E-marketing.

Slides:



Advertisements
Similar presentations
E-Marketing Chapter 8, p Trine & Maiken
Advertisements

E-Commerce in Business
E-Business Models. Learning Objectives  Identify the key components of e-commerce business models.  Describe the major B2C business models.  Describe.
OHT 1.1 CHAPTER 1 The Journey Begins… From e-Business to e-Commerce To e-Marketing.
Learning Goals Be able to identify the major forces shaping the new digital age. Understand how companies have responded to the Internet with e-business.
Internet properties and marketing implications
10.1 © 2007 by Prentice Hall 10 Chapter E-Commerce: Digital Markets, Digital Goods.
1 Chapter 9 Electronic Commerce and Electronic Business.
Product-Selling Strategies that Add Value
1Chapter 19 Version 7e ©2004 South-Western College Publishing Prepared by Deborah Baker Texas Christian University Chapter 19 Internet Marketing.
Marketing Mix, Planning & Objectives
Chapter 1 Lecturer – Shahed Rahman Integrated Marketing Communications.
The e-Marketing Mix Lecture 3.
E-commerce E-commerce is defined "as the process of buying, selling, or exchanging products, services, or information via computer networks, including.
Chapter 8 Campaign planning for digital media
Chapter 8 E-marketing.
1 Chapter 8 E-marketing. 2 The definition of marketing is: ‘Marketing is the management process responsible for identifying, anticipating and satisfying.
Chapter 8 E-marketing.
Fall 2006 Davison/LinCSE 197/BIS 197: Search Engine Strategies 5-1 Search Engine Strategies: Road Map INTRO: What is SEM PLANNING: Things to Know BEFORE.
“E-marketing” Academic Year Marketing and E-marketing Marketing - Management process responsible for identifying, anticipating and satisfying customer.
Learning objectives What approaches can be used to create digital marketing strategies? How does digital marketing strategy relate to other strategy development?
OHT 5.1 © Marketing Insights Limited 2004 E-business Strategy.
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003OH 4.1 Chapter 4 Internet marketing strategy.
Chapter 17: Internet Marketing Copyright © 2010 Pearson Education Canada E-Business 1 E-Business is more embracing than E-Commerce. E-Business embraces:
Revised Date: 2/5/2012 Chapter 5 E-Marketing.
Lecture 2 Title: E-Business Advantages By: Mr Hashem Alaidaros MIS 326.
Marketing Management Online marketing
Chapter 1 Introduction to Internet Marketing
Module 3: Business Information Systems Chapter 8: Electronic and Mobile Commerce.
Consumer Behavior: Meeting Changes and Challenges
Chaffey: Internet Marketing, 2nd edition © Pearson Education Limited 2003 OHT 2.1 Chapter 2 The Internet micro-environment.
Building Online Traffic Instructor: Hanniya Abid Assistant Professor COMSATS Institute of Information Technology Lecture 22 E-Marketing.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 17-1 ©2004 Pearson Education Canada Inc. E-Commerce The transaction of business and related activities.
E-Business Model. E-Business Model definition An e-and m- business model is an approach to conducting electronic business through which a company can.
Fan Zhangz. PROMOTION IS ONE OF THE MARKET MIX ELEMENTS. A PROMOTIONAL MIX SPECIFIES HOW MUCH ATTENTION TO PAY TO EACH OF THE FIVE SUBCATEGORIES, AND.
Chapter 5 E-business Strategy E-marketing.
Chapter 8 E-marketing.
Chapter 8 E-marketing.
Lecture 3 Strategic E-Marketing Instructor: Hanniya Abid
Overview: Electronic Commerce Electronic Commerce, Seventh Annual Edition.
Quality Statement Example We are commited to assuring customer satisfaction by providing quality products. We will perform all activities in a manner,
E-Tourism Nicos Rodosthenous PhD 04/04/ /4/20131Dr Nicos Rodosthenous.
1 Chapter - 2 Sales Strategies. 3 Sales and Marketing Planning To be effective, sales activities need to take place within the context of an overall.
E-commerce Lecture 7 E-marketing E-commerce COM380.
Chapter 15 – MANAGING THE MARKETING FUNCTION Activity 15.1 (class answers) Q 1. Identify 2 advertisements you don’t like Q 2. Describe the elements of.
Copyright © 2007 Pearson Education Canada 17-1 E-Commerce “Buying and selling of goods online and the transfer of funds via digital communications.” Buying.
Slide 5.1 CHAPTER 5 E-BUSINESS STRATEGY. Slide 5.2 Learning outcomes  Follow an appropriate strategy process model for e- business;  Apply tools to.
Slide 8.1 CHAPTER 8 E-MARKETING. Slide 8.2 Learning outcomes  Assess the need for separate e-business and e- marketing strategies  Create an outline.
Slide 8.1 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Chapter 8 Digital.
E-business MANAGEMENT AND STRATEGY Chapter - 3 Dr. BALAMURUGAN MUTHURAMAN.
E-commerce: Digital Markets, Digital Goods
Strategy and applications Digital business strategy
E-Business Strategy. Learning Outcomes Follow an appropriate strategy process model for e- business Apply tools to generate and select e-business strategies.
Slide 5.1 David Chaffey, E-Business & E-Commerce Management, 5 th Edition, © Marketing Insights Limited 2012 Chapter 5 E-Business Strategy.
P3 Business Analysis. 2 Section E: Information Technology E1. Principles of E-business E2. E-business application – upstream supply chain management E3.
MGT301 Principles of Marketing Lecture-42. Summary of Lecture-41.
Integrated Marketing Communications Introduction (2) An Introduction (2) Sunarto Prayitno 1.
E-Marketing Strategic E-Marketing and Performance Metrics 2-1.
Slide 8.1 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Chapter 8 Digital.
8. E-MARKETING. ECONSULTANCY INTERVIEW Read the Econsultancy Interview on pp of Chapter 8 and visit the Guess.com to answer the following questions:
Presented by Ika Novita Dewi, MCS.  Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements.
Business Management March 2, 2017, Marketing.
MGT 3225: E-Business Lecture 5: E-Marketing
Chapter 8 E-Marketing.
MIS 205: E-Business Lecture 6: E-Marketing (Book Chapter 8)
Customer relationship management
Chapter 8 Digital marketing
Internet Marketing Planning
E-Business E-MARKETING.
Presentation transcript:

