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Ms. Anubha Rastog
Astt. Prof, Vidya School Of Busine
2017-1
E-marketing
• Explores the new tools offered by the world of the internet
• Explores the realm of social media
• Investigates the mindset of the individual who ventures online
• Scrutinizes the characteristics of the virtual medium which can be of value to the end
consumer.
• Identifies how companies can leverage the online world as a media vehicle, for Brand
Communication and proliferation, building brand and stakeholder relationships and
Customer Relationship Management.
• Understands the consumer online experience
• Examines Traffic Building activities for marketers.
• E-marketing is the use of Information Technology in the processes of creating,
communicating, and delivering value to the customers, and for managing customer
relationships in ways that benefit the organization and its stakeholders.
• E-marketing is the result of Information Technology applied to traditional marketing.
Anubha Rastogi | VSB
The Seven-Stage Cycle of Internet Marketing
Anubha Rastogi | VSB
The Online Marketing Mix
Anubha Rastogi | VSB
Anubha Rastogi | VSB
Online mix options
• Product
• Extend range
• Narrow range
• Online-only products
• Develop new brand
• Migrate existing brand
• Partner with online brand
• Price
• Differential pricing:
• Reduce online prices due to price
transparency and competition
• Maintain price to avoid cannibalisation of
offline sales
• New pricing options (software, music):
• Rental
• Pay per use
• Reverse auctions (B2B)
• Dynamic pricing (concert tickets)
• Place = avoiding channel conflicts
• Disintermediation – sell direct
• Reintermediation – partner with new
intermediaries
• Countermediation:
• Form new intermediaries
• Partner with existing intermediaries
• Distance from intermediaries
• Promotion
• Selective use of new online tools for
different stages of the buying process
and customer lifecycle
• Online only campaigns
• Integrated campaigns – incorporating
online tools into communications mix
Anubha Rastogi | VSB
• Service
• People
• Automate – use web self-service, offer customer choice
• Process
• Change process for service – contact strategies
• Physical evidence
• Site design – differentiate or support brand
• Fulfilment quality
Characteristics of an Online Offer
Anubha Rastogi | VSB
An online offer is typically characterized by the following features:
• Renders high levels of convenience for the consumer
• Offers good customer service
• Saves consumer time and money
• Provides an enjoyable shopping experience
• Merchandises in the context of product offerings and product information
• Provides site design and transaction security
Anubha Rastogi | VSB
The Potential of Digital Marketing
Anubha Rastogi | VSB
Centaur
aaaaaaa
Traditional
Consumer Cyber Consumer
Centaur
A Hybrid Consumer: A combination of
Traditional and Cyber, Rational and
Emotional, and Wired and Physical.
• Digitally Driven Segment
• Calculated Shoppers
• Basic Digital Consumers
• Retail Scouts
• Brand Scouts
• Eternal Shoppers
The Online Consumer
Marketing challenges brought by the Centaur
1. Customerization
2. Virtual Communities
3. Channel Options
4. Competitive Value Equation
5. Choice Tools
Anubha Rastogi | VSB
Who is the Centaur?
