Overview

Unit I: Setting the context for E-Marketing Convergence - Background, Current state, and future potential of e-marketing. Strategic E-Marketing Achieving objectives through strategies involving e-business and emarketing. E-Marketing Plan - Creating an e-marketing plan and steps in e-marketing planning.

E-Marketing Plan - Strategy Formulation and Implementation

E Legal-Ethical Technology Competition Other Factors SWOT E-Business Strategy/ Model E-Marketing Plan E-Marketing Strategy Implementation Marketing Mix/CRM Internet Markets

Performance Metrics

Steps 2, 3, and 4 of the E-Marketing Plan

Step 2 Tier 1 Tasks Positioning Differentiation Segmentation Targeting

Step 3 E-Marketing Objectives Offer (Product)

CRM/PRM Step 4 Tier 2 Tasks Communication Value (Promotion) (Price) Distribution (Place)

Overview

Unit II: E-Marketing Environment Global Markets - Differences in Internet access & usage as a foundation for segmenting and targeting specific markets. Ethical and Legal Issues

Unit III: E-Marketing Strategy

1. Marketing Knowledge
2. Consumer Behavior 3. Segmentation and Targeting Strategies

4. Differentiation and Positioning Strategies

1. Marketing Knowledge

Lesson Overview
Identify the three main sources of data that emarketers use to address research problems. Discuss how and why e-marketers need to check the quality of research data gathered online. Explain why the Internet is used as a contact method for primary research and describe the main Internet-based approaches to primary research. Contrast client-side, server-side, and realspace approaches to data collection. Highlight four important methods of analysis that e-marketers can apply to data warehouse information.

The Purina Story

Nestle Purina PetCare Company wanted to know whether their web sites and online advertising increased off-line behavior. Nestle developed 3 research questions: Are our buyers using our branded Web sites? Should we invest in other Web sites? If so, where should we place the advertising?

The Purina Story, cont.

They combined online and off-line shopping panel data and found that: Banner clickthrough was low (0.06%). 31% of subjects who were exposed to both online and off-line advertising mentioned Purina. The high exposure group mentioned Purina more than the low exposure group. Home/health and living sites received the most visits from their customers. Would you also have selected petsmart.com and about.com for Purina PetCare ads?

Data Drives Strategy

Organizations are drowning in data. Purina, for example, sorts through hundreds of millions of pieces of data about 21.5 million consumers to make decisions.

Terabytes of Corporate Data: Growth Rate from 1999-2003

2,000,000
1,800,000 1,600,000

1,400,000
1,200,000 1,000,000 800,000 600,000 400,000 200,000 1999 2000 2001 2002 2003

From Sources to Database to Strategy

S
Internal Data Secondary Data Primary Data
Information: Consumer behavior, competitive intelligence

Product Database

Customer/ Prospect Base

Other Data / Information

*Marketing Knowledge* Tier 1 Segmentation Targeting Differentiation Positioning

Tier 2 Marketing Mix Performance Metrics CRM

From Data to Decision at Purina

Decision
Lets put banner ads on about.com

Knowledge

Dog owners who see ads online are likely to visit Purina ONE. We know the sites they visit: about.com, www.petsmart.com 1. Purina buyers are 20 percent more likely to visit about.com 36 percent of dog owners who see Purina ads would buy the brand

Information

2.

Data

016030102 (Buyer 1 bought Purina puppy chow on March 1)

Marketing Knowledge Management

Knowledge management is the process of managing the creation, use and dissemination of knowledge. Examples of the uses of knowledge management can be found in the next slide which provides the same in Telecom and Retail for some firms.

