chapter 6:e marketing
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Chapter 6Chapter 6E-MarketingE-Marketing
By: Marya Sholevar
Fall 2014
Department of Banking and Finance
What is E-Marketing?
Marketing:– Use of 4 “P’s” to meet customer’s needs
E-Marketing:– Use of technology to increase efficiency of
marketing– Increases company profitability and adds
customer value
Ten Rules of E-Marketing
1. Power Shift from sellers to buyers
1. Increasing Velocity
1. Death of Distance
1. Global reach
1. Time compression
6. Knowledge management is key
6. Market deconstruction
6. Interoperability
6. Interdisciplinary focus
6. Intellectual capital rules (Digital City)
E-Marketing Challenges and Opportunities
Markets
Revenge of the Consumer
Businesses
Technology
Five Markets Business-to-Consumer (B2C)
– Example: www.iGo.com
Business-to-Business (B2B)– Example: www.amazon.com
Consumer-to-Consumer (C2C)– Example: www.eBay.com
Business-to-Government (B2G)
Government-to-Consumer (G2C)
Methods for online marketing:
E-mail marketing Blogging Pay per click marketing(ppc) Social media marketing Digital marketing Viral marketing
E-mail marketing
Email marketing is promoting products through the use of email
There are 2 main ingredients to an effective email marketing campaign
They are to build a large list of people you can email and to write great emails
The emails should be packed with free value and they should move people to buy what you’re trying to sell
Blogging
Yet another but important and crucial marketing trend that has brought a huge aberration in our society
Blogger was launched in 1999 by three friends. Blogging as an ardent marketing tool has really blossomed in the last some years
Businesses, companies and even superstar now use blogging system for huge promotion
Pay per click marketing
You have to pay for PPC ads.
You target certain words and then when those words are searched for on a search engine such as Google your ad will appear.But you do have to pay every time your ad is clicked on.You need to make sure you do your homework and find out how to effectively use PPC.Otherwise you can easily lose a lot of money in a short amount of time.But if you do learn how to use PPC effectively then you can make a lot of money just as fast
Social media marketing
Social media is very popular right now and it’s only getting more popular You can tap into that popularity by using social media to sell your productsJust make sure you don’t SPAM people. In fact, you shouldn’t use any social media to directly sell anything Just use social media to direct people to other sites where you can then hit them with a sales pitch
Digital marketing
With regards to the Internet, this is the promoting of brands using all forms of online digital advertising channels to reach consumers
This includes video channels, Internet Radio, mobile phones, display or banner ads, digital outdoors, and any other form of digital media.
Viral marketing
Marketing techniques that use social networks to produce an increase in brand awareness or achieve other marketing objectives (such as product sales) through self-replicating viral processes.
It can be word-of-mouth delivered or enhanced by the network effects of the Internet.
Viral promotions may take the form of video clips, interactive Flash games, ebooks, images, or even text messages.
Revenge of the Consumer
1930s:– Caveat emptor (“let the buyer beware”)
2000s:– Consumers have control
What consumers want:– Privacy– To safeguard their children– Permission before being sent commercial email
Businesses
Challenges:– Quality customer service– Information overload
Opportunities:– Ways of generating revenue– Greater interdependence in their value chain
Exhibit 1 - 5 Amazon.com Uses Mass Customization to Personalize Web Pages
Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the United States and/or other countries. © 2000 by Amazon.com. All rights reserved.
Technology
Can lower costs on staff and paperwork
Can be a costly investment
Security issues
New payment instruments
Low bandwidth
E-Marketing DeliversValue = Benefits – Costs
Value - customer perceptions of the product’s benefits
Benefits - attributes, brand name, etc…– Add benefits through mass customization and
personalization
Costs - time, money, energy, and psychic– Lower costs through 24/7 convenience and one-stop
shopping
Marketing Mix Components
Product
Price
Distribution
Marketing Communication
Relationship Marketing
Product
Through E-Marketing numerous new products emerged
Breakthrough software, hardware, and services that created digital value
Price
Efficiencies have been manifested through E-Marketing
No need for a sales force with all order processing, billing and payments are transacted between customer and Website– Cost savings return a larger profit margin and
lower prices
Distribution A primary E-Marketing application that creates
customer value
New ways for selling and distributing products
Affects all manufacturers, service providers and intermediaries
Models: – Content Sponsorship Model– Direct Selling Model– Infomediary Model– Intermediaries Model
Content Sponsorship Model
Companies create valuable content or services on their Websites
Self-advertising– Examples:
• Yahoo!
• gURL.com
Direct-Selling Model
Manufacturers eliminating channel intermediaries and sell directly to consumers
Known as “Disintermediation”
Dell Computers
Infomediary Model
An organization that collects and sells information about consumers or businesses
Similar to a Market Research firm
Hoover’s
Intermediary Model
Brokers and agents bring buyers and sellers together but neither purchase nor take possession of the actual products– Brokerage firms
• E-Trade, E-Bay, Metalsite– Agent firms
• Travelocity
E-tailers are firms that buy products and resell them online– “Click and mortar” stores– Example: E-Toys
E-Marketing Communication
Accomplished through promotion mix elements:– Advertising– Sales Promotion– Direct Marketing– Public Relations
Models:– Online Advertising Model– Online Sales Promotion Model– Content Publishing Model– Email Model
Online Advertising Model
Firms purchase advertising space on Websites owned by other firms
Does not include a firm’s own Website
Dogpile
Online Sales andPromotion Model
Sampling digital products
Allows consumer to view products before purchasing
E-Music
Content Publishing Model A company’s Website
The displaying of a firm’s information about their product offerings on the Website to Internet users
Brochureware
Does not involve transactions
Directed towards stakeholders
Pure Fishing
E-Mail Model Three types:
– Target Promotions• Companies target users through research and data mining to
send e-mail• Bulk Email Software Marketing
– Reverse Channel• User to firm• Customer service• Bass Pro Shops
– Consumer-to-Consumer• Word of mouth
Relationship Marketing Customer Relationship Marketing (CRM)
E-Marketing is able to build long-term relationships due to:– Online FAQs– Automatic e-mail responders– Customized Websites– Fax-on-demand– Supply chains integrated with the firm’s functions
Model:– Community Building Model
Community Building Model Website developed to create a special interest
community
Users may provide information for products or services
Bring consumer to concise location, making them more available for communication by a firm
Creates social bonds and enhances customer relationships
Ivillage
Marketing Plan Tasks
Situation Analysis– Environmental Factors – Marketers collect and
analyze external elements that include economic analysis, social and demographic trends, and more
– Market opportunity analysis – This entails a supply and demand analysis along with a SWOT analysis. The SWOT analysis determines the strengths, weaknesses, opportunities, and threats.
Selecting Target Market – marketers select the type of customer they are looking to attract.
Marketing Plan Tasks continued Setting objectives – marketers set the objectives
according to the firm’s mission and resources.
Designing marketing mix strategies – Develop product, pricing, distribution, and promotion strategies
Action Plan – Plan the actual marketing plan implementation
Budget – Set a budget for the marketing plan
Evaluation Plan – Continuously evaluate the plan to make sure objectives are met.
The End.The End.
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