E- MARKETING DR EMMANUEL CHAO

1. 8 | 1
E- MARKETING
DR EMMANUEL CHAO

2. 8 | 2
Objectives
• Define electronic marketing and commerce and
recognize increasing importance in strategic
planning
• Understand characteristics of electronic
marketing and differentiate them from traditional
marketing
• Examine how characteristics of electronic
marketing affect strategy
• Understand how electronic marketing and
information technology facilitate customer
relationship management
• Identify legal/ethical considerations in electronic
marketing

3. 8 | 3
Electronic Marketing
• E-commerce – conducting business through
telecommunications networks
• E-marketing – creating, distributing, promoting,
and pricing products for targeted customers
over the Internet

4. 8 | 4
E-MARKETING
E-Marketing:
• Refers to using technology such as the internet, website
and email, sms, including its wide variety of options and
tools to conduct your marketing activities and achieve
your marketing objectives.

5. 8 | 5
E-MARKETING TOOLS
E-Marketing tools and strategies include:
• Business websites;
• Search Engine;
• Email;
• Online newsletters/e-zines;
• Online catalogues;
• Online press releases;
• Online surveys;
• Online customer service;
• Banner advertising;
• Affiliate marketing.
• Mobile telephone marketing;
• Online Community (Friendster, YouTube) - new
• Web Log (Blog) - new

6. 8 | 6
THE E-MARKETING
CONCEPT
Examples of e-Marketing include:
• online surveys to conduct market research
• web site to display and sell your products
• internet advertising to promote your
business
• software to collect and analyse your
customer information

7. 8 | 7
THE E-MARKETING
CONCEPT
The Key to e-Marketing:
• The key to successful e-Marketing in today's business
environment is to place your clients in control. Allow
them to choose how often and what type of messages
they receive, thus creating a more meaningful
relationship with your business.
• This is commonly referred to as Permission Marketing.
• Your e-Marketing messages and tools should aim to
deliver information that the consumer wants - that they
perceive to be valuable.

8. 8 | 8
CAPABILITIES AND BENEFITS OF E-MARKETING
Global Reach
Personalization
Interactive Marketing
Right-time Marketing
Integrated Marketing

9. 8 | 9
Characteristics Of
Electronic Marketing
• Addressability
• Interactivity
• Memory
• Control
• Accessibility
• Digitalization

10. 8 | 10
Addressability
A marketer’s ability to identify customers
before they make a purchase.

11. 8 | 11
Cookie
An identifying string of text stored on a
website visitor’s computer.

12. 8 | 12
Interactivity
The ability to allow customers to express
their needs and wants directly to the firm
in response to the firm’s marketing
communications.

13. 8 | 13
Community
A sense of group membership or feeling of
belonging by individual members.

14. 8 | 14
Memory
The ability to access databases or data
warehouses containing individual customer
profiles and purchase histories and use
these data in real time to customize a
marketing offer.

15. 8 | 15
Database
A collection of information arranged for easy
access and retrieval.

16. 8 | 16
Control
Customers’ ability to regulate the
information they view and the rate and
sequence of their exposure to that
information.

17. 8 | 17
Portal
A multiservice website that serves as a
gateway to other websites.

18. 8 | 18
Accessibility
The ability to obtain information available
on the Internet.

19. 8 | 19
Digitalization
The ability to represent a product, or at
least some of its benefits, as digital bits
of information

20. 8 | 20
B2B E-MARKETING
• Business-to-business (B2B) e-marketing Use of the Internet for business
transactions between organizations.
• Accounts for 90 percent of all e-business activity.
• Accounts for 10 percent of all B2B transactions.
• Increases efficiency of business transactions, which typically involve more
steps than consumer transactions.
• Electronic data interchange—computer-to-computer exchanges of price
quotations, purchase orders, invoices, and other sales information between
buyers and sellers.
• Web services—Internet-based systems that allow parties to communicate
electronically with one another regardless of the computer operating system
they use.

21. 8 | 21
• Extranets—secure networks used for e-marketing and accessible through
the firm’s Web site by external customers, suppliers, or other authorized
users.
• Private exchanges—secure Web site at which a company and its suppliers
share all types of data related to e-marketing, from product design through
delivery of orders.
• Electronic exchanges—online marketplaces that bring buyers and sellers
together in one electronic marketplace and cater to a specific industry’s
needs.
• E-procurement—Web-based systems that enable all types of organizations
to improve the efficiency of their bidding and purchasing processes.

22. 8 | 22
ONLINE SHOPPING AND B2C E-MARKETING
• Business-to-consumer (B2C) e-marketing Selling directly to consumers
over the Internet. Also called e-tailing.
• Service providers such as banks are an important segment of e-tailing.
• Two types of B2C Web sites
• Shopping sites
• Information sites

23. 8 | 23
ELECTRONIC STOREFRONTS
• Electronic storefront Company Web site that sells products to customers.
• Growth anticipated with the increase in broadband connections.
• Broadband shoppers typically spend 34 percent more online than
narrowband shoppers.
BENEFITS OF B2C E-MARKETING
• Lower prices.
• Convenience.
• Personalization.

