E-MARKETING Internet has created dynamic new channels for marketers.

Internet is changing the design and implementation of marketing strategies. It provides marketers with efficient and powerful methods of designing, promoting and distributing the products, conducting research, and gathering information. Internet based promotion includes creating of websites, targeting emails, internet bulletin boards, sites for the customer to dial-in and download files.
Identifying Web Presence Goals Physical space Web space
E.g.Coca-Cola, Pepsi 1.Achieving Web Presence Goals i. Attracting visitors to the website ii. Making the site interesting enough so that visitors stay and explore. iii. Convincing the visitors to follow the sites links to obtain information.

iv. Creating an impression consistent with the organization desired image. v. Building a trusting relationship with visitors. vi. Encouraging visitors to return to the site. Eg. Toyota

2. The Uniqueness of the Web Email links History, objectives and mission, products and services, financial information. 3. Meeting the Needs of the Website Visitors Learning about products or services that the company offers. Buying the products or services that the company offers. Obtaining information about warranties or service and repair policies for products they have purchased. Obtaining financial information for making an investment or credit-granting decision. Identifying the people who manage the company or organization. Obtaining contact information of a person or a department in the organization.

4. E-Marketing Value chain

Customer Acquisition(prepurchase support)

Customer Support(during purchase)

Customer Fulfillment(purc hase dispatch)

Customer Support(post purchase)

Site Adhesion 1. Content 2. Format 3. Access 5. Maintaining a Website Communiation channels, web browser, bandwidth. HTML format, PDF format, Excel spreadsheet file. Goals: Convey an integrated image of the organization. Offer easily accessible facts about the organization. Allow visitors to experience the site in different ways and at different levels.

 Provide visitors with a meaningful, two-way communication link with the organization. Sustain visitor attention and encourage return visits. Offer easily accessible information about the products and services. 6. Metrics Defining Internet Units of Measurement Assessments: 1. Advertising -- customer to usage ratio 2. Visitation number of visits, duration. Software metrics theory: 1. Direct measurement 2. Indirect measurement Needs of Indirect Metrics: 1. Click-through captures 2. Time spent 3. Time spent searching --- site map, search feature 4. Time spent before click- throughs 5. Emails and telephone calls 6. Registered users.

2. The Browsing Behaviour Model Session ApplicationProgrammingInterface(API) Different types of request 1. Login 2. Browse 3. Search 4. Add to shopping cart 5. Pay Behavior of Customers 1. Occasional buyers and Heavy buyers Customer Model 1. Navigatinal patterns 2. Ecommerce functions used 3. Frequency of access 4. Times between access to the various services offered by the site Browsing Behavior model of an Online VideoStore Customer Functions: 1. Connect to the home page and browse the site 2. Search for titles according to various criteria 3. Select one of the videos and view additional information 4. Register as a new customer 5. Login with a username and password 6. Add items to the shopping cart 7. Pay for the items added to the shopping cart.

Browsing Behaviour Model Browse

Entry

Home

Login

Select

Add to Cart

Register

Pay

Search

Exit

Transition Frequencies Consider the visit to ecommerce site

1. Customer visits to the Select state = 40 times 2. Out of these Customer visit to the select state = 16 times 3. Browse state = 15 times 4. Add to cart = 8 times

Transition Frequencies are Select State =0.40 (16/40) Browse State = 0.375(15/40) Add to cart = 0.2(8/40)

Aggregate Metrics for E-business Sites Functions when customers get on the e-business website Category Functions Common Login Register Search Select Browse Retail Add item Remove item See Shopping Cart Create Registry Add to registry Check Status Pay Information Download Subscribe Listen Watch

Standard Metrics 1. Hits/Second 2. Page views/Day 3. Click-throughs 4. Unique Visitors 5. Revenue Throughput 6. Potential Loss Throughput

3. Online Marketing Online Marketing means using the power of online networks, computer communications and digital interactive media to reach your marketing objectives. 3 New Marketing Segments 1. Cyberbuyers 2. Cybercustomers 3. Cybersurfers

How should Buyers Pay Online? 1. Send a cheque or call 2. Set up an account with a merchant or a third party organization] 3. Send Credit card number online 4. Encryption and Decryption

5. Digital Currency. Various Business that can Flourish on the Internet 1. Banking 2. Databanks 3. Music 4. Retailing

4.E-Advertising Various Means of Advertsing Email Banners Sky scrappers Banner swapping Streaming video and audio Effectiveness tracking Mini sites and pop-ups Interstitials Sponsorships Coupons Pay per advertising view Loyalty programs

 Partnerships Innovative customer acquisition Providing information Personalised online communication o Permission marketing o Personalized recommendation o Personalized advertisements o Personalized web pages o Personalized e-commerce stores

Conducting Online Market Research Consumer behavior Identifying new markets Testing Consumer interest in new products. Sample size Why Market Research is done? Allows personal contacts with customers, Understand the customer, market and the competition. Identify customer trends Enable marketers to identify products and marketing opportunities.

