1. MIS 205: E-Business Lecture 6: E-Marketing (Book Chapter 8)
Md Mahbubul Alam, PhD
Associate Professor

2. Intended Learning Outcomes (ILOs)
Assess the need for separate e-business and e-marketing strategies,
Create an outline e-marketing plan intended to implement the e-marketing strategy,
Integrate traditional marketing approaches with e-marketing,
Distinguish between marketing communication characteristics of traditional and new media,
Redefine marketing and communication mixed to incorporate new media.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

3. Prepared & Presented by Md. Mahbubul Alam, PhD
What is e-marketing?
What is marketing?
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability.
Key objectives
Identifying: find out customers, their needs and wants.
Anticipating: Anticipate the demand for efficient resource allocation.
Satisfying: Outcome of marketing campaign leads to customer retention.
What is e-marketing?
The application of marketing principles and techniques to achieve marketing goals via e- communication technology.
An external perspective of how the Internet can be used in conjunction with traditional media to acquire and deliver services to customers.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

4. Operational Process of e-marketing
3 operational processes
Acquisition: attract visitors or promote brand via search engine or ads.
Conversion: Engaging site visitors to achieve the outcomes through leads, sales or browsing other content.
Customer retention: Encouraging repeat usage of digital channels.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

5. Management Process of e-marketing
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

6. E-Marketing Plan in the Context of other Plans
Typically there is a hierarchy of plans in an organization with the corporate or business plan informing the marketing plan.
Alignment of e-marketing strategy with business strategy: objectives
Cost reduction and value chain efficiencies
Revenue generation
Channel partnership
Communications and branding
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

7. E-Marketing Plan: SOSTAC™
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

8. Prepared & Presented by Md. Mahbubul Alam, PhD
SOSTAC (Paul Smith, 1999)
The last slide mentioned 5S, which is translated from Japanese
Sorting: e.g., remove unnecessary items, evaluate necessary items with regard to cost or other factors.
Straighten/set in order: e.g., arrange all necessary items so they can be easily selected for use, make workflow smooth and easy
Sweeping (Systematic Cleaning)/shine: e.g., keep workplace safe and easy to work
Standardizing: e.g., standardize the best practices in the work area.
Sustaining: e.g., perform regular audits, training and discipline.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

9. Is a Separate e-marketing Plan Required?
Usage of detailed e-marketing plans in e-commerce organizations (Ref. Econsultancy, 2008)
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

10. Situation Analysis: Inputs
1. Inputs from situation analysis that inform the e-marketing plan.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

11. Situation Analysis: SWOT Analysis
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Prepared & Presented by Md. Mahbubul Alam, PhD

12. Prepared & Presented by Md. Mahbubul Alam, PhD
Demand Analysis
Assessment of the demand for e-commerce services amongst existing and potential customer segments.
Percentage of customers with Internet (or mobile) access.
Percentage of customers who access the web site (and different type of services)
Percentage of customers who will be favorable influenced.
Percentage of customers who buy online.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

13. Qualitative Customers Research
Online Persona
A summary of the characteristics, needs, motivations and environments of typical web-site users.
Graphic profiling:
An attempt to capture the core characteristics of target customers including demographics, needs, attitudes and how comfortable they are with the Internet.
e.g., Dell Ideastorm ( MyStarbucks Idea (
Major types: see, Table 8.2, page 425.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

14. Prepared & Presented by Md. Mahbubul Alam, PhD
Competitor Analysis
Review of e-business services offered by existing and new competitors and adoption by their customers.
A common approach is benchmark testing of various aspects between the company and its competitors.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

15. Situation Analysis: Benchmarking
Financial performance: current profitability of e-channel activities.
Marketplace performance: market share 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 basis? 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: practical features of site design such as aesthetics, ease of use, personalization, navigation and speed.
The 7Ps-product, price, package, promote, place, positioning, people.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

16. Situation Analysis: Benchmarking (Cont’d)
Benchmark comparison of corporate websites,
Ref. Bowen Craggs & Co (
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

17. Situation Analysis: Benchmarking (Cont’d)
Intermediary Analysis
Who are the intermediaries of the business?
Why this analysis is important? Do the competitors have any special sponsorship arrangements?
Internal Marketing Audit
Business effectiveness: Online revenue contribution
Marketing effectiveness: leads, sales, cost of acquiring new customers, retention, market share, brand engagement and loyalty, customers service.
Internet effectiveness: unique visitors, page impressions collected through web analytics or customer survey.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

18. Objective Setting (1): Relationship of objectives, strategies and KPIs
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Prepared & Presented by Md. Mahbubul Alam, PhD

19. Objective Setting (2): Relationship of objectives, strategies and KPIs
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Prepared & Presented by Md. Mahbubul Alam, PhD

20. Objective Setting (3): Balanced Scorecard Framework
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Prepared & Presented by Md. Mahbubul Alam, PhD

21. Prepared & Presented by Md. Mahbubul Alam, PhD
Objective Setting (4)
Combining the online promotion contribution and online revenue for a B2B company
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

