Introduction to e marketing


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Introduction to e marketing

  2. 2. Introduction to E-MarketingE-Marketing is also known as Internet marketing & it is a component of electronic commerce. E-Marketing caninclude information management, public relations, customer service, and sales. Electronic commerce and E-Marketing have become popular as Internet access is becoming more widely available and used. Well over onethird of consumers who have Internet access in their homes report using the Internet to make purchases.1My research proposal is on E-Marketing and its practical implementation of it in which I will try to find out whythe net era needs more innovation and how to get people attracted towards the net advertising.For this I have selected and done research work on the net and finding solutions to the problem and forfuture how it can be overcome. My research is totally based on pure research that is basic research.In my research design I am trying to explain the study, which I use in my problem area of how to get peopleattracted towards E-Marketing and the future of E-Marketing.Check Out Some E-Commerce Ready WebsitesInternational Websiteshttp://www.tigerdirect.comhttp://www.deals2buys.comhttp://www.ebuyer.comhttp://www.ebay.comhttp://www.bestbuyer.comLocal Websiteshttp://www.flipcart.comhttp://www.homeshop18.comhttp://www.naaptol.comhttp://www.yebhi.comhttp://www.futurebazaar.com1
  3. 3. Objective: Strategies to develop E-MarketingProblem statement: Why people are not attracted towards E-Marketing. E-Marketing Future. Utilization of Resources. Misuse.Reasons: Wastage of time in the peoples mind. Wrong facts and Quality. Late Delivery Time. False Deductions. Fewer features in the product. Sometimes there is not proper feed back to the buyer and the amount has been deducted from his account. Fear of Hackers on the net.LITERATURE REVIEW: It illustrates the main objective of E-marking which is creating the exchanges that satisfy individualand organizational needs. Moreover it is the official definition for E-marketing adopted by the E-MarketingAssociation. Lots of young people like to buy the things on the Internet. Thus, it product a name calledInternet Marketing that it also referred to as I-marketing, online-marketing or e-marketing is the marketingof products or services over the Internet.2 Firstly, traditional marketing is much more expensive than E-marketing. That is why most of youngpeople like to buy the purchase on the Internet. With E- marketing, they can have direct communication withthousands upon thousands of customers and prospects world-wide from their desktop. It is very convenientpeople to select purchases. However, if they choose traditional way that will waste long time to go eachshops. Sometimes, people want buy expensive purchases, it better to choose traditional market as they cantouch and try the purchases. New media turn our life. E-marketing changes our habit and also brings a newway to sell the purchases. At the same time, it creates lots of jobs and decreases the rate of unemployed andpromotes the development of small companies. Nowadays, more and more people use blog, video, digitalpicture to record their life. New media have become a very important in our life3. A marketing campaign that is built on strategy and a deep knowledge of an audience, whilst firmlykeeping the marketing objectives in mind, can be extremely powerful. An marketing campaign thateffectively uses the internet as a platform, a jumping off point to create value and relationships, and a meansto speak specifically to marketers targets and create two-way value, is one that can succeed beyond manymarketers wildest expectations.42
  4. 4. VARIABLES Purpose Target audience Survey type and how respondents are recruited Number of Responses Survey FrequencySurvey Purpose: - A survey should have clear objectives; there must be a reason why they want to do it.There could be more than one research objective in a survey, but they must be clearly stated, easilyunderstood, and consistent. From the objective flows everything else: the type of survey needed, the targetaudience, and so on.The Target Audience: - The objective should make it clear who they want to survey. They probably dontwant to invest time and effort understanding everything about everybody who visits their site. Their primaryinterest will be about learning the right information about the visitor types that are of the most interest tothem, such as customers and subscribers.Survey Type: - Having determined the surveys objectives and audience, you can better choose the type ofsurvey that will meet your needs. There are two main types of online surveys: pop-ups and site-based.A pop-up survey (as the name implies) pops up in a window on your site. Generally, it must be short andeasy to answer. A site-based survey is potentially more extensive and people are directed to a separate partof the site or another site altogether. Here are some key differences between the two types:Number of Responses: - Another key consideration is the number of completed responses you need. Thiscan vary enormously with your type of work and the surveys target audience. For consumer analysis, youdideally need about 400 respondents to do any meaningful analysis.Survey Frequency: - The final consideration is how often you will run the survey. Many surveys are runonly once to get some insight into a particular issue, such as the effects of a new site design. But somesurveys, such as a customer satisfaction monitor, run more than once or continually.5Hypothesis Mass Communication Equals Better Marketing because it gives the chance for the people to look for what they are demanding. E-Marketing Today with the concept of globalization is expanding businesses through effective techniques. Search Engine Optimization relevant information should be given on the net for products to satisfy customers and potential users. Search Engine marketing could give marketers access to large number of consumers.6 Search for Marketing Perfection such tools are to be designed which represented the true picture and association with customer objectives. Textual Advertising should be compact and precise because too much information is difficult to handle so graphical representation is essential. Directories & Search Engines should be on the target of providing accurate information to the required tasks. Advertising causes costs because costs is an essential feature & should be look after before the launch of anything. Potential for deception according to understanding of others representation must be designed according to their intellectual level.75
