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The Power of  e Marketing
<ul><li>President and CEO </li></ul><ul><li>eMarketing Association </li></ul>Robert Fleming
The Internet is Different <ul><li>A rare example of a modern functional anarchy </li></ul><ul><li>No official censors, no ...
Evolution Of The Internet Phase One:   Portals  Everywhere Phase Two:   Simple  Transactions Phase Three:   The  Digital D...
The Internet Grows <ul><li>600 million people access the internet worldwide (2002 est.) </li></ul><ul><li>2002 e-commerce ...
Rapid Increase in Internet Use in the United States Across States –Over half the population Source: NTIA and ESA, U.S. Dep...
Internet Use at Any Location, 1998 and 2001 As a Percent of U.S. Population Source: NTIA and ESA, U.S. Department of Comme...
What are they doing online? <ul><li>More time </li></ul><ul><li>More money </li></ul><ul><li>More services </li></ul><ul><...
Online Activities 2001 – Internet users Age 3+
Time spent online Source: Jupiter Oct 1999 4.3 9 6 3 0 Oct 2001 8.2
<ul><li>75% of online customers say the Net makes their lives better </li></ul><ul><li>79% of Net users utilise it for inf...
Impact of Internet on media consumption Source: (USA) Scarborough National Internet Study <ul><li>23%  Watch TV less often...
7.00am 9.00am 11.00am 1.00pm 3.00pm 5.00pm 7.00pm 9.00pm 11.00pm Reaching consumers throughout their media day TV Breakfas...
e-commerce only represents  a minor fraction of total GDP... e-commerce (3%) 2002 US GDP  Projection Traditional retail (9...
The Internet has to support Brick & Mortar Internet Contribution to Bricks and Mortar Initiate Relationship in Information...
…  and Bricks & Mortar must support the Internet Bricks & Mortar Contribution to Internet Brand Reinforcement and Trust Ca...
Customers must be able to move back and forth seamlessly ... Shop Research Buy Own Dispose/ Repurchase Awareness Internet ...
Marketing Employment Is Growing “ Employment of advertising, marketing, promotions, public relations, and sales managers i...
eMA Employment Survey <ul><li>70% of all management level marketing positions require Internet abilities and/or experience...
Internet Related Jobs Are NOT Just in I T Source: Center for Research in eCommerce, graduate School of Business, Universit...
The Change in Corporate Culture <ul><li>1996 – most web sites are managed by IT /MIS </li></ul><ul><li>2001 – marketing an...
Are the Following IT or Marcom Functions? <ul><li>Corporate communications </li></ul><ul><li>Advertising </li></ul><ul><li...
IT/MIS Continues to Dominate Web Management <ul><li>Lack of technical understanding by marketers </li></ul><ul><li>Fast ch...
Efficient Organization
Effective Organization
Outlook <ul><li>Increasing shift of web site responsibility from MIS to marketing </li></ul><ul><li>Increased technical kn...
No Other Media  Has All of the Advantages of eMarketing.  Period. <ul><li>Cost effectiveness </li></ul><ul><li>Global reac...
But E-marketing Suffers From <ul><li>Lack of data – 5 years vs. decades for magazines, radio </li></ul><ul><li>Lack of und...
Online Marketing Tools Are Less Than 6 Years Old (That’s First Grade) <ul><li>E-mail marketing </li></ul><ul><li>Site desi...
Site Design for E-marketing <ul><li>Merchant account checkout </li></ul><ul><li>Visitor expectations </li></ul><ul><li>Sur...
What Works on a Site ? Common Influences on Online Purchase Shipping fees 92% Prices 92% Product availability 86% Special ...
Search Engines <ul><li>Pay for position taking a strong lead </li></ul><ul><li>Search engine optimization (SEO) critical <...
E-mail Marketing <ul><li>E-mail is the number one app with over 90% of internet users </li></ul><ul><li>Issues such as bro...
Viral Marketing <ul><li>Hot Mail was one of the first examples of viral marketing </li></ul><ul><li>Another “e” term for “...
Affiliate Marketing <ul><li>Partnership and affiliate programs are booming </li></ul><ul><li>Cooperation between online co...
Banner Advertising <ul><li>Volatile history with sharply declining click through rates </li></ul><ul><li>New forms such as...
Research <ul><li>Log files </li></ul><ul><li>ASP log conversion </li></ul><ul><li>Metrics for e-marketing analysis </li></...
Challenges <ul><li>Integration of e-marketing and conventional marketing creates a “blurred channel” </li></ul><ul><li>Hyb...
