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its dominance over the other technology is clearly visible. One of the major application areas where information technology has greatly changed the traditions of the society is the way in which the business is being conducted. Business are weaving IT more deeply into the very tapestry of their operations and today, more and more business activities are shifting to the electronic media. Emarketing has produced a revolutionary new way for businesses to communicate and interact with the customers. It has power to expand the businesses beyond the global boundaries by giving them competitive edge in the global marketplace. India is one of the countries where this trend seems to be catching on.The present paper provides a comprehensive overview of emergence , growth of emarketing,e-marketing strategies,e-marketing models,benefits of emarketing etc. These are some facts which show the popularity of e-business in the world today. In the business world, the digital environment is enhancing process and activities across the entire organization. Disciplines work together in cross functional teams using computer networks to share and apply knowledge for increasing efficiency and profitability. Financial experts communicate shareholders online, invent new ways to value risk and capital. Marketing has pretty much been around forever in one form or another. Since the day when humans first started trading whatever it was that they first traded, marketing was there. Marketing was the stories they used to convince other humans to trade.The methods of marketing have changed and improved, and we¶ve become a lot more efficient at telling our stories and getting our marketing messages out there. E-Marketing is the product of the meeting between modern communication technologies and the age-old marketing principles that humans have always applied. It provides new market place , more
one-to-one. targeting.opportunities to sell and market the product. and pricing of goods. E-marketing is the application of a broad range of information technologies for: (i) Transforming marketing strategies to create more customer value through more effective segmentation . advertising. Internet marketing is sometimes considered to have a broader scope because it refers to digital media such as the Internet. one of which being lower costs for the distribution of information and media to a global audience. promotion. powerful. (iii) Creating exchanges that satisfy individual consumer and organisational customers¶ objectives. and greater competitive advantages. and sales. E-marketing ties together creative and technical aspects of the Internet. WHAT IS E-MARKETING? The Internet has brought many unique benefits to marketing. (ii) More efficiently planning and executing the conception. The effects of e-marketing are already appearing in all areas of business. It is the term coined by I. This definition sounds a lot like that of traditional marketing. including design. and positioning strategies. e-mail. services and ideas. or many-to-many basis. differentiation. is a unique quality of the medium. distribution. It creates values by vastly lowering the cost of transferring many types of information. Another way to view it is that e-marketing is the result of information technology applied traditional marketing.M which means the continuous optimization of firm¶s . The interactive nature of Internet marketing. WHAT IS E-BUSINESS? E-business is important. from customer service to new product design. and wireless media.B. and unstoppable. one-to-many. development. both in terms of providing instant response and eliciting responses.
such as product buying and selling. there was much industry consolidation. levi strauss. In early 2000 one estimate listed 21 forms with 12 month sales growth between 100% and 500%-but all had negative profits. E-MARKETING IN CONTEXT PAST The first generation of e-business was like a Gold Rush. Imagination. This was the time when marketers returned to their traditional roots and rely on wellgrounded strategy and sound marketing practices. but only a handful brought anything to the bottom line. ? Intellectual capital rules. and entrepreneurship are more important resources than financial capital ESP . Many companies quickly attracted huge sales and market share. creativity. ? Death of distance. In that year over 500 internet firms have shut down in the united states alone. During DOT-COM shake out from 2000-2002. It permeates business processes. Some firms such as. e-commerce. ? Marketing fragmentation: mass market to one customer. New start-ups and well established businesses alike created a web presence and experimented a lot. ? Time compression: Online stores can be open 24/7. It includes digital communication. E-business involves attracting and retaining the right customers and business partners. and online research. PRESENT ? Power shift from sellers to buyers. Having gone through the boom and bust in developed nations we are now firmly entrenched trough of disillusionment. ? Marketing and technology: an interdisciplinary focus.business activities through Digital technology like computer and internet. ? Knowledge/database management is key. stopped selling online both because it was not efficient and it created channel conflict. E-COMMERCE is the subset of e-business focused on transactions.
