FALL 2010

Master of Business Administration – MBA Semester 4

MK0008 – E-Marketing - 2 Credits
(Book ID: B0922)
Assignment Set- 1
30 Marks
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 a. What is e-marketing? What are its benefits? (6 marks)
E-marketing, also referred to as online marketing or internet marketing, is marketing that uses the
Internet. The Internet has brought many unique benefits to marketing, including low costs in
distributing information and media to a global audience.

E-Marketing can also be defined as a subset of e-Business that utilizes electronic medium to perform
marketing activities and achieve desired marketing objectives for an organisation. Internet Marketing,
eMarketing

E-marketing strategy includes all aspects of online advertising products, services, and websites,
including search engine marketing, public relations, social media, market research, email marketing,
and direct sales.

E marketing is the product of the meeting between modern communication technologies and the

age-old marketing principles that humans have always applied.

The interactive nature of Internet media, both in terms of instant response, and in eliciting response at
all, are both unique qualities of Internet marketing. E-marketing ties together creative and technical
aspects of the internet, including design, development, advertising and sales. E-marketing methods
include search engine marketing, display advertising, e-mail marketing, affiliate marketing, interactive
advertising and viral marketing. E-marketing is the process of growing and promoting an organization
using online media. E-marketing does not simply mean ‘building a website’ or ‘promoting a website’.
Somewhere behind that website is a real organization with real goals. The E-marketer selects the best
of these vehicles, given the organization’s goals and audience.

Interactive Marketing and Mobile Marketing for example, are all a form of e-Marketing.

Benefits of e-marketing

E-marketing gives businesses of any size access to the mass market at an affordable price and,
unlike TV or print advertising, it allows truly personalised marketing. Specific benefits of e-marketing
include:

 Global reach - a website can reach anyone in the world who has internet access. This allows
you to find new markets and compete globally for only a small investment.
 Lower cost - a properly planned and effectively targeted e-marketing campaign can reach
the right customers at a much lower cost than traditional marketing methods.
 Trackable, measurable results - marketing by email or banner advertising makes it easier to
establish how effective your campaign has been. You can obtain detailed information about
customers' responses to your advertising.
 24-hour marketing - with a website your customers can find out about your products even if
your office is closed.
 Personalisation - if your customer database is linked to your website, then whenever
someone visits the site, you can greet them with targeted offers. The more they buy from you, the
more you can refine your customer profile and market effectively to them.
 One-to-one marketing - e-marketing lets you reach people who want to know about your
products and services instantly. For example, many people take mobile phones and PDAs
wherever they go. Combine this with the personalised aspect of e-marketing, and you can create
very powerful, targeted campaigns.
 More interesting campaigns - e-marketing lets you create interactive campaigns using
music, graphics and videos. You could send your customers a game or a quiz - whatever you
think will interest them.
 Better conversion rate - if you have a website, then your customers are only ever a few
clicks away from completing a purchase. Unlike other media which require people to get up and
make a phone call, post a letter or go to a shop, e-marketing is seamless.

b. List the key features of the web. (4 marks)

The web leverages the key features of the Internet and makes them widely accessible to the public.
Key features of the web in particular are its ease of use, universal accessibility, and ability to be
quickly searched:

 Ease of use. The web can be immediately used by anyone already familiar with a computer
window. The only special features are links, which are as natural and intuitive to use as
pressing a button. This ease of use enabled the rapid adoption of the web in the 1990's, and
led to the establishment of the Internet around the world.

 Universal access. The open design of the web makes it easy to build web browsers for a
wide range of devices. Web browsers have been deployed on cell phones and personal
organizers, and the web is now the standard interface for providing access to information.

 Search capabilities. The development of search sites greatly multiplied the power and
usefulness of the web by providing the capability to effectively search the content of millions
of web pages in seconds. Search sites significantly enabled the web to realize  an automated
library system.

