e-Marketing

MBA 7607 – Managing E-Business

Faculty of Management Studies

University of Delhi
October 21, 2020

Prof. Jyoti P. Das

What does marketing Involve
Marketing is the management process responsible for identifying, anticipating
and satisfying customer requirements efficiently

Identify Anticipate Satisfy Efficiently

• Needs from customer • Customer needs by asking • Needs with prompt • market prices reflect all
comments, enquiries, questions and engaging in responses, punctual available, relevant
requests and complaints a dynamic dialogue deliveries, order status information.
solicited via the web updates, helpful
site’s email facility, • Collaborative filtering to
reminders,
bulletin boards, chat identify and anticipate
rooms what customers’ might • After-sales services
like •
• Sales patterns seeing Added value services
what’s selling and what’s • Sophisticated profiling combined with the
not techniques to do data dynamic dialogue
mining to discover and
• New customer groupings anticipate buyers’ needs
identified by data mining
through customer data,
sales and interests,
recorded using web
analytics which reveal
insights into interests
determined by pages
visited

Prof. Jyoti P. Das

What is e-marketing

e-Marketing focuses on how the web technologies, especially the internet, can be used
to achieve this.

• Identifying: how can internet be used for

marketing research and following trends
• Anticipating: leveraging the internet to
find out the “Next Big Thing”, what is
important to the customer, what are they
willing to pay, creating new products
• Satisfying: achieve customer satisfaction
through the electronic channel
• Profitably: use the least expensive tools
to reach the most number of people

The science and art of exploring, creating, and delivering value to satisfy the needs of a
target market at a profit.

Prof. Jyoti P. Das

Impact of ICT on e-marketing

• A customer is the most important. In today’s

business world conditions are dictated by consumers
who determine competition conditions. Increased
buying power, constantly changing needs and
expectations lead to a shortened product life cycle.
• Speed. Information on the Internet is changing at a
high speed, so the customer has to constantly
monitor the process.
• Distance abolition. With the emergence of the
Internet geographical barriers have disappeared.
Companies communicate with their clients from
various parts of the world. Attainability on a global
scale is the factor which allows reaching markets
which previously were not available. Therefore, the
Internet is regarded as the global market with no
limits.
• Lack of time constraints. It is non-stop activity, that
is twenty-four hours a day, seven days a week (24/7)
• The intellect-based capital – imagination, creativity
and entrepreneurship are more important resources
that financial capital.
The Internet and its ability to create competitive advantages

Prof. Jyoti P. Das

Operational processes of e-marketing

• Customer acquisition.
Attracting visitors to a web
site or promoting a brand
through reaching them via
search engines or
advertising on other sites.
• Customer conversion.
Engaging site visitors to
achieve the outcomes the
site owner seeks such as
leads, sales or browsing of
other content. Developing a
satisfactory customer
experience is vital to this.
• Customer retention and
growth. Encouraging
repeat usage of digital
channels and for
transactional sites, repeat
sales.

Prof. Jyoti P. Das

Management processes of e-marketing
Management for e-marketing needs different kind of skills set and leadership style than
in-person marketing. In marketing most leadership functions are exerted through
technology rather than face-to-face. There is an absolute need to have a clear and well
defined system of management control for feedback and motivation.
A manager must have online communication proficiency, comfortable with tools and
techniques and must follow etiquette of online communication. Managers and the
employees mush have real-time access to reports, feedback, updates and guidelines

Modern marketing philosophy requires that organizations be committed to a marketing

or customer orientation. This concept involves all parts of the organization coordinating
activities to ensure that customer needs are met efficiently, effectively and profitably
The development of e-business services in response to changes in market needs is one
example of market orientation
Prof. Jyoti P. Das
Objectives of e-marketing
e-marketing includes of the main principles of traditional marketing but with a couple of
differentiating characteristics. One main benefit of e-marketing is that its impacts are
quantifiable.

Immediacy Personalization Relevance

• The web changes at a • Customers online are no • Communication online
blistering pace and online longer faceless members of must be interesting and
audiences, whose attention a broad target audience – relevant to the reader,
spans are short, expect on- they are individuals who otherwise it will simply be
the-minute updates and want to be addressed ignored
information. personally. • With all the information
• To keep the favour and • Use the wealth of personal that is competing for your
attention of this group, you information available online audience’s attention, you
must respond to online to your benefit by targeting must find a way to stand
messages and interact with the relevant people out and engage readers
communities as quickly as precisely and personally • The best way to do this is
possible. by giving them exactly what
they want, when they want
it.

Prof.
Prof. Jyoti
JyotiP.P.Das
Das
 Principles of e-Marketing – 5s
Sell using the Internet as a selling tool
• The clearest benefit of e-marketing is the capability to sell from an online presence. Although this may not be
practical for all products, an online presence is still important in supporting the buying decision leading to sales
through traditional channels .

Serve using the Internet as a customer service tool

• A web presence can be used to add value for customers at different stages of the buying process, whether pre-sales,
during the sale or post-sales support

Speak using the Internet as a communication tool

• One of the many benefits of e-marketing is getting close to customers again. By speaking to them you can explore
the other benefits (selling, serving, saving and sizzling) now or later. Get closer to customer by tracking them, asking
them questions, creating a dialogue, learning about them

Save using the Internet for cost reduction

• Online marketing saves money in many different ways. Of all the benefits of online marketing (selling, serving,
speaking, saving and sizzling), saving is the one that will help to present any business case, as the financial
fraternity relate to savings very quickly. The other benefits of online marketing (selling, serving, speaking and
sizzling) will strengthen the business case.

