E-Marketing

&
E-Advertising
Presented by

Arun T. Ravindran Neethu Sunny

Sudeep V P Reeba Mary Jose
Definition for E Marketing

“It is the combination of direct marketing

principles with Internet technology in order to
find profitable customers and interact with
them to find out how they want to do
business, when they want to do it, and under
what terms.”
Why has the Internet been so
successful?
 Much faster

 Cheaper

 More user-friendly

 More attractive in terms of content

 Multi-platform
Why has the Internet been so
successful? (Contd.)

 Web pages can be fully open to all or their

access can be (partially or fully) restricted.

 The web is permanently open.

 Web sites can be easy updated and changes are

immediately effective.

 The web is inter-connectable with other

Internet services.
Limitations of web
 The web is not fully reliable.

 The perceived security (e.g. payment related) is

insufficient.

 Identification systems (e.g. digital signature) are not

well implemented even though they are technically
available.

 The web is mostly a "pull media“.

 Brand visibility decreases

5Ss of E-Marketing
Benefits of E-
How benefit is delivered?
Marketing
Achieved through wider distribution to customers
you can’t readily service offline or perhaps through
Sell – Grow sales
wider product range that in-store, or lower prices
compared to other channels
Achieved through giving customers extra benefits
Serve – Add value online or inform product development through online
dialogue and feedback
This is creating a two-way dialogue through web and
Speak – Get Closer to e-mail forms and polls and conducting online market
customers research through formal surveys and informally
monitoring chat rooms to learn about them.
Achieved through online e-mail communications,
Save – Save costs sales and service transactions to reduce staff, print
and postage costs
Traditional Marketing Vs E-Marketing

 Interactivityand Intelligence
 Individualisation
 Integration
Interactivity and intelligence

Traditional Media

Push
Company Customers

Direct Response

Traditional TV, radio, print media, Direct mail communications

New Media
Interactivity
Dialogue not monologue

Push/Pull
Company Customers
Intelligence

Two-way feedback
Individualisation
Customer
Traditional Media

Company Customer

Same message
to all customers
Customer
(or customers in
each segment)

Customer
New Media

Company Customer

Different message
to each customer Customer
(or customers in
micro segment)
Integration

Intermediary

Web

Company E-Mail Customer

Phone

Mail

Person

Channel requiring integration as part of integrated e-marketing strategy

How is Cyber Marketing benefits?

It adds value to individual/customer

Access Knowledge &

People

Increased network of Improved know-how

contacts

Internet

Improved Customer Improved market

Service value

Professional
Advantage
How is Cyber Marketing benefits?
(Contd.)
It adds value to Organization

Closer ties &

relationship with
customers

Improved understand Improved R & D

of customer needs

Internet

Improved Customer Faster speed to

Service market

Competitive
Advantage
Relationship between Intranet, Extranet & Internet

Marketing Marketing/Purchasing
Internet

Internet Extranet Extranet

Intranet

Intranet

IT Dept The Company The

World only World

Suppliers Suppliers
Customers Customers
Collaborators Collaborators
Major Decisions Levels
1. Whether to go for online marketing
2. Type of web presence
3. Budget allocation
4. Which Parts of the Value Chain Should be
Done Online
5. Web Security
A generic Internet Marketing strategy
development process
Business
Strategy
A. Defining
the online a. Evaluate e- 1. Set e-
opportunity b. Assess online
marketing marketing marketplace
performance objectives

B. Selecting 2. Define e-
a. Define customer b. Define e-
the strategic marketing
value proposition communications mix
strategy
approach

a. Implement 3.Implement
b. Execute e-
customer e-marketing
C. Delivering plan communications
experience
results online
4. Profile,
measure and
improve
Types of web presence

1. Transactional e-commerce site:

◦ Amazon, Dell
2. Services-oriented/relationship
building
◦ Naukri.com, Accenture
3. Brand Building site
◦ Airtel, Rolex
4. Portal or media site
◦ Yahoo!, Silicon.com
5. Note that these types overlap
Cost generated by Web Presence?

