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Submitted To: Submitted By: Prof. Satinder Kumar Amit
E marketing ties together creative and technical aspects of the Internet.Situation analysis Introduction The importance of developing an effective e-marketing strategy is indicated by Michael Porter (2001) who has said: ‘The key question is not whether to deploy Internet technology – companies have no choice if they want to stay competitive – but how to deploy it. Management of digital customer data and electronic customer relationship management (ECRM) systems are also often grouped together under internet marketing. but also includes marketing done via e-mail and wireless media. Internet marketing is sometimes considered to be broad in scope because it not only refers to marketing on the Internet.Jain MBA 2 B Rollno5860 E-marketing strategy . The interactive nature of e marketing in terms of providing instant responses and eliciting responses are the unique qualities of the medium.’ The Internet has brought media to a global audience. .
development. For many companies. Established frameworks for corporate strategy development or strategic marketing planning should still be followed. they are a response to competitors activities or customers demand. the starting point used in approaches to emarketing strategy. marketing staff and senior managers in a company will naturally question its effectiveness. that with e-marketing . After a site has been in existence for a year or so.including: design. integrated Internet strategy. As a result.0 strategies. search engine optimization (SEO). however. This is often the point at which the need for a coherent Internet marketing strategy becomes apparent. It can be argued. and Web 2. These frameworks provided a logical sequence to follow which ensures inclusion of all key activities of strategy development. e-mail marketing. rather. An e-marketing strategy is needed to provide consistent direction for an organisation’s e-marketing activities that integrates with its other marketing activities and supports the overall objectives of the business. advertising. The e-marketing strategy process There is no evidence to suggest that the approach to developing and implementing a strategy should be significantly different for e-marketing. banner ads on specific websites. the first forays into e-marketing or Internet marketing are not the result of a well-defined. E marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing (SEM). and sales. is when a company that has an existing site and it is reviewing the current site and its effectiveness with a view to future improvements.
They must be responsive to changes in the marketplace. The use of Soviet-style 5 year planning does not seem appropriate. actions and business models of competitor and opportunities . Strategy development can be broken down into formulation and selection. Chaffey (2002) notes that e-business or e-marketing strategy process models tend to share the following characteristics: Continuous internal and external environment scanning or analysis are required. After strategy development. a preferable approach is an emergent e-marketing strategy process that is part of a continuous improvement.there is an even greater need for a highly responsive strategy process model where rapid reaction can occur to events in the marketplace. E-marketing strategy development has a four stage model. Clear statement of vision and objectives is required. Control is required to detect problems and adjust the strategy accordingly. enactment of the strategy occurs as strategy implementation. The four stages are: Strategic analysis: Continuous scanning of the micro and macro-environment of an organization are required with particular emphasis on the changing needs of customers.
Positioning and differentiation strategies.afforded by new technologies. Resourcing . Business and revenue models including product development and pricing strategies. Techniques include resource analysis.Internet marketing priorities – significance to organization. SWOT analysis and competitive environment analysis. Strategy definition: Strategy definition is discussed by asking eight questions: Target market strategies. . demand analysis and competitor analysis. Organisational restructuring required. applications portfolio analysis. CRM focus and financial control Market and product development strategies. Clear objectives must be defined and in particular goals for the online revenue contribution should be set. Channel structure modifications. Strategic objectives: Organisations must have a clear vision on whether digital media will complement or replace other media and their capacity for change.
This includes relaunching a web site. interactive Flash games. The goal of marketers interested in creating successful viral marketing programs is to identify individuals with high Social Networking Potential (SNP) and create viral messages that appeal to this segment of the . images. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. brand able software. Types of e Marketing E marketing can be of following types: Viral Marketing The buzzwords viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes. e-Books. advergames. Viral promotions may take the form of video clips.Strategy implementation: It includes devising and executing the tactics needed to achieve strategic objectives. campaigns associated with promoting the site and monitoring the effectiveness of the site. analogous to the spread of pathological and computer viruses. or even text messages.