Sizzle using the Internet as a brand building tool

• Extend the brand online by reinforcing brand value in a totally new medium. Objectives should also consider how to
enhance a brand by adding value online. This can include adding to the experience of the brand through interactive
facilities. Protecting the brand through achieving trust about security and confidentiality is also important

Prof. Jyoti P. Das

The e-marketing mix

2P +2C + 3S
Personalization , Privacy
2
+
Customer Service, Community
+
Site, Security, Sales Promotion

Prof. Jyoti P. Das

 2P +2C + 3S

Privacy Customer
Personalization Community Site Security Sales promotion
service

The need to Connected to Required support Generated by Location where Essential Strategy for sales
recognize and “privatisation’ function in nature of internet e-marketing function of e- goals in terms of
identify a certain Use and transactional Entities that interactions take marketing once volume
customer in protection of
situations interact for a place transaction begin
Find new
order to personal Be treated as common purpose Available at any to be performed
possibilities and
establish through the
information long-term, on- Value of a moment ant any new approaches
relations Internet
going process place – digital for developing
Policy on access network equals
To gather all local for digital Need to include efficient
procedures and Essential pat for to square of the
possible collecting the e-marketing number of interactions • Security during promotion plan
information in information mix components ‘Site” maybe transactions
Keep up with
order to develop more than being performed
Account for Service and Value of a on the website latest Interest
customized,
conventional technologies and
personalized regulations and support calls on community rises
website • Security of data
legal aspects all elements of with the number applications
products and collected and
services regarding 4Ps of its members Special location, stored
collection and accessible via
Example: use Customer/clients Communication
usage of personal can be part of a digital of security
cookies to gain information technologies
personalized community safeguards to
mediates all customers
information of Encouraging other functions
web use interaction in the of e-marketing
community
should be
undertaken

Prof. Jyoti P. Das

Essence of e-marketing: the customer drives the business
• E-marketing involves getting close to customers, understanding them better and maintaining a
dialogue with them
• Broader than e-commerce since it is not limited to transactions between an organization and
its stakeholders, but includes all processes related to marketing
Dynamic dialogue

• Online marketing builds on the database of customers and prospects and creates a constant
flow of communications between customers and suppliers and between customers
themselves
• Dynamic dialogue is at the heart of Online marketing. Dynamic means It’s a two-way flow of
communications – an ongoing discussion between customer and supplier cites
• The power of this dialogue is that it not only engages audiences, but gives associated boosts to
search engine optimization (SEO) and social media optimization (SMO) through the backlinks
and social sharing that it creates. This gives positive ranking signals to the search engine.
• Online marketing helps create a business which is customer led . . . where the customer
participates through a constant dynamic dialogue, expressing interests, requesting products
and services, suggesting improvements, giving feedback

E-marketing helps create a business which is customer led

. . . where the customer participates through a constant dialogue expressing interests, requesting
products and services, suggesting improvements, giving feedback . . .

Prof. Jyoti P. Das

Essence of e-marketing: building an integrated multichannel
touch or contact strategy

• Understand the importance of building an integrated multichannel touch or

contact strategy
• Deliver customized communications to consumers through search or
Right Touching

behavioural targeted display ads, emails and web recommendations and

promotions.
• Every customer interaction or response to a communication should be followed
up by a series of relevant communications delivered via the right combination
of channels (web, email, phone, direct mail) to elicit a response or further
dialogues products they have recently purchased

This is contextual or ‘Sense and Respond’ marketing...

where the aim is to deliver relevant messages which fit the current context of what the
customer is interested in according to the searches they have performed

Prof. Jyoti P. Das

Right touching: e-marketing checklist

• Search marketing

• Behavioural targeting or online advertising

• Multi-touches across different digital media channels for acquisition

• Customer lifecycle model and welcome strategy

• Reducing online attrition

• Delivering relevant recommendations for retention and growth

• Following up on customer product or promotion interest

• Getting the frequency right

• Getting the channel right

• Getting the offer right

Prof. Jyoti P. Das

e-marketing communication mix

• Online marketing communications: Methods

used by firms to communicate with consumer
and create strong brand expectations
• Merchandising communications: Suggest
consumer “buy now” and make offers to
encourage immediate purchase
• Branding communications: Focus on extolling
differentiable benefits of consuming product or
service
• Advertising communication is the broad and
direct communication that introduces product
and service to the public, educates about
products and services, prompts people with an
interest to take action and provides urgency
when you convey special promotions

Prof. Jyoti P. Das

E-marketing communication channels

Blog marketing
E-mail marketing

Social media marketing

Viral marketing

Search engine marketing

Pay-per-click marketing
Prof. Jyoti P. Das
Characteristics of digital media communication – 6i

Interactivity Intelligence Individualization Integration Independence of Industry

Refers to the Refers to how Refers to the Location Restructuring
Allows visitors
to engage with data gained dynamic the combining of Refers to Refers to how
the website and through market content of a different media consumers having marketing
brand on a research and website is to suit channels to the ability to methods are
higher level. how a company an individuals provide a more access the continuously
Contributing to may use needs. wholesome website no evolving to suit
their marketing information such marketing matter where the times and
efforts and as customer approach. This they are located this causes
providing social demographics to allows for greater or what device waves in the
proof. their advantage. interactivity and they are using as industry as more
Combination of intelligence as long as they have marketing tasks
pull and push users should an internet are automated
marketing easily be able to connection. This through new
move from one means that the technologies
channel to marketing can
another via the also be done
integrations independent of
location