  5. 5. The Internet has emerged as an important medium for advertising, direct marketing, communicationand electronic commerce. Rapid expansion of the Internet user base and the unique advantages of InternetAdvertising have spurred businesses to devote larger portions of the marketing budgets to E-Marketing.8Advertising on the Web is fundamentally different from advertising on other media. The ability to target andinteract with their customers on the web brings an entirely new edge to marketing. It is an attractive andinexpensive advertising medium. Their company services or product is advertised, globally, 24 hours a day,7 days a week, even on holidays and weekends. Internet Advertising is multi-layered. They can includephotographs, maps, list, financial information and graphs, brand advertising, as well as other productinformation.Electronic Advertising can be updated regularly. Their customers can make contact with they directly andinteractively. In India the area of E-Marketing is not developed yet because there are not many organizations,which are operating on the net. Managers still believe on the manual work but due to the investments inIndia it is now emerging towards Internet and is starting to think about the advertising and promotion on thenet because the people living in India are now addicted towards net and have a much time for surfing. Some new firms in the Market are adopting strategies that are good for them as well as for itscustomers because they are totally customer-oriented and are focusing on Net Advertising that saves timefor the Managers to think and get results. As we know that the net users of India have a great mind of Internet but still they think negative. Iam talking about Hackers, the individual, group or teams which work for their own benefits and causetroubles to others. These try to find the password of the net users having master card and then shop withthose cards illegally. If they are planning on using the Internet to sell their own products on-line, there is no need to do all of theselling them self. Just like the major on-line retailers have created affiliate programs to increase their sales,there is no reason that they cannot do the same with their products. Since they only need to pay theiraffiliates when they generate sales, there are some real advantages to pursuing this course.To create and affiliate network they must first determine how much money they can afford to give away oneach sale. The more popular affiliate programs have thousands of web sites that are members and generatetremendous revenue. The more they are willing to pay their affiliates for each transaction, the more websites they will be able to ultimately attract to their affiliate program.The key to being able to compete for market share in any retail venture they may operate on the Internet isthe ability to complete the sale on the spot. If they dont, someone else will. Almost all sales on the web arecompleted using secure, on-line, credit card transactions. This is the preferred method of payment for bothbuyers and sellers as the process is entirely automated and can be completed in less than two minutes.97
  6. 6. History of e marketingInternet Marketing today has become an integral part of people’s lives. When internet was first introducednot a single business house recognized the huge potential it had in store as a marketing tool. As early as1993 it was just a tool used for emailing & data transfer. The best of the business units had declared it unfitfor marketing purposes.Then in 1995 Netscape the ISP went public and bought the online world into prominence by exploring itscommercial potential. The wide reach, cost effectiveness, capabilities to measure the spending and easyaccessibility made internet as the most feasible marketing tool.The flood-gates opened after that:Spending on Internet advertising in 1996 totaled $301 million in the U.S. While significant compared to thezero dollars spent in 1994, the figure paled in comparison to the $175 billion spent on traditional advertisingas a whole that year. Online advertising grew to an industry worth nearly $1 billion in 1997.In India, as reported by PWC, advertising industry recorded a growth of 22% over 2006 and thus contributedan estimated Rs. 196 billion in 2007 as compared with Rs. 161 billion in 2006. In the years 2004-2007, theadvertising industry recorded a cumulative growth of 20% on an overall basis.Though different segments of the industry grew at different rates, the highest growth was recorded by thesmallest segment in the industry- online advertising. This segment grew by 69% from the previous year,albeit from a low base of Rs. 1.6 billion in 2006 to Rs. 2.7 billion in 2007. Its share in the overall advertisingpie grew to 1.4% in 2007, up from 1.0% in 2006. In the last four years 2004-2007, the segment recorded acumulative growth of 65% on an overall basis.As broadband penetration increase in the Indian homes and also the mobile devices become more internetsfriendly, web/wap publishing companies would develop more content on the Internet. This would makeonline advertising more relevant, more creative and more informative.10Merits and DemeritsMerits: Reduction in costs through automation and use of electronic media Faster response to both marketers and the end user 11 Increased ability to measure and collect data Opens the possibility to a market of one through personalization Extremely low risk Increased interactivity Increased exposure of products and services Boundless universal accessibility12Demerits: Security, privacy issues Poor reach and lack of Intrusiveness Measurement problems. Audience characteristics. Potential for deception. Costs. Limited production quality. Dependability on technology Maintenance costs due to a constantly evolving environment10
