Introduction to E-Marketing

E-Marketing stands for electronic marketing, is also known as Internet marketing. In contrast to
traditional marketing, E-Marketing takes marketing techniques and concepts, and applies them
through the electronic medium of the internet. Essentially, E-marketing threads the technical
and graphical aspects of online tools together, allowing for design, advertising, brand
development, promotion and sales. Internet marketing offer the possibility to tracking almost
every action a visitor or potential customer takes in response to marketing messages and how
they navigate through their buying cycle. One of the most desirable aspects of Internet
marketing is low barrier to entry.

Landscape – Past – Today – Future – Internet Marketing

Considering the current volume of Internet marketing business, it‟s hard to believe how young
the Internet marketplace actually is. Cumulative events leading up to where we are now have
impacted the entire globe faster than any marketing revolution in history.

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In 1994, spending for Internet marketing totalled practically nothing, but by 1995, the figure
stood at over $300 million. Now, 21 years later, e-marketing spending and the Internet
marketingbusiness have exploded to nearly with a prediction.

Today, it‟s hard to believe an organisation exists which doesn‟t have some kind of online
presence.

As websites have multiplied beyond anyone‟s imagination, searching for them has become
increasingly important. Websites have become the first contact for many customers with a brand.

By the year 2000, heading into the new millennium, Google was (and still is) the dominant
search engine and Search Engine Optimisation (SEO) was born. SEO specialists interpreted the
Google search algorithm and built websites that complied with the way their spiders wanted to
assess the quality of content.

Google assessed the authority of links from a website by grading it from 0-10 and giving it a
rank. Links to a website increase authority, pushing it further up Google‟s search results.
HighGoogle rankings have become valuable commodities.

The next „game-changers‟ were blogs. The structure and nature of blogs gave them a head-
startin Google‟s search engine results.

YouTube, Facebook, Flickr and Twitter are now some of the most important channels that
marketers need to broadcast on. Doing well on these platforms not only boosts SEO results,
italso pushes links to appear in all the other types of searches.

Google has started to lose its grip on web traffic dominance as Facebook grows. Comments and
likes from users are becoming a new commodity for brands. Traffic no longer needs to be
directed back to a website because we can engage and convert our customers right there on
theirchosen social platform.

And more change is on the way. Like Whatsapp,Instagram etc…

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Mobile devices are overtaking computers as the primary method of accessing information and
interacting on the Internet. We’re going local, and big players like Google and Apple are gearing
up for it. Local marketing is going to change the game again, but that’s another story.
World Wide Web, commonly known as „WWW‟, was first launched in 1991.

Web 1.0 was the first reiteration. Actually it was called „The Internet‟ not version 1 or Web1.0. It
was generally used before 1999 when experts called it the Read -Only era.

Web 2.0 was responsible for the development of various sites that we commonly use today
likeTwitter, Flickr and Facebook.

Web 3.0 is known as the third generation of World Wide Web. It has everything that we
couldever wish for. Advancements in Web 3.0, we have become empowered to do many
things thatwe may have never dreamed of. But this not the end, as with the time we will get
to see more advancements in World Wide Web that will make internet surfing an amazing
experience.

Paradigm – Internet Infrastructure Stack Business Models & Strategies:

The technical infrastructure of the Internet is portrayed in Figure 1.4.

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Internet infrastructure includes transmission media, including network cables, satellites
andantennas, and routers, repeaters, and other devices that control transmission paths.

Technology infrastructure generally does not include the operating systems or software stack
above the hardware. However, where public WANs or public cloud are used, such transport
mechanisms, along with platform or software as a service, may be part of the overall
definitionof infrastructure.

Infrastructure must provide a suitable platform for all the necessary IT applications and
functionsfor an organization or individual.

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Forming the backbone of the stack is the telecommunications connection, either narrowband
or broadband. What is commonly referred to as the “Internet backbone” is actually a series of
networks run by various carriers. It is a redundant system that rarely experiences problems
that are visible to the average user and therefore remains essentially invisible. The average
computeruser gains access to the Internet via an Internet Services Provider (ISP), who in turn
accesses theservices of the backbone itself. The user of mobile devices must subscribe directly
to a mobile telecommunications service, so those carriers and the services they provide are
highly visible.
Wireless telecommunications are especially competitive as a result of deregulation efforts
aroundthe world.

Strategic Planning – Strategy to Electronic Planning –

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A managerial process to develop and maintain available fit between the organization and
itschanging market opportunities.
Process identifies firm’s goals for

 Growth
 Competitive position
 Geographic scope

Other objectives, such as industry, products, etc. 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 (E) leads to the development of strategy (S)
and the measurement of performance (P).

Strategic Drivers of the Internet Economy

1. Information provides the greatest value added.
2. Distance no longer matters.
3. Speed is of the essence.
4. People are the key assets.
5. Growth rates are accelerated by the network.
6. Value in a network rises exponentially with market share.
7. Market power is determined by skill in managing information.
8. Marketplace power has shifted in the direction of customers.
9. The Internet makes it possible to deal with customers on a one-to-one basis.
10. The era of instant gratification is here.
Business Model to E-business Models:
Traditional business models such as Retailing, selling, advertising & auctions have been
around ever since the first business set up shop. what makes an business model into e
business model isthe use of Information Technology.

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E-business model is a method by which the organization sustains itself in the long term using
I.T, which includes its value, proposition for partners & customers as well as its revenue
streams.
E-Business Models Classification a.Activity
Level E Business Models b.Business Process
Level E Business Modelsc.Enterprise Level
Business Model

Performance Metrics – The Balanced Scorecard

The only way to know whether a company has reached its objectives is to measure its
results,Performance Metrics,also called as Key performance Indicators (KPIs).
When acompany designates the performance metrics it will use to measure its
strategyeffectiveness,it does four important things:
*It translates its vision into components with measureable outcomes.Some emarketing
goalsneeding metrics include attarcting vivitors to websites for selling.

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*The Performance metrics must be easy to understand use.They should be accessible to
employees using for decision making,so organanization often settle on KPIs to monitor
progresstowards goals.
*Metrics must be actionnable; Companies often use benchmarking of last year’s metrics to decide
where they are which they can set metric goals for the future.
*Finally, when employee evaluation are tied to the metrics, people will be motivated to
makedecisions that lead to the desired outcomes.
Webanalytics is the e-marketing term for the study of user behavior on web pages.

The Balanced Score Card:

Several well known performance metrics systems include data in dashboards individualized to
anorganizations needs. The balanced scoprecard is a good framework for understanding
emarketing metrics, thus we present it as an organizational scheme for many performance
metrics.
The Balanced Scorecard provides 4 perspectives.
* Customer perspective: The customer perspective scorecard includes ways to measure
goalssuch as customer loyalty, satisfaction, appropriateness of target markets, etc.
*Internal perspective: The Internal perspective scorecard includes ways to measure
goalsrelated to the quality of online services.
*Learning and growth perspective: The learning and growth perspective scorecard includes
ways to measure goals related to online service innovation and continuous improvement.
*Financial perspective: The financial perspective scorecard includes ways to measure financial
goals.

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MODULE-II
E-Marketing Plan
Overview of the E-Marketing Planning Process:
The best firms have clear visions that they translate, through the marketing process, from e-
business objectives and strategies into e-marketing goals and well-executed strategies and
tacticsfor achieving those goals.
This marketing process entails three steps:
- Marketing plan creation,
- Plan implementation,
- Evaluation/corrective action.
The e-marketing plan is a blueprint for e-marketing strategy formulation and
implementation.The plan serves as a road map to guide the firm,allocate resources, and
make decisions.

