E Marketing

Introduction to E Marketing; Meaning & Scope

Introduction
Marketing companies are concerned with
Efficient and Effective technology
Changes in the market due to technological innovations
Impact of technology on future changes
E Marketing is the use of information technology in the processes of
creating, communicating and delivering value to customers
managing customer relations
E Marketing is the fusion of IT with traditional marketing
Effects of E Marketing on a traditional marketing company
Increases efficiency and effectiveness of marketing
Transforms marketing strategies
Helps in identifying new business models
Adds to customer value and satisfaction
Increase company profits
Technology convergence
E Business
E Commerce
E Marketing
Internet
Its the global network of interconnected networks where web pages are
shared, where people send & receive data, and carry out online transactions.
Three technical roles
4. Content providers (info, entertainment, etc)
5. Users
6. Technology Infrastructure to move,

Types of Networks
Intranet : Use internet standards but restricted to only internal users of a
firm.
Extranet: Two or more proprietary networks that are joined together for
sharing information.
2 intranets = 1 extranet.

 Web: Its the portion of the internet that supports a graphical user interface
for

E Marketing is bigger than the Web

E Marketing technology uses many other software and hardware not

related to the web
Non-web internet communication like emails, efaxs, etc are effective
marketing tools
Internet delivers text, audio, video, etc., to many other devices not only to
computers
Offline electronic data collection devices( bar code readers, scanners

E Marketing is bigger than technology

Individuals: Access to unlimited information; Access to various forms of
entertainment; Connect with people; etc
Communities: Blogs; Social and Professional networking; and Forges
partnerships
Business: Digitalized, cross functional environment drastically increased
efficiency and profitability
Societies: More efficient markets, more

Evolution and future of E Marketing & its

relation to Internet
Evolution of E Marketing

1990s Dot-com gold rush

2000 to 2002 Dot-com burst (500 firms closed)
Adopted by all companies E-Marketing today

E Marketing Challenges;
Strategic Planning

Opportunities

Challenges

Low percentage of computer penetration

Internet connectivity
Low percentage of surfers entering into online transactions
Credit cards
Cyber security
Cyber crime
Loss of personal touch in shopping
Legal issues (Trade mark, Domain name, Copyright, Jurisdiction issues, etc.)
Mistaken purchases or auctions

Opportunities

&

Internationally more than 33% of surfers buy online

E Marketing reduces prices
Huge potential for growth (70% rural population)
E Intermediaries
Affordable computers and internet connectivity
Desire of the customers

E Strategic Planning

Strategic planning is the managerial process of developing and maintaining

a viable fit between the organizations objectives, skills and resources and its
changing market
opportunities Kotler
Incorporating digital technology into strategic planning is e strategic

Goals of a Strategy
Growth
Competitive position (Industry leader, Price leader, Cost leader, Quality
leader, etc.)
Geographic scope
Others like presence in number of industries, range of products, core
competencies to be developed, etc.

Important Rationale

Strategic justification
Operational justification
Technical justification
Financial justification

Competitive Advantage by using

New Entrants/Substitution : Reduced entry cost; New
sales channels; New service opportunities.
Suppliers & Traders: Cost reduction; Quick response;
Lock in

Buyers: New sales channels; Information; No

intermediaries
Competitive Rivalry: Cost leadership; Differentiation;
Focus

E Business
Metrics

Models

&

Performance

Business Models

Its a method by which the organization sustains itself in the long

term and includes its value proposition for partners and customers as
well as its revenue systems
It describes a set of business entities and interrelationships among
them. The model describes the sources of revenue
and potential benefits accruing to the involved business participants

E Business Models
Activity level E Business Models (increases efficiency, reduces costs &
low risk)

Online purchasing
Order processing
E mail
Content publisher
Business Intelligence
Online advertising
Online sales promotion
Pricing strategies

Business process level E Business Models [Increases a firms

effectiveness]
Customer relationship management
Knowledge management (reports, customers account info, product sales info,
etc.)
Supply chain management
Community building / Networking
Affiliate programs (link to anothers website)
Database marketing (collecting, analyzing, disseminating e-info about
customers, products, etc.)

 Enterprise resource planning (back office systems for order enquiry, purchasing,
invoicing, and inventory control)

Enterprise level E Business Models [Most business process are

fully
automated]

E commerce (direct selling, content sponsorship)

Portal
Online brokers
Manufacturers agents
Purchasing agents (buyers cooperative)
Virtual mall

Performance Metrics
These are measures designed to evaluate the effectiveness
and efficiency of an organizations operations or its strategic
effectiveness

The Balanced Scorecard

Focus of certain companies to measure performance was
either profits or growth or expanding market.
The Balanced Scorecard was developed to measures many
aspects of a firms achievements.

