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MKTG 403

Electronic
Marketing
Essentials
D r. M r s . S h e e n a L .
Boateng
University of Ghana
Business School
slboateng@ug.edu.gh
Introduction and
Foundational Concepts
Session 1

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 2


Learning Outcomes
By the end of the session, students
should be able to:
1. Appreciate the nature of the course
and the general course
requirements.

2. Define and explain the following


concepts:
• E-business
• E-marketing
• Multichannel marketing

3. Understand the benefits of e-


marketing using the 5S model.
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2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 3
Definition of Core
Concepts

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E-business
• E-business refers to the use of common electronic
data standards with computer automation technology
to electronically interconnect information
systems, integrate internal and external data
streams, and automate business processes
between trading partners in the value chain
(Rodgers et al., 2002).

• It
provides links to customers, suppliers, business
partners, and employees through the Internet,
intranets, and extranets, essentially creating the
ability to run a business online, regardless of
geographic region; a process which includes e-
marketing.
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• E-marketing involves achieving
marketing objectives through the
application of electronic
communication media, data and
technology.

• Electronic or digital communication


E-marketing
media here include both internet and
non-internet enabled channels,
although internet (online) technology
with its unique properties and
strengths have spearheaded the
evolution and practice of e-
marketing.
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1. Ubiquity
• The Internet/Web technology is
available everywhere: work,
home, etc., and anytime.
2. Global reach
Characteristics
• The technology reaches across
of the national boundaries, around
Internet the globe.
3. Richness
• Supports video, audio, and
text, graphics.
4. Universal Standard
• Internet provides a universal
standard for communication.
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5. Interactivity
• The technology enables two-way
user interaction in real time.
6. Information density
• Large amount of information or
varied quality available to all
Characteristics market participants.
of the 7. Personalization/Customization
Internet • Technology permits modification
of messages, goods, services
etc. to suit specific needs.
8. Social technology
• The technology promotes user
content generation and social
networking.
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• Multichannel marketing occurs
when customer communications
and product distribution are
supported by a combination of
digital and traditional channels
at different points in the buying
cycle or ‘path to purchase’.
Multichannel
(Omnichannel) • These digital and traditional
marketing media channels can be grouped
into three main categories using
the POE model:
1. Paid media
2. Owned media
3. Earned media
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1. Paid media
• This is marketing using any media
where the promotion is paid for
and placed by the selling
organization. Marketers can show
their ad or brand for a fee.
2. Owned media
Categories of • This is marketing in any media
Media where the product, brand or
organization owns or has control
Channels over that media and/or the
content in it.
3. Earned media
• These are streams in which
consumers, the press, or other
outsiders voluntarily communicate
something about the organization/
brand using different media.
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The POE Model

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Benefits of Electronic
Marketing
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The 5S Model of e-Marketing

• There are many examples


of poor e-marketing, which
may result from unclear
objectives, lack of strategy
or simply lousy execution.

• However, the 5S model


identifies the benefits of e-
marketing, when firms
manage to do it right.

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Benefit 1 – Sell (Grow sales)
• Goingdigital means growing sales by taking your
products and services online.

• Thisis achieved through wider distribution to


customers you can’t readily service offline or
perhaps through a wider product range than in-store
or lower prices compared to other channels.

• It
is also achieved by using digital tools to reach new
prospects, actively encourage interaction, increase
conversions and engage more actively with potential
customers.
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Benefit 2 – Serve (Add value)
• TheInternet offers unique customer-service
opportunities.

• Value can be added by giving customers better


quality service at the pre-sale, sale and post-sale
phases.

• Helps to give customers extra benefits online and


utilize the medium to inform product development
through online dialogue and feedback.

• Also,
it helps to be present and responsive to
customers at all times.
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Benefit 3 – Speak (Get closer to
customers)
• The Internet offers opportunities to communicate and
get closer to customers.

• Firms can create a two-way dialogue through the web,


email forms and polls; conduct online market research
through formal surveys; and informally monitor
conversations to learn about them.

• Understanding their interests, attitudes, and behavior


will allow you to give better responses.

• Further facilitates getting closer and building a strong


relationship with customers through participation.
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Benefit 4 – Save (Save costs)
• The Internet offers opportunities for cost reduction.

• Workingdigitally helps save money, time and effort,


by automatically reducing physical and operating
costs.

• This
is achieved through online email
communications, sales and service transactions to
reduce staff, print and postage costs.

• Savings also accrue through ‘web self-service’.

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Benefit 5 – Sizzle (Extend the
brand online)
• The Internet offers new opportunities to build and
trust, recognition, relationship and enhance your
brand by creating quality experiences.

• Achieved through providing a new proposition and


new experience online while at the same time
appearing familiar.

• If the experience you create is effective, the benefits


of engaging with your digital presence will be clear,
resulting in high levels of satisfaction and
recommendations or advocacy.
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5S MODEL
DEMONSTRATION
USING ASOS.COM

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THANK YOU END OF SESSION

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 21


MKTG 403
Electronic
Marketing
Essentials
D r. M r s . S h e e n a L .
Boateng
University of Ghana
Business School
slboateng@ug.edu.gh
Online Marketplace
Analysis
Session 2

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Learning Outcomes
By the end of the session, students
should be able to:

1. Understand the process of


conducting a situation analysis and
environmental scanning in e-
marketing.

2. Explain the components of the


digital marketing environment
(Micro and Macro) and their
implications for developing a digital
marketing strategy.
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The Online Marketplace
• The online marketplace is comprised of exchanges
of information and commercial transactions
between consumers, businesses and governments
completed through different forms of online
presence like search engines, websites and social
networks.

• It
is a relatively complex and
dynamic environment for firms to
compete in.

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The Online Marketplace
• Understanding an organization’s environment
forms a solid foundation for all types of marketing
planning, especially when devising a digital
marketing strategy.

• Firms therefore need to carefully analyze the


market context in which they operate, in order to
identify opportunities and plan so that they can
compete effectively.

• This
analysis is conducted by
means of a Situation analysis.

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The collection and review of information
about an organization’s external
environment and internal resources and
processes, in order to refine its strategy.

Situation Situation analysis is valuable only to the


extent that it improves the quality of
Analysis the resulting marketing plan.

Managers must assess the quality,


adequacy and timeliness of the data
and information used for analysis and
synthesis.

