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  1. 1. E – MARKETING Advanced Marketing Management Arch. Maribel C. Tubera DBA Student – SY 2012-2013
  2. 2. 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 its stakeholder. • E-marketing is bigger than the web.
  3. 3. The web is only one aspect of e-marketing internet automobile television Personal computer refrigerator UPC Scanner database E-mailcellphone PDA web
  4. 4. 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.
  5. 5. 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).
  6. 6. Activities considered as E – Commerce transactions 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 single program. 6. Use of hard drives, compact discs (CDs), zip drives for electronic storage. 7. Use of faxes and e-mail as a means of communication.
  7. 7. 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 customer loyalty; 4. Paperless documentation/transactions; 5. Accurate supplier information exchange; 6. Attraction of new investment; 7. Lower procurement costs.
  8. 8. E - Business • Continuous optimization of a firm’s business activities through digital technology.
  9. 9. 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.
  10. 10. Internet • A global network of interconnected networks. • Includes millions of corporate, government, organizational and private networks.
  11. 11. 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 network. 3. A technology infrastructure to move, create, and view or listen to the content (software and hardware)
  12. 12. 3 important types of network of the internet 1. Intranet 2. Extranet 3. web
  13. 13. Social Network • 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.
  14. 14. Tools a) Social networking sites b) Message boards c) Blogs d) Wikis e) Pod casts f) Instant messaging g) Online forums h) Photo and video sharing i) E-mail, etc
  15. 15. People behind a website a) Owners b) Venture capitalists c) Creative directors d) Account and project manager e) Programmers f) Graphic designers g) Copywriters h) Marketers
  16. 16. Web Portals • Site that helps users locate information that is dispersed throughout the web; • A portal presents and organizes information regarding other sites Portal • Point of entry to the internet, such as Yahoo and AOL websites
  17. 17. E – Business Strategy • The deployment of enterprise resources to capitalize on technologies for reaching specified objectives that ultimately improve performance and create sustainable competitive advantage.
  18. 18. 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 streams. • Include both internet and offline digital models.
  19. 19. E – marketing contribution to the E- Business Model a. E-marketing increases benefits – Online mass customization – Personalization – 24/7 convenience – Self-service ordering and tracking – One-stop shopping
  20. 20. E – marketing contribution…continued b. E-marketing decreases cost – Low-cost distribution of communication messages – Low-cost distribution channel for digital products – Lower costs for transaction processing – Lower costs for knowledge acquisition – Creates efficiencies in supply chain – Decreases the cost of customer service
  21. 21. 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 prices – Increase customer base by reaching new markets – Build customer relationships and increase current customer spending
  22. 22. Level of Commitment to E-Business Pure play Enterprise Business process Activity Pure Dot-Com (Amazon) Click and Mortar (eSchwab, most retailers) Customer relationship management Brochure ware E-mail Business transformation Effectiveness Efficiency Levelofbusinessimpact
  23. 23. E-Business Model Classification Activity Level 1. Order processing 2. Online purchasing 3. E-mail 4. Content publisher 5. Business intelligence (BI) 6. Online advertising 7. Online sales promotions 8. Dynamic pricing strategies online
  24. 24. E-Business Model … continued Business Level 1. Customer relationship management (CRM) 2. Knowledge management (KM) 3. Supply chain management (SCM) 4. Community building online 5. Database marketing 6. Enterprise resource planning (ERP) 7. Mass customization
  25. 25. E-Business Model…continued Enterprise Level 1. E-commerce, direct selling sponsorship 2. Portal 3. Broker models (online exchange, hub, online auction) 4. Agent models (manufacturer’s agent, catalog aggregator, meta mediary, shopping agent, reverse auction, buyers cooperative, virtual mall)
  26. 26. Activity Level of E-Business Models 1. Online purchasing 2. Order processing 3. E-mail 4. Content publisher 5. Business intelligence (BI) 6. Online advertising 7. Online sales promotions 8. Pricing strategies
  27. 27. 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 techniques 6. Attach signature tags 7. Use of search engines, directories, announcements, etc., as Marketing Tools 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 site 22. Post links to Internet Malls or Portals 23. Participate in paid or free Banner advertising 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
  28. 28. Digital Marketing vs Traditional Marketing 1. Digital marketing is spatial, not linear; 2. Digital promotions are generally non- intrusive; 3. Digital promotions appeal more to reason than emotions; 4. Hard sell does not work in digital marketing.
