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Course: E-Marketing Course Code: 525
Prepared For RAFIUDDIN AHMED Assistant Professor Department of Marketing University of Dhaka
The methods of marketing have changed and improved, and we've become a lot more efficient at telling our stories and getting our marketing messages out there. E-Marketing is the product of the meeting between modern communication technologies and the age-old marketing principles that humans have always applied.
E-Marketing or electronic marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms E-Marketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous.
E-Marketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers.
By such a definition, E-Marketing encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and developing its brand identity. EMail marketing has been around since the inception of the internet. It has become the most cost effective and popular media of advertising. The popularity has helped both small and big businesses to get the product and services message to limitless potential clients. Keeping in contact with customers no longer require an extended lead time.
Importance of E-marketing:
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By writing an advertisement in own words and publishing ad to the internet can keep customers informed in a matter of seconds. The use of this method of communication is time saving, eliminates the high cost of snail mail postage and offers the customer with an immediate choice of whether to participate in information offering or not.
There are certain steps one must take to put together an effective e-mail campaign. By using e-mail as marketing media, one can target online marketing efforts to a specific audience of individuals for a particular product or service.
Both small and big business know the power of e-mail marketing because of the cost per contact is low and it has been proven to be very effective in the overall marketing success figures for the return on investment (ROI) of many businesses.
Recent studies have shared their findings on this subject. The Direct Marketing Association stated that the Return on Investment (ROI) was $57.25 for every dollar spent on e-mail marketing. This report was in 2005 and with todays economy I'm sure these figures have risen considerably. It's been concluded that e-mail marketing has outperformed all other direct marketing trials.
Hotel marketers have stated that e-mail advertising has generated the highest (ROI) and has given the best overall results than other types of
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advertising media. Nearly 60% of hotel marketers confirmed the e-mail venue for inexpensive marketing. Plain and simple e-mail marketing actually works. Overview of E-marketing senario in Bangladesh: Daffodill computers sells about $40 million a month online, representing nearly half of its sales. The direct-distribution model offer Daffodill several competitive advantages. First, it eliminates wholesalers and retailers, allowing complete control over inventory levels and distribution costs. Dafodill turns its inventory every 10 days, minimizing costs and obsolescence. And by avoiding an extensive intermediary network, Daffodill can directly monitor its customer’s needs. Daffodill is well known for outstanding customer service - despite handling 1,000 daily customer communications from corporations, government agencies, medical and educational institutions, small businesses, and individual consumers. Daffodill’s huge customer database supports its marketing communication and customer service efforts. When a customer calls or e-mails with a technical problem, Daffodill’s responds quickly with an appropriate solution. It also maintains customer Web storefronts for major corporate buyers. Daffodill fully utilizes the Internet’s properties for mass customization by allowing online customers to build their own computer systems for speedy delivery. Daffodill offers an extensive menu of product components and lets the market decide their relative importance – the marketing concept at its best. The company analyzes what customers order and uses this information to guide new-product development. Finally, Daffodill has a tightly coordinated supply chain. Suppliers work closely with Daffodill engineers to keep R&D costs low and keep products
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flowing to customers as ordered. Daffodill manages supply and demand in a way that leaves both suppliers and customers satisfied- a tricky job when selling in 64 district markets. Akhoni.com joins the small group of profitable dot-coms that is quite alive and well. The company began in 2008 as a place for people to look up former high school and college classmates. The site had about 50 thousand registered customers in 2010, and 50 thousand just two years later – plus 2,000 new registrations each month. One reason for this amazing growth was Akhoni’s huge Internet advertising campaign, launched in 2008 when ad prices were low. The privately held company generated tk.5.6 million in revenue in 2008 Best of all; the firm has been profitable since October 2009. This company is successful because it capitalized on a consumer need in the 30-plus age bracket, used the Internet’s properties to create a new product, and designed a successful e-business model. Akhoni.com tapped into the mass market’s need to reconnect with people from the past and with individual needs to learn. The Internet is direct-marketing medium and notes that there’s no business if customers are not willing to pay. Thus, the firm adopted a subscription model for revenues, selling content not advertising. Its sampling promotional approach allows people to register for free and read profiles, but they must pay to communicate with others. Eighty five percent of the firm’s revenue comes from 20 thosuand subscribers paying Tk.360 a year, and the subscriber base is adding 2,500 members a month. In addition to having full database access, subscribers receive an e-mail notification when someone from their school registers. Thus, the firm has outgrown its brand name. Akhoni.Com has proven that a new product can be successful on the Internet, even in a different economic climate. Potentials of E-Marketing in Bangladesh
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Marketing have been using electronic tools for many years ,but the internet and other information technologies created a flood of interesting and innovative ways to provide customer value, for this reason the potentials of E-Marketing is very high in every sector of the business. In the clothing industry of Bangladesh, the potentials of e-marketing could be the following: The use of customize marketing , say for example- The fashion houses may start to using that form of marketing, like Westecs, Cats eye, Estasy, Aarong and many other houses. In this form of marketing, the firms could ask to their customers to provide their (customers) desire style and format of clothing and the firms will provide according to the customers will. So in future e-marketing will allow such a type of service which will give the firms to know the desire of the hearts of the customers. In the future the firms in the clothing industry can provide more benefit than now and can use sophisticated software to become ready to reach to the customers as soon as they require. There will be more online selling and buying websites than before and they will provide services like- home delivery, after delivery service, customer negotiations and many more. The concept of shopping will be changed with the true emergence of the e-marketing in the business of Bangladesh. Customers will need not to go to the conventional shopping mall rather they will use online shopping malls for their purchase. The whole process of marketing that is- manufacturing, packaging, storing, distributing, delivering will be maintained online and the
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practice of CRM, understanding consumer behavior, will be online and much easier.