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Situation Analysis
• From the perspective of a business creating an e-
marketing plan, a situation analysis should review
the following factors:
1. Internal review (including digital marketing
KPIs and organizational processes,
competences and capabilities).
2. The Micro environment
• Customers

• Marketplace (including Intermediaries,


Influencers and potential partners).
• Competitors

3. Wider Macro environment


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Environmental Scanning
• Environmental scanning is the continuous
tracking of trends and occurrences in an
organization's internal and external environment.

• Thislargely dictates the current and future


success of the organization, given that changes in
the marketing environment can have a profound
effect on the organization’s planning and
performance.

• Hence, the need to constantly


monitor the influences from
both the micro and macro
environment.
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The E-marketing Environment
Macro
Environment

Micro
Environment

Internal
Environment

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The E-marketing Environment

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The Micro environment
Made up of the players (actors) that shape the immediate
trading environment.

E-marketers need to understand and interpret their


behavior in order to build and adapt an efficient and
effective e-marketing strategy.

They include:
Customers Competitors Intermediaries Suppliers

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1. Customer Segments
• Firmsmust identify and outline different target
segments and understand their online media
consumption, behaviour and relevant types of digital
content.

• Ine-marketing understanding customer personas


can help firms to understand the preferences,
characteristics and online behaviours of different
target markets.

• Customer Journey Maps are increasingly used to


help understand customers’ interactions with
physical and digital touchpoints, triggers and
influences.

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Customer Journey Map
Example

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2. Competitors
• Firmsthat market products or services that are
close substitutes for that of the firm in question.

• Information technology is creating a new-wave of


technology competition and transforming industry
structure in real-time.

• Thenature of this new-wave and transformation is


best understood, using the Porter’s Five
Competitive Forces model espoused by Porter
(1980) for examining competitive strategy; it
details techniques for analyzing industries and
competitors.

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Porter’s Five Competitive
Forces
• It shows the forces that shape industry competition
and is used for analyzing a firm’s competitive
environment.

• These five forces include:


• Competitors
• New market entrants
• Substitute products and services
• Customers
• Suppliers

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Porter’s Five Forces on the Internet

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3. Intermediaries
• Firms that can help a company to promote, sell and
distribute its products or services; enhancing
customer convenience.

• Online marketing intermediaries can be contrasted


from destination sites, which are typically merchant
sites owned by manufacturers or retailers that offer
information and products.

• Online intermediary sites provide information


about destination sites and are a means of
connecting internet users with products and product
information, including comparison sites, search
engines, auction site, social networks and blogs.

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Online Marketplace Map

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New Channel Structures
• Channel structures describe the way a
manufacturer or selling organization delivers products
and services to its customers.

• The internet offers a means of bypassing some


channel partners, reducing sales and infrastructure
costs that often reflect in price, leading to the creation
of three new forms of intermediation, namely:

1. Disintermediation structures
2. Reintermediation structures
3. Countermediation structures
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New Channel Structures
1. Disintermediation - This is enabled through digital
platforms that connect two sides of a market and cut out
the middlemen, such as distributors or brokers that
formerly linked a company to its customers, e.g.,
Pearson books.

2. Reintermediation -The re-invention of existing


intermediaries between customers and suppliers to offer
innovative value-adding services such as supplier
search, price comparison and product evaluation, e.g.,
Tonaton.com, Jumia Food, or Pricerunner.com.

3. Countermediation –This is where established firms


create their own new intermediaries to compete with
established intermediaries, e.g., Samsung created the
Galaxy store instead of relying only on Google Play
store.
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4. Suppliers
• They deliver the goods and services a firm needs to
carry out its business activities further down the
supply chain.
• The supply chain can take many different forms online
depending on whether physical or digital products are
involved.
• Suppliers’ impact lies in their ability to influence
product or service quality, price, availability and
features, such as Web hosting providers (Bluehost)
and Ecommerce suppliers (Alibaba).
• New suppliers that act as intermediaries and offer a
wide range of specialist technology services have
also emerged, such as Amazon Web Services
(AWS), Microsoft Azure etc.

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AMAZON WEB
SERVICES (AWS)
• Itprovides server space; cyber
security and all the infrastructure
businesses need to operate on the
internet, to firms including Netflix,
the US government and Facebook.

• They are dominant in cloud


computing globally; they have the
largest cloud services market share
globally (about 32%); followed
closely by Microsoft Azure.

• This makes Amazon the largest


landlord on the internet.
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The Macro environment
The broad forces affecting the success of all organizations
in the marketplace; e-marketers require a solid
understanding of this context.

These forces originate from the marketplace and are largely


beyond the immediate control of the organization.

They include:
International Technology Society Country-specific

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1. International Factors
• Consider the influences of political, economic, socio-
cultural, legal and environmental forces on an
international level.

• Internet
penetration and use varies greatly from
country to country. A country’s population might not
always directly correlate with internet penetration
levels.

• Countries also have varying economies; and given


that these forces affect demand and supply growth,
digital marketers need to monitor these influences
including interest and exchange rates, and
economic growth.

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1. International Factors
• Countries further have different
laws that govern digital marketing,
such as Data protection and
privacy laws, Brand and trademark
protection laws, Intellectual
property rights, Anti-spam
legislation etc.

• Socioculturally, there are varied


cultures, languages, lifestyles,
tastes and preferences all of which
influence digital marketing activity.

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2. Technological Factors
• Considerinnovations in technology and digital
marketing trends, which evolve in real time.

1. Artificial Intelligence (AI) and


Machine Learning, e.g.,
Chatbots dominating customer
service Rafiki from Ecobank, Tobi
from Vodafone etc.

2. Crypto currency
e.g., Bitcoin,
Dogecoin, Etherium,
Litecoin etc.

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2. Technological Factors
3. Video marketing, is still the
most engaging form of content
available, and the most popular
way that customers want to
learn about products.

4. Augmented Reality and


Virtual Reality e.g., the
Metaverse (Sandbox;
SuperWorld), Zozomat
and Zozo Bodysuit 2

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3. Country-specific Factors
• Consider
country-specific influences of political,
economic, social, legal and environmental forces .

