Chapter 6: E-Marketing

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18 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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Chapter 6: E
-
Marketing

Introduction


E
-
Marketing is a subset of e
-
Business that
utilizes electronic medium to perform
marketing activities and achieve desired
marketing objectives for an organization.
Internet Marketing, Interactive Marketing and
Mobile Marketing for example, are all a form
of e
-
Marketing.

Advantages of E
-
Marketing


Reduction in costs through automation and
use of electronic media


Faster response to both marketers and the
end user


Increased ability to measure and collect data


Opens the possibility to a market of one
through personalization


Increased interactivity


O.Gukhool
-

University of Technology,
Mauritius

Disadvantages of E
-
Marketing


Lack of personal approach


Dependability on technology


Security, privacy issues


Maintenance costs due to a constantly
evolving environment


Higher transparency of pricing and increased
price competition


Worldwide competition through globalization


O.Gukhool
-

University of Technology,
Mauritius

Accelerated Marketing


E
-
Business offers the ability to accelerate all
the processes involved in buying, selling,
manufacturing and distribution. Linking of
processes can be :


Between companies


Between companies and customers

O.Gukhool
-

University of Technology,
Mauritius

E
-
Marketing Tools


The Internet has a number of tools to offer to the
marketer.


A company can distribute via the Internet e.g.
Amazon.com.


A company can use the Internet as a way of building
and maintaining a customer relationship e.g.
Dell.com. (Build to order)


The money collection part of a transaction could be
done online e.g. electricity and telephone bills.


Leads can be generated by attracting potential
customers to sign
-
up for short periods of time, before
signing up for the long
-
term e.g. which.co.uk.


O.Gukhool
-

University of Technology,
Mauritius

E
-
Marketing Tools
(Cont’d)


The Internet could be used for advertising


Banner Advertisement


Sponsorship


Classified Listing


Email Marketing


Search Engine Marketing


Finally, the web can be used as a way of
collecting direct responses e.g. as part of a
voting system for a game show.


O.Gukhool
-

University of Technology,
Mauritius

Build
-
To
-
Order


Improving manufacturing efficiency through
better coordination of activities


E.g

Dell Computers


Dell sells computers directly to customers


Dell receives order on the net, assemble the PCs
and ship the PCs in just 4 hours


PCs are built or assembled in respect to an order


Enables Dell to significantly reduce inventories,
saves warehousing costs.

O.Gukhool
-

University of Technology,
Mauritius

New Product Development


Use of an information acceleration system to
create virtual worlds, which capture several of
the most important aspects of the new product
purchase decision.


Allows behaviours of consumers to be studied in
a test environment


Benefits if using information acceleration systems
are that if marketers can create realistic systems
that measure consumer demand of artificial
products they can replace expensive prototypes
and dramatically reduce design time.

O.Gukhool
-

University of Technology,
Mauritius

Virtual Marketplace


Can be categorised into 4 virtual
marketplaces:


A virtual Information Space


A virtual Communication Space


A virtual Distribution Space


A virtual Transaction Space

O.Gukhool
-

University of Technology,
Mauritius

Virtual Information Space


Consists of new internet based channels
through which economic agents can display
information about themselves, their products
and services they offer.


Includes sites providing information such as
catalogues of products, information services
providing financial information and bulletin
boards advertising, employment opportunities

O.Gukhool
-

University of Technology,
Mauritius

Virtual Communication Space


Includes new opportunities in which economic
agents can exchange ideas and experiences,
influence opinions or negotiate.


E.g. Chat rooms and video conferencing

O.Gukhool
-

University of Technology,
Mauritius

Virtual Distribution Space


Consists of new distribution channels for a
variety if products and services.


The first category includes those products that
can efficiently be distributed by means of the
internet (e.g. software, digital music, etc.)


The second category includes services such as
text, voice or video based consulting and
training.