Corporate-level business strategies including information technology components (Internet. . where legal. The final step is to determine the success of the strategies and plans by measuring results. Firms select e-business strategies and e-business models. This SWOT analysis leads into e-business and emarketing strategy. Organizations perform SWOT analysis to discover what strength and weaknesses they have to deploy against threats and opportunities.E-marketing flows from the organization¶s overall e-business strategies and selected business models. PERFORMANCE METRICS are specific measures designed to evaluate the effectiveness and efficiency of the e-business and e-marketing operations. databases. and so forth) become e-business strategies. market related and other environment factors external to the firm create both opportunities and threats. This is so important in today¶s e-business climate that media reports seem to be full of references to ROI E-BUSINESS STRATEGY 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. It starts with the business environment. Competitive. technological. and then marketers formulate strategy and create emarketing plans that will help the firm accomplish its overall goals. digital data.
4. Most strategic plans explain the rationale for the chosen objectives and strategies.T. E-MARKETING STRATEGY=MARKETING STRATEGY + INFORMATION TECHNOLOGY . Financial justification examines cost/benefit analysis and uses standard measures (ROI. Technical justification shows how the technology will fit and provide synergy with current information technology capabilities. Operational justification identifies and quantifies the specific process improvements that will result from the strategy. advertising and auctions have been around ever since the first business set up shop. In essence. selling. E-BUSINESS MODEL=BUSINESS MODEL + INFORMATION TECHNOLOGY Thus. NPV). strategic emarketing is where technology strategy and marketing strategy wed to form the organization¶s e-marketing strategy. What makes a business model an e-business model is the direct connection with I. There are four appropriate types of rationale: 1. 3.E-BUSINESS STRATEGY=CORPORATE STRATEGY + INFORMATION TECHNOLOGY. Strategic justification shows how the strategy fits with the firm¶s overall mission and business objectives. an e-business model is a method by which organization sustains itself in the long term using information technology which includes its value proposition for partners and customers as well as its revenue . E-MARKETING STRATEGY Strategic e-marketing is the design of marketing strategy that capitalizes on the organization¶s electronic or Information technology capabilities to reach specified objectives. E-BUSINESS MODELS Traditional business models such as retailing. 2.
This refers to the gathering of secondary and primary information about competitors. or electronic coupons. Knowledge management (KM) = combination of a firm¶s database contents + the technology used to create the system + the transformation of data into useful information and knowledge.streams. Companies use the Internet to send samples of digital products (e. Pricing strategies. firms build Web sites to draw groups of special-interest users. Supply chain management (SCM) = coordination of the distribution channel to deliver products more effectively and efficiently to customers. VARIOUS E-BUSINESS MODELS ACTIVITY BASED E-BUSINESS MODELS Business intelligence (BI). With community building.g. the internet allows media. For example. As an activity.. Affiliate programs = when firms put a link to someone else¶s retail Web . a firm presents different prices to various groups of customers. customers. markets. BUSINESS PROCESS LEVEL E-BUSINESS MODELS Customer relationship management (CRM) = retaining + growing business / individual customers through strategies that ensure their satisfaction with the firm and its products = keep customers for the long term + increase the number and frequency of their transactions. creating a new distribution model that cuts cost and increases value. E-business models that take advantage of internet properties may be seen as a part of a subset sometimes called internet business models. music or software). and more. Online advertising. the firm buys advertising on someone else¶s e-mail or Web site. music and software firms to deliver their products over the internet. With dynamic pricing. among other tactics. even at the individual level. Online sales promotions.Firms invite users to chat / post e-mail on their Websites to attract potential customers to site.
