E - Marketing

Session 1

Introduction to E Marketing;Meaning & ScopeWhat is Internet?

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

It’s the global network of interconnected networks where web pages are shared, where people send & receive data, and carry out online transactions.

Three technical roles1. Content providers (info, entertainment, etc)2. Users 3. Technology Infrastructure to move, create, and

view/listen to content

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: It’s the portion of the internet that supports a graphical user interface for hypertext navigation with a browser.

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, etc.) send and receive information through intranet about customers or products

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 jobs, better access to information, globalization, etc.

Session 2

Evolution and future of E – Marketing &its relation to Internet

Evolution of E Marketing

• 1990’s Dot-com gold rush• 2000 to 2002 Dot-com burst (500 firms closed)• Adopted by all companies

E-Marketing today

Session 3

E Marketing Challenges; Opportunities&

E Strategic Planning

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• Cheaper technology

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 planning

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 E Marketing

• 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

Session 4

E Business Models&

Performance Metrics

Business Models

• It’s 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 another’s 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)– Mass communication

• 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

• Pure Play E Business Models

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.

Session 5

Case Study: HLL RS Net- E Commerce in Distribution System

Session 6 & 7

Overview of E Marketing Plan,Creating an E Marketing Plan

&Seven step E Marketing Plan

E Marketing Plan

• It’s the process of identifying how to use IT to enhance revenues, increase market share and to reduce costs

• It’s 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

• It’s 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

Step I - Situation Analysis

• 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 strategies

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, Application service providers and other firms.

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

Session 8

Issues in E Marketing Planning

Group Activity followed by discussion

Session 9

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 penetration

but already has the max users

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• Mobile penetration is increasing drastically

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

Session 10

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