e -Marketing Mykola Sarazhynskyy Introduction Revised January 2008

Outline Significance Opportunities Today’s Marketing Challenge E-marketing Definition Major Components Communication Channels Stages of Customer Acquisition Pros and Cons How to Use It to Your Advantage

Significance

Opportunities

Today’s Marketing Challenge

E-marketing Definition

Major Components

Communication Channels

Stages of Customer Acquisition

Pros and Cons

How to Use It to Your Advantage

Demographics of Internet Users http://www.pewinternet.org/trends.asp Source: Pew Internet & American Life Project, February 15 – March 7, 2007 Tracking Survey. N=2,200 adults, 18 and older. Margin of error is ±2% for results based on the full sample and ±3% for results based on internet users. Last updated June 15, 2007. 91 College + 81 Some College 61 High School 40% Less than High School Educational attainment 93 $75,000 + 82 $50,000-$74,999 69 $30,000-$49,999 55% Less than $30,000/yr Household income 32 65+ 65 50-64 83 30-49 87% 18-29 Age 71 Men 70 Women 71% Total Adults Use the internet

Demographics of Internet Users http://www.pewinternet.org/trends.asp Source: Pew Internet & American Life Project, February 15 – March 7, 2007 Tracking Survey. N=2,200 adults, 18 and older. Margin of error is ±2% for results based on the full sample and ±3% for results based on internet users. Last updated June 15, 2007. 91 College + 81 Some College 61 High School 40% Less than High School Educational attainment 93 $75,000 + 82 $50,000-$74,999 69 $30,000-$49,999 55% Less than $30,000/yr Household income 32 65+ 65 50-64 83 30-49 87% 18-29 Age 71 Men 70 Women 71% Total Adults Use the internet

Demographics of Internet Users http://www.pewinternet.org/trends.asp Source: Pew Internet & American Life Project, February 15 – March 7, 2007 Tracking Survey. N=2,200 adults, 18 and older. Margin of error is ±2% for results based on the full sample and ±3% for results based on internet users. Last updated June 15, 2007. 91 College + 81 Some College 61 High School 40% Less than High School Educational attainment 93 $75,000 + 82 $50,000-$74,999 69 $30,000-$49,999 55% Less than $30,000/yr Household income 32 65+ 65 50-64 83 30-49 87% 18-29 Age 71 Men 70 Women 71% Total Adults Use the internet

Demographics of Internet Users http://www.pewinternet.org/trends.asp Source: Pew Internet & American Life Project, February 15 – March 7, 2007 Tracking Survey. N=2,200 adults, 18 and older. Margin of error is ±2% for results based on the full sample and ±3% for results based on internet users. Last updated June 15, 2007. 91 College + 81 Some College 61 High School 40% Less than High School Educational attainment 93 $75,000 + 82 $50,000-$74,999 69 $30,000-$49,999 55% Less than $30,000/yr Household income 32 65+ 65 50-64 83 30-49 87% 18-29 Age 71 Men 70 Women 71% Total Adults Use the internet

Top 10 Online Activities http://www.pewinternet.org/trends.asp Source: Pew Internet & American Life Project Tracking surveys (March 2000 – February-March) 08/2006 71 Buy a product 02-03/2007 72 Get news 05-06/2004 73 Get travel info 11/2004 78 Check the weather 02-03/2005 78 Research a product or service before buying it 08/2006 80 Look for health/med info 02-03/2007 83 Look for info on a hobby or interest 12/2006 86 Search for a map or driving directions 12/2006 91 Use a search engine to find information 02-03/2007 91 Send or read e-mail Most recent survey date % users report this activity Here are some of the things they do online:

How People Shop Online http://www.doubleclick.com

In 2006 e-commerce sales (retail web and eBay) totaled an estimated $142.7 billion (Census Bureau of the U.S. Department of Commerce) Expected growth of about 20% in 2007 (to about $171.2 billion). (eMarketer) More moderate growth between 15% and 18% in the coming years. (eMarketer) In 2007 the average web shopper will spend about $1,123 shopping online, a figure will grow by 14% to $1,279 by 2008 and 62.9% to $1,829 in 2011. (eMarketer and Internet Retailer, 2007) US Opportunities and Competition

In 2006 e-commerce sales (retail web and eBay) totaled an estimated $142.7 billion (Census Bureau of the U.S. Department of Commerce)

Expected growth of about 20% in 2007 (to about $171.2 billion). (eMarketer)

More moderate growth between 15% and 18% in the coming years. (eMarketer)

