E-MARKETING

Sell Any Thing, Any Where, Any

Way, Any Time, at Any Price
 E - Business

e – Business is not just a dot-com.

The dot-com magic has evaporated.
Investors abandoned dot-coms in droves?
StrategyWeek (www.strategyweek.com):
80% of e-commerce sites will fail by 2005.
Gartner Group (www.gartner.com)
95% to 98% of all dot-coms will fail over the next
24 months.
 E - Business
Bad thinking of using Internet : Brochure ware.
Creating a web site that is a mere reproduction
of existing print materials –or brochures.
Brochure ware = shovel – ware
Putting existing marketing materials onto web
pages with no regard to how it’s presented by
online consumer
The Internet is its own medium. E-business has to
learn how to use it.
 Who’s got the power
The power has gone to the buyer
Net gives buyers more choices or e-tailers to
choose from.
E-Tailer:
A company that has opened a storefront on the
Net.
What is critical: Access to the customer
How, where, when and what he/she buys
Internet Marketing Strategies must give tools to reach
the consumers whenever and wherever they buy.
 New Ethics
Disintermediation or Cutting out the Middleman
Disintermediation is used to describe the
“disintegration” or extinction of the middlemen in
the trading chain as we know it today, that is
distributors, wholesalers, and retailers.
Disintermediation puts the producer of goods or
services directly in touch with the customer.
The challenge to e-businesses today is to add value to
the consumer’s shopping experience by building better
and stronger customer relationships in order to win the
disintermediation game.
 The Attention Economy
What is valued in the New Economy is the consumer’s
attention.
Consumer attention is scarce because there is only so
much of it to give.
Challenge to e-businesses is how to capture and keep
consumer’s attention, a consumer who at the same
defines freedom as having not to pay attention when
they don’t want to.
Yahoo! Is a good example of keeping consumer’s
attention.
 Internet Beyond PCs
Access to Internet is not available only from a PC
We can use cell-phones, Palmtops, Interactive TV and
in the near future many other devices to access the
Internet.
Net Appliance is a wired or wireless device that is
specifically designed to connect to the Internet. They
could be used to retrieve email, surf the web or shop for
products and services.
There are > 200 million computers in the world today.
By 2002 this number will grow to 500 million.
 Internet Beyond PCs

Multiple Net Access Devices will grow Dramatically by

2003
1999 2001 2003

Net 14 Million 237 Million 755 Million

Appliances

Net 14 Million 240 Million 602 Million

Population

Devices Per 1.02 0.98 1.25

Surfer

Source International Data Corporation

 Internet Beyond PCs
Results
Many distribution channels
Need for different web site – approach for each
channel.
In the coming months and over the next few years,
more and more e-commerce will be conducted offsite
– that is off Web sites.
Marketing strategy must change, if it is focused on
only one channel of distribution.
 Principles of New Economy
Principle 1:
Matter Doesn’t Matter
It’s not the size that plays the important role.
Per pound, automobiles have less value than computers
and computers less value than software.
Value is in the information, services, knowledge and
entertainment it provides. In people, ideas, and strategic
relationships.
Principles of New Economy