E-marketing

Learning objectives Assess the need for separate e-business and e-marketing strategies Create an outline e-marketing plan intended to implement the e-marketing strategy Distinguish between marketing communication characteristics of traditional and new media

Issues for managers How do we integrate traditional marketing approaches with e-marketing? How can we use electronic communications to differentiate our products and services? How do we redefine our marketing and communications mixes to incorporate new media?

E-marketing The definition of marketing by the Chartered Institute of Marketing (http://www.cim.co.uk/) is: ‘Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability’ Which e-marketing tools can assist? Web, e-mail, databases, wireless and digital television

How do e-tools support marketing? Identifying Anticipating Satisfying Profitably

Distinguishing e-marketing and e-business (a) Electronic business is broadly equivalent to electronic marketing. This is perhaps more realistic, and indeed some marketers would consider e-business and e-marketing to be synonymous. (b) Electronic marketing is a subset of electronic business. It can be argued that this is most realistic since e-marketing is essentially customer-oriented and it has less emphasis on supply chain and procurement activities in comparison with e-business.

The e-marketing plan in the context of other plans Figure 8.1 The e-marketing plan in the context of other plans

SOSTAC – a generic framework for e-marketing planning Figure 8.2  SOSTAC™ – a generic framework for e-marketing planning

Inputs to the e-marketing plan from situation analysis Figure 8.3  Inputs to the e-marketing plan from situation analysis

Demand analysis What percentage of customer businesses have access to the Internet? What percentage of members of the buying decision in these businesses have access to the Internet? What percentage of customers are prepared to purchase your particular product online? What percentage of customers with access to the Internet are not prepared to purchase online, but are influenced by web-based information to buy products offline? What are the barriers to adoption amongst customers and how can we encourage adoption?

