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The Power of eMarketing President and CEO eMarketing Association Robert Fleming.

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Presentation on theme: "The Power of eMarketing President and CEO eMarketing Association Robert Fleming."— Presentation transcript:

1

2 The Power of eMarketing

3 President and CEO eMarketing Association Robert Fleming

4 The Internet is Different A rare example of a modern functional anarchy No official censors, no bosses, no board of directors, no stockholders No one “owns” the Internet, there is no “Internet, Incorporated” The “Internet” itself, doesn’t even officially exist as an entity The “Internet” never charges for anything. Each group accessing the internet is responsible for their own machine and access

5 Evolution Of The Internet Phase One: Portals Everywhere Phase Two: Simple Transactions Phase Three: The Digital Decade

6 The Internet Grows 600 million people access the internet worldwide (2002 est.) 2002 e-commerce 1 trillion dollars (est.) 68% increase in e-commerce 2000 vs Over 1 billion web pages, 40 million sites

7 Rapid Increase in Internet Use in the United States Across States – Over half the population August 2000September 2001 Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

8 Internet Use at Any Location, 1998 and 2001 As a Percent of U.S. Population Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

9 What are they doing online? More time More money More services Fewer sites

10 Online Activities 2001 – Internet users Age 3+

11 Oct Time spent online Oct Source: Jupiter

12 75% of online customers say the Net makes their lives better 79% of Net users utilise it for information for offline purchases AOL online average minutes per day:

13 Impact of Internet on media consumption Source: (USA) Scarborough National Internet Study 23% Watch TV less often 9% Listen to radio less often 15% Read newspaper less often 20% Read magazines less often

14 7.00am 7.00am 9.00am 9.00am11.00am 1.00pm 1.00pm 3.00pm 3.00pm 5.00pm 5.00pm 7.00pm 7.00pm 9.00pm 9.00pm11.00pmTV Breakfast News News, Ent, SportPrint Morning Paper Paper/Mags Leisure Mags OutdoorJourney To Work Out for Lunch Journey Home Radio Breakfast Show Drive Time Online Check News/ Mail Messenger News, Sport, Finance Messenger Web Cast Reaching consumers throughout their media day

15 e-commerce only represents a minor fraction of total GDP... e-commerce (3%) 2002 US GDP Projection Traditional retail (97%)

16 The Internet has to support Brick & Mortar Initiate Relationship in Information Stage Increase Product Selection Develop Aftermarket Contact Develop Customer Knowledge Reduce Inventory Needs Reach New Customer Sets Internet Contribution to Bricks and Mortar

17 … and Bricks & Mortar must support the Internet Brand Reinforcement and Trust Capture urgent and impulse buys FacilitateDelivery Capture Aftermarket Profits Reach a larger customer base Place to touch and test-drive product Bricks & Mortar Contribution to Internet

18 Customers must be able to move back and forth seamlessly... ShopResearchBuyOwn Dispose/ Repurchase Awareness Internet Bricks and Mortar Shared Customer Info Role of Bricks and Mortar Transform Bricks and Mortar Integrated Systems

19 Marketing Employment Is Growing “Employment of advertising, marketing, promotions, public relations, and sales managers is expected to increase faster than the average for all occupations through 2010 ”increase faster than the average Source: United States Department of Labor

20 eMA Employment Survey 70% of all management level marketing positions require Internet abilities and/or experience.

21 Internet Related Jobs Are NOT Just in I T Source: Center for Research in eCommerce, graduate School of Business, University of Texas at Austin

22 The Change in Corporate Culture 1996 – most web sites are managed by IT /MIS 2001 – marketing and IT/MIS manage web sites jointly (in some cases) Marketing needs to “own” web site IT/MIS are the mechanics – marketing the pilot Marketing becomes more collaborative and less autonomous

23 Are the Following IT or Marcom Functions? Corporate communications Advertising Corporate identity Product positioning Market Research

24 IT/MIS Continues to Dominate Web Management Lack of technical understanding by marketers Fast changing technology can create confusion Corporate politics plays a role

25 Efficient Organization

26 Effective Organization

27 Outlook Increasing shift of web site responsibility from MIS to marketing Increased technical knowledge required from marketers Internet marketing accounts for 15% of all advertising impressions and only 5% of marketing budgets The gap will close between impressions and budget Marketer must understand new tools

28 No Other Media Has All of the Advantages of eMarketing. Period. Cost effectiveness Global reach Interactive response Measurability Personalization Real-time feedback

29 But E-marketing Suffers From Lack of data – 5 years vs. decades for magazines, radio Lack of understanding of technology by marketers Fast moving and turbulent arena Changing technologies Lack of trained personal Senior management barriers Corporate culture

30 Online Marketing Tools Are Less Than 6 Years Old (That’s First Grade) marketing Site design for e-commerce Viral marketing Affiliate marketing Banner advertising Search engines Online publicity Research CRM

31 Site Design for E-marketing Merchant account checkout Visitor expectations Surveys Content Technical considerations Color Plug ins Product descriptions Company information

32 What Works on a Site ? Common Influences on Online Purchase Shipping fees92% Prices92% Product availability86% Special promotions or incentives76% Selection69% Order tracking66% Clearly identified delivery time65% Return policy63% Ease of use62% Site performance/speed51% Source: Vividence

33 Search Engines Pay for position taking a strong lead Search engine optimization (SEO) critical Majority of users rely on search engines for navigation Targeted audience Accounts for over 70% of new site visitors Turbulent arena

34 Marketing is the number one app with over 90% of internet users Issues such as browser differences, targeting, and privacy are critical Spam, creates a major negative for marketing, laws passed in 19 states Only 3 years of significant use

35 Viral Marketing Hot Mail was one of the first examples of viral marketing Another “e” term for “word-of-mouth” advertising Bulletin boards, , chat rooms are the major conduits for viral campaigns What is “buzz”

36 Affiliate Marketing Partnership and affiliate programs are booming Cooperation between online companies Commission programs and banner exchange programs lead this channel

37 Banner Advertising Volatile history with sharply declining click through rates New forms such as java, active x, Pop-ups, pop-under and other new delivery methods are gaining acceptance Branding is possible with banners

38 Research Log files ASP log conversion Metrics for e-marketing analysis Surveys

39 Challenges Integration of e-marketing and conventional marketing creates a “blurred channel” Hybrid advertising Marketing mix Consumer expectations Technological limitations New innovations Legal issues

40 Conventional Media Addition of web address creates hybrid advertising Web site can degrade or enhance conventional efforts Visitor experience becomes critical Diffused metrics

41 Technological Limitations Different browsers Online software (plug ins java –flash etc.) Screen resolutions Bandwidth speed Operating systems Server technology

42 Legal Issues Privacy policies Spam International commerce COPPA 19 states have anti Spam laws Dozens pending in congress Online disclosure

43 Emerging Technologies. Wireless poised to triple over the next few years Smart chips could track BM purchases Higher bandwidth could allow for increased streaming media on sites MPEG4 – good enough for video? ???

44 80% Still Dial-up Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

45 One Example

46 One More

47

48  Digital innovations become an integral part of life  Breaks down logistical barriers  Offers greater flexibility and power  Shrinks time and business  Simplifies complex business processes  Enables effective communication and collaboration  Opens up new markets

49 The 21 st Century Explosive increase in innovation Extraordinary dynamism of technology Exceptional increases in productivity Myriad new forms of business activity Expanding opportunities Level playing field


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