Some of the latest theoretical advances include Search Engine Marketing Management (SEMM). and new agencies focusing primarily upon marketing and advertising through search engines emerged. Search Engine Marketing Search engine marketing. submitting sites to directories. For example some of the attention is placed on the web page layout design and how content and information is displayed to the website visitor. or SEM. SEMM relates to activities including SEO but focuses on return on investment (ROI) management instead of relevant traffic building (as is the case of mainstream SEO). and paid inclusion. and developing online marketing strategies for businesses. The term "viral marketing" has also been used pejoratively to refer to stealth marketing campaigns—the unscrupulous use of astroturfing on-line combined with under market advertising in shopping centers to create the impression of spontaneous word of mouth enthusiasm. contextual advertising. and individuals. SEMM also integrates organic SEO. Search engine optimization consultants expanded their offerings to help businesses learn about and use the advertising opportunities offered by search engines. The term "Search Engine Marketing" was proposed by Danny Sullivan in 2001 to cover the spectrum of activities involved in performing SEO. organizations. is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of search engine optimization. Search Engine Optimization .population and have a high probability of being taken by another competitor. trying to achieve top ranking without using paid means of achieving top in search engines. managing paid listings at the search engines. and PayPerClick SEO. paid placement.
The acronym "SEO" can refer to "search engine optimizers. uses methods such as link farms. Search engines look for sites that employ these techniques in order to remove them from their indices. videos. local search. content management systems. SEO considers how search engines work and what people search for. As an Internet marketing strategy. known as black hat SEO or spamdexing. the more visitors it will receive from the search engine. and by employees who perform SEO services in-house. is another SEO tactic. In general. including image search. Search engine optimizers may offer SEO as a stand-alone service or as a part of a broader marketing campaign. SEO may target different kinds of search. Promoting a site to increase the number of backlinks. Other forms of search engine marketing (SEM) target paid listings. . This gives a web site web presence. images." a term adopted by an industry of consultants who carry out optimization projects on behalf of clients. and more frequently a site appears in the search results list. Optimizing a website may involve editing its content and HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines. menus. The term "search engine friendly" may be used to describe web site designs. Because effective SEO may require changes to the HTML source code of a site. video search and industry-specific vertical search engines. shopping carts.Search engine optimization (SEO) is the process of improving the visibility of a web site or a web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results. and other elements that have been optimized for the purpose of search engine exposure. keyword stuffing and article spinning that degrade both the relevance of search results and the user-experience of search engines. or inbound links. Another class of techniques. the earlier (or higher on the page). SEO tactics may be incorporated into web site development and design.
super-affiliates and specialized third parties vendors. and the customer. such as publishing reviews of products or services offered by a partner. affiliates continue to play a significant role in e-retailers' marketing strategies Blog Marketing Blog marketing is the term used to describe internet marketing via web blogs. affiliates sometimes use less orthodox techniques. and in some sense display advertising. Affiliate marketing—using one website to drive traffic to another—is a form of online marketing. because affiliates often use regular advertising methods. including affiliate management agencies. affiliate marketing carries a much lower profile. On the other hand. Those methods include organic search engine optimization. These blogs differ from corporate websites because they feature . which is frequently overlooked by advertisers.Affiliate Marketing Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. Examples include rewards sites. While search engines. The market has grown in complexity to warrant a secondary tier of players. and the referral of others to the site. paid search engine marketing. where users are rewarded with cash or gifts. the network. Still. the publisher (also known as 'the affiliate'). e-mail. for the completion of an offer. e-mail marketing. The industry has four core players: the merchant (also known as 'retailer' or 'brand'). Affiliate marketing overlaps with other Internet marketing methods to some degree. and website syndication capture much of the attention of online retailers.