Q.2 a. Give a note on internet privacy. (3 marks)

Internet Privacy
The concern about privacy on the Internet is increasingly becoming an issue of international
dispute. Citizens are becoming concerned that the most intimate details of their daily lives
are being monitored, searched and recorded. According to the Encyclopedia Britannica 81
percent of internet users are concerned about threats to their privacy while online. With
today’s growing use of computers and the internet a whole new world know has cyberspace
has taken shape. 

This electronic environment does not obey the same rules as the physical environment
within which we live. People now have the opportunity to access an infinite array of
information or to communicate with people on earth or in outer space. The technology for
this world is progressing at a profound pace and it seems as if something revolutionary is
being implemented all the time. But along with this innovative technology, in a world of few
regulations, come many opportunities for infringement upon user’s rights that were
implemented in the real world. Computers and the internet are merely tools to access this
 median between users and the massive amounts of information available.

b. Discuss the challenges of e-marketing in future? (7 marks)

challenges of e-marketing in future:

 Underhanded marketing may get worse. The Internet has plenty of both cooperation and
cutthroat competition. Because humans tend to be short-term thinkers, many e-marketers will
choose highly competitive strategies over cooperative ones.
 Governments will get more involved. The initial high ethical standards on the Web have not
held firm. A growing epidemic of fraudulent sales practices online will increase the concern for
consumer protection, raising calls for more government oversight.
 "Branding" will rival price. Building consumer trust relationships will drive many e-businesses.
Trust comes from positive media exposure, connection to other trusted institutions through
marketing alliances, and having a good reputation before marketing online.
 Basic marketing principles will hold true. Successful e-marketers will continue to offer the
classic elements of a quality sales pitch: something new and surprising, something useful or
essential, or something that touches the emotions.

Q.3 Explain the following terms used in e-marketing: Intellectual property, Safe Harbor
principles and Click-wrap agreement. (10 marks)

Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and
symbols, names, images, and designs used in commerce.

Intellectual property is divided into two categories:  Industrial property, which includes inventions
(patents), trademarks, industrial designs, and geographic indications of source; and Copyright, which
includes literary and artistic works such as novels, poems and plays, films, musical works, artistic
works such as drawings, paintings, photographs and sculptures, and architectural designs.  Rights
related to copyright include those of performing artists in their performances, producers of
phonograms in their recordings, and those of broadcasters in their radio and television programs.  For
an introduction to IP for non-specialists, refer to:

A safe harbor is a provision of a statute or a regulation that reduces or eliminates a

party's liability under the law, on the condition that the party performed its actions in good faith.
Legislators include safe-harbor provisions to protect legitimate or excusable violations. An example of
safe harbor is performance of a Phase I Environmental Site Assessment by a property purchaser:
thus effecting due diligence and a "safe harbor" outcome if future contamination is found caused by a
prior owner.
These principles must provide:

 Notice - Individuals must be informed that their data is being collected and about how it will
be used.
 Choice - Individuals must have the ability to opt out of the collection and forward transfer of
the data to third parties.
 Onward Transfer - Transfers of data to third parties may only occur to other organizations
that follow adequate data protection principles.
 Security - Reasonable efforts must be made to prevent loss of collected information.
 Data Integrity - Data must be relevant and reliable for the purpose it was collected for.
 Access - Individuals must be able to access information held about them, and correct or
delete it if it is inaccurate.
 Enforcement - There must be effective means of enforcing these rules.

Click Wrap definition : Web version of the shrinkwrap licensing agreement that comes

into force when an online buyer or user clicks on the 'I Agree' button on
the webpage to purchase or download a program.

The concept of traditional contract law understands that for a party to be bound by the terms of the
contract, a party must have first agreed to it’s terms and consequently signed it.

Since the 1980’s PC use has continued to grow by phenomenal amounts in both business and
residential environments. It’s hardly surprising that software has been released at a similar pace to
run on all these PC’s, more recently with the advent of the Internet software is easily available for
direct download to the end-users machine.

