The introduction to E-Marketing.

1. MKT 403: Electronic Marketing
Chapter 1
E-Marketing: Past, Present & Future

2. Learning Objectives of
Chapter 1
 Explain how advances in internet and information
technology offer benefits and challenges to consumers,
businesses, marketers, and society.
 Distinguish between e-business and e-marketing.
 Explain how increasing buyer control is changing the
marketing landscape.
 Understand the distinction between information or
entertainment as data.
 Identify several trends that may shape the future of e-
marketing, including the semantic Web.
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3. Case Study: Obama and the
US Presidential Elections
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4. Learning from the Case
 Marketing principles never change and markets
always want good products.
 Markets always demand good customer
communication. Companies must meet the
demands of customers.
 Customers trust well respected brands and talk
to others about them.
 These classic marketing concepts are more
challenging when applied to social media,
mobile devices and internet technologies.
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5. Strategies & Tactics
 Electronic Commerce (E-Commerce):
 Conducting business over electronic systems such as
the Internet and other computer networks.
 Use of technologies such as mobile
commerce, electronic funds transfer, supply chain
management, Internet marketing, online transaction
processing, electronic data
interchange (EDI), inventory management systems,
and automated data collection systems.
 Over 50% of connected consumers use the internet to
buy products, bank, travel reservations or research
products before buying.
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6. 6
 Advertising Online:
 Online advertising is a bigger part of advertiser media
budgets than every other medium, except television and
newspapers.
 Search Engine Marketing:
 Paid search accounts for approximately 47% of online
advertising budgets (purchase keywords that present ads
on search engine results page).
 Google has maximum (67%) share for user search market.
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7.  Internet Communication:
 Instant messaging, email marketing, VoIP (Voice over
Internet Telephony).
 E.g.: Skype
 User-Generated Content:
 Online content like commercials, videos, photos,
blogs.
 E.g.: facebook, reviews
 Online Communities:
 Gather users with like minded interests for
conversation and networking.
 E.g.: LinkedIn
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8.  Mobile Internet Access:
 A report (2012) by the United Nations Conference on Trade
and Development (UNCTAD) reveals that there are 180
mobile phones for every 100 residents in Saudi.
 Opportunity for smartphone applications and advertising.
 Where consumers go, marketers follow.
 Local/ Location Based Marketing:
 Smartphone users can find a local business with a global
positioning system. E.g.: Google local search or
expatriates.com
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9.  Online Aggregators:
 Sites which bring together users and information.
 Bayt.com (job), wikipedia (information)
 Inbound Marketing:
 Shift from interrupt/push marketing to inbound/pull
marketing.
 Strategies to increase presence on internet.
 Metrics/ Web Analytics:
 Web analytics and many other techniques allow marketers
to keep track of every mouse click and use it to execute
their strategies and tactics.
 Google Analytics
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10. Types of Access to Internet
 Public Internet:
 Global network that is accessible by anyone,
anywhere, anytime.
 Intranet:
 Network that runs internally in a corporation.
 Like a mini internet but with password protection for
internal use.
 Extranet:
 Two or more networks that are joined for sharing
information.
 If a supplier and company link their intranet, it will be
an extranet. Access is only partial.
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11. E-Business, E-Commerce,
E-Marketing
 E-Business:
 Includes all Internet based interactions with business
partners, suppliers and customers.
 These can be: selling direct to consumers,
manufacturers and suppliers; monitoring and
exchanging information; auctioning surplus inventory;
and collaborative product design.
 E-Commerce:
 Subset of e-business focused on transactions.
 Includes buying, transferring, or exchanging products,
services, and/or information via computer networks,
including the internet.
 The term e-commerce is often used interchangeably
with e-business.
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12.  E-Marketing:
 ‘Marketing’ is a process by which companies
create value for customers and build strong
customer relationships.
 ‘E-marketing’ is the use of information
technology for the marketing activities, and the
process for creating, communicating, delivering
offerings that have value for customers.
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13. Effect of e-marketing on
traditional marketing
 E-marketing affects traditional
marketing in two ways:
1. Increases the efficiency and
effectiveness of traditional marketing
functions.
2. Transforms marketing strategies
which result in new business models
(Facebook, Twitter etc.).
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14. E-Marketing (Bigger than the
Web)
 The web is what most people think
about when they think of the
Internet.
 The web is the portion of the
internet that supports a graphical
user interface for hypertext
navigation with a browser.
 Electronic marketing reaches far
beyond the web.
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15.  Many e-marketing technologies exist without the
web, which include software/ hardware used in
customer relationship management, supply chain
management.
