Lecture 3 – eMarketing Strategies eBusiness

eBusiness

Lecture 3 - eMarketing Strategies

eMarketing Strategies Lecture 3 - 3.2

Introduction to Lecture 3
Topics covered:
• Product-based marketing strategies
• Customer-based marketing strategies
• Market segmentation
• Customer behaviour
• Acquisition, conversion and retention of customers
• Customer relationship management (CRM)

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eMarketing Strategies Lecture 3 - 3.3

Marketing Strategies
– Key Terminology
• Marketing mix – combination of elements used to
sell and promote products and services
• Marketing strategy – particular marketing mix used
to create unique presence in the market
• Four Ps – essential issues of marketing:
– Product
– Price
– Promotion
– Place

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Lecture 3 – eMarketing Strategies eBusiness

eMarketing Strategies Lecture 3 - 3.4

Product-Based
Marketing Strategies
• eCommerce site organised from an internal
viewpoint
• Reflects the organisation’s product design
and manufacturing processes
• Works well for customers looking for a
specific product
• Not so helpful for customers with a more
general requirement

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eMarketing Strategies Lecture 3 - 3.5

Customer-Based
Marketing Strategies
• eCommerce site designed to meet the
needs of many different types of customers
• Can have separate sections on the site that
address major customer groups
• First step is to identify groups of customers
with common characteristics
• B2B sites pioneered the use of this
approach

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eMarketing Strategies Lecture 3 - 3.6

Communicating With Different

Market Segments
• Vital to select right communication media
• Only contact with customer may be through
media and website
• Challenge is to convince customers to trust
an online business

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eMarketing Strategies Lecture 3 - 3.7

Trust Levels in Information

Dissemination Models

Schneider, G. (2007) Electronic Commerce 7th Ed, p.172

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eMarketing Strategies Lecture 3 - 3.8

Market Segmentation

“Identify specific groups of customers and

target them with specific advertising
messages”
g

• Geographic segmentation
• Demographic segmentation
• Psychographic segmentation

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eMarketing Strategies Lecture 3 - 3.9

One-to-One Marketing
• Offers products and
services that match the
needs of a particular
customer
• Enables customers to
create their own
personalised web pages
• Enables highly
customised interactions
with customers

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Lecture 3 – eMarketing Strategies eBusiness

eMarketing Strategies Lecture 3 - 3.10

Usage-Based
Market Segmentation
“Customising visitor experiences to match the
site usage behaviour patterns of each visitor or
type of visitor”

• Browsers (using trigger words to turn into buyers)

• Buyers
• Shoppers (simplifiers, surfers, bargainers,
connectors, routiners and sportsters)

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eMarketing Strategies Lecture 3 - 3.11

Customer Relationship
Intensity
• Goal of marketing is to create strong relationships
with customers
• Good customer experiences can create strong
loyalty towards a company and its products
• Five stages of loyalty as customer relationship
develops over time
• Customer contact points are known as touchpoints

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eMarketing Strategies Lecture 3 - 3.12

Five Stages of Customer

Loyalty

Schneider, G. (2007) Electronic Commerce 7th Ed, p.180

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eMarketing Strategies Lecture 3 - 3.13

Acquiring and Retaining

Customers
• Benefits of acquiring new customers are
different for different revenue models
• Various costs are involved:
– Acquisition costs
– Conversion costs
– Retention costs

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eMarketing Strategies Lecture 3 - 3.14

Funnel Model for Customer

Acquisition, Conversion and
Retention

Schneider, G. (2007) Electronic Commerce 7th Ed, p.184

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eMarketing Strategies Lecture 3 - 3.15

Customer Relationship
Management (CRM)
• Gather information about customer
behaviour and preferences
• Exploit ‘clickstream’ data
• Use this to set prices, tailor promotions and
add new product features

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Lecture 3 – eMarketing Strategies eBusiness

eMarketing Strategies Lecture 3 - 3.16

Value of CRM
• Can track and examine the online
behaviour of customers
• Use this information to provide customised,
value-added p products
• Provide recommendations to customers
based on previous purchases
• Show current information about new
products that might be of interest
• All designed to encourage customers to buy

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eMarketing Strategies Lecture 3 - 3.17

Summary
• Different marketing strategies can be adopted,
focusing on either products or customers
• Important to select appropriate media for
communicating with customers
• Segmentation plays a key part in effective
marketing
• Plans must be developed for both acquiring and
retaining customers
• CRM can play a major role in customising
relationships with online customers

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eMarketing Strategies Lecture 3 - 3.18

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V1.0 Visuals Handout Lecture 3 – Page 6