Easy, inexpensive and quick access to digital information transforms economies, governments, societies, and businesses. Digital information enhances economies through more efficient markets, more jobs, information access, communication globalization, lower barriers to foreign trade and investment and more. Cosmetics industry is not a very booming industry in Bangladesh. The firms that are manufacturing different types of cosmetics products are not of international standard and currently the practice of e-marketing is not in at a huge level. Still the prospect of e-marketing in the cosmetics sector is very much highlighting. In the cosmetics industry the potentials of e-marketing could be following: With the emergence of the e-marketing the cosmetics firms will provide standard product and the customers will be satisfied with the performance of the firms and the firm’s growth rate will be positive. The nature of the production and distribution will experience a lot of the advancement.
If the whole industry will move on to the e-marketing, both the customers and the marketers will be delighted. Like the clothing industry, the cosmetics industry may introduce the customized marketing for its existing and potential customers. The firm that follow the customized marketing may conduct online
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research and prepare a database for its customers and more they will provide option to their customers that the customers make choices about the ingredients of the desire cosmetics and ask the firm according to their (customers) desire.
In our country, there are deep assortments of toiletries products available that are used at any part of the day to any of the residents at any part of the country. Currently, these products are traditional in promotion and distribution strategy. But there are huge opportunities possible if properly managed. The products widely used in our country as toiletries goods can be categorized as – Hair Care Products Skin Care Products Oral Care Products Facial Care Products Body Care Products Floor and Dish Cleaning Products, etc. E-marketing with its varying revolutionary features and promises can bring dramatic changes in the ways these products used to serve ultimate consumers. Following discussion is based on the marketing mixes of these products and corresponding opportunities that may take place in the future –
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The product can be designed based on the requirement of the consumer. The consumers will be ordering different size, flavor, ingredient, color, etc. and the company will be preparing products based on the order. The consumers will get the opportunity to design their own products that they needed 2. Price: The payments will be made through credit cards. Consumers will be able to pay the bills with their mobile phones through calls or SMS. Consumers will be able to pay the total bill of their purchases monthly from their bank accounts. 3. Distribution: The products will be distributed directly to the consumers’ residence or anywhere at consumers’ convenient. 4. Promotion: The consumers will be communicated directly through internet via social networking sites, blogs, e-mails, or some other media. The consumers will be sending feedback directly to the organizations through writing in the blog and corrective measures as well as after sales service will be conducted through this. The products usage and pattern of exchange will be changed as mentioned below:
Hair Care Product
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Consumers will inform the organization about the hair condition through blog or e-mail. The organization will serve the consumer with specific product that suits their hair. Consumers will tell the firm about the pros and cons of the oils, shampoos, conditioners, etc. so that the company will rectify the problems. Even in the website, consumers will be able to get tips on hair treatment and product usage for better result. Skin Care Product The consumers will be able to ask for lotions, perfumes, face washes, etc. according to their choice through the website. The consumers will appoint body massage guides to help them have good aerobics. The consumers will get skin care tips from the website. The consumers will be able to contact directly with the skin specialist for any sort of skin disease or related support. Oral Care Product The consumers will be able to get dentistry advice from experts. The consumers will be buying toothpastes, toothbrushes, mouth-washes, etc. according to their individual choices. Facial Care Products The consumers will design the razors of their own choice. They will get suggestions on recent styles and fashions. The consumers will get guideline and updates to the changes in the trend
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Conclusion: It can be concluded that there is a potential of using e-business to integrate operations and processes, and that it contributes to interrganizational communication and cooperation. Focusing on how benefits could be obtained in the physical handling and distribution of goods, thus providing a framework integrated with sales and marketing, is a step towards the development of e-business as a tool in FMCG enterprises in Bangladesh. In spite of the continuing overall difficult economic situation and market conditions for business innovation and investment, electronic business continues to show a potential development in Bangladesh and the region. New technological developments (wireless access technologies, for example) on the one hand, and the increasing competitive pressure on companies in a global economy on the other, resulting in a constant search for opportunities to cut costs and find new markets.. Innovation in electronic business always implies new opportunities as well as challenges for enterprises.
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