The document discusses e-marketing and various online advertising methods. It defines e-marketing as applying marketing principles via electronic media and the internet. Some key e-marketing methods mentioned include search engine marketing, display advertising, email marketing, interactive marketing, blog marketing, and viral marketing. The document also discusses challenges of e-marketing like lack of technology understanding, fast-changing technologies, and legal issues. It provides guidelines for internet advertising and summarizes various types of online advertisements.
2. Electronic marketing refers to the
application of marketing principles and
techniques via electronic media and
more specifically the Internet.
3. E Marketing is the use of information
technology in the processes of
◦ creating, communicating and delivering
value to customers
◦ managing customer relations
E Marketing is the fusion of IT with
traditional marketing
4. Online marketing
It means using the power of online
network, computer communications
and digital interactive media to
achieve the marketing objective
3 new market segments
◦ Cyberbuyers (professional)
◦ Cyberconsumers (home computer users)
◦ Cybersurfers
5. Problems in Traditional
Marketing
Expensive (print brochures, product
sheets and catalogs,postage,shipping)
Time consuming
“Hit and Miss” strategy
6. E-marketing value chain
Strong relationship between the
company and the consumer
Customer Customer Customer Customer
acquisition (pre- support (during fulfillment support (post
purchase purchase) (purchase purchase )
support dispatch)
9. S
e
a
r
c
h
E-Marketing Methods P
r
e
f
e
2) Display
r
e
n
c
Advertising
e
s
3) E-mail marketing
4) Interactive Marketing
5) Blog Marketing
6) Viral Marketing (ex. Word of mouth)
10. Mass Direct Interactive
Marketing Marketing Marketing
Distribution
Channel
Market
Strategy
Enabling
Technology
Authors of
marketing
material
Expected
outcome
11. Benefits of e-marketing over
traditional marketing
Scope (global marketplace)
E-marketing opens up new scope for
smaller businesses on smaller budget to
access the potential customer all over the
world
Increase Interactivity with customers
Immediacy – reduces time between
hearing about a product to actual
acquisition (e.g. magazine)
13. But E-marketing Suffers From
Lack of understanding of technology
by marketers
Fast Changing technologies
Lack of data
Lack of trained personal
Senior management barriers
Corporate culture
14. Challenges/Problems
• Low percentage of computer
penetration
• Cost of internet connection
• Slow Internet connectivity
• Low percentage of surfers entering
into online transactions
• Less use of Credit cards
• Cyber security
• Cyber crime
• Loss of personal touch in shopping
15. Challenges/Problems
Integration of e-marketing and
conventional marketing creates a
“blurred channel”
Hybrid advertising
Difficult to satisfy varied consumer
expectations
Difficult to keep pace with changing
technology
Legal issues
16. Challenges/Problems
Technological limitations
◦ Different browsers
◦ Online software (plug ins java –flash etc.)
◦ Screen resolutions
◦ Bandwidth speed
◦ Operating systems
◦ Server technology
17. Changing roles into
Information-based Marketing
1. Retailers vs. Manufacturers
(POS terminals)
a) Market research and customer prospecting
b) Market presence
c) Product or service bundling
d) Information-based products: Pricing &
priority
2. Target and Micromarketing
3. Small vs. Large business
4. Gray areas: Regulatory and legal
implications
18. 1. Retailers Vs Manufacturers
POS plays a major role in shifting the
power.
New possibilities arises with private
labeling of goods
Information Based marketing can offer a
manufacturers and retailers to do:
◦ Market Research
◦ Market Presence
◦ Bundling Of products and services
◦ Pricing and priority of products
19. a) Market Research &
customer prospecting
Conventional Methods of collecting data
often cost million of dollars, For a fraction of
these cost companies now a days put
information on servers
In future , market research will reward
customers for listening or watching
commercials For ex: Freefone service
provided to US WEST Customers
20. b) Market presence
Companies put their information on
web servers to present themselves in
market.
◦ Automobile companies
Market presence can be choreographed by
promotional discounts “only to those to
whom it pays, who are cost sensitive
enough to switch the brands”
21. c) Product or Service
Bundling
Bundling strategies:
◦ Only components
◦ Only Bundles
◦ Mixed Strategy
To evaluate desirability of these
strategies Some issues must be
considered:
What are the prices of bundles or components
What are level of revenues
Which portion of potential market is atttracted
22. Contd…
But in online world, information bundling is
more easy through___________?
Issues :
◦ On what basis do we need to bundle the
products?
◦ Does bundling decrease information search
costs?
◦ How do we sell bundled products which are from
different countries?
◦ How do we price these bundled products?
23. d) Information based products :
pricing and priority
Information products can be s/w, e-book,
entertainment, databases etc or derived
information such as FAQ
Important issues – “Pricing and priority”
◦ Pricing include product, service, connectivity,
brokerage costs.
◦ How are prices determined in multi-participant
world
◦ What are characteristics of supply and demand
◦ What technology do we use to obtain information
useful for price estimation
24. Information products will most likely to be
priced on the basis of speed of
“Availability and Accuracy”
Issues needs to be resolved:
◦ how to set prices for different priority sets?
◦ How to specify sets?
◦ How to take in account price competition ?
