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Evolution of Marketing
At the beginning of the century, social life was mostly local. It was followed by a period in which commodities were produced on a mass scale. Consumer Marketing operated on mass marketing principles, and business primarily concerned itself with how to built the best sales force. At the end of the century, there is an emerging global culture. The major driver of these changes change on shape of tied reach is has the the to of technology. moved individual. possibility Marketing revolution. Technological back These and is As changes conduct especially and the tools and
marketing increase, the job and responsibilities of marketers have evolved with them. Kotler formalized this evolution with his book "Marketing Management." His key stages are production, sales and brand management. Each of these is strongly motivated by technological opportunities, which permit new methods and new opportunities. A fourth stage, a focus on the individual customer, is also important. As the new technology of the
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Internet develops, it reinforces the new marketing emphasis - which in many ways is a return to business at the turn of the century. In today’s technology driven world, a new fast paced digital economy is emerging. Tomorrow there will be companies that will exist only inside computer networks. Most business transactions will be made electronically, directly from the producer to the consumer, bypassing the supply chain. In the digital marketing environment, the consumer becomes an integral player in the development of the product. In fact, a consumer might build the product himself from a wide array of parts provided by the Company. It is e-commerce that is changing the way products and services are conceived, manufactured, promoted, priced, distributed and sold. The reason being that it is much cheaper; it allows vast coverage and helps in serving the customer better.
Growth of Internet usage and E-commerce:
According to the research report of Goldman Sachs, India will emerge as the second largest Internet market in Asia after China with 70 million users by 2003. It estimates that Indian Internet Users will increase by 130% compounded annual
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growth rate (CAGR) from 0.5 million users recorded at end of 1998. Also by March 2001, there will be over 80 Internet Service Providers (ISPs) and at least 12 private international gateways. As per preliminary findings of the NASSCOM survey, the total volume of E-commerce transactions in India was about Rs.131 crore in the year 1998-99. Out of this volume, about Rs.12 crore were contributed by retail Internet or Business-to-Consumer transactions, and about Rs.119 crore were contributed by Business-to-Business transactions. The survey also revealed that E-Business transactions in India are expected to exceed Rs.300 crore during 1999-2000. Out of this, about Rs.50 crore could comprise of retail transactions. For Business-to-Business transactions, Indian industries are expected to reach online penetration of 2% by 2003 and 8% by 2008.
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7 P's of Marketing on the Internet
The four P's - Product, Price, Place and Promotion have long been associated with marketing, but things have changed on the Internet. So along with a change in the nature of the four P’s there are three new P’s which are relevant to the internet marketer.
1. The Product on the Internet usually changes form
online, and the user experiences it
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electronically, in the form of text, images and multimedia. Physical goods are usually presented in the form of a detailed online catalogue that the customer can browse through. Technology allows the user to virtually touch and feel the product on the Internet rotate it, zoom in or zoom out and even visualize the product in different configurations and combination. Content and software are two avatars of digitized products that can be even distributed over the Internet. On the Internet, E-marketing will be based more on the product qualities rather than on the price. Every company will be able to bring down the cost of its products and hence competition will not be on price. It will rather be on the uniqueness of the product. To be able to attract the customers and retain them, the company will have to provide nouvelle and distinct products that forces the net users to purchase and come back for more.
2. The Price has been drastically changed over the
Internet. It lets the buyer decides the price. Also it gives the buyers information about multiple sellers selling the same product. It leads to best possible deal for the
Internet serves as a direct marketing channel that allows the producer to reach the customer directly. Promoting a website includes both online and offline strategies. Online strategies include search engine optimization. The Place revolves around setting up of a marketing channel to reach the customer.i – Marketing buyers in terms of price. 4. Pricing is dynamic over the Internet. 3.com is extremely popular as its compares the price of many airlines and offers the least price to the buyer. strategic partnership and affiliate marketing. the cyberspace is already cluttered with thousands of sites 6 . as there are currently more than one billion web pages. Presently. A website named Priceline. Promotion is extremely necessary to entice the customer to its website. The elimination channel of the the intermediate allows producer to pass the reduced distribution cost to the customer in the form of discounts. viral marketing. banner ads. multiple points of entry.
