Presented by
Arun T. Ravindran Neethu Sunny
Sudeep V P Reeba Mary Jose
“It is the combination of direct marketing
principles with Internet technology in order to
find profitable customers and interact with
them to find out how they want to do
business, when they want to do it, and under
what terms.”
Much faster
Cheaper
More user-friendly
More attractive in terms of content
Multi-platform
Webpages can be fully open to all or their
access can be (partially or fully) restricted.
The web is permanently open.
Web sites can be easy updated and changes
are immediately effective.
The web is inter-connectable with other
Internet services.
The web is not fully reliable.
The perceived security (e.g. payment related) is
insufficient.
Identification systems (e.g. digital signature)
are not well implemented even though they are
technically available.
The web is mostly a "pull media“.
Brand visibility decreases
Benefits of E-
How benefit is delivered?
Marketing
Achieved through wider distribution to customers
you can’t readily service offline or perhaps through
Sell – Grow sales wider product range that in-store, or lower prices
compared to other channels
Achieved through giving customers extra benefits
Serve – Add value online or inform product development through online
dialogue and feedback
This is creating a two-way dialogue through web and
Speak – Get Closer to e-mail forms and polls and conducting online market
customers research through formal surveys and informally
monitoring chat rooms to learn about them.
Achieved through online e-mail communications,
Save – Save costs sales and service transactions to reduce staff, print
and postage costs
Achieved through providing a new proposition and
Sizzle –Extend the new experience online while at the same time
brand online appearing familiar
Interactivityand Intelligence
Individualisation
Integration
Interactivity and intelligence
Traditional Media
Push
Company Customers
Direct Response
Traditional TV, radio, print media, Direct mail communications
New Media
Interactivity
Dialogue not monologue
Push/Pull
Company Customers
Intelligence
Two-way feedback
Customer
Traditional Media
Company Customer
Same message
to all customers
Customer
(or customers in
each segment)
Customer
New Media
Company Customer
Different message
to each customer Customer
(or customers in
micro segment)
Integration
Intermediary
Web
Company E-Mail Customer
Phone
Mail
Person
Channel requiring integration as part of integrated e-marketing strategy
It adds value to individual/customer
Access Knowledge &
People
Increased network of Improved know-how
contacts
Internet
Improved Customer Improved market
Service value
Professional
Advantage
It adds value to Organization
Closer ties &
relationship with
customers
Improved understand Improved R & D
of customer needs
Internet
Improved Customer Faster speed to
Service market
Competitive
Advantage
Marketing Marketing/Purchasing
Internet
Internet Extranet Extranet
Intranet
Intranet
IT Dept The Company The
World only World
Suppliers Suppliers
Customers Customers
Collaborators Collaborators
1. Whether to go for online marketing
2. Type of web presence
3. Budget allocation
4. Which Parts of the Value Chain Should be
Done Online
5. Web Security
Business
Strategy
A. Defining
the online a. Evaluate e- 1. Set e- b. Assess online
opportunity marketing marketing marketplace
performance objectives
B. Selecting 2. Define e-
a. Define customer b. Define e-
the strategic marketing
value proposition communications mix
strategy
approach
a. Implement 3.Implement
b. Execute e-
customer e-marketing
C. Delivering plan communications
experience
results online
4. Profile,
measure and
improve
1. Transactional e-commerce site:
◦ Amazon, Dell
2. Services-oriented/relationship
building
◦ Naukri.com, Accenture
3. Brand Building site
◦ Airtel, Rolex
4. Portal or media site
◦ Yahoo!, Silicon.com
5. Note that these types overlap
Basic training
Strategic/commercial reflections (to define
content, promotion methods, …)
Web designing and updating
Business process integration
Web site promotion (online and/or offline)
Protecting web sites from fraudulent users
Ensuring the security of transmitted data
Payment security
Offline Online
Product Product
Evaluation Evaluation
Decision to Decision to
purchase purchase
1
2
Mail, Specify Specify
Fax, purchase purchase
Phone, 3
Person Payment Payment
4
5
Fulfillment
Fulfillment
(digital)
Most and least requested pages
Average user session length
Top entry and exit pages
Single access pages
Top paths through site
Information about the most frequent visitors
Top authenticated users
Top referring sites and search engines
Browsers and operating system most used by
users
No. of hits
No. of pages viewed. In a web page, each image is considered as
one hit
No. of visits. In average, a visit means to surf on 10 pages.
No. of unique visits.
No. of transactions. A transaction can be done in several ways:
sending an e-mail, taking part in a contest, making a purchase, etc.
No. of orders.
Territorial exclusivity
Price differences between “territories”
Solutions for Conflicts Arising
To jointly agree on policies dealing with price, product range,
etc.
To prevent - as much as possible - users from some countries
to access a site. Alternatively, to have country-specific price
lists or to deliver to some countries only.
To deal only with new markets.
To make only direct sales (e.g. computer company
www.dell.com)
Expensiveness of international shipping
Increased marketing costs to obtain qualified
traffic, fame and confidence.
Increased risks of fraudulent payments.
Foreign languages. Most web users understand
English but may not be proficient enough to
dare to realise transactions.
Goals B2B B2C
Opportunity
Opportunity -Get new clients
-Help get new clients
Obstacles
Acquire new clients
Obstacles -Promotion
-Promotion -Payment
-Physical delivery -Payment fraud
-Physical delivery
Opportunity
Reduce interaction
-Many opportunities with existing customers,
costs
suppliers, employees, press
Web advertising is the action of promoting
your website using online advertising
tools, techniques and methods proven to
get the results you are looking for.
It is used simultaneously as online
advertising. Online advertising is basically
the action of actively promoting your new
business.
