e - Marketing

e-marketing or web marketing is the way of marketing product and services through advertisements posted on search engines, social media sites and websites.

Example Google, Facebook, Rediff, other browsing and information websites.

90% of Googles revenues are derived from advertising programs.

Global e Commerce Revenue($ in million)Region 2009 2010 2011 2012 2013

US 144124 165,791 187,693 212,253 235,289

Europe 188,446 195,174 210,876 246,651 283,014

Asia 107,078 155,718 208,953 266,560 323,065

Rest of World

41963 55811 73113 95047 121,660

2009 2010 2011 2012 2013

REST OF WORLDASIAEUROPEUS

ONLINE SHOPPING GENERATION PENETRATION

0%5%

10%15%20%25%30%35%40%

20072010

TRADITIONAL MARKETING If marketing is whatever you do to promote the sale of your

products or services, then it should include :1. Market research from competitive informationgathering

to industry awareness to soliciting customer opinions and preferences.

2. Publicity from press releases to the positioning of your company and its offering in the marketplace.

3. Advertising that is textbased (classifieds) and graphicbased (displays).

4. Sales, included distribution and merchandising.5. Customer service and customer support.

Traditional marketing seems to fall far short of three features. There are certain problems associated with it, which can be listed as follows:

Traditional marketing is often expensive.

Traditional marketing can be a very timeconsuming process.

Traditional marketing often has a hit and miss quality.

IDENTIFYING WEB PRESENCE GOALS

On the web, businesses and other organizations have the advantage of creating a space of their own choice, design and other embellishments, good enough to make a distinctive presence.

A website can have images, and can activate them by animation, thus making the customers feel and enjoy its presence.

Different firms, even those in similar business, may establish different web presence goals.

Example - Coca Cola and Pepsi.

1. ACHIEVING WEB PRESENCE GOALS

1. Attracting visitors to the website.2. Making the site interesting enough so that visitors

stay and explore.3. Convincing visitors to follow the sites links to obtain

information.4. Creating an impression consistent with the

organizations desired image.5. Building a trusting relationship with visitors.6. Reinforcing positive images that the visitors might

already have about the organization.7. Encouraging visitors to return to the site.

2. Uniqueness of the Web

Websites that are designed to create an organizations presence in the web medium include links to a fairly standard information set.

These sites give visitors easy access to its history, statement about its objectives or mission, information about products or services offered, financial information, and means of communication with the organization.

3. Meeting the needs of website visitors Learning about products or services that the company

offers. Buying the products or service that the company offers. Obtaining information about warranties or service and

repair policies for products they purchased. Obtaining general information about company or

organization. Obtaining financial information for making an investment

or credit granting decision. Identifying the people who manages the company or

organization. Obtaining contact information of a person or a dependent

in the organization.

4. E marketing Value Chain

Customer acquisition ( Pre

Purchase Support )

Customer support (

During Purchase )

Customer fulfillment

Customer support ( Post

Purchase )

5. Site adhesion : content, format, and access

Content initially customer will want to navigate quickly to gain a clear understanding of sites progressions to more detailed information. (match user psychology and tech sophistication).

Format selection of data format is crucial, as initially the goal is to create viewer interest and engage the viewer in a prolonged interaction.

Access online data access depends on the bandwidth requirement.

6. Maintaining a website

One of the best ways to accommodate a broad range of visitors needs is to build flexibility into the websites interface.

Some sites offer separate version and give visitors the option of choosing either one.

To be successful in conveying an integrated image and information to potential customers, business should try to meet the following goals when constructing their websites : Convey an integrated image of the organization. Offer easily accessible facts about the organization . Allow visitors to experience the site in different ways and at

different levels. Provide visitors with a meaningful, two way (interaction)

communication link with the organization. Sustain visitors attention and encourage return visits. Offer easily accessible information about products and

services and how to use them.

7. Metrics defining internet units of measurement

To measure parameters associated with the web and websites in order to assess two things

Advertising how many people saw our banner ad?

Visitation how many people came to our site?

Direct and Indirect Metrics

Organization in the online customer acquisition phase have attempted to refine some of the indirect matrices to their needs, by understanding their limitations. These include the following

1. Click through captures2. Time spent3. Time spent searching 4. Time spent before click through5. E mails and telephone calls.6. Registered users.