Prof. Jyoti P. Das

E-marketing planning
An e-marketing plan is needed in addition to a broader e-
business strategy to detail how the sell-side specific
objectives of the e-business strategy will be achieved through
marketing activities such as marketing research and
marketing communications.
Since the e-marketing plan is based on the objectives of the
e-business or business strategy there is overlap between the
elements of each approach, particularly for environment
analysis, objective setting and strategic analysis
The e-marketing plan in the context of other plans

We use a similar strategy process model for e-marketing

planning that we used for making the e-business strategy
Measurement of the effectiveness of e-marketing is an
integral part of the strategy process in order to assess
whether objectives have been achieved.
The loop is closed by using the analysis of web analytics
data metrics collected as part of the control stage to
continuously improve e-marketing through making
enhancements to the web site and associated marketing
communications. SOSTAC™ – a generic framew ork for e-marketing planning

Prof. Jyoti P. Das

Is a separate e-marketing plan required

• The figure shows the hierarchy of plans for an organization, from a

corporate or business plan which informs a marketing strategy which in
turn informs marketing plan for different brand or markets leading to
communication plans and campaign briefs for different markets or brands.
But where does the e-marketing plan fit? Does the organization need
one?
• An e-marketing plan may be useful to manage the 'e-campaign
components' which refers to online communications tools such as online
advertising or e-mail marketing or continuous e-marketing activities which
may be conducted throughout the year to drive traffic, for example search
engine marketing, affiliate marketing or online sponsorship.
• The practical approach for organizations that are embracing e-marketing
is to integrate e-marketing activities within their existing planning
frameworks.
• But in many organizations, a distinct e-marketing plan is initially essential
if the organization is to effectively harness e-marketing. Since online
channels are new, it is even more imperative to have clarity within the
organization.
• An e-marketing plan helps to inform and influence not only senior
managers or directors and other non-marketing functions, but also to
achieve buy-in from fellow marketers
 E-marketing planning process

E-marketing
Achieving marketing
objectives through use
of electronic
communications
technology.

E-marketing plan
A plan to achieve
the marketing
objectives of the e-
business strategy.
E-marketing planning framework

Where are we now?

• Goal performance (5 Ss)
• Customer insight
• E-marketplace SWOT Where do we want to be?
• Brand perception 5 Ss objectives:
How do we monitor •Sell – customer acquisition
• Internal capabilities and
performance? resources and retention targets
•5 Ss + web analytics – KPIs •Serve – customer satisfaction
•Usability testing/mystery Situation
targets
analysis
shopper •Sizzle – site stickiness, visit
•Customer satisfaction surveys duration
• Site visitor profiling Control •Speak – trialogue; number of
• Frequency of Objectives engaged customers
reporting •Save – quantified efficiency
• Process of reporting gains
and actions
The details of tactics, who Strategy How do we get there?
does what and when Actions •Segmentation, targeting and
•Responsibilities and positioning
structures •OVP (online value
•Internal resources and skills Tactics proposition)
•External agencies •Sequence (credibility before
visibility)
How exactly do we get there? •Integration (consistent OVP)
(the details of strategy) and database
•E-marketing mix, including: the •Tools (web functionality, e-
communications mix, social mail, IPTV etc.)
networking, what happens when?
•Details of contact strategy
•E-campaign initiative schedule

SOSTAC™ – a generic framew ork for e-marketing planning

Situation Analysis – where are we now

The aim of situation analysis is to understand the current and future environment in
which the company operates in order that the strategic objectives are realistic in light of
what is happening in the marketplace.
Situation analysis Internal audits
 Current Internet marketing audit (business, marketing and Internet
marketing effectiveness)
 Audience composition and characteristics
 Reach of web site, contribution to sales and profitability
 Suitability of resources to deliver online services in face of competition.

External audits
 Macro-economic environment
 Micro-environment – new marketplace structures, predicted customer
activity
 Competition – threats from existing rivals, new services, new companies
and intermediaries.
Assess opportunities and threats (SWOT analysis)
 Market and product positioning
 Methods of creation of digital value and detailed statement of
customer value proposition
 Marketplace positioning (buyer, seller and neutral marketplaces) Inputs to the e-marketing plan
 Scope of marketing functions.
Components of situation analysis

Demand analysis Competitor analysis Intermediary analysis Internal marketing audit

• A key factor driving e- • Monitoring of competitor • Situation analysis involves • An internal audit will assess
marketing objectives is the use of digital and web identifying relevant the capability of the
current level and future technologi es to acquire intermediaries for a resources of the company
projections of customer and retain customers is particular marketplace. such as its people, processes
demand for e-commerce especially important in the • These will be different types and technology to deliver e-
services in different market e-marketplace due to the of portal such as horizontal marketing compared with its
segments. dynamic nature of the and vertical portals which competitors. It also reviews
• This will influence the Internet medium. This will be assessed for the way in which a current
demand for products online enables new services to be suitability for advertising, PR web site or e-commerce
and this, in turn, should launched and promotions or partnership. services performs. The audit
govern the resources changed much more rapidly • This activity can be used to reviews the following
devoted to different online than through print identify strategic partners or elements
channels. communications. will be performed by a • Business effectiveness -the
• Demand analysis examines • The implications of this media planner or buyer contribution of the site to
current and projected dynamism are that when executing an online revenue , profitability and any
customer use of each digital competitor benchmarking is indications of the corporate
advertising campaign.
channel and different not a one-off activity while mission for the site
• The other main aspect of
services within different developing a strategy, but • Marketing effectiveness -the
situation analysis for
target markets. needs to be continuous. way in which the elements of
intermediaries is to consider
• It is important that customer • Benchmarking of the marketing mix are utilized
analysis not be restricted to competitors’ online services
the way in which the is reviewed.
quantitative demand and strategy is a key part of marketplace is operating. To • Internet effectiveness -these
analysis qualitative research planning activity and should what extent are competitors are measures that are used to
provides insights that can be also occur on an ongoing using dis-intermedation or assess the way in which the
used to inform strategy basis in order to respond to re-intermediation? How are web site is used, and the
new marketing approaches existing channel characteristics of the
such as price or promotions arrangements being audience.
changed?
Objective Settings – where do we want to be
Effective e-marketing plans are based on clearly defined objectives since these will be
used to create the strategies and tactics and help in communicating the strategic aims..
Strategies are agreed to be most effective when they support specific business objectives.
A useful technique to help align strategies and objectives is to present them together in a
table together with the insight developed from situation analysis
Substantiation (informed by situation Strategies to achieve goals Key performance indicators (critical
Objectives analysis or insight, example) success factors)