24. 8 | 24
ONLINE BUYERS AND SELLERS
• Demographics of customers are changing as Internet penetration grows.

25. 8 | 25
E-BUSINESS AND E-MARKETING CHALLENGES
ONLINE PAYMENT SYSTEMS
• Companies have developed secure payment systems to protect customer
information.
• Encryption, Secure Sockets Layer, and electronic wallets.
PRIVACY ISSUES
• Protection of personal information is customers’ top security concern.
• Cookies and spyware allow companies to personalize Internet experience but
also invade computer users’ privacy.
• To reassure customers, many online merchants have signed on with online
privacy organizations such as TRUSTe.
• Companies install firewalls to protect private corporate data.

26. 8 | 26
INTERNET FRAUD
• Internet Crime Complaint Center logged more than 231,000 complaints in a
recent year.
• Phishing High-tech scam that uses authentic-looking e-mail or pop-up
messages to get unsuspecting victims to reveal personal information.
• Payment fraud is also growing.
WEB SITE DESIGN AND SERVICE
• As many as 70 percent of Internet shopping carts are abandoned before any
purchase is made.
• Companies that have brick-and-mortar experience often have more
experience satisfying customers than Internet-only retailers.
CHANNEL CONFLICTS
• Direct sales to customers can compete with business partners such as
retailers and distributors, disputes called channel conflicts.

27. 8 | 27
USING THE WEB’S COMMUNICATION FUNCTION
• Web has four main functions: e-business, entertainment, information, and
communication.
• Communication is Web’s most popular function.
• Firms use e-mail to communicate with customers, suppliers, and other
partners.
• ONLINE COMMUNITIES
• Internet forums, newsgroups, electronic bulletin boards, and Web
communities that appeal to people who share common interests.

28. 8 | 28
BLOGS
• Blog Short for Web log, an online journal written by a blogger.
• Some incorporate wikis and podcasts.
• Corporate blogs can help build brand trust.
• Employee blogs can humanize a company, but negative comments can harm
it.
WEB-BASED PROMOTIONS
• Banner and pop-up ads on Web sites, and online coupons.
• Search marketing Paying search engines, such as Google, a fee to make
sure that the company’s listing appears toward the top of the search results.

29. 8 | 29
• Planning and preparation—company’s goal for its Web site determines
scope, content, and design.
• Will the site be maintained in-house or by a contractor?
• What will the site be named?
• Content and connections—important factor for whether visitors return to
a site.
• Relevant to viewers, easy to access and understand, updated
regularly, and compelling and entertaining.
• Most small businesses are better off outsourcing to meet their hosting
and maintenance needs.
• Costs and maintenance—development, placing the site on a Web server,
and maintaining, updating, and promoting the site.

30. 8 | 30
MEASURING WEB SITE EFFECTIVENESS
Click-through rate Percentage of people
presented with a banner ad who click on it.
Conversion rate Percentage of visitors to a
Web site who make a purchase.

31. 8 | 31
E-Marketing Strategies
And Considerations
• Product
– Computers and related accessories
biggest seller online
– Customized orders
– Services growing
• Distribution
– Order processing
– Synchronization
• Promotion
– Augments traditional forms
– Consumer in control
• Pricing- More consumer information

32. 8 | 32
Customer
Relationship Management
• Database Marketing
• Customer Lifetime Value
• Technology Driven
– Customer support
– Call-center software
• Customer Satisfaction

33. 8 | 33
Elements Of
Database Marketing
1. Identify/build database
2. Differentiate messages to consumers
3. Track relationships

34. 8 | 34
Types Of
Databases

35. 8 | 35
Questions For CLV
• Which customers receive preferential
treatment?
• What channels used to interact with
customer?
• Timing of offering to customer?
• Which are good prospects?
• Allocation of resources?
• Method of monitoring customers?

36. 8 | 36
Technology Drives CRM
• Customer Contact Points
– Telephone
– Fax
– Online
– Personal
• Data Analysis
• Customer support/call-center software
• Sales automation software

37. 8 | 37
Customer Satisfaction and CRM
CRM is about relationships, not technology
– technology can help build long-term
relationships

38. 8 | 38
Legal/Ethical Issues
In E-Marketing
• Privacy
• Spam- unsolicited commercial e-mail

39. 8 | 39
Goods And Services
Marketed Through Spam
Source: Ferris Research, in “Spam for Everyone,” The New York Times, Jan. 31, 2005, www.nytimes.com.

40. 8 | 40
AMA Code Of
Ethics For
Marketing On
The Internet

41. 8 | 41
THANK YOU!!!!