• McKinsey Report
1. Connectors: New users; more offline purchase
2. Samplers: Light users
3. Simplifiers: Efficiency seekers
4. Routiners: Go online for information but not primarily interested in shopping
5. Surfers: Heavy users; spend lots of time online; Searching multiple domains
6. Bargainers: Online price comparison; Shop for the best buy
7. Funsters: Looking for information in entertainment-oriented domains
Myths of the Traditional Consumer
1. Only the elite want customerization
2. Price is the bait set by the seller
3. The consumer is on the couch
4. Location, location, location
5. Consumers are islands
6. Customers will accept what you tell them
Myths Of The Cyber Consumer
1. People don’t want to be troubled with shopping
2. Efficiency is all that matters
3. Consumers want to get the best price
4. Consumers are either online or offline
5. Ease of visiting stores will lead to more purchasing
6. The Internet is inherently fascinating and attractive
Anubha Rastogi | VSB
Consumer Segmentation in the Virtual World
The following are two different ways of consumer segmentation in the virtual world:
• Consumer segmentation using a combination of the three dimensions of consumer
need recognition, website characteristics search, and consumer pre-purchase
Judgment
• Consumer segmentation using a combination of the two dimensions of consumer
traits and online shopping issues faced by consumers
Consumer Segmentation: 1st Method
Anubha Rastogi | VSB
Consumer Segment Profiles
Anubha Rastogi | VSB
Consumer traits:
• Willingness to take risk
• seeking joy in surfing the Internet
• saving time while shopping online, and
• feeling socially aware while surfing the Internet
Consumer Segmentation: 2nd Method
Consumers and online shopping issues:
• Product risk issues
• Interactive risk issues
• Transaction security issues
• Privacy issues
Consumer Segments Profiles
Targeting: The Internet is well suited for the following two targeting strategies:
• Niche Marketing
• Micro Marketing Anubha Rastogi | VSB
The Online Value
• Fixed Pricing
• Price Leadership
• Promotional Pricing
• Dynamic Pricing
Factors affecting costs in the online domain are:
• Online Customer Service, which can be expensive.
• High Distribution costs for specific customers as products need to be shipped separately.
• Affiliate programs tend to be expensive as they involve rewarding the referring parties.
• Maintenance and development of websites involve costs.
• The internet spells low order processing fee due to self service
• The internet world stands for Just-in-time inventories and low overheads.
• Costs of distribution of certain digital products like music which is downloadable online
are very low.
• Animated shop bots offer online customer service at low cost by replacing service
personnel.
Anubha Rastogi | VSB
E-Promotion
Goals of Online Marketing Promotion include:
• Driving Prospects to the website
• Increasing website registrations
• Increasing online transactions
• Building consumer engagement and involvement.
Website Characteristics That Affect Online Purchase Decision
Anubha Rastogi | VSB
Web Characteristics and Cultural Implications
Anubha Rastogi | VSB
The Consumer Decision Process and Supporting Communications
Anubha Rastogi | VSB
A General Model of Consumer Behavior
Anubha Rastogi | VSB
A Model of Online Consumer Behavior
Anubha Rastogi | VSB
E-Marketing and CRM
Anubha Rastogi | VSB
CRM and the Online Domain
• CRM software packages aid the interaction between the customer and the company, enabling the company
to co-ordinate and integrate all of the communication efforts so that the customer is presented with a
unified message and image.
• CRM coordinates touch points around a common view of the customer. As the business gets larger and
number of customer relationships to be managed increased exponentially, it calls for integration of
different business departments to collaborate the customer information to provide a unified view of
customer interaction to serve the customers better - In the context of the online world, this integration is
required across all the elements of the virtual medium, where the company has an online presence viz.
Websites, blogs, online communities etc.
• Customer Relationship Management processes shape the interactions between a company and its
customers with the goal of maximizing current and lifetime value of customers for the company, as well as
maximizing satisfaction for customers.
CRM as a Business Strategy
Anubha Rastogi | VSB
The Foundation of CRM
Customer Roles
CRM Strategic Capabilities
Anubha Rastogi | VSB
CRM Processes
Anubha Rastogi | VSB
Types of Customers in the Customer Life Cycle
CRM Bonds
Anubha Rastogi | VSB
E-CRM meets E-marketing
Anubha Rastogi | VSB
CRM Applications
Anubha Rastogi | VSB
The Collaborative Web and the Enterprise
Anubha Rastogi | VSB
Why More People Don’t Shop Online
• Major online buying concerns:
• Security
• Privacy
• Shipping costs
• Return policy
• Product availability
• Shipping issues/delays
Internet Marketing Challenges in India
• Governance Law and Regulation
• Cultural Issues
• Lack of technical infrastructure
• Marketing Philosophies & Channels
• Online Shopping Worries
• Fear Factor
• Unreliable delivery Mechanism
• Credit Card fraud and usage
Anubha Rastogi | VSB

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E-Marketing and CRM in digital world.