◦ Develop better way to collect and present pricing
information about services (price shock)
25. 2. Target and micro marketing
Traditional mass marketers continue as if
population were homogenous, whereas
micro marketers not only have discovered
various segments but mining profitable
places by targeting customers
Issues:
◦ Getting close to consumers (because
customer is bombarding with a lot of
messages by different brands.)
26. 3. Small v/s large
In traditional ,Small business rarely grow
just because of advertising cost
With advent of e commerce , small
business can now bridge this gap
The major differences between Internet and
other I-way Advertising media :Ownership
and membership fees which is no longer
case with Internet .
27. 4. Gray Areas: Regulatory and
Legal Implications
ex. ad of cigarettes in US
28. Why Internet Advertisement?
Ads can be updated any time with a minimal cost.
Adscan reach large numbers of buyers all over the
world.
Online ads are frequently cheaper in comparison with
television, radio, newspaper, or billboard ads.
Webads can efficiently use text, audio, graphics, and
animation.
The audience for Internet advertising is growing
rapidly.
Web ads can be catered to a specific target.
28
29. On-line advertising paradigms
Active or Push-based advertising
◦ Broadcast model
Means for reaching a great number of
people in a short period of time
News groups - Users read and post public
messages (called articles or posts, and
collectively termed news) to one or more
categories, known as newsgroups
list servers
30. Cont…
◦ Junk mail model
Direct marketing method
Uses targeted mailing list
Relative high cost per contact
Need to update mailing list
Possible cost to customers
Difficult to get consumer attention
May make receiver annoyed
32. Passive or Pull-based
advertising
Provides a feed back loop connecting
company and customer
◦ Billboard or WWW model
◦ Catalog and Yellow pages directory model
◦ Customer endorsements
33. Billboard or WWW model
Do not require active search
No cost to customers
Ability to completely cover a market
Disadvantage is related to viewing
time
34. Catalog and Yellow pages
directory model
Requires active search on part of the
customer
Directory services –white pages, yellow
pages
Advantages
◦ Ad permanence
◦ Ability to target a well defined area
◦ Low in cost
Disadvantage
◦ Not suitable for price advertising
35. Customer endorsement
Experiences of the people with
products and services – both positive
and negative
Most effective advertisements on the
internet
36. Issues in online-advertising
Advertising process
Core content
Supporting content
Market and consumer research
Repeat customers
37. Guidelines for internet advertising
Do not send intrusive messages
Do not sell customer data without the
express permission of the user
Do not send advertisement to
unrelated news groups and list servers
only
Conduct promotions and direct selling
only under full disclosure
38. Cont…
Conduct research only with the
consumer’s consent
Never use internet communications
software to conceal activities
39. Online Marketing Process
1. Segment and identify the target
audience
◦ Divide the market into separate and
distinct customer groups
◦ Segmentation approaches
Demographic approaches
Benefit or behavioural approaches
Volume approaches
Business specialization approaches
40. 2. Create a coherent advertising plan
◦ What is the ad meant to accomplish?
◦ Who should the ad talk to?
◦ What should the ad say?
◦ What advertisement medium would be
effective?
3. Get the content to the customer
◦ Push based or pull based marketing
41. 4. Correspond and interact with
customers
◦ Passive interaction via sites
◦ Direct interaction via e-mail
◦ Group dialogs via bulletin boards, news
groups
◦ Video conferencing
5. Learn from customers
◦ Evaluation
6. Provide customer service and
support
42. Types of
internet advertisements
Floating ad- An ad which moves across
the user's screen or floats above the
content.
Expanding ad- An ad which changes size
and which may alter the contents of the
webpage.
Polite ad- A method by which a large ad
will be downloaded in smaller pieces to
minimize the disruption of the content
being viewed
43. Wallpaper ad- An ad which changes the
background of the page being viewed.
Trick banner- A banner ad that looks like a
dialog box with buttons. It simulates an
error message or an alert.
Pop-up- A new window which opens in
front of the current one, displaying an
advertisement, or entire webpage.
Pop-under- Similar to a Pop-Up except
that the window is loaded or sent behind
the current window so that the user does
not see it until they close one or more
active windows.
44. Video ad: similar to a banner ad, except that
instead of a static or animated image, actual
moving video clips are displayed. This is the
kind of advertising most prominent in
television, and many advertisers will use the
same clips for both television and online
advertising.
Map ad: text or graphics linked from, and
appearing in or over, a location on an
electronic map such as on Google Maps.
Mobile ad: an SMS text or multi-media
message sent to a cell phone.
Interstitial ad: a full-page ad that appears
45. Internet Advertisement
Banner advertisement is the most
commonly used form of advertising on
the Internet.
◦ Two types of banners: Keyword banners &
Random banners
◦ A major advantage of using banners is the
ability to customize, but banner advertising
can be costly.
URL Advertising: Any company can
submit its URL to a search engine and 45
46. Internet Advertising (cont.)
E-mail Advertising. Email is a cost-
effective marketing channel with a better
and quicker response rate than other
channels.
◦ Problem of Spamming
Online Events and Promotions
(Sponsorship)
Other Forms of Internet Advertisement.
◦ Internet communities, chat rooms, newsgroups,
and kiosks 46