1. Language and culture


2. Level of internet penetration, access and
adoption.
3. Policies and Laws
4. Political control and democracy.
5. Taxation
6. Economic growth and infrastructure
7. Internet governance (#KeepItOn)

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4. Societal Factors
• Consider the influences of society and its actors.
• Public opinion and general attitude about the
industry, brand, company and products often
drive demand and supply.
• E-marketers must also consider and
address moral and ethical issues, for
instance in advertising and other
promotions.
• The trend of Cancel Culture
(#Cancelled): the practice of withdrawing
support for a person or company, often on
social media, based on their views or
actions.
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THANK YOU END OF SESSION

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 36


MKTG 403
Electronic
Marketing
Essentials
D r. M r s . S h e e n a L .
Boateng
University of Ghana
Business School
slboateng@ug.edu.gh
Segmentation, Targeting
and Positioning Online

Session 3

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Learning Outcomes
By the end of the session, students
should be able to:

1. Understand the different bases


for customer segmentation in e-
marketing.

2. Understand and explain the


processes of targeting,
differentiation and positioning
online.

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Segmentation, Targeting and
Positioning (STP)
• STP is an acronym for Segmentation, Targeting,
and Positioning – a three-step model that
examines your products or services as well as the
way you communicate their benefits to specific
customer segments.

• It
is effective because it focuses
on breaking your customer base
into smaller groups and
developing specific strategies
to reach and engage each target
audience.
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What is Segmentation?
• The process of aggregating
individuals or businesses
along similar characteristics
that pertain to the use,
consumption, or benefits of a
product or service.

• The result of market


segmentation is distinct groups
of customers called market
segments.

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What is Targeting?
• It
is the process of selecting the market segments
that are most attractive to the company.

• Some criteria companies


use to select segments
for targeting include
accessibility,
profitability, and
growth potential.

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What is Positioning?

• It
is the ability to influence
consumer perception
regarding a brand or product
relative to competitors.

• Theprocess indicates how


you differentiate your
product/ service from that
of your competitors and
then determine which market
niche to fill.

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SEGMENTATION
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Segmenting Online Customers
• Marketers can base their segmentation of
consumer markets online on any of the following:

1. Demographics
2. Psychographics
3. Geographic location
4. Behavior

• Or a combination of them, like Geodemographics,


Geopsychodemographics etc. for more
competitive positioning.
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Geographic Segmentation
• Segmenting the market based on geography by
targeting specific cities, regions, states, or
countries with their product offerings.

• Product distribution strategy is a driving force


behind geographic segmentation.

• Online firms will typically only sell in geographic


areas where they can provide distribution service
and follow-up customer assistance in the
appropriate language.

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Geographic Segmentation
• Before deciding to use the online channel, firms
must examine the proportion of internet users in
their selected geographic targets.

• They should ask themselves, for instance, ‘Would


it make sense to build a website that serves
citizens of Ghana?’

• China boasts the largest internet usage in the


world with 1 billion and 20 million users; followed
by India with 658 million, then the USA with 307.2
million users (Statista, 2023).

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Geographic Segmentation
• Also, while internet adoption may be high, the
adoption of some global platforms like Google and
Facebook may be low.

• Other countries may have their own similar


versions of these platforms, which may be more
popular.

• For instance, Sina Weibo, WeChat and Baidu


which are very popular in China, and imitate the
likes of Twitter, Facebook and Google.

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Geographic Segmentation

• English is also not the


main language of most
webpages in specific
geographic locations.

• See below the most spoken


languages worldwide in
2022 (by speakers in
millions) (Statista, 2023).

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Psychographic Segmentation
• Online users’ psychographics including their
attitudes, personality, values, activities, lifestyle,
interests and opinions are used to segment.

1. Interest communities -
Communities can form around social
media or other Web sites and
forums, or via e-mails to the entire
group membership, e.g.,
Entertainment communities,
Education communities, Special
topics communities, Scheduled
event communities etc.
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Psychographic Segmentation
2. Attitudes and Behaviours

• Attitude is the positive


or negative emotions
exhibited by an
individual towards an
object.

• Behavior refers to what a person physically and


practically does as a product of their attitude,
such as registering at a Web site, posting a
comment on a blog etc.
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Psychographic Segmentation

• Psychographic information helps e-marketers to


define and describe market segments so they can
better meet consumer needs.

• It is especially
important for web page
design and deciding
what media to use for
connecting with
prospects and
customers.

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Behavioral Segmentation
• It is one of the big opportunities provided through
digital marketing.

• It involves assessing customers’ behaviors and


actions in the past (i.e., using web analytics), such
as following links, reading content, using online
services and buying products.

• Three commonly used


behavioral segmentation
variables are benefits sought,
occasion or timing, and product
usage.
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Behavioral Segmentation
1. Benefits sought
• Marketers often create groups of consumers
based on the benefits, perceived value or
advantage they desire from the product/
service; e.g., quality, performance etc.

• Customers place a higher value


on one or more benefits over
others, these primary benefits
sought are the defining motivating
factors driving the purchase
decision for that customer.
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Behavioral Segmentation
2. Occasion and Timing
• Segmentation is done based on when customers
are most likely to make a purchase or engage with
a brand, be it universal or personal occasions.
1. Universal occasions like holidays and seasonal
events.
2. Recurring personal occasions for individual
customers, often annually, such as birthdays,
anniversaries or vacations etc.
3. Rare personal occasions for individual customers,
which are more irregular and spontaneous, and
thus, more difficult to predict, e.g., funerals.
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Behavioral Segmentation
3. Product usage
• Segmentation is done based on how often (and
how much) customers are using a product or
service; and how they are using it.
1. Heavy Users (or “Super Users”) are customers
that spend the most time using.
2. Average or Medium Users are customers that
semi-regularly use or purchase, but not very
frequently.
3. Light Users are customers that use or purchase
much less in proportion to other customers.

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Demographic Segmentation
• Online demographics serve as a significant basis
for online promotion decisions.

• They are often used as the basis for sites to


purchase display advertising.

• Its also a basis for renting email


and other contact lists.

• It is further used to limit or focus


who pay-per-click search ads
are displayed to.