  • 1. Ms. Anubha Rastog Astt. Prof, Vidya School Of Busine 2017-1
  • 2. E-marketing • Explores the new tools offered by the world of the internet • Explores the realm of social media • Investigates the mindset of the individual who ventures online • Scrutinizes the characteristics of the virtual medium which can be of value to the end consumer. • Identifies how companies can leverage the online world as a media vehicle, for Brand Communication and proliferation, building brand and stakeholder relationships and Customer Relationship Management. • Understands the consumer online experience • Examines Traffic Building activities for marketers. • E-marketing is the use of Information Technology in the processes of creating, communicating, and delivering value to the customers, and for managing customer relationships in ways that benefit the organization and its stakeholders. • E-marketing is the result of Information Technology applied to traditional marketing. Anubha Rastogi | VSB
  • 3. The Seven-Stage Cycle of Internet Marketing Anubha Rastogi | VSB
  • 4. The Online Marketing Mix Anubha Rastogi | VSB
  • 6. Online mix options • Product • Extend range • Narrow range • Online-only products • Develop new brand • Migrate existing brand • Partner with online brand • Price • Differential pricing: • Reduce online prices due to price transparency and competition • Maintain price to avoid cannibalisation of offline sales • New pricing options (software, music): • Rental • Pay per use • Reverse auctions (B2B) • Dynamic pricing (concert tickets) • Place = avoiding channel conflicts • Disintermediation – sell direct • Reintermediation – partner with new intermediaries • Countermediation: • Form new intermediaries • Partner with existing intermediaries • Distance from intermediaries • Promotion • Selective use of new online tools for different stages of the buying process and customer lifecycle • Online only campaigns • Integrated campaigns – incorporating online tools into communications mix Anubha Rastogi | VSB
  • 7. • Service • People • Automate – use web self-service, offer customer choice • Process • Change process for service – contact strategies • Physical evidence • Site design – differentiate or support brand • Fulfilment quality Characteristics of an Online Offer Anubha Rastogi | VSB An online offer is typically characterized by the following features: • Renders high levels of convenience for the consumer • Offers good customer service • Saves consumer time and money • Provides an enjoyable shopping experience • Merchandises in the context of product offerings and product information • Provides site design and transaction security
  • 9. The Potential of Digital Marketing Anubha Rastogi | VSB
  • 10. Centaur aaaaaaa Traditional Consumer Cyber Consumer Centaur A Hybrid Consumer: A combination of Traditional and Cyber, Rational and Emotional, and Wired and Physical. • Digitally Driven Segment • Calculated Shoppers • Basic Digital Consumers • Retail Scouts • Brand Scouts • Eternal Shoppers The Online Consumer Marketing challenges brought by the Centaur 1. Customerization 2. Virtual Communities 3. Channel Options 4. Competitive Value Equation 5. Choice Tools Anubha Rastogi | VSB
  • 11. Who is the Centaur? • McKinsey Report 1. Connectors: New users; more offline purchase 2. Samplers: Light users 3. Simplifiers: Efficiency seekers 4. Routiners: Go online for information but not primarily interested in shopping 5. Surfers: Heavy users; spend lots of time online; Searching multiple domains 6. Bargainers: Online price comparison; Shop for the best buy 7. Funsters: Looking for information in entertainment-oriented domains Myths of the Traditional Consumer 1. Only the elite want customerization 2. Price is the bait set by the seller 3. The consumer is on the couch 4. Location, location, location 5. Consumers are islands 6. Customers will accept what you tell them Myths Of The Cyber Consumer 1. People don’t want to be troubled with shopping 2. Efficiency is all that matters 3. Consumers want to get the best price 4. Consumers are either online or offline 5. Ease of visiting stores will lead to more purchasing 6. The Internet is inherently fascinating and attractive Anubha Rastogi | VSB
