E-Marketing Chapter 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 automobiles etc..
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B2C and B2B

In the past
B2B marketing, was considered to be less exciting than B2C FMCG manufacturers Coca-Cola and, Heinz

Currently
General Electric made the decision to totally procure online Cisco systems no longer do business with suppliers who can t take orders over the web Examples: Covisint
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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 this model
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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, adding value to products, widening distribution channels and boosting sales through running e-marketing campaigns using digital media channels such as search marketing, online advertising and affiliate marketing

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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, interactive kiosks, interactive TV or mobiles It is broader than e-commerce since it is not limited to transactions but includes all processes related 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

The UK Chartered Institute of Marketing define marketing as: The management process responsible for identifying, anticipating and satisfying customer needs profitably Taking a web site as a major part of e-marketing, how it can fulfill the definition of marketing
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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 datamining through customer data, sales and interests (web analytics) Online surveys (improve the site, requesting suggestions)

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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 the risks before embarking on e-marketing.

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Sloppy e-marketing

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Marketing objectives
Useful framework for developing objectives is the 5Ss
Sell Serve Speak Save Sizzle

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Marketing objectives

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Marketing objectives

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Objective1 Sell: using the Internet as a 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 insurance sales 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 as a 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 Internet as 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 or post 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 Internet as a communications tool

Chat rooms can be used as focus groups
Small groups of customers who discuss your product, 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 suitable incentive for filling the questionnaire
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Objective 3 Speak: Using the Internet as 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 in the 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 Internet for 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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Objective 5 Sizzle: Using the Internet as a brand-building tool

Using the Internet as a brand building tool
By increasing brand awareness and enabling interaction with the brand

Your Sizzle is communicated through your Online Value Propositions (OVPs)

What experience could a web site deliver that would be truly unique and representative of the brand? Give examples
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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 distribution channels It should identify target markets, positioning, Online Value Proposition, the choice of mix of digital media channels to acquire new customers, and contact strategies to welcome and develop existing customers
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E-marketing Tactics, actions and control

Tactics
Are the details of strategy Tactical e-tools include
Web site, opt-in e-mail, digital media channels such as paid search and display advertising, virtual exhibitions and sponsorship

Tactics require an understanding of what each e-tool can and cannot do Tactics may also involve where and how each tool is physically used, whether with a kiosk, interactive TV, mobile or alternatives (such as microwave)
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E-marketing Tactics, actions and control

Actions
Include project planning and implementation Also requires an appreciation of what can go wrong (libel, viruses, mail bombs, hackers and hijackers, 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 and control

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; what works for them; what theyre stopping)

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

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