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Pure plays = businesses that began on the Internet, even if they subsequently added a brick-
and-mortar presence. E.g. ETrade is a pure play, beginning with only online trading. Pure plays
facesignificant challenges: They must compete as new brands and take customers away from
established brick-and-mortar businesses. One way to change the rules is to invent a new e-
business model, as Yahoo! and eBay did.
Activity, Business Process and Enterprise Transformation:
• First of all the lowest level of commitment to e-business is not on the pyramid, there isn‟t
anye-business involvement at all. Many small local retailers and other business are at this level
and might be advised to stay there based on their customer basis and capabilities. Note how
the pyramid builds by adding clusters of related activities.
• The lowest level of the pyramid impacts individual business activities such as
order processing. In this low-risk area, the firm realizes cost reductions through e-
businessefficiencies.
• The next level of the pyramid impacts business processes such as customer relationship
management. The firm can actually improve customer retention and lifetime customer value
byautomating the business process via enabling software and tools.
• At the enterprise level of the pyramid, the firm automates many business processes in a
unified system. This is the first level in which the firm shows a significant commitment to e-
business.
E-business is defined as a sum of multiple business processes together, that is :
e-business = e-commerce + business intelligence + customer
relationship management + supply chain management + enterprise resource
planning.Creating an E-Marketing Plan
Creating an e-marketing plan is a process through which the firm develops a blueprint
forstrategic direction.
“The blueprint serves as a roadmap to guide the direction of the firm, to allocate resources, and
make tough decisions at critical junctures.” (Kalakota 1999)

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Napkin plan

create a just-do-it, activity-based, bottom-up plan.

The idea that many dot.com entrepreneurs were known to simply jot their ideas on a napkin
overlunch or cocktails and then run off to find financing. This is also known as the just-do-it,
activity-based, bottom-up plan
The Venture Capital E-Marketing Plan is a more comprehensive plan for entrepreneurs
seeking start-up capital.
Start-up companies need financing. Some of it is debt financed through bank
loans, though most of it is equity financed. A small part comes possibly from
private funds(friends and family), angel investors, who invest hundreds of thousands
of dollars, andventure capitalists (VCs) who invest millions of dollars. Venture
capitalists look for a well-composed business plan and more importantly a good team
to implement it. Everybusiness needs a marketing plan to maximize its resources.
The plan prepared byentrepreneurs for VCs shouldn‟t be longer than eight to then
pages, and will contain

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enough data and logic to prove that the e-business idea is solid, and the entrepreneur has
some idea of how to run a business.
Advantages and drawbacks of both the napkin plan and the venture capital plan

Napkin Plan

Advantages – Accidental discovery, Overcome staid corporate culture

Drawback – Lack of sound long-term planning and implementation plan
Venture Capital Plan

Advantage – Emphasis on strategic plan, comprehensive long-term plan,

forcesentrepreneurs to critically analyze their business, maximize
organization resources
Drawback – Focus is on exit plan for venture capitalists, maximize short-term
returns
Sources of Funding

*Bank loans
*Private funds
*Angel investors
*Venture capitalists (VCs)
Seven-Step E-Marketing Plan
1. Situation analysis
2. E-Marketing strategic planning
3. Objectives
4. E-Marketing strategy
5. Implementation plan
6. Budget

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7. Evaluation plan
STEP 1: SITUATION ANALYSIS :

iew the existing marketing plan and any other information that can be obtained about
thecompany and its brands.
-business objectives, strategies, and performance
metrics.

SWOT Analysis Leading to E-Marketing Objective

Opportunities Threats

1. Customer (online) markets 3. Pending security law means costly

growingand untapped in our software upgrades.
industry. 4. Competitor X is aggressively using e-
2. Save postage costs through e- commerce.
mailmarketing.

Strengths Weaknesses

1. Strong customer service department. 3. Low-tech corporate culture.

2. Excellent Web site and 4. Seasonal business: Peak is

databasesystem. summermonths.

E-Marketing Objective: $500,000 in revenues from e-commerce in one year.

STEP 2: E-MARKETING STRATEGIC PLANNING

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*Market and product strategies, called Tier 1 tasks or strategies, are outcomes of
strategicplanning.
 Segmentation
 Targeting
 Differentiation
 Positioning

*Marketers conduct analyses to determine strategies.

 Market opportunity analysis (MOA)

 Demand analysis
 Segment analysis
 Supply analysis

STEP 3: OBJECTIVES

An objective in an e-marketing plan may include the following aspects:

Task (what is to be accomplished)
Measurable quantity (how much)
Time frame (by when)
Most e-marketing plans have multiple objectives:
Increase market share
Increase the number of comments on a blog
Increase sales revenue

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Reduce costs
Achieve branding goals
Increase database size
Achieve customer relationship management goals
Improve supply chain management

Step 4: E-Marketing Strategies

Tier 2 strategies include strategies related to the 4 P‟s and relationship management to achieve
plan objectives.
* Product strategies: merchandise, content, services or advertising on its website.
*Pricing strategies: Dynamic pricing, Online bidding.
*Distribution strategies
 Direct marketing
 Agent e-business models
*Marketing communication strategies
*Relationship management strategies
Some firms use CRM (customer relationship management) or PRM (partner
relationship management) software to integrate customer communication and
purchase behavior intoa database.

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STEP 5: IMPLEMENTATION PLAN

*Tactics are used to achieve plan objectives

Marketing mix (4 Ps) tactics
Relationship management tactics

* Marketing organization tactics

Staff, department structure
* Information-gathering tactics
Website forms, cookies, feedback e-mail, website log analysis
Business intelligence and secondary research

STEP 6: BUDGET
*The plan must identify the expected returns from marketing investments, in order to develop:
Cost/benefit analysis
ROI calculation
internal rate of return (IRR) calculation
Return on marketing investment (ROMI)
*Revenues and Costs
 Revenue forecast
 Intangible benefits, such as brand equity
 Cost savings
 E-Marketing cost
 Technology
 Site design


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 Salaries
 Other site development expenses
 Marketing communication
 Miscellaneous

STEP 7: EVALUATION PLAN

Marketing plan success depends on continuous evaluation.
E-marketers must have tracking systems in place to measure results.
various metrics relate to specific plan goals.

*Today’s firms are ROI driven.

E-marketers must show how intangible goals will lead to higher revenue.
Accurate and timely metrics can help justify expenditures.

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Module III
The E-Marketing Environment

Overview of Global E-Marketing Issues – Users from other countries, speaking languages
other than English, will dominate the Internet.By2010 there were approximately 499 million
English-speaking and 407 million Chinese-speaking web users. The online marketplace is
changing and will require that global e-marketers understand country e-readiness. E-
marketersmust differentiate between industrialized nations and emerging economies.

Global Markets : Globalization has changed the way marketers conduct business. Market
placesthat either have been difficult to access because of their physical distance from company
headquarters or because of a consumer buying profile that did not match the firm’s core
customer is increasingly being targeted. Exhibit shows that worldwide Internet usage increased
more than 45% between 2007 and 2009.
 Asia has the most Internet users.
 Africa saw the greatest growth in Internet use.

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 North America has the highestpenetration as a percent of thepopulation.
Emerging Economies:Countries that have high levels of economic development (United States,
Canada, Japan, etc.) are classified as developed countries.
 Highly industrialized and use technology to increase their production efficiency.