  • 12. Consumer Segmentation in the Virtual World The following are two different ways of consumer segmentation in the virtual world: • Consumer segmentation using a combination of the three dimensions of consumer need recognition, website characteristics search, and consumer pre-purchase Judgment • Consumer segmentation using a combination of the two dimensions of consumer traits and online shopping issues faced by consumers Consumer Segmentation: 1st Method Anubha Rastogi | VSB
  • 14. Consumer traits: • Willingness to take risk • seeking joy in surfing the Internet • saving time while shopping online, and • feeling socially aware while surfing the Internet Consumer Segmentation: 2nd Method Consumers and online shopping issues: • Product risk issues • Interactive risk issues • Transaction security issues • Privacy issues
  • 15. Consumer Segments Profiles Targeting: The Internet is well suited for the following two targeting strategies: • Niche Marketing • Micro Marketing Anubha Rastogi | VSB
  • 16. The Online Value • Fixed Pricing • Price Leadership • Promotional Pricing • Dynamic Pricing Factors affecting costs in the online domain are: • Online Customer Service, which can be expensive. • High Distribution costs for specific customers as products need to be shipped separately. • Affiliate programs tend to be expensive as they involve rewarding the referring parties. • Maintenance and development of websites involve costs. • The internet spells low order processing fee due to self service • The internet world stands for Just-in-time inventories and low overheads. • Costs of distribution of certain digital products like music which is downloadable online are very low. • Animated shop bots offer online customer service at low cost by replacing service personnel. Anubha Rastogi | VSB
  • 17. E-Promotion Goals of Online Marketing Promotion include: • Driving Prospects to the website • Increasing website registrations • Increasing online transactions • Building consumer engagement and involvement. Website Characteristics That Affect Online Purchase Decision Anubha Rastogi | VSB
  • 18. Web Characteristics and Cultural Implications Anubha Rastogi | VSB
  • 19. The Consumer Decision Process and Supporting Communications Anubha Rastogi | VSB
  • 20. A General Model of Consumer Behavior Anubha Rastogi | VSB
  • 21. A Model of Online Consumer Behavior Anubha Rastogi | VSB
  • 22. E-Marketing and CRM Anubha Rastogi | VSB
  • 23. CRM and the Online Domain • CRM software packages aid the interaction between the customer and the company, enabling the company to co-ordinate and integrate all of the communication efforts so that the customer is presented with a unified message and image. • CRM coordinates touch points around a common view of the customer. As the business gets larger and number of customer relationships to be managed increased exponentially, it calls for integration of different business departments to collaborate the customer information to provide a unified view of customer interaction to serve the customers better - In the context of the online world, this integration is required across all the elements of the virtual medium, where the company has an online presence viz. Websites, blogs, online communities etc. • Customer Relationship Management processes shape the interactions between a company and its customers with the goal of maximizing current and lifetime value of customers for the company, as well as maximizing satisfaction for customers. CRM as a Business Strategy Anubha Rastogi | VSB
  • 24. The Foundation of CRM Customer Roles CRM Strategic Capabilities Anubha Rastogi | VSB
  • 26. Types of Customers in the Customer Life Cycle CRM Bonds Anubha Rastogi | VSB
  • 29. The Collaborative Web and the Enterprise Anubha Rastogi | VSB
  • 30. Why More People Don’t Shop Online • Major online buying concerns: • Security • Privacy • Shipping costs • Return policy • Product availability • Shipping issues/delays Internet Marketing Challenges in India • Governance Law and Regulation • Cultural Issues • Lack of technical infrastructure • Marketing Philosophies & Channels • Online Shopping Worries • Fear Factor • Unreliable delivery Mechanism • Credit Card fraud and usage Anubha Rastogi | VSB