E Marketing

Introduction to E Marketing; Meaning & Scope 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 Its the global network of interconnected networks where web pages are shared, where people send & receive data, and carry out online transactions. Three technical roles 4. Content providers (info, entertainment, etc) 5. Users 6. Technology Infrastructure to move,

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: Its the portion of the internet that supports a graphical user interface for

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

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

Evolution and future of E Marketing & its relation to Internet

Evolution of E Marketing
1990s Dot-com gold rush 2000 to 2002 Dot-com burst (500 firms closed) Adopted by all companies E-Marketing today

E Marketing Challenges; Strategic Planning

Opportunities

&

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

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

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

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

E Business Metrics

Models

&

Performance

Business Models
Its 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 anothers 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)

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

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.

Overview of E Marketing Plan, Creating an E Marketing Plan & Seven step E Marketing Plan E Marketing Plan
Its the process of identifying how to use IT to enhance revenues, increase market share and to reduce costs Its 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

Its 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

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

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,

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

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

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

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

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