 Countries that are still struggling with standards of living for their citizens are called
emerging economies and are poised for rapid technological growth. Emerging
economiesare characterized by a rapidly developing middle class, which creates
demand for products and services. Four countries represent the power and opportunity
in emerging markets: Brazil, Russia, India and China (BRIC).Countries with emerging
economies can be found on every continent.
Importance of Information Technology
Technology can increase a nations overall production capacity and efficiency. The Internet
accelerates the process of economic growth through diffusion of new technologies.
 Bangalore, India is the center of India’s explosive growth in software and IT.
E-marketers in emerging economies must meet marketing issues and unique challenges related
to the conditions of operating within a still developing nation.
*In economic development
 Information technology opens up new, exciting, global markets
 The Internet can jump-start many national economies
 Allows for instant access to a global marketplace

*Unique challenges in the still Developed countries

 Slow connection speeds

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 High costs of domestic phone calls
 ISP costs
 Privacy concerns
 Censorship
 Navigation difficulties
 Taxes
 Lack of content in one‟s own language
 Lack of local content
 Limited credit card use
 Lack of secure online payment methods
 Unexpected power failures

Country and Market Opportunity Analysis – Marketers in emerging economies must find
market similarities in order to be successful in selling products.

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E-marketing plan guides the marketer through the process of identifying and analyzing
potentialmarkets.
 Market differences and market similarities must be measured and compared
todetermine strengths and weaknesses.
Global e-marketers bust balance two different analytical approaches.
 Market differences
 Market similarity
Market differences are ways in which two markets exhibit dissimilar
characteristics.Market similarity refers to ways in which two markets exhibit
similar characteristics
If a firm is based in an emerging economy and wants to market to its home target, the
marketermust identify market differences within the population.
Marketers will choose foreign markets that have similar characteristics to their home market
forinitial market entry.
 All similar markets between developed countries have
 High literacy rates
 High Internet usage rates
 Clearly defined market segments willing to shop various products
 High Credit card usage rate
 Secure, trusted online payment mechanisms
 Efficient package delivery services
Diaspora Communities
 A large number of people living together in a common neighborhood or
cityabroad
 E-businesses in countries with emerging markets use market similarity to
targettheir own diaspora communities living abroad
 Market similarity can be seen in “market convergence” phenomena that
is“markets that were once very different become more similar over
time”
E-Commerce Payment and Trust Issues

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E-commerce in emerging markets is often disadvantaged by: Limited credit card use and
consumer skepticism.Customersdid not think shopping online was “fun”Customersdid not
“trust”online brands
*Firms reassured customers concerning online security
 Nepal, for example, is still predominately a cash-based economy
andcredit cards are scarce.
 In Bolivia, only 2.3 percent of the population has a credit card.
 Credit card use is virtually non-existent in Ethiopia.
E-marketers working in emerging economies should also understand attitudes toward
onlinepurchasing.
 A 2007 study in Lithuania found that 51% of Internet users had not made
anonline purchase because they thought it was too risky.
Alternative payments were accepted
 Bank transfers
 Cash on delivery
 Postal orders
 eBanka debit cards specifically created for online buying
 Czech Republic, eBanka, an Internet bank, was established in 1998
tohandle secure online purchases.
Consumer concern about online use of credit cards

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Technological Readiness Influences Marketing – E-marketers must deal with scary issues of
basic technology:
1. Limited access to and use of computers and telephones
2. High Internet connectioncosts
3. Slow Internet connections speeds
4. Unpredictable power supplies
Computers
*Historically, Internet connection is with a desktop PC and dial-up ISP
*Emerging economy countries do not have many privately owned computers
*Creates opportunities for local, small business entrepreneurs
Telephone
*Telephone land lines are entering the decline stage of their product life cycle
*As wireless technology increases, landlines will become less useful and
ultimately obsolete.
 Challenges
 Global computer ownership and access is unevenly distributed.
 Ownership ranges from 84% in Kuwait to 2% in Bangladesh.
 Telephones (and connectivity) can be scarce and expensive.
 Many consumers in countries with emerging economies access the Internet from
telecenters “small shops that offer Internet connections”.
 Many customers have cell phones, but not land lines

Countries with emerging economies often have higher Internet-related costs.

 If an emerging economy customer has a telephone, chances are the
Internetconnection costs are extremely high.
 Dial-up costs can vary considerably.
 Many customers in emerging economies have cell phones, but not land line.

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 Broadband connections are developing quickly and growth is predicted to come from
emerging markets.
 South Korea has one of the highest broadband penetration rates and one of the
World’s fastest, cheapest networks.
E-marketers must analyze the relationship between Web site design and customer’s connection
speeds.
 Many feel the dial-up era is quickly coming to an end
 Online companies with a diverse customer base must keep their Web sites
simple E-marketer’s must understand how connection speeds influence download rates
E- marketers and graphic designers must differentiate between what “can” be done and
what“should” be done.
Wireless Internet Access –
 Countries with emerging economies are often market leaders in cellular technology
 At the end of 2010, there were 4.25-5.0 billion mobile phone
subscriptionsworldwide.
 Cell phone technology is relatively inexpensive and effective
 Two-thirds of the world are now connected via mobile phones.
 Challenges of wireless e-marketing:
 Modification of website content for small screens
 Text entry using tiny keypads
 Content development
 Pricing and easy and secure payments
 Differences in consumer behavior with the mobile Internet
 Example text messaging.
The Digital Divide
E-marketers must consider the social environment in which e-business
operates.Least Developed Countries (LDC)
 Those countries with the world’s poorest economies
 Economically underdeveloped

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 Dual Economy – haves and have-nots
 All emerging economies have upper and middle income citizens
 Two completely different economies exist side by side in an LDC
Digitaldivide: Is that between countries and between different groups of people within
countries, there is a wide division between those who have real access to information
andcommunications technology and are using it effectively, and those who don‟t”
The digital divide raises challenging questions for global policy, international business, and
entrepreneurship.
The World Wide Web is not really worldwide

Ethical and Legal Issues –

Ethics and law are closely related. Ethics concerns the analysis of what is right and wrong
andhow we judge the differences.
 Modern technology presents a challenge to marketing ethics. Critical issues
include: Ownership of intellectual property
Freedom of expression
Use of data and its collection
Status of children and digital network.
Privacy
 The concept of privacy has both ethical and legal aspects.
 There is legal confusion regarding privacy.
 No specific privacy provision within the U.S. Constitution.
 Privacy has been addressed in the common law of the courts.
 Within society, privacy interests compete with concerns for safety, economics, and
needfor association with others.
Privacy Within Digital Contexts
 AMA Code of Ethics for Marketing on the Internet: “information collected from
customers should be confidential and used only for expressed purposes.”

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 Online advertising firms such as Double-Click, have traditionally recorded users‟ click
streams to form user profiles for marketing purposes.
Digital Property
The law protects intangible or intellectual property through 3 basic mechanisms
• Copyright
• Patent law
• Trademark
Online Expression
• Freedom of expression is protected by the First Amendment.
• Internet technology has resulted in what many consider inappropriate or untargeted
typesof consumer contact.
– Spam is the mass distribution of unsolicited electronic mail.
• CAN-SPAM Act creates a framework for email marketing.
• Expression directed to children remains a highly visible issue within online law and
ethics.
Cyber Crime
Crime committed using a computer and the internet to steal data or information.
 Illegal imports.
 Malicious programs.
Types of cyber crime
• Hacking
• Denial of service attack
• Virus Dissemination
• Computer Vandalism
• Cyber Terrorism
• Software Piracy
Cyber Security –
• Internet security is a branch of computer security specifically related to the Internet.

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It's objective is to establish rules and measure to use against attacks over the Internet.

Advantages of cyber security

• Defend us from critical attacks.
• Browse the safe website.
Internet security process all the incoming and outgoing data on our computer

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Module IV
E-Marketing Research

Data Drive Strategy –

Organizations are drowning in data.
E-marketers must determine how to glean insightsfrom billions of bytes of data.

Marketing insight occurs somewhere betweeninformation and knowledge.