There can be traded links or banner advertisements for the same. The look and the feel of the web site should be based on corporate logos and standards. Also. Therefore. 5. A sales service that will be able to answer the questions of their customers fast and in a reliable manner is necessary. Processes Customer supports needs to be integrated into the online web site. the web page should not be cluttered with a lot of information. Presentation The presentation of the online business needs to have an easy to use navigation. promotion has to be carried out. Also the traditional mediums like print. About 80% of the people read only 20% of the web page. To further enhance after 7 . simple but powerful navigational aids on all web pages like search engines make it easy for customer to find their way around. For the customers to know of the Company’s existence and to garner information on the kind of products or services that the company is offering.i – Marketing probably selling similar products. outdoor advertising and television can be used to spread awareness.
without any additional costs. Yahoo! (www. add a tax calculator. it is possible to customize the entire web site for every single user.i – Marketing sales service. customers must be able to find out about their order status after the sale has been made. He can read the news of the world.fedex. the For Indian e. see the weather forecasts of his city and listen to his favorite songs and all this simultaneously.g.yahoo.co.in) and started its cyberspace personalized services.g. FedEx (www. 6. Personalization Using the latest software from Broad- Vision and others.com). For e. 8 . A registered user of Yahoo can now personalize the front page with the all the information he needs. the overnight Courier Company allows its customers to keep track of the parcel and they are well informed about the present whereabouts of their package. A customized web page does not only include the preferred layout of the customer but also a pre selection of goods the customer may be interested entered in. The mass customization allows the company to create web pages products and services that suit the requirement of the user.
9 . Consumer demand and expectations are forecast to drive made-to-order or customized products with rapidly shrinking lead times. Product and service customization: Companies that have powerful brand awareness on the web all have sites that help consumers do something – whether it’s configuring a computer system (www. The seven P’s of E-marketing mentioned earlier not only have to try and make business successful but also do brand building in the process.dell.i – Marketing Brand Building on the Internet For the Company on the cyberspace. their web site is their most important brand.rediff. Amazon. billionaires.com).com not only sells practically everything under the sun but also consciously aims to build a strong brand. The importance of having a strong brand hardly needs emphasis as the Wall Street has made most dotcom-ers.com) on-line or offering personalized services like suburban railway pass ticket in Mumbai (www.
com) has become a leading company in selling computers because of the customization facility it provided on its site.nike. On Nike’s site (www. ‘Dell’ computer (www.i – Marketing Products are configured. For e. as customers want them to be and provide a high level of reliability. 10 . the customer can become a registered user and customize the shoe of his choice. The consumers could build the own computer by ordering the own configuration. For e. The customization highlights the value-for-money aspect and induces the consumer to buy a product that meets his own requirement. excellent quality.g.dell.com). and longer life spans.g.
i – Marketing Understanding the Internet Customers Now to be able to use the seven P’s effectively in order to achieve the predefined goals of any organization it is imperative to understand the customers. Before adapting marketing practices to the Internet. Customization will only be truly effective if we understand our customers and their true needs. The Net users can be classified into five categories depending upon their intention of using the Internet. 11 . Something that can give them an edge. higher discounts etc. advantage. → Bargain Hunters: They are of two kind. the marketer needs to understand the characteristics of the online customers. The five categories of users are: → Directed Information Seekers: They require specific. insight or even a pleasant surprise. → Undirected Information Seekers: These users require something interesting and useful. timely and relevant information about the products and services being offered. One who look for free items on the internet and other who are seeking better deals.
The Evolving Value Propositions The value propositions of goods and services offered in the physical world differ pointedly from those in the digital world. A 12 . The Purpose of Internet usage in India. They are sure what they require and just log on to the Web to purchase the item. The ultimate aim of the universal marketer is to provide a complete end-to-end consumer experience---right from the promise to satisfy his need to its delivery.i – Marketing → Entertainment Seekers: they see the Web as an entertainment medium of vast breath and potential and want to explore the medium before the mass gets there. But the physical world offers only “Point Solutions” which is basically a solution of his needs in terms of functional benefits. → Directed Buyers: They want to buy something - now.
allows consumers to satisfy the immediate necessity of setting a transaction. If a consumer buys a product from a retailer and is involved in an unhappy purchase experience at the store. on the other hand provides all of these and more (“reverse marketing. the consequences would be disastrous for the company if he were to share his experience though different user communities using a combination of chat rooms and electronic mails. But today’s consumers are also looking for process and relationship benefit---book referrals at no extra cost or e-mail reminders. The physical world is not able to deliver these benefits because of gaps in time. for example. This is because all his online experience will influence consumer perceptions about the brand. space and memory. The Evolving Risk Profiles The on-line customer is not a fickle customer. he will punish the store. where consumers seek out vendors rather than the other way around”) by giving the company the ownership and control over all interactions with the consumer. The web.i – Marketing credit card. 13 . for instance. But if the same experience were to occur to him at the company’s web site. but he is a risky proposition nevertheless.