 Non-web internet communications such as e-mail
(ms-outlook), internet telephony (tango) and text
messaging (whatsapp) are effective for marketing.
 Internet delivers text, video, audio, graphics to
many information receiving appliances than
simply personal computers.
 Offline electronic data collection devices like bar
code readers and databases, receive and send
data about customers and products over intranet.
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16. E-Marketing (Bigger than
Technology)
 The Internet provides individual users
with convenient and continuous access to
information, entertainment, and
communication.
 Communities form around shared photos
(Instagram), videos (YouTube), and
individual or company profiles (Facebook).
 The digital environment enhances
processes and activities for businesses.
 Societies and economies are enhanced
through more efficient markets, more jobs,
and information access.
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17. Generations of Web
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18. Web 1.0 (1990-2000)
 Internet was started in 1969 as the ARPANET
when it was commissioned by US Department
of Defense’s Advanced Research Project
Agency (ARPA) as a network for academic and
military use.
 In 1979, the first online community (USENET)
began.
 In 1993, the first web pages and internet
browsers appeared.
 This stage is termed as Web 1.0
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19.  The information was published on the web in a
static manner.
 It was like a word document on the web with
pictures and formatting. Hyper-linking the web-
pages and bookmarking were two of the most
important aspect of Web1.0
 The first generation of e-business was like a
gold rush. But between 2000 and 2002, a lot of
Internet firms were shut down.
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20. Web 2.0 (2000-2010)
 This term was coined by Tim O’Reilly
 These technologies connect people with
each other through social media, which
have created opportunities and
challenges for marketers.
 There is a very high importance given on
usability and sharing.
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21. Opportunities/ challenges for marketers:
1. Power shift from sellers to buyers
2. Customer engagement
3. Content Marketing
4. Inbound marketing
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22.  Power shift from sellers to buyers:
 Individual and business buyers are more
demanding than ever because they are
just one click away from a big choice of
similar products from competitors.
 Internet’s social media provides a
communication platform where product
comments can be spread and can
enhance or damage a brand image.
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23.  Customer engagement:
 Online engagement is analogous to
offline experience marketing (Disney
theme parks).
 Online marketers engage users by
asking them to participate in their content
or media (upload photos, post
comments, ‘Like’ a company/ product
page on Facebook).
 E.g.: Doritos https://www.doritos.com/
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24.  Content Marketing:
 In addition to crowdsourcing, marketers use
their own content to engage users online.
 Content Marketing involves creating and
publishing content on websites and in social
media.
 All online content is a part of content
marketing and includes websites, social
network pages, blog posts, videos, e-books,
white papers.
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25.  Inbound marketing:
 Inbound marketing includes getting found online
through blogs, e-books, white papers, social
networks (facebook, twitter etc.); rather than
interrupting customers.
 54% consumers said they would avoid products
and services which push advertisements on
them through outbound marketing (Yankelovich
and Partners survey).
 Outbound marketing includes traditional media
advertisements, telephone calls, trade shows,
emails.
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27. Other Opportunities and
Challenges
 Internet adoption
matures.
 Online retail sales equal
4%+ of all sales.
 Search engines are now
reputation engines.
 Image recognition takes
root.
 Improved online and
offline strategy
integration.
 Intellectual capital rules.
 Decline of print media.
 Online fundraising
increases.
 Location-based services.
 The long tail.
 Everything is “FSTR.”
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28. Web 3.0 (2010-2020)
 Lines between traditional and new media
are blurring.
 Appliances are converging and
becoming “smart.”
 Wireless networking is increasing.
 Semantic web will provide worldwide
access to data on demand without effort.
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29. How do experts characterize
Web 3.0?
 Semantic web will be achieved and the
mobile device will be the primary Internet
connection tool by 2020 (Pew study).
 Interactive media will cannibalize
traditional media (Forrester Research).
 Web 3.0 will ultimately be seen as
applications which are pieced
together…run on any device…are very
fast…are distributed virtually (Eric
Schmidt of Google).
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30. Marketing implications of
internet technologies
1. Lower costs: Reach the customers at a lower cost than
with traditional marketing methods.
2. Measurable results: Obtain detailed data about customer
responses to marketing campaigns.
3. Global reach: Access new markets across the globe.
4. Personalization: Connecting database to website allows
for individually targeted offers.
5. One-to-one marketing: Instant access to individual
customers on computers and mobile phones.
6. Better conversion rates: Online customers are few clicks
from a purchase, whereas when offline they must visit a
store.
7. 24 hour marketing: 24/7 access to a firm’s products and
services, even when office is closed.
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31. Summary and Discussions
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