 Basic training
 Strategic/commercial reflections (to define
content, promotion methods, …)
 Web designing and updating
 Business process integration
 Web site promotion (online and/or offline)
Web Security
 Protecting web sites from fraudulent users

 Ensuring the security of transmitted data

 Payment security
Which Part of the « Value Chain » Should
be Done Online?
Offline Online
Product Product
Evaluation Evaluation
Decision to Decision to
purchase purchase
1

2
Mail, Specify Specify
Fax, purchase purchase
Phone, 3
Person Payment Payment
4

5
Fulfillment
Fulfillment
(digital)
Typical Web Statistics
 Most and least requested pages
 Average user session length
 Top entry and exit pages
 Single access pages
 Top paths through site
 Information about the most frequent visitors
 Top authenticated users
 Top referring sites and search engines
 Browsers and operating system most used by

users
Web Traffic Measures
 No. of hits

 No. of pages viewed. In a web page, each image is considered

as one hit

 No. of visits. In average, a visit means to surf on 10 pages.

 No. of unique visits.

 No. of transactions. A transaction can be done in several

ways: sending an e-mail, taking part in a contest, making a
purchase, etc.

 No. of orders.
Conflicts Arising in e-Marketing
 Territorial exclusivity
 Price differences between “territories”

Solutions for Conflicts Arising

 To jointly agree on policies dealing with price, product range,
etc.

 To prevent - as much as possible - users from some countries

to access a site. Alternatively, to have country-specific price
lists or to deliver to some countries only.

 To deal only with new markets.

 To make only direct sales (e.g. computer company
www.dell.com)
Challenges of Websites Targeting
International Markets
 Expensiveness of international shipping

 Increased marketing costs to obtain qualified

traffic, fame and confidence.

 Increased risks of fraudulent payments.

 Foreign languages. Most web users

understand English but may not be proficient
enough to dare to realise transactions.
Opportunities and Obstacles
Goals B2B B2C
Opportunity
Opportunity -Get new clients
-Help get new clients
Obstacles
Acquire new clients
Obstacles -Promotion
-Promotion -Payment
-Physical delivery -Payment fraud
-Physical delivery
Opportunity

Reduce interaction
-Many opportunities with existing customers,
costs
suppliers, employees, press
E-Advertising
Definition
 Web advertising is the action of promoting
your website using online advertising
tools, techniques and methods proven to
get the results you are looking for.
 It is used simultaneously as online

advertising. Online advertising is basically

the action of actively promoting your new
business.
Why Internet Advertising?
◦ 3/4 of PC users gave up some television time

◦ Well educated, high-income Internet users are a

desired target for advertisers

◦ Ads can be updated any time with a minimal cost;

making them timely and very accurate

◦ Ads reach very large number of potential buyers all

over the world

◦ Online ads are much cheaper in comparison to

television, newspaper, or radio ads
Why Internet Advertising?
◦ Web ads effectively use text, audio, graphics, and
animation

◦ Ads easily combine games, entertainment, and

promotions

◦ Web TV and Internet radio are attracting more

people

◦ Web ads can be interactive and targeted

◦ The use of the Internet is growing very rapidly

PROS of Online Advertising
 Internet advertisements are accessed on demand 24
hours a day, 365 days a year, and costs are the same
regardless of audience location

 Accessed primarily because of interest in the content,

so market segmentation opportunity is large

 Opportunity to create one-to-one direct marketing

relationship with the consumer

 Multimedia will increasingly make Web sites more

attractive and compelling

 Internet is the fastest growing medium in history – (4

years to reach 50mil ppl)
Online Advertising Methods
Banners
Pop-ups
Interstitials
E-mail advertising
URLs
Newspaper-like standardized ads
Advertising in chat rooms
Banners

 Banners are electronic billboards

 Gateway to a firm on the net

 Keyword banners and random banners

 Banner most common promotes brand

recognition
Banners:The standard sizes for banner ads are
400x40 pixels or 468x60 pixels.
Banner types
 Keyword banner
 Random banner
Keyword banner
Keyword banner
Random banner
Random banner
Interstitial or Pop-Up

 An initial Web site page or a portion of that is

used to capture the user’s attention for a short
time
 Ability to create innovative multimedia effects

and interactivity
 Most however, non-interactive and interruptive

 Popular with advertisers since they perform

well in creating brand recall and have a higher

click-through rate than banners
Pop-up Example
Interstitial Example
E-mail
◦ Argued to be the most effective marketing
communication tool for acquiring and retaining
customers
◦ Several million users may be reached directly
◦ Send the company information (low cost)
◦ A wide variety of audiences (customer database) -
Purchase e-mail addresses
◦ Target a group of people that you know something
about - messages can be targeted
◦ When permission has been granted email marketing
is more personal and less intrusive
◦ Problems: Junk mail & Spamming
Targeted E-Mail
Permission marketing emails sent to groups from opt-in lists
URL (Universal Resource Locators)