Because Choice boards are essentially design tools and conduits of information. Vertical portals armed with sophisticated search engines. The last few years have seen a flurry of suggested business models for ding business in the Internet era.i – Marketing The Evolving Supply Chain The transformation being brought about the Web revolution is not limited to just the consumer.com that uses a Choice board to help customers research and buy wireless phones and accessories. Dell uses a Choice board system to sell its computers but there are others like Point. the site offering the Choice board can emerge as a powerful intermediary. The market information that a Choice board collects about customer preferences is absolutely enormous and if the manufacturing company does not control it. The sophistication and range of 14 . companies that produce the products need not control them. and provide customized information and promote online community development are the next emergent intermediaries. Will the Internet era signal the death of the retailer? Or will a new intermediary come into existence? Technological innovations have made possible two interesting developments---the Choice board system 2 and the Vertical Portal. which specialize in a particular industry or product category.
The Web will thus facilitate the transformation of the companies form transaction supporters to customer relationship managers. 15 .i – Marketing information collected on customer preferences will drive emergent business models.
Rising digital penetration would mean that the number of customer visiting particular sites would inevitably go up. The digital company has to select its target segment by finding out which section of customers are the most profitable in terms of revenue transactions and who are the customers who generate the maximum number of referrals. Content has to be very target specific. Here again it is important to note that the majority of online customers are not seeking the lowest price. Not 16 . it would be foolish to cater to the whole spectrum of digital visitors. there are five critical success factors that the EMarketer has to keep in mind. → Attracting the Right Customer is the first crucial step. Rather they are seeking convenience above everything else. since word of the mouse spreads faster than word of the mouth. The power of customer referrals has never been so enormous.i – Marketing Critical Success factors in E-Marketing Having observed the evolving paradigms of business in the Internet era. E-Bay attracts more than half of its customers through referrals. While the number of eyeballs or page views has so far been conveniently used as a satisfactory measure by most web sites.
customized navigation paths as seen on the web sites of GM and Toyota) and Problem Resolution (updates of delivery schedules and e-mail responses). Integral to the concept of delivering proper content value is innovation. for example.com. is changing rapidly with multiple players jockeying for position.i – Marketing only do referred customers cost less to acquire than those brought in by advertising or other marketing tools. Priceline. This is because content serves as a powerful differentiator. they also cost less to support since they use their friends who referred them for advice rather than using the companies’ own technical desk. Content would include Product enhancements Personalized (Software interactions patches (through for glitches). for example. Product innovation serves as a key tool to attract new customers. The retail financial services industry. → Delivering Content Value to engage the user’s interest is the critical importance in retaining customer participation. has revolutionized the travel and related services business by letting in a form of “buyer driven commerce”----Customers specify their desired prices 17 .
Contrary to the general view that Web customers are notoriously fickle. Delivering proper content to make existing customers in the traditional “brick” business switch to Web-enabled transactions makes a lot of sense because in every conceivable case.i – Marketing and competing companies then bid for customer requirements. This is because acquiring customers on the Internet is enormously expensive and unless those customers stick round and make lots of repeat purchases over the years. The cost of an Internet based banking transaction is less than one-tenth the cost of a human teller transaction. they in fact follow the old rules of customer loyalty. It is keeping this aspect in mind that Indian Banks have started toying with the idea of setting up Internet kiosks to let their low-value customers settle their banking transactions at the kiosk nearest to their place. Web customers stick to sites that 18 . profits will remain elusive. the cost of a Web-Based transactions is an order of magnitude less than the traditional ways and is decreasing at a faster rate. → Ensuring E-Loyalty is vital to the success of any online venture.
however technology has made the entire shopping experience a transparent process. For example.com. The issue of trust is integral to the issues of privacy and security. if the customer exits the web-site when the price screen appears. In the digital marketplace. → E-Learning to facilitate personalized interactions to the marketing strategists.i – Marketing they trust and with time consolidate their purchases with one primary supplier to the extent that purchasing from the supplier’s site becomes part of their daily routine. Such minute tracking of customer behavior has major implications for the world of advertising. have used a variety of encryption tools ad simple ethical decisions like not accepting money for publishers for independent book reviews to maintain the trust of its customers. Companies like Amazon. Customers in with customers has been the biggest contribution of the Web traditional bricks-and-mortar stores leave no record of their behavior unless they buy something—and even the n the date might be sketchy. which command amazing levels of consumer trust. The Internet 19 . he is a price sensitive consumer.
