e - Marketing

e-marketing or web marketing is the way of marketing product and services through advertisements posted on search engines, social media sites and websites. Example Google, Facebook, Rediff, other browsing and information websites. 90% of Googles revenues are derived from advertising programs.

Global e Commerce Revenue($ in million)

Region 2009 2010 2011 2012 2013

US

144124

165,791

187,693

212,253

235,289

Europe

188,446

195,174

210,876

246,651

283,014

Asia

107,078

155,718

208,953

266,560

323,065

Rest of World

41963

55811

73113

95047

121,660

REST OF WORLD ASIA EUROPE US

2009

2010

2011

2012

2013

ONLINE SHOPPING GENERATION PENETRATION

40% 35% 30% 25% 20% 15% 10% 5% 0%

2007 2010

TRADITIONAL MARKETING
If marketing is whatever you do to promote the sale of your products or services, then it should include : 1. Market research from competitive informationgathering to industry awareness to soliciting customer opinions and preferences. 2. Publicity from press releases to the positioning of your company and its offering in the marketplace. 3. Advertising that is textbased (classifieds) and graphicbased (displays). 4. Sales, included distribution and merchandising. 5. Customer service and customer support.

Traditional marketing seems to fall far short of three features. There are certain problems associated with it, which can be listed as follows: Traditional marketing is often expensive. Traditional marketing can be a very timeconsuming process. Traditional marketing often has a hit and miss quality.

IDENTIFYING WEB PRESENCE GOALS

On the web, businesses and other organizations have the advantage of creating a space of their own choice, design and other embellishments, good enough to make a distinctive presence. A website can have images, and can activate them by animation, thus making the customers feel and enjoy its presence. Different firms, even those in similar business, may establish different web presence goals. Example - Coca Cola and Pepsi.

1. ACHIEVING WEB PRESENCE GOALS

1. Attracting visitors to the website. 2. Making the site interesting enough so that visitors stay and explore. 3. Convincing visitors to follow the sites links to obtain information. 4. Creating an impression consistent with the organizations desired image. 5. Building a trusting relationship with visitors. 6. Reinforcing positive images that the visitors might already have about the organization. 7. Encouraging visitors to return to the site.

2. Uniqueness of the Web

Websites that are designed to create an organizations presence in the web medium include links to a fairly standard information set. These sites give visitors easy access to its history, statement about its objectives or mission, information about products or services offered, financial information, and means of communication with the organization.

3. Meeting the needs of website visitors

Learning about products or services that the company offers. Buying the products or service that the company offers. Obtaining information about warranties or service and repair policies for products they purchased. Obtaining general information about company or organization. Obtaining financial information for making an investment or credit granting decision. Identifying the people who manages the company or organization. Obtaining contact information of a person or a dependent in the organization.

4. E marketing Value Chain

Customer acquisition ( Pre Purchase Support )

Customer support ( During Purchase )

Customer fulfillment

Customer support ( Post Purchase )

5. Site adhesion : content, format, and access

Content initially customer will want to navigate quickly to gain a clear understanding of sites progressions to more detailed information. (match user psychology and tech sophistication). Format selection of data format is crucial, as initially the goal is to create viewer interest and engage the viewer in a prolonged interaction. Access online data access depends on the bandwidth requirement.

6. Maintaining a website
One of the best ways to accommodate a broad range of visitors needs is to build flexibility into the websites interface. Some sites offer separate version and give visitors the option of choosing either one.

To be successful in conveying an integrated image and information to potential customers, business should try to meet the following goals when constructing their websites :
Convey an integrated image of the organization. Offer easily accessible facts about the organization . Allow visitors to experience the site in different ways and at different levels. Provide visitors with a meaningful, two way (interaction) communication link with the organization. Sustain visitors attention and encourage return visits. Offer easily accessible information about products and services and how to use them.

7. Metrics defining internet units of measurement

To measure parameters associated with the web and websites in order to assess two things Advertising how many people saw our banner ad? Visitation how many people came to our site? Direct and Indirect Metrics

Organization in the online customer acquisition phase have attempted to refine some of the indirect matrices to their needs, by understanding their limitations. These include the following 1. 2. 3. 4. 5. 6. Click through captures Time spent Time spent searching Time spent before click through E mails and telephone calls. Registered users.