functions. Blogs are an excellent way to gather feedback and to make sure products meet the needs of users. and benefits before the products are released. They act as a Private news interface for any Company / Website with regular updates being handled by the company executive team. and product strategy teams. corporations use blogs to create a dialog with customers and explain features of their products and services. Many organizations use blogs with their user community. Blogs are also supplementary to a User Group. product marketing. User Groups happen annually for example while blogs provide users constant daily and weekly feedback. often around a single topic. Blogs have been focused as a primary platform for Marketing since the early 2006. to encourage customer loyalty and repeat business. . The need for fresh content on the web makes the Blogs a preferred destination for Resources. However. Blogs have become the next generation marketing tool to corporate websites which merely post collateral and do not provide any interactive feedback. This allows them to share and preview product features. Typically. sending e-mails with the purpose of acquiring new customers or convincing current customers to purchase something immediately. Blogs are Basic websites which are updated regularly.daily or weekly posts. Email Marketing E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. the term is usually used to refer to: sending e-mails with the purpose of enhancing the relationship of a merchant with its current or previous customers. In its broadest sense. every e-mail sent to a potential or current customer could be considered e-mail marketing.
political and technological factors. Immediate competitive environment (micro-environment) including customer demand and behaviour. network e-mail and FIDO). as e-mail did and does exist outside the Internet (e. marketplace structure and relationships with suppliers and partners. adding advertisements to e-mails sent by other companies to their customers. Researchers estimate that United States firms alone spent US $400 million on e-mail marketing in 2006. economic.g. legal. competitor activity. Wider environment (macro-environment) in which a company operates including the social. The key aspects of the internal and external environment that need to be . Specific issues of strategic analysis and objective setting related to e-marketing: Strategic analysis: In common with traditional marketing strategy. strategic analysis or situation analysis for e-marketing involves review of the: Internal resources and processes of the company and a review of its activity in the marketplace. and sending e-mails over the Internet..
E-marketing effectiveness – How effective is the organisation at converting browsers to visitors and visitors to prospects and buyers? Analysis of web logs using diagnostics is important here.assessed when developing an e-marketing strategy. From basic ‘brochureware’ sites with no interaction through those offering online catalogues to fully transactional sites offering full support for all stages of the customer lifecycle from acquisition. Internal resources These are of particular importance for e-marketing: Portfolio analysis and stage models – Considers the sophistication of online services offered to prospects and customers. Financial resources and cost/benefit – in particular the breakdown . retention to extension and all stages of the buying process.
competitor analysis intermediary analysis. Many organisations still do not have good visibility of these costs and the benefits such as those described in the objective setting section. Demand analysis or online customer activity is a key factor driving emarketing and e-business strategy objectives. Technology infrastructure resources – availability and performance (speed) of web site and service level agreements with the ISP. promotion and maintenance. It assesses the current level and future projections of customer demand for e-commerce services in different market segments. Structure – what are the responsibilities and control mechanisms used to co-ordinate Internet marketing across different departments and business units. channel structure. In a B2B context customer activity can be . Service quality – human resources and software assistance for answering customer queries and dispatching goods. The Internet micro-environment Pertinent factors for the Internet include demand analysis.for costs of running the online presence between site development. Porter (2001) has written extensively about how the Internet has changed the dynamic of the marketplace and has reinterpreted his often-quoted five forces model in the Internet era. Strengths and Weaknesses – SWOT analysis can be readily applied to e-marketing specific issues.
Competitor analysis or the monitoring of competitor use of e-commerce to acquire and retain customers is especially important in the e-marketplace due to the dynamic nature of the Internet medium. but choose or are influenced by web-based information to buy products offline? What are the barriers to adoption and the facilitators amongst customers and how can we encourage adoption? Qualitative research is important to informing strategy since it identifies the differences in psychographics between current online customers and those that are not offline. Chaffey (2002) suggests comparing the activity of an organisation and its competitors for their different channels by trying to answer these questions: .determined by asking for each market: What % of customer businesses have access to the Internet? What % of members of the buying decision in these businesses have access to the Internet? What % of customers are prepared to purchase your particular product online? What % of customers with access to the Internet are not prepared to purchase online. Resources for assessing the ratio of ‘Access : Choose : Buy’ online have been reviewed in WNIM 5 and 6.