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Demographic Segmentation
• This segmentation is typically based on age, gender
or social group, especially age using Generational
Theory.
1. Gen Alpha (2010 to present)
2. iGen or Gen Z (1995- 2009)
3. Millennials (Gen Y) (1980-1994)
4. Generation X (1965-1979)
5. Baby Boomers (1946-1964)
6. Silent Generation (Builders) (1925-1945)
Garrick et al. (2017)
2022 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 24
Demographic Segmentation
• Gen X, Millennials (Gen Y) and Gen Z (iGen) are
an important market segment because:

1. They were mostly born in the


technology era, use many
technology gadgets at once, and
totally ignore marketers.

2. They are also able to handle


multi-tasking and information
overload better than older
internet users because they grew
up with the internet.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 25
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 26
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 27
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 28
TARGETING
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 29
Targeting Online Customers
• After reviewing many potential segments,
marketers must select the best for targeting.
• To be attractive for targeting, an online segment
must:
1. Be accessible through the internet.
2. Be sizable and growing.
3. Hold great potential for profit.

• The e-marketer must then design a Targeting


Strategy.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 30


Targeting Online Customers
• The internet is especially well suited for two targeting
strategies:
1. Niche marketing
• A niche market is a subset of a larger market with its
own unique characteristics, preferences, and needs.
• Niche marketing targets one or more segments
identified within the larger market.
2. Micromarketing (Individualized targeting)
• Micro-marketing takes things even further by
targeting a specific group or individual within a niche
market.
• Tailoring all or part of its marketing mix to this group.

2022 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 31


POSITIONING
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 32
Online Positioning
• Positioning defines where your product (item or
service) stands in relation to others offering
similar products and services in the marketplace,
as well as the mind of the consumer.

• A good positioning makes a


product/ service unique by
differentiating it and
making the users consider
its utilization as a distinct
benefit to them.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 33


Online Positioning Bases
1. The first step in positioning is to determine the
product category in which the brand competes,
in order to identify direct competition.

2. Next determine whether or not


the product/ service is
differentiated in the category.

3. Create a position for the


product/ service. E-marketers
will often position based on
technology.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 34


Differentiation and Online
Positioning
• Prior to designing any online marketing mix
strategies, the company must make
differentiation and positioning decisions based
on target market needs and competitive
offerings.

• The goal is to obtain a


Differential
Advantage over their
competition.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 35


Online Positioning Bases
E-marketers often position based on the following:
1. Technology – Most innovative platforms in terms
of functionalities.
2. Product attributes/ benefits – e.g., Best quality,
fastest delivery of orders; e.g., Asos.com
3. User category – Based on specific customer
categories e.g., nickelodeonafrica.com for kids.
4. Competitive position – Usually in terms of price,
e.g., Android and IOS.
5. Integration – e.g., Weddors.com integrates
everything to do with weddings in Ghana.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 36
Assignment
• Watch the 1-800
Flowers video case.

• Discuss 1-800-Flowers’
segmentation, targeting,
differentiation and
positioning strategy in
the context of e-
marketing.

https://www.youtube.com/watch?v=U400jXSOAkk
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 37
THANK YOU END OF SESSION

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 38


MKTG 403
Electronic
Marketing
Essentials
D r. M r s . S h e e n a L .
Boateng
University of Ghana
Business School
slboateng@ug.edu.gh
Electronic Marketing
Planning I
Session 4

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 2


Learning Outcomes
By the end of the session, students
should be able to:

1. Explain the nature and importance


of e-marketing planning and
developing an e-marketing plan.

2. Develop an integrated e-marketing


plan.

3. Understand the importance of


control, and evaluation in e-
marketing plan execution.

2021
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 3
Why e-Marketing Planning?

‘Our goals can only be


reached through the vehicle of
a plan, in which we must
fervently believe, and upon
which we must vigorously act.
There is no other route to
success,’ Picasso.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 4


e-Marketing Planning
• E-marketingplanning is a channel strategy that
involves creating a blueprint for e-marketing
strategy formulation and implementation.

• The
product of e-marketing planning is an e-
Marketing plan or strategy.

• It
is normally a part of an organization’s overall
marketing plan, flowing from its overall business
goals and strategy which provides a consistent
direction for an organisation’s online marketing
activities.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 5


Importance of the
e-Marketing Plan/ Strategy
1. It serves as a road map to
guide the firm in the direction
it wishes to take.

2. It is often required when


seeking funding.

3. It helps you set clear,


realistic and measurable
objectives for your e-
marketing activities.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 6
Importance of the
e-Marketing Plan/ Strategy
4. It helps the firm to allocate
resources and make
adjustments as needed.

5. It guides the delivery of the


desired results, measured by
performance metrics.

6. It lays out the details for


implementation of the plan
through marketing
management.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 7
Internal and External Influences
on e-Marketing Strategy

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 8


Integrating e-Marketing plans with
Marketing plans

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 9


2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 10
E-Marketing Strategy
Formulation Process
E-marketing Strategy
Formulation
• E-marketing planning and strategy formulation
comprises a complex and resource-intensive set
of processes that can deliver great rewards if fully
embraced.

• A strategy process model provides a logical


sequence to follow in, ensuring the inclusion of all
key activities of strategy development and
implementation.

• PR Smith’s SOSTAC model is an overall strategy


process model that can be applied to developing
e-marketing strategy .
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 12
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 13
Situation
Analysis
Situation Analysis
Explained
• Situation analysis is the first part of the digital
marketing plan that answers the question ‘Where
are we now?’ after which the firm can define
where they want to go.
• It refers to the collection and
review of information about an
organisation’s internal
processes, capabilities and
resources and external
marketplace factors in order
to inform strategy formulation.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 15


Situation Analysis
Explained
• Decisions about strategy and tactics become a lot
easier when a thorough situation analysis is
performed to understand the internal and external
context of the firm as it relates to e-Marketing in
order to succeed.

• A thorough situation
analysis is the
foundation of a great
plan and should
contain an analysis
of:
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 16
Situation Analysis
Explained
1. Customers
2. Competitors
3. Partners (and intermediaries)

4. Competencies (including competitive


advantage)
5. Performance (KPIs and strengths and
weaknesses)
6. Market trends (analyse SLEPT factors to identify
opportunities and threats)

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 17


Internal Audit for e-Marketing
Planning
• Through the internal audit, the firm analyses its
competences, capabilities, processes and
resources to ascertain its strengths and
weaknesses.
• Specifically, a Digital Marketing Capability
analysis is performed to ascertain where the firm is
in terms of digital competencies.