Online agents represent either the buyer or the seller and earn a commission for their work. and disseminating electronic information about customers. A portal is point of entry to the Internet.site and earn a commission on all purchases by referred customers. Manufacturer¶s agents represent manufacturing firms that sell complementary products to avoid conflicts of interest. The revenue stream in these models is commission or fee-based: ? The brokerage model are E*Trade (online exchange). brings together many catalog companies to . and eBay (online auction). ENTERPRISE LEVEL E-BUSINESS MODELS E-commerce refers to online transactions: selling goods and services on the Internet. either in one transaction or over time with an ongoing subscription. Online brokers are intermediaries that assist in the purchase negotiations without actually representing either buyers or sellers. ? A B2B exchange is a special place because it allows buyers and sellers in a specific industry to quickly connect. analyzing. such as the Yahoo! and AOL Web sites. They are portals because they provide many services in addition to search capabilities. Enterprise resource planning (ERP) = a back-office system for order entry. eliminating intermediaries such as retailers. and inventory control. Selling agents help a seller move product. Content sponsorship online is a form of e-commerce in which companies sell advertising either on their Web sites or in their e-mail. Database marketing = collecting. The catalog aggregator. Mass customization = Internet¶s unique ability to customize marketing mixes electronically and automatically to the individual level. and products to increase profits. purchasing. invoicing. prospects. Direct selling refers to a type of e-commerce in which manufacturers sell directly to consumers.
online retailers. There are two common types of e-marketing plans: . A special type of agent = the metamediary.The venture capital plan. Shopping agents help individual consumers find specific products and the best prices online (e. The reverse auction. www.com).mysimon.The napkin plan..g. and make tough decisions at critical junctures. A virtual mall is similar to a shopping mall in which multiple online merchants are hosted at a Web site. allows individual buyers to enter the price they will pay for particular items at the purchasing agent¶s Web site. it represents a cluster of manufacturers. CREATING AN E-MARKETING PLAN E-marketing plan: It is a guiding. allocate resources. The e-marketing plan serves as a roadmap to guide the direction of the firm. and content providers organized around a life event or major asset purchase Purchasing agents represent buyers.create a new searchable database of products for buyers. An online purchasing agent is called a buyer cooperative or a buyer aggregator. and sellers can agree or not. . . THE NAPKIN PLAN Dot-com entrepreneurs were known to simply jot their ideas on a napkin over lunch and then run off to find financing. dynamic document that links the firm¶s e-business strategy (e-business model) with technology-driven marketing strategies and lays out details for plan implementation through marketing management.
Angel investors.The golden exit plan is to go public and issue stock in an initial public offering (IPO). Implementation plan 6. An employee has an idea.Venture capitalists. THE VENTURE CAPITAL E-MARKETING PLAN Small to mid-sized firms and entrepreneurs with start-up ideas usually begin with a napkin plan without going through the entire traditional marketing planning process. . it is equity financed. it has to put together a comprehensive e-marketing plan.Private funds (friends and family).SITUATIONAL ANALYSIS . Evaluation plan STEP 1--.As soon as the stock price rises sufficiently. Budget 7.The big company version of this is the just-do-it. Sound planning and thoughtful implementation are needed for longterm success in business. E-Marketing strategy 5. . BUT as the company grows and needs capital. These plans sometimes work and are sometimes even necessary but they are not recommended when substantial resources are involved. Plan objectives 4. .Most of the time. the VC cashes out and moves on to another investment. and convinces management to just do it. . E-Marketing strategic planning 3.Sometimes bank loans. . Situation analysis 2. Where does an entrepreneur go for capital? . VCs look for a way to get their money and profits out of the venture within a few years: . A SIX STEP E-MARKETING PLAN 1.
