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A01.1

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  • 1. 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.
  • 2. 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
  • 3. 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)
  • 4. 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?
  • 5. 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?
  • 6. 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)
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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)
  • 12. 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