OHT 24.

E-marketing and new media

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 OHT 24.2

The Internet
(Porter)

• Does not change the fundamentals of doing ‘good

business’ or ‘good marketing’.
• Important to keep core strategic objectives in mind and
use the Internet to achieve these objectives.
• Must not view Internet applications as a diversification,
separate from the core objectives - if you do you will fail.

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 OHT 24.3

New marketing communications media

• E-mail marketing.
• Viral marketing.
• Wireless marketing (m-marketing or mobile marketing).
• Interactive television (iTV).

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 OHT 24.4

Nature of Internet marketing

• PR - reinforcing the company image and dissemination

of information.
• Sales promotion - offering competitions and ‘freebies’.
• Brochureware.
• Direct selling.
• Customer relationship marketing.
• Market research.
• Managing supplier relationships.
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 OHT 24.5

The 5Ss - Benefits of e-marketing

Smith & Chaffey 2001
• Selling goods and services online.
• Additional customer service.
• Saving overhead costs.
• Means of speaking and entering into one to one
dialogue with customers.
• Exciting and sizzling means of visual impact.

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 OHT 24.6

Benefits of e-marketing

• Valuable means of small businesses communicating

with global audiences.
• Useful way for non-profit organisations to explain their
work and tout for donations.

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 OHT 24.7

Good website design

According to Gaudin 2002:

• Must be continually updated.
• Be easy to navigate.
• Have in depth information.
• Offer quick loading and response times.

Other researchers have found honesty, respect, trust and

reliability to be of importance.
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 OHT 24.8 Consumer penetration & spending

Table 24.1
Source: Euromonitor (2002), extracted from Table 12.7, p. 286.

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 OHT 24.9
Spending online
Consumers:
• BMRB report that in 2002 565 of UK Internet users are
shopping online.
• UK consumers appear to be spending more online than
other European consumers.
B2B:
• Estimated $4.3 trillion spend by 2005 (IDC).
• Convenience, cost saving, customer and competitor
pressure, opportunities to generate new revenue are all
reasons for growth.
• Online procurement - a large part of B2B online
commerce.
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 OHT 24.10

Advantages of using the web as a distribution channel

• Every hit could gain a potential customer.

• Print and mailing costs are lower.
• Reduction in order processing and handling costs.
• Enhanced after sales service.
• Distribution of digital products via the web.
• Get closer to the customer through disintermediation.

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 OHT 24.11 The web as an advertising
medium (1 of 2)

Table 24.7
Source: Adapted from Integrated Marketing Communications, Financial Times Prentice-Hall, (Pickton, D. and Broderick, A.
2001), Copyright © 2001 David Pickton and Amanda Broderick, reprinted by permission of Pearson Education Limited.
Extracted from Exhibit 11.3, p. 210.

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 OHT 24.12 The web as an advertising
medium (2 of 2)

Table 24.7 cont.

Source: Adapted from Integrated Marketing Communications, Financial Times Prentice-Hall, (Pickton, D. and Broderick, A.
2001), Copyright © 2001 David Pickton and Amanda Broderick, reprinted by permission of Pearson Education Limited.
Extracted from Exhibit 11.3, p. 210.

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 OHT 24.13

Engendering customer loyalty

• Levels of interaction between customer and an

organisation and its brand(s) can help reinforce loyalty.
• Brand values and image can be enhanced.
• Providing a trusted quality product online.

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 OHT 24.14

The future for Internet marketing

• Bandwidth increases enabling more powerful

applications and real time communications.
• More integrated technologies (TV, PCs, mobile based
technologies) making the internet more interesting and
more accessible.
• Infomediaries who will replace traditional intermediaries.
• Opportunities to attract transient trade.

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 OHT 24.15

Marketing and new media

Digital technology:
- Enabling marketing to be driven by databases that can
track interactions between a business and its
customers.
- Creating new media opportunities to personalise and
target messages better.
- Customers have to opt in to new media and give
permission.

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 OHT 24.16

E- mail

• A powerful means of communication and promotional

activity.
• Can help create initial contact and develop online
relationship once transactions have taken place.
• Encourage readers to look at a website.
• Gain permission to send more information.
• Surveys suggest that e-mail campaigns are still in
infancy.

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 OHT 24.17

E-mail marketing evolution

Figure 24.2
Source: Rizzi (2001). Copyright © 2002 e-Dialog Inc.

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 OHT 24.18

Viral marketing

• Word of mouth e-mail.

• Achieved by using the forwarding facility (e-mail a page
to a friend).
• Effective form of communication in terms of believability
and trust.
• Can build up e-mailing list.
• Some customers may view this as a form of unsolicited
mail.

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 OHT 24.19

Wireless marketing
• Sometimes called m-marketing or mobile marketing.
• Using text messaging as a means of targeting
customers.
• Marketers must consider customer lifestyles and be
careful about setting the right tone of the
communication.
• Any message must be short usually alerting customer to
a special offer or promotion.
• Can fail to inspire or encourage interactivity.
• Audience tend to be younger people.
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 OHT 24.20

iTV marketing

• Interactive television marketing is still in its infancy.

• Allows the user to tailor information, content and actions
to their needs.
• Provides two way communication between consumer
and service provider.
• Take up of digital television is a critical factor here.
• Marketers can target niche audiences and can
personalise dialogue.

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003