The Browsing Behavioral Model

Browsing Behavior model of an online video store 1. Connect to the homepage and browse the site by following links to bestseller videos and promotion of the week per videos category. 2. Search for titles according to various criteria including keywords and titles. 3. Select one of the videos that results from a search and views additional information such as brief description of product. 4. Register as a new customer of the virtual videos store. 5. Login with a username and password. 6. Add items to the shopping cart. 7. Pay for the items added to the shopping cart.

1. Browser Behavioral Model Graph (BBMG)

Entry Home Login Register Search Browse Select Add to chart Pay (billing) Exit

2. Aggregate metrics for E Business sites

Category function
Login Register

Description
Login to the site Register as a new user Search site database View one of the result of a search Follow links within the state Add items to shopping cart Remove items from shopping cart Check contents and value of shopping cart Create a gift registry Check status of previous order Pay for items in shopping cart Download software/report/music Subscribe to regular download Listen to real time audio Watch real time movie

Common

Search Select Browse Add items Remove items See shopping cart Create registry Add to registry Check status Pay Download Subscribe Listen watch

retail

information

Many metrics have been used to assess the success of site in terms of popularity and/or revenue generation Hits /second Page views / day Click through Unique visitors Revenue throughput Potential loss throughput

Online marketing
Online marketing means using the power of online networks, computer communications and digital interactive media to reach your marketing objectives. Cyberbuyers Cyberconsumers Cybersurfers

1. How should buyer pay online?

Sends in a cheque, or calls and verbally transmits a credit card number, over the merchant telephone. The consumer.
Sets up an account with a merchant or a third party org. Leaves her or his card no. by means other than the internet Gives merchant the authorization to bill the account, whenever consumer chooses to buy.

1. 2. 3.

The consumer leaves his credit card no, on an unsecure online order form. Consumer uses secure client software program to transfer his or her encrypted credit card number to a secure merchant server. The consumer exchanges traditional currency for some form of digital currency, and then spends unit of currency whenever and wherever he or she likes.

2. Advantage of online marketing

Online marketing offers bottom line benefits that tie in directly to the demands placed on the organization trying to make a transition into the new economy. Online marketing can save money and help you on your marketing budget. Electronics versions of catalogues, brochures, and specification sheets do not have to be printed, packaged, stored, or shipped. Online marketing can save time and cut steps from the marketing process. Online marketing gives customer another way to buy, while enabling then then to take control of the purchasing process. Online marketing can be information-rich and interactive. Online marketing can offer you instant international reach and indeed, online networks have created an instant global community. Online marketing can lower barriers to entry and offer equal opportunity for access. Online marketing can be continuously available.

3. Various Businesses that Can Flourish on the Internet

Banking ATM, online banking, deposits, withdrawals, fund transfer, loans and other forms of transaction. Databanks Convenient mechanism for searching databases are making information services user friendly as well. Music Since it is recorded and stored digitally, music as well as the other audio products are the perfect products for distribution over the internet. Retailing Two genres of online shopping malls are being set up by digital entrepreneurs. Multimedia catalogues and Supermarket Service.

E advertising
Web based advertising has become an important part of a companys media mix. Numerous companies are committing large advertising budget to the Internet 1. People increasingly prefer to surf the Internet rather than watch TV. 2. The target audience goes to the advertisement , rather than the other way around. 3. Development of business search engines by companies such as C2B Technologies, which aim to link buyers with online bargain for a million products for comparison shopping purposes. 4. To play, participants must provide certain data, including their preference of advertisement and tastes, which presents a valuable database as to customer preference. 5. The growth of e-business. 6. The internet is not geographically restricted.