Digital value is delivered to the consumer the by promising to feel him his convenience. click throughs. and giving the 20 . responses generated. the financial services industry. the travel industry. By monitoring pages selected. These models have often disturbed the traditional status quo and created new rules of business. and other indicators. allowing customer ownership of the Web experience. thus reducing the risk of a potential flop. the company would be able to discover which parts of a prospective campaign would work.i – Marketing may soon be used as a test bed for testing prototypes of marketing and advertising campaigns. the relating segment and the publishing segment. The sectors where new business models will emerge or have emerged are the music industry. This would make it possible for the company to modify its product offerings much earlier than usual in the product life cycle. → Providing Digital value to the evolving consumer through his life cycle has become possible because of customized interactions and emerging business models.
Now since the explosion of the internet. advertising paradigms have been constantly changing. Here. I would attempt to compare Internet Advertising with Traditional Advertising: 21 . MCI.i – Marketing customer a sense of belonging that traverses the physical boundaries. Volvo. ZIMA were the first to try it out and the Internet advertising has come a long way since then. AT&T. The first Web advertisement was placed on the Hot Wired web site in October 1994. IN Aur ab lete hai ek chota sa break …… Marketing over the years more so recently has started being used interchangeably with advertising. Sprint. Club Med.
level and concentration while using the net. when they are on the lookout for some thing. Space is a problem.i – Marketing TRADITIONAL ADV. Advertisements are Advertisements catch users ubiquitous. as regards size of the banners etc. and hence they notice the ad. the advertisement. Response to the action is First response is immediate as not immediate. Does not evoke immediate action. Advertisements are The user has high attention passively received. INTERNET ADV. (IA) It is dynamic with multimediasupporting text and graphics video sound all together. For example the search is for travel on a search engine there are ads of travel agents on the net. Ads are graphic intensive Both copy and graphics are 22 . Space is not a restricting factor The proportion of advertising to editorial is high sometimes 50:50. Invokes immediate action as you at-least need to click on the ad. when the user clicks. A web page would be 91% editorial and 9% advertising. target a very focussed audience. Difficult to track the exact This is quite possible with number of people who saw Internet advertisements. (TA) TA is static. (please refer the chapter) Advertising does not always This can be very focussed. the person is directed to other web page with more details.
Hence people would be wary of the fact that ads consume a lot of online web time and hence they avoid clicking on average ads. advertises should be designed in such a fashion that they attract attention and induce people to click on the net. There are no such constraints. So while designing or formulating any advertising strategy for a brand on the internet a manager has to take in to account factors like: 1. Therefore. Companies should be careful as regards joining the IT bandwagon. The costs would be prohibitive to reach a global audience. Thus we see that advertising is changing and so are the rules for advertising on the internet. It should be a well-planned campaign full of specific information and attention catching.i – Marketing and avoid copy overload. The Internet has made a huge impact on advertising. restricted by the banner size specifications. 2. The 'net' charges are on the higher side (though there has been a steep decrease in the rates in the last few months). 23 . They should not advertise on the net just to project themselves as a techno savvy company or maybe because their competitor is doing the same thing.
5. The ads and the subsequent information on the web site should be constantly updated and highlighted in the ads and thus induce repeated clicks on the ad. failing to do so the advertiser ends up defeating his own purpose. Care should be taken to design the ads in such a way that the information they provide or the hyperlinks they provide to a site gives adequate and specific information. One more thing would be to generate 'search' specific advertising. 6. 24 . Generally.i – Marketing 3. people perceive the ads to be time consuming and full of unwanted information. 4. This would mean that if I give a search for books on the search engine. the ads should be designed so as to attract attention of maximum number of people and inducing them to click. Last but not the least. the ads displayed would be related to the books.
Egg was the first online bank to be targeted by cyberspace robbers.i – Marketing The Financial Angle As a marketer one should be aware of the fact that any transaction is incomplete unless a payment is made. Thus. Not long ago. 25 . due to the structure and the intention of the Internet to be an open network high security risks are involved with financial transactions. Security is the biggest concern with both current and potential users of online banking services. Though secure electronic transaction (SET) and other encryption schemes have made the actual transaction instructions relatively secure and while there haven't been reports of any of the Indian banks being hacked into (touch wood!). one question still nags users: nothing on the Internet is 100 percent secure and customers fear that their money is vulnerable to attack.
i – Marketing What is the process of online payments? There are many payment systems that exist in the world. 26 . But the most commonly used payment systems would be the e-cash method and the NetCash method.
and pico-payments has to be evaluated carefully. There may be a problem with scalability.i – Marketing ECash security is achieved by using an asymmetric cryptographic algorithm. guarantees anonymity. Each person who has an eCash-account may accept eCash coins. as was already indicated. The costs of checking for authenticity of coins are relatively high because the check have to be done online. The storage of a coin's serial numbers does prevent double spending. Account access may be protected additionally by using personal passwords. The blinding method. however. One important goal of this project is the use of 27 . NetCash method is developed at the University of Southern California. This means that the suitability for micro.
