E – Marketing

Introduction to E Marketing; Meaning & Scope

Introduction

Marketing companies are concerned with

– Efficient and Effective technology
– Changes in the market due to technological innovations
– Impact of technology on future changes

E Marketing is the use of information technology in the processes of

– creating, communicating and delivering value to customers
– managing customer relations

E Marketing is the fusion of IT with traditional marketing

Effects of E Marketing on a traditional marketing company

– Increases efficiency and effectiveness of marketing
– Transforms marketing strategies
– Helps in identifying new business models
– Adds to customer value and satisfaction
– Increase company profits
– Technology convergence

E Business
E Commerce
E Marketing

Internet
It’s the global network of interconnected networks where web pages are
shared, where people send & receive data, and carry out online transactions.
Three technical roles
4. Content providers (info, entertainment, etc)
5. Users
6. Technology Infrastructure to move,

Types of Networks
Intranet : Use internet standards but restricted to only internal users of a
firm.
• Extranet: Two or more proprietary networks that are joined together for
sharing information.
2 intranets = 1 extranet.
• Web: It’s the portion of the internet that supports a graphical user interface
for

E Marketing is bigger than the Web

• E Marketing technology uses many other software and hardware not
related to the web
• Non-web internet communication like emails, efaxs, etc are effective
marketing tools
• Internet delivers text, audio, video, etc., to many other devices not only to
computers
• Offline electronic data collection devices( bar code readers, scanners

E Marketing is bigger than technology

• Individuals: Access to unlimited information; Access to various forms of
entertainment; Connect with people; etc
• Communities: Blogs; Social and Professional networking; and Forges
partnerships
• Business: Digitalized, cross functional environment drastically increased
efficiency and profitability
• Societies: More efficient markets, more
Evolution and future of E – Marketing & its
relation to Internet
Evolution of E Marketing
• 1990’s Dot-com gold rush
• 2000 to 2002 Dot-com burst (500 firms closed)
• Adopted by all companies E-Marketing today

E Marketing Challenges; Opportunities & E

Strategic Planning

Challenges
• Low percentage of computer penetration
• Internet connectivity
• Low percentage of surfers entering into online transactions
• Credit cards
• Cyber security
• Cyber crime
• Loss of personal touch in shopping
• Legal issues (Trade mark, Domain name, Copyright, Jurisdiction issues,
etc.)
• Mistaken purchases or auctions

Opportunities
• Internationally more than 33% of surfers buy online
• E Marketing reduces prices
• Huge potential for growth (70% rural population)
• E Intermediaries
• Affordable computers and internet connectivity
• Desire of the customers
E Strategic Planning
“Strategic planning is the managerial process of developing and maintaining
a viable fit between the organizations objectives, skills and resources and its
changing market
opportunities” Kotler

Incorporating digital technology into strategic planning is e strategic

Goals of a Strategy
• Growth
• Competitive position (Industry leader, Price leader, Cost leader, Quality
leader, etc.)
• Geographic scope
• Others like presence in number of industries, range of products, core
competencies to be developed, etc.

Important Rationale
• Strategic justification
• Operational justification
• Technical justification
• Financial justification

Competitive Advantage by using

• New Entrants/Substitution : Reduced entry cost; New
sales channels; New service opportunities.
• Suppliers & Traders: Cost reduction; Quick response;
Lock in
• Buyers: New sales channels; Information; No
intermediaries
• Competitive Rivalry: Cost leadership; Differentiation;
Focus
E Business Models & Performance
Metrics

Business Models
• It’s a method by which the organization sustains itself in the long
term and includes its value proposition for partners and customers as
well as its revenue systems
• It describes a set of business entities and interrelationships among
them. The model describes the sources of revenue
and potential benefits accruing to the involved business participants

E Business Models
• Activity level E Business Models (increases efficiency, reduces costs
& low risk)

– Online purchasing
– Order processing
– E mail
– Content publisher
– Business Intelligence
– Online advertising
– Online sales promotion
– Pricing strategies

• Business process level E Business Models [Increases a firms

effectiveness]

– Customer relationship management

– Knowledge management (reports, customers account info, product sales info,
etc.)
– Supply chain management
– Community building / Networking
– Affiliate programs (link to another’s website)
– Database marketing (collecting, analyzing, disseminating e-info about
customers, products, etc.)
– Enterprise resource planning (back office systems for order enquiry,
purchasing, invoicing, and inventory control)

• Enterprise level E Business Models [Most business process are

fully
automated]

– E commerce (direct selling, content sponsorship)

– Portal
– Online brokers
– Manufacturers agents
– Purchasing agents (buyers cooperative)
– Virtual mall

Performance Metrics
These are measures designed to evaluate the effectiveness
and efficiency of an organizations operations or its strategic
effectiveness

The Balanced Scorecard

Focus of certain companies to measure performance was
either profits or growth or expanding market.
The Balanced Scorecard was developed to measures many
aspects of a firms achievements.
4 Perspectives in Balanced
Scorecard
• Metrics for Customer Perspective -
Customer Loyalty, Lifetime value, Customer perception of
product value, Customer buying pattern, etc.
• Metrics for Internal Business Perspectives- Quality of service,
Inventory levels, Supply chain management, Supplier
satisfaction, etc.

