E-Marketing Chapter 1: Introduction to e-marketing

1. E-MarketingChapter 1: Introduction toe-marketing Dr.AhmadShraideh eMarketingeXcellence by Dave Chaffey and PR Smith eMarketing eXcellence by Dave Chaffey and PR Smith

2. The wired-up world • Marketplace migrates into the E-marketspace • Internet continues to grow rapidly and across borders • In China there are more mobile phone subscribers than the population of the US • In Japan, the usage of the web by mobile user nearly equals those by PC • Everything will be wired up ”connected to the Internet” • Interactive “digital TV and radio”, Cars, mobile phones, palm tops, planes, trains and automobiles etc.. eMarketing eXcellence by Dave Chaffey and PR Smith

3. B2C and B2B • In the past • B2B marketing, was considered to be less exciting than B2C • FMCG manufacturers ”Coca-Cola and, Heinz” • Currently • General Electric made the decision to totally procure online • Cisco systems no longer do business with suppliers who can ’ t take orders over the web • Examples: Covisint eMarketing eXcellence by Dave Chaffey and PR Smith

4. C2B and C2C • C2C • Such as eBay and communities of interests such as “sport, films” • Encouraged by the growth of social networks such as “Facebook and MySpace “ and their business equivalent • They are reducing consumption of other forms of digital media and traditional media • Companies need to develop a strategy to engage these consumers • C2B • Customers developing their own content online, known as user generated content (UGC) where businesses • Play a significant role in some B2B or B2C sectors • In this model, a potential buyer approaches a marketplace of sellers who (the seller) then compete for the sale • Priceline and other price comparison sites such as Kelkoo follow this model eMarketing eXcellence by Dave Chaffey and PR Smith

5. B2C, B2B, C2B and C2C eMarketing eXcellence by Dave Chaffey and PR Smith

6. e-definitions • E-commerce: • Selling and purchasing online “ the ability to transact online” • This includes “e-tailing, online banking and shopping” • Does not include the marketing nor the back office administration processes eMarketing eXcellence by Dave Chaffey and PR Smith

7. e-definitions • E-business • Has a broader perspective than E-commerce • It involves the automation of all the business processes in the value chain – from purchasing of raw materials, to production, stock holding, distribution and logistics, sales and marketing, after sales, invoicing, debt collection and more • It creates the ability to run a business online • This includes e-marketing and e-commerce eMarketing eXcellence by Dave Chaffey and PR Smith

8. e-definitions • E-marketing • Be closer to customers to understand them better and to maintain a dialogue with them, adding value to products, widening distribution channels and boosting sales through running e-marketing campaigns using digital media channels such as search marketing, online advertising and affiliate marketing eMarketing eXcellence by Dave Chaffey and PR Smith

9. e-definitions • E-marketing • It also includes using the website to facilitate customer leads, sales and managing after sales service • Simply e-marketing is marketing online whether via web sites, online ads, opt-in e-mail, interactive kiosks, interactive TV or mobiles • It is broader than e-commerce since it is not limited to transactions but includes all processes related to marketing eMarketing eXcellence by Dave Chaffey and PR Smith

10. Right Touching • A Multi-channel Communications Strategy • Using web, e-mail, phone, direct mail • Customized for Individual Prospects and Customers forming segments • Across a defined customer lifecycle • In order to • Delivers the Right Message • Featuring the Right Value Proposition (product, service or experience) • With the Right Tone at the Right Time eMarketing eXcellence by Dave Chaffey and PR Smith

11. THE CUSTOMER-LED BUSINESS • The UK Chartered Institute of Marketing define marketing as: ‘The management process responsible for identifying, anticipating and satisfying customer needs profitably’ • Taking a web site as a major part of e-marketing, how it can fulfill the definition of marketing eMarketing eXcellence by Dave Chaffey and PR Smith

12. THE CUSTOMER-LED BUSINESS • How a web sit may fulfill the def. of marketing • Identify needs: • From customer comments, requests and complaints solicited via the web site’s e-mail, chat rooms • Observing new customer groupings identified by data-mining through customer data, sales and interests (web analytics) • Online surveys (improve the site, requesting suggestions) eMarketing eXcellence by Dave Chaffey and PR Smith

13. THE CUSTOMER-LED BUSINESS • How a web sit may fulfill the def. of marketing • Anticipate customer needs • By asking customers questions and engaging them in a dynamic dialogue built on trust • Collaborative filtering (amazone.com) • Sophisticated profiling techniques using (data mining and cookies) • Satisfy needs: • Prompt responses, punctual deliveries, order status updates, helpful reminders, after sales services and added value services combined with the dynamic dialogue • The dialogue maintains permission to continue communicating and then adds value by delivering useful content in the right context eMarketingeXcellence by Dave Chaffey and PR Smith

14. Sloppy e-marketing • Cause • Unclear objectives • Lack of strategy • Miserable execution • Marketers should assess and minimize the risks before embarking on e-marketing. eMarketing eXcellence by Dave Chaffey and PR Smith