Consequently. In contrast to eCash. This reduces initial investment costs. problems associated with a large number of coins and participants may be solved more easily.i – Marketing already existing accounting systems and procedures in financial institutions. required. reduced anonymity is accepted and the cooperation of all participating financial institutions is 28 . this method is based on a decentralized approach. Therefore.
Currency servers are locations to exchange anonymous into non-anonymous money. NetCashcoins have a face value and a serial number. Basic requirements are as follows: − Customer and financial institution have to authenticate each other. Clearing is done by the currency server. It is necessary that the integrity of the servers is certified and that currency servers accept coins from other currency servers. Also. What should be done? Today. various techniques and standards are offered in order to control or even avoid these risks. Each currency server possesses an account on an accounting server. 29 .i – Marketing The system is based on independent distributed currency servers. the address of the issuing server and an expiry date is stored.
such as voice. which could provide enhanced security to e-banking operations. Cryptographic algorithms used need to have certain characteristics.i – Marketing − Private data have to be encoded. retina. Banks like ICICI. is Biometrics. is one such technology. and not a password or PIN code. − A digital signature is necessary to get binding legal contracts. It needs to be guaranteed that sender and receiver have the same 30 . or Layered Biometric Verification. the most popularly used e-banking solutions in India. face or fingerprint. LBV. Another path breaking technology. the science of verifying an individual's identity by means of personal characteristics. It advances the security paradigm by empowering banks to verify the actual identity of a person. HDFC and Citibank have internationally comparable technology platforms with 'Bankaway' from Infosys and iFlex Solution's ‘Flexcube'. which is based not just on a single biometric of signed documents. These digital signatures have to secure the integrity intentions. No third party should be able to quickly get access to messages or even to divert financial transactions.
The ubiquity of the Internet the fact that cross-linkages are possible to any degree.i – Marketing verification. The Channel Strategies for delivering Digital Value to customers The Internet era has shown that companies have risked damaging relationships in their physical chain to compete in the electronic channel. has meant that companies have usurped the 31 . but on several layered verification technologies (voice. Biometric solutions and devices like the Umatch BioLinkâ Mouse are becoming more affordable. face and fingerprint). Internationally banks such as ING Direct Canada have been working closely with organisations like SecuGen Corporation to develop and implement biometric security systems for their Internet Banking products.
Companies would aim at cutting down their traditional margins (give up the cost plus pricing structure) and aim at high inventory turnover. However pirating the value chain does not mean that the number of intermediaries in the whole process would necessarily decrease. Can an Internet bookseller allow its customers to experience the same ambience on the net as it does in the bookstore or 32 . The challenge will lie in managing these multiple channels of experience It is likely that most companies will find that they will have to integrate several distribution channels to provide the customer with a seamless purchase process. In retailing profitability is primarily. The key challenge is thus to ensure that the personalized nature of the experience is not much different across channels. When companies pirate the value chain of the industry they are essentially eliminating layers of costs that are build into the current distribution system. The emerging economic structure of Electronic Commerce would mean that profits would lie in the intermediate transactions rather than in the final sale of the good.i – Marketing role of other value providers in the value chain to gain competitive advantage.
This may be typified by friction between vehicle dealers and the company over orders trough an auto company’s Web site.i – Marketing vice-versa? If it cannot then companies will face friction among the alternative distribution channels and the already established physical channel might complain about its profitability being affected by digital purchases. Complementary to the problem of managing multiple channels of distribution is the development of infrastructure needed to support such a distribution network. The billing system and pricing strategies have to be properly frames and executed. 33 .
Texas-based Dell currently employs over 38. The 34 . Austin. senior manager of online marketing for Dell Computer believes that online advertising is the perfect way to sell computers to people accustomed to living in a "hyper linked world.' senior manager of online marketing Deborah de Freitas said. Deborah de Freitas.i – Marketing Now that we know the theory of I-marketing let’s find out what the industry thinks about the idea of marketing on the internet. I-Marketing Interview: Dell E-Commerce Times August 15." Dell has grown from a small operation selling computers out of Michael Dell's college dorm room in 1984 to one of the world's largest computer companies. because 'what works one day might not work three weeks from now. 2001 Dell repeatedly reevaluates its online ad strategy.000 people worldwide and had revenues last year of approximately US$32 billion.