Nestle‟s Purina Pet care, for example, sorts through hundreds ofmillions of pieces of
dataabout 21.5 millionconsumers to make decisions.
From Data to Decision

Data is the lubricant for a learning organization, and organizations are drowning in it.
This is an information technology manager‟s problem, and e-marketers must determine how
toglean insights from these billions of bytes.

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Marketing insight occurs somewhere between information and knowledge:
 Knowledge is more than a collection of information, but resides in the user,
 People, not the Internet or computers, create knowledge; computers are
simplylearning enablers.

Marketing Knowledge Management –

Knowledge management = Process of managing the creation, use, and dissemination
ofknowledge.

Data, information, and knowledge are shared with internal marketing decision makers,
partners,distribution channel members, and sometimes customers, When other stakeholders
can access selected knowledge, The firm becomes a learning organization, The firm is better
able to reach desired ROI and other performance goals.

Marketing knowledge
= the digitized “group mind”
= “collective memory” of the marketing personnel and sometimes of consultants,
partners, and former employees. Sometimes the knowledge management technology even
allowsmarketing staff to chat in real time for problem solving, which is why the system also
includes contact information.

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Use in the Telecom Industry Representative Firm

Scanner Check-Out Data Analysis AT&T

Call Volume Analysis Ameritech
Equipment Sales Analysis Belgacom
Customer Profitability Analysis Cost British Telecom
and Inventory Analysis Purchasing Telestra Australia
Leverage with Suppliers Telecom Ireland
Frequent-Buyer Program Telecom Italia
Management

Use in the Retail

Industry Representative Firm

Scanner Check-Out Data Analysis Wal-Mart

Sales Promotion Tracking Kmart
Inventory Analysis and Deployment Sears
Price Reduction Modeling Osco/Savon Drugs
Negotiating Leverage with Suppliers Casino Supermarkets
Frequent-Buyer Program W. H. Smith Books
Management.Profitability Analysis Otto Versand Mail Order
Product Selection for Markets Amazon.com

Monitoring Social Media – Companies must now monitor numerous web pages,
blogs, and photo sites in order to learn what isbeing said about their brands or executives.
Companies can hire public relations firms or onlinereputation management firms to help.

They can also set up automated monitoring systemsusing e-mail, RSS feeds, or special

software.
Technology-Enabled Approaches –
*Client-side Data Collection

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Cookies

Use PC meter with panel of users to track the userclickstream.

*Server-side Data Collection

Site log software

Real-time profiling tracks users‟ movements through aWeb site.

Real-Space Approaches –
Data collection occurs at off-line points of purchase.
Real-space techniques include bar code scanners andcredit card terminals.

Catalina Marketing uses the UPC for promotionalpurposes at grocery stores.

Marketing Databases and Data Warehouses –

Product databases hold information about productfeatures, prices, and inventory
levels;customerdatabases hold information about customercharacteristics.
Data warehouses are repositories for the entireorganization‟s historical data, not just for

marketingdata.
Data are stored in the data warehouse system andused for analysis by marketing decision

makers.
Data Analysis and Distribution –
Four important typesdecision making
include:Data mining
Customer profiling

RFM (recency, frequency,monetary value) analysis

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Report generating

KnowledgeManagement Metrics –
Two metrics are currently in widespread use:
ROI: total cost savings divided by total cost of theinstallation.

Total Cost of Ownership (TCO): includes cost ofhardware, software, labor, and cost savings.

Consumer Behaviour Online –

When consumers visit a web site, data is gathered about their online behavior. The site
collectsinformation about the visitor that includes the following:

Pages visited
Amount of time spent on each page
Links clicked
Searches performed
Components with which they interact

The sites collect the data, along with other factors, and create a profile that links to that
visitor'sweb browser.

Site publishers can then use this data to create defined audience segments based on visitors
thathave similar profiles. When visitors return to a specific site or a network of sites using the
sameweb browser, those profiles can be used to allow advertisers to position their online ads
in frontof those visitors who exhibit a greater level of interest and intent for the products and
services being offered.

Segmentation – Targeting –Differentiation – Positioning Strategies

Segmentation Bases

1. Geographic location.

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Product distribution strategy is a driving force behind geographic
segmentation.Countries may be segmented based on Internet usage.
U.S. has 186 million users.

China has 95.6 million users.

Japan has 77.9 million users.
Geographic markets may also be evaluated by infrastructure
variables.Language spoken may also be a variable.
2. Demographics.

3. Psychographics.

4. Behavior with regard to the product.

Companies can combines bases, such as geodemographics (geography and demographics).

Targeting Online Customers: E-marketers may select from among 4 different approaches for
atargeting strategy.
 Mass marketing or undifferentiated targeting

 Multisegment marketing

 Niche marketing

 Micromarketing

The Internet‟s big promise is individualized targeting.

Kotler defines differentiation as the process of adding meaningful and valued differences
todistinguish the product from the competition.

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 Differentiation strategies are particularly important on the Internet.

 Internet marketing strategy revolves around company image and

productinformation available on the Web.
 Specific strategies may include:

 Being the first to enter the market.

 Owning a product attribute or quality in the mind of the consumer.

 Demonstrating product leadership.

 Utilizing an impressive company history or heritage.

 Supporting and demonstrating the differentiating idea.

 Communicating the difference.

 Amazon.com and Monster.com have successfully differentiated themselves

Internet-Specific Differentiation Strategies

There are 6 differentiation strategies unique to online businesses.

1. Site Environment/Atmospherics

 Easy downloads; easy navigation.

2. Making the Intangible Tangible

 Virtual tours, 3-D images, trial downloads.

3. Build Trust

 Strong brand recognition.

 Privacy policy.

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4. Efficient and Timely Order Processing

 Deliver timeliness as an important benefit.

5. Pricing

 In the early days of the Web, companies offered discounts as

purchaseincentives.
 Majority of firms today differentiate themselves in other ways
besidespricing.
6. Customer Relationship Management

 Managing long term relationships with customers.

Positioning is the process of creating a desired image among its competitors in the public‟s
mind.

The e-marketer‟s goals is to build a position on one or more bases that are relevant and important
to the consumer.

Bases and Strategies for Positioning

 Product or service attribute-May include features such as size, color, speed, etc

 High-tech image-Shows that a firm is on the cutting edge of technology.

 Benefits-Benefit positioning is generally a stronger basis for positioning, because

itanswers the consumer question: What will this do for me?
 User categories-User category positioning relies on customer segments

 Comparison with competitors-Many firms position by benefits that provide

advantagesover their competitors.

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 Integrator position-We can expect to see more integrator positioning in the
lending,jewelry and hospitality industries.

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Module V
E-Marketing Management

Product – Products on Internet – Creating Customer Value Online– Product Benefits –

A product is a bundle of benefits that satisfies needs of organizations or consumers.

Includes goods, services, ideas, people, and places.
Products such as search engines are unique to the Internet while
otherssimply use the Internet as a new distribution channel.
Organizations use research to determine what is important to customers when creating
new products. The marketing mix and CRM work together to produce relational and
transactionaloutcomes with consumers.
Marketing Mix & CRM Strategies & Tactics

Creating Customer Value Online

Customer value = benefits – costs

Value is the entire product experience
Value is defined wholly by the mental beliefs and attitudes held by customers
Value involves customer expectations

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Value is applied at all price levels
Internet can increase benefits and lower costs but it can also work in reverse.
PRODUCT BENEFITS
The Internet created a new set of consumer desired benefits. Users expect:
effective web navigation,
quick download speeds,
clear site organization,
attractive and useful site design,
secure transactions,
privacy,
free information or services, and
user-friendly Web browsing and e-mail reading.
Product decisions must be made that deliver benefits to customers.
Attributes
Branding
Support Services
Labeling
Packaging
Attributes include overall quality and specific features.
Product features can include color, taste, style, size, and speed of service.
Benefits also are the same features from a user perspective (e.g. Myspace)
The Internet increases customer benefits in ways that have revolutionized marketing.
Media, music, software, and other digital products can be presented on the Web.
Mass customization is possible for tangible & intangible products
User personalization of the shopping experience can be achieved.
Brand includes a name, symbol, or other identifying information.
When a firm registers the information with the U.S. Patent Office,
itbecomes a trademark.