  7. 7. Higher transparency of pricing and increased price competition Worldwide competition through globalization.13Growth and DevelopmentIn the early days, when static content was used over the internet, any hyperlink from one site to anothercould be considered as an advertisement for the other site. Formally, Internet advertising began in 1994,when the first commercially available web browser, Netscape Navigator 1.0, was released and the first everbanner advertisements were sold. Since then, the E-Marketing industry has faced many obstacles in securinga strong hold in today’s marketplace. The boost in advertising spending was led by a growing number ofcorporation’s explosive growth of advertising impressions. Search engine technologies created the highestlevel of buzz.14Online advertisers are continuing to demand more powerful advertising models that better capture andsustain user attention, like the emergence of real digital audio/visual approaching the standard-settingslickness of television commercials. With online demographics becoming more diverse and targetingbecoming more precise, advertiser spending on the Web clearly moved out of its experimental stage duringthe past year.NOTE:U.S. E-Marketing spending is currently around $12 billion but expected to go over $35 billion by 2006-2007.A BUSINESS LIMITATIONIts nice when they can open a business and attract new customers the next day. Its great when a web siteguarantees their profitability. But none of those things happen without good planning. Without a good plan,and the proper execution, businesses die very quickly.3-RULES TO ATTRACT NEW CUSTOMERS: Let people know they exist: Advertise herself if people dont know where they are and what they do, they cant buy from they.Advertising greatly increases their chances of success. Dont scare the customer: Make the customer feel comfortable with their product or service. Provide an environment that theywill feel safe in. Make them feel good about spending their money. Dont scare the customer. Look the part: Businessmen wear suits. Policemen carry guns. They should effectively display their ability to attractnew customers. They can do the same when they look the part.Advertising CostGetting their message out costs money, they have to spend money to make money. But if they plan toadvertise their business online, it also pays to know their options before they spend money to make moneyonline. This is a basic fact of business. E-Marketing is the one tool that they can use to attract new customerswith a tight budget. Targeted e-mail campaigns, banner advertising and newsletters can all be highlyeffective ways to attract new customers. The key however is not in using them, but in using them correctly.Give people reasons to buy online:Good advertising techniques are useless without an effective message. An effective message gives peoplereasons to spend their money with their business. An effective message attracts new customers.Strategies to Enhance E-Marketing13
  8. 8. To help him start selling online, and to help him obtain the most from their advertising dollar, I researchedsome of the more popular ways to advertise by soliciting the advice of advertising experts. Heres what wefound out about the following advertising options.Online PublicationsOne way to do this is to advertise their business in an online publication, such as a newspaper or magazine,just as they would in a paper publication.Directories & Search EnginesIf they own a gas station, motel, or restaurant near an interstate, they would probably advertise on a billboardalong the highway to alert motorists that their business is ahead and ready to take care of their needs. In thesame way, if they plan to advertise on the information superhighway, an obvious place to do so is at high-trafficareas where theyll have the largest possible audience.Banners AdsIf they spend much time on the Web, theyve probably seen hundreds of banner ads. They come in differentsizes, but generally are rectangular- or button-shaped graphics with a few enticing words that invite the Webuser to "click here" for more information about a company or product. So popular are these ubiquitous adsthat Jupiter Communications reports that they currently comprise 80% of online ad placements.Web SitesRegarding Web sites, a small-business owner must answer two questions: should they have one, and if theydo, should they hire personnel to create and maintain it, or let an advertising agency or service bureau dothat?As we already mentioned, its not imperative that they have a Web site if they advertise on the Internet. Ifthey are interested in their product or services, many consumers will be satisfied reaching them over thephone. But if they choose to have a site, they must have the power to handle questions and orders that willcome to online.If they own a small business, its more likely theyll turn to an ad agency to help create their site. Anadvertising expert can help they decide which parts of the site need to be updated, and how frequently, andwhich can remain static. An agency also can write press releases, News articles, and new productannouncements that should appear on their site.Other Options Some businesses like to use micro sites to do special, one-time promotions that they dont wantto tie in to their main site. A micro site is a Web page used for a specific, limited purpose, such asannouncing a special event or offer. There are various ways available to host a micro site, whether it is doneby their business or by an advertising firm. Another option is simply to link their Web site to any number ofnational online malls. If they dont have an online store, they can set up one through a number of services. Ifthey want to take their business directly to their customers, try advertising with push technology. Using pushtechnology, programs such as PointCast deliver information automatically to a Web users hard drive, wherehe or she can call it up at his or her convenience. Another minor option is interstitials, or advertisements that"pop up" on a users screen. They appear between Web pages so they are not as intrusive as, say, a televisioncommercial.