1. Acquisition objective. Acquire 50,000 Based on grow th forecast based on Start affiliate marketing programme Overall CPA for online sales.
new online customers this financial year current sales of 40,000 sales per and improve SEO. Existing media Incremental number and % of sales
at an average cost per year, but w ith incremental sales mix based on pay-per-click and from affiliate marketing
acquisition (CPA) of £30 w ith an arising from new affiliate programme display advertising supported by Number of strategic keyw ords ranked
average profitability of 5% and SEO development offline media for in top positions in natural search
results page

2. Acquisition (or conversion) objective. Direct marketing campaign using Number and percentage of existing
Extrapolation of current natural
Migrate 40% of existing customers to direct mail, phone, prompts and customers registering to use online
migration coupled w ith increased
using online ‘paperless’ bill payment on-line persuasion to increase service
adoption from online direct
adoption. Use of incentives to Number and percentage of customers
services and e-mail communications marketing campaign
encourage change actively using online services at different
w ithin 3 years
points after initial registration
3.Conversion objective. Increase the Grow th estimated based on Use of new merchandising system % of site visitors responding to
average order value of online sales to current AOV of £35 plus model to show users related “next best merchandizing / cross-selling messages
£42 per customer suggesting 20% increase in AOV product” for different product
categories

4. Retention objective. Increase annual Business case based on limited Delivery of personalized product Increased conversion rate of retention e-
repeat new customer conversion rate by personalization of offers to offers by e-mail mail contact programme
20% encourage repeat purchases via e- 5% second purchase discount Conversion to sale for second purchase
mail voucher discount campaigns

5. Growth objectives Increase new Models based on encouraging 2% Supported by direct mail and e- Response rate to direct mail campaign
prospects recommended by friends (viral of the customers to recommend mail recommendation
marketing or member get member) by friends annually programme
10,000 per annum
Objective Settings – where do we want to be
Effective e-marketing plans are based on clearly defined objectives since these will be
used to create the strategies and tactics and help in communicating the strategic aims..
Strategies are agreed to be most effective when they support specific business objectives.
A useful technique to help align strategies and objectives is to present them together in a
table together with the insight developed from situation analysis
Substantiation (informed by situation Strategies to achieve goals Key performance indicators (critical
Objectives analysis or insight, example) success factors)

1. Acquisition objective. Acquire 50,000 Based on grow th forecast based on Start affiliate marketing programme Overall CPA for online sales.
new online customers this financial year current sales of 40,000 sales per and improve SEO. Existing media Incremental number and % of sales from
at an average cost per year, but w ith incremental sales mix based on pay-per-click and affiliate marketing
acquisition (CPA) of £30 w ith an arising from new affiliate programme display advertising supported by Number of strategic keyw ords ranked for
average profitability of 5% and SEO development offline media in top positions in natural search results
page

2. Acquisition (or conversion) objective. Direct marketing campaign using Number and percentage of existing
Extrapolation of current natural
Migrate 40% of existing customers to direct mail, phone, prompts and on- customers registering to use online
migration coupled w ith increased
using online ‘paperless’ bill payment line persuasion to increase service
adoption from online direct
adoption. Use of incentives to Number and percentage of customers
services and e-mail communications marketing campaign
encourage change actively using online services at different
w ithin 3 years
points after initial registration

3.Conversion objective. Increase the Grow th estimated based on Use of new merchandising system % of site visitors responding to
average order value of online sales to current AOV of £35 plus model to show users related “next best merchandizing / cross-selling messages
£42 per customer suggesting 20% increase in AOV product” for different product
categories
Increased conversion rate of retention e-
4. Retention objective. Increase annual Business case based on limited Delivery of personalized product
mail contact programme
repeat new customer conversion rate by personalization of offers to offers by e-mail
Conversion to sale for second purchase
20% encourage repeat purchases via e- 5% second purchase discount
discount campaigns
mail voucher

5. Growth objectives Increase new Models based on encouraging 2% Supported by direct mail and e- Response rate to direct mail campaign
prospects recommended by friends (viral of the customers to recommend mail recommendation
marketing or member get member) by friends annually programme
10,000 per annum

Prof. Jyoti P. Das

Objective Settings – using balanced scorecard approach

Balanced scorecard sector Efficiency Effectiveness

Financial results (business • Channel costs • Online contribution (direct)

It is important to have SMART e- value) • Channel profitability • Online contribution (indirect)
• Profit contributed
marketing. It is also important to use Customer value • Online reach (unique visitors as • Sales and sales per customer
•
metrics which combined efficiency •
% of potential visitors)
Cost of acquisition or cost per •
New customers
Online market share
•
and effectiveness in the context of the •
sale (CPA or CPS)
Customerpropensity to defect •
Customer satisfaction ratings
Customer loyalty index
Operational processes • Conversion rates • Fulfilment times
balanced scorecard. The table • Average ordervalue • Support response times
• List size and quality
presents detailed e-marketing metrics • E-mail-active %
Innovation and learning • Novel approaches tested • Novel approaches deployed
in this way. (people and knowledge) • Internal e-marketing education • Performance appraisal review
• Internal satisfaction ratings

