E-Marketing: Chapter 2: Introduction To Electronic Marketing

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E-MARKETING
JUDY STRAUSS AND RAYMOND FROST

Chapter 2: Introduction to Electronic Marketing

©2009 Pearson Education,


Inc. Publishing as Prentice
Hall
Concept of E-Marketing
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Marketing:
 A comprehensive process that involves every aspect of a
business from designing its products, setting the pricing
strategy to analysing sales statistics and collecting customer
feedback.

E-Marketing:
 Refers to using technology such as the internet, website and
email, sms, including its wide variety of options and tools to
conduct your marketing activities and achieve your
marketing objectives.
©2009 Pearson Education, Inc.
Publishing as Prentice Hall
The E-Marketing Concept
The objectives of marketing are to:
 get the right product

 promoted in the right way

 sold at the right price

 distributed at the right place

 profitably
THE E-MARKETING CONCEPT
Examples of e-Marketing include:
 online surveys to conduct market research

 web site to display and sell your products

 internet advertising to promote your business

 software to collect and analyse your customer

information
THE E-MARKETING CONCEPT

The Key to e-Marketing:


 The key to successful e-Marketing in today's business
environment is to place your clients in control. Allow them
to choose how often and what type of messages they
receive, thus creating a more meaningful relationship with
your business.
 This is commonly referred to as Permission Marketing.
 Your e-Marketing messages and tools should aim to deliver
information that the consumer wants - that they perceive to
be valuable.
INTEGRATING E-MARKETING
INTO YOUR BUSINESS
 e-Marketing is not an alternative to your existing
Marketing Plan, in fact you may already have a
"Marketing Plan" that identifies your marketing
objectives, outlines your key strategies designed to
achieve those objectives, and guides your daily
marketing activities.

 With e-Marketing you can develop techniques to enhance


this existing plan to make your marketing activities more
effective (smarter) more efficient (cheaper) and you may
even find that you can tap into new markets both locally
and overseas.
HOW WOULD E-MARKETING ENHANCE
MY EXISTING MARKETING PLAN
 With the use of internet-based product catalogues
you can reduce your printing costs and maintain a
higher quality of product information for your
customers.

 By utilising marketing information systems you


can analyse your sales information to make more
informed decisions and customers all over the
world can view your products with a website.
CAN MY BUSINESS AFFORD E-
MARKETING?

 The cost of e-Marketing depends on which strategies you


choose to implement.
 Any business can start using simple e-Marketing techniques
such as email, newsletters, computer based data
management and internet research by purchasing a computer
and connecting to the internet which can be achieved for less
than $2,000.
 Businesses can also spend many thousands of dollars
utilizing the services of a professional e-Marketing firm to
create and implement a complete e-Marketing package. The
choice is yours!
The Marketing Process
 A comprehensive marketing process and resulting
Marketing Plan is critical for the success of your
business.
 An effective marketing process should provide you
with the information, strategies and solutions to
any and all obstacles you might encounter along
the way in building and running a successful and
profitable business.
Importance E-Marketing
 Affiliate Program
 Search Engine Optimization
 Email Campaigns
 Banner Exchange
 Business Website
 Mobile Phone Marketing
Affiliate Program

Affiliate Marketing Program

 Affiliate marketing is where you refer customers to other businesses


via links to their web site from your web site or emails and receive
commissions for each customer you refer to the other business. They
are essentially revenue sharing arrangements between online vendors
or sellers and resellers or affiliates.

 If the business is "multi-level" you also receive commissions from the


customers referred by other businesses you have introduced.

 Conversely, you can set up your own affiliate marketing program to


have other businesses sell your products and services for you by
paying them a commission.
Affiliate Program

Affiliate Marketing Program


Affiliate Program

Affiliate Marketing Program


Search Engines

Overview
 A search engine is a service where internet users can go to the search
engine web site and search for web sites that interest them by inputting
keywords. The search engine then displays the results of their search
starting with the web sites that best meet the search criteria down to the
web sites that least fit the search criteria.

