Chapter # 08 (E-Marketing)

Slide 8.
E-MARKETING
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition Marketing Insights Ltd 2007
Slide 8.2
Learning outcomes
Assess the need for separate e-business

and e-marketing strategies
Create an outline e-marketing plan
intended to implement the e-marketing
strategy
Distinguish between marketing
communication characteristics of
traditional and new media.
Slide 8.3
Management issues
How do we integrate traditional marketing

approaches with e-marketing?
How can we use electronic
communications to differentiate our
products and services?
How do we redefine our marketing and
communications mixes to incorporate new
media?
Slide 8.4
Marketing
The definition of marketing by the Chartered

Institute of Marketing (http://www.cim.co.uk/) is:
Marketing is the management process responsible
for identifying, anticipating and satisfying
customer requirements profitably
Which e-marketing tools can assist?
Web, e-mail, databases, wireless and digital television.
Slide 8.5
How do e-tools support

marketing?
Identifying how can the Internet be used for
marketing research to find out customers needs

and wants
Anticipating anticipating the demand for digital

services
Satisfying how to achieve customer satisfaction

through the electronic channel
Profitably
Figure1
The e-marketing plan in the context of other plans
Slide 8.7
E-marketing defined
Achieving marketing objectives through

use of electronic communications
technology
Another similar term is digital marketing
Slide 8.8
E-marketing planning
A e-marketing plan is needed to detail

the specific objectives of the e-business
strategy through marketing activities
Figure 8.2
SOSTAC a generic framework for e-marketing planning
Slide 8.10
SOSTAC
Developed by Paul Smith (1999)

Summarizes the different stages that
should be involved in a marketing
strategy from strategy development to
implementation
Slide 8.11
Is a separate e-marketing
plan required?
Customer demand will be underestimated

Existing and start-up competitors will
gain market share
Duplication of resources
Insufficient resources will be devoted to
planning
Insufficient customer data are collected
Efficiencies available through online
marketing will be missed
Figure 8.4
Inputs to the e-marketing plan from situation analysis
Slide 8.13
Situation Analysis
To understand the current and future

environment in which the company
operates
Involves consideration of all of these
factors and will form the basis for
defining objectives, strategies and
tactics
Slide 8.14
Demand analysis
What percentage of customer businesses have

access to the Internet?
What percentage of members of the buying unit in
these businesses have access to the Internet?
What percentage of customers are prepared to
purchase your particular product online?
What percentage of customers with access to the
Internet are not prepared to purchase online, but
are influenced by web-based information to buy
products offline?
What are the barriers to adoption amongst
customers and how can we encourage adoption?
Figure 8.5
Customer demand analysis for the car market
Slide 8.16
Competitor Analysis
The monitoring of competitor use of ecommerce to acquire and retain

customer
Companies should review:
Well-known competitors
Well-known international competitors
New Internet companies locally and
worldwide
Slide 8.17
Benchmarking solutions
Financial performance
Marketplace performance market share and sales trends and
significantly the proportion of sales achieved through the Internet.
Business and revenue models do these differ from other
marketplace players?
Marketing communications techniques is the customer value
proposition of the site clear? Does the site support all stages of the
buying decision from customers who are unfamiliar with the company
through to existing customers, are special promotions used on a
monthly or periodic basic? Beyond the competitors site, how do they
make use of intermediary sites to promote and deliver their services?
Services offered what is offered beyond brochureware? Is online
purchase possible, what is the level of online customer support and
how much technical information is available?
Implementation of services these are the practical features of site
design such as aesthetics, ease of use, personalization, navigation
and speed.
The 7Ps.
Slide 8.18
Intermediary analysis
Identifying relevant intermediaries for a

particular marketplace
Identify strategic partners when
executing an online advertising
campaigns
To consider the way the marketplace is
operating
Slide 8.19
OBJECTIVE SETTING
Slide 8.20
SMART e-marketing
objectives
Specific
Measurable
Achievable
Realistic
Time-constrained
Assessment of the future online promotion contribution and online revenue

for The B2B Company, for Product A, Europe
Figure 8.6
Slide 8.22
The Online Revenue

