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 INTERNATIONAL INTERNATIONAL
EDITION EDITION

EDITION
INTERNATIONAL
The editorial team at Pearson has worked closely with
educators around the globe to inform students of the
E-Marketing
SEVENTH EDITION
ever-changing world in a broad variety of disciplines.
Pearson Education offers this product to the international Judy Strauss • Raymond Frost

E-Marketing
market, which may or may not include alterations from the
United States version.

SEVENTH
EDITION
Strauss • Frost
This is a special edition of an established
title widely used by colleges and universities
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Library of Congress Cataloging-in-Publication Data

Strauss, Judy.
 E-marketing / Judy Strauss, Associate Professor of Marketing, University of Nevada,
Reno, Raymond Frost,
Professor of Management Information Systems, Ohio University. — Seventh
edition.
   pages cm
Includes bibliographical references and index.
ISBN-13: 978-0-13-295344-3
ISBN-10: 0-13-295344-7
1. Internet marketing. I. Frost, Raymond, II. Title.
HF5415.1265.S774 2014
658.8’72—dc23
2013010934

10 9 8 7 6 5 4 3 2 1

ISBN 10: 0-13-297024-4

ISBN 13: 978-0-13-297024-2

A01_STRA0411_07_EXAM_FM.indd 1 7/9/13 7:00 AM

 Seventh Edition

E-Marketing
Judy Strauss
Associate Professor of Marketing,
University of Nevada, Reno

Raymond Frost
Professor of Management Information Systems,
Ohio University
International Edition contributions by

Nilanjana Sinha
NSHM Business School,
Kolkata

Boston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal
Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

A01_STRA0411_07_SE_FM.indd 1 7/9/13 7:00 AM

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The rights of Judy Strauss and Raymond Frost to be identified as authors of this work have been asserted by them in accordance with the
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10 9 8 7 6 5 4 3 2 1
14 13 12 11 10
Typeset in Times LT Std Roman by PreMediaGlobal, Inc.
Printed and bound by Courier Westford in The United States of America

ISBN 10: 1-292-00041-4

ISBN 13: 978-1-292-00041-1

A01_STRA0411_07_SE_FM.indd 2 7/9/13 7:00 AM

 Judy: To my girls, Cyndi and Malia
Raymond: To my boys, David, Raymond, and Luke

A01_STRA0411_07_SE_FM.indd 3 7/9/13 7:00 AM

 Brief Contents
Preface 14

PART 1 E-Marketing in Context 17

Chapter 1 Past, Present, and Future 19
Chapter 2 Strategic E-Marketing and Performance Metrics 47
Chapter 3 The E-Marketing Plan 73

PART 2 E-Marketing Environment 89

Chapter 4 Global E-Markets 3.0 91
Chapter 5 Ethical and Legal Issues 117

PART 3 E-Marketing Strategy 149

Chapter 6 E-Marketing Research 151
Chapter 7 Connected Consumers Online 188
Chapter 8 Segmentation, Targeting, Differentiation, and Positioning
­Strategies 213

PART 4 E-Marketing Management 241

Chapter 9 Product: The Online Offer 243
Chapter 10 Price: The Online Value 265
Chapter 11 The Internet for Distribution 291
Chapter 12 E-Marketing Communication: Owned Media 325
Chapter 13 E-Marketing Communication: Paid Media 364
Chapter 14 E-Marketing Communication: Earned Media 392
Chapter 15 Customer Relationship Management 423

Appendix A Internet Penetration Worldwide as of December 31, 2011 459

Appendix B Glossary 465
Appendix C References 478
Index 486

A01_STRA0411_07_SE_FM.indd 4 7/9/13 7:00 AM

 Contents

Preface 14

Part 1 E-Marketing in Context 17

Chapter 1 Past, Present, and Future  19
E-Marketing Landscape 21
What Works? 21
Internet 101 23
E-Marketing Is Bigger than the Web 24
E-Marketing Is Bigger than Technology 24
E-Marketing’s Past: Web 1.0 26
The E Drops from E-Marketing 28
Marketing Implications of Internet Technologies 29
E-Marketing Today: Web 2.0 30
Power Shift from Sellers to Buyers 30
Customer Engagement 34
Content Marketing 35
Inbound Marketing 35
New Technologies 36
Exciting New Technology-Based Strategies 38
Other Opportunities and Challenges in Web 2.0 39
The Future: Web 3.0 40
Semantic Web 40
Stepping Stones to Web 3.0 42
Read on 44