Customer behaviour (Web analytics) This assesses how different customer segments interact with web site content and assesses how the actions they take are influenced by usability. costs and profitability? 2. reach and the integration between tools. content. service contacts occur online? How effective is online marketing at acquiring. email. Business contribution How does Internet marketing contribute to the bottom line? What is the online revenue contribution (direct and indirect). Site promotion How effective are the different promotional tools such as search engines. cost of acquisition. converting and retaining customers? 3. 5. sales. what proportion of leads. Customer satisfaction What are the customers’ opinions of the online experience and how does this affect their loyalty? 4. Marketing outcomes How many marketing outcomes are achieved online? For example. design.1. direct marketing and advertising at driving quality traffic to the web site? Measures include attraction efficiency. referrer efficiency. Analysis of the use of . promotions and services.
monitoring chat rooms. The Internet macro-environment It can be suggested that of the different Social. ethical constraints such as privacy and technological constraints – what is the current availability and usage of technology to access the Internet and offer distinctive services and how is this likely to vary in the future? Strategic objectives: Smith and Chaffey (2001) suggest there are five broad benefits. Legal. This framework is useful since it presents a comprehensive range of objectives. Political and Technological characteristics of the macro-environment. Economic. creating a dialogue.intermediaries to build and service business is also important here. learning about them . or better prices) Serve – Add value (give customers extra benefits online: or inform product development through online dialogue and feedback) Speak – Get closer to customers by tracking them. conducting online interviews. Marketers will decide whether all or only some will drive e-marketing: Sell – Grow sales (through wider distribution to customers you can’t service offline or perhaps through a wider product range than in-store. reasons or objectives of e-marketing. the three most significant factors described in more depth in chapter 3 are legal constraints – What are the legal limitations to online promotion and trade such as data protection and taxation. asking them questions.
Consider Sales – a typical objective might be: ‘To grow the business with online sales e. print and post. These objectives can be further broken down according to CRM objectives of acquisition.g. to achieve £100. form further The online revenue contribution . recognition and involvement. your conversion rate of visitors to customers was 1% then this means you have to generate 100.000 worth of sales online by December’. to generate at least 10% of sales online.000 of online sales means you have to generate 1. The Web scores very highly as a medium for creating brand awareness. Within 6 months. Save – Save costs .g. Can you reduce transaction costs and therefore either make online sales more profitable? Or use cost-savings to enable you to cut prices. Specific objectives should be created for each of the 5Ss. e. If. Reinforce brand values in a totally new medium. Achieving repeat visits and sales would objectives. sales transactions and administration.000 online customers spending on average £100 in the time period.of service.’ or ‘To generate an extra £100.000 visitors to your site. say. which in turn could enable you to generate greater market share? Sizzle – Extend the brand online. conversion and retention.
The Financial Times reported in June 2001 that around 20 per cent of all orders from Denmark are online and 31 per cent of those from Sweden. Cisco Systems Inc (www. for some companies such as an FMCG manufacturer. In this case. This was achieved since senior executives at Cisco identified the significance of the medium. A further example is provided by Sandvik Steel. This considers the Internet as part of the promotional mix and its role in reaching and influencing a proportion of customers to purchase the product or in building the brand. is now selling around 90% of its 20 billion dollars sales online. the company hopes to raise the US figure to 40 per cent.cisco. In this case a company could set an online promotion contribution of 5% of its target market visiting the web site and interacting with the brand.5%. between 40 and 50 per cent of total orders will come via the web. however. This is a measure of the extent to which a companies online presence directly impacts the sales revenue of an organisation. Over the next six months. the pre-internet means of e-commerce.com) maker of computer networking gear. Mr Fredriksson hopes that in two years. setting aggressive targets for the online revenue contribution and resourcing the e-commerce initiative accordingly. The proportion in the US. Where . customer segments and geographic markets. it is unrealistic to expect a high direct online revenue contribution. since most business goes through distributors and is conducted by EDI (electronic data interchange).The key objective for e-marketing is the online revenue contribution. Companies that can set a high online revenue contribution objective of say 25% for 2 years time will need to provide more resource allocation to the Internet than those companies who anticipate a contribution of 2. Online revenue contribution objectives can be specified for different types of products. an indirect online contribution can be stated. However. is only 3 per cent.
.sales achieved offline are a consequence of online selection of products this is referred to as the indirect revenue contribution.
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