Conventional Media <ul><li>Addition of web address creates hybrid advertising </li></ul><ul><li>Web site can degrade or en...
Technological Limitations <ul><li>Different browsers </li></ul><ul><li>Online software (plug ins java –flash etc.) </li></...
Legal Issues <ul><li>Privacy policies </li></ul><ul><li>Spam </li></ul><ul><li>International commerce </li></ul><ul><li>CO...
Emerging Technologies. <ul><li>Wireless poised to triple over the next few years </li></ul><ul><li>Smart chips could track...
80% Still Dial-up Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Su...
One Example
One More
CRM
<ul><li>Digital innovations become an integral part of life </li></ul><ul><li>Breaks down logistical barriers  </li></ul><...
The 21 st  Century <ul><li>Explosive increase in innovation </li></ul><ul><li>Extraordinary dynamism of technology </li></...
The eMarketing Association <ul><li>Accreditation body for CeMA and CeM Certifications </li></ul><ul><li>Certifications now...
CeMA Certification Certification—a sign of competence and achievement in this field—is particularly important in a competi...
For a Copy of This Presentation Go To: Http://www.eMarketingAssociation.Com/ppt.htm
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Transcript of "Sdsu2002v2"

  1. 1. The Power of e Marketing
  2. 2. <ul><li>President and CEO </li></ul><ul><li>eMarketing Association </li></ul>Robert Fleming
  3. 3. The Internet is Different <ul><li>A rare example of a modern functional anarchy </li></ul><ul><li>No official censors, no bosses, no board of directors, no stockholders </li></ul><ul><li>No one “owns” the Internet, there is no “Internet, Incorporated” </li></ul><ul><li>The “Internet” itself, doesn’t even officially exist as an entity </li></ul><ul><li>The “Internet” never charges for anything. Each group accessing the internet is responsible for their own machine and access </li></ul>
  4. 4. Evolution Of The Internet Phase One: Portals Everywhere Phase Two: Simple Transactions Phase Three: The Digital Decade
  5. 5. The Internet Grows <ul><li>600 million people access the internet worldwide (2002 est.) </li></ul><ul><li>2002 e-commerce 1 trillion dollars (est.) </li></ul><ul><li>68% increase in e-commerce 2000 vs. 2001 </li></ul><ul><li>Over 1 billion web pages, 40 million sites </li></ul>
  6. 6. Rapid Increase in Internet Use in the United States Across States –Over half the population Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements August 2000 September 2001
  7. 7. 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
  8. 8. What are they doing online? <ul><li>More time </li></ul><ul><li>More money </li></ul><ul><li>More services </li></ul><ul><li>Fewer sites </li></ul>
  9. 9. Online Activities 2001 – Internet users Age 3+
  10. 10. Time spent online Source: Jupiter Oct 1999 4.3 9 6 3 0 Oct 2001 8.2
  11. 11. <ul><li>75% of online customers say the Net makes their lives better </li></ul><ul><li>79% of Net users utilise it for information for offline purchases </li></ul><ul><li>AOL online average minutes per day: </li></ul>1999 2001 47 63
  12. 12. Impact of Internet on media consumption Source: (USA) Scarborough National Internet Study <ul><li>23% Watch TV less often </li></ul><ul><li>9% Listen to radio less often </li></ul><ul><li>15% Read newspaper less often </li></ul><ul><li>20% Read magazines less often </li></ul>
  13. 13. 7.00am 9.00am 11.00am 1.00pm 3.00pm 5.00pm 7.00pm 9.00pm 11.00pm Reaching consumers throughout their media day TV Breakfast News News, Ent, Sport Print Morning Paper Paper/Mags Leisure Mags Outdoor Journey To Work Out for Lunch Journey Home Radio Breakfast Show Drive Time Drive Time Online Check News/ Mail Messenger News, Sport, Finance Messenger Web Cast
  14. 14. e-commerce only represents a minor fraction of total GDP... e-commerce (3%) 2002 US GDP Projection Traditional retail (97%)
  15. 15. The Internet has to support Brick & Mortar Internet Contribution to Bricks and Mortar Initiate Relationship in Information Stage Increase Product Selection Develop Aftermarket Contact Develop Customer Knowledge Reduce Inventory Needs Reach New Customer Sets
  16. 16. … and Bricks & Mortar must support the Internet Bricks & Mortar Contribution to Internet Brand Reinforcement and Trust Capture urgent and impulse buys Facilitate Delivery Capture Aftermarket Profits Reach a larger customer base Place to touch and test-drive product