An important part of the process is to define potential revenue streams. After reviewing the e-business goals. B2B descriptors include firm location. The demand analysis portion includes market segmentation analysis to describe and evaluate the potential profitability. These descriptors help firms identify potentially attractive markets. The firm¶s pricing philosophy may dictate online pricing strategies for electronic commerce. Segment in the B2C market uses descriptors such as demographic characteristics. Firms must also understand the segment trends ± are they growing or declining in absolute size and product use? The purpose of supply analysis is to assist in forecasting segment profitability as well as to find competitive advantages to exploit in the online market. geographic locations.E-MARKETING STRATEGY After reviewing the marketing and e-business plans. STEP 2--.The organizational e-business plan contains a SWOT analysis of the firm adopting e-business strategy of e-commerce. and size of various potential segments. including both demand and supply analysis. E-marketers take over from here. sustainability. perhaps focusing on e-mail. the markets currently served and so forth. for segmenting and targeting. size. The current marketing plan will be loaded with information of vital importance about the firm¶s products. marketers create supporting emarketing strategies. Using this and newly collected information. industry. accessibility. the marketer moves to strategy formulation. . TIER 1 E-Marketing Strategy Planning Marketers create market opportunity analysis (MOA). Only by carefully analyzing competitive strengths and weaknesses can a firm find its own performance advantages. The distribution plan will identify areas where the products are currently sold and suggest geographic gaps that might be receptive to ecommerce. type of need and more. collecting information on how to sell on web. selected psychographic characteristics and past behavior towards the product. marketers conduct strategic planning to help achieve firm¶s e-business goals.
Increase sales revenue 3. frequency of purchases. other objectives are also worthwhile. strengths and weaknesses prior to developing their emarketing initiatives. marketers must decide how to differentiate their products from competitors¶ products in a way that provides benefits perceived as important by the target. especially when the firm is using technology only to create internal efficiencies such as target market communication. Improve databases 6. Achieve customer relationship management goals such as increasing customer satisfaction. TIER 2 E-Marketing Strategic Planning In conjunction with tier 1 strategies. Reduce costs such as distribution or promotion cost 4. adding partners. their e-marketing initiatives. Based on an understanding of both competition and targets.Therefore the firm should review the competition. Achieve branding goals such as increasing brand awareness 5. customer retention rates 7. Improve supply chain management such as by enhancing member coordination. STEP 3---FORMULATE OBJECTIVES While e-commerce transactions are an exciting dimension of ebusiness presence. Increase market share 2. This is an iterative process because it is difficult to know what the brand position should be without understanding the offer that comprises the brand promise. In fact most e-marketing aim to accomplish multiple objectives such as : 1. optimizing inventory levels And so on«« STEP 4---E-MARKETING STRATEGY In this step marketers decide how to accomplish objectives through . Another tier 1 step toward defining e-marketing strategy includes identifying brand differentiation and positioning strategies. marketers design tier2 strategies.
ROI calculation. e-marketers must show how their intangible goals such as brand building or CRM. STEP 5---BUDGETING A key part of any strategic plan is to identify expected from an investment. which management uses to determine whether the effort is worthwhile. will lead to higher revenue down the road. relationship management tactics. Website forms. today¶s firms are quite ROI driven. its success depends on continuous evaluation. . online surveys are just some of the tactics firms use to collect information about customers. internal rate of return. The following are some of the revenues and costs associated with e-marketing initiatives: Revenue forecast Intangible benefits Cost savings E-marketing costs ? Technology costs ? Site design ? Salaries ? Other site development expenses ? Marketing communication STEP 6---EVALUATION PLAN Once the e-marketing plan is implemented. feedback e-mail. This is where marketers select marketing mix (4P¶s). E-marketers pay special attention to information gathering tactics because information technologies are especially adapted at automating these processes.creative and effective tactics. In general. As a result. This means e-marketers must have tracking systems in place before the electronic door opens. prospects and other shareholders. and other tactics to achieve the plan objectives and then devises detailed plans for implementation. These can be matched with the cost/benefit analysis.
