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Online marketing scenario

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Online marketing scenario

  1. 1. Online Marketing Scenario© Ramakrishna Kongalla,Assistant ProfessorRtist @ Tourism
  2. 2. Advantages and BarriersAdvantages• Reaches a large audience inexpensively.• Markets your mission with more marketing opportunities and moremarketing niches.• Allows renewal/retention at a much lower cost.• Increases new donors, retention and renewal rates, and loyalty.• Makes renewals easier and more effective when you use your websiteand email as tools for donor cultivation, relationship management,and stewardship versus purely for solicitation.• Increases accountability and donor confidence because you can offereasy access to information about where funds are being spent.• Gives immediate, personalized thank you messages online.• Offers higher response rates than pure direct mail.• Allows you to provide free public service information online inexchange for email addresses that will help build your core audience.Rtist @ Tourism
  3. 3. • Fosters community.• Creates opportunities for affinity programs in which yourorganization gets a portion of sales that originate from links on yourweb page.• Improves your capabilities for researching individual, foundation, andcorporate support such as who will give, how much, and to what?• Offers new and more effective ways to cultivate donors, such asemail greetings and video.• Reaches higher disposable income group compared to othermarketing methods.• Publicizes traditional fundraising programs.• Offers more fundraising choices, such as partnerships with e-commerce sites, charity auctions, direct donations, selling web spacefor advertising and corporate sponsorship, buying or trading webspace or links, and selling products and services.• Attracts new and nontraditional volunteers and allows for volunteerorientations and trainings.Rtist @ Tourism
  4. 4. Barriers• Cost of hardware, software, networkconnections, consultants, staff time, and training• Staff and volunteer resistance• Unrealistic expectations• Lots of competition online• Computer glitches and other technological headaches• Legal complexities since online fundraising isrelatively new• Regulations and fees, both for charitable giving andprofessional solicitationRtist @ Tourism
  5. 5. • Credit card laundering or “factoring” when an agent that’s notauthorized as a service reseller by a credit card company usesits own merchant account to offer credit card services to others• Unrelated business income tax when nonprofits partner withfor-profits in an online cause-related marketing venture• Up-front time investment to research and consult withattorneys, and accountants• Potential unfamiliarity with the technology among donors• Tax implications and possibility of alienating donors by pushingcommercial advertisements on them through corporatesponsorships• Tax implications of selling merchandise onlineRtist @ Tourism
  6. 6. Opportunities• Opportunity 1: Mobile Advertising - Mobile phones have arrived in a hugeway, and present many exciting opportunities to reach consumers ininnovative ways.• Opportunity 2: Social Network Advertising - Social networking sites now offerhighly targeted opportunities to connect with potential customers.• Opportunity 3: Competition for Google - Google has achieved a de factomonopoly on search and search advertising. Almost everyone would agreethat Google has revolutionized the search marketing business.• Opportunity 4: Tablets - Tablet computers have enjoyed an explosive rise inpopularity since the launch of the Apple iPad in April of 2010. They haveadded another option to the way the web is accessed.• Opportunity5: HTML 5 - The upgrade to HTML, the workhorse of theweb, offers some powerful benefits. HTML 4 came out in the late 1990s.Better graphics, Better geolocation, Off-line web applicationsRtist @ Tourism
  7. 7. Challenges• Challenge 1: The Goldfish Phenomenon: Fractured Attention - Goldfishare rumored to have a three-second attention span. Consumers andpotential consumers’ attention spans and ability to focus have beendegraded by the nature of surfing the web.• Challenge 2: Global Competition - The web is a great leveler – we dosometimes forget that the first and second ‘w’ in ‘www’stand forworld and wide, respectively.• Challenge 3: Overcoming The “Meh” Factor - “Meh” factor - as in theindifferent shrugging of the shoulders and open hands.• Challenge 4: Low Conversion Rates - Many sites are still plagued bylow rates of successfully converting visitors to consumers.• Challenge 5: The Field of Dreams Strategy - Field of Dreams was themovie with the voice that whispered “build it and they will come.” Toomany organizations rely on the Field of Dreams marketing strategy,building their site and thinking it will be enough to get peopleengaged.Rtist @ Tourism