  17. 17. Customers must be able to move back and forth seamlessly ... Shop Research Buy Own Dispose/ Repurchase Awareness Internet Bricks and Mortar Shared Customer Info Role of Bricks and Mortar Transform Bricks and Mortar Integrated Systems
  18. 18. 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 ” Source: United States Department of Labor
  19. 19. eMA Employment Survey <ul><li>70% of all management level marketing positions require Internet abilities and/or experience. </li></ul>
  20. 20. Internet Related Jobs Are NOT Just in I T Source: Center for Research in eCommerce, graduate School of Business, University of Texas at Austin  
  21. 21. The Change in Corporate Culture <ul><li>1996 – most web sites are managed by IT /MIS </li></ul><ul><li>2001 – marketing and IT/MIS manage web sites jointly (in some cases) </li></ul><ul><li>Marketing needs to “own” web site </li></ul><ul><li>IT/MIS are the mechanics – marketing the pilot </li></ul><ul><li>Marketing becomes more collaborative and less autonomous </li></ul>
  22. 22. Are the Following IT or Marcom Functions? <ul><li>Corporate communications </li></ul><ul><li>Advertising </li></ul><ul><li>Corporate identity </li></ul><ul><li>Product positioning </li></ul><ul><li>Market Research </li></ul>
  23. 23. IT/MIS Continues to Dominate Web Management <ul><li>Lack of technical understanding by marketers </li></ul><ul><li>Fast changing technology can create confusion </li></ul><ul><li>Corporate politics plays a role </li></ul>
  24. 24. Efficient Organization
  25. 25. Effective Organization
  26. 26. Outlook <ul><li>Increasing shift of web site responsibility from MIS to marketing </li></ul><ul><li>Increased technical knowledge required from marketers </li></ul><ul><li>Internet marketing accounts for 15% of all advertising impressions and only 5% of marketing budgets </li></ul><ul><li>The gap will close between impressions and budget </li></ul><ul><li>Marketer must understand new tools </li></ul>
  27. 27. No Other Media Has All of the Advantages of eMarketing. Period. <ul><li>Cost effectiveness </li></ul><ul><li>Global reach </li></ul><ul><li>Interactive response </li></ul><ul><li>Measurability </li></ul><ul><li>Personalization </li></ul><ul><li>Real-time feedback </li></ul>
  28. 28. But E-marketing Suffers From <ul><li>Lack of data – 5 years vs. decades for magazines, radio </li></ul><ul><li>Lack of understanding of technology by marketers </li></ul><ul><li>Fast moving and turbulent arena </li></ul><ul><li>Changing technologies </li></ul><ul><li>Lack of trained personal </li></ul><ul><li>Senior management barriers </li></ul><ul><li>Corporate culture </li></ul>
  29. 29. Online Marketing Tools Are Less Than 6 Years Old (That’s First Grade) <ul><li>E-mail marketing </li></ul><ul><li>Site design for e-commerce </li></ul><ul><li>Viral marketing </li></ul><ul><li>Affiliate marketing </li></ul><ul><li>Banner advertising </li></ul><ul><li>Search engines </li></ul><ul><li>Online publicity </li></ul><ul><li>Research </li></ul><ul><li>CRM </li></ul>
  30. 30. Site Design for E-marketing <ul><li>Merchant account checkout </li></ul><ul><li>Visitor expectations </li></ul><ul><li>Surveys </li></ul><ul><li>Content </li></ul><ul><li>Technical considerations </li></ul><ul><li>Color </li></ul><ul><li>Plug ins </li></ul><ul><li>Product descriptions </li></ul><ul><li>Company information </li></ul>
  31. 31. What Works on a Site ? Common Influences on Online Purchase Shipping fees 92% Prices 92% Product availability 86% Special promotions or incentives 76% Selection 69% Order tracking 66% Clearly identified delivery time 65% Return policy 63% Ease of use 62% Site performance/speed 51% Source: Vividence
  32. 32. Search Engines <ul><li>Pay for position taking a strong lead </li></ul><ul><li>Search engine optimization (SEO) critical </li></ul><ul><li>Majority of users rely on search engines for navigation </li></ul><ul><li>Targeted audience </li></ul><ul><li>Accounts for over 70% of new site visitors </li></ul><ul><li>Turbulent arena </li></ul>
  33. 33. E-mail Marketing <ul><li>E-mail is the number one app with over 90% of internet users </li></ul><ul><li>Issues such as browser differences, targeting, and privacy are critical </li></ul><ul><li>Spam, creates a major negative for e-mail marketing, laws passed in 19 states </li></ul><ul><li>Only 3 years of significant use </li></ul>