Customer demand analysis for the car market Figure 8.4  Customer demand analysis for the car market

Activity - competitor analysis You are e-commerce manager within the AA Which criteria would you use to compare a competitor’s online offering? Group them under five or six headings Conduct an assessment of your services against competitors such as RAC and Green Flag Products – car breakdown cover, insurance

Benchmarking solutions Financial performance Marketplace performance – marketshare and sales trends and significantly the proportion of sales achieved through the Internet. Business and revenue models – do these differ from other marketplace players’? Marketing communications techniques – is the customer value proposition of the site clear? Does the site support all stages of the buying decision from customers who are unfamiliar with the company through to existing customers; are special promotions used on a monthly or periodic basic? Beyond the competitor’s site, how do they make use of intermediary sites to promote and deliver their services? Services offered – what is offered beyond brochureware? Is online purchase possible, what is the level of online customer support and how much technical information is available? Implementation of services – these are the practical features of site design such as aesthetics, ease of use, personalization, navigation and speed.

Another approach Business effectiveness. Contribution of site to revenue (see objective setting), profitability and any indications of the corporate mission for the site. The costs of producing and updating the site will also be reviewed, i.e. cost-benefit analysis. Marketing effectiveness. These measures may include: leads; sales; retention; market share; brand enhancement and loyalty; customer service. These measures will be assessed for each of the different product lines delivered through the web site. The way in which the elements of the marketing mix are utilized will also be reviewed. Internet effectiveness. These are specific measures that are used to assess the way in which the web site is used, and the characteristics of the audience. Such measures include specialist terms such as hits and page impressions that are collected from the log file, and also more typical techniques such as focus groups and questionnaires to existing customers. From a marketing point of view, how clear the value proposition of the site for the customer is should be noted.

Examples of SMART e-marketing objectives Start-ups – acquiring a specific number of new customers or to sell advertising space to generate a specified revenue that will hopefully exceed investment in site creation and promotion! Established mobile phone operator – increase customer retention by reducing churn from 25 per cent to 20 per cent. Established media company – increase online revenue, target of 20 per cent online contribution to revenue by offering new online services and media sales. Established business-to-business engineering company – increase overall revenue by 5 per cent, through targeting sales in new international markets. Reduce costs of routine customer service by 10 per cent to enable focus on delivery of specialized customer service.

Assessment of the future online promotion contribution, online revenue contribution and service contribution for the B2B company, for Product A, Europe Figure 8.5  Assessment of the future online promotion contribution and online revenue for The B2B Company, for Product A, Europe

Example online revenue contributions Organisation Sector Online contribution Overall turnover Cisco B2B Networking hardware 90% $19bn easyJet B2C Air travel £264m Dell B2B, B2C Computers 48% $25bn Lands End Clothing B2C Clothing 11% $1.3bn Book Club Associates B2C Books 10% £100m Electrocomponents B2B Electronics 7% £761m Group Domino’s Pizza B2C Food 3.4% £76m Tesco B2C Grocery 1.4% £18.4bn Thomas Cook B2C Travel <1% £1.8bn

easyJet web site (www.easyjet.com)

DBS Oegland web site http://www.dbs.no

De Kare-Silver’s ES test 1. Product characteristics. Does the product need to be physically tried, or touched before it is bought? 2. Familiarity and confidence. Considers the degree the consumer recognizes and trusts the product and brand. 3. Consumer attributes. These shape the buyer’s behaviour – are they amenable to online purchases in terms of access to the technology skills available and do they no longer wish to shop for a product in a traditional retail environment?

ES test results 4 8 15 27 10 1 6 31 8 7 23 38 Product 1. Product characteristics 2. Familiarity and confidence 3. Consumer attributes Total 1. Groceries  4 8 15 27 2. Mortgages 10 1 3. Travel 6 31 4. Books  8 7 23 38

Stages in target marketing strategy development Figure 8.7  Stages in target marketing strategy development

Online value proposition A clear differentiation of the proposition from competitors’ based on product features or service quality. Target market segment(s) that the proposition will appeal to. How the proposition will be communicated to site visitors and in all marketing communications. Developing a tag line can help this. How the proposition is delivered across different parts of the buying process How the proposition will be delivered and supported by resources – is the proposition genuine? Will resources be internal or external?