  8. 8. Critical Success Factors of Internet Marketing– 1) Cut away the dead weight and keep what works.– 2) Quality Content is key– 3) Promote Information Products like e-books– 4) Be Patient, It Pays– 5) Attracting the right customers– 6) Delivering the content value– 7) e-loyality– 8) e-learning– 9) Delivering the digital valueRtist @ Tourism
  9. 9. Why Online marketing in India is yet to evolve?• Internet marketing can boom only if…– (1) there are a lot of online sales & serviceopportunities and businesses; and– (2) the Internet is the best proven channel outthere for marketing campaigns.• In the case of India, both are not yet at theirbest and the reasons are:Rtist @ Tourism
  10. 10. 1. Governance, laws and regulations– India is still not a very open economy although things havebeen changing for good since the mid eighties. Our financialand banking rules are not always the best conduciveenvironment for anyone to get started with a business –online or offline. When it comes to online businesses, thereare even stricter money transaction rules.– When it comes to law enforcement and protection againstcyber crime, though we have taken some initiatives, howoften an online criminal gets caught in this country?– Widespread corruption is another big issue. Many peopledon’t want to set up online shops to escape taxes and dothings unaccounted.Rtist @ Tourism
  11. 11. 2. Cultural issues– Indians are highly social and sociable people –– online can prevent them from getting the best deals out therefrom their favorite shops and shopkeepers (and their families)that they know for generations. Also, this gives themexcellent F2F opportunity to do maximum negotiation andreceive other freebies.– And festive offers in India during Diwali, Akshay Tritiya etcare unbeatable and probably not feasible to provide suchdiscounts via online mechanisms at the kind of volumeinvolved.– Further, if you know the shop people well, there is even zerodown payment option available for home appliancepurchases etc. This is definitely not possible in an onlinescenario.Rtist @ Tourism
  12. 12. 3. Online shopping worries– A lot of computer literate people are still hesitant toconsume online shopping facilities that are availableout there in India for the following reasons.• Fear factor: A lot of people still do not believe things that arenot tangible. It’s perhaps more of a cultural issue• Unreliable delivery mechanisms: In India, even the postalservice or the most expensive (and so-called safest) couriercompanies may not be able to guarantee prompt delivery dueto multiple factors including theft, tracking issues andcorruption• Credit card fraud and usage: Like in any other country, swipinga card is not always safe. In India specific cases, there areeven scenarios where you have to provide your card numberto the customer care executive over the phone which is notthe right way it should workRtist @ Tourism
  13. 13. 4. Lack of technical infrastructure– Broadband Internet access is still and expensive thing inIndia if you take get one for your home computer and stillthere are connection issues.– The backbone of any reliable online service or sales is astrong supply chain. Many times, the delivery of theadvertised service or product does not happen due to badsupply chain management.– Additional issues include the lack of supportinginfrastructure such as escrow services, legal advisory foronline businesses etcRtist @ Tourism
  14. 14. 5 Marketing philosophies & channels– Due to the social aspects, the Internet is still not the bestmarketing channel in India. Television, hoardings andcinema ads are still way ahead of the Internet when itcomes to preferred marketing channels. This also results inpoor quality affiliate networks, online ad services andeverything else.– Most of the affiliate networks in India do not provide agood commission package to the affiliates making them lessattractive. Moreover, there are a lot of inconsistencies anddishonesty prevailing with the networks as well. This hasfurther decelerated the affiliate marketing penetration inIndia. The CPA (cost per action) model itself is not fullyavailable in most Indian business scenarios.Rtist @ Tourism
  15. 15. Electronics for Online Marketing• Dial-up• 3G connections• WiFi and WiMax• Broadband - Internet• Computer and components• Mobile, I-pad• Laptop, Palmtop• LAN, Reuters, Servers• Websites• Homepages• Portals• Online gadgets• Online Banners• Internet EquipmentsRtist @ Tourism
  16. 16. Thank You…!!!©Ramakrishna Kongallae-mail: artist.ramakrishna@gmail.comRtist @ Tourism