E-marketing knowledge

7/30/2019 E-marketing knowledge

1/28

Overview

Unit I:Setting the context for E-Marketing

Convergence- Background, Current state, andfuture potential of e-marketing.

Strategic E-Marketing Achieving objectivesthrough strategies involving e-business and e-marketing.

E-Marketing Plan- Creating an e-marketingplan and steps in e-marketing planning.


2/28

E-Marketing Plan - StrategyFormulation and Implementation

E

Legal-EthicalTechnologyCompetition

Other Factors

Internet Markets

SE-BusinessStrategy/

Model

E-Marketing Plan

E-MarketingStrategy

ImplementationMarketing Mix/CRM

P Performance Metrics

SWOT


3/28

Steps 2, 3, and 4 of theE-Marketing Plan

Segmentation

Targeting

Value(Price)

Differentiation

CRM/PRM

Positioning

Communication(Promotion)

Distribution(Place)

Offer(Product)

Step 3

E-Marketing Objectives

Step 4

Tier 2 Tasks

Step 2Tier 1 Tasks


4/28

Overview

Unit II: E-Marketing Environment

Global Markets- Differences in Internet access

& usage as a foundation for segmenting andtargeting specific markets.

Ethical and Legal Issues


5/28

1. Marketing Knowledge

2. Consumer Behavior

Unit III: E-Marketing Strategy

3. Segmentation and Targeting Strategies

4. Differentiation and Positioning Strategies


6/28

1. Marketing Knowledge


7/28

Lesson Overview Identify the three main sources of data that e-

marketers use to address research problems. Discuss how and why e-marketers need tocheck the quality of research data gatheredonline.

Explain why the Internet is used as a contactmethod for primary research and describe themain Internet-based approaches to primaryresearch.

Contrast client-side, server-side, and real-space approaches to data collection.

Highlight four important methods of analysisthat e-marketers can apply to data warehouse

information.


8/28

Nestle Purina PetCare Company wanted toknow whether their web sites and onlineadvertising increased off-line behavior.

Nestle developed 3 research questions:

Are our buyers using our branded Websites?

Should we invest in other Web sites? If so, where should we place the

advertising?

The Purina Story


9/28

The Purina Story, cont.

They combined online and off-line shoppingpanel data and found that:

Banner clickthrough was low (0.06%).

31% of subjects who were exposed to both

online and off-line advertising mentionedPurina.

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?


10/28

Data Drives Strategy

Organizations are drowning in data.

Purina, for example, sorts through hundredsof millions of pieces of data about 21.5 millionconsumers to make decisions.


11/28

Terabytes of Corporate Data:Growth Rate from 1999-2003

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

1999 2000 2001 2002 2003


12/28


13/28

From Data to Decision at Purina

Decision Lets put banner ads on about.com

Knowledge

Dog owners who see ads online are likely tovisit Purina ONE. We know the sites theyvisit: about.com, www.petsmart.com

Information

1. Purina buyers are 20 percent more likely to

visit about.com2. 36 percent of dog owners who see Purinaads would buy the brand

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


14/28

Knowledge management is the process ofmanaging the creation, use and disseminationof knowledge.

Examples of the uses of knowledgemanagement can be found in the next slidewhich provides the same in Telecom and

Retail for some firms.

Marketing Knowledge Management


15/28

Uses of Knowledge ManagementUse in the Telecom Industry Representative Firm

Scanner Check-Out Data AnalysisCall Volume AnalysisEquipment Sales AnalysisCustomer Profitability AnalysisCost and Inventory AnalysisPurchasing Leverage with SuppliersFrequent-Buyer Program

Management

AT&TAmeritechBelgacomBritish TelecomTelestra AustraliaTelecom IrelandTelecom Italia

Use in the Retail Industry Representative Firm

Scanner Check-Out Data AnalysisSales Promotion Tracking

Inventory Analysis and DeploymentPrice Reduction ModelingNegotiating Leverage with SuppliersFrequent-Buyer Program

ManagementProfitability Analysis

Product Selection for Markets

Wal-MartKmart

SearsOsco/Savon DrugsCasino SupermarketsW. H. Smith Books

Otto Versand Mail Order

Amazon.com


16/28

The Marketing Information System

Marketers manage knowledge through amarketing information system (MIS).

Many firms store data in databases anddata warehouses.

The Internet and other technologies havefacilitated data collection.

Secondary data provides information about

competitors, consumers, the economicenvironment, etc.

Marketers use the Net and othertechnologies to collect primary data about

consumers.


17/28

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


18/28

Secondary data

Can be collected more quickly and less

expensively than primary data.

Secondary data may not meet e-marketersinformation 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 themacroenvironment.


19/28

Public and Private Data Sources

Publicly generated data - such as fromGovt agencies, Govt departments, Libraries,Professional associations etc

Privately generated data - such as fromCompany Web sites, Research firms, Onlinenewspapers etc

Online databases - such as News, Industry

data, Encyclopedias, Yellow Page directoriesetc


20/28


Competitive Intelligence Involvesanalyzing the industries in which a firmoperates as input to the firms strategicpositioning and to understand competitor

vulnerabilities. Sources of CI may include

Press releases,

New products,

Alliances and co-brands

Trade shows, etc


21/28


Information Quality - Data are subject tolimitations. Steps that can be taken toevaluate the quality of secondary datacollected 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 findingsimilar information at other sources on theInternet or in hard copy at the library, etc


22/28

Primary Data

Primary data are information gathered for the first

time to solve a particular problem. Two electronicsources 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 technology-enabled gathering of information offline.


23/28

Research Problem

Research Plan

Research Approach

Sample Design

Contact Method

Instrument Design

Data Collection

Data Analysis

Distribution of Findings

Primary Research Steps

l l h bl


24/28

Typical Online Research Problem

Pages viewed most oftenIncrease site "stickiness"

(stay longer)Test site icons and

organization

Path users take throughthe site - is it efficient?

Site visit overall satisfaction

Test advertising copyTest new promotionsCheck coupon effectivenessMeasure banner ad click-

through

Improve online merchandisingForecast product demandTest new productsTest various price pointsTest co-branding and

partnership effectivenessMeasure affiliate programeffectiveness

Identify new market segmentsTest shopping satisfactionProfile current customersTest site customization

techniques

Web Sites

PromotionsCustomers and Prospects

Online Retailers


25/28

Firms Using Online Primary Research

0

1020

30

40

50

60

70

8090

OnlineSurveys

100

E-mailSurveys

OnlineFocusGroups

BulletinBoard Focus

Groups

Web SiteUse

Measures

71% of research firms in U.S.

use online primary research


26/28

Advantages

Can be fast and inexpensive.

Surveys may reduce data entry errors.

Respondents may answer more honestlyand openly.

Disadvantages

Sample representativeness. Respondent authenticity.

Researchers are using online panels (Opt-in)to combat sampling and response problems.

Online Research Advantages &Disadvantages


27/28

Other Technology-EnabledApproaches

Client-side Data Collection

Cookies

Use PC meter with panel of users to trackthe user clickstream.

Server-side Data Collection

Data log software

Real-time profiling tracks users movementsthrough a web site.

R l S D t C ll ti St


28/28

Real-Space Data Collection, Storage,and Analysis

Offline data collection may be combined withonline data.

Transaction processing databases move datafrom other databases to a data warehouse.

Data collected can be analyzed to help makemarketing decisions.

Data Mining

Customer Profiling

Recency, Frequency, Monetary (RFM)Analysis

Report Generating

E-marketing knowledge

Documents

Transcript of E-marketing knowledge