◦ Advantages:
 Minimal cost is associated with it
 Submit your URL to a search engine and be listed
 Keyword search is used
◦ Disadvantages:
 Search engines index their listings differently
 Meta tags can be complicated
Search Engines

 Important part of Internet strategy since firms

need to be found
 The top 10 spots on a search list are difficult

and expensive to get

 Alternatives:

Buy rankings or keywords, so firm appears first

Have banner appear when a search word is
entered
Google gives search results based on number
of links leading to the site
Search Engine With Targeted Ad
Chat Rooms

Virtual meeting ground

Free addition to a business site
Allows advertisers to cycle through messages
and target the chatter again and again
Advertising can become more thematic
More effective than banners
Used for one-to-one connections
ADVERTISING STRATEGIES
 Associated Ad Display Strategy
 Affiliate Programs

 Partnerships

 Sponsorship

 Serial Marketing
 Ads as commodities

 Viral marketing
 Loyalty Programs

 Customized ad strategy

 Online Events, Promotions, and Attractions

Associated Ad Display Strategy

 Associate the content of a Web page with a

related ad like:
 Search Yahoo on a topic, a banner pops up
offering “search for books at”
 Amazon.com
 Barnesandnoble.com
 Keyword banners
 Just-in-time strategy
Affiliate Programs
 A particular site directs users to an e-
commerce site and in turn receives a
commission for sales generated by the user.
 Affiliate programs involves independent
advertising by firm A of firm B’s products
 If products sold then firm A receives a
commission
Ads as a commodity

 People are paid for the time spent viewing

an ad
 Direct payment made by the advertisers for
ads viewed
 Consumers fill out questionnaires
 CyberGold distributes targeted banners
 Reader clicks the banner, passes some tests on
its content, and is paid for the effort
Viral marketing

 Word-of-mouth over the Internet

 Easily forwarded e-mail messages from
sites
 Forward sites by filling out e-mail
addresses
 “Advocacy marketing”—hotmail.com
 Each e-mail sent invited free hotmail service
 Company grew from 0 to 12 million in 18 months
 Downsides
 E-mail hoaxes
 Spread of viruses
Customized ad strategy

 Filtering the irrelevant information by

providing customized ads
 One-to-one advertisement
 Customized ads in Webcasting
 Personalized news and information by category
 Users select specific categories they want to
receive
Online Events, Promotions, and Attractions

 Enticing Web surfers to read Internet ads

 Yoyodine, Inc.
 Give-away games, discounts, contests,
sweepstakes
 Entrants agree to read product information of
advertisers
 Netzero and others offer free Internet
access in exchange for viewing ads
 Offer free samples (freesamples.com)
 Use company logo as cursor
Internet-based ad design: important
factors
◦ Page-loading speed
 Graphics and tables—simple, meaningful, and match
standard monitors
 Thumbnails (icon, graphs) are useful
◦ Business content
 Clear and concise text with compelling page title and
header text
 Minimal amount of information requested for
registration
Internet-based ad design: important
factors
◦ Navigation efficiency and compatibility
 Links—well-labeled, accurate, meaningful
 Site—compatible with browsers, software, etc.
◦ Security and privacy
 Security and privacy must be assured
 Must provide option for rejecting cookies
◦ Marketing Customer Focus
 Clear terms/conditions of the purchases—delivery
information, return policy, etc.
 Confirmation page after a purchase
Internet-based ad design: important
factors
◦ Navigation efficiency and compatibility
 Links—well-labeled, accurate, meaningful
 Site—compatible with browsers, software, etc.
◦ Security and privacy
 Security and privacy must be assured
 Must provide option for rejecting cookies
◦ Marketing Customer Focus
 Clear terms/conditions of the purchases—delivery
information, return policy, etc.
 Confirmation page after a purchase
 Effectiveness and Pricing of
Advertisement
 Methods for measuring advertisement
effectiveness, conducting cost benefit analyses,
pricing ads

 Exposure Models  Interactivity

 Multiple of number of  Based on how customer
guaranteed ad views interacts with the ad view
 Number of hits
 How much time was spent
 Click-Through viewing the ad
 Number of times customers
 Actual Purchase
click on banner
 Referral fee based on
 Only effective for large
corporations customers moving to ad site
to make a purchase