E – MARKETING
Advanced Marketing Management
Arch. Maribel C. Tubera
DBA Student – SY 2012-2013
E - Marketing
• Use of information technology in the
process of creating, communicating
and delivering value to customers and
for managing customer relationships in
ways that benefit the organization and
• E-marketing is bigger than the web.
The web is only one aspect of e-marketing
E- marketing affects traditional marketing in 2 ways
1. Increases efficiency and effectiveness in
traditional marketing functions.
2. The technology of E-marketing transforms
many marketing strategies.
E - Commerce
• Using an electronic network to simplify
and speed up all stages of the business
process , from design and making, to
buying, selling and delivering (Dept of
Trade and Industry, 1999).
Activities considered as E –
1. Private Value-Added Networks (VANs) which include internal
transmission, data-processing, and encoding.
2. File Transfer Protocols (FTPs)- public transmission of data like
Wireless Application Protocol (WAP).
3. Electronic files transmitted via e-mail.
4. Use of Internet Web sites or Web pages.
5. Direct-connection or computer-to-computer communication via a
6. Use of hard drives, compact discs (CDs), zip drives for electronic
7. Use of faxes and e-mail as a means of communication.
Benefits of E – Commerce to a company
1. Better customer service and increased revenue;
2. Improved company image, competitive edge, and
accessibility to international market;
3. Ease of customer exchange, thereby encouraging
4. Paperless documentation/transactions;
5. Accurate supplier information exchange;
6. Attraction of new investment;
7. Lower procurement costs.
E - Business
• Continuous optimization of a firm’s
business activities through digital
E – Business (defined by IBM Global
Service, VP Neil Isford)
Helping the customer to do one or more
of the ff:
a) Connect their enterprise;
b) Extend the value of the chain;
c) Extend the business market.
• A global network of interconnected
• Includes millions of corporate, government,
organizational and private networks.
3 Technical roles of the internet
1. Content providers to create information, entertainment
ant etc., that reside on computers with network access.
2. Users (also known as client computers) who access
content and send e-mail and other data over the
3. A technology infrastructure to move, create, and view or
listen to the content (software and hardware)
3 important types of network of the internet
• A social structure made of nodes (generally
individuals or organizations) that are tied by
one or more specific types of interdependency,
such as values, visions, idea, financial
exchange, friends, kinship, dislike, conflict,
trade, web links, sexual relations, disease
transmission (epidemiology) or airline routes.
a) Social networking sites
b) Message boards
e) Pod casts
f) Instant messaging
g) Online forums
h) Photo and video sharing
i) E-mail, etc
People behind a website
b) Venture capitalists
c) Creative directors
d) Account and project manager
f) Graphic designers
• Site that helps users locate information
that is dispersed throughout the web;
• A portal presents and organizes
information regarding other sites
• Point of entry to the internet, such as
Yahoo and AOL websites
E – Business Strategy
• The deployment of enterprise
resources to capitalize on technologies
for reaching specified objectives that
ultimately improve performance and
create sustainable competitive
E – Business Model
• Method by which the organization
sustain itself in the long term using
information technology which includes
its value proposition for partners and
customers as well as its revenue
• Include both internet and offline digital
E – marketing contribution to the E-
a. E-marketing increases benefits
– Online mass customization
– 24/7 convenience
– Self-service ordering and tracking
– One-stop shopping
E – marketing contribution…continued
b. E-marketing decreases cost
– Low-cost distribution of communication
– Low-cost distribution channel for digital
– Lower costs for transaction processing
– Lower costs for knowledge acquisition
– Creates efficiencies in supply chain
– Decreases the cost of customer service
E – marketing contribution…continued
c. E-marketing increase revenues
– Online transaction revenues such as product
information, advertising and subscription sale,
or commission/fee on transaction or referral.