  9. 9. Online advertising in Indian Scenario Currently finance sector is most dominating sector in online advertising and accounted about 40% oftotal online advertising in India The survey estimated that the value of Internet Advertising has been double to Rs 450 crore in2007,and will valued at Rs 2,250 crore by the end of 2010, and thus increasing 10 times from 2006. This means itwill overtake spends on radio, cinema and outdoor advertising in two years.The report adds that of the Rs 210 crore was spent on Internet Advertising in 2006, display advertisingcontributed Rs 117.6 crore, classified was Rs 50.4 crore and search was Rs 42 crore. It estimates classifiedadvertising to be the key driver of growth with a Rs 900 crore contribution (out of the total Rs 2,250 crore)by 2009, followed by search’s Rs 742.5 crore, and display advertising bringing in Rs 607.5 crore. This is by far the most optimistic estimate of online advertising in India made by any researchagency. The IAMAI estimated in 2006 that Internet Advertising would grow at 40 per cent and reach a valueof Rs 750 crore by 2010. The FICCI-PWC reported in March 2007 that puts the figure at Rs 950 crore.Internet penetration in India is estimated to have grown at an average of 60 per cent between 2000 and 2006. Yet, it is difficult to believe that online advertisers, a reluctant lot, will change their mind enough intwo years to multiply their spend by 10.15QUESTIONNAIREThis is a questionnaire as a part of an effort to gauge the E-Marketing in India. Your sincere andhonest cooperation is expected.Name: __________________________________Age: ___________________________________Sex: ___________________________________Qualification: ___________________________Occupation: _____________________________Address: ______________________________________________________________________Email: ________________________________1. How would you like to make a purchase, please give the ranking from 1(most favorable) to 5(least favorable)a) Directly from the shopb) Through mail-orderc) Through netd) Through phonee) Any other (specify)______________2. For how many hours on an average do you surf net in a week? _______3. With the falling Internet prices from RS. 40 an hour to RS. 5 an hour how many hours will you surf net in a week. ______15
  10. 10. 4. For what purposes do you surf net:a) E-mail/chatb) Entertainmentc) Getting informationd) Downloadinge) Buying thingsf) Any other (specify)5. Have you ever used Internet for purchasing? Yes No If No6. Are you planning to make purchase on net in future.? Yes No7. What kind of products would you like to buy on net? Please mention.a) _________________b) _________________c) _________________d) _________________e) _________________8. How often do you click on advertisement on sites?a) 0 to 10% of the time.b) 10 to 25% of the time.c) 25 to 50% of the time.d) 50 to 75% of the time.e) 75 to 100% of the time.9. Do you feel ads on net give more insights of product/service than other media? Yes No10. Do you receive mail from business sites? Yes No11. How often do you respond to it? Please mention the percentage. ______12. Please mention what factors motivate you or stop you from making purchase on net.a) Motivate you: i. Convenienceii. Secrecyiii. Wide range of choicesiv. Saving of time v. Any other (specify) _________________________b) Stop you: i. Securityii. Late deliveryiii. Wrong delivery
  11. 11. iv. Lack of actually feeling the product v. Any other (specify) _________________________Thanks for sharing your valuable time for filling of our questionnaire.References(Source: Worldata, 1. 2. 3. 4. 5. 6. 7.