  29. 29. E-COMMERCE VIS-À-VIS E-MARKETING AREA MARKETING COMMERCE 1. ADVERTISING Provides information and details to answer the inquiries of the customer Simply describes the features and benefits of the product 2. TARGET MARKET Knows his/her target market well. Products needed/wanted by the target market No specific target market 3. PROMOTIONS AND DISCOUNTS Individually tailored to customer Standard for all customers 4. PRICING OF PRODUCTS 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 PRODUCTS Created to cater to the needs and wants of the customer Based on research and development 6. RELATIONSHIP WITH CUSTOMER Continues to maintain and enhance long-term customer relationship Long-term customer relationship is not that important. Immediate profit is what counts 7. DISTRIBUTION Through direct channels or intermediaries depending on the customer preference Standard distribution determined by the intermediaries of the seller’s choice
  30. 30. 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
  32. 32. 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 smaller fragments; • 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 videos.
  33. 33. 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 development.
  34. 34. 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 market it. 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.
  35. 35. 9. Customer Relationship Management (CRM) • Businesses can now establish CRM through record-keeping and using the information to develop a more personal relationship with their patrons. 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.
  36. 36. Companies need to be good in the following aspects: 1. Create interactions 2. Integrate customer information across systems 3. Analyze data 4. Operate at internet speed
  37. 37. Infinite Loop • 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.
  38. 38. Right Customers • 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 worthwhile.
  39. 39. The New 4-Ps (the enlightened marketing model) 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 time • “Probe on People, propose , and postulate.”
  40. 40. 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 the sale 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 and procedures
  41. 41. A consumer-friendly Web site disclose information about: 1. The Company 2. The Product Service 3. The Sale 4. Consumer Protections
  42. 42. Methods of promoting product and services online 1. Pre-promotion campaign 2. Reference 3. News Releases 4. Articles 5. Search Engines 6. Announcement Sites 7. Announcement Lists 8. E-zine Ads 9. Publisher Swaps 10. Opt-In Direct E-mail
  43. 43. Elements of Social Marketing 1. Understand “customer needs” 2. Distribution Channels 3. Pricing 4. Opportunity Costs
  44. 44. Tips on understanding the principles of social marketing 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
  45. 45. Components of effective e-mail marketing 1. Privacy 2. Relevance 3. Control 4. Rewards 5. Brand strength 6. Engaging interface/Personalization
  46. 46. Viral Marketing • E-mails forwarded from one source to another, which contains incentives for those who forward the message to others. • 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.
  47. 47. 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
  49. 49. The Pros of Internet Advertising 1. Web advertising is the least expensive of marketing a product. 2. Web advertising is an effective commercial communication. 3. Web advertising has an extensive reach. 4. Web advertising continuously grows.
  50. 50. 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
  51. 51. 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 results. 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.
  52. 52. 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
  53. 53. 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 intended way. 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.
  54. 54. 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.
  55. 55. 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.
  56. 56. Internet Advertising Convergence of traditional advertising and direct response marketing. Traditional Advertising Internet Advertising Direct Marketing
  57. 57. Strategic Planning Process Strategic planning : the core of E-marketing plan Customers Needs and other segmenting dimensions Company Objectives Resources Competitors Current and Prospective Segmentation and Targeting Differentiation and Positioning Product Place Price Promotion Target Market
  58. 58. Market Planning Process Market Planning Set objectives Evaluate opportunities Create marketing plans Develop marketing program Control marketing plans and program Measure results Evaluate progress Whole company strategic mgt planning. Match resources to market opportunities Implement marketing plans and programs
  59. 59. 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
  60. 60. 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 Internet
  61. 61. Channels of Distribution Manufacturer Manufacturer’s stores Consumers Manufacturer Computer Consumer New Scheme Manufacturer TV Set Consumer Manufacturer Transactional Media Consumers
  62. 62. Types of Pricing Strategies 1. Premium pricing 2. Penetration pricing 3. Economy pricing 4. Price skimming 5. Psychological pricing 6. Product line pricing 7. Pricing variations 8. Optional product pricing 9. Captive product pricing 10. Product bundling 11. Promotional pricing 12. Geographical pricing
  63. 63. Transformation producing more effective online advertising 1. Solution over benefits 2. Relationships over transactions 3. Dialogue over monologue 4. Integration over isolation
  64. 64. 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 talent contracts. 7. Don’t be afraid to let ideas bubble up from their natural wellsprings
  65. 65. Digital Payment • 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 – CyberCash/CyberCoin – SET Secure Electronic Transaction – works similar way to CyberCash – Mondex – is not an Internet payment system, a closed propriety system involving smart cards
  66. 66. END