The Browsing Behavioral ModelBrowsing Behavior model of an online video store 1. Connect to the homepage and browse the site by following links

to bestseller videos and promotion of the week per videos category.

2. Search for titles according to various criteria including keywords and titles.

3. Select one of the videos that results from a search and views additional information such as brief description of product.

4. Register as a new customer of the virtual videos store.5. Login with a username and password.6. Add items to the shopping cart.7. Pay for the items added to the shopping cart.

1. Browser Behavioral Model Graph (BBMG)

Entry Home Login Register Search Browse Select Add to chart Pay (billing) Exit

2. Aggregate metrics for E Business sitesCategory function Description

Common

retail

information

Login Register SearchSelect

BrowseAdd items

Remove itemsSee shopping cart

Create registryAdd to registryCheck status

PayDownloadSubscribe

Listenwatch

Login to the siteRegister as a new userSearch site database

View one of the result of a searchFollow links within the stateAdd items to shopping cart

Remove items from shopping cartCheck contents and value of shopping cart

Create a gift registryCheck status of previous orderPay for items in shopping cart

Download software/report/musicSubscribe to regular download

Listen to real time audioWatch real time movie

Many metrics have been used to assess the success of site in terms of popularity and/or revenue generation

Hits /second Page views / day Click through Unique visitors Revenue throughput Potential loss throughput

Online marketing

Online marketing means using the power of online networks, computer communications and digital interactive media to reach your marketing objectives.

Cyberbuyers

Cyberconsumers

Cybersurfers

1. How should buyer pay online? Sends in a cheque, or calls and verbally transmits a credit card number,

over the merchant telephone.

The consumer.1. Sets up an account with a merchant or a third party org.2. Leaves her or his card no. by means other than the internet3. Gives merchant the authorization to bill the account, whenever consumer chooses to buy.

The consumer leaves his credit card no, on an unsecure online order form.

Consumer uses secure client software program to transfer his or her encrypted credit card number to a secure merchant server.

The consumer exchanges traditional currency for some form of digital currency, and then spends unit of currency whenever and wherever he or she likes.

2. Advantage of online marketing Online marketing offers bottom line benefits that tie in directly to the

demands placed on the organization trying to make a transition into the new economy.

Online marketing can save money and help you on your marketing budget.Electronics versions of catalogues, brochures, and specification sheets do not have to be printed, packaged, stored, or shipped.

Online marketing can save time and cut steps from the marketing process. Online marketing gives customer another way to buy, while enabling then

then to take control of the purchasing process. Online marketing can be information-rich and interactive. Online marketing can offer you instant international reach and indeed,

online networks have created an instant global community. Online marketing can lower barriers to entry and offer equal opportunity

for access. Online marketing can be continuously available.

3. Various Businesses that Can Flourish on the Internet

Banking ATM, online banking, deposits, withdrawals, fund transfer, loans and other forms of transaction.

Databanks Convenient mechanism for searching databases are making information services user friendly as well.

Music Since it is recorded and stored digitally, music as well as the other audio products are the perfect products for distribution over the internet.

Retailing Two genres of online shopping malls are being set up by digital entrepreneurs. Multimedia catalogues and Supermarket Service.

E advertising Web based advertising has become an important part of a companys

media mix. Numerous companies are committing large advertising budget to the Internet

1. People increasingly prefer to surf the Internet rather than watch TV.

2. The target audience goes to the advertisement , rather than the other way around.

3. Development of business search engines by companies such as C2B Technologies, which aim to link buyers with online bargain for a million products for comparison shopping purposes.

4. To play, participants must provide certain data, including their preference of advertisement and tastes, which presents a valuable database as to customer preference.

