e-marketing Scenario Until recent times WHSmithLtd has been a very successful, traditional, high-street retailerin the UK. Since the advent of E-commerce the business has struggled. On the basis they need to modify there approach to move from ‘brick to click’ they have hired a research team to investigate how their competitors have gained so much market share.
AO1Recognise how eMarketing can benefit businesses & marketing Identify ONE of the company's competitors, some examples are listed below, and investigate how eMarketing has helped that organisation gain market share over the past 5 years. Competitors: Amazon.co.uk; Staples; Play.com; HMV; Tesco Focus on the 7Ps in your response
e-marketing mix Product Digital value Experiencing the brand Price Price transparency New pricing models Process Optimizing processes through the web Marketing mix Place Representation New distribution models Physical Evidence Online evidence integration Promotion Online vs offline mix Integration People Resourcing and training Contact strategies Source: Smith & Chaffey (2002: 34)
e-marketing mix Product A bundle of benefits (FAB’s) that satisfies the needs of organisations or consumers, for which they are prepared to pay The digital world offers all kinds of challenges and opportunities What business are you in and can it be delivered online? What benefits (added values) are delivered to your customers? Can these benefits be deliverable online? What other benefits do your customers want? (do you know?) Can these additional benefits be delivered online?
e-marketing mix Price Customer Expectations customer profiles price expectations (maximum, lowest, expected) product quality expectations What Profit Do we require? Gross and Net Your Costs what are our true costs? (direct, indirect, fixed, variable, step) what is our break-even point? Your Price Competitors who are they, what are their products and prices? what makes their products distinctive? What are they up to?
e-marketing mix Know your customers Why do customers buy your product? What benefits are they seeking? What is their spending power? what is their maximum price what their minimum price floor may be expectations of what they would have topay Segment your market, target the winners (the most profitable long-term)
e-marketing mix Pricing can be a problem when you set a price for the first time when you develop or acquire a new product when you introduce a regular product into a new market Basing your prices on competitors is dangerous try and differentiate your product if your prices are higher stress the benefits if your prices are lower promote this fact if you rely on lowest price someone will undercut you
e-marketing mix People A significant mix element: service quality is essential Need to decide on the balance between automated online customer service and traditional human service to provide service quality, while keeping costs under control
e-marketing mix Use of auto responders Email notifications (order received, update on order status, item in stock, order dispatched) Call backs FAQs (frequently asked questions) Online chat On-site search engines and site maps
e-marketing mix Physical Evidence Physical evidence reassures online customers (offline this means buildings, staff appearance, etc) Online customers look for reassuring cues and clues A well-designed, consistent web site Guarantees Refund policies Privacy policies
e-marketing mix Physical Evidence Security features Professional and trade body memberships Quality awards Customer reviews and endorsements Independent reviews and news items Offline evidence needs to managed as well (offline and online evidence is complimentary)
e-marketing mix Process Internal and external processes, transactions and communications All processes impact on customers (product and service quality) Online most important to continually review and revise processes Need to integrate back office systems and front office systems to provide efficient responses to customer orders and requests