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A trademarkis either a word, phrase, symbol or design, or combination of words,
phrases, symbols or designs, that identifies and distinguishes the source of the goods
orservices of one party from those of others.
A brand is a way for companies to differentiate themselves from competitors. A brand is
anindividual‟s “perception of an integrated bundle of information and experiences that
distinguishes a company and / or its product offerings from the competition”
A brand represents a promise or value proposition to its customers.

Support Services
Customer support is a critical component in the value proposition.
Click-and-brick organization‟s combine online and offline service to maximize the customer
experience and minimize downtime and frustrations.
Customer service reps help customers with installation, maintenance, product guarantees,
servicewarranties, etc. to increase customer satisfaction.
Customer service is an important part of customer relationship management
(CRM) CompUSA, Inc. combines online and offline channels to increase customer
support.Labeling & Packaging
Products on Internet
Products to sell online change everyday because there is massive competition. Major
companies and very intelligent individuals are constantly monitoring the market waiting to
capitalize on thatnext niche product that is in high demand and low supply.

Amazon is an empire. They serve some key information right up to anybody who would like
to utilize it. Figure out the niche market you are attempting to penetrate and then sort the
items bybest sellers.

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E-Marketing Enhanced Product Development –
Developers are forced to combine digital text, graphics, video, and audio, and use new
Internet delivery systems. They must also integrate front-end customer service operations
with back-enddata collection.

Factors that affect product development and product mix strategies with new technologies are:

1. Customer Co-design via Crowdsourcing

2. Internet Properties Spawn Other Opportunities
3. New-Product Strategies for E-Marketing

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Customer Co-design via Crowdsourcing
1. The Internet has produced several successful & unusual business partnerships
forboth business & consumer collaboration.
2. Partners form synergistic clusters to help design customer products that
delivervalue
3. The Internet allows collaboration electronically among consumers and
acrossinternational borders.
4. Software developers often seek customer input as they develop new products
Such as allowing users to download beta version products, test them,
andprovide feedback (LEGO software for creating virtual Designs)
5. Good marketers look for customer feedback to improve products.
Some set up sites to gather customer ideas and input: Dell‟s
ideastorm.com.
6. Sometimes this feedback comes undesirable because of video posting sites and
“word of mouse”.
Internet Properties Spawn Other Opportunities
1. The Internet spawns new and unusual product opportunities (GPS)
2. The Internet is the great information equalizer which means
Fierce competition
Lots of product imitation
Short product life cycles
3. Firms are forced to create, develop, and release innovations in a matter of days
orhours, rather than months.
New-Product Strategies for E-Marketing
1. Many new products, such as YouTube, Yahoo!, and Twitter, were introduced
by“one-pony” firms (that introduce one successful online product and build
the firm around that product)
2. Other firms have added internet products to an already successful product
mix(Microsoft).

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3. Product mix strategies can help marketers integrate offline and online strategies.
4. Companies can choose among six categories of new-product strategies, based
onmarketing objectives, risk tolerance, resource availability, etc.

Product Mix Strategies

1. Discontinuous innovations are new-to-the-world products. The highest-risk strategy.
Shopping agents, Search engines, Social networking
A Disruptive innovation changes the existing market in a strong way
Digital music downloads disrupted the CD Market.
2. New-product lines when firms take an existing brand name and create new products in
acompletely different category
Microsoft Internet Explorer (Netscape was already available)
3. Additions to existing product lines when organizations add a new flavor, size or other
variation to a current product line.
The USA Today (slightly different version than hard copy)
Google (many different product lines)
4. Improvements or revisions of existing products line – “new and improved”
Web2Mail.com
Hotmail
Yahoo web mail
Price – Change in Pricing Strategies –
Price is:
 The amount of money charged for a product or service,
 The sum of all the values (such as money, time, energy, and psychic cost)
thatbuyers exchange for the benefits of having or using a good or service,
 Set by negotiation between buyers and sellers.
The Internet Changes Pricing Strategies
In the past, the Internet was used for:
 Marketing communication benefits,

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 Distribution channel benefits.
BUT it has a huge potential to change pricing strategy.
The Internet properties allow for price transparency = the idea that both buyers and
sellerscan view all competitive prices for items sold online.
This feature would tend to commoditize products sold online, making the Internet
anefficient market.
Buyer and Seller Perspectives –
The meaning of price depends on the viewpoint of the buyer and the seller. Each party to
theexchange brings different needs and objectives that help describe a fair price.
In the end, both parties must agree or there is no sale.
For the buyers: values = benefits – costs
The Real Costs
 Today‟s buyer must be quite sophisticated to understand even the simple dollar cost of a
product.
The seller‟s price may or may not include shipping, tax, and other seemingly hidden
elements (costs revealed online at the last screen of a shopping experience).
Buyers often enjoy many online cost savings:
*The Net is convenient
*The Net is fast
*Self-service saves time
Seller View
Price = the amount of money they receive from buyers.
Pricing floor = seller costs for producing the good or service,
Under, no profit is made,
Above, marketers set a price to draw buyers from competing
offers,Price - Cost = Profit
Factors affecting pricing levels:
Internal factors = the firm‟s strengths and weaknesses from:
 Its SWOT analysis,

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 Its overall pricing objectives,
 Its marketing mix strategy,
 The costs involved in producing and marketing the product.
External factors = the market structure & the buyer‟s perspective
Payment Options –
Pricing Strategies –
Price setting is full of contradictions:
Short term: If the price is too low profits will suffer/ if it is too high sales decline.
In the long run: an initial low price that builds market share can create economies of scale
tolower costs + increase profits.
 Fixed pricing (also called menu pricing):
Sellers set the price and buyers take it or leave it = same price for
everyone.This is the model most brick-and-mortar retailers use.
Two common fixed pricing strategies used online.
 Dynamic Pricing:The strategy of offering different prices to different customers.
To optimize inventory management,
To segment customers by product use or other variables.
Airlines have long used dynamic pricing software to price air travel.
 Segmented Pricing:Uses the Internet properties for mass customization,
automaticallydevising pricing based on order size and timing, demand and supply
levels, and other preset decision factors.
The firm uses decision rules to set pricing levels for segments of customers according
tocustomer behavior.
Is easier online at the individual level because sophisticated software permits firms to
setrules and make price changes.
Distribution– Online Channel Intermediaries – Distribution Channel Length and
Functions – Channel
A distribution channel is a group of interdependent firms that transfer product and
informationfrom the supplier to the consumer.

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Producers
Intermediaries
Buyers
The structure of the channel can make or impede opportunities for marketing on the internet.
Online Channel Intermediaries
Wholesalers buy products from the manufacturer and resell them to retailers.
Retailers buy products from manufacturers or
wholesalers. Brokers facilitate transactions between
buyers and sellers. Agents may represent either the
buyer or seller.
Manufacturers‟ agents represent the seller.
Purchasing agents represent the buyer.
Distribution Channel Length and Functions
Channel length refers to the number of intermediaries between the supplier and the
consumer.Direct distribution channels have no intermediaries.
Indirect channels have one or more intermediaries.
Eliminating intermediaries can potentially reduce costs.
The length of the channel refers to the number of intermediaries between supplier and
consumer.Complete disintermediation, the process of eliminating traditional intermediaries,
has not occurred.
The U.S. distribution system is the most efficient in the world.
Using intermediaries allows companies to focus on what they do best.
Many traditional intermediaries have been replaced with internet equivalents,
such as online storefronts.
Channel functions can be characterized as follows:
Transactional
Logistical
Facilitating
Transactional Functions include:
Making contact with buyers.