 Develop those products or a service that customer really want to buy. Eg. Webmonkey.com Issues inMarket Research Customers may refuse to answer certain questions. Administration of Questionnaires can be lengthy and costly. Long download times and slow processing of Web-based questionnaires lead to frustrations on part of the customers. Online Market/Research Process and Results

Problem definition and research objectives

Research Methodolgy, Data collection plan

Data Collection, Data Analysis

Results, Recommendations , Implementation

1. Tracking Customer Movements on the Internet Cookies

2. Limitations of Online Research o Laundry detergents o Uneducated women in Indian villages. Building Customer Relationship Based on One-to-One Marketing Firm must be able to change how its products are configured or its services are delivered based on needs of individual customers. Customer Orientation. Increases loyalty. Recustomization of products. Market Segmentation Emails Segmentation is breaking the customers into smaller demographic segments and tailors its campaign to each of those segments. Tools Data modeling Warehousing and Mining Eg. Royal Bank of Canada

Consumer Market Segmentation in India SEGMENTATION GEOGRAPHIC DEMOGRAPHIC PSYCHOSOCIAL COGNITIVE, AFFECTIVE, BEHAVIORAL DESCRIPTORS Region and states, city,distric, village, population density, Climate Age, Occupation, Sex, Education, Family size, Religion, Caste, Income Social Classes, Lifestyles, Personality Attitudes, Loyalty, Innovativeness, Involvement, Usage Situation

Problems of Internet Marketing in India We need to channelize the numbers appropriately by addressing the issues Who is an Internet user in India? Use of Internet in India Used for E-mail Information Chat Education Downloads Music/Movies/Entertainment Jobs % of Users 90 50 43 41 38 27 23 % of Time 35 9 9 11 6 4 4

Educational and Age Profile of Users

Undergraduates 8% Graduates 37% Professionals 29%

Postgraduates 26%

Age Profile of Internet Users in India AGE 15-20 21-25 26-30 30+ USERS(%) 25 29 14 32

GENDER GENDER Male Female % OF USERS 76 24

Points of Access for Internet in India INTERNET Home Cyber Caf Work Others % ON A WORKING DAY 25 30 29 16 % ON A HOLIDAY 47 27 7 19

Data Mining and Marketing Research Capabilities Automated prediction of trends and behaviors Automated discovery of previously unknown patterns

Tools Neural Computing Intelligent Agents Association Analysis

Application of Data mining is Webmining Text mining Web access logs Data Mining Applications Industry Retailing and Sales distribution Banking Airlines Applications Predicting sales, determining inventory levels and schedules Forecasting levels of bad loans, fraudulent credit card use, Capturing the data on where the customers are flying, check the feasibility of adding routes Classifying customer demographics that canbe used to predict which customers will respond to mailing or buy a particular product.

Marketing

Intelligent Agents in Marketing and Customer-Related Applications 1. Need Identification 2. Product Brokering 3. Merchant Brokering 4. Negotiation 5. Purchase and Delivery

5.Internet Marketing Trends Technolgy-enabled Relationship Management

E-CRM VS CRM Dimensions Advertising E-CRM Provide information in response to specific customer inquiries Identifying and responding to specific customer behaviors and preferences Individually tailored to customer CRM Push and Sell a uniform message to all customers Market Segmentation

Targeting

Promotions and discounts offered

Same for all customers

Distribution channels Pricing of products or services New product features Measurements

Direct or through intermediaries; customer choice Negotiated with each customer Created in response to customer demands Customer retention; total value of the individual customer relationship

Through intermediaries chosen by the seller Set by the seller for all customers Determined by the seller based on research and development Market share; profit

6.E-BRANDING ELEMENTS OF BRANDING Differentiation Relevance Perceived Value Books: Amazon.com Music: CD now Computer software: Microsoft Computer hardware:Dell Clothing: The Gap Travel:AOL,Yahoo!,Travelocity

Traditional Marketing Brand Names of Internet Companies Amazon.com Netscape Yahoo.com Priceline.com Infoseek and Excite

SPIRAL BRANDING Consumers Billgates upward spiral Three-stage branding spiral Strategies for spiral branding Search Engine Optimization Affiliate Networks Advocacy Marketing(Viral Marketing) Permission E-Mail Personalization and Mass customization E-Care 7.MARKETING STRATEGIES Permission Marketing Strategies o Conversion rate Opt in mail Eg.Yesmail.com, Incentive

Eg. Alladvantages.com

Brand-leveraging Strategies Eg.Geocities and Broadcast.com, Amazon.com Affiliate-Marketing Strategies Proflower.com and The Hunger Site Page. Viral Marketing Strategies Website Naming Issues Eg.www.artuframe.com as www.art.com