It's hard to say with 100 percent certainty. Additionally. and Dell aims to take full advantage of the power of the Internet to move its product. a consumer seeing a TV spot could go straight to the Internet and log on. De Freitas recently spoke to the E-Commerce Times about how Dell uses the Internet to reach potential customers. the consumer clicks right on it. or series of steps. If the consumers start calling after a TV ad. Then we work with our ad company to determine what markets are best for these products. It's hard to gauge the total impact efficiently. We optimize our 35 .it could be due to the ad or to a direct mail campaign. it is hard to isolate that response -. but with an Internet ad. do you take when planning an online advertising campaign? de Freitas: First. Shift in demand Interviewer: What steps. It's hard to gauge the response of a TV ad. we try to determine what products we'll be selling and what time frame the ad campaign is going to run. Interviewer: What advertising advantages does the Internet offer that other media do not provide? de Freitas: The biggest advantage of the Internet is the ability to track responses on a real-time basis.i – Marketing only way to buy Dell computers is directly from the company.
Swing your partner Interviewer: Should an online advertiser choose many sites on which to advertise -. For instance. How many depends on what your objectives are. 36 .or spend the same amount for a larger buy on one site? de Freitas: I think that you always want to have partners to do business with. I think it's important for advertisers to know where their audience can best be found and partner with those sites first before trying for a broad reach on many sites. Basically. Dell partners with both computer sites for relevant audience and with portals for reach. Both are important to our strategy. if we're advertising our new notebook at a site that has notebook reviews up and we're getting good results.i – Marketing relationships with our partner sites and then decide on other sites. we would want to optimize our advertising with more on that site or other similar sites. We'd take away ads from sites where people are not buying. We also track our campaigns and we may shift it if we see good results with one site. we look at what we want to sell and who do we want to reach.
Charting the uncharted Interviewer: What are the biggest challenges of marketing via interactive media? de Freitas: The biggest challenge has been how to grow into new arenas. Past performance is definitely No. That's not something our group focuses on. 1. 3. We look for partners who are willing to work with us to create our campaign. People are very accustomed to a hyperlinked world and there is a high likelihood that How well-suited is online advertising for 37 . Interviewer: How about for lead generation? de Freitas: It is extremely effective for lead generation because it's interactive. Interviewer: branding? de Freitas: I think it's very well-suited for branding. The Internet is sort of a self-selected group. Reaching customers who aren't already Dell customers or who aren't shopping online is hard. 2 and partnership capabilities is No.i – Marketing Interviewer: What process do you use to determine how much of your overall advertising budget is allocated to a particular site? de Freitas: We look at three things. The audience they deliver is No. but there is implicit branding that happens.
Interviewer: What advantages have you gained through marketing in e-mail newsletters? de Freitas: The biggest advantage is that it allows us to offer promotions or new products to people who have told us they want to learn more about Dell products and services. it gives us much more qualified customers and we have a higher conversion rate.i – Marketing consumers who are already engaged in the purchase process will click through. 1 advantage. but our numbers are up a little bit on some sites [where we are running larger ads] but are about the same at on larger sites with a high number of 38 . Interviewer: Have the new larger ad sizes had an impact on your advertising campaigns? de Freitas: We haven't seen much impact yet. Interviewer: What advantages have you gained through running a banner ad campaign? de Freitas: Lead generation is the No. We're still testing. It also gives us an opportunity to integrate our online and offline graphic elements to make Dell recognizable to consumers both online and offline. particularly impressions. because all of our e-mail is opt-in. That gives us a branding advantage. Additionally.
I think we're constantly testing because what works one day might not work three weeks from now. We're constantly testing to see where new opportunities are. We've heard that some customers think the larger ads are intrusive but others love them because they can get more information without leaving the site.to find out where that's happening and to try to replicate that matter. There are so many things that are possible that may not be the best use of time and may waste resources.i – Marketing others. Some of the ads are really little mini-sites that allow consumers to surf within the ad. But I'm not sure we'll say we'll never do a banner ad again. Ignoring Some Possibilities Interviewer: What are some successful strategies for online advertising? de Freitas: The most successful strategy is to try to identify what really works for our objectives -. It's also important when you gather data to have someone who's able to analyze it and tell you what the trend really is. The jury's still out. Interviewer: What pitfalls should an online advertiser try to avoid? de Freitas: The biggest one is doing what's possible instead of what's relevant. 39 .
so we measure the number of sales trackable to a campaign. Instead we send a letter. The question is. and 3) the creative execution used to convey the offer. i. product listings.e. 2) the relevance of the offer to the audience that sees it. microsites. what sites we partner with. etc. For instance.i – Marketing Interviewer: Are there products or services that are not suited for promotion through online advertising? de Freitas: I don't think there are any products not suited for advertising online.e. Increased Reliance Interviewer: How do you measure the effectiveness of your Internet marketing campaign? What factors come into play? de Freitas: Effectiveness for Dell is primarily measured as cost per acquisition. banners. we don't use banner ads to advertise that customers can extend their service plans. i. 40 . You have to determine if online advertising is relevant to what you are trying to do. is an online ad the most effective ad for a certain product or service? Dell takes a holistic approach and analyzes what approach is most effective for each message. The factors that drive this most are: 1) the offer we make in the campaign.