– Add value to products/services and increase
– Increase customer base by reaching new
– Build customer relationships and increase
current customer spending
Level of Commitment to E-Business
Click and Mortar (eSchwab,
Brochure ware E-mail
Internet marketing activities
1. Acquire a good domain name
2. Emphasize ease of use
3. Offer online value
4. Satisfy consumer needs
5. Explore URL and Web-advertising
6. Attach signature tags
7. Use of search engines, directories,
announcements, etc., as Marketing
8. Explore viral marketing
9. Distribute free newsletters
10. Find your niche
11. Gather affiliates
12. Send targeted e-mails
13. Produce and publish news articles
14. Distribute press release online
15. Run an auction
16. Run contests
17. Determine online communities
18. Establish an online forum
19. Distribute online coupons
20. Conduct surveys
21. Participate in a charitable Web
22. Post links to Internet Malls or
23. Participate in paid or free Banner
24. Practice reciprocal Web linking
25. Paid or free classified ads
26. Host classified ads
27. E-mail auto-responders
28. Add a search engine
29. Apply for awards
Digital Marketing vs Traditional
1. Digital marketing is spatial, not linear;
2. Digital promotions are generally non-
3. Digital promotions appeal more to reason
4. Hard sell does not work in digital
E-COMMERCE VIS-À-VIS E-MARKETING
AREA MARKETING COMMERCE
1. ADVERTISING Provides information and details to
answer the inquiries of the
Simply describes the features and
benefits of the product
2. TARGET MARKET Knows his/her target market well.
Products needed/wanted by the
No specific target market
3. PROMOTIONS AND
Individually tailored to customer Standard for all customers
4. PRICING OF
based on the ability of the
customer to buy and examine the
worth of the product
Set by seller without taking into
consideration the customer
5. DEVT. OF NEW
Created to cater to the needs and
wants of the customer
Based on research and
6. RELATIONSHIP WITH
Continues to maintain and
enhance long-term customer
Long-term customer relationship is
not that important.
Immediate profit is what counts
7. DISTRIBUTION Through direct channels or
intermediaries depending on the
Standard distribution determined
by the intermediaries of the
Branding on the Web
• “rational branding” – offers to help
web users to view an ad.
• It replaced the “emotional appeal” of a TV with a
“cognitive appeal” of providing “functional
assistance” (Schneider and Perry, 2000).
• Customer assistance, detailed product information,
and personalized viewing of products are strategies
to appeal to the cognitive side of customers.
• Brand extension – other strategy that can be
employed aside from rational branding
1. The power-shift from sellers to buyer
• Getting the buyers’ attention and building customer
relationship is the priority for every online business.
2. Market fragmentation
• Market is being segmented further and further into
• Marketers create products and services that
communicate more specifically to smaller groups.
• Example is Multiply.com which is an eCircle for people
who are active in posting pictures, blogs, music and
3. Death of distance
• No more barriers in conducting business across nations.
• Geographical boundaries are no more than technicalities when it
comes to internet
4. Time compression
• Same with geography, time is also not a factor here as
communication between businesses or individuals or both can be
done in real time.
5. Knowledge Management (KM)
• Sales reports, demographics, customer account information, and
other valuable knowledge can had easily through the internet
which can greatly help any business in their research and
6. I can Blog. I can Market
• Gives the consumer an opportunity to liberally promote or go
against a product, which in a way is giving the user the power to
7. Comment? Suggestions? Anyone?
• The consumer has the power to immediately give his views on the
products, which enables the company to address it.
8. A virtual store only in e-marketing
• it is virtual for it exists in a space that the user cannot see, yet the
purpose of its tangible equivalent is still fulfilled.
9. Customer Relationship Management (CRM)
• Businesses can now establish CRM through record-keeping and
using the information to develop a more personal relationship with
10. Supply Chain Management (SCM)
• This is the coordination of distribution channels to deliver products
more effectively to customers.
11. Enterprise Resource Planning (ERP)
• It is a back-office system that processes inventories, order-taking,
purchasing, and invoicing.
Companies need to be good in the
1. Create interactions
2. Integrate customer information across systems
3. Analyze data
4. Operate at internet speed
• An efficient model of Integrated Marketing because
every effort contributes to a redefinition of the “right”
customer which leads to more efficient spending on
acquisition, monetization and retention strategies.
• One who satisfies the ultimate objectives of the site.
• They are what we call “suki” (loyal customer) who
repeatedly visit and buy from the site.
• In finding the right customer through efficient
marketing efforts, every peso spent in the cyber-site is
The New 4-Ps (the enlightened marketing
1. Probe (research); www.yehey.com is a remarkable
search engine in the Philippines
2. People – analyze the demographics and
psychographics of your audience
3. Proposition (the integration of Kotler 4Ps) –
positioning of the brand
4. Postulation- offers an advocacy campaign to be
remembered, patronized preferred for a long period of
• “Probe on People, propose , and postulate.”
Guide for E-consumers
1. Know who you’re dealing with
2. Know what you’re buying
3. Understand the terms, conditions, and costs involved in
4. Protect yourself when paying online
5. Look out for your privacy
6. Understand what recourse you have if you run into
problems with your purchase
7. Get smart about e-commerce. Demand Friendly policies
A consumer-friendly Web site disclose
1. The Company
2. The Product Service
3. The Sale
4. Consumer Protections
Elements of Social Marketing
1. Understand “customer needs”
2. Distribution Channels
4. Opportunity Costs
Tips on understanding the principles of
1. Talk to your customers
2. Segment your audience
3. Position your product
4. Know your competition
5. Go to where your audience is
6. Utilize a variety of approaches
7. Use model that work
8. Test, test, test
9. Build partnership with key allies
10. See what you can do better next time
Components of effective e-mail
5. Brand strength
6. Engaging interface/Personalization
• E-mails forwarded from one source to another, which
contains incentives for those who forward the message
• It is an integral part of a campaign strategy that is used
to achieve objectives.