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Marketing communication strategies.
Matching products to buyer needs.
Negotiating prices.
Processing transactions.
Logistical functions include physical distribution activities, such as:
Transportation
Inventory storage
Aggregation of products
Logistical functions are often outsourced to third-party specialists.
Outsourced Logistics
Third-party logistics providers can manage the supply chain and provide value-added services.
UPS
FedEx
United States Postal Service (USPS)
In the C2C market, eBay has formed a partnership with Mailboxes Etc.
Management and Power –
Channel management requires coordination, communication, and control to avoid conflict
amongchannel members.Electronic data interchange (EDI) is effective for establishing structural
relationships among businesses.The goal is to create an internet-based, open system so that
suppliers and buyers can integrate their systems.Extensible Markup Language (XML) is the
probable technology for achieving the goal.
Distribution Channel Metrics – B2C Market
U.S. consumers spent $136 billion online during 2007.
eMarketer concluded that e-commerce sales and influences on off-line sales
accounted for 27% of all retail sales in 2007.
Besides revenue, B2C metrics may include:
ROI.
Customer satisfaction levels.
Customer acquisition costs.

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Conversion rates.
Average order values.
Distribution Channel Metrics – B2B Market
B2B e-commerce was estimated at $624 billion in 2004.
B2B metrics may include:
Time from order to delivery.
Order fill levels.
Other activities that reflect functions performed by channel participants.
Promotion – Integrated MarketingCommunication (IMC) –
A cross-functional process for planning, executing, and monitoring brand
communicationsdesigned to profitably acquire, retain and grow customers.
Cross-functional
= Every contact that a customer has with a firm or its agents helps to form brand images,
= An employee, a Web site, a magazine ad, a catalog, the physical store facilities, and
theproduct itself.
Online + offline contact experiences need to communicate in a unified way to create and
supportpositive brand relationships with customers.
IMC strategy:
 Understanding of the target stakeholders, the brand, its competition, and
internal /external factors.
 Marketers select specific tools to achieve their communication objectives.
 After implementation, they measure execution effectiveness, make
neededadjustments, and evaluate the results.

Internet Advertising –
All paid space on a Web site or in an e-mail is considered advertising.
Internet advertising parallels traditional media advertising, companies create content and
thensell space to outside advertisers.

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This is confusing, especially when a house banner appears on a firm‟s own Web site.
The key is exchange: If a firm pays money for space in which to put content it creates,
thecontent is considered advertising.

Marketing Public Relations –

Activities that influence public opinion and create goodwill for an organization.
 Use: create goodwill among different publics:
= Company shareholders & employees, the media, suppliers, the local
community,consumers, business buyers, and other stakeholder groups.
 Includes brand-related activities and non-paid, third-party media coverage to
positivelyinfluence target markets.
 Portion of PR directed to the firm‟s customers and prospects in order to build awareness
and positive attitudes about its brands.
 During the week of the MTV Music Awards, MTV.comsite traffic increased by 48% as
people logged on to learn more about the stars nominated for awards.

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 MPR activities using Internet technology include the Web site content itself,
onlinecommunity building, and online events.
Sales PromotionOffers –
Short-term incentives of gifts or money that facilitate the movement of products from
producerto end user.
Include coupons, rebates, product sampling, contests, sweepstakes, and premiums (free or
low-cost gifts).
Coupons, sampling, and contests/sweepstakes are widely used on the Internet.
In 2004, Internet promotions = 70% of the worldwide $170 billion dollar promotional
market(15% in 1999).
Online sales promotion works = 3 to 5 times higher response rates than with direct
mail.Online tactics are directed primarily to consumers / most offline sales promotion
tacticsare directed to businesses in the distribution channel.
Consumer sales promotions are used in combination with advertising.
 Uses: banner ad + good for drawing users to a Web site, enticing them to stay,
andcompelling them to return.
 Results: build brands, build databases, and support increased online or offline sales.

Direct Marketing –
Direct marketingis “any direct communication to a consumer or business recipient that is
designed to generate a response in the form of an order (direct order), a request for further
information (lead generation), and/or a visit to a store or other place of business for purchase
ofspecific a product(s) or service(s) (traffic generation).”
It includes:
 Telemarketing, outgoing e-mail, and postal mail (& catalog marketing),
 Targeted banner ads, other forms of advertising and sales promotions that solicit
adirect response,
 E-mail and its wireless offspring, short message services (SMS).
Personal Selling – IMC Metrics

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Savvy marketers set specific objectives for their IMC campaigns,
Then they track progress toward those goals by monitoring appropriate metrics.

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Module VI
Customer Acquisition and Retention

Profile of Consumers –
Web server sends requested pages to the requester browser
It can be configured to archive these requests in a log file recording
– URL of the page requested
– Time and date of the request
– IP address of the requester
– Requester browser information (agent)
Advantages of collecting data at the client side:
– Direct recording of page requests (eliminates „masking‟ due to caching)
– Recording of all browser-related actions by a user (including visits to multiple
websites)
– More-reliable identification of individual users (e.g. by login ID for multiple users
on a single computer)
• Preferred mode of data collection for studies of navigation behavior on the Web
• Companies like comScore and Nielsen use client-side software to track home
computerusers

Browsing Behaviour Model –

• Useful to build models that describe the browsing behavior of users

• Can generate insight into how we use Web
• Provide mechanism for making predictions
• Can help in pre-fetching and personalization

Elements of Social Media –

“Social Media is like water. On its own, water does some cool things, but when combined with
other compounds it enabled the evolution of all forms of life.”
User generated content – The days of visiting a website and merely reading content
written by someone else are all but gone. Now we are all participants, authors and
contentcreators. Even commenting on a blog or replying to someone publicly becomes a
content.This is what is known as Web 2.0.
Conversation – this is not a one-way medium. Anything anyone posts via social media
has the potential to start a conversation. And with technologies such as Twitter, you
canbe part of this ever-evolving 24/7 conversation, with the ability to jump in and out
whenever you feel like it. As in real life, you may contribute as little or as much as you
like, thereby shaping the conversation.
Build and maintain relationships -Through social media you can keep in touch with

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existing friends, and even find new friends based on shared interests. From a
business

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perspective, this includes current and potential clients. You can reconnect with
oldfriends and maintain existing relationships on a daily basis.
Communication – For many of us, gone are the days of writing letters or picking up the
phone. I can communicate with my friends via email, text messaging, or through our
Facebook or Twitter accounts. I can even share information or make contact with
multiple people all at the same time.
Information sharing – If I find something in the newspaper or online, or somewhere
else that I find interesting, I now have the ability to share with a lot of people at the
sametime. Old-school methods required photocopying and hand distributing. New
methods allow me to tweet a link to hundreds or thousands of people at a time.

Social Media Strategies –

Many entrepreneurs and business owners are ineffective in their social media marketing
becausethey simply don't have a strategy. I know, "everybody's busy". And even those who
develop a plan often don't follow-through by committing the necessary time and resources.

Using a Facebook personal profile as your business page or company website

Creating profiles on platforms including Twitter, Pinterest, Facebook and LinkedIn but
not posting any relevant content

Not having a consistent content publishing schedule to engage your audience or

targetmarket

Failing to integrate and connect your offline branding and marketing activities with an
online effort

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Absence of an overall business or strategic plan, that is tightly coupled to an overall
social media strategy

Social Media Performance Metrics –5 Steps to Effective Social Media Measurement,that will
give you practical applications to help you:

Create strong measurement objectives from the start.