Software companies need to protect themselves from damages claims stemming from damage
caused by improper and proper use of their software by end users and profits lost by users making
illegal copies of their software among other things. This is done through a contract.

It would be virtually impossible and very impractical to have the buyer of a software package to sign a
traditional paper based contract relating to the software prior to purchasing it as in the IT industry
software is rarely sold directly in person by the publishing company to the end-users.

Thus there needed to be some mechanism whereby the purchaser agrees to the terms of the license
without actually signing on the dotted line. Enter shrink-wrap and click-wrap contracts.

Shrink-wrap contracts, the earlier of the two are the terms and conditions that accompany software
distributed in a retail computer store. Shrink-wrap contracts usually read something like “By opening
the packaging on this box you agree to the terms and conditions of the license.” The terms and
conditions of the license are more often than not located inside the box.

Click-wrap contracts were developed in response to the massive growth of the Internet and Internet
technology. A party enters into a click-wrap contract when they click the “I agree” or “I accept” button
which are preceded by terms and conditions. Examples of where click-wrap contracts can be regularly
seen include before you download software, before you book an airline ticket online, before you
download music and many more.

Both shrink-wrap and click-wrap contracts have their advantages and disadvantages for the consumer
and the company offering the terms and conditions themselves. This report focuses however on the
advantages of click-wrap contracts over shrink-wrap contracts and hence I will now continue to
discuss this.

The main advantage of click-wrap contracts over shrink-wrap contracts to me seems to be the fact
that with click-wrap contracts you’re given a clear opportunity to read through the terms and
conditions of the contract before you agree to them. 
Master of Business Administration – MBA Semester 4
MK0008 – E-Marketing - 2 Credits
(Book ID: B0922)
Assignment Set- 2
30 Marks
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Give an account of customer behaviour in a B2B e-marketing. (10 marks)

Internet-based business-to-business (B2B) e-commerce is conducted through industry-sponsored

marketplaces and through private exchanges set up by large companies for their suppliers and
customers. Of course, companies also sell to business customers through their own Web sites.

Business-to-business (B2B) e-commerce is significantly different from business-to-consumer (B2C) e-

commerce. While B2C merchants sell on a first-come, first-served basis, most B2B commerce is done
through negotiated contracts that allow the seller to anticipate and plan for how much the buyer will
purchase. In some cases B2B is not so much a matter of generating revenue as it is a matter of making
connections with business partners.

B2B is far and away the largest sector of e-commerce. Comparing B2B with B2C e-commerce, the U.S.
Department of Commerce reported that B2B online sales accounted for 90 percent of all online
transactions. It attributed the high percentage of B2B e-commerce sales to the longstanding use of
proprietary networks, such as EDI, in the B2B sector. The manufacturing industry was the leader in e-
commerce.

The internet B2B transactions in industrial inputs such as steel, chemicals, automobile components, etc.
have been most successful. These businesses have been benefited in the following ways by such internet
transactions:

· Reduced procurement costs by resorting to e-tendering, reverse auction, etc.

· Online ordering resulting in substantial order cycle time reduction & increased customer satisfaction.
· Tighter inventory control & fewer out of stock situations due to rapid inventory adjustments.

Q.2 a. What are the targeting strategies involved for e-marketing? (7 marks)

Target internet marketing is accomplished using a variety of media types and each
needs different strategies. Today's internet is so full of product eBooks, coaches, and
video courses that you really need to have some effective marketing knowledge and to
develop a slight edge. Putting these pieces of you marketing plan together will not only
help build your list, but be a great benefit to grow your internet business.

To achieve this goal, you'll need to know where you want to go, and how to get there.
So unless you are an advertising professional, targeted internet marketing may be a new
skill you will need to learn. And especially if you are completely new to internet
marketing, you must understand that each type of media will require a willingness to
learn, applying the new skills, and testing the market repeatedly.