E-marketing objectives w ithin the balanced scorecard framework for a transactional e-business site

For objective setting it is important to

define the online revenue contribution
as a target to improve performance.
The figure gives an example
combining the online revenue
contribution and the online promotion
contribution as a forecast based on
marketing research of demand analysis
and competitor analysis
Assessment of the future online promotion contribution and online revenue
Strategy – how do we get there

The strategy element of an e-marketing plan defines how e-marketing objectives will be
achieved. Strategy definition has to be tightly integrated into the e-marketing planning
process since e-marketing planning is an iterative process from situation analysis to
objective setting to strategy definition
The output from the strategy will be series of strategic e-marketing initiatives in the key
areas of customer acquisition, conversion or retention. These initiatives will be prioritized
and placed as part of a long-term e-commerce ‘roadmap’ defining required developments
over a longer period of 18 months to three years.
The amount invested on the Internet should be based on the anticipated contribution the
Internet will make to a business
From a sell-side e-business perspective, a key aspect of vision is how the web and digital
technologies will primarily complement the company’s other channels or whether it will
replace other channels.
If e-business will primarily replace other channels, then it is important to invest in the
technical, human and organizational resources to achieve this. Replacement will happen if
• customer access to the Internet is high
• the Internet can offer a better value proposition than other media
• the product can be delivered over the Internet
• the product can be standardized
Types of e-marketing strategy initiatives
Type of digital m arketing Com mentary Exam ples of strategy implementation
strategy initiative

These new site features or other online

1.New customer proposition • Bank – introduce new product requiring different quotes
communications w hich are directly related to offering
(Product, Place, Pricing) • Portal – introduce comparison service
new products or services, potentially from new
locations that w ill generate revenue • Service company – introduce new functionality acquired
through takeover of company

2. Customer acquisition These are projects to enhance a site’s capability to • SEO

strategic initiatives deliver new prospects on a continuous basis through • PPC
different online marketing techniques. • Affiliate marketing
They may involve investment in the site itself (e.g. • Aggregators
• Enhance page type (to help increase conversion rate),
SEO) or the back-end, integrating w ith affiliates.
e.g. category or product landing pages

Investments in new customer features on the site. These • Implement online shop / secure payment
3. Customer conversion and customer
w ill be based on a business case of increased conversion • Introduce customer review s and ratings
experience strategic initiatives
rate and average order value. • Merchandising capability to offer tailored promotions
May include major new functionality such as that for a new • Interactive tools to help product selection
online store or more specific functionality integrated into • Refine on-site search engine
existing site functionality. • Buyers guides consis ting of in-depth content about
Many strategic initiatives are aimed at improving the products or rich media (e.g. videos show casing products)
customers’ experience of a brand.

4. Customer development and growth Investments to improve the experience and delivery of • Personalized recommendations for existing customers
strategic initiatives offers to existing customers. • Development of e-mail w elcome strategy for new online
customers as part of development of an integrated contact
or e-CRM strategy deliver through personalized w eb and
e-mail messages and traditional direct communications.
• Introduce blogs or RSS feeds to encourage return visitors
• Introduce more participation through customer
communities

• Offline retailer launches ‘click and reserve’ service

5. Channel integration initiatives These may reference any of the strategies
above. • Digital facilities introduced in-store
• Integration of mobile marketing into direct mail or e-mail
campaigns

6. Enhance m arketing capabilities These typically involve (back-end or back-office • CRM or personalization
through site infrastructure features) which won’t be evident to users of the • Content management system
im provement site, but ill help in the management or • Performance management – improve management information,
administration of the site. Will often involve w eb analytics systems including systems for multivariate and AB
improving customer insight capabilities testing
• Improve customer feedback or other customer survey facilities
• Update development approach for introducing new functionality
Strategy definition – market and product positioning
The Internet offers new opportunities for selling new products into new markets. These pre-
sent strategic alternatives that need to be evaluated. The risks involved with the four options of
market penetration, market development, product development and both market and product
development (diversification) vary, as shown in the figure
There may also be options for new digital Market development strategies Diversification strategies
Use Internet for targeting: Using the Internet to support:
products that could include information •New geographic markets •Diversification into related
businesses
products that can be delivered over the web. •New customer segments

New markets
•Diversification into unrelated
The following potions should be evaluated: businesses
•Upstream integration (w ith
• Offering additional information or transaction suppliers)
•Dow nstream integration (w ith

Market growth
services to existing customer base? intermediaries)

• Addressing the needs of new customer segments

Market penetration strategies Product development strategies
Use Internet for: Use Internet for:
by repackaging current information assets or by •Market share grow th – compete more •Adding value to existing products
effectively online •Developing digital products
creating new business propositions using the •Customer loyalty improvement – (new delivery/usage models)
Internet? Existing markets
migrate existing customers online and
•Changing payment models
add value to existing products,
• Ability to attract customers to generate new
(Subscription, per use, bundling)
services and brand
•Increasing product range
•Customer value improvement –
sources of revenue such as advertising or sales of increase customer profitability by
(Especially e-retailers)
decreasing cost to serve and increase
complementary products? purchase or usage frequency and

• Will current business be significantly harmed by

quantity
Existing products New products
other companies providing some of the value Product growth
currently offer? Using the Internet toProduct growth
support different growth strategies
Strategy definition – target market strategies
we need to review the options for using the digital media to reach new markets or
develop existing markets. Within both of these markets we need to analyse the target
market in more detail to understand their needs and potential and then develop a
strategy to satisfy these markets to maximize revenue. This is target marketing strategy and
involves the four stages shown in the figure.

