power).
3. The website began simply, displaying the bottled drinks with links to a
merchandise page and a US map depicting the sales territories.

4. Coca-cola and pepsi site are quite elaborate, featuring contests,

merchandise, historical information, demonstrations of pop culture.
5. These website do not encourage online product sales. The entertaining
sites are devoted to supporting the Coke and Pepsi Brands.

6.

What electronic marketing tools are shaping the future?

Categories of electronic marketing resources:
1. Online information and research accessible through public and
private database for domestic and international information needs.
2. Computer- and software-based resources: web-based advertising
and sales promotions, proprietary inventory management network
and software, geo-demographic and psychographic software,

proprietary database management, online customer service and

fulfillment, customer and prospect surveys, videoconferencing.
3. Telephony-computer hardware and software that performs functions
traditionally performed by telephone equipment. Ex. Fax and faxback systems, pagers, beepers, and telemarketing.
4. Network-based resources- Internet, World Wide Web sites, intranets,
extranets, news release network, electronic data interchange, and
transactions and authentication networks.
5. In-store resources- optical scanners, electronic coupon dispensers,
electronic kiosks, low frequency radio broadcasting, electronic price
shelf tags, and video shopping carts.
Electronic Marketing Resources, Strategic or Tactical?
1. Electronic marketing tools can be utilized in strategic planning and in
tactical execution.
2. Strategic aspect: a marketer can hone the longer-term direction of the
marketing plan by using electronic databases of government statistics,
trade association information, investigating competitive websites, or geodemographic software to profile selected market areas.
3. Ex. Marketer is working within a franchise organization and it is his
assignment to select new store locations. In store site selection, the
marketer might require situation assessment data on household growth,
population profiles, income and occupation figures, traffic counts or
psychographic characterizations to compare the potentials of different
market locales.
4. Tactical aspect: shorter-term activities that make the marketing
implementation come alive by putting the strategic ideas into action.
WWW is the medium for stimulating innovative development, gaining
awareness by prospects, keeping in touch with current customers via
surveys or email, improving corporate memory with prospect or customer
database that catalog purchase characteristics (product categories,
seasonal selections, amount spent, preference of all kinds or supporting
network systems.
5. The tactical: provide speed, accuracy, and convenience for the customer.
6. Benefits to marketer:
Customer loyalty
Time execution of marketing programs
Organizational efficiencies