By doing some research you can learn what your targeted market wants to know or
needs. Do some Market research on couple of forums, ask some questions, and gather
information. When you keep these answers in mind you will undoubtedly come up with
an effective internet marketing plan. You may have the best product available, but if you
can't get the word out, you simply don't stand a chance making an online income.
Few marketing techniques :

CLASSIFIED AD MARKETING:Marketing with online classified ads is very popular because

it is cost effective (many offer free ad placement) and it does work. They work as long
as they have all the correct, informative parts, and are placed where your prospective
customers search for the specific items they are looking for, which is what you have to
offer. Before you get started with classified ad marketing, you want to make sure you
get it right the first time. Nobody, not even ad writing professionals, can put together a
money making classified ad in minutes and nobody gets it perfect on their first try. Keep
in mind that you will want to create several variations of each ad that are well written,
full of valuable content, attract attention, and give them a desire to click through.

ARTICLE MARKETING:Article marketing is also a good source to use for your targeted
niche. Writing articles is actually easier than you think. Generally they need to be at
least 400 words, and by doing some targeted research it is easy to come up with ideas.
And each time you learn something new, whether it is a review of a product or a new
found area of your market, you can write an article on what you learned. As for articles,
you might not see an immediate market reaction, but think about it. Every article
submitted and accepted will be available for many years, and every article has a specific
topic that will be viewed by someone somewhere that is looking for what you have to
offer.

SOCIAL MEDIA MARKETING:Social media marketing is a more broad type of marketing

than searching for the specific customers that want your product. Because of the "social"
aspect of sites, such as Twitter, Facebook, and LinkdIn, you will start out with your
specific niche market, but in a more relaxed back yard barbeque atmosphere. However,
remember your followers will have followers, and any one of them may be looking for
the same thing. Don't forget, word of mouth or even word of website, is the best form of
advertising, period.

Target Market: When we analyzed the environment, we saw that there were existing and
emerging market segments. When we identified opportunities

b. What do you mean by e-CRM? (3 marks)

e CRM : eCRM as activities to manage customer relationships by using the Internet, web browsers or
other electronic touch points. The challenge hereby is to offer communication and information on the
right topic, in the right amount, and at the right time that fits the customer’s specific needs.

Channels through which companies can communicate with its customers, are growing by the day, and
as a result, getting their time and attention has turned into a major challenge. One of the reasons
eCRM is so popular nowadays is that digital channels can create unique and positive experiences –
not just transactions – for customers.[9] An extreme, but ever growing in popularity, example of the
creation of experiences in order to establish customer service is the use of Virtual Worlds, such
as Second Life. Through this so-called vCRM, companies are able to create synergies between virtual
and physical channels and reaching a very wide consumer base. However, given the newness of the
technology, most companies are still struggling to identify effective entries in Virtual Worlds. Its highly
interactive character, which allows companies to respond directly to any customer’s requests or
problems, is another feature of eCRM that helps companies establish and sustain long-term customer
relationships.

Furthermore, Information Technology has helped companies to even further differentiate between

customers and address a personal message or service. Some examples of tools used in eCRM:

 Personalized Web Pages where customers are recognized and their preferences are shown.
 Customized products or services (Dell).

CRM programs should be directed towards customer value that competitors cannot match. However,
in a world where almost every company is connected to the Internet, eCRM has become a
requirement for survival, not just a competitive advantage.

Q.3 Analyse the distribution function in e-marketing. (10 marks)

Distribution determines how the customer receives a product or service, which determines brand image.
Marketers set strategies for availability, access, and distribution service. Distribution channel is a group
of interdependent firms that work together to transfer product and information from the supplier to the
consumer. This is composed of:

· Producers, manufacturers, or originators of the product or service,

· Intermediaries- firms that match buyers and sellers and mediate the transactions among them,

· Consumers, customers, or buyers who consume or use the product or service.