Weave social media into your customer service approach in a trackable way.
Focus on the metrics that indicate a shift in the way your audience is viewing
orinteracting with your brand.
Save money training employees by using social media tools.
Determine which social media channels are best suited to boost your bottom
line. Put a dollar value on social media metrics such as Facebook likes.

Building Customer Relationships –

Here are five essential tactics:

1. Build your network--it's your sales lifeline. Your network includes business colleagues,
professional acquaintances, prospective and existing customers, partners, suppliers,
contractors and association members, as well as family, friends and people you meet at school,
church and inyour community.

Contacts are potential customers waiting for you to connect with their needs. How do you turn
networks of contacts into customers? Communicate like your business's life depends on it.
(Hint:And it does! Read on.)

2. Communication is a contact sport, so do it early and often. Relationships have a short shelf
life. No matter how charming, enthusiastic or persuasive you are, no one will likely remember
you from a business card or a one-time meeting. One of the biggest mistakes people make is
thatthey come home from networking events and fail to follow up. Make the connection
immediately. Send a "nice to meet you" e-mail or let these new contacts know you've added
them to your newsletter list and then send them the latest copy. Immediately reinforce who
you are, what you do and the connection you've made.

You rarely meet people at the exact moment when they need what you offer. When they're
ready,will they think of you? Only if you stay on their minds. It's easier to keep a connection
warm than to warm it up again once the trail goes cold. So take the time to turn your network
of connections into educated customers.

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3. E-mail marketing keeps relationships strong on a shoestring budget. E-mail marketing is a
cost-effective and easy way to stay on customers' minds, build their confidence in your
expertise,and retain them. And it's viral: Contacts and customers who find what you do
interesting or valuable will forward your e-mail message or newsletter to other people, just like
word of mouth marketing.

4. Reward loyal customers, and they'll reward you. According to global management
consulting firm Bain and Co., a 5 percent increase in retention yields profit increases of 25 to
100 percent. And on average, repeat customers spend 67 percent more than new customers.
Soyour most profitable customers are repeat customers. Just remember: If you don't keep in
touchwith your customers, your competitors will.

5. Loyal customers are your best salespeople. So spend the time to build your network and
dothe follow-up. Today there are cost effective tools, like e-mail marketing, that make this
easy. You can e-mail a simple newsletter, an offer or an update message of interest to your
network (make sure it's of interest to them, not just to you). Then they'll remember you and
what you do and deliver value back to you with referrals. Then your customers become your
sales force.

Relationship Marketing – Stakeholders –

Relationship marketing creates a new level of social interaction between buyers and sellers. It
isbased on promises that go beyond the obvious assurances that potential partners expect.

It has also been suggested that relationship marketing emphasises customer retention
andcontinual satisfaction rather than just one-off, individual transactions.

Many companies are facing increasingly competitive environments characterised by

continuouspressure on costs, large competition, continuously evolving products, customer
fragmentation and emerging technologies. To ensure success, it is important for businesses to
integrate both suppliers and other stakeholders in order to develop strong relationships
within alternative markets and outside of the core business functions.
The four stakeholders most affected by internet technologies include:
–Employees who need training and access to data and systems used for
relationshipmanagement.
–Business customers in the supply chain.
-Lateral partners, such as other businesses, notforprofit organizations, or governments.
–Consumers who are end users of products and services.

Three Pillars ofRelationship Marketing –

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E-MARKETING 14MBAMM409

1st pillar - customer relationship management (CRM)

Target, acquire, transact, service, retain, and build lon-term relationships with customers.

2nd pillar - customer experience management (CEM)

This represents the discipline, methodology, and/or process used to comprehensively

manage acustomer's cross-channel exposure, interaction, and transaction with a company,
product, or service.

3rd pillar - customer collaboration management (CCM)

This is a philosophy and business strategy, designed to engage the customer in a

collaborativeconversation in order to provide mutually beneficial value.

Customer Relationship Management (CRM) –

 Is used to define the process of creating and maintaining relationships with
businesscustomers or consumers.
 Is a holistic process of acquiring, retaining, and growing customers.
 Includes all online and offline relationship management.
Firms are recognizing that if they don‟t keep their customers happy, someone else will.

Dept of MBA,SJBIT Page 56

E-MARKETING

CRM Building Blocks–

Ten rules for CRM Success

1. Recognize the customer‟s role.

2. Build a business case.
3. Gain buyin from end users to
executives.4.Make every contact count.
5. Drive sales effectiveness.
6. Measure and manage the marketing
return.7.Leverage the loyalty effect.
8.Choose the right tools and
approach.9.Build the team.
10.Seek outside he

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E-MARKETING

Module VII
Evaluating Performance and Opportunities
Measuring and evaluating web marketingprograms –
“Measuring and evaluating web marketing programs” can be so crucial to a businesses Internet
presence and marketing campaign or strategy. There have been many businesses that have
been successful or have failed because of the simple fact of “Choosing the right Metrics”.
Doing wellwith marketing metrics can lead to a successful businesses and marketing
campaigns.Today‟s marketers need to determine many different ways to evaluative sites
effectiveness for reasons such as: is the site easy to use? Is the website user friendly for the
targeted market? What‟s the traffic, audience on the website like? Is the site performing well?
Are there errors the sites visitors encounter? How many hits does the page have and what can
we find out about them?
The reason this is done is because using metrics is a way to measure a businesses and
sitesperformance to determine the Return on Investment (ROI).
Evaluating Marketing Programs is dynamic and this is a process of learning about the customer,
which seems to be a never-ending process, because there are unlimited marketing activities
and an endless amount of customers/profiles that make the use of customer knowledge easier
to classify into a specific category of customers. When we focus on customer retention and the
reactivation of lapsed customers if it is less expensive to maintain the existing customers than it
is to acquire a new one but with the changes going on in the world around us with factors such
as: society, technology and international business, customer attitudes/wants/needs, the ways
to measure metrics will always be a never ending road of changes we will need to adapt to
when weare determining a marketing strategy.
Social and Regulatory Issues –
Online businesses face both legal and ethical responsibilities in collecting, safeguarding and
disposing of private consumer information. While Federal Trade Commission privacy regulations
outline your legal responsibilities, there are options pertaining to e-business privacy that require
ethical decisions. Make sure your e-business considers and complies with all legal and ethical
regulatory issues by taking whatever steps are necessary to ensure customers feel secure about
sharing their private information.

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E-MARKETING

Privacy –

Privacy is dead and ready to be buried, but life remains for web security, suggests
surveyfindings released this week by Adroit Digital, an online marketing firm.

It finds that 73% of U.S. online consumers believe that privacy “in 2015 is an illusion,” according
to the new report, “Privacy and Security in the Digital Age: How Consumers View theCollection
and Use of their Personal Data Online.” And 75% of consumers “feel they are freely giving up
some privacy rights by using the Internet.”

Adroit Digital bases its findings on an online survey of 2,000 U.S consumers conducted between
July 29 and Aug. 25, 2014; the company says all respondents confirmed they owned
smartphones and PCs.

Security –

As an online marketer my computers security is always in the back of my mind. My computer is the
heart of my business, so keeping it safe should be prioty number one. Although sometimes it does
slip to priority number two, which could as a result have a devastating effect on both myself and
my customers. So this is a gentle reminder to be really aware of your online security. Ask yourself
the question, Do you have a firewall? Do you have antivirus? Do you have antispyware software?
You have...fantastic. You haven't got all three protectors then start too panic just a little. However
there is an easy solution.Your computers security and your online surfing safety, using available
security applications is a paramount action. But as always the action to protect is solely up to you.
Be exactly aware of what is happening online with ongoing security issues and react always
accordingly. Updateyour available security software always and check that it is always enabled.
Because it will only eversave you time, money and your own piece of mind in the long run.
Intellectual Property –

It is an intellectual property form (like the patent, the trademark, and the trade secret)
applicableto any expressible form of an idea or information that is substantive and discrete.
Intellectual property is a term referring to a number of distinct types of creations of the mind
for which a set

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E-MARKETING

of exclusive rights is recognized. Under intellectual property law, owners are granted
certainexclusive rights to a variety of intangibleassets, such as musical, literary, and artistic
works; discoveries and inventions; and words, phrases, symbols and designs.

