E-Marketing
14MBAMM409
Module 1
Course Objectives
- To understand the important concepts related
- To learn the use of different electronic media in marketing activities
- To introduce to the students the current tools
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Dell Starts Listening
- In 2004, Dell held 28.2% of U.S. computer share.
- To reduce costs, Dell Computer began customer service to a firm in India.
- Market share increased to 28.8% and consumer dissatisfaction rose.
- Dell digital media manager initiated several languages to improve communication.
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Dell Starts Listening, cont.
- Dell's blogs became mechanisms for consumer complaints and ideas.
- Blog usage resulted in over 20 changes in the company.
- What are the opportunities and risks of using blogs for improving customer service?
Internet 101
- The internet is a global network of interconnected networks.
- E-mail and data files move over phone lines and satellites from sender to receiver.
- There are two special uses of the internet:
- Intranet: network that runs internally in an organization.
- Extranet: two joined networks that share information.
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Internet 101, cont.
- E-business is the continuous optimization of business activities through digital technology.
- E-commerce is the subset of e-business transactions.
- E-marketing is one part of an organization's business activities.
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E-Marketing is Bigger than
- The Web is the portion of the internet that provides a graphical user interface for hypertext documents with a browser.
- The Web is what most people think about when they think of the Internet.
The Web Is One Aspect of Business
Exhibit 1.1
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Digital Content
Data
Text
Audio (music)
Graphics, photos
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Video
Internet Distribution
Telephone modem
Cable modem
Satellite, WiFi
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E-Marketing is Bigger than
- The internet provides individual users convenient and continuous access to information, entertainment, and communication.
- Communities form around shared interests and online profiles.
- The digital environment enhances personal activities for businesses.
- Societies are enhanced through more markets, more jobs, and information.
Global Internet Users
Exhibit 1.3
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Latin America/Caribbean 9%
Asia 36%
Middle East 3%
Africa 4%
Oceania 2%
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North
What is E-marketing?
- It is the use of IT in the process of creating, delivering value to the customers, & fostering relationships in ways that benefits the organization.
- E- marketing effects traditional mktg
- It increases efficiency and effectiveness in traditional marketing.
- Increase in new business models.
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E-Marketing's Past: Web
- The Internet started in 1969 as the ARPANET, a network for academic and military researchers.
- Web pages and browsers appeared in the early 1990s.
- The first generation of e-business was the dot-com rush.
- Between 2000 and 2002, more than 5,000 dot-coms shut down in the U.S.
- By Q4 2003, almost 60% of public dot-coms were profitable.
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E-Business to Just Business
Exhibit 1.5
Visibility
E-B
Dot-Com Peak
U.S. Recession
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"Just
Technology Trigger
1990-1996
Peak of Inflated Expectation
1999 2000
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Equity Times
Trough of Disillusionment
2001 2002
Debt Times
Slope of Enlightenment
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F
2003 2004 20
Positive
E-Marketing Today: Web
- Web 1.0 connected people to networks.
- Web 2.0 connected people with many others.
- Web 2.0 is the second generation of Internet technology and includes:
- Blogs
- Social networking
- Photo, video, and bookmark sharing
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The Future: Web 3.0
- The newest technologies allow marketers to engage the user:
- Engagement
- Participation
- Co-creation
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- Online gaming represented over $10 billion in revenue and 15 million players in 2004.
Consumers Have More Control
- The internet provides a communication channel for individual comments, both positive or negative.
- Comments can spread quickly and rapidly.
- New technologies such as digital video recorders (DVRs) will increase consumer control.
- You tube?
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Power Shift from Companies to
Exhibit 1.7
Companies
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Power Shift
Traditional Media
Television
Radio
Magazines
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Newspapers
Centralized push
Individuals
Social Media
Social networks
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Blogs
Wikis
And more
Decentralized p
Wireless Networking Increasing
- Cell phones, PDAs, and laptops connect to the internet via wireless modem worldwide:
- Starbucks
- Hotels and airports
- Queen Mary II luxury liner
- train stations
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- Customers will have information, entertainment, and communication when, where, and how they want it.