1. Various Means of advertising

E mail Banners Skyscrapers Banner swapping Streaming Video and Audio Effectiveness tracking, usage of cookies, to track where customer goes after the ads Mini-sites, Pop-ups Interstitials Sponsorships Coupons Pay Per Advertising View Loyalty Programs , Air Miles Partnership Innovative customer acquisition Providing information Leverage the Customer Base

 Personalized online Communication Reduce Mass mkting expenses and increase response rates 1. Permission marketing 2. Personalization recommendation 3. Personalization advertisement 4. Personalized Web pages 5. Personalized e- commerce stores

2. Conducting online market research

Online Market/Research Process and Results

Problems definition and research objective

Research methodology, data collection plan

Data collection, data analysis

Results , recommendations, implementation

 Steps in collecting market research data 1. 2. 3. 4. 5. 6. 7. 8. Define the research issue and the target market. Identify newsgroups and interest communities to study. Identify specific topics for discussion. Subscribe to the pertinent groups; register in communities. Search discussion group topic and content lists to find the target market. Search e-mail discussion group lists. Subscribe to filtering services that monitor groups. Enter chat rooms, whenever possible.

 Content of the Research Instrument 1. Post strategic queries to group. 2. Post surveys on your websites. Offer rewards for participation. 3. Post strategic queries on your websites. 4. Post relevant contents to group with a pointer to your websites surveys. 5. Post a detailed survey in special e-mail questionnaires. 6. Create a chat room and try to build a community of consumers.

 1. 2. 3. 4.

Target audience of the study Compare your audience with the target population. Determine your editorial focus. Determine your content. Determine what Web services to create. Tracking customer movements on the internet. Limitations of online research although web user demography is rapidly diversifying, it is skill skewed towards certain population groups, such as those with internet access.

3. Building customer relation based on one-to -one marketing.

One-to-One marketing is type of relation marketing. One to One marketing is a simple idea treat different customer differently Increase loyalty in its own customers - One customer at a time by establishing relationship with each customer, starting with most valuable customer. Benefit of doing such business over internet is that enables companies to better understand their customers needs and buying habit, which in turn enables them to improve and frequency customize their future marketing efforts.

4. Market Segmentation
Company breaks thousands of customers into smaller Demographic segments & tailors its campaigns to each of those segments.

Consumer Market Segmentation In India

Geographic
Region & State Size of state City District Village Population density

Demographic Psychosocial
Age Population Sex Education Religion Income Social Classes Lifestyle Personality

Cognitive, Affective, Behavioral

Attitude Perceived Value Loyalty Usage rate

Problems Of Internet Marketing In India

Most Internet Users are Students
Hence no self Income & limited money

Only 12% users are traders/businessmen

Hence low level of web enablement of retailers

Only 4% of housewives (i.e. most potential segment for FMCG market) are internet users

Internet usage in India

E-mail 87% General Info. Services 80% Education info. Services 65% Multimedia Services 45% Internet Messengers 40% Job Portals 33% Live Gaming 16% Financial info. 24% Ticket Booking 18% News 16% Live Chat 14% Net Banking 12%

Education profile of Internet users in India

UG 8%

Professionals 29%

PG 26%

Graduates 37%

Age profile of internet Users in India

Age Profile
35+ 27%

15 to 24 yr 42%

24 to 34 31%

Young Population Driving Internet growth

Non Working Older Men Women 7% 13% School Going kids 14%

college Going Students 30%

Young Men 28%

Working Women 8%

Points Of access for Internet

Home Cyber Caf Office School/College Others 4% 4% 23%

31%

38%

o Hence from this data it can be concluded that India has immense potential for this field & is immerging as exceptionally high computer using population.

5. Data Mining & Market Research

Used to extract information from a data set and transform it into an understandable structure for further use. Used by marketers to analyze large chunk of buying data to analyze buying habits.

Data mining Opportunities for Business

Automated prediction of trends & behaviors Automated discovery of previously un known patterns

Data Mining Characteristics & objectives

Relevant database are easy to locate in very large data base Retrieving the information buried in corporate files & public records Retrieving relevant data without programming skills Obtaining unexpected valuable results Easy compatibility with other tool eg. Spreadsheets ensures easy analysis Yields 5 types of Info. 1)Association 2)Sequences 3)Classifications 4)Clusters 5)forecasting

6. Measuring effectiveness of Eadvertising

Measuring Web Audiences is much complicated as webs interactivity as each visitor may voluntarily provide or refuse to provide information & the value of visitor for advertiser depends on how much info. The site gathers from a visitor. Each time a visitor loads a page is counted as a page view If page contains an ad it is known as ad view If the page has a banner ad which loads & reloads again it is known as Impression If the visitor clicks a Banner ad to navigate to advertisers page it is known as Click-through'