5. The growth of e-business. 6. The internet is not geographically restricted.

1. Various Means of advertising E mail Banners Skyscrapers Banner swapping Streaming Video and Audio Effectiveness tracking, usage of cookies, to track where customer goes after the ads Mini-sites, Pop-ups Interstitials Sponsorships Coupons Pay Per Advertising View Loyalty Programs , Air Miles Partnership Innovative customer acquisition Providing information Leverage the Customer Base

Personalized online Communication Reduce Mass mktingexpenses and increase response rates

1. Permission marketing2. Personalization recommendation3. Personalization advertisement 4. Personalized Web pages5. Personalized e- commerce stores

2. Conducting online market research

Online Market/Research Process and Results

Problems definition and

research objective

Research methodology, data

collection plan

Data collection, data analysis

Results , recommendations,

implementation

Steps in collecting market research data

1. Define the research issue and the target market.2. Identify newsgroups and interest communities to study.3. Identify specific topics for discussion.4. Subscribe to the pertinent groups; register in

communities.5. Search discussion group topic and content lists to find the

target market.6. Search e-mail discussion group lists.7. Subscribe to filtering services that monitor groups.8. Enter chat rooms, whenever possible.

Content of the Research Instrument 1. Post strategic queries to group.2. Post surveys on your websites. Offer rewards for

participation.3. Post strategic queries on your websites.4. Post relevant contents to group with a pointer to your

websites surveys.5. Post a detailed survey in special e-mail questionnaires.6. Create a chat room and try to build a community of

consumers.

Target audience of the study1. Compare your audience with the target population.2. Determine your editorial focus.3. Determine your content.4. Determine what Web services to create.

Tracking customer movements on the internet. Limitations of online research although web user

demography is rapidly diversifying, it is skill skewed towards certain population groups, such as those with internet access.

3. Building customer relation based on one-to -one marketing.

One-to-One marketing is type of relation marketing. One to One marketing is a simple idea treat different

customer differently Increase loyalty in its own customers - One customer at a

time by establishing relationship with each customer, starting with most valuable customer.

Benefit of doing such business over internet is that enables companies to better understand their customers needs and buying habit, which in turn enables them to improve and frequency customize their future marketing efforts.

4. Market Segmentation

Company breaks thousands of customers into smaller Demographic segments & tailors its campaigns to each of those segments.

Consumer Market Segmentation In India

Geographic Region & State Size of state City District Village Population

density

Demographic Age Population Sex Education Religion Income

Psychosocial Social Classes Lifestyle Personality

Cognitive, Affective, Behavioral Attitude Perceived

Value Loyalty Usage rate

Problems Of Internet Marketing In India

Most Internet Users are Students Hence no self Income & limited money

Only 12% users are traders/businessmen Hence low level of web enablement of retailers

Only 4% of housewives (i.e. most potential segment for FMCG market) are internet users

Internet usage in IndiaE-mail 87%

General Info. Services 80%

Education info. Services 65%

Multimedia Services 45%

Internet Messengers 40%

Job Portals 33%

Live Gaming 16%

Financial info. 24%

Ticket Booking 18%

News 16%

Live Chat 14%Net

Banking 12%

Education profile of Internet users in India

UG8%

PG26%

Graduates37%

Professionals29%

Age profile of internet Users in India

15 to 24 yr42%

24 to 3431%

35+27%

Age Profile

Young Population Driving Internet growth

School Going kids14%

Young Men28%

Working Women8%

college Going Students

30%

Older Men13%

Non Working Women

7%

Points Of access for Internet

23%

38%

31%

4% 4%

Home Cyber Caf Office School/College Others

o Hence from this data it can be concluded thatIndia has immense potential for this field & isimmerging as exceptionally high computerusing population.

5. Data Mining & Market Research

Used to extract information from a data setand transform it into an understandablestructure for further use.

Used by marketers to analyzelarge chunk of buying data toanalyze buying habits.

Data mining Opportunities for Business

Automated prediction of trends & behaviors Automated discovery of previously un known

patterns

Data Mining Characteristics & objectives

Relevant database are easy to locate in very large data base

Retrieving the information buried in corporate files & public records

Retrieving relevant data without programming skills

Obtaining unexpected valuable results

Easy compatibility with other tool eg. Spreadsheets ensures easy analysis

Yields 5 types of Info. 1)Association 2)Sequences 3)Classifications 4)Clusters 5)forecasting

6. Measuring effectiveness of E-advertising

Measuring Web Audiences is much complicated aswebs interactivity as each visitor may voluntarilyprovide or refuse to provide information & the value ofvisitor for advertiser depends on how much info. Thesite gathers from a visitor.

