Unit-6 E-Marketing

Traditional Marketing

Definition of traditional marketing with

 Market research
 Publicity
 Advertising
 Sales
 Customer service

Problems of traditional marketing

Online Marketing

Online marketing refers to a set of powerful tools and methodologies used for promoting products and
services through the Internet. Online marketing includes a wider range of marketing elements than
traditional business marketing due to the extra channels and marketing mechanisms available on the
Internet. Online marketing is also known as Internet marketing, Web marketing, digital marketing and
search engine marketing (SEM).

Online marketing connects organizations with qualified potential customers and takes business
development to a much higher level than traditional marketing. Online marketing synergistically
combines the Internet's creative and technical tools, including design, development, sales and
advertising. Online marketing removes marketing’s dependencies on paper as well as barriers for
starting a business or extending a business into international level.

There are three new market segments which are as follows:

 Cyber buyers
They are professionals who spend a good deal of time online, mainly at their place of business.
These professionals often have to make complex purchasing decisions that require reams of
data and difficult to locate sources of supply, all within a tight time frame.
 Cyber consumer
They are the home computer users wired up to commercial online services and the internet.
This group represents the pot of gold and marketers simply need to find ways to make a more
attractive to shop and buy online than to go to the local store.
 Cyber surfers
They use online technology to challenge their abilities and for fund. This segment is typically
younger and poses shorter attention time.

Some of the important aspects of marketing are advertising, sales, security of the transaction and mode
of payment used for payment.

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How should buyers pay online?

i. The consumers send in a cheque or call and verbally transmit a credit card number over the
merchant telephone. This is fairly traditional approach and no financial transaction take place in
the internet.
ii. The customer
a. Set up an account with a merchant or a third party organization.
b. Leaves his or her credit card number by means other than the internet.
c. Gives the merchant the authorization to bill the account whenever the consumers
choose to buy something.
iii. The consumer leaves his/her credit card number on an unsecure online order form.
iv. The consumer uses a secure client software program to transfer his/her encrypted credit card
number.
v. The consumer exchange traditional currency for some forms of digital currency and then spend
units of that currency whenever or wherever likes.

Advantages of online marketing

Some of the advantages of online marketing are as follows:

1. Lower Operation cost

We can advertise more cheaply than traditional methods of advertising, such as television, full
page ads in the newspaper and directories. For example, we can get a free listing in many online
business directories. We can contact our customers more than we normally would and contact
is more affordable than methods, like sending mail, printing brochures, and paying for postal
costs. For example, an email message is more cost effective than sending thousands of direct
mail pieces with savings in postage, paper and printing.
2. Global marketing
Presence on the Internet can help the expansion of the company from a local market to national
and international markets at the same time, offering almost infinite expanding possibilities. By
marketing on the Internet, companies can overcome barriers of distance. Companies can sell
goods in any part of the world without setting up local outlets.
3. Save time
One of the most important advantages is the fast availability of the information. The
clients/users can easily get information, by navigating the internet, about the products that they
wish to purchase, and besides that, they can check the information at anytime of the day.
4. Tracking result
On the internet everything can be measured, thus it’s easier for the companies to know almost
instantly if their campaign is working or not, what company or user is interested in their
product. Result of adverting can be illustrated in detailed graphics that will give feedback for the
companies.
5. Continues marketing

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 Online marketing is all-hour based. Companies' marketing campaigns run 24 hours a day , 7 days
a week. Companies don’t have any constrained with opening hours, neither they need to
consider overtime payment for staff. Regional or international time variation/difference doesn’t
affect the availability of companies' online ad copy campaign and offer. Anytime an individual
opens a computer connected to the internet, S/he’s tendency to see companies' marketing
campaign as opposed to usual traditional offline marketing. Customers search the products
offered at their convenient time as long as they like – no hasten, no fear of closing. The users
own the opening and closing hours for shopping.
6. Information rich
Online marketing can be information rich and interactive. It allows buyers andcurrent customer
to search and locate the information they need quickly.
7. Others:
a. Follow up after sales relationship
b. Automation Vs Delegation
c. Highly adoptable to multitasking

E-Advertising

Advertising is a non-personal form of promotion that is delivered through selected media outlets.
Advertising has long been viewed as a method of mass promotion in that a single message can reach a
large number of people. Advertising is always present, though people may not be aware of it. In today's
world, advertising uses every possible media to get its message through. It does this via television, print
(newspapers, magazines, journals etc), radio, press, internet, direct selling, hoardings, mailers, contests,
sponsorships, posters, clothes, events, colors, sounds, visuals and even people.

E-advertising is a marketing strategy that involves the use of the Internet as a medium to obtain website
traffic and target and deliver marketing messages to the right customers. This is geared toward defining
markets through unique and useful applications. Since the early 1990s there has been an exponential
increase in the growth of e-advertising, which has evolved into a standard for small and large
organizations.

E-advertisements are purchased through one of the following common vehicles:

 Cost per Thousand (CPM): Advertisers pay when their messages are exposed to specific
audiences.
 Cost per Click (CPC): Advertisers pay every time a user clicks on their ads.
 Cost per Action (CPA): Advertisers only pay when a specific action (generally a purchase) is
performed.