◦ 3/4 of PC users gave up some television time
◦ Well educated, high-income Internet users are a
desired target for advertisers
◦ Ads can be updated any time with a minimal cost;
making them timely and very accurate
◦ Ads reach very large number of potential buyers all
over the world
◦ Online ads are much cheaper in comparison to
television, newspaper, or radio ads
◦ Web ads effectively use text, audio, graphics, and
animation
◦ Ads easily combine games, entertainment, and
promotions
◦ Web TV and Internet radio are attracting more
people
◦ Web ads can be interactive and targeted
◦ The use of the Internet is growing very rapidly
Internet advertisements are accessed on demand
24 hours a day, 365 days a year, and costs are the
same regardless of audience location
Accessed primarily because of interest in the
content, so market segmentation opportunity is
large
Opportunity to create one-to-one direct marketing
relationship with the consumer
Multimedia will increasingly make Web sites more
attractive and compelling
Internet is the fastest growing medium in history –
(4 years to reach 50mil ppl)
Banners
Pop-ups
Interstitials
E-mail advertising
URLs
Newspaper-like standardized ads
Advertising in chat rooms
Banners are electronic billboards
Gateway to a firm on the net
Keyword banners and random banners
Banner most common promotes brand
recognition
The standard sizes for banner ads are
400x40 pixels or 468x60 pixels.
Keyword banner
Random banner
An initial Web site page or a portion of that is
used to capture the user’s attention for a short
time
Ability to create innovative multimedia effects
and interactivity
Most however, non-interactive and interruptive
Popular with advertisers since they perform well
in creating brand recall and have a higher click-
through rate than banners
◦ Argued to be the most effective marketing
communication tool for acquiring and retaining
customers
◦ Several million users may be reached directly
◦ Send the company information (low cost)
◦ A wide variety of audiences (customer database) -
Purchase e-mail addresses
◦ Target a group of people that you know something
about - messages can be targeted
◦ When permission has been granted email marketing
is more personal and less intrusive
◦ Problems: Junk mail & Spamming
◦ Advantages:
Minimal cost is associated with it
Submit your URL to a search engine and be listed
Keyword search is used
◦ Disadvantages:
Search engines index their listings differently
Meta tags can be complicated
Important part of Internet strategy since firms
need to be found
The top 10 spots on a search list are difficult
and expensive to get
Alternatives:
Buy rankings or keywords, so firm appears
first
Have banner appear when a search word is
entered
Google gives search results based on number
of links leading to the site
Virtual meeting ground
Free addition to a business site
Allows advertisers to cycle through messages
and target the chatter again and again
Advertising can become more thematic
More effective than banners
Used for one-to-one connections
Associated Ad Display Strategy
Affiliate Programs
Partnerships
Sponsorship
Serial Marketing
Ads as commodities
Viral marketing
Loyalty Programs
Customized ad strategy
Online Events, Promotions, and Attractions
Associate the content of a Web page with a
related ad like:
Search Yahoo on a topic, a banner pops up
offering “search for books at”
Amazon.com
Barnesandnoble.com
Keyword banners
Just-in-time strategy
A particular site directs users to an e-
commerce site and in turn receives a
commission for sales generated by the user.
Affiliate programs involves independent
advertising by firm A of firm B’s products
If products sold then firm A receives a
commission
People are paid for the time spent viewing
an ad
Direct payment made by the advertisers for
ads viewed
Consumers fill out questionnaires
CyberGold distributes targeted banners
Reader clicks the banner, passes some tests on
its content, and is paid for the effort
Word-of-mouth over the Internet
Easily forwarded e-mail messages from
sites
Forward sites by filling out e-mail
addresses
“Advocacy marketing”—hotmail.com
Each e-mail sent invited free hotmail service
Company grew from 0 to 12 million in 18 months
Downsides
E-mail hoaxes
Spread of viruses
Filtering the irrelevant information by
providing customized ads
One-to-one advertisement
Customized ads in Webcasting
Personalized news and information by category
Users select specific categories they want to
receive
Enticing Web surfers to read Internet ads
Yoyodine, Inc.
Give-away games, discounts, contests,
sweepstakes
Entrants agree to read product information of
advertisers
Netzero and others offer free Internet
access in exchange for viewing ads
Offer free samples (freesamples.com)
Use company logo as cursor
◦ Page-loading speed
Graphics and tables—simple, meaningful, and match
standard monitors
Thumbnails (icon, graphs) are useful
◦ Business content
Clear and concise text with compelling page title and
header text
Minimal amount of information requested for
registration
◦ Navigation efficiency and compatibility
Links—well-labeled, accurate, meaningful
Site—compatible with browsers, software, etc.
◦ Security and privacy
Security and privacy must be assured
Must provide option for rejecting cookies
◦ Marketing Customer Focus
Clear terms/conditions of the purchases—delivery
information, return policy, etc.
Confirmation page after a purchase
◦ Navigation efficiency and compatibility
Links—well-labeled, accurate, meaningful
Site—compatible with browsers, software, etc.
◦ Security and privacy
Security and privacy must be assured
Must provide option for rejecting cookies
◦ Marketing Customer Focus
Clear terms/conditions of the purchases—delivery
information, return policy, etc.
Confirmation page after a purchase
Methods for measuring advertisement
effectiveness, conducting cost benefit analyses,
pricing ads
Exposure Models Interactivity
Multiple of number of Based on how customer
guaranteed ad views
interacts with the ad view
Number of hits
How much time was spent
Click-Through
viewing the ad
Number of times customers
click on banner Actual Purchase
Only effective for large Referral fee based on
corporations customers moving to ad site
to make a purchase