In 2007 the average web shopper will spend about $1,123 shopping online, a figure will grow by 14% to $1,279 by 2008 and 62.9% to $1,829 in 2011. (eMarketer and Internet Retailer, 2007)

UK Opportunities and Competition The value of Internet sales by businesses rose to £103.3 billion in 2005, an increase of 56% on the 2004 figure of £66.2 billion. The value of Internet sales to households rose to £21.4 billion in 2005 from £16.5 billion in 2004, a rise of 29.7%. 14.6% of businesses sold over the Internet in 2005 (12% in 2004) while 56.3% made purchases over the Internet in 2005 (50.3% in 2004). Internet purchases by businesses rose 50.4%, from £48.4 billion in 2004 to £72.8 billion in 2005. 69.8% of businesses had a website in 2005, compared to 66.9% of businesses in 2004. Office for National Statistics, e-Commerce survey , October 2006 (www.statistics.gov.uk)

The value of Internet sales by businesses rose to £103.3 billion in 2005, an increase of 56% on the 2004 figure of £66.2 billion.

The value of Internet sales to households rose to £21.4 billion in 2005 from £16.5 billion in 2004, a rise of 29.7%.

14.6% of businesses sold over the Internet in 2005 (12% in 2004) while 56.3% made purchases over the Internet in 2005 (50.3% in 2004).

Internet purchases by businesses rose 50.4%, from £48.4 billion in 2004 to £72.8 billion in 2005.

69.8% of businesses had a website in 2005, compared to 66.9% of businesses in 2004.

Marketing Challenge The key marketing challenge for the future is to establish a true, meaningful, and lasting connection with the customer and perspective customer. (Pamela Danziger, Why People Buy Things They Don’t Need , 2004) http://www.whypeoplebuy.com/ E-Marketing shows a great potential to assist with overcoming this challenge

The key marketing challenge for the future is to establish a true, meaningful, and lasting connection with the customer and perspective customer. (Pamela Danziger, Why People Buy Things They Don’t Need , 2004)

e -Marketing Definition “ Achieving marketing objectives through applying digital technologies.” (Dave Chaffey, www.davechaffey.com)

“ Achieving marketing objectives through applying digital technologies.” (Dave Chaffey, www.davechaffey.com)

Components Message (email, search result, banner, referral, content placement, etc.) Message delivery and analytics tool Web-site including landing page Shopping cart or subscription form Web analytics tool Leads Management Survey Management

Message (email, search result, banner, referral, content placement, etc.)

Message delivery and analytics tool

Web-site including landing page

Shopping cart or subscription form

Web analytics tool

Leads Management

Survey Management

General Schema

General Schema

General Schema

General Schema

General Schema

General Schema

Stages of Customer Acquisition

Stages of Customer Acquisition Exposed to Message

Stages of Customer Acquisition Exposed to Message Noticed Message

Stages of Customer Acquisition Exposed to Message Noticed Message Interacted with Message

Stages of Customer Acquisition Exposed to Message Noticed Message Interacted with Message Visited Web Site

Stages of Customer Acquisition Exposed to Message Noticed Message Interacted with Message Visited Web Site Started Conversion

Stages of Customer Acquisition Exposed to Message Noticed Message Interacted with Message Visited Web Site Started Conversion Customers

Pros and Cons of E-Marketing Pros: Effective if executed right Inexpensive Traceable Minor tweaks can lead to great gains Cons: May hurt if not properly used Requires involvement of decision makers Too much data Too many tools available Never ends

Pros:

Effective if executed right

Inexpensive

Traceable

Minor tweaks can lead to great gains

Cons:

May hurt if not properly used

Requires involvement of decision makers

Too much data

Too many tools available

Never ends

How e- Marketing Class Helps Practical Knowledge to grow your business Classes that available online on-demand Access to a live instructor 100% guarantee Certificate after successful test Guiding resources (carefully selected to not overwhelm you)

Practical Knowledge to grow your business

Classes that available online on-demand

Access to a live instructor

100% guarantee

Certificate after successful test

Guiding resources (carefully selected to not overwhelm you)

How e- Marketing Class Helps Practical Knowledge to grow your business Classes that available online on-demand Access to a live instructor 100% guarantee Certificate after successful test Guiding resources (carefully selected to not overwhelm you)

Practical Knowledge to grow your business

Classes that available online on-demand

Access to a live instructor

100% guarantee

Certificate after successful test

Guiding resources (carefully selected to not overwhelm you)