The first stage is segmentation. Segmentation

involves understanding the groupings of customers
in the target market to understand their needs and
potential as a revenue source in order to develop a
strategy to satisfy these segments while maximizing
revenue.
In an e-marketing planning context market segments
will be analyzed to assess:
• Their current market size or value, future projections of
size and the organization’s current and future market
share within the segment.
• Competitor market shares within the segment.
• Needs of each segment, in particular unmet needs.
• Organization and competitor offers and proposition for
each segment across all aspects of the buying process
Strategy definition – target market strategies
The targeting approaches used for online acquisition and retention campaigns will depend
on established segmentation. The table summarizes options for targeting customers online.
Relationship with company. Marketers have to consider
whether it will be cost-effective to have separate
communications for new, existing and lapsed contacts – or to
target each of these groups in the same communications but
using different content aimed at each.
Demographic segmentation. This is typically based on age, sex
or social group. Online demographics are often used as the
basis for which sites to purchase display advertising or for
renting e-mail lists
Psychographic or attitudinal segmentation. Certain sites may
be more suitable for reaching a particular psychographic
audience. The psychographic characteristics of the audience
are still an important part of the brief, to help develop
particular messages.
Value. The higher-value customers will warrant separate
communications with different offers.
Lifecycle stage. This is very useful where customers follow a
particular sequence in buying or using a service, such as online
grocery shopping or online banking. Automated event-
triggered e-mail marketing can be developed for this audience. The power of digital technology is that it makes it
Behavioural. It involves assessing customers’ past actions in easier and more cost-effective to deliver targeted
following links, reading content, using online services or buying messages on a web page or in an e-mail
products, and then follows up on these with a more relevant compared to traditional media.
message
Strategy definition – target market strategies
Five areas that need to be analyzed to develop a customer-centric strategy for e-marketing
are:
Who are our customers?
.
This involves identifying target segments that share certain characteristics and needs. Different criteria
for identifying segments include demographics and geographical location for the B2C market and
organizational characteristics and members of the buying unit for the B2B market
How are their needs changing?
Understanding the needs of different segments when they venture online is important to the next
stages of delivering value to the customer.
Which do we target?
This is an important strategic decision in e-marketing. Segments for targeting online are selected which
are most attractive in terms of growth and profitability. These may be similar to or different from
groups targeted offline.
How can we add value?
Customer value is mainly dependent on the comb- nation of product quality, customer service quality,
fulfilment time and price. Companies need to decide for each segment which of these is most
important and then seek to adjust these elements accordingly as part of the marketing mix described
in the next section.
How do we become first choice?
To decide on this it is necessary to know how to position within the marketplace relative to competitor
offerings. Positioning is related to how a consumer perceives a product in terms of the elements of
value described above.
Strategy definition – content strategies

A compelling OVP demands exceptional, compelling content and a compelling experience

provided for customers through the website and other online presence on blogs, social
networking sites and mobile platforms
Today by content we do not refer only to the static content forming websites but also
dynamic rich media content which encourages interaction.
The challenge for creating content strategy has increased by leaps and bounds since today
there are so many different types of content delivered in different forms to different
places on different access platforms.
Therefore, the following elements of content management needs to be planned and
executed very meticulously
• Content engagement value: which type of content will engage the audience
• Content media: plain text, rich media, flash or rich Internet applications or mobile aps
• Content syndication: content can be syndicated to different types of sits through feeds, APIs,
microformats or direct submission by email.
• Content participation: content today is not delivered only for static consumption, it should
enable commenting, rating and reviews
• Content access platform: different access platforms such as desktops and laptops of different
screen resolution, and mobile devices.
Tactics – using the web to vary the marketing mix
Marketing tactics to implement strategies and objectives are traditionally based around the elements
of the marketing mix. There are many methods for approaching tactics. One approach is to use
customer-driven tactics that affect both the design and services provided by an e-business site. A
different approach to structure e-marketing tactics is that of customer relationship management
The marketing mix – the 4 Ps of Product, Price, Place and Promotion is used as an essential part of
implementing marketing strategy
The 4 Ps have been extended to the 7 Ps by including three further elements that better reflect service
delivery: People, Processes and Physical evidence
The marketing mix is applied frequently when developing marketing strategies since it provides a
simple framework for varying different elements of the product offering to influence the demand for
products within target markets.
E-business provides new opportunities for the marketer to vary the marketing mix, so it is worthwhile
outlining these

Prof. Jyoti P. Das

Tactics – product mix
Tactics – product
• There are many alternatives for varying the product when a company is developing its online
strategy.
• Internet-related product decisions can be usefully divided into decisions affecting the core
product and the extended product. For some companies, there may be options for new digital
products which will typically be information products that can be delivered over the web
• In some cases, the core product offering has been replaced by infor mation about the product.
• The Internet also introduces options for mass customization of products.
• Companies can also consider how the Internet can be used to change the range or combination of
products offered. Some companies only offer a subset of products online Alternatively, a company
may have a fuller catalogue available online than is available through offline brochures. Bundling is
a further alternative.
• Also related to the product element of the mix is how the Internet can be used to assist in new
product development by assessing product needs from web-site logs, testing new concepts, online
surveys and focus groups.
• The implication of the Internet and globalization is that to remain competitive, organizations will
have to roll out new products more rapidly to international markets.
• Viral marketing or word-of-mouth communication has a tremendous impact on the rate of
adoption of new products and we can suggest this effect is often enhanced or facilitated through
the Internet
Tactics – promotion
Tactics – product
Specification of the promotion is part of a communications strategy. This include selection
of target markets, positioning and integration of different communications tools.
The Internet offers a new, additional marketing communications channel to inform
customers of the benefits of a product and assist in the buying decision. The main elements
of the promotional or communications mix and their online equivalents are shown in the
table:
One approach for developing promotion tactics is to
specify the communications techniques required for
different stages of the buying process Com munications
tool
Online im plementation