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WiFi at Train Station in France
Gares
WiFi Gare
EN GARE,
le WiFi dépasse les bornes
Vous entrez
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dans
l'espace
WiFi
Appliance Convergence
- The receiving appliance is separate from the content type.
- Computers can receive digital radio
- TV sets can receive the Web.
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- New types of "smart" receiving appliances will emerge.
- Internet refrigerator is many digital devices.
- Global positioning systems (GPS) allow for communication and entertainment.
Semantic Web
- The Semantic Web will utilize a standard protocol that will allow users to find information based on its type, such as:
- The next available appointment for a doctor.
- Details about an upcoming concert.
- Menu at the local restaurant.
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- Represents the next huge advance in worldwide access to data on demand with little effort.
Semantic Web
- Marketers want to give customers information where they want it.
- They use several different receiving appliances to deliver their messages.
- The Semantic Web is an extension of the internet, making it easier to obtain information by:
- Providing information based on type.
- Person, contact information, next available appointment, restaurant menu's.
- The Semantic Web was invented by Sir Tim Berners-Lee.
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Internet-Time Analogy Exhibit
3500 BC Sundial
1583 AD Pendulum
1600s Mechanical
19
Web is here in 2008
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Group Presentations
Part 1 Overview: Internet Properties & Marketing
- Website analysis
- Web and other online content (such as mobile content)
- Website properties (table 1.6 in the core textbook)
- Website design and usability features
- Multimedia and interactive features
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Part 2 Benefit, Cost & Value Creation - The Marketing
- Creating a positive customer experience
- Benefit, cost & value creation
- Internet marketing mix
- Customer relationship management features
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firstranker.com
- Founded in 1995 as an online retailer.
- Did not become profitable until Q4 2001.
- In 2007, generated $14.8 billion in sales and $476 million in net income.
- Leveraged its competencies into different business models.
- Established e-commerce partnerships with Target, Macy's, and others.
- Provided developer services.
- Created the first affiliate program.
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firstranker.com, cont.
- Amazon's success is based on selection, product availability, innovative technology, and better product information.
- CEO Jeff Bezos is not interested in entering the physical world.
- Which of Amazon's core competencies will drive its strategy in the future?
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Strategic Planning
- A managerial process to develop and maintain a viable fit between the organization's resources and its market opportunities.
- Process identifies firm's goals for:
- Growth
- Competitive position
- Geographic scope
- Other objectives, such as industry, etc.
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ESP: Environment, Strategy, and Performance
- The e-marketing plan flows from the organization's overall goals and strategies.
- The ESP framework illustrates the relationships among environment, strategy, and performance.
- A SWOT analysis of the business environment leads to the development of strategy and the measurement of performance (P).
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Strategy
- Strategy is the means to achieve a goal.
- E-business strategy
- Strategy that deploys enterprise resources to reach performance objectives, competitive advantage.
- E-marketing strategy
- Strategy that capitalizes on information technology to reach marketing objectives.
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Business Models
- A business model is a method for long-term survival and a value proposition for partners and customers to generate revenue.
- E-business models include the use of information technology to achieve long-term goals.
- Firm selects one or more models as strategic initiatives to accomplish enterprise goals.
Selecting a Business Model
- A firm will select one or more business models as strategies to accomplish enterprise goals.