22. SMART e-marketing objectives: Examples
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% to 20%
Established media company – increase online revenue, target of 20% online contribution to revenue by offering new online services and media sales
Established business-to-business engineering company – increase overall revenue by 5%, through targeting sales in new international markets
Reduce costs of routine customer service by 10% to enable focus on delivery of specialized customer service
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

23. Strategy Setting (1): Typical Strategic Initiatives
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Prepared & Presented by Md. Mahbubul Alam, PhD

24. Strategy Setting (2): Typical Strategic Initiatives
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Prepared & Presented by Md. Mahbubul Alam, PhD

25. Strategy Setting (3): Typical Strategic Initiatives
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Prepared & Presented by Md. Mahbubul Alam, PhD

26. Electronic Shopping or ES test (de Kare-Silver,2000)
The likelihood of a customer buying online is affected by
Product characteristics. Does the product need to be physically tried, or touched before it is bought?
Familiarity and confidence. Does the consumer recognizes and trusts the product and brand?
Consumer attributes. These shape the buyer’s behavior – 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?
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

27. Electronic Shopping or ES test (de Kare-Silver,2000) (Cont’d)
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Prepared & Presented by Md. Mahbubul Alam, PhD

28. Strategy Setting: Target Market Strategies
Target Marketing Strategy
Evaluation and selection of appropriate segments and the development of appropriate offers.
Segmentation
Identification of different groups within a target market in order to develop different product offerings and communications for the groups.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

29. Targeting and Segmentation Approaches for a Digital Campaign
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

30. Customer-centric Strategy for e-marketing
5 questions should be asked when setting the strategy
Who are our customers?
How are their needs changing?
Which do we target?
How can we add value? Combination of product quality, customer service quality, fulfilment time and price.
How do we become first choice? Positioning, differential advantage, online value proposition (OVP).
Differential adv: desirable attribute of a product offering that is not matched by competitor’s offerings.
OVP: Benefits of e-commerce services that ideally should not be available in competitor offerings.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

31. Prepared & Presented by Md. Mahbubul Alam, PhD
Example OVPs
‘Compare. Buy. Save’. Kelkoo (
‘Earth’s biggest selection’. Amazon (
‘Search the largest inventory of cars and trucks on the Internet. More than 1.5 million listings, updated daily’ (
The Citibank site design ( 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
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

32. New Media Marketing: Characteristics
Interactivity: Push vs. pull media, two-way interaction. See, slide 33
Intelligence: Low-cost method for marketing research, customer profiling, e.g.,
Individualization: Broadcast same message vs. personalized message, e.g., Dell Premier ( See, slide 34.
Integration: ‘Customer-to-organization’ and ‘organization-to-customer’ communication. See, slide
Industry restructuring: Disintermediation, reintermediation and Countermediation.
Independent of location: Reach of company communication to the global market.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

33. Communication models: Traditional media vs. New media
Push media
Company->customer
New media
Pull media
Customer seek information on a web site.
e.g., FMCG brand like Nestle (
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

34. Degree of Individualization: Traditional media vs. New media
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

35. Channels Integration Strategy
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

36. Channel Integration: e-marketing and mixed-mode buying
The process by which customer changes between online and offline channels during the buying process.
e.g.,
1. Mixed-mode buying: The process by which customer changes between online and offline channels during the buying process.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

37. Prepared & Presented by Md. Mahbubul Alam, PhD
Tactics: Product
Core product: Fundamental features of a product the meet users’ needs.
Extended product: Additional features and benefits beyond the core product.
Mass customization: Tailored versions of products to individual customers or groups of customers.
Bundling: multiple products are offered as individual items or groups at a reduce price.
Subscription
Pay-per-view
Ad-supported content
Tactics: 4Ps: product, price, place and promotion + 3Ps: people, processes, physical evidence.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

38. Prepared & Presented by Md. Mahbubul Alam, PhD
Tipping Point
The principle that describe the underpinning of the rapid spread of ideas, products and behaviors through a population.
Science of social epidemics
Word-of-mouth impact on the rate of adoption of new products.
Principles: Three
The law of the few: word-of-mouth and copycat behavior
The stickiness factor: attachment of the characteristics and attributes of a product or a brand.
The power of context: Products and behavior spread far and wide only when they fit the physical, social and mental context.
Read the Box 8.3 on pp
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

39. Prepared & Presented by Md. Mahbubul Alam, PhD
Tactics: Price
Commoditization: Selection of product is more dependent on price than on differentiating features, benefits and value-added services.
Dynamic pricing: Prices can be update in real time according to the type of customer of current market conditions.
Aggregated buying: A form of customer union where buyers collectively purchase a number of items at the same price and receive a volume discount.
Satisficing behavior: Customer do not behave entirely rationally. They compare alternatives but may make choice given imperfect information.
Price elasticity of demand: Measure of consumer behavior that indicated the change in demand for a product/service in response to changes in prices. It assess the extent to which a change in price will influence demand for a product.
Elastic: A small change in price increases or reduces the demand substantially.
Inelastic: A large change in price is accompanied by a small amount of change in demand.
12/1/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

40. Question Please ? Acknowledgement:
“E-Business and E-Commerce Management: Strategy, Implementation and Practice” by Dave Chaffey