E-MARKETING PRODUCTS Banner Advertisements Press Releases e-newsletter Landing Pages Personalized URL (PURLS) Blogs Newsgroup Surveys / Polls Forums / Message Boards Affiliate Programs Viral Campaigns Forums Help / FAQ Chat Live Help / Click to Talk Alerts Smart Pages Art / Photos / Design Demos On-line Presentations / CDs Catalogs Contests / Coupons .
the eBay community includes more than a hundred million registered members from around the world. Impressions: How many people saw the banner ad Click-Thru: How many people clicked the banner ad Some kinds of Banners: Pop-up Ad : Opens above the page in a DIV or new Browser Hover Ad : Opens or expands when user mouses over Live Ad : Content changes from a feed For example- PRESS RELEASES "After being picked-up by over 1.000 page views as the result of a single press release distributed on your service. Today. On-line Seminars White Papers / Case Studies BANNER ADDS The web banner market is particularly attractive to advertisers." GARY CRANDELL--"We have achieved as many as 106. and ending up on E*TRADE radio as a result. For our money. We consider you an essential partner in any product marketing campaign. Where else can you put out a measly $200 and be seen by such high-quality players? That's worth more than GOLD to those of us in the stock trading business. People spend more time on eBay than any . we're more than happy with the value proposition you folks have put together." SWOT ANALYSIS OF Ebay Founded in September 1995. as they can gauge their response better than for other forms of advertising mediums and also see near instant results.190 PR Web subscribers. eBay (Nasdaq: EBAY) is The World's Online Marketplace® for the sale of goods and services by a diverse community of individuals and small businesses. nothing beats the distribution and re-distribution that PR Web creates through your quality partners.
and whereby awards are given to the most genuine of eBayers. where strong interrelationships occurs. Pierre Omidyar. The brand has grown tremendously over the decade or so since its conception. was just 28 when he sat down over a long holiday weekend to write the original computer code for what eventually became an Internet megabrand. there are millions of items available through auction-style and fixed-price trading STRENGTHS eBay is the leading global brand for online auctions. e-bay pioneers communities built on commerce. making it the most popular shopping destination on the Internet.' . Buyers and sellers register with the company and data is collected by eBay on individuals. for example where buyers and sellers leave feedback for each other. Other companies with such a strong position include Hoover for vacuum cleaners.other online site. national and international basis through an array of websites that focus on commerce. This is the Business-toConsumer (B2C) side of their business. eBay brings together millions of people every day on a local. and inspired by opportunity.' or that someone is going 'to eBay. sustained by trust. Today it is common to hear that someone is 'ebaying' or is an 'eBayer. However the strong customer relationships are founded on a Consumer-to-Consumer (C2C) business model. payments and communications. The term 'eBay' has become a generic term for online auctions. The company exploits the benefits of Customer Relationship Management (CRM). a French entrepreneur. On any given day. The eBay Marketplace creates a powerful online platform for the sale of goods and services by a passionate community of individuals and small businesses. The company is a giant marketplace used by more than 100 million people to buy and sell all manner of things to each other. and Google for search engines.
Skype's software lets PC users talk to each other for free and make cut-price calls to mobiles and landlines. Western Europe and the USA still have many potential consumers that have yet to discover the benefits of online auctions. eBay has been buying up firms . Aspirating consumers are a growing segment in many developing nations. OPPORTUNITIES Acquisitions provide new business strategy opportunities. Remember products have life cycles that eventually come to an end.in an effort to increase the number of services it offers to consumers and keep its profits growing. and such products are ideal for selling and buying on eBay. As technology improves such a weakness is less and less of an issue. However. New and emerging markets provide opportunities (Market Development). the eBay model does leave itself open to a number of fraudulent activities. Countries include China and India. not eBay. There are also still opportunities in current markets (Market Penetration). In the past both eBay and its payment brand Paypal have encountered shutdowns and outages. . eBay has agreed to buy online telephone company Skype Technologies in a deal reported to be worth $2. As with many technology companies. consumers are becoming richer and have more leisure time than previous generations. The weakness is that unscrupulous individuals can exploit the C2C business model.including payment system PayPal . Other forms of theft could include the redistribution of stolen goods.6 billion. There. Fraud includes counterfeit goods being marketed to unsuspecting (and suspecting!) eBayers.WEAKNESSES The organizations works tremendously hard to overcome fraud. It should be pointed out that fraud and theft are problems with individuals. Often the company deals with such activities very quickly. systems breakdowns could disturb the trading activities of eBay.
