E - Marketing

Session 1

Introduction to E Marketing;
Meaning & Scope
What 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 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: It’s 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
 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
 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
 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)
• 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

• 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,
 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
 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