4 Perspectives in Balanced
Scorecard

Metrics for Customer Perspective Customer Loyalty, Lifetime value, Customer perception of
product value, Customer buying pattern, etc.
Metrics for Internal Business Perspectives- Quality of service,
Inventory levels, Supply chain management, Supplier
satisfaction, etc.

Metrics for Innovation and Learning Perspectives

Human resource development, product innovations, constant

innovation in marketing processes, improvements in CRM,

etc.

 Metrics for Financial Perspective

Potential sales forecast, estimate expenditure, give time
projections for breaking even, ROI, Net profit, etc.

Overview of E Marketing Plan, Creating an E

Marketing Plan
&
Seven step E Marketing Plan
E Marketing Plan
Its the process of identifying how to use IT to enhance revenues, increase market
share and to reduce costs
Its the process of identifying sustainable competitive advantage derived out of
digital technology
How to enhance efficiency and effectiveness by using digital technology in the
marketing planning process

Creating a E Marketing Plan

 Its a guiding, dynamic document that links the firms e-business strategies
with e-marketing strategies and lays out the implementation plan for
marketing management
Two types of e marketing plans
The Napkin Plan/Activity based Plan/Bottom-up Plan
The Venture Capitalist Plan

Seven Step E Marketing Plan

Strengths and Weaknesses Internal
Opportunities and Threats External
New products, markets, media, channels, etc.
Legal, technological, market related, etc.

Step II - E Marketing Strategic Planning

Market Opportunity analysis
Demand analysis: Market segmentation analysis to describe and
evaluate the
potential profitability, sustainability, accessibility and size of potential
segments. B2C & B2C
Supply analysis: Forecasts segment profitability and finds competitive
advantage to exploit the online market. Differentiation variables, positioning

Step III - Objectives

Main objectives
What is to be accomplished
How much
By when
Others
Increase market shares
Increase sales revenue
Reduced costs
Increased brand awareness
Better database
Better CRM
Improve Supply Chain Management

Step IV E Marketing Strategies

The Offer: Product strategies Existing products sold online or new
products offered to the customers
The Value: Pricing strategies Dynamic pricing and Online bidding
Distribution strategies Direct marketing and Agent E Business models
Marketing Communication strategies
Relationship Management strategies CRM software + customer behavior
=
comprehensive database

Step V Implementation
plan

Creation of the right marketing organization for implementation Staff,

Department structure,

Step 6 - Budget

Revenue forecast
Intangible benefits
Cost savings
E Marketing costs

Technology costs
Site design costs
Salaries
Other site related costs
Marketing communication costs
Mischellaneous

Step VII Evaluation Plan

Internet users characteristics and behavior &

E Marketing environment

Internet user characteristics

 Global character

Chinese is the fastest growing internet language

Fastest growth seen in Africa and in Middle East
Internet penetration is max in North America, more than 70%
Top 10 countries in the world account for more than 60% of users
Asia is just above Africa in internet

Characteristics & Behavior

In developing countries most of the internet users are educated and belong
to the richer groups
In developing countries internet access is generally in offices
In developed countries and in some developing countries internet addiction
has
become a problem
In developed countries more and more people are buying online
Trust in online payments is low

E Marketing Environment

Market differences
Market similarity
Credit cards and secure online payment system
Computers and Communication (in India around 1% own a computer)
Internet costs
Connection speed

Better web designs because of broad band

Electricity
Wireless internet access
The digital divide in developing countries
Government policies

Ethical and Legal Issues & Privacy Issues

Ethics and Law

 Ethics concern the values and practices of professionals who

have expert knowledge of a specific field and also the society as a
whole.
Law is generally for a broader spectrum of the society and made
by
an elected body of the citizens of a nation.

Characteristics of Ethics and

Ethical Code
As ancient as civilization
Focuses on differentiating between the right and the wrong
Examines responsibilities, rights and obligations of the people under study
Ethics study human interactions, political, legal and commercial issues
related to transactions
Scope is very wide

Certain ethics may contradict each other

Each specialized group have their own code of ethics
Helpful to communicate both internally as well as externally

Ethical & Legal Issues

Piracy
Problems with self regulation
Privacy