15. Sloppy e-marketing eMarketing eXcellence by Dave Chaffey and PR Smith

16. Marketing objectives • Useful framework for developing objectives is the 5Ss • Sell • Serve • Speak • Save • Sizzle eMarketing eXcellence by Dave Chaffey and PR Smith

17. Marketing objectives eMarketing eXcellence by Dave Chaffey and PR Smith

18. Marketing objectives eMarketing eXcellence by Dave Chaffey and PR Smith

19. Objective1 – Sell: using the Internet as a sales tool • Increase the direct online revenue contribution for different products and different markets • E.g. Defines the proportion of sales transactions completed online • For example, a bank might try to achieve 15% of its insurance sales online • Increase is the indirect online revenue contribution • E.g. Define the proportion of sales that are influenced by digital communications • Increase the reach of the web site within its target audience eMarketing eXcellence by Dave Chaffey and PR Smith

20. Objective1 – Sell: using the Internet as a sales tool • Challenge • Anything can be sold online(give examples) • Regulating what is reasonable and proper to sell • The impact on some industries (Dell, IBM, General Electric, Ford and GM) • Companies must be able to sell or transact online to meet these customers ’ new online needs • Many products and services are partly bought online, How? • Mixed-mode selling must be considered • Organizations have to be able to sell both online and offline (buy online or just to browse web site) eMarketing eXcellence by Dave Chaffey and PR Smith

21. Objective 2 – Serve: Using the Internet as a customer-service tool • How can a web site help customers, improve their experience or add value to their experience? • By adding value for customers at different stages of the buying process, whether pre-sales, during the sale or post sales support • By increasing switch cost • E.g: • Newspapers, no time constrains • Using an online forum, Q &A service, an appointment booker • Fedex, GE and Dell add value through their web sites all the time eMarketing eXcellence by Dave Chaffey and PR Smith

22. Objective 3– Speak: Using the Internet as a communications tool • Chat rooms can be used as focus groups • Small groups of customers who discuss your product, pack, advertisements, etc • Using online questionnaires • May annoy web visitors, if they were long • Keeps them short (builds the questions across pages) or rewarding visitors them with a suitable incentive for filling the questionnaire eMarketing eXcellence by Dave Chaffey and PR Smith

23. Objective 3– Speak: Using the Internet as a communications tool • Using digital media channels to speak to your audiences on other sites • Search engine marketing • Search engine optimization (SEO) to increase companies position in the natural search listings • Paid search marketing • Online Public Relations • Through third party web site (Social network and blogs) • Online partnerships • Interactive advertising • Opt-in e-mail • Viral marketing eMarketing eXcellence by Dave Chaffey and PR Smith

24. Objective 4– Save: Using the Internet for cost-reduction • Saving can be done within • Media channels • Customer service • Transactional costs (Negotiate better) • Print and distribution (reports, user manuals, saving storage space , paper, fuel, money and time) • Self-service which will lead to customer satisfaction (Banks, fedex, zajel, FAQ etc…) • Extra revenues through advertising • Cost per Acquisition (CPA) = Cost Per Click/conversion rate eMarketing eXcellence by Dave Chaffey and PR Smith

25. Objective 5 – Sizzle: Using the Internet as a brand-building tool • Using the Internet as a brand building tool • By increasing brand awareness and enabling interaction with the brand • Your Sizzle is communicated through your Online Value Propositions (OVPs) • What experience could a web site deliver that would be truly unique and representative of the brand? Give examples eMarketing eXcellence by Dave Chaffey and PR Smith

26. E-strategy • Strategy summarizes how to achieve objectives • It is influenced by • Objectives prioritization (sell, serve, speak, save and sizzle) • The resources available • E-marketing strategy • Is a channel strategy where electronic channels and digital media support other communications and distribution channels • It should identify target markets, positioning, Online Value Proposition, the choice of mix of digital media channels to acquire new customers, and contact strategies to welcome and develop existing customers eMarketing eXcellence by Dave Chaffey and PR Smith

27. E-marketing Tactics, actions and control • Tactics • Are the details of strategy • Tactical e-tools include • Web site, opt-in e-mail, digital media channels such as paid search and display advertising, virtual exhibitions and sponsorship • Tactics require an understanding of what each e-tool can and cannot do • Tactics may also involve where and how each tool is physically used, whether with a kiosk, interactive TV, mobile or alternatives (such as microwave) eMarketing eXcellence by Dave Chaffey and PR Smith

28. E-marketing Tactics, actions and control • Actions • Include project planning and implementation • Also requires an appreciation of what can go wrong (libel, viruses, mail bombs, hackers and hijackers, • Create a contingency (emergency) plan • What happens when the server goes down? • What happens if one of the e-tools is not working? eMarketing eXcellence by Dave Chaffey and PR Smith

29. E-marketing Tactics, actions and control • Control • Involves assessing the results against objectives • Regular review of what ’s working and what ’s not with continuous improvement • Which tools are giving the best return on investment? Why? • Measuring number of hits, number of conversions, churn rate • Control also includes competitive intelligence • Monitoring your competitors ( what they’re doing; what works for them; what they’re stopping) • E-tactics, or even the e-strategy can be changed if necessary eMarketing eXcellence by Dave Chaffey and PR Smith