CHAPTER 3:

E-MARKETING
STRATEGY
 E—MARKETING RESEARCH

 Nestle Purina PetCare wanted to know whether their

websites and online advertising increased off-line behavior.
 Combined online and off-line shopping panel data
revealed:
 Banner click-through rate was low (0.06%).
 31% of subjects exposed to both online and off-line
advertising mentioned Purina.
 The high exposure group mentioned Purina more
than the low exposure group.
 Home/health and living sites received the most
visits from their customers.
 Which websites besides petsmart.com and about.com
would be appropriate for their ads?
 Data Drive Strategy
 Information overload is a reality for consumers and marketers alike.
 E-marketers must determine how to glean insights from billions of
bytes of data.
 Data require insight or application to inform marketing strategy.

Marketing Knowledge Management

 Knowledge management is the process of managing the creation,
use, and dissemination of knowledge.
 Data, information, and knowledge are shared with internal
decision makers, partners, channel members, and sometimes
customers.
 A marketing knowledge database includes data about customers,
prospects and competitors.
From Data to Decision: Purina
 The Electronic Marketing Information
System

 A marketing information system (MIS) is the process

by which marketers manage knowledge.
 Many firms store data in databases and data warehouses.
 The Internet and other technologies facilitate data
collection.
 Secondary data provide information about competitors,
consumers, the economic environment, etc.
 Marketers use the Net and other technologies to collect
primary data about consumers.
Most Common Data Collection Methods
INTERNAL RECORDS
• Accounting, finance, production, and marketing personnel
collect and analyze data for marketing planning.
• Sales data
• Customer characteristics and behavior

SECONDARY DATA
• Can be collected more quickly and less expensively than
primary data.
• Marketers continually scan the macroenvironment for
threats and opportunities, a procedure commonly called
business intelligence.

PRIMARY DATA
• When secondary data are not available, marketers may
collect their own information.
• Primary data collection enhanced by the Internet:
• Online focus groups
• Online survey research
Primary Research Steps
Advantages & Disadvantages of Online
Research
MONITORING THE SOCIAL MEDIA

 Companies must now monitor numerous web

pages, blogs, and photo sites in order to learn what
is being said about their brands or executives.
 Companies can hire PR firms or online reputation
management firms to help.
 They can also set up automated monitoring
systems using e-mail, RSS feeds, or special
software.
 Google offers e-mail alerts for selected
keywords.
 Marketing Databases & Data
Warehouses

 Product databases hold information about product

features, prices, and inventory levels; customer
databases hold information about customer
characteristics.
 Data warehouses are repositories for the entire
organization’s historical data, not just for marketing
data.
 Software vendors are attempting to solve the website
maintenance problem with content management
systems.
Data Analysis and Distribution
 Four important types of analysis for marketing decision making include:
 Data mining
 Customer profiling
 RFM (recency, frequency, monetary value) analysis
 Report generating

Knowledge Management Metrics

 Four important types of analysis for marketing decision making include:
 Data mining
 Customer profiling
 RFM (recency, frequency, monetary value) analysis
 Report generating
 The Internet Exchange Process

 Exchange is a basic marketing concept.

 It refers to the act of obtaining a desired
object by offering something in return.
 Exchange occurs within the following
contexts:
 Technological

 Social/cultural

 Legal
 Social and Cultural Contexts
 The cornerstones for attracting customers online:
 Reputation
 Relevance
 Engagement
Individual Characteristics & Resources
 Individual characteristics affect Internet use.
 Demographics such as age, income, education, ethnicity, and gender.

 Attitudes toward technology.

 Online skill and experience.

 Goal orientation.

Consumer Resources
 Consumers perceive value as benefits minus costs.
 These costs constitute a consumer’s resources for exchange:
 Monetary cost
 Time cost
 Energy and psychic costs
 Exchange Outcomes

 There are 5 basic things that people do

online:
 Connect

 Create

 Enjoy

 Learn

 Trade

 Each is ripe with marketing opportunity.

 Segmentation, Targeting, Differentiation, and
Positioning Strategies

Bikers Club
• Process of grouping
individuals or
businesses, according
Marketing to use, consumption,
segmentation or benefits of a product
or service.

Higher Income Lower Income

• Process of selecting
market segments that
are most attractive to
Market the firm.
targeting
 THREE MARKETS

Business Market
• Marketing of products for use in the business
operation, as components, or for resale

Government Market
• Federal, state, county, city, and foreign
governments.

Consumer Market
• The consumer market involves marketing
goods and services to end consumers.
Three Basic Markets
 MARKET SEGMENTATION…….1

2
1
1. In developed nations, users are
1. Product distribution strategy is much like the mainstream
a driving force behind population demographically.
geographic segmentation. 2.Three market segments are of
great interest to e-marketers :
2. Geographic markets may also
be evaluated by infrastructure a) Millennials
variables and language spoken -Of those born between 1979
and 1994, over 90% use the
Internet.
b) Kids
c) Online opinion leaders
- Ethnics group, Influential

Geographic location Demographics

 MARKET SEGMENTATION…….2

3 4
1. User psychographics include: 1. Two common segmentation
variables are benefits sought and
 Personality
product usage.
 Values
• Marketers using benefit
 Lifestyles segmentation form groups of
 Activities consumers based on the
 Interests benefits they desire from
 Opinions product.
• Marketers often segment by
light, medium, and heavy
product usage.
• Marketers can segment users
as brand loyal, loyal to a
competitive product,
switchers, and nonusers.

Psychographics Behavior
CONSUMER TECHNOGRAPHICS
SEGMENTS
 Targeting Online Customers

1. E-marketers select a targeting strategy.

Which targets to serve online
Which locations
Other factors
2. Two targeting strategies are well-suited for
the Internet.
• Niche marketing
• Micromarketing
 DIFFERENTIATION DIMENSIONS

 A firm can differentiate along 5 dimensions:

 Product

 Service

 Personnel

 Channel

 Image
 INTERNET-SPECIFIC
DIFFERENTIATION STRATEGIES

 There are 6 differentiation strategies unique to

online businesses.
 Site Environment/Atmospherics
 Easy downloads, accurate and clear
information, easy navigation.
 Build Trust
 Strong brand recognition.
 Privacy policy.
 Safe and encrypted payment process for
transactions
INTERNET-SPECIFIC DIFFERENTIATION
STRATEGIES

 Efficient and Timely Order Processing

 Pricing
 Majority of firms today differentiate
themselves in other ways besides pricing.
 Customer Relationship Management
(CRM)
 Managing long-term relationships with
customers.
 Invite User-generated Content
 The key is to trust customers, listen,
respond, and learn.
 Positioning

 Positioning is the process of creating a desired

image for a company and its products in the
minds of a chosen user segment.
 The e-marketer’s goal is to build a position on
one or more bases that are relevant and
important to the consumer.
 Firms can position brands, the company, the
CEO, or individual products.
BASES AND STRATEGIES FOR POSITIONING

 Product or service attributes

 Technology position
 Benefits position
 User category position
 Competitor position
 Integrator position