• The strengths and weaknesses identified at the


end of the process are then compared wit the
opportunities and threats by means of a SWOT
analysis.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 18
Digital Marketing
Capability Analysis Model

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 19


2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 20
Amazon SWOT Analysis Example

Strengths Weaknesses
• Smart and talented team • No experience selling
that stayed focused and books, boxing books for
learned what it did not shipment or processing
know. credit card transactions
online.
• Less potential for channel
conflict.

Threats Opportunities
• A large bookstore chain had • Majority of the larger
launched a full-scale push to bookstore chains like
claim online book market. Barnes and Noble delayed
their moves to establish an
• Data security and foreign online presence.
exchange rate fluctuations.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 21


2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 22
Setting
Objectives
Setting Objectives for e-Marketing
• Objectives answer the question ‘Where do we
want to be?’ and are based on clearly defined
corporate objectives.

• E-marketing objectives generally outline what is


to be accomplished, in what quantity and within
what time frame, which influences the firms’ e-
marketing strategy formulation.
• Typically, businesses
must use a SMART
approach when setting
objectives.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 24
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 25
The RACE Approach to
Objectives
• The Smart Insights RACE framework (Reach,
Act, Convert and Engage) helps businesses to
formulate objectives based on how the customer
moves through the customer life cycle from initial
contact to lifetime loyalty.

• Each stage can be quantified as an


objective which helps marketers to
manage and improve the commercial
value that their organisations gain
from digital marketing.

2022 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 26


• Reach involves building awareness
and growing the audience of a firm’s
brand, its products, and services
online using paid, owned and earned
media.

• This enables the firm to build traffic by


driving visits to their different web
presences like their main site or social
media pages through various online
platforms.

• e.g., to increase new visits to your


website by 5% or 500 visitors per
month .
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 27
• Act is short for Interact.

• Itinvolves encouraging initial


interaction with content on online
platforms which then generates leads.

• It's
about persuading site visitors or
prospects to take interest and move
towards taking the next action when
they initially reach your site or social
network presence, e.g., ‘Sign up’,
‘Add to basket’.

• e.g.,to increase leads by 1% or to


100 leads per month
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 28
• Thisis conversion to sale, which can
occur either online or offline.

• Itinvolves getting your audience to take


that vital next step which turns them
into paying customers.

• This payment can be taken both


through online ecommerce transactions
or brick and mortar channels.

• e.g.,increase online sales


conversion rate by 10 per cent from
2 per cent or to 100 conversions per
month.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 29
• This refers to post-sales engagement
designed to create long-term loyalty
and advocacy.
• Is done using communications
through the website, social presence,
email and direct interactions to boost
customer lifetime value.
• Itcan be measured by repeat actions
such as repeat purchase and sharing
content through social media.
• e.g.,to generate 10 per cent more
five-star reviews, shares or likes.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 30


2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 31
Examples of SMART E-marketing
Objectives
✓Reach Objective - Increase unique visits by
20% within 1 month.

✓Acquisition or conversion objective - Migrate


40 per cent of existing customers to using online
‘paperless’ services within three years (e.g., for a
bank or utilities company).

✓Conversion objective - Increase percentage of


service enquiries fulfilled online by ‘web self-
service’ from 85% to 90%.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 32


THANK YOU END OF SESSION

2022 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 33


MKTG 403
Electronic
Marketing
Essentials
D r. M r s . S h e e n a L .
Boateng
University of Ghana
Business School
slboateng@ug.edu.gh
Electronic Marketing
Planning II
Session 5

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 2


Learning Outcomes
By the end of the session, students
should be able to:

1. Explain the nature and importance


of e-marketing planning and
developing an e-marketing plan.

2. Develop an integrated e-marketing


plan.

3. Understand the importance of


control, and evaluation in e-
marketing plan execution.

2021
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 3
E-marketing
Strategy
Formulation
Strategy Formulation
• Strategy answers the question ‘How do we get
there?’ It summarizes how to fulfil the objectives and
guides all the subsequent detailed tactical decisions.

• Strategy formulation involves:


1. Generating alternative strategies and
reviewing the merits and demerits of each
of these options.
2. Selecting the strategy that has the best fit
with a company’s trading environment
and its internal resources and capabilities.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 5


Strategy Formulation
• Strategies
are agreed to be the most effective
when they support specific business objectives
like:
1. Increasing the online contribution to revenue.
2. Increasing the number of online sales
enquiries.
• Butcompanies should be
realistic about what their
strategies can achieve and
must base digital strategies on
sound logic and thorough
analysis.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 6
Key Components of E-marketing
Strategy
• Thereare nine key components to consider to
consider when building your e-marketing strategy.

• You do not have to use all nine key components


in your electronic marketing strategy. But do, at
least consider each of them, especially the
essential ones.

• These are represented using


the acronym TOPPP SITE,
which stands for:

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 7


Key Components of E-marketing
Strategy
•Target markets (essential) - These need to be
defined very clearly. Time and effort spent identifying
the most ideal target market/s is time well spent.

•Objectives (essential) - It’s helpful to ensure that the


strategy actually delivers the ‘big’ objectives, as well
as the typical sales, market share and ROI KPIs.

•Positioning (essential) - Positioning means precisely


how you want to be perceived) in the minds of your
target customers compared to competition.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 8
Key Components of E-marketing
Strategy
•Processes - strategy can involve new
processes like marketing automation or insisting
analytics are used to measure, understand and
drive all future decisions. Some of these will
overlap with ‘Integration’ to create major
opportunities.

•Partnership - strategic alliances and marketing


marriages can make marketing easy by
providing access to a much bigger target market
and strengthening your brand.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 9
Key Components of E-marketing
Strategy
•Sequence or stages - the RACE framework
presents the sequence in which strategy must be
developed and executed, e.g., building
awareness, then brand preference before seeking
sales.

•Integration (of data) - involves integrating


customer data online and offline. Having social
data, as well as a complete history of your leads’
and customers’ activity in one place is invaluable
to your company.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 10
Key Components of E-marketing
Strategy
•Tactical tools (or channels) - these identify the
major or priority tactical tools (channels) that
will be utilized, e.g., PPC, SEO, email etc.