• Both the companies sending out the message and the
ones passing it around benefit from this.
Why Web is different?
1. The web is networked
2. The Web is instantaneous
3. The web is non-linear
4. The web is interactive
5. The Web is unbounded
6. The Web is metamedium
The Pros of Internet Advertising
1. Web advertising is the least expensive of
marketing a product.
2. Web advertising is an effective commercial
3. Web advertising has an extensive reach.
4. Web advertising continuously grows.
The cons of Internet Advertising
1. Does the Internet provide new customers? Or are
they just the same ones who simply shifted/
changed buying behavior because of the hassle of
going to malls?
2. Click rates alone are of little value
3. Web advertising expansion continues
4. Average CPMs decline further
Types of Internet advertising
1. Banner ads – small rectangular boxes at the top or bottom of Web
sites containing text and pictures.
2. Sponsorships – companies sponsor special content on Web sites
that carry news, and financial information.
3. Microsite – limited area on the Web managed and paid for by an
external advertiser or company.
4. Search-related ads – hottest growth area. Relevant links to
product or service offerings are listed alongside of search engine
5. Interstitials – often have video or animation that pop up between
changes on a web site.
6. Content advertising – links ads not to keywords but to the content
of Web pages.
7. Alliances and affiliate programs – when an Internet co. works
with another, and they end up advertising each other.
Images of Consumer
1. Consumer as Chooser
2. As Communicator
3. As Explorer
4. As Identity-Seeker
5. As Hedonist
6. As Victim
7. As Rebel
8. As Activist
9. As Citizen
Consumer Response to Marketing Action
1. Exposure – ensuring that the marketing offering is in the right place
for the target market to have access to it, at least potentially.
2. Attention – has 4 aspects. (Gaining attention, Holding attention,
Leading attention, Distracting attention)
3. Perception – capturing the attention is not enough, the message
should be perceived and understood in the intended way.
4. Retention – concerned with ensuring that it is remembered in the
5. Conviction – it aims to develop favorable beliefs, attitudes, and
intentions towards the marketing offering.
6. Action – when consumer takes action, it is safe to say that the
message has been effective and has targeted the right market.
7. Post-purchase – companies must offer after-sales services so that
the whole experience of purchasing will be satisfactory.
4 major segment of users
1. Recreational consumers – access at home and use
internet for personal applications.
2. Occupational consumers – access at home, mainly
for business-related activities such as conducting
work at home or running a small business
3. Corporate Users – access from workplace locations
and uses internet for work applications.
4. Academic Users – access from academic locations
and used for research and educational applications.
TRIMP media IN, TRI media OUT
• Television, Radio, Internet, Mobile, and Print
• Electronic media offer numerous benefits in terms
of information dissemination, product selection,
target marketing, brand building, and consumer
advertiser interactivity and intimacy.
• TRIMP is a departure from the traditional concept
of promoting a product or a service.
• Technological advances have created a new
electronic medium via the internet, together with
the mobile medium.
Convergence of traditional advertising and direct
Strategic Planning Process
Strategic planning : the core of E-marketing plan
Needs and other segmenting
Market Planning Process
Create marketing plans
Develop marketing program
Control marketing plans
Whole company strategic
Match resources to market
plans and programs
Main components of e-marketing plan
• Identify your target audience
• Set your objectives
• Decide upon the marketing mix
• Agree on a budget
• Action planning
• Measure your success
6 ways to make money in the Internet
1. Marketing existing products and services
2. Selling advertising space
3. Charging fees for accessible content
4. Charging fees for online transactions or links
5. Providing technical services
6. Writing books or presenting lectures on the
Channels of Distribution
Transformation producing more effective
1. Solution over benefits
2. Relationships over transactions
3. Dialogue over monologue
4. Integration over isolation
Secrets to successful branding in the Internet
1. Always start with a big idea;
2. Leverage the medium that delivers the greatest return on investment
against MarCom and business objectives;
3. In the offline universe, a brand is created by the advertiser and
expressed through media channel. Advertiser is in control.
In the online universe, the advertiser empowers the consumer to
define an experience through which the brand is built. Consumer
is in control.
4. Web has engendered a set of expectations inherent to the digital
interactive medium: speed, control, and value.
5. Maximize your use of creative assets across all media and geographies,
through an extranet-based asset management system.
6. Never forget to put language about global digital distribution in all your
7. Don’t be afraid to let ideas bubble up from their natural wellsprings
• The goal of digital payment system is to acquire
payment from a customer to a merchant
– Credit cards
– E-mail-based First Virtual’s PIN System
– ACH – the U.S. Automated Clearing House
– DigiCash – invented by David Chaum
– SET Secure Electronic Transaction – works similar
way to CyberCash
– Mondex – is not an Internet payment system, a
closed propriety system involving smart cards