MGT 3225 EBusiness Lecture 5 EMarketing Md Mahbubul

MGT 3225: E-Business Lecture 5: E-Marketing Md Mahbubul Alam, Ph. D Associate Professor

Intended Learning Outcomes (ILOs) • • • 9/25/2020 Assess the need for separate e-business and e-marketing strategies, Create an outline e-marketing plan intended to implement the e-marketing strategy, Integrate traditional marketing approaches with e-marketing, Distinguish between marketing communication characteristics of traditional and new media, Redefine marketing and communication mixed to incorporate new media. Prepared & Presented by Md. Mahbubul Alam, Ph. D 2

What is e-marketing? • What is marketing? ü Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability. • Key objectives ü Identifying: find out customers, their needs and wants. ü Anticipating: Anticipate the demand for efficient resource allocation. ü Satisfying: Outcome of marketing campaign leads to customer retention. • What is e-marketing? ü The application of marketing principles and techniques to achieve marketing goals via ecommunication technology. ü An external perspective of how the Internet can be used in conjunction with traditional media to acquire and deliver services to customers. 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 3

Operational Process of e-marketing 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 4

Management Process of e-marketing 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 5

E-Marketing Plan: SOSTAC™ 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 6

Strategy Setting: Target Market Strategies • Target Marketing Strategy • Evaluation and selection of appropriate segments and the development of appropriate offers. • Segmentation • Identification of different groups within a target market in order to develop different product offerings and communications for the groups. 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 7

Example OVPs • ‘Compare. Buy. Save’. Kelkoo (www. kelkoo. com) • ‘Earth’s biggest selection’. Amazon (www. amazon. com) • ‘Search the largest inventory of cars and trucks on the Internet. More than 1. 5 million listings, updated daily’ (www. autotrader. com) • The Citibank site design (www. citibank. com) uses a range of techniques to illustrate its core proposition and OVP. The main messages are o Welcome to Citibank: The one-stop solution for all your financial needs o Look for a product or service; Learn about a financial product; Find a location 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 8

New Media Marketing: Characteristics 1. Interactivity: Push vs. pull media, two-way interaction. See, slide 33 2. Intelligence: Low-cost method for marketing research, customer profiling, e. g. , www. egg. com, www. hsbc. co. uk, www. lloydstsb. co. uk 3. Individualization: Broadcast same message vs. personalized message, e. g. , Dell Premier (www. dell. com/premier). See, slide 34. 4. Integration: ‘Customer-to-organization’ and ‘organization-to-customer’ communication. See, slide 35 -36. 5. Industry restructuring: Disintermediation, reintermediation and Countermediation. 6. Independent of location: Reach of company communication to the global market. 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 9

Communication models: Traditional media vs. New media • Traditional media o Push media o Company->customer • New media o Pull media o Customer seek information on a web site. o e. g. , FMCG brand like Nestle (www. nescafe. co. uk) 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 10

Degree of Individualization: Traditional media vs. New media 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 11

Channels Integration Strategy 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 12

Channel Integration: e-marketing and mixed-mode buying Mixed-mode buying: The process by which customer changes between online and offline channels during the buying process. e. g. , www. easyjet. com 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 13

Tactics: Product • Core product: Fundamental features of a product the meet users’ needs. • Extended product: Additional features and benefits beyond the core product. • Mass customization: Tailored versions of products to individual customers or groups of customers. • Bundling: multiple products are offered as individual items or groups at a reduce price. • Versioning • Subscription • Pay-per-view • Ad-supported content 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 14

Tactics: Price • Commoditization: Selection of product is more dependent on price than on differentiating features, benefits and value-added services. • Dynamic pricing: Prices can be update in real time according to the type of customer of current market conditions, e. g. , auctions, yield management, flash marketing, free & freemium • Aggregated buying: A form of customer union where buyers collectively purchase a number of items at the same price and receive a volume discount. • Satisficing behavior: Customer do not behave entirely rationally. They compare alternatives but may make choice given imperfect information. • Price elasticity of demand: Measure of consumer behavior that indicated the change in demand for a product/service in response to changes in prices. It assess the extent to which a change in price will influence demand for a product. o Elastic: A small change in price increases or reduces the demand substantially. o Inelastic: A large change in price is accompanied by a small amount of change in demand. 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 15

Tipping Point • The principle that describe the underpinning of the rapid spread of ideas, products and behaviors through a population. o Science of social epidemics o Word-of-mouth impact on the rate of adoption of new products. • Principles: Three 1. The law of the few: word-of-mouth and copycat behavior 2. The stickiness factor: attachment of the characteristics and attributes of a product or a brand. 3. The power of context: Products and behavior spread far and wide only when they fit the physical, social and mental context. • Read the Box 8. 3 on pp. 452 -453 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 16

Traditional Online Marketing and Advertising Tools • Search engine marketing and advertising üSearch engine marketing (SEM) Use of search engines for branding üSearch engine advertising Use of search engines to support direct sales üTypes of search engine advertising Sponsored links (keyword paid inclusion), Keyword advertising (Google’s Ad. Words), Network keyword advertising (context advertising, e. g. , Google’s Ad. Sense). üSearch engine optimization (SEO) techniques to improve the ranking of Web pages generated by search engine algorithms. üSocial search Utilizes social graph (friend’s recommendations, past Web visits, Facebook Likes, Google +1’s) to provide fewer and more relevant & trust-worthy results. • Display ad marketing, e. g. , Banner ads, Rich media ads, Video ads, Sponsorships, • E-mail marketing inexpensive & personalize; BUT Spam, poorly targeted e-mail list. • Affiliate marketing paid commission fee • Viral marketing inspired customers to pass messages to others • Lead generation marketing services and tools for collecting, managing & converting leads. • Social, mobile, and local marketing and advertising 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 17

Customer Retention Strategies • Customer retention strategies üPersonalization and one-to-one marketing • Retargeting showing the same ad to individuals across multiple Websites • Behavioral targeting üBased on data from search engine queries, clickstream history, social network data, and integration of offline personal data and records üEffectiveness still inconclusive üPrivacy issues • Customization: Changing the product üInformation goods ideal for differentiation • Customer co-production: Customers help create product • Customer service üFAQs, Real-time customer chat systems, Automated response systems 9/25/2020 Prepared & Presented by Md. Mahbubul Alam, Ph. D 18

Question Please ? Acknowledgement: “E-Business and E-Commerce Management: Strategy, Implementation and Practice” by Dave Chaffey