Each time a visitor loads a page is counted as a pageview

If page contains an ad it is known as ad view If the page has a banner ad which loads & reloads

again it is known as Impression If the visitor clicks a Banner ad to navigate to

advertisers page it is known as Click-through'

A Banner Ad on you Tube

Banner ads are sold as Cost per thousandImpression

Cost depends on how much demographic infocan be collected about the visitor by the site

Companies compare cost of acquiring onecustomer through web by with the same foracquiring through traditional channels

Criteria CRM E-CRM

Advertising Push & Sell a uniform message to all customers

Provide info. In response to specific customer enquiries

Targeting Market Segmentation Identifying and responding to specific customer behaviours& preferences

Promotions Same for all Customers Individually tailored to customers choice

Distribution Channel Through Intermediaries chosen by the seller

Direct or through Intermediaries

Product pricing Set by the seller to all customers

Negotiated with each customer

New product Features Determined by the seller for all customers

Created in response to customer demand

Measurements used to measure Customer Relationship

Market share; profit Customer retention; total value of the indivisualcustomer relationship

E Branding

Online Co. putting branding to work with remarkable success

7 top internet companies brands recognisedby over 50mn. users only in U.S. making them Mega brands

Eg. Microsoft.com, Amazon.com, yahoo.com,Netscape, Priceline, Infoseek, Excite etc

E Branding Criteria

Element Meaning to the customer

Differentiation In what significant way the product is unlike its competitor?

Relevance How this product or service fit into my life?

Perceived Value Is this product or service good?

Spiral Branding:Spiral branding includes the ability to identify yourbest customers or prospects immediately, deliverthe common voice and serve relevantcommunication that is of specific interest to yourtarget customer.

Has 3 Stages: First use TV & Radio ads to attract peoples

attention & send them to web Use Web to get those customers interested &

gather there info. E-mail closes the loop & take people around the

spiral again

Keys of Spiral Branding: Use each media for its best purpose Do it fast Iterate constantly

Search Engine Optimization: Half of all web users cite search engines as

their primary portals to new sites Marketers re-examine their strategies for

optimizing their rankings in search results

Google Ads Placed above the normal search results with

minor color diff. in background

Affiliate networks: These typically reward referring to sites with

commission based on click through or completetransactions

Advocacy Marketing: Online marketers provide E news letters or incentives

to pass on to there friends who act as marketingadvocates to their friends. Word of mouth.

Permission E-mail: Emails sent with customers permission opted for

when making account on the site provide an optionfor Customer Relationship Building & maintenance bypassing on special tailored offers.

Permission to send

promotional news & offer

Info.

Brand leveraging strategies:Existing websites extend there dominantpositions to other services on the web

Some Marketing Strategies

Google is an eg of Brand leveraging

From Search Engine to Email to media Streaming, Cloud Computing & Social

networking Etc.

Affiliate-marketing Strategies:A web site affiliates it self to another sitewhich may have more traffic. For every visitorwho navigates from this to the sellers site theaffiliate's site receives a commission.

Affiliated sites to facebook

Viral Media Marketing:Comprises of marketing techniques that use pre-existing social networks and other technologiesto produce increases in brand awareness or toachieve other marketing objectives throughreplicating viral processes.Viral marketing may take the form of video clips, interactive Flash games, ebooks, brandablesoftware, images, text messages, email messages, or web pages.

Dabur Vatikas Facebook campaign egfor viral marketing

Social Media Marketing & Content Marketing:Marketers post information, articles orinteractive activities which would be of greatinterest or would enhance the knowledge of apotential customer from their companieswebpage on to the social media sites so thatinterest is generated into their page andultimately in their products.

Excerpts from ITCs Vivel facebook page

Advertising supported Model

Amongst one of the majour dillemas faced by thewebsites owners is the issue that how will a websiteearn money.

To solve this query some website owners deliver paidservices over the internet others sell their products tothe customers.

Where as some of the major names in the cyber spacerender there services for free to increase there clientbase and achieve prominence over the Web.

These websites earn from the ads placed over them byother business owners

A perfect Eg. Of this model is google.com Google.com which is a $72.5Bn. Organization mainly

earns its profits from:1. Charge advertisers for presenting online "banner" ads to

users2. Collect marketing data on consumer habits, then selling

the data or using it for targeted advertising.3. Charging websites to become listed4. Charging websites for better placement in lists5. Charging websites to purchase keywords for themselves6. Charging other search engines to use their catalog