The structure of the distribution channel makes or impedes possible opportunities for marketing on the
Internet. When a consumer purchases online, he must perform the search function himself & with an
automated transaction, he could save money by performing some distribution functions himself.

There are four elements of a company’s channel structure: 1) Types of channel intermediaries,2) Length
of the channel,3) Functions performed by members of the channel & 4)Physical and informational
systems that link the channel members and provide for coordination and management of their collective
effort to deliver the product or service.

Types of channel intermediaries:

Channel intermediaries include:

· Wholesalers: who buy products from the manufacturer & resell them to retailers.

· Retailers (brick-and-mortar & online): who buy products from wholesalers & sell them to consumers.

· Brokers: facilitate transactions between buyers and sellers without representing either party. They are
also called market makers.

· Agents: represent the buyer/seller & facilitate transactions between buyers and sellers but do not take
title to the goods. Manufacturer’s agents represent the seller & purchasing agents represent the buyer.

· For digital products (software), the entire distribution channel may be Internet based & the supplier
can deliver it over the Internet to the buyer’s computer.
· Non-digital products (flowers/wine) may be purchased online but must be delivered physically. The
exact location of that shipment can be tracked using a Web-based interface.

Length of the channel

The length of the channel represents the number of intermediaries between supplier and consumer. In a
direct distribution channel,

Online intermediaries are often more efficient than their brick-and-mortar counterparts since online
storefront has no rent, maintenance, and staff for retail space. Such marketing needs an inexpensive
warehouse which is an acceptable storage location for goods sold online. However, online stores involve
costs of setting up & maintaining their sites. These charges can be significant, but they do not outweigh
the savings realized by eliminating the physical store.

Distributors perform many value-added functions. Some of them are:Transactional Functions which
include:

·Making contact with buyers and using marketing communication strategies to make them aware of
products.

· Matching product to buyer needs, negotiating price, and processing transactions.

· Logistical Functions which include:
· Physical distribution activities viz. transportation or inventory storage &
· Product aggregation.
· Logistical functions are often outsourced to third-party logistics specialists.
· Market Research: This is a major function of the distribution channel. This results in an accurate
assessment of the size & characteristics of the target audience
1. Information available for free.
2. Research conducted from the office (limits travel expenses).
3. Information is timelier.
4. Information in digital form which e-marketers can easily load it into a spreadsheet or other software.
5. Because so much consumer behavior data can be captured online, e-marketers can receive detailed
reports.
Scope of the Distribution System

Classifying Online Channel Members: Online intermediaries can be classified according to their business
model- 1) Content sponsorship, 2) Direct selling, 3) Infomediary and 4) Intermediaries in the distribution
channel.

Content sponsorship: In this model, firms create web sites, attract traffic and sell advertising. All the
major portals like AOL, Yahoo! & MSN utilize this model. Content sponsorship is often used in
combination with other models. For example, newspapers charge fees for archived articles.

Direct selling: In this model the manufacturer sells directly to the consumer or business customer. This
has been successful in B2B and B2C markets. Examples are- Digital products & Perishable products such
as flowers and fresh food. Dell is the best example of direct selling on the internet.

Infomediary: The infomediary aggregates and distributes information. Market research firms are
examples of infomediaries. Some infomediaries compensate consumers for sharing demographic and
psychographic information and receiving ads targeted to their interests.

Intermediaries in the distribution channel: Three intermediary models are in common use on the
Internet: 1) Brokerage models, 2) Agent models & 3) Online retailing models.

Brokerage models: The Broker creates a market in which buyers and sellers negotiate and complete
transactions. E*Trade and Ameritrade allow customers to place trades online. The B2B market has
spawned brokerages. Converge is the leading exchange for global electronics. Online auctions are
available in the B2B, B2C and C2C markets.
Agent models: May represent sellers or buyers.

Agents that represent sellers are:

· Selling agents
· Manufacturers’ agents
· Metamediaries
· Virtual malls