the cost is passed on to the consumer in terms of delivery and postal fees. the brand is attacked by unscrupulous individuals. As with weaknesses above. Attack by illegal practices is a threat. if a credit card company such as Visa or Mastercard imposed a charge for online transaction. Yahoo! dominates the Japanese market. businesses have the advantage of appealing to consumers in a medium that can bring results quickly. If fuel prices were to rise. Therefore. GROWTH-Internet marketing as of 2007 is growing faster than other . For example delivery charges and credit card charges. Logos and the design of the pages look authentic. However they are designed so that you input private information that the thieves can use to take passwords and identifications.THREATS As with many of the global Internet brands. For example e-mails are sent to unsuspecting eBayers pretending to come from eBay. the total cost of the same items would increase with similar consequences. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis. The nature of the medium allows consumers to research and purchase products and services at their own convenience. -so beware! Some costs cannot be controlled by eBay. success attracts competition. This could make the overall cost of an auctioned item too expensive. BENEFITS OF E-MARKETING CVP-Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Similarly. Companies can reach a wide audience for a small fraction of traditional advertising budgets. For example. International competitors competing in their domestic markets may have the cultural experience that could give them a competitive advantage over eBay. In fact eBay has found that it has met with other USA-based Internet companies when trading overseas.
e-Marketing opens up new avenues for smaller businesses. among other things. but are an important part of ascertaining the value of media campaigns. on a much smaller budget.e. While traditional media costs limit this kind of reach to huge multinationals. eMarketing includes. With a two way communication channel. this scope can only grow. public relations. and overall efficiency of Internet media are easier to track than traditional off-line media²through the use of web analytics for instance²Internet marketing can offer a greater sense of accountability for advertisers. information management. Imagine you¶re reading your .Internet marketing is able to. e-Marketing facilitates conversations between companies and consumers. With the range of new technologies becoming available all the time. how the Internet affects in-store sales) rather than siloing each advertising medium. The effects of multichannel marketing can be difficult to determine. IMMEDIACY. in ways never before imagined. to access potential consumers from all over the world. Because exposure. response. INTERACTIVITY-Traditional marketing is largely about getting a brand¶s message out there. SCOPE-Internet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide range of products and services. customer service and sales. companies can feed off of the responses of their consumers. REACH-The nature of the internet means businesses now have a truly global reach. making them more dynamic and adaptive.. provide an immediate impact.types of media. Marketers and their clients are becoming aware of the need to measure the collaborative effects of marketing (i.
it¶s not that easy for you. DEMOGRAPHICS AND TARGETTING. meaning that within a few short clicks you could have booked a test drive or ordered the iPod. Buying power is not all though. Savvy marketers who know where to look can quite easily find access to the niche markets they wish to target. have greater buying power and could perhaps be considered as a population group skewed towards the middleclasses. the consumer¶s buying cycle is speeded up and advertising spend can go much further in creating immediate leads.to take the step from hearing about a product to actual acquisition. it¶s easy to make that step as simple as possible. maybe BMW¶s latest luxury sedan or Apple¶s latest iPod offering. Internet users. You see a double-page advert for some new product or service. And all of this can happen regardless of normal office hours. Effectively. . With this kind of traditional media. Internet marketing makes business hours 24 hours per day. the consumer. 7 days per week for every week of the year. With e-Marketing. the demographics of the Internet are a marketer¶s dream.favourite magazine. The nature of the Internet is such that its users will tend to organise themselves into far more focussed groupings. considered as a group. By closing the gap between providing information and eliciting a consumer reaction.Generally speaking.
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