If you are not clear up front as to what your goals are. you may end up with a campaign that does not meet your goals. what does the future hold for online advertising -both in terms of strategy and technology trends? de Freitas: For Dell. reading the news and shopping. That doesn't mean we'll shift our ad budget away from other media forms. but other forms of advertising may not see their budgets grow as much. there will be an increased reliance on online advertising as a way to interact with customers and prospects as they are doing their daily tasks. 41 . In terms of technology. the trend will be towards more interactive ads that give users more information. Interviewer: What advice do you have for a company starting to plan a new online advertising campaign? de Freitas: To be very clear as to what your goals are and design campaigns to meet those goals.i – Marketing Interviewer: Based on your experience with Web marketing thus far.
and this encourages further innovation and creativity to the benefit of us all. often known as IP. What is Intellectual property? Intellectual property. allows people to own their creativity and innovation in the same way that they can own physical property. It will often not be possible to protect IP and gain IP rights (or IPRs) unless they have been 42 . Thus the existence and use of the laws are something a marketer should be aware of. The owner of IP can control and be rewarded for its use.i – Marketing Cyber laws These are an are which is very much relevant to a marketer as this arena of the internet is a global one where even if you make a product for the local market it is accessible from anywhere in the world. In some cases IP gives rise to protection for ideas but in other areas there will have to be more elaboration of an idea before protection can arise. Thus the brand we create must not only be unique but also be easy to recall.
including software and multimedia However. But why does a marketer truly supposed to know what are cyber laws? The answer is that the marketer need not know what the laws are but he should 43 . This is relevant as a brand is unique and its equity may decrease if it is not protected. pattern or ornament → copyright for material .either functional or aesthetically pleasing articles or surface decoration. IP is much broader than this extending to trade secrets. plant varieties.i – Marketing applied for and granted. films. without any registration.new and improved products and processes that are capable of industrial application → trade marks for brand identity . as soon as there is a record in some form of what has been created. music. The four main types of IP are: → patents for inventions .of goods and services allowing distinctions to be made between different traders → designs for shape and appearance . performers rights and so on. sound recordings and broadcasts. but some IP protection such as copyright arises automatically. geographical indications.literary and artistic material.
i – Marketing be aware. Words that describe an element of the goods and services of the business should be avoided. the most distinctive trade-marks consist of coined or made up words. Arbitrary Trademarks which are APPLE ordinary words used with computers products or services which 44 . Generally speaking. which the company has created which KODAK Coined have no dictionary cameras meaning. The trade-mark should be both memorable to consumers and capable of distinguishing the business's goods and services from those of it's competitors. This is true as we should know what our options are with our brands no matter what happens. How do I select a good trade-mark for the products and services of my business? If a business is still in the brain storming phase of selecting a trade-mark. There are a few helpful guidelines to assist businesses in this regard. The following Chart illustrates the guidelines for selecting a trade-mark: Type Definition Examples Registrabili ty Easy Moderately Easy Trademarks. the importance of selecting a distinctive trademark cannot be overstated.
names for products or services. Registration constitutes public notice of a trademark. as the registration is available to anyone conducting trademark-clearing searches. the following advantages are available to businesses that register a trademark: a. which hint at Descripti the characteristics of your ve products and services. which are Generic common. Trademarks. Registration extends trademark rights across Canada and not just in the geographical region in which the trademark is used. b. Trademarks. c. Registration assists a trademark owner in litigation against an infringer by creating a rebuttable 45 .i – Marketing they have no connection. SOFTWARE Moderately Difficult Difficult Virtually Impossible Is there any advantage to registering a business's trademark? Trademark rights develop with commercial use of the trademark There is no legal requirement to register a trademark however. KOOL beer PIPEFITTER wrenches HAMBURGER. Trademarks. which hint at Suggesti the characteristics of your ve products and services.
the registrant is not obligated to prove ownership of the trademark as the onus is on the infringer to prove the registrant is not the owner.i – Marketing presumption that the registrant owns the trademark Thus. Registration is useful in licensing and tax situations since it assists in clarifying title to the trademark Thus these are some of the issues about which a marketer must be aware of. 46 . d.
