A01.1

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A01.1

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

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