- Components of business model selection:
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| Customer value | Scope |
|---|---|
| Price | Revenue source |
| Connected activities | Implementation |
| Capabilities | Sustainability |
Level of Commitment to E-Business
Level of business Impact
Pure dot-com
Pure
(Amazon, M
Business Transformation
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(competitive advantage,
industry redefinition)
Play
Bot
Enterprise
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(Del
Effectiveness
(customer
retention)
Business Process
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Efficiency
(cost
reduction),
Activity
Activity-Level Models
- Order processing
- Online purchasing
- Content publisher
- Business intelligence (BI)
- Online advertising and public relations
- Online sales promotions
- Dynamic pricing strategies on
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Business Process-Level Models
- Customer relationship management
- Knowledge management (KM)
- Supply chain management (SCM)
- Community building online
- Database marketing
- Enterprise resource planning (ERP)
- Mass customization
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Enterprise-Level Models
- E-commerce, direct selling, content sponsorship
- Portal
- Social networking
- Broker models
- Online exchange, hub
- Online auction
- Agent models
- Manufacturer's/selling agents
- Shopping agent
- Reverse auction
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Enterprise-Level Models
- E-commerce, direct selling, content sponsorship
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Online transactions
Manufacturer to seller
Sell advertisement on their web
Enterprise-Level Models
- E-commerce, direct selling, content sponsorship
- Portal
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Point of entry to the internet
Include destination for news, games, maps
Yahoo
Enterprise-Level Models
- E-commerce, direct selling, content sponsorship
- Portal
- Social networking
- Broker models
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Intermediaries -negotiations
E*TRADE
Converge B2B (exchange of electronic components
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Online Auction (eBay)
Enterprise-Level Models
- E-commerce, direct selling, content sp
- Portal
- Social networking
- Broker models
- Online exchange, hub
- Online auction
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- Agent models
ONLINE AGENTS EARN COMMISSION FOR THEIR
Make My Trip
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Manufacturers Agents : more than one seller. (c
METAMEDIARY : represents of clusters of manuf
content providers
Reverse Auction : individual buyer to enter the p
Purchasing Agents : represents Buyers. (mysimo
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A virtual MadnkHost an Website mall and collect
Pure Play Models
- Pure plays are businesses that began on the internet.
- They represent the top level of the E-Business model.
- Pure plays face significant challenges.
- They must compete as new brands.
- They may need to take customers away from established businesses.
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- Some pure plays have redefined industries.
Performance Metrics
- Performance metrics are specific measures used to evaluate the effectiveness and efficiency of operations.
- Performance metrics:
- Provide measurable outcomes.
- Must be easy to understand and use.
- Must be actionable.
- Can be utilized for employee evaluation.
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Social Engagement Metrics
- Online measurement also includes metrics for evaluating Web 2.0 technologies.
- Social engagement metrics allow marketers to see how visitors participate, not just whether they visit a page.
- Time spent viewing a video, playing a game, or listening to music.
- Writing a comment on a blog.
- Downloading a MP3 file, ring tone
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The Balanced Scorecard
- The Balanced Scorecard provides a framework for understanding e-marketing metrics.
- The Balanced Scorecard provides 4 perspectives:
- Customer perspective
- Internal perspective
- Learning and growth perspective
- Financial perspective
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The Balanced Scorecard
| Customer perspective | Internal business perspective | Innovation & Learning Persp | |||
|---|---|---|---|---|---|
| Goals | Measures | Goals | Measures | Goals | Me |
The Balanced Scorecard: Customer Perspective
- The customer perspective scorecard includes measures for goals such as customer loyalty, appropriateness of target markets, etc.
- Loyalty and satisfaction measures may include the percentage of visitors who return to the site between visits.
- Transaction measures may include measures such as unique visitors, online sales abandonment.
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The Balanced Scorecard: Internal Perspectives
- The Internal perspective scorecard includes measures goals related to the quality of online services.
- Quality of online technical help support and time to answer e-mail
- Web page loading time
- Inventory levels, inventory turns
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The Balanced Scorecard: Learning and Growth Perspecti
- The learning and growth perspective scorecard includes ways to measure goals related to online service innovation and continuous improvement.
- Average time from concept to start
- Speed to match a rival's site
- Time between site relaunches
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The Balanced Scorecard: Financial Perspectives
- The financial perspective scorecard includes measures for financial goals.
- Sales growth and market share
- Return on invested capital
- Average order value
- Individual customer profit
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This download link is referred from the post: VTU MBA Lecture Notes - 1st Sem, 2nd Sem, 3rd Sem and 4th Sem || Visvesvaraya Technological University
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