Contribution
A measure of extent to which a

companys online presence directly
impacts on the sales revenue of the
organization
Slide 8.23
STRATEGY
Slide 8.24
De Kare Silvers ES test

1.Product characteristics. Does the product need to
be physically tried or touched before it is bought?
2.Familiarity and confidence. Considers the degree
the consumer recognizes and trusts the product
and brand.
3.Consumer attributes. These shape the buyers
behaviour are they amenable to online purchases
in terms of access to the technology skills
available and do they no longer wish to shop for a
product in a traditional retail environment?
Figure 8.8
Stages in target marketing strategy development
Slide 8.26
Target market strategies
Evaluation and selection of appropriate

segments and the development of
appropriate offers
5 questions when developing strategy:
Who are our customers?

How are their needs changing?
Which do we target?
How can we add value?
How do we become first choice?
Slide 8.27
Characteristics of new-media
marketing communications
Interactivity
Intelligence
Individualization
Integration
Industry restructuring
Independence of location
Summary of communication models for (a) traditional media,

(b) new media
Figure 8.9
Slide 8.29
Intelligence
Summary of degree of individualization for (a) traditional media (same

message), (b) new media (unique messages and more information exchange
between customers)
Figure 8.10
Slide 8.31
Individualization
Figure 8.11
Channels requiring integration as part of integrated e-marketing strategy
Slide 8.33
Integration
Slide 8.34
www.dell.com.my
Slide 8.35
Examples of integrated
communication tools
The internet can be used as a directresponse tool enabling customers to

respond to offers and promotions
publicized in other media
The web site can have a direct response
or callback facility built into it.
The Internet can be used to support the
buying decision even if the purchase
does not occur via web site.
Figure 8.12
Channel integration required for e-marketing and mixed-mode buying
Slide 8.37
TACTICS
Slide 8.38
Online value proposition
A clear differentiation of the proposition from

competitors based on product features or service
quality.
Target market segment(s) that the proposition will
appeal to.
How the proposition will be communicated to site
visitors and in all marketing communications.
Developing a tag line can help this.
How the proposition is delivered across different
parts of the buying process
How the proposition will be delivered and supported
by resources is the proposition genuine? Will
resources be internal or external?
Slide 8.39
Example OVPs
Compare. Buy. Save. Kelkoo (www.kelkoo.com)

Earths 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:
Welcome to Citibank: The one-stop solution for all your

financial needs.
Look for a product or service; Learn about a financial
product; Find a location.
Slide 8.40
Issues with varying the mix

online
Do we vary the mix online or replicate offline?
Is the offer clear brand proposition, online offer

Is online differentiation defined?
Is online differentiation communicated?
Key online mix variables
Product
Price
Place
Promotion
Service: People, Process, Physical evidence
The Marketing Mix
Figure 8.13
The elements of the marketing mix
Slide 8.42
Product
Extend range (Tesco)

Narrow range (WH Smith iDTV)
Online-only products (banks)
Develop new brand (Egg)
Migrate existing brand (HSBC)
Partner with online brand (Waterstones
and Amazon).
Slide 8.43
Product
Slide 8.44
Price
Differential pricing:
Reduce online prices due to price

transparency and competition (easyJet)
Maintain price to avoid cannibalisation of
offline sales (Dixon)
New pricing options (software, music):
Rental
Pay per use
Reverse auctions (B2B)
Dynamic pricing (Concert tickets).
Slide 8.45
Implications for price
Increased price transparency

Downward pressure on price
New pricing approaches
Alternative pricing structure or policies
Slide 8.46
Place
Place = avoiding channel conflicts
Disintermediation sell direct

Reintermediation partner with new
intermediaries
Countermediation:
Form new intermediaries