Another approach is to look at how the Internet can Advertising Interactive display ads, pay per click search advertising

supplement the range of promotional activities such Selling Virtual sales staff, site merchandising, chat and affiliate marketing
Sales promotion Incentives such as coupons, rewards, online loyalty schemes
as advertising, sales promotions, PR and direct Public relations Online editorial, blogs, feeds, e-newsletters, newsletters, social
marketing. netw orks, links and viral campaigns
Sponsorship Sponsoring an online event, site or service
The Promotion element of the marketing plan also Direct mail Opt-in e-mail using e-new sletters and e-blasts (stand-alone
emails)
requires three important decisions about investment Exhibitions Virtual exhibitions and w hitepaper distribution
for the online promotion or the online Merchandising Promotional ad serving on retail sites, personalized
recommendations and e-alerts
communications mix: Packaging Virtual tours, real packaging is displayed online

• Investment in promotion compared to site creation and Word-of-mouth Viral, affiliate marketing, e-mail a friend, links

maintenance
• Investment in online promotion techniques in comparison The main elements of the promotional mix
to offline promotion.
• Investment in different online promotion techniques
Prof. Jyoti P. Das
Tactics – price element
Tactics – product
• The price element of the marketing mix refers to an organization’s pricing policies which
are used to define pricing models and, of course, to set prices for products and services.
The Internet has dramatic implications for pricing in many sectors
• Two approaches that have been commonly adopted for pricing on the Internet.
start-up organizations have tended to use low prices to gain a customer base
existing companies have transferred their existing prices to the web.

• The main implications of the Internet for the Price aspect of the mix are:
Increased price transparency and its implications on differential pricing
Downward pressure on price
New pricing approaches (including dynamic pricing and auctions)
Alternative pricing structure or policies
• Pricing online has to take into account the concept of price elasticity of demand. This is
a measure of consumer behaviour based on economic theory that indicates the change
in demand for a product or service in response to changes in price. Price elasticity of
demand is determined by the price of the product, availability of alternative goods from
alternative suppliers (which tends to increase online) and consumer income.
Tactics – place
The Internet has the greatest implications for place in the marketing mix since the
Internet has a global reach. However, due to cost and time of international fulfilment
together with issues of trust in the local country and the availability of phone support,
most products are still sourced locally.
The exception to this is digital products where there is no physical limitation on fulfilment
The main implications of the Inter- net for the Place aspect of the mix, which we will
review in this section, are
• Place of purchase - in a B2B context, e-commerce is conducted on the manufacturer’s own site, at
an intermediary or is procured on a customer’s site
• New channel structures - new channel structures such as changes introduced by
disintermediation, re-intermediation and counter-mediation
• Channel conflicts - a significant threat arising from the introduction of an Internet channel is that
while disinter- mediation gives a company the opportunity to sell direct and increase profitability
on products, it can also threaten distribution arrangements with existing partners. Such channel
conflicts need to be carefully managed. Further channel conflicts involve other stakeholders
including sales representatives and customers. Customers who do not use the online channels
may also respond negatively if lower prices are available to their online counterparts.
• Virtual organizations – e-business has introduced the concept of virtual organizations from an e-
marketing perspective. There are three levels of virtual organizations – half fusion organizations,
fusion organizations, and e-organizations
Tactics – people, process and physical variables

People variable are the elements of the marketing mix that involves the delivery of
service to customers during interactions with customers.
Process variable are the elements of the marketing mix that involves the methods and
procedures companies use to achieve all marketing functions
Physical evidence variable are the elements of marketing mix that involves the tangible
expression of a product and how it is purchased and used.
People, Process and Physical evidence are particularly important for service delivery. Since
service delivery is an important aspect of e-business this is referred to as excelling in e-
business service quality
Actions

The actions component of e-marketing planning refers to activities conducted by

managers to execute the plan. Questions that need to be resolved when specifying
actions include:
• What level of investment in the Internet channel is sufficient to deliver these services?
• What will be the payback?
• What training of staff is required?
• What new responsibilities are required for effective Internet marketing?
• Are changes in organizational structure required to deliver Internet-based services?
• What activities are involved in creating and maintaining the web site?
• At this stage an e-marketing plan will be finalized to summarize actions that need to occur

At this stage an e-marketing plan will be finalized to summarize actions that need to
occur.
Control

The control element of the e-marketing plan can be achieved through a combination of
traditional techniques such as marketing research to obtain customer views and opinions
and novel techniques such as analysis of web-server log files that use technology to
monitor whether objectives are achieved.
Identify a measurement process and metrics covering:
 Business contribution (channel profitability – revenue, costs, return on investment)
 Marketing effectiveness (channel outcomes – leads, sales, conversion rate,
channel satisfaction)
 Online marketing effectiveness (channel behaviour – page impressions, visitors,
repeat visits, conversion rates).
Intranets can be used to share information among marketers and consultants within
an organization
E-marketing plan framework