•Engagement - there are different levels of


visitor engagement, from encouraging visitors
and customers to give ratings and reviews to
nurturing advocates to collaborating and co-
creating ideas and products.
This is known as the Ladder of Engagement
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 11
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 12
Key Components of E-marketing
Strategy
•Tactical tools (or channels) - these identify the
major or priority tactical tools (channels) that will
be utilized, e.g., PPC, SEO, email etc.

•Engagement - there are different levels of visitor


engagement, from encouraging visitors and
customers to give ratings and reviews to nurturing
advocates to collaborating and co-creating ideas
and products.
This is known as the Ladder of Engagement

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 13


The Ladder of Engagement
• TheLadder of Engagement is a term used to
describe the levels of interest and participation
among a group of people over time.

• It
is used as guide by electronic marketers in
using the relevant tools to deepen user
commitment to their brand, products and
services online.

• The concept suggests that people are likely to


become supporters of your organisation by
taking easy actions but can be consciously led
up the ladder to take harder and harder actions.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 14
The Ladder of Engagement

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 15


Strategy
Implementation
Tactics
and
Actions
Tactics
• This captures specific details about the strategy
including what, when and how it will be deployed
online.

• This is done relative to the digital strategy


formulated and details what happens when and
how it happens, including the digital roadmap, 90
Day plans, media schedule, editorial calendar etc.

• It presents the e-campaign initiative that highlights


aspects related to an ‘Always-on’ continuous
communications mix, Inbound and Outbound
contact strategies, and online value proposition.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 18


Media Schedule

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 19


Actions
• ‘Everything must degenerate into work’ (Peter
Drucker), where strategies and tactics cascade into
work which needs to be carried out.
• Actions consider how to ensure that the plan is
carried out professionally and passionately by the
responsible team members.
• They designate who does what and when in the
frame of responsibilities, structures, internal
resources and skills and external agencies.
• Anything from training programmes to issuing
checklists can help staff to avoid classic mistakes,
and this needs to be built into and budgeted for in
your plan.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 20
Strategy
Control
Strategy Control
• This captures how the digital marketer will monitor
performance of ongoing tactics and actions in order
to obtain feedback for evaluation purposes.

• This is done using Key


Performance Indicators
(KPIs), powered by the
strategy objectives, tactics,
web analytics and regular
reporting to measure
progress and take corrective
action where necessary.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 22


Performance Metrics
• Performance metrics also called KPIs
inform e-marketing strategy evaluation
and control.

• The only way to know whether a


company has reached its e-marketing
objectives is to measure its results.

• Metricselection and measurement must, therefore,


be done carefully based on the online channels used
so that the results can help improve e-marketing
strategy toward meeting the company goals.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 23


Website Performance
Metrics
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 24
Web Analytics
• Web analytics is the measurement, collection,
analysis, and reporting of website data to
understand and optimize web usage.

• Thefocus is on identifying measures or metrics


based on your organizational and user objectives
and using the website data to determine their
success or failure.

• The information obtained also drives subsequent


strategy and helps to improve the user’s experience
by helping you to understand their behaviour online.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 25
Key Metrics to Track
1. Total traffic – the total number of people who
visit your site in a given amount of time (daily,
weekly, seasonally etc.).

2. Source of traffic – the sources from which users


are coming to your site; how are they finding your
site (e.g., blogs, social media, referral sites,
search engines) and how can you enhance this.

3. Bounce rate – the percentage of visitors to a


particular website who navigate away from the
site after viewing only one page. Are your
customers getting distracted?

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 26


Key Metrics to Track
4. Conversion rate – the percentage of visitors to
your website that complete a desired goal (a
conversion) out of the total number of visitors
(e.g., sign up for something, make a purchase
etc.).

5. User sessions – a user session begins when a


user visits your website and ends when they
leave. What pages did they view? How long did
they spend on each page? What content were
they viewing?

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 27


Key Metrics to Track
6. Page views – the total number of pages viewed
by a user once they are on your website.

7. Churn rate – the percentage of subscribers


withdrawing or unsubscribing (after you have
emailed them).

8. Subscription rates – the number of visitors


subscribing for services such as an opt-in email
and newsletters.

9. Clickthrough rates (CTR) – landing from a


banner ad or web link on another site to your
own.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 28
Web Analytics Tools
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 29
1. Google Analytics – It is one of the best free
tools that any website owner can use to track
and analyze data about Web traffic.

2. Hotjar Analytics – allows you to visualize how


users engage with your site using interactive
heatmaps of their clicks and actions, recordings
of their sessions, and gathering of their words
from survey and feedback polls.

3. Spring metrics – Unlike Google Analytics,


Spring Metrics tracks a visitor’s path through
your website from the time he landed to the time
he left. You get real-time conversion analytics,
top converting sources etc.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 30
THANK YOU END OF SESSION

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 31


MKTG 403
Electronic
Marketing
Essentials
D r. M r s . S h e e n a L .
Boateng
University of Ghana
Business School
slboateng@ug.edu.gh
The E-Marketing Mix I
Sessions 6

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 2


Learning Outcomes

By the end of the session,


students should be able to:

1. Understand how the elements


of the marketing mix apply in
an online context.

2. To evaluate the opportunities


that the digital technology
presents for varying the
marketing mix.

2021
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 3
What is
the Marketing
Mix?

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 4


The Marketing Mix
▪ Theseare the variables that are manipulated in
formulating marketing strategy.

▪ The marketing mix – widely referred to as the 4Ps of


Product, Price, Place and Promotion – was
originally proposed by Jerome McCarthy in 1960.

▪ However, in the 1980s the 4Ps was challenged for


not referencing the intangible elements of the
market offering.

▪ Thus, the mix was extended to 7Ps, to include three


additional elements: People, Process and
Physical evidence (Booms and Bitner, 1981).
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 5
The Online Marketing
Mix
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 6
PRODUCT
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 7
Product
▪ A product
is any good or service offered to a
customer to satisfy a need.

▪ Product
decisions should
be informed by market
research where
customers’ needs are
assessed, and the
feedback is used to
modify existing products
or develop new
products.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 8
Product

▪ Thereare many
alternatives for
varying the product
in the online
context.

▪ These can be
divided into
decisions affecting
the following:

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 9


Product
1. Core product - Fulfills the basic benefits that
the customer requires or needs; addresses the
question ‘What is the buyer really buying?’, ‘What
need is being satisfied?’