Uses of Knowledge Management

Use in the Telecom Industry
Scanner Check-Out Data Analysis Call Volume Analysis Equipment Sales Analysis Customer Profitability Analysis Cost and Inventory Analysis Purchasing Leverage with Suppliers Frequent-Buyer Program Management

Representative Firm
AT&T Ameritech Belgacom British Telecom Telestra Australia Telecom Ireland Telecom Italia

Use in the Retail Industry

Scanner Check-Out Data Analysis Sales Promotion Tracking Inventory Analysis and Deployment Price Reduction Modeling Negotiating Leverage with Suppliers Frequent-Buyer Program Management Profitability Analysis Product Selection for Markets

Representative Firm
Wal-Mart Kmart Sears Osco/Savon Drugs Casino Supermarkets W. H. Smith Books Otto Versand Mail Order Amazon.com

The Marketing Information System

Marketers manage knowledge through a marketing information system (MIS). Many firms store data in databases and data warehouses. The Internet and other technologies have facilitated data collection. Secondary data provides information about competitors, consumers, the economic environment, etc. Marketers use the Net and other technologies to collect primary data about consumers.

Sources of data: Internal records

Accounting, finance, production and marketing personnel collect and analyze data. Nonmarketing data, such as sales, profits, advertising spending, marketing expenses etc. Sales force data prospects, current customers, service complaints etc. Customer characteristics and behavior Marketers been using it for long time In store behavior through UPC Tracking of user movements through web pages

Secondary data
Can be collected more quickly and less expensively than primary data. Secondary data may not meet e-marketers information needs. Data were gathered for a different purpose. Quality of secondary data may be unknown. Data may be old. Marketers continually gather business intelligence by scanning the macroenvironment.

Public and Private Data Sources

Publicly generated data - such as from Govt agencies, Govt departments, Libraries, Professional associations etc Privately generated data - such as from Company Web sites, Research firms, Online newspapers etc Online databases - such as News, Industry data, Encyclopedias, Yellow Page directories etc

Public and Private Data Sources

Competitive Intelligence Involves analyzing the industries in which a firm operates as input to the firms strategic positioning and to understand competitor vulnerabilities. Sources of CI may include Press releases, New products, Alliances and co-brands Trade shows, etc

Public and Private Data Sources

Information Quality - Data are subject to limitations. Steps that can be taken to evaluate the quality of secondary data collected online. Some steps could be: Discover the Web site's author Try to determine whether the site author is

an authority on the Web site topic: Check to see when the site was last updated Try to validate the research data by finding similar information at other sources on the Internet or in hard copy at the library, etc

Primary Data
Primary data are information gathered for the first time to solve a particular problem. Two electronic sources of primary data collection: Internet Real space Primary data collection on the Net: Experiments Focus groups In-depth interviews Survey research Real-space data collection refers to technologyenabled gathering of information offline.

Primary Research Steps

Research Problem Research Plan Research Approach Sample Design Contact Method Instrument Design Data Collection Data Analysis Distribution of Findings

Typical Online Research Problem

Online Retailers
Improve online merchandising Forecast product demand Test new products Test various price points Test co-branding and partnership effectiveness Measure affiliate program effectiveness

Web Sites
Pages viewed most often Increase site "stickiness" (stay longer) Test site icons and organization Path users take through the site - is it efficient? Site visit overall satisfaction

Customers and Prospects

Identify new market segments Test shopping satisfaction Profile current customers Test site customization techniques

Promotions
Test advertising copy Test new promotions Check coupon effectiveness Measure banner ad clickthrough

Firms Using Online Primary Research

100 90 80 70 60 50 40 30 20 10 0 71% of research firms in U.S. use online primary research

Online Surveys

E-mail Surveys

Online Bulletin Web Site Focus Board Focus Use Groups Groups Measures

Online Research Advantages & Disadvantages

Advantages Can be fast and inexpensive. Surveys may reduce data entry errors. Respondents may answer more honestly and openly. Disadvantages Sample representativeness. Respondent authenticity. Researchers are using online panels (Opt-in) to combat sampling and response problems.

Other Technology-Enabled Approaches

Client-side Data Collection Cookies Use PC meter with panel of users to track the user clickstream. Server-side Data Collection Data log software Real-time profiling tracks users movements through a web site.

Real-Space Data Collection, Storage, and Analysis

Offline data collection may be combined with online data. Transaction processing databases move data from other databases to a data warehouse. Data collected can be analyzed to help make marketing decisions. Data Mining Customer Profiling Recency, Frequency, Monetary (RFM) Analysis Report Generating