O.Gukhool
-

University of Technology,
Mauritius

Virtual Transaction Space


Consists of new internet based channels
through which economic agents can exchange
formal business transactions such as orders,
invoices, and payments


This can range from simple email and online
order forms to online ordering using credit
cards

O.Gukhool
-

University of Technology,
Mauritius

Virtual Marketing Activities

Advertising

Retailing

Distribution

Payment

O.Gukhool
-

University of Technology,
Mauritius

Online Advertising


The most popular form of web advertising is
banner ads


Interstitial advertisements pops up a separate
window


Superstitial

advertisement, adverts appear
during ‘dead time’ e.g. while a page is being
loaded


Rich Media expanding banners

O.Gukhool
-

University of Technology,
Mauritius

Online Retail


Mimics aspects of real store


E.g. webcam can be used to provide live video
images of the store and the staff

O.Gukhool
-

University of Technology,
Mauritius

Online Distribution


The internet is ideally suited for distribution of
digital products and services


Many software companies are now using the
internet for software distribution, particularly
for updates


Increasingly more and more entertainment
product will be distributed online

O.Gukhool
-

University of Technology,
Mauritius

Online Payment


Credit cards


Electronic Bill payment services


Offer facilities to users to have online bills form
websites access to their telephone bill using
special software

O.Gukhool
-

University of Technology,
Mauritius

Database and Customer Relationship
Marketing



Database marketing uses data collected and
held in customer databases to better serve the
customer

O.Gukhool
-

University of Technology,
Mauritius

Customer Relationship Management


Customer relationship management (CRM) focuses on using
information about customers to create marketing strategies
that develop and sustain desirable long
-
term relationships.


A focus on CRM is possible in e
-
marketing because of
marketers’ ability to target individual customers.


The ability to identify individual customers allows
marketers to shift their focus from increase
share of
market

to increasing
share of customer
.


CRM is often based on the use of information technology.


O.Gukhool
-

University of Technology,
Mauritius

Digital Marketing Cycle

O.Gukhool
-

University of Technology,
Mauritius

Digital CRM Technologies

O.Gukhool
-

University of Technology,
Mauritius


Cookies


They are small data files that are written to the
user’s hard drive when the user browses a website
or fills in a registration form


Once stored it can be re
-
accessed the next time
the user visits the relevant websites, e.g. to show
previous orders or the last page visited


E.g. can be used to greet a user

Digital CRM Technologies
Cont’d


Mailing List and Push Technology


Cookies allow for targeted but unsolicited
advertising


Another way is to advertise by request


This can be done using mailing list and push software


E.g. link news story to a client profile

O.Gukhool
-

University of Technology,
Mauritius

Personalisation Systems


Products with a few simple attributes compete
primarily on price and value, so
personalisation system is one that allows
customers to find the best deal that meet
their requirements


Products with complex and qualitative
attributes will need to take into account
factors such as lifestyles and perceptions

O.Gukhool
-

University of Technology,
Mauritius

Personalisation Systems
Cont’d

Endorsement

Collaborative

Filtering

Rule Based

CASE
(Computer
Assisted Self
Explication)

O.Gukhool
-

University of Technology,
Mauritius

Products Attributes

Quantitative,
Few

Qualitative,
Complex

Customer Needs

Uniform

Highly
Differentiated

Personalisation Systems
Cont’d


Rule based systems use information that the
company develops about its customers to
make educated guesses about special offers,
promotions and information that the company
provides to visitors.

O.Gukhool
-

University of Technology,
Mauritius

Personalisation Systems
Cont’d


Computer
-
assisted self explication systems
work by asking visitors a series of questions
about what they like in order to narrow down
choices


E.g. IBM Advisor Software that helps users
select appropriate PC’s

O.Gukhool
-

University of Technology,
Mauritius

Personalisation Systems
Cont’d


Endorsement systems are used when the
products needs of consumers do not differ
greatly and quantifying attributes of available
products is difficult. E.g. all consumers wants a
plumber to be honest and offer a good service


E.g. Looking for financial advisers

O.Gukhool
-

University of Technology,
Mauritius

Personalisation Systems
Cont’d


Collaborative filtering is used when the product
space is complicated and preferences are highly
subjective, qualitative and complex


The system works by matching different users
who seem to have similar profile on the basis that
people who share similar tastes


Collaborative filtering relies on statistical
methods based on correlation between users
preferences to develop recommendations


Process for collaborative filtering


1. query, 2.
define profile, 3. rank, 4.
present items

O.Gukhool
-

University of Technology,
Mauritius