Example OVPs ‘Compare. Buy. Save’. Kelkoo (www.kelkoo.com) ‘Earth’s biggest selection’. Amazon (www.amazon.com) ‘Search the largest inventory of cars and trucks on the Internet. More than 1.5 million listings, updated daily’ (www.autotrader.com) The Citibank site design (www.citibank.com) uses a range of techniques to illustrate its core proposition and OVP. The main messages are: Welcome to Citibank: The one-stop solution for all your financial needs. Look for a product or service; Learn about a financial product; Find a location.

Summary of communication models for (a) traditional media (b) new media Figure 8.8  Summary of communication models for (a) traditional media, (b) new media

Summary of degree of individualization Figure 8.9  Summary of degree of individualization for (a) traditional media (same message), (b) new media (unique messages and more information exchange between customers)

Channels requiring integration as part of integrated e-marketing strategy Figure 8.10  Channels requiring integration as part of integrated e-marketing strategy

Channel integration required for e-marketing and mixed-mode buying Figure 8.11  Channel integration required for e-marketing and mixed-mode buying

The elements of the marketing mix Figure 8.12  The elements of the marketing mix

Additional slides on the marketing mix Welcome to the seminar

Issues with varying the mix online Do we vary the mix online or replicate offline? Is the offer clear – brand proposition, online offer Is online differentiation defined? Is online differentiation communicated? Key online mix variables Product Price Place Promotion Service: People, Process, Physical evidence

Product Extend range (Tesco) Narrow range (WH Smith iDTV) Online mix options Product Extend range (Tesco) Narrow range (WH Smith iDTV) Online-only products (banks) Develop new brand (Egg) Migrate existing brand (HSBC) Partner with online brand (Waterstones and Amazon)

Price Differential pricing: New pricing options (software, music): Online mix options Price Differential pricing: Reduce online prices due to price transparency and competition (easyJet) Maintain price to avoid cannibalisation of offline sales (Dixon) New pricing options (software, music): Rental Pay per use Reverse auctions (B2B) Dynamic pricing (concert tickets)

Place = avoiding channel conflicts Online mix options Place = avoiding channel conflicts Disintermediation – sell direct Reintermediation – partner with new intermediaries Countermediation: Form new intermediaries Partner with existing intermediaries Distance from intermediaries (Abbey National)

Online mix options Promotion Selective use of new online tools for different stages of the buying process and customer lifecycle Online only campaigns Integrated campaigns – incorporating online tools into communications mix

Service People Process Physical evidence Online mix options Automate – use web self-service, offer customer choice Process Change process for service – contact strategies Physical evidence Site design – differentiate or support brand Fulfilment quality

Varying the mix - supermarkets Tactics applied online Product Price Place Promotion +Service www.tesco.com, www.sainsburystoyou.co.uk, www.waitrose.com

Varying the mix - airlines Tactics applied online Product Price Place Promotion +Service www.ryanair.com, www.easyjet.com, www.ba.com

Branding Leslie de Chernatony and Malcolm McDonald in their classic 1992 book, Creating Powerful Brands, define a brand as ‘an identifiable product or service augmented in such a way that the buyer or user perceives relevant unique added values which match their needs most closely. Furthermore, its success results from being able to sustain these added values in the face of competition’.

Aaker and Joachimsthaler – brand equity Brand awareness. Perceived quality. Brand associations. Brand loyalty. How can these be enhanced online for the B2C Company?

Options for the online vs offline communications mix Figure 8.13  Options for the online vs offline communications mix (a) online > offline, (b) similar online and offline, (c) offline > online

Online retail sales growth 2000-2002 IMRG Figure 8.14  Online retail sales index report 2000–2003 IMRG

Truffles intranet for knowledge sharing Figure 8.15  Truffles intranet for knowledge sharing