2. Actual product - The actual product is the


physical manifestation of the core product
through brand name, packaging, design etc.

3. Augmented product - Additional services and


benefits beyond the core product that set it apart
from competitors like warranties, after sales
service, free delivery, rewards etc.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 10
1. Options for varying the core
product.

2. Options for offering digital


products.
Varying
‘Product’ 3. Options for changing the
extended product.
Online
4. Conducting research online.

5. Speed of new product


development and diffusion.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 11


1. Options for varying the core
product
▪ For some companies there may be options for:
1. Developing new products
which will typically be
information products that can
be delivered over the web.

2. Adding ‘digital value’ to


customers, e.g., offering
additional information or
transaction services to the
existing customer base.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 12


1. Options for varying the core
product
▪ The markets transformed most by the Internet
are those where products themselves can be
transformed into digital services.

▪ These including music,


videos, books, newspapers,
magazines and software
through digital downloads,
streaming and online
subscription services.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 13


1. Options for varying the core
product
▪ There is also the option of mass customisation of
products, to offer tailored versions of products to
individual customers or groups of customers.

▪ Masscustomisation has been


heralded as a business strategy
which derives benefits from the
personalisation of products in
which a customer takes a
more active role in product
design (Kamail & Loker, 2002).

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 14


Nike
Augmented
Reality
Shopping
Lens on
Snapchat

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 15


2. Options for offering digital
products
▪ Companies have great flexibility to offer a range
of product purchase options at different price
points, including:

1. Subscription

2. Pay-per-view

3. Bundling

4. Ad-supported content

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 16


2. Options for offering digital
products
1. Subscription: a traditional publisher revenue
model, that is offered for different periods at
different price points, e.g., monthly, quarterly,
annually etc.

2. Pay-per-view: A fee for a


single download or viewing
session at a higher relative
price than the subscription
service – e.g., music
products from iTunes.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 17


2. Options for offering digital
products
3. Bundling: different channels or content can be
offered as individual products or grouped at a
reduced price compared to pay-per-view.

4. Ad-supported
content: the publisher’s
main revenue source is
through adverts on the
site (e.g., banner ads) a
fixed sponsorship
arrangement or CPC.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 18


3. Options for changing the
augmented product
1. Endorsements

2. Testimonials and customer


comments

3. Warranties and guarantees

4. Money-back offers

5. Customer service and feedback

6. Incorporating tools to help users during


their selection and use of the product.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 19
4. Conducting research online
▪ Digital
channels provide many low-cost options for
learning about customer preferences and
perceptions of products and services.

1. Online focus group

2. Online survey

3. Social media listening

4. Customer feedback or support forums

5. Web analytics

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 20


5. Speed of new product
development
▪ TheInternet provides a platform which enables
new products to be developed more rapidly.

▪ Thisis because it is possible to test new ideas


and concepts and explore different product
options through online market research.

▪ Companies can use their own


panels of consumers to test
opinion more rapidly and often at
lower costs than for traditional
market research.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 21
6. Speed of new product
diffusion
▪ To remain competitive, organisations will have to
roll out new products more rapidly.

▪ The internet provides instant access to target


markets and platforms, which enable rapid
product development and exploration, as well as
testing of different product ideas and concepts.

▪ The ‘Tipping Point’ can be


used to understand the speed
of new product diffusion online.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 22


The Tipping Point Concept
▪ Thisis a concept that involves using the science
of social epidemics to explain the principles that
underpin the rapid spread of ideas, products and
behaviors through a population.

▪ There are three of such


principles that are
relevant according to
‘The Tipping Point’
concept.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 23


1. The Law of the Few
▪ The spread of a new product or service through
initial adoption by ‘connectors’, ‘mavens’ and
‘salesmen’ who are socially connected and
encourage adoption through word-of-mouth and
copycat behavior.

▪ Inan online context,


these connectors may
use social media, email
newsletters, podcasts
etc. to propagate their
opinions.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 24


1. The Law of the Few
▪ Connectors – this group has a special gift for
bringing people together. They know and are
connected to many people.

▪ Mavens – a trusted expert in a particular field,


who seeks to pass timely and relevant
knowledge on to others in the respective field.

▪Salesmen – this group has


the skills to persuade us
when we are unconvinced
of what we are hearing.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 25


2. The Stickiness factor
▪ Typically,
this refers to how ‘glued’ we are to a
medium such as a TV channel or a website.

▪ Butin this context, it refers to the attachment to


the characteristics and attributes of a product or a
brand, which determine retention, including:

1. Excellence: being perceived as best of a breed


2. Uniqueness: clear one-of-a-kind differentiation
3. Engagement: fosters emotional involvement
4. Cost: perceived value for money

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 26


3. The Power of Context
▪ Just like infectious diseases, products and
behaviours spread far and wide only when they
fit the physical, social and mental context into
which they are launched.

▪ Products should be devised and


tested to fit their context,
situation or occasion of use.

▪ They should also be introduced


with key timing and placement;
this can provide an added boost
in dissemination.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 27
PRICE
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 28
Price
▪ Thevariable of the marketing mix that refers to
an organisation’s pricing policies which are
used to define pricing models and to set
prices for products and services.

▪ Pricemodels describe the


form of payment, such as
outright purchase,
auction, rental, hire
purchases and credit
terms.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 29


• The main implications of the
Internet for the price aspect of
the marketing mix:
1. Increased price transparency
with implications on differential
Varying pricing.
‘Price’ 2. Downward pressure on price.
Online 3. New pricing approaches
(including dynamic pricing,
price testing and auctions).

4. Alternative pricing structure or


policies.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 30
1. Increased price transparency
▪ Pricetransparency: This refers to increased
customer knowledge about pricing due to
increased availability of pricing information.

▪ The internet has two contradictory effects on price


that are related to price transparency:

1. Differential pricing.

2. Pricing elasticity.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 31


Differential pricing
▪ A supplier can use the
technology for differential
pricing – for example, for
customers in different
countries.

▪ However, if precautions are


not taken about price, the
customers may be able to
quickly find out about the
price discrimination through
price comparison and they will
object to it.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 32
Price elasticity
▪ Price elasticity of demand is a measure of consumer
behaviour that indicates the change in demand for a
product or service in response to changes in price.

