UNIVERSITY OF MAURITIUS

FACULTY OF LAW AND MANAGEMENT

SECOND SEMESTER DATE

EXAMINATIONS
WEDNESDAY
MSc E-BUSINESS
18TH MAY 2005
YEAR I

SERIES MODULE TIME

MAY 2005 STRATEGIC 9.30 – 12.30 HRS
E-MARKETING
[MGT 6085Y]

INSTRUCTIONS TO CANDIDATES
TIME ALLOWED: THREE (3) HOURS

NO. OF QUESTIONS SET: SEVEN (7)

NO. OF QUESTIONS TO BE ATTEMPTED: FIVE (5)

SECTION A: COMPULSORY

SECTION B: ANSWER ANY TWO (2) QUESTIONS

USE SEPARATE ANSWER BOOKS FOR EACH SECTION

 STRATEGIC E -MARKETING
[MGT 6185Y]

SECTION A (COMPULSORY)

CASE STUDY

Read this case study and answer the questions that follow.

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EasyJet offers a simple, no-frills service at rock bottom fares. Since the launch
in 1995, the focus has been on keeping the costs low and then sharing the
benefits with the customers. The Internet has been integral component to
EasyJet’s low-cost strategy. In addition, EasyJet is a ‘ticketless’ airline. The
founder says, “Your right to fly comes from the fact that your name is in the
computer – not from any document you hold. That’s the paradigm shift’.
Customers are requested to pay by credit cards after which they receive a six
digit character (booking reference number) which they present at boarding
time. EasyJet runs its own call centre and reservation system and does not
have to pay to participate in the reservation systems operated by the full-cost
airlines.

For similar reasons, EasyJet does not pay commission to travel agents; it relies
on direct sales made by telephone booking clerks. Pursuing the same logic,
EasyJet emphasizes online booking by customers visiting the EasyJet’s
Internet site – the web address is painted on the side of the aircraft in giant
orange characters. In fact, it offered discounted fares to customers who
bought on the internet. Since introducing online booking in April 1998 when
it sold its first seat online, in 1999 online sales soared to 60% accounting for 1
million customers. By 2003, 90% of the bookings were made online. The trend
has continued.

EasyJet spends 10% of its revenues on marketing communications – using

both offline and online strategies. Part of the online strategies include cross-
marketing agreements with other EasyGroup companies such as
EasyEverything café, EasyRentacar and so on. All EasyJet promotions are
exclusive to the internet. EasyJet used the Internet to innovate and do what
was previously possible only for the Big players. It was the first low cost
airline to launch a flight arrivals information services on its website. EasyJet
was getting noticed as evident from the string of awards it received for its
eMarketing communications. In 1999, it won the Best Interactive Campaign.
In 2001, the Sunday Times chose www.easyjet.com as the Best Online travel
site. The Guardian and The Observer also bestowed similar recognitions.
EasyJet has kept the Internet as the enabling platform for its unique business
model. While the sustainability can be debated, as of now, EasyJet is the
Web’s favourite airline.

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Question 1

What role has the Internet played in the marketing strategy of EasyJet?
Comment specifically on EasyJet’s marketing communications.

Question 2

Evaluate EasyGroup’s expansion strategy. Do the extensions like car rentals,

internet cafés and eBanking make sense? What criteria are you using to make
the judgment?

Question 3

Comment on the customer interface (7 C’s framework) of EasyJet, based on

the opening and home pages of www.easyjet.com

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 SECTION B

ANSWER ANY TWO (2) QUESTIONS

Question 4

Discuss the purpose of banner advertising and the outcomes that a marketing
manager may be looking to achieve through a banner advertising campaign.
(20 marks)

Question 5

“The marketing mix developed as part of an annual planning is no longer a

valid concept in the internet era.” Discuss.
(20 Marks)

Question 6

(a) Explain how the internet impact on organizations options for core and
extended product.
(10 marks)

(b) Discuss the different options for changing brand identity online.
(10 marks)
[Total Marks: 20]

Question 7

(a) Discuss the several ways to measure web audience success. Illustrate
your answer.
(10 marks)

(b) Write short notes on the following:

?? Viral marketing
?? Permission marketing
?? Affiliate progra mme
(10 marks)
[Total Marks: 20]

[END OF QUESTION PAPER]

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