 Search engines are becoming ever more popular especially when you
consider how many web sites there are on the internet today and most
users have limited time to find what they are looking for.
Search engine optimisation is the process of getting your web site address
or URL as close as possible to the top of the search results when someone
using the search engines is looking for the products you sell.
Search Engines

Search Engine Optimisation


Email Campaigns

About Email Campaigns


 Email or electronic mail has revolutionised
communication. Anyone with access to the internet and
an email program can send a written message - along
with attached documents - anywhere in the world within
seconds via the internet.

 Email campaigns are targeted emails that work much like


conventional direct mail campaigns. They come in
various forms such as direct email, newsletters,
newsgroups, and press releases.
Banner Exchange

Banner Advertising
 A banner advertisement is an image placed at the top or
bottom of a web page, to catch the viewer's eye and possibly
prompt them to click on it.
 It can either be static, that is, simply like a billboard
displaying the name of a website, or dynamic, encouraging
the user to click on the banner image to be transferred to that
website.
 Banner advertising is based on one-to-many advertising rather
than one-to-one. It has traditionally been the most common
form of promotion on the web.
Banner Exchange

Banner Advertising
Business Website
 Technically speaking a web site is a related collection of World Wide
Web (WWW) files that includes a beginning file called a home page.
A company tells customers and potential customers where to find their
website on the internet by giving them the address (or URL) of their
home page. From the home page, you can get to all the other pages on
their site. For example, the web site for the Small Business
Development Corporation (SBDC) has the home page address of
http://www.sbdc.com.au

 Web sites may be very complex and consist of hundreds of pages of


information and even provide the ability for your customers to
purchase your products on the internet. Alternatively, they can be quite
simple, consisting of only a few pages that do little more than inform
your customers of your businesses address and contact details.
Business Website
Mobile Telephone Marketing

Mobile Phone Marketing


 Mobile telephone marketing is the use of mobile
phone technologies such as voice, text and
multimedia message services to promote
products/services to consumers.

 With the significant increase in the use of mobile


telephones in Australia in recent years, there has
been a corresponding increase in marketing via
these technologies.
Mobile Telephone Marketing

Mobile Phone Marketing - SMS


Advantages of e-Marketing

 Availability of Information

 Saves money
(ex. In Ramadan AlRai tv aired a 15 second commercial for
three days for 4,500 kd!)

 Expansion

 Low Cost

 Efficiency of Advertising
Limitations / Disadvantages of e-
Marketing
 Technology

 Low connection speed

 Complication

 Intangibility
E-Commerce: Past
 In 1999, the online market size for business services
was estimated at $22 billion.
 Primary service categories include
 financial ($7.3 billion, 1999),
 professional ($4.4 billion),
 administrative support ($3.9 billion),
 corporate travel ($5 billion), and
 telecommunications ($1.5 billion).
 By 2003, Forrester Research predicts that online
services will represent nearly 8 percent of the overall
sector hardly a drop in the bucket.
E-Commerce: Today

Some major product categories have paved the way:


 travel services ($5.95 billion in 1999 sales),

 computer hardware and software ($5.8 billion),

 
 books ($1.7                  
billion),
 gifts and flowers ($730 million),

 music ($540 million), and

 apparel and footwear ($460 million)


E-Commerce: Future
 eMarketer, an Internet technology (IT) research and reporting
firm, estimated that the dollar figure for e-commerce has been
risen from U.S. $18 billion in 1998 to U.S. $294 billion in
2002.

 In Europe, consumers' internet purchases jumped from 2.9


billion in 1999 to 174 billion in 2005.
Future Trends to Watch in E-
Commerce
 Women take control. Women make or influence 80 percent
of household sales in the United States, according to
WomanTrend, despite the fact that they make up 51 percent of
the population.
 The untapped get tapped. Two highly touted markets $509
million health and beauty, and $513 million grocery still lag
behind expectations.
 More "click and mortar." Traditional retailers Circuit City,
Crate and Barrel, Sears, Toys R Us, Wal-Mart, and Federated
Department Stores missed the boat in 1995 and 1996, but rest
assured they "get it" now, and are attempting re-entry, this
time around with more money and smarts. Watch out.
Internet properties and marketing implications
Internet properties and marketing implications
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