3. and prices without leaving their office or home. They don’t have to sit in traffic. The reason why i-marketing has become so popular is because they provide three major benefits to potential buyers: 1. products. Information: Customers can find reams of comparative information about companies. 2. Convenience: Customers can order products 24 hours a day wherever they are. they also don’t have to wait in line. and a parking space. competitors.i – Marketing The Conclusion Benefits of i-Marketing i-marketing is a hot topic especially in these days of instant results. and walk through countless shops to find and examine goods. Fewer hassles: Customers don’t have to face salespeople or open themselves up to persuasion and emotional factors. i-marketing also provides a number of benefits to marketers: 47 .
Fifth. i-marketing has at least five great advantages. Relationship building: On-line marketers can dialogue with consumers and learn from them. 3. marketers are adding on-line channels to find. Audience sizing: Marketers can learn how many people visited their on-line site and how many stopped at particular places on the site.i – Marketing 1. Clearly. First. and utilities. information access and retrieval are fast. Quick adjustments to market conditions: Companies can quickly add products to their offering and change prices and descriptions. communicate. shopping can be done privately and swiftly. 48 . Lower costs: On-line marketers avoid the expense of maintaining a store and the costs of rent. They can produce digital catalogs for much less than the cost of printing and mailing paper catalogs. both small and large firms can afford it. and sell. 4. 2. This information can help improve offers and ads. Second. there is no real limit on advertising space. reach. the site can be visited by anyone from any place in the world. compared to overnight mail and even fax. Fourth. Third. insurance. in contrast to print and broadcast media.
i – Marketing The Internet is a powerful tool for strengthening relationships. Ultimately here also the marketer has to realize that nothing sells as well as a good product. The innate strength of an E-Market comes not from the seamless flows of goods and services from the producer to the customer but in the geometrically increasing returns from converging ideas and technological change the strength of online communities has never been so great. Notice how Linux distributed free on the Net has been able to build up a faithful customer base. 49 . and companies have used them to develop new markets. These barriers include economies of scale and geographic positioning. E-Marketing has opened new vistas for marketers. Companies who have tuned their business processes to incorporate these customer responses have been able to leverage the power of the Web to gain competitive advantage. The greatest feature of the digital economy is that it enables the E-Marketer to eradicate man traditional barriers before entering new markets. By offering customers content and time value. But the beauty of the Internet is that it offers constant opportunities for product enhancement based on continuous customer feedback.
i – Marketing Recommendations: The following are a few things an internet marketer can do to maximize the potential of his website: - 50 .
for instance. → Membership – The visitor can request a password. The future of truly web-based CRM will be the completely “one-to-one” web sites. Unfortunately.i – Marketing → Domain Fault Repair – This function directs the web visitor to the right site after she/he potentially may have typed in the wrong Internet address. Fax toll-free numbers. Sites that offer customization features allow user to filter the content they see. With this password he can continue surfing on password protected web pages within the website. the sheer volume of information can be one of the weaknesses of web-based CRM design. 51 . → Local Search Engine – Allows the visitor to search on key words to quickly locate specific answers on the website. Postal Address.One of the web-based CRM most important advantages is the volume of information available to the browsing customer. → Site Customization: . the customer on a next entry can choose to see only his/her own preferences. When properly customizable on the first visit. my yahoo) → Alternative Channels – Different ways to contact the company are offered.com. Email. Call back button and Voice over IP. (Example: yahoo.
this is called a newsletter. → Introduction for First-Time Users – Visitors. they create content for the site. also called a site overview. This page contains information about “How to use the site most efficiently” → Chat – A main advantage of the Internet is its self- generating advantage. By allowing visitors to interact with each other and with the site. the visitor can add his/her email address to a list to receive automated emails. Often. Finally I would like to end by saying that even though the internet has opened up a new avenue for reaching the end consumer. it is still very much an open field. → Site tour – The visitor can follow a tour through the website. The chat features allows a visitor to enter a real-time conferencing between two or more users on the website. → Site Map – This is a hierarchical diagram of the pages on the website. or site map. who enter the site for the first time. All this will help build a relationship with the customer and it will ultimately help the marketer to achieve his objectives. This is true 52 . site index.i – Marketing → Mailing List – To receive more information. can surf to an introduction page.
i – Marketing as there is no fixed way or strategy for marketing on the net. it is still the same usual self……. i. 53 .e. unpredictable but very much required. It is still very much an arena where ingenuity and creative thinking very much rule the roost. Thus marketing as usual has not changed.
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