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Introduction to E Marketing;
Meaning & Scope
What is Internet?
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Marketing companies are concerned with

Efficient and Effective technology

Changes in the market due to technological
innovations
Impact of technology on future changes
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E Marketing is the use of information

technology in the processes of
creating, communicating and delivering value to
customers
managing customer relations

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Effects of E Marketing on a traditional

marketing company

Increases efficiency and effectiveness of marketing

Transforms marketing strategies
Helps in identifying new business models
Adds to customer value and satisfaction
Increase company profits
   
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E Commerce

E Marketing
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It͛s the global network of interconnected networks
where web pages are shared, where people send
& receive data, and carry out online transactions.

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%. Content providers (info, entertainment, etc)
2. Users
3. Technology Infrastructure to move, create, and
view/listen to content
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E Marketing technology uses many other

software and hardware not related to the web

on-web internet communication like emails,

efaxs, etc are effective marketing tools

Internet delivers text, audio, video, etc., to many

other devices not only to computers
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Individuals: Access to unlimited information;

Access to various forms of entertainment;
Connect with people; etc

Communities: Blogs; Social and Professional

networking; and Forges partnerships

Business: Digitalized, cross functional

environment drastically increased efficiency and
profitability

Societies: More efficient markets, more jobs,

better access to information, globalization, etc.
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%

͛s Dot-com gold rush

2 to 22 Dot-com burst (5 firms closed)

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Adopted by all companies

  


ow percentage of computer penetration

Internet connectivity

ow percentage of surfers entering into online

transactions

Credit cards

Cyber security

Cyber crime

oss of personal touch in shopping

egal issues (Trade mark, Domain name, Copyright,

Jurisdiction issues, etc.)

Mistaken purchases or auctions

  

Internationally more than 33% of surfers buy

online

E Marketing reduces prices

Huge potential for growth (7% rural population)

E Intermediaries

Affordable computers and internet connectivity

Desire of the customers

Cheaper technology
   
 


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ew Entrants/Substitution : Reduced entry

cost; ew sales channels; ew service
opportunities.

Suppliers & Traders: Cost reduction; Quick

response; ock in

Buyers: ew sales channels; Information; o

intermediaries

Competitive Rivalry: Cost leadership;

Differentiation; Focus
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Activity level E Business Models (increases

efficiency, reduces costs & low risk)
Online purchasing
Order processing
E mail
Online advertising
Online sales promotion
Pricing strategies

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I creases a fir s effective ess]

st er relati s i a age e t
K le ge a age e t (re rts, c st ers acc t
i f , r ct sales i f , etc.)
S ly c ai a age e t
ity il i g / Net rki g
ffiliate r gra s (li k t a t er͛s e site)
ata ase arketi g (c llecti g, a alyzi g,
isse i ati g e-i f a t c st ers, r cts, etc.)
E ter rise res rce la i g ( ack ffice syste s f r
r er e q iry, rc asi g, i v ici g, a i ve t ry
c tr l)
ass c icati
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It͛s the process of identifying how to use IT to

enhance revenues, increase market share and
to reduce costs

It͛s the process of identifying sustainable

competitive advantage derived out of digital
technology

How to enhance efficiency and effectiveness

by using digital technology in the marketing
planning process

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It͛s a guiding, dynamic document that links

the firms e-business strategies with e-
marketing strategies and lays out the
implementation plan for marketing
management
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Strengths and Weaknesses ʹ Internal

Opportunities and Threats ʹ External

o ew products, markets, media, channels, etc.
o egal, technological, market related, etc.


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Market Opportunity analysis

o Demand analysis: Market segmentation analysis
to describe and evaluate the potential
profitability, sustainability, accessibility and size of
potential segments. B2C & B2C
o Supply analysis: Forecasts segment profitability
and finds competitive advantage to exploit the
online market. Differentiation variables,
positioning strategies


#$ !
 Main objectives
o What is to be accomplished
o How much
o By when

 Others
o Increase market shares
o Increase sales revenue
o Reduced costs
o Increased brand awareness
o Better database
o Better CRM
o Improve Supply Chain Management

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The Offer: Product strategies ʹ Existing products

sold online or new products offered to the
customers

The Value: Pricing strategies ʹ Dynamic pricing

and Online bidding

Distribution strategies ʹ Direct marketing and

Agent E Business models

Marketing Communication strategies

Relationship Management strategies ʹ CRM

software + customer behavior = comprehensive
database

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Creation of the right marketing organization

for implementation ʹ Staff, Department
structure, Application service providers and
other firms.

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Revenue forecast

Intangible benefits

Cost savings

E Marketing costs
o Technology costs
o Site design costs
o Salaries
o Other site related costs
o Marketing communication costs
o Mischellaneous
  

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o Bluetooth Marketing
o Chinese is the fastest growing internet language
o Fastest growth seen in Africa and in Middle East
o Internet penetration is max in orth America,
more than 7%
o Top % countries in the world account for more
than 6% of users
o Asia is just above Africa in internet penetration
but already has the max users
   

In developing countries most of the internet users are

educated and belong to the richer groups

In developing countries internet access is generally in

offices

In developed countries and in some developing

countries internet addiction has become a problem

In developed countries more and more people are

buying online

Trust in online payments is low

Mobile penetration is increasing drastically

ExͶIP matches on You-Tube

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Market similarity

Credit cards and Secure online payment

system

Computers and Communication (in India

around %% own a computer)

Internet costs

Connection speed

Better web designs because of broad band

Electricity

Wireless internet access

The digital divide in developing countries

overnment policies
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Ethics concern the values and practices of

professionals who have expert knowledge of a
specific field and also the society as a whole.

aw is generally for a broader spectrum of the

society and made by an elected body of the
citizens of a nation.
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Focuses on differentiating between the right

and the wrong

Examines responsibilities, rights and

obligations of the people under study

Ethics study human interactions, political,

legal and commercial issues related to
transactions

Scope is very wide


Certain ethics may contradict each other

Each specialized group have their own code of

ethics

Helpful to communicate both internally as

well as externally
 
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Piracy

Problems with self regulation

Privacy