Value Per Pound

Product Dollar Value Per Pound

Taurus $5.22

Jeep $6.59

iMac $31.47

PC $76.41

Laptop $396.23

Source: Ernst & Young Center for Business Innovation

 Principles of New Economy
Principle 2:
The Shrinkage of Space
The Good News:
Where your business is physically located is no
longer important.
The entire world is the market.
The Bad News:
Companies have to compete with others around
the world. Globalization is here.
 Principles of New Economy
Principle 3:
The Collapsing of Time
Customers expect
• Instant response,
• Instant service, and
• Instant satisfaction.
If they don’t get it, the ease of finding your competitor is
just a mouse click away.
Time is money, and if a company can save a consumer
time, that will quickly equate to money in their cash
registers.
 Principles of New Economy
Principle 4:
It’s People That Matter
•Intellectual capital is more valuable than cash.
•At Net time, learning faster than your competitor is the
only thing that will keep you ahead of the pack.
•People are employees and customers.
•“Knowledge worker” is a key component to the success
of New Economy companies.
•Customer is important part of the marketing equation.
•Not just as consumer of a product but also as an
evangelist of your business.
 Principles of New Economy
Principle 5:
Turning Customers into Salespeople
Internet connect everybody to everything,
So,
Every customer can be turned into a sales person and all
customers into a sales force
One way to do this is Viral Marketing
Any advertising that propagates itself the way
viruses do.
An example is Hotmail.
 Principles of New Economy
Principle 6:
Value Rises with Market Share
The greater the network of people who use a product,
the more valuable it is to the network and the more likely
it will become the standard in a particular market space.
After a product becomes a standard, its value grows
exponentially.
Use the rule “GIVE THEN TAKE”, in order to
become a dominant player
Examples: Netscape, ICQ
 Principles of New Economy
Principle 7:
Value Rises with Information
Internet creates a new type of middleman
The Infomediary
Infomediaries create digital value out of the bits and
bytes of information on the Net.
Their job is to take information on buyers, their needs,
preferences, criteria, and profiles, as well as information
about sellers such as inventories, products, services.
 Principles of New Economy
Principle 8:
Every Product Is Available Everywhere, All the Time
The impulse to buy and the purchase itself used to be
separated by place and time.
The Net changes that
Consumers will be given
An infinite number of purchasing choice,
Customized to their needs, and
With the ability to buy what they want the
moment they hear about it.
 Information in New Economy
Information is the engine that generates wealth in the
New Economy.
E-Commerce means selling products, services, and
information over the Net.
Every e-business not only can capture information at
each point of customer contact, but also provide it.
Information is important because having it you own the
customer.
Owning the customer means that a business has
developed a strong relationship with a customer.
Information in New Economy
The needed Information is called “The Customer
Buying Cycle”
Consists of five elements:
Need Identification – The buyer has to realize a
need
Product Brokering – Retrieving information to
help determine what to buy
Merchant Brokering – Finding the merchant
Negotiation and Purchase – Finalizing the
transaction
Product Service and Evaluation
 Information in New Economy
Ways to find Information or e-Scouting
• Through Industry Analysts that have moved to the Net
as
www.thestandard.com
www.jup.com
www.forrester.com
 Information in New Economy
Ways to find Information or e-Scouting
• Through Web sites that provides reports and results of
researches as
www.easidemographics.com
www.e-land.com
www.webcmo.com
www.cyberatlas.Internet.com
www.nua.ie
www.deepcanyon.com
www.hoovers.com
 Information in New Economy
Ways to find Information or e-Scouting
• Through Online Focus Groups, as
www.surveysite.com
www.sfionline.com
 Information in New Economy
Ways to find Information or e-Scouting
• Through Online Market Surveys organized by sites, as
www.vividence.com
www.activeresearch.com
www.opinionlab.com
www.insightexpress.com
New Economy – New Dangers
Doing business on the Internet is like opening your
kimono.
Just about everything an e-business does on the Net is
visible to one and all.
Parts that are not directly visible are vulnerable to security
breaches both from outside and inside the company
Threats and dangers are come in many forms:
credit card fraud
theft of intellectual property
irate consumers
deliberate attacks
New Economy – New Dangers
Credit Card Fraud
Every credit card holder has up to 120 days to dispute a
charge on his or her credit card statement.
If a cardholder sees a charge on his statement that he
doesn’t recognize or that he wants to refute, he just
contacts his credit card company and the charge is
reversed. The process is called chargeback.
If a chargeback will happen a hefty $25 will put on
merchant’s account plus the reversed charge.
New Economy – New Dangers
Credit Card Fraud
For merchant’s protection:
www.cybersource.com
www.nochargebacks.com
These are web sites that provide merchants access to a
database of credit card numbers that have charged back
transactions to mail order or Internet businesses.
New Economy – New Dangers
Intellectual Property
The most obvious:
Hackers breaking into computers systems to steal
credit card numbers and company secrets
The hidden danger
From the employees and the contracted workers
“Most losses come from disgruntled or dishonest insiders
using authorized access to do unauthorized things”.
Robert Steele, former CIA officer and CEO of Open Resource Solutions
New Economy – New Dangers
Consumer Comments
Prior to the Internet, consumers had a hard time finding
others who purchased products that they were considering.
Now, with the Internet, for good or bad,
Newsgroups, discussion lists, newsletters, chat
rooms, web sites have given consumers and
competitors the chance to talk about your company and
the goods and services your company offer.
Solution: Monitoring customer comments with a variety of
services such as eWatch (www.ewatch.com), MarkWatch
(www.markwatch.com), and WebClipping
(www.webclipping.com).
New Economy – New Dangers
The Threat of Screen Scrapers
What is?
Screen scraper is a software application that lets
users pull information from one Web site and
deposit that information onto another web site or
into a database, even if the two sites are not
connected, according to the wishes of the consumers.
Where is the problem?
When this data is scraped and reorganized your
company and brand can be lost in the process.
 Revision – Rules for Success
Rule #1 – Selling Anywhere
Anywhere Means technologically (on wired and portable
wireless devices) and geographically (selling anywhere in
the world).
With Internet this is a reality.
Your local market is the global market.
If you are not selling everywhere, you are selling nowhere.
 Revision – Rules for Success
Rule #1 – Selling Anywhere
Selling globally means that you have understand the
culture of the customer you are selling to.