1. Situation analysis
Internal audits
• Current Internet marketing audit (business, marketing and Internet marketing effectiveness)
• Audience composition and characteristics
• Reach of web site, contribution to sales and profitability
• Suitability of resources to deliver online services in face of competition
External audits
• Macro-economic environment
• Micro-environment – new marketplace structures, predicted customer activity
• Competition – threats from existing rivals, new services, new companies and inter-mediaries.
Assess opportunities and threats (SWOT analysis)
• Market and product positioning
• Methods of creation of digital value and detailed statement of customer value proposition
• Marketplace positioning (buyer, seller and neutral marketplaces)
• Scope of marketing functions

2. Objectives statement
• Corporate objectives of online marketing (mission statement)
• Detailed objectives: tangible and intangible benefits, specific critical success factors
• Contribution of online marketing to promotional and sales activities
• Online value proposition
E-marketing plan framework
3. Strategy definition
• Investment and commitment to online channels (mixture of bricks and clicks)
• Market and product positioning – aims for increasing reach, new digital products and new business and
revenue models
• Target market strategies – statement of prioritized segments, new segments, online value proposition and
differential advantage. Significance of non-customer audiences?
• Change management strategy

4. Tactics
• Product. Creating new core and extended value for customers, options for migrating brand online
• Promotion. Specify balance of online and offline promotion methods. Role of CRM (incentivization to acquire
new customer registrations and opt-in e-mail to retain customers)
• Price. Discounting online sales, options for setting pricing, new pricing options, e.g. auctions
• Place. Dis-intermediation and re-intermediation, seller, buyer or neutral sales
• People, process and physical evidence. Online service delivery through support and characteristics of web site.

5. Actions
Specify:
• Tasks
• Resources
• Partnering and outsourcing
• Budget including costs for development, promotion and maintenance
• Timescale
E-marketing plan framework

5. Actions
Implementation
• Key development tasks: analysis of business and audience needs, scenario-based design, development of
content, integration of databases, migration of data, testing and changeover
• Project and change management
• Team organization and responsibilities
• Risk assessment (identify risks, measures to counter risks)
• Legal issues
• Development and maintenance process

6. Control
• Identify a measurement process and metrics covering:
 Business contribution (channel profitability – revenue, costs, return on investment)
 Marketing effectiveness (channel outcomes – leads, sales, conversion rate, channel satisfaction)
 Online marketing effectiveness (channel behaviour – page impressions, visitors, repeat visits, conversion
rates).
Weekly assignment

What are the critical elements of an e-marketing plan intended to implement the e-
marketing strategy

Submission date: October 27, 2020

Online Marketing Metrics: Lexicon

 Metrics that focus on  Metrics that focus on  E-mail metrics

success of Web site in conversion of visitor to
achieving audience or customer
market share
Open rate
• Impressions • Acquisition rate
•

• Click-through rate (CTR) • Delivery rate

• Conversion rate
• View-through rate • Browse-to-buy-ratio
• Click-through rate (e-
(VTR) mail)
View-to-cart ratio
• Hits
•
• Bounce-back rate
• Page views • Cart conversion rate • Unsubscribe rate
• Stickiness (duration) • Checkout conversion rate • Conversion rate (e-mail)
• Unique visitors • Abandonment rate
• Loyalty • Retention rate
• Reach  Attrition rate
• Recency
Online Marketing Metrics: Lexicon

 Metrics that focus on success of Web site in achieving audience or market share

• Impressions - Number of times an advertisement is served

• Click-through-rate (CTR) - The percentage of times an advertisement is clicked.
• Hits - Number of HTTP requests. Hits can be misleading as a measure of Web site activity because
a “hit” does not equal a page. A single page may account for several hits if the page contains
multiple images or graphics. A single Web site visitor can generate hundreds of hits.
• Page Views - Number of pages viewed.
• Stickiness - Average length of stay at a Web site.
• Unique Visitors - Number of unique visitors in a period.
• Loyalty - Measured variously as the number of page views, frequency of single-user visits to the
Web site, or percentage of customers who return to the site in a year to make additional
purchases.
• Reach - Percentage of Web site visitors who are potential buyers; or percentage of total market
buyers who buy at the site
• Recency - Time elapsed since the last action taken by a buyer; such as Web site visit or purchase.
Online Marketing Metrics: Lexicon

 Metrics that focus on conversion of visitor to customer

• Acquisition Rate - Percentage of visitors who indicate an interest in the Web
site’s product by registering or visiting product’s pages.
• Conversion Rate - Percentage of visitors who become customers.
• Browse to Buy Ratio - Ratio of items purchased to products viewed.
• View to Cart Ratio - Ratio of “Add to Cart” clicks to product views
• Cart Conversion Rate - Ratio of actual orders to “Add to Cart” clicks
• Checkout Conversion Rate - Ratio of actual orders to checkouts started
• Abandonment Rate - Percentage of shoppers who begin a shopping cart
purchase, but then leave the Web site without completing a purchase
(similar to Checkout Conversion Rate)
• Retention Rate - Percentage of existing customers who continue to buy on a
regular basis
• Attrition Rate - Percentage of customers who do not return during the next
year after making an initial purchase.
Online Marketing Metrics: Lexicon

 E-mail Metrics

• Open Rate - Percentage of email recipients who open the email and are exposed to the
message
• Delivery Rate - Percentage of email recipients who received the email
• Click-through Rate (Email) - Percentage of email recipients who clicked through to offers
• Bounce-back Rate - Percentage of emails that could not be delivered
• Unsubscribe Rate - Percentage of recipients who click unsubscribe
• Conversion Rate (Email) - Percentage of recipients who actually buy