Chapter 2 Strategic E-Marketing and

Performance Metrics  47
Strategic Planning 49
Environment, Strategy, and Performance 50
Strategy 50
From Strategy to Electronic Strategy 51
From Business Models to E-Business Models 52

A01_STRA0411_07_SE_FM.indd 5 7/9/13 7:00 AM

 6 Contents

E-Business Models 52
Value and Revenue 53
Menu of Strategic E-Business Models 54
Performance Metrics Inform Strategy 60
The Balanced Scorecard 62
Four Perspectives 63
Applying the Balanced Scorecard to E-Business
and E-Marketing 63
Social Media Performance Metrics 67
Awareness/Exposure Metrics 68
Brand Health Metrics 69
Engagement Metrics 69
Action Metrics 69
Innovation Metrics 70
Measurement Tools 70

Chapter 3 The E-Marketing Plan 73

Overview of The E-Marketing Planning
Process 75
Creating an E-Marketing Plan 75
The Napkin Plan 76
The Venture Capital E-Marketing Plan 76
A Seven-Step E-Marketing Plan 77
Step 1—Situation Analysis 78
Step 2—E-Marketing Strategic Planning 79
Step 3—Objectives 81
Step 4—E-Marketing Strategies 81
The Offer: Product Strategies 81
The Value: Pricing Strategies 82
Distribution Strategies 82
Marketing Communication Strategies 83
Relationship Management Strategies 83
Step 5—Implementation Plan 83
Step 6—Budget 84
Revenue Forecast 84
E-Marketing Costs 85
Step 7—Evaluation Plan 85

A01_STRA0411_07_SE_FM.indd 6 7/9/13 7:00 AM

 Contents 7

Part 2 E-Marketing Environment 89

Chapter 4 Global E-Markets 3.0 91

Overview of Global E-Marketing Issues 93
Global Markets 94
Emerging Economies 96
Importance of Information Technology 97
Country and Market Opportunity Analysis 98
Diaspora Communities 98
E-Commerce Payment and Trust Issues 99
Infrastructure Considerations 101
Technological Tipping Points 103
Legacy Technologies: Computers and Telephones 103
Wireless Internet Access: Mobile Phones 104
Smartphones 106
Broadband 107
The Digital Divide 108
Building Inclusive E-Markets 110
Social Networking 113

Chapter 5 Ethical and Legal Issues  117

Overview of Ethics and Legal Issues 119
Ethics and Ethical Codes 120
The Problem of Self-Regulation 121
Privacy 123
Privacy Within Digital Contexts 124
International Privacy Issues 129
Digital Property 132
Patents 132
Copyright 133
Trademarks 135
Licenses 137
Trade Secrets 139
Data Ownership 140
Online Expression 141
Emerging Issues 143
Online Governance and ICANN 143
Jurisdiction 143
Fraud 144

A01_STRA0411_07_SE_FM.indd 7 7/9/13 7:00 AM

 8 Contents

PART 3 E-Marketing Strategy 149

Chapter 6 E-Marketing Research 151

Data Drive Strategy 153
Big Data 154
Marketing Knowledge Management 155
The Electronic Marketing Information System 157
Source 1: Internal Records 158
Source 2: Secondary Data 160
Source 3: Primary Data 166
Other Technology-Enabled Approaches 179
Client-Side Data Collection 179
Server-Side Data Collection 180
Real-Space Approaches 181
Marketing Databases and Data Warehouses 182
Data Analysis and Distribution 183
Knowledge Management Metrics 185

Chapter 7 Connected Consumers Online  188

Consumers in the Twenty-First Century 190
Consumer Behavior Online 191
Inside the Internet Exchange Process 193
Technological Context 193
Social and Cultural Contexts 199
Legal Context 202
Individual Characteristics and Resources 202
Internet Exchange 205
Exchange Outcomes 205

Chapter 8 Segmentation, Targeting, Differentiation, and

Positioning Strategies  213
Segmentation and Targeting Overview 215
Three Markets 215
Business Market 216
Government Market 217
Consumer Market 217

A01_STRA0411_07_SE_FM.indd 8 7/9/13 7:00 AM

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