• Metrics for Innovation and Learning Perspectives –

Human resource development, product innovations, constant
innovation in marketing processes, improvements in CRM,
etc.
• Metrics for Financial Perspective –
Potential sales forecast, estimate expenditure, give time
projections for breaking even, ROI, Net profit, etc.

Overview of E Marketing Plan, Creating an E

Marketing Plan
&
Seven step E Marketing Plan
E Marketing Plan
• It’s the process of identifying how to use IT to enhance revenues, increase market
share and to reduce costs
• It’s the process of identifying sustainable competitive advantage derived out of
digital technology
• How to enhance efficiency and effectiveness by using digital technology in the
marketing planning process
Creating a E Marketing Plan
• It’s a guiding, dynamic document that links the firms e-business strategies
with e-marketing strategies and lays out the implementation plan for
marketing management
• Two types of e marketing plans
– The Napkin Plan/Activity based Plan/Bottom-up Plan
– The Venture Capitalist Plan

Seven Step E Marketing Plan

• Strengths and Weaknesses – Internal
• Opportunities and Threats – External
– New products, markets, media, channels, etc.
– Legal, technological, market related, etc.
Step II - E Marketing Strategic Planning
• Market Opportunity analysis
– Demand analysis: Market segmentation analysis to describe and
evaluate the
potential profitability, sustainability, accessibility and size of potential
segments. B2C & B2C
– Supply analysis: Forecasts segment profitability and finds competitive
advantage to exploit the online market. Differentiation variables, positioning
Step III - Objectives
• Main objectives
– What is to be accomplished
– How much
– By when
• Others
– Increase market shares
– Increase sales revenue
– Reduced costs
– Increased brand awareness
– Better database
– Better CRM
– Improve Supply Chain Management
Step IV – E Marketing Strategies
• The Offer: Product strategies – Existing products sold online or new
products offered to the customers
• The Value: Pricing strategies – Dynamic pricing and Online bidding
• Distribution strategies – Direct marketing and Agent E Business models
• Marketing Communication strategies
• Relationship Management strategies – CRM software + customer behavior
=
comprehensive database
Step V – Implementation
plan
Creation of the right marketing organization for implementation – Staff,
Department structure,

Step 6 - Budget
• Revenue forecast
• Intangible benefits
• Cost savings
• E Marketing costs
– Technology costs
– Site design costs
– Salaries
– Other site related costs
– Marketing communication costs
– Mischellaneous

Step VII – Evaluation Plan

Internet users characteristics and behavior &

E Marketing environment

Internet user characteristics

• Global character
– Chinese is the fastest growing internet language
– Fastest growth seen in Africa and in Middle East
– Internet penetration is max in North America, more than 70%
– Top 10 countries in the world account for more than 60% of users
– Asia is just above Africa in internet

Characteristics & Behavior

• In developing countries most of the internet users are educated and belong
to the richer groups
• In developing countries internet access is generally in offices
• In developed countries and in some developing countries internet addiction
has
become a problem
• In developed countries more and more people are buying online
• Trust in online payments is low

E Marketing Environment
• Market differences
• Market similarity
• Credit cards and secure online payment system
• Computers and Communication (in India around 1% own a computer)
• Internet costs
• Connection speed
• Better web designs because of broad band
• Electricity
• Wireless internet access
• The digital divide in developing countries
• Government policies

Ethical and Legal Issues & Privacy Issues

Ethics and Law

• Ethics concern the values and practices of professionals who
have expert knowledge of a specific field and also the society as a
whole.
• Law is generally for a broader spectrum of the society and made
by
an elected body of the citizens of a nation.
Characteristics of Ethics and
Ethical Code
• As ancient as civilization
• Focuses on differentiating between the right and the wrong
• Examines responsibilities, rights and obligations of the people under study
• Ethics study human interactions, political, legal and commercial issues
related to transactions
• Scope is very wide
• Certain ethics may contradict each other
• Each specialized group have their own code of ethics
• Helpful to communicate both internally as well as externally

Ethical & Legal Issues

• Piracy
• Problems with self regulation
• Privacy