▪ Pricing online is relatively inelastic, mainly because:

1. Pricing is only one variable


consumers consider aspects about the
brand such as familiarity, trust and
perceived service levels.

2. Display of satisficing behaviour


consumers will compare alternatives,
but then may make their choice given
imperfect information.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 33
2. Downward pressure on
price
▪ The competition caused by price transparency and
increased number of competitors is the main
reason for downward pressure on price.

▪ Aggregators and price comparison sites also


contribute to this, e.g., Pricerunner.com.

▪ Online companies can also operate


at lower pricing levels than offline
rivals.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 34


3. New pricing approaches
▪ TheInternet has proved to have the technological
capacity to create new pricing options.

▪ Different
pricing mechanisms, which were
available offline before the advent of the Internet
have become easier to apply using the Internet.

▪ In
particular, the volume of users
makes traditional or forward
auctions (B2C) and reverse
auctions (B2B) more tenable and
have become more widely used.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 35


4. Alternative pricing structure
and policies
▪ Differenttypes of pricing may be
possible on the Internet,
particularly for digital,
downloadable products like
Software and music

▪ The Internet offers new options


such as payment per use, rental
at a fixed cost per month, a
lease arrangement and
bundling with other products.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 36


THANK YOU END OF SESSION

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 37


MKTG 403
Electronic
Marketing
Essentials
D r. M r s . S h e e n a L .
Boateng
University of Ghana
Business School
slboateng@ug.edu.gh
The E-Marketing Mix II
Sessions 7

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 2


Learning Outcomes

By the end of the session,


students should be able to:

1. Understand how the elements


of the marketing mix apply in
an online context.

2. To evaluate the opportunities


that digital technology
presents for varying the
marketing mix.
2021
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 3
PLACE
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 4
Place
▪ The element of the marketing mix that involves
distributing products to customers in line with
demand and minimizing cost of inventory transport
and storage.

▪ This might be done


using a physical
store, virtual
organization,
through an app or
via a website.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 5


• The main implications of
digital for the place aspect of
the marketing mix reviewed in
Varying this section are:
‘Place’
1. Place of purchase
Online
2. New channel structures

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 6


Online options for place of
purchase

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 7


2. New channel structures
1. Disintermediation – This is plausible, although
selling direct can lead to channel conflicts.

2. Reintermediation - The new intermediaries


created through reintermediation should be
evaluated for suitability for partnering in affiliate
arrangements.

3. Countermediation – These are strategic


options to make better use of online
intermediaries, such as a firm partnering with,
purchasing or creating its own independent
intermediaries.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 8
PROMOTION
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 9
Promotion

▪ The element of the marketing


mix that involves
communication with
customers and other
stakeholders to inform them
about the product and the
organization and convince
them to make a purchase.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 10


Varying ‘Promotion’ Online

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 11


Interactive Display Adverts

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 12


Varying ‘Promotion’ Online

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 13


Site Merchandising

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 14


Assisted Selling

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 15


Varying ‘Promotion’ Online

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 16


Rewards

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 17


Online Loyalty Schemes

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 18


Varying ‘Promotion’ Online

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 19


Online PR and Influencer
Outreach

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 20


Varying ‘Promotion’ Online

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 21


Opt-in Email

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 22


Varying ‘Promotion’ Online

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 23


Virtual Exhibition

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 24


Varying ‘Promotion’ Online

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 25


Virtual Tours

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 26


PEOPLE, PROCESSES
AND PHYSICAL
EVIDENCE
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 27
People, Processes and
Physical evidence
▪ These
elements are closely related and often
grouped as ‘the service elements’.

▪ Theyare significant since the


handling of the intangible
aspects of digital marketing
can impact on a customer’s
experience and the probability
of them recommending the
service; given the faceless
nature of the online
medium.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 28
People

▪The element of the


marketing mix that
involves how an
organization's staff
interact with customers
and other stakeholders
during pre-sales, sales,
and post-sales
communications with
them.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 29


Key issues in improving the delivery
of service online include:

1. Substitution - Deploying
technology instead of people like
Varying the frequently asked questions
‘People’ section on a website; in-site
search engine; avatar offering
Online answers to questions (Babs
from Enterprise); automated
email response or a series of
‘Welcome’ emails or videos
educating customers about how
to use a product or service.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 30


2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 31
2. Complementarity - Deploying
technology in combination with
Varying people like call-back facility
‘People’ where the website is used to set
up a subsequent call from a
Online contact centre; online chat
facility – the user chats through
exchanging text messages on
the website.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 32


3. Displacement - Outsourcing or
‘off-shoring’ technology or
Varying labour, like a fast-food chain
centralising drive-through order
‘People’ taking in a remote call centre;
Online the online chat or call-back
systems referred to above can
be deployed at a lower cost
through outsourcing using
technology.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 33


Processes
• The methods and procedures companies use to
achieve all marketing functions – such as new
product development, promotion, sales and
customer service.

• Typical operational
objectives that should
drive the strategies
and measure the
effectiveness of
online processes are:

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 34


Varying ‘Processes’ Online
1. Minimising average response time and the
range of response time from slowest to
fastest – this should form the basis of an
advertised service quality level.
2. Minimising resolution (clear-up) time – for
example, the number of contacts and elapsed
time to resolution.
3. Maximising customer satisfaction ratings with
response.

4. Minimising average staff time and cost per


email response.

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 35


Physical Evidence
• This generally refers to the tangible expression
of a product and how it is purchased and used.

• In an online context,
‘physical evidence’ refers
to a customer’s experience
of the company through
the website and other
digital media.
• Customers look for online cues and clues to
form judgements and perceptions, as well
as for reassurance.
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 36
The
Online
Customer
Experience
Pyramid

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 37


Other Factors that can provide
Physical evidence
• Guarantees • Independent reviews
• Refund policies • Ethical policies
• Privacy policies • Tracking information
• Security
icons (e.g., • Fulladdress and contact
SSL lock) details (for retailers and
• Trade
and professional services providers)
body memberships • Reliable, efficient and
• Awards effective processes
• Customerlists, reviews • Thirdparty/ institutional
and endorsements endorsements
2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 38
THANK YOU END OF SESSION

2023 DR. MRS. SHEENA L. BOATENG - SLBOATENG@UG.EDU.GH 39

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