Intellectual property rights encompass copyrights, trademarks, patents, industrial design rights
and trade secrets depending on the jurisdiction. Although copyright laws protecting intellectual
property are considered territorial and restricted to the territory of their origin, most countries
areparties to at least one or more international copyright agreement. Most jurisdictions
recognize copyright limitations, allowing "fair" exceptions to the creator's exclusivity of
copyright, and giving users certain rights.

MobileMarketing –

Mobile marketing is marketing on or with a mobile device, such as a cell phone. One definition
comes from marketing professor Andreas Kaplan who defines mobile marketing as "any
marketing activity conducted through a ubiquitous network to which consumers are constantly
connected using a personal mobile device". Within this definition, Kaplan uses two variables,
i.e.the degree of consumer knowledge and the trigger of communication, to differentiate
between four types of mobile marketing applications: Strangers, Victims, Groupies, and
Patrons.

Mobile marketing can also be defined as “the use of the mobile medium as a means of
marketingcommunication”, the “distribution of any kind of promotional or advertising
messages to customer through wireless networks”. More specific definition is the following:
“using interactive wireless media to provide customers with time and location sensitive,
personalized information that promotes goods, services and ideas, thereby generating value for
all...

Media Coverage Emerging Issues: Media coverage of an emerging issue plays an

important role in making the issue more prominent in the collective mind of the publics.
Research showsthat the way message is framed in the news media plays an important role in
influencing publicpreferences regarding political issues. Gamson and Modigliani in their half a
century study on societal debate on the use of nuclear power has proved that characterizing
the causes and likelyconsequences of a news story can have a great influence on establishing
criteria for evaluating remedies and influencing public opinion.

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Online Governance
Governance is a system for managing online in a controlled & orderly way. The principal benefit is
that it delivers the operational stability Web & Product Managers need to focus on goals.

Online governance is a framework for establishing accountability, roles, and decision-making

authority for an organization‟s digital presence - which means its websites, mobile sites, social
channels, and any other Internet and Web-enabled products and services. Having a well-
designeddigital governance framework minimizes the number of tactical debates regarding the
nature andmanagement of an organization‟s digital presence by making clear who on your
digital team has decision-making authority for these areas:

Digital strategy: Who determines the direction for digital?

Digital policy: Who specifies what your organization must and must not do online?
Digital standards: Who decides the nature of your digital portfolio?

ICANN –Jurisdiction – Fraud – The Internet Corporation for Assigned Names and Numbers
(ICANN)

To reach another person on the Internet you have to type an address into your computer - a
nameor a number. That address has to be unique so computers know where to find each other.
ICANNcoordinates these unique identifiers across the world. Without that coordination we
wouldn't have one global Internet.

ICANN was formed in 1998. It is a not-for-profit partnership of people from all over the world
dedicated to keeping the Internet secure, stable and interoperable. It promotes competition
anddevelops policy on the Internet‟s unique identifiers.

ICANN doesn‟t control content on the Internet. It cannot stop spam and it doesn‟t deal with
access to the Internet. But through its coordination role of the Internet‟s naming system, it
doeshave an important impact on the expansion and evolution of the Internet.

ICANN is made up of a number of different groups, each of which represent a different interest
on the Internet and all of which contribute to any final decisions that ICANN‟s makes.
There are three “supporting organizations” that represent:
The organization‟s that deal with IP addresses
The organizations that deal with domain
names
The managers of country code top-level domains (a special exception as explained at
thebottom)

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Consumer Loyalty of Website-Services –

Nurturing customer loyalty is an essential priority for any successful business. Unfortunately,
many businesses overlook the opportunity of using their website as a tool to build loyalty and
retain existing clients. Whether leveraging a website to sell e-commerce products or generate
leads, a website can be an effective tool for getting more out of an existing customer base.
Whendesigning a new website, business owners should keep in mind how website design
could be used to encourage customers to keep coming back for more.

1. Responsive Design

In today‟s mobile-focused world, nothing is more frustrating to customers than websites that
do not work properly on modern smartphones and tablets. Customers in the modern world are
increasingly expecting responsive websites that work flawlessly on everything from an iPhone
toa 4K monitor. In addition to potentially scaring off new customers, a website that is not
responsive could lead returning customers to reconsider their purchasing decision and even
look elsewhere. Businesses should maintain a fully responsive website to prevent existing
customers from thinking twice about repurchasing.

2. Encouraging Referrals

The most loyal customer base is earned through networking and client-to-client referrals.
Whendesigning a website, business owners should keep in mind that a website‟s design can
help to facilitate referrals. A well-designed website that looks great can make existing clients
feel morecomfortable about sending a link to a friend.
3. Incorporating Social Media Buttons

Satisfied customers are much more likely than others to share content created by a company
withwhich they had a positive experience. Businesses seeking success on social media,
therefore, should aim to drive engagement with existing customers by encouraging them to
follow the company‟s social media pages.

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4. Offer Meaningful Value

Businesses can encourage customer loyalty by designing a website that offers tangible value
andgives customers a reason to return. Examples of tangible value on a website could include
a client dashboard, video tutorials, or routine promotions.

5. Encourage Direct Engagement

Online transactions are often very impersonal in nature. While direct engagement may cost
timeand money, businesses almost always realize a return in the long run as customers feel a
more compelling reason to return for another purchase.

The Quadratic Effect of Flow –

Flow can be described as a perceived state of effortless action, loss of time
anda sense that the experience stands out as being exceptional compared
to everyday life.
In highlighting the importance of flow and the creation of compelling online experiences,
Hoffman and Novak went as far as declaring that “creating a commercially compelling website
depends on facilitating a state of flow for consumers [and that]...an important objective for
marketers is to provide these opportunities” From a firm perspective, e-commerce
practitionershave been encouraged to orchestrate a specific environment (and set of
conditions) for consumers to experience flow.
This is highlighted by Rubinstein and Griffiths who argue “[on] the Internet you have to
orchestrate everything to deliver a highly differentiated and consistent positive experience”.On
this basis, the Internet can be used as a tool to create and deliver unique and memorable
website-service experiences which contribute to the development of flow for the consumer, as
opposed tojust facilitating transactions and the provision of information. Although flow can be
determined by many individual characteristics (such as skill, knowledge and brand attitude),
managers need to engineer compelling website-service performances (through the interface)
which enable consumers to achieve a flow state.

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Role of Technology Readiness in Developing Trust and Loyalty for E-Services in Developing
Countries.

Technology readiness relates to an individual‟s propensity to embrace new technology.

Consumers high in technology readiness are very optimistic about the impact of technology,
have high levels of innovativeness, are very comfortable in using technology, and feel less
insecure about technology. Previous studies have shown how technology readiness influences
aconsumer‟s evaluation of service quality.
The effect of technology readiness can also be on such constructs like trust with the service
provider as well as loyalty to the service provider. The present study looks at the impact of
technology readiness on the evaluation of e-service quality and its subsequent impact on e-
trustand e-loyalty.
Many developing countries‟ governments have invested heavily in e-service projects.
However,there is a lack of clear case material research, which describes the potentialities
experienced by governmental organisations. Research examines egovernment service
projects and provides insights and learning into how to successfully develop and implement
these projects within a developing country.

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