A Banner Ad on you Tube

 Banner ads are sold as Cost per thousand Impression Cost depends on how much demographic info can be collected about the visitor by the site Companies compare cost of acquiring one customer through web by with the same for acquiring through traditional channels

Criteria Advertising

CRM

E-CRM

Push & Sell a uniform message Provide info. In response to to all customers specific customer enquiries Market Segmentation Identifying and responding to specific customer behaviours & preferences Individually tailored to customers choice Direct or through Intermediaries Negotiated with each customer Created in response to customer demand Customer retention; total value of the indivisual customer relationship

Targeting

Promotions

Same for all Customers

Distribution Channel

Through Intermediaries chosen by the seller Set by the seller to all customers Determined by the seller for all customers Market share; profit

Product pricing

New product Features

Measurements used to measure Customer Relationship

E Branding
Online Co. putting branding to work with remarkable success 7 top internet companies brands recognised by over 50mn. users only in U.S. making them Mega brands Eg. Microsoft.com, Amazon.com, yahoo.com,Netscape,
Priceline, Infoseek, Excite etc

E Branding Criteria
Element Differentiation Relevance Perceived Value Meaning to the customer In what significant way the product is unlike its competitor? How this product or service fit into my life? Is this product or service good?

Spiral Branding: Spiral branding includes the ability to identify your best customers or prospects immediately, deliver the common voice and serve relevant communication that is of specific interest to your target customer. Has 3 Stages: First use TV & Radio ads to attract peoples attention & send them to web Use Web to get those customers interested & gather there info. E-mail closes the loop & take people around the spiral again

 Keys of Spiral Branding:

Use each media for its best purpose Do it fast Iterate constantly

Search Engine Optimization: Half of all web users cite search engines as their primary portals to new sites Marketers re-examine their strategies for optimizing their rankings in search results

Google Ads Placed above the normal search results with minor color diff. in background

 Affiliate networks:
These typically reward referring to sites with commission based on click through or complete transactions

Advocacy Marketing:
Online marketers provide E news letters or incentives to pass on to there friends who act as marketing advocates to their friends. Word of mouth.

Permission E-mail:
Emails sent with customers permission opted for when making account on the site provide an option for Customer Relationship Building & maintenance by passing on special tailored offers.

Permission to send promotional news & offer Info.

Some Marketing Strategies

Brand leveraging strategies: Existing websites extend there dominant positions to other services on the web

Google is an eg of Brand leveraging From Search Engine to Email to media Streaming, Cloud Computing & Social networking Etc.

 Affiliate-marketing Strategies: A web site affiliates it self to another site which may have more traffic. For every visitor who navigates from this to the sellers site the affiliate's site receives a commission.

Affiliated sites to facebook

 Viral Media Marketing: Comprises of marketing techniques that use preexisting social networks and other technologies to produce increases in brand awareness or to achieve other marketing objectives through replicating viral processes. Viral marketing may take the form of video clips, interactive Flash games, ebooks, brandable software, images, text messages, email messages, or web pages.

Dabur Vatikas Facebook campaign eg for viral marketing

 Social Media Marketing & Content Marketing: Marketers post information, articles or interactive activities which would be of great interest or would enhance the knowledge of a potential customer from their companies webpage on to the social media sites so that interest is generated into their page and ultimately in their products.

Excerpts from ITCs Vivel facebook page

Advertising supported Model

Amongst one of the majour dillemas faced by the websites owners is the issue that how will a website earn money. To solve this query some website owners deliver paid services over the internet others sell their products to the customers. Where as some of the major names in the cyber space render there services for free to increase there client base and achieve prominence over the Web. These websites earn from the ads placed over them by other business owners

 A perfect Eg. Of this model is google.com Google.com which is a $72.5Bn. Organization mainly earns its profits from:
1. Charge advertisers for presenting online "banner" ads to users 2. Collect marketing data on consumer habits, then selling the data or using it for targeted advertising. 3. Charging websites to become listed 4. Charging websites for better placement in lists 5. Charging websites to purchase keywords for themselves 6. Charging other search engines to use their catalog