E – COMMERCE MARKETING

AND ADVERTISING
• In business, Internet and mobile platform technologies
greatly influence marketing and marketing communications
• As a communications tool, the Internet affords marketers
new ways of contacting millions of potential customers at
costs far lower than traditional media.

The first principle of marketing and sales is “know thy

customer.”
Who is online, who shops online and why, and what
do they buy?
 THE ONLINE CONSUMER PROFILE
• Intensity and Scope of Usage
• Demographics and Access
• Type of Internet Connection: Broadband and Mobile
Impacts
• Community Effects: Social Contagion in Social Networks
CONSUMER BEHAVIOR MODELS
THE ONLINE PURCHASING DECISION
Clickstream behavior refers to
the transaction log that
consumers establish as they
move about the Web, from
search engine to a variety of
sites, then to a single site, then
to a single page, and then,
finally, to a decision to
purchase.

These precious moments are

similar to “point-of-purchase”
moments in traditional retail.
 ONLINE MARKETING AND ADVERTISING
STRATEGIES AND TOOLS
The objective of online marketing—as in all marketing—is to build customer
relationships so that the firm can achieve above-average returns (both by offering
superior products or services and by communicating the brand’s features to the
consumer).

But online marketing is also very different from ordinary marketing because the nature
of the medium and its capabilities are so different from anything that has come before.

Compared to traditional print and television marketing, online marketing can be

more personalized, participatory, peer-to-peer, and communal.
 ONLINE
MARKETING AND
ADVERTISING
STRATEGIES AND
TOOLS
 ONLINE ADVERTISING
• a paid message on a website, app, or other digital medium
 ONLINE ADVERTISING

• Search Engine Marketing and Advertising

• the use of search engines to build and sustain brands
Ex: Pay per click, keyword ads, Adsense
• Display Ad Marketing
• include banner ads, rich media ads, video ads,
sponsorships, native advertising, and content marketing
• E-mail Marketing
• Affiliate Marketing
• Lead Generation Marketing
 Advertising Networks
connect online marketers with publishers by displaying ads to
consumers based on detailed customer information
• Advertising networks begin with a consumer requesting a page from a
member of the advertising network
• A connection is established with the third-party ad server
• The ad server identifies the user by reading a tracking file on the user’s
hard drive and checks its user profile database for the user’s profile
• The ad server selects an appropriate banner ad based on the user’s
previous purchases, interests, demographics, or other data in the
profile
• Whenever the user later goes online and visits any of the network
member sites, the ad server recognizes the user and serves up the
same or different ads regardless of the site content. The advertising
network follows users from site to site through the use of tracking files
Advertising Networks
connect online marketers
with publishers by
displaying ads to
consumers based on
detailed customer
information
 OTHER ONLINE MARKETING
STRATEGIES
Customer Retention Strategies
• One-to-one marketing (personalization) segments the market on the basis of
individuals (not groups) based on a precise and timely understanding of their
needs, targeting specific marketing messages to these individuals, and then
positioning the product vis-à-vis competitors to be truly unique.
• Behavioral targeting involves using the online and offline behavior of
consumers to adjust the advertising messages delivered to them online,
often in real time (milliseconds from the consumer’s first URL entry), also
called interest-based advertising (IBA).
• Retargeting (sometimes also referred to as remarketing) involves showing
the same or similar ads to individuals across multiple websites or apps.
 OTHER ONLINE MARKETING
STRATEGIES
Pricing Strategies
• Law of One price with complete price transparency in a perfect information
marketplace, there will be one world price for every product
• Price discrimination, selling products to different people and groups based
on their willingness to pay
• “Free” and “freemium” cross-subsidy online marketing strategy where users
are offered a basic service for free, but must pay for premium or add-on
services