  34. 34. Viral Marketing <ul><li>Hot Mail was one of the first examples of viral marketing </li></ul><ul><li>Another “e” term for “word-of-mouth” advertising </li></ul><ul><li>Bulletin boards, e-mail, chat rooms are the major conduits for viral campaigns </li></ul><ul><li>What is “buzz” </li></ul>
  35. 35. Affiliate Marketing <ul><li>Partnership and affiliate programs are booming </li></ul><ul><li>Cooperation between online companies </li></ul><ul><li>Commission programs and banner exchange programs lead this channel </li></ul>
  36. 36. Banner Advertising <ul><li>Volatile history with sharply declining click through rates </li></ul><ul><li>New forms such as java, active x, </li></ul><ul><li>Pop-ups, pop-under and other new delivery methods are gaining acceptance </li></ul><ul><li>Branding is possible with banners </li></ul>
  37. 37. Research <ul><li>Log files </li></ul><ul><li>ASP log conversion </li></ul><ul><li>Metrics for e-marketing analysis </li></ul><ul><li>Surveys </li></ul>
  38. 38. Challenges <ul><li>Integration of e-marketing and conventional marketing creates a “blurred channel” </li></ul><ul><li>Hybrid advertising </li></ul><ul><li>Marketing mix </li></ul><ul><li>Consumer expectations </li></ul><ul><li>Technological limitations </li></ul><ul><li>New innovations </li></ul><ul><li>Legal issues </li></ul>
  39. 39. Conventional Media <ul><li>Addition of web address creates hybrid advertising </li></ul><ul><li>Web site can degrade or enhance conventional efforts </li></ul><ul><li>Visitor experience becomes critical </li></ul><ul><li>Diffused metrics </li></ul>
  40. 40. Technological Limitations <ul><li>Different browsers </li></ul><ul><li>Online software (plug ins java –flash etc.) </li></ul><ul><li>Screen resolutions </li></ul><ul><li>Bandwidth speed </li></ul><ul><li>Operating systems </li></ul><ul><li>Server technology </li></ul>
  41. 41. Legal Issues <ul><li>Privacy policies </li></ul><ul><li>Spam </li></ul><ul><li>International commerce </li></ul><ul><li>COPPA </li></ul><ul><li>19 states have anti Spam laws </li></ul><ul><li>Dozens pending in congress </li></ul><ul><li>Online disclosure </li></ul>
  42. 42. Emerging Technologies. <ul><li>Wireless poised to triple over the next few years </li></ul><ul><li>Smart chips could track BM purchases </li></ul><ul><li>Higher bandwidth could allow for increased streaming media on sites </li></ul><ul><li>MPEG4 – good enough for video? </li></ul><ul><li>??? </li></ul>
  43. 43. 80% Still Dial-up Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
  44. 44. One Example
  45. 45. One More
  46. 46. CRM
  47. 47. <ul><li>Digital innovations become an integral part of life </li></ul><ul><li>Breaks down logistical barriers </li></ul><ul><li>Offers greater flexibility and power </li></ul><ul><li>Shrinks time and business </li></ul><ul><li>Simplifies complex business processes </li></ul><ul><li>Enables effective communication and collaboration </li></ul><ul><li>Opens up new markets </li></ul>
  48. 48. The 21 st Century <ul><li>Explosive increase in innovation </li></ul><ul><li>Extraordinary dynamism of technology </li></ul><ul><li>Exceptional increases in productivity </li></ul><ul><li>Myriad new forms of business activity </li></ul><ul><li>Expanding opportunities </li></ul><ul><li>Level playing field </li></ul>
  49. 49. The eMarketing Association <ul><li>Accreditation body for CeMA and CeM Certifications </li></ul><ul><li>Certifications now offered in over 250 schools </li></ul><ul><li>Largest association representing e-marketing exclusively </li></ul><ul><li>Recognized globally </li></ul><ul><li>Extensive e-marketing resources </li></ul>
  50. 50. CeMA Certification Certification—a sign of competence and achievement in this field—is particularly important in a competitive job market. While relatively few advertising, marketing, and public relations managers currently are certified, the number of managers who seek certification is expected to grow. Source: United States Department of Labor
  51. 51. For a Copy of This Presentation Go To: Http://www.eMarketingAssociation.Com/ppt.htm
  52. 52. Questions
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