Examples of E-advertising include banner ads, search engine results pages, social networking ads, email
spam, online classified ads, pop-ups, contextual ads and spyware.

Some of the major advantages of E-advertising are as follows:

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  A main benefit of online advertising is that it has a much affordable price when compared with
the traditional advertising costs.
 Online advertising gives company campaigns global coverage, which helps companies online
campaigns reach more audiences.
 The fact that it’s so easy to measure makes online advertising more appealing than the
traditional advertising methods. Company can find a lot of effective analytics tools in order to
measure online advertising results, which helps company, know what to do and what not to do
in their following campaigns.
 Online advertising is faster than any of the offline advertising activities and company can start
sending out their online ads to a wider audience, the moment company starts their advertising
campaign.
 In online advertising, the advertiser is able to convey more details about the advertisement to
the audience and that too at relatively low cost.
 Payment flexibility is another added advantage of online advertising and marketing. In offline
advertising company need to pay the full amount to the advertising agency irrespective of the
results. But in online advertising there is the flexibility of paying for only qualified leads, clicks or
impressions.
 Any form of advertising helps in improving the branding and online advertising stands a notch
high in improving the branding of company, service or product.

Various Means of e-Advertising

1. E-mail
The advantages of e-mail are its low cost and its ability to reach a wide variety of targeted
audience. Most company develops a customer database to whom they send e-mail. E-mail is
emerging as the marketing channel that affords cost effective, implementations and better,
quicker response rate than other advertising channel.
2. Banner
It is the most commonly use form of advertising on the internet. Typically a banner contains a
short text or a graphical message to promote a product. One major advantage of using banner is
the ability to customize them to the target audience.
3. Skyscrapers
While not as common as the banner ad, the skyscraper is another prevalent form of Web
advertising. A skyscraper ad is a tall and narrow banner advertisement usually placed to the
right or left of content on a Web page. The skyscraper offers an advertiser a large space for a
message.
4. Banner swapping
Banner swapping is Form of internet advertising in which affiliated websites show one another's
banners on their sites. The simplified concept behind a banner swapping is “I will show your ads
on my site in exchange for getting to show my ads on your site.”
5. Pop-ups

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 A type of window that appears on top of (over) the browser window of a Web site that a user
has visited is known as pop-up window. A pop-up ad is a pop-up window used for advertising.
Pop-up ads are not popular with the average Web surfer, and there are several products that
disable them, such as Pop-up Stopper, Pop-up Killer, and Pop-up Annihilator.
6. Streaming media
Streaming media is video or audio content sent in compressed form over the Internet and
played immediately, rather than being saved to the hard drive. With streaming media, a user
does not have to wait to download a file to play it.

Browsing Behavior Model

Customer of an e-commerce site interacts with it through a series of consecutive and related request
made during a single visit called session. Within a session customer can issue request of different types
such as logging, browse, search, and add to shopping cart on pay. Different customer may exhibit
different pattern of navigation through an e-commerce site. Some customer may be heavy buyer while
other may be occasional buyer.

Browsing behavior model of an online video store

Let us use an example of an online video store to give an informal introduction to the user behavior
model of an e-commerce site. Consider an online video store in which customer can perform the
following function.

I. Connect to the home page and browse the site by following sites.
II. Search for title according to various criteria including keywords and title.
III. Select one of the video that results from a search and view additional information such as big
description of product, price, shipping time.
IV. Register as a new customer of the virtual video store.
V. Logging with a username and password.
VI. Add item to the shopping cart.
VII. Pay for the item added to the shopping cart.

Following figure shows the browsing behavior model of an online video store:

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1. Home
This is the state of customer is in.
2. Login
In this state customer’s login to the site, sometimes homepage may even ask to login.
3. Register
To have an account created by registering with online video store, Customer selects the
proper link for the registration page, thus making a transition to the register state.
4. Search
A customer goes to this section after issuing a search request.
5. Browse
After selecting the links available at the site, customer visit to view any of the pages of
the site.
6. Select
A search returns a list of zero or more links to video. By selecting these customer moves
to this state.
7. Add to cart
A customer moves to this state upon selecting the button that adds a selected video to
the shopping cart.
8. Pay
The customer moves to the billing section.
9. Exit
Customers may leave the site from any state.

In the above figure, customer can enter the virtual video store at only three stages home, browse
and search. This figure reflexes all possible transaction between states. However, during a single
visit to the e-store, a customer may not visit all states or there may be different states or there may
be different visit by the same customer to the site.

Consider that during the visit to the e-commerce site, a customer visits the select states forty times.
Out of these, the customer moves to the search states 16 times, to the browse state 15 times, to the
add to cart state 8 times and once to the exists state. We can then say that transaction frequency
out of the select state are 16/40 i.e. 0.40 to search state, 0.375 i.e. 15/40 to browse state, 0.2 i.e.
8/40 to add to cart state and 0.025 i.e. 1/40 to exist state. It is possible for the same customer to
exhibit different types of behavior during each visit to the site. Thus, browsing behavior model is in
fact association to a visit to a site not necessarily to a specific customer.