You have to face the challenges of language, regulatory

challenges of import and export rules, taxation, social and
political issues, fulfillment and customer services
problems.

Any of these items, If mishandled, can quickly torpedo

your global marketing efforts and furthermore your
investment.
 Revision – Rules for Success
Rule #2 – Selling Anything
The message is
“Find a need and fill it”
Once a need is found, the Internet makes it easy to serve it.
What is offered to consumers on the net is limited only by
the company’s imagination and the Internet technology
that you can create to deliver it.
 Revision – Rules for Success
Rule #2 – Selling Anything

Trying to have the next big thing for the net, keep three
major human motivations in mind:

• Information
• Economic
• Entertainment

If your idea can satisfy these motivation then Internet can

translate the idea to money.
 Revision – Rules for Success
Rule #3 – Selling Anytime
One of the unique advantage of Internet:
It allows companies to conduct business 24 hours a
day, 7 days a week, every day of the year.
But don’t forget:
Anytime, means that the user can use many different
devices to access the Internet with different capabilities
each one
And secondly, your visibility on the Net is limited by
having a single Web site, thus the marketing costs of
driving qualified buyers to a Web site are a huge cash
drain on dot-coms, leading to bankruptcy.
 Revision – Rules for Success
Rule #3 – Selling Anytime
One way to become known in the Internet and minimizing
the marketing costs is through affiliate marketing
This type of marketing rely on affiliate programs. These
are programs that a web site joins in which a merchant
pays a commission to an affiliate for generating clicks,
leads, or sales from a graphic or text link located on the
affiliate’s site.
Strongly introduced by Amazon.
 Revision – Rules for Success
Rule #4 – Selling Anyway
The new technological capabilities of the Internet are
changing the face of e-commerce.
Customers will use personal shopping services
These services will send their requests out for bid
Return with merchants offers in the form of multimedia
“advertorials” on a product or service.
www.geek.com
www.respond.com
www.radicalmail.com
www.entrypoint.com
 Revision – Rules for Success
Rule #4 – Selling Anyway
Digital cash – or e-cash – will eventually become the
dominant way of paying for products and services on the
Internet.
Although payment will come from consumer’s credit card
or bank account, how payment is made on the Net can take
a variety of forms as:
A prepaid payment option
A person-to-person (P2P) service, or
In the form of an Internet escrow service.
 Revision – Rules for Success
Rule #5 – Selling at Any Price
In e-commerce,
The customer is in control.
The “One price fits all” model is obsolete.
Pricing will get personal.
Not just preferred pricing for repeat customers, but the
delivery of customized price offers to each and every
buyer.
Schemes of dynamic pricing will be dominant.
 Revision – Rules for Success
Rule #5 – Selling at Any Price
Dynamic pricing is difficult in real world
However on the Net prices can be changed in a second.
Dynamic pricing schemes contain factors as
•Product selection
•Convenience factors
•Customer service and purchase guarantee information
•Rebates
•Personalized services
 Bibliography
Frank Fiore, “E-Marketing strategies”, Que
editions, 2001
www.standard.com
www.emarketer.com
www.e-businessworld.com
www.internetnews.com
www.digitrends.net
www.office.com
www.coremetrics.com