Partner
with existing intermediaries

Distance from intermediaries.
(Abbey National)
Slide 8.47
Implications on place
Place of purchase
New channel structures
Channel conflicts
Virtual organizations
Slide 8.48
Promotion
Selective use of new online tools for

different stages of the buying process and
customer lifecycle
Online only campaigns
Integrated campaigns incorporating
online tools into communications mix.
Slide 8.49
Service
People
Process
Automate use web self-service,

offer customer choice
Change process for service contact
strategies
Physical evidence
Site design differentiate or support brand

Fulfillment quality.
Slide 8.50
Slide 8.51
Branding
Malcolm McDonald in their classic 1992
book, Creating Powerful Brands as an
identifiable product or service augmented
in such a way that the buyer or user
perceives relevant unique added values
which match their needs most closely.
Furthermore, its success results from
being able to sustain these added values
in the face of competition.
Slide 8.52
Options for changing brand

identity online
Transfer traditional brand online

Extend traditional brand
Partner with existing digital brand
Create a new digital brand
Figure 8.15
Percent of marketing communications budget spent on e-communications
(n = 76)
Source: E-consultancy (2005)
Changes to brand perception and behaviour as a result of using the

Internet for research
Figure 8.16
Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004
The influence of brand knowledge on purchase. Matrix for question I will

buy a product if
Figure 8.17
Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004
Slide 8.56
Actions
What level of investment in the Internet

channel is sufficient to deliver services?
What training of staff is required?
What new responsibilities are required
for effective Internet marketing?
Are changes in organizational
restructuring required?
What activities are involved in creating
and maintaining the web site?
Slide 8.57
Control
Conduct marketing research

Analysis of web-server log files
Intranets can be used to share
information

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Slide 8.

Assess the need for separate e-business

How do we integrate traditional marketing

The definition of marketing by the Chartered

Which e-marketing tools can assist?

Web, e-mail, databases, wireless and digital television.

How do e-tools support

marketing research to find out customers needs

Anticipating anticipating the demand for digital

Satisfying how to achieve customer satisfaction

The e-marketing plan in the context of other plans

Achieving marketing objectives through

A e-marketing plan is needed to detail

SOSTAC a generic framework for e-marketing planning

Developed by Paul Smith (1999)

Customer demand will be underestimated

Inputs to the e-marketing plan from situation analysis

To understand the current and future

What percentage of customer businesses have

Customer demand analysis for the car market

The monitoring of competitor use of ecommerce to acquire and retain

Identifying relevant intermediaries for a

Assessment of the future online promotion contribution and online revenue

The Online Revenue

A measure of extent to which a

De Kare Silvers ES test

Stages in target marketing strategy development

Target market strategies

Evaluation and selection of appropriate

Who are our customers?

Summary of communication models for (a) traditional media,

Summary of degree of individualization for (a) traditional media (same

Channels requiring integration as part of integrated e-marketing strategy

The internet can be used as a directresponse tool enabling customers to

Channel integration required for e-marketing and mixed-mode buying

Online value proposition

A clear differentiation of the proposition from

Compare. Buy. Save. Kelkoo (www.kelkoo.com)

Welcome to Citibank: The one-stop solution for all your

Issues with varying the mix

Is the offer clear brand proposition, online offer

The Marketing Mix

The elements of the marketing mix

Extend range (Tesco)

Reduce online prices due to price

New pricing options (software, music):

Implications for price

Increased price transparency

Place = avoiding channel conflicts

Disintermediation sell direct

Form new intermediaries

with existing intermediaries

Selective use of new online tools for

Automate use web self-service,

Site design differentiate or support brand

Options for changing brand

Transfer traditional brand online

Percent of marketing communications budget spent on e-communications

Changes to brand perception and behaviour as a result of using the

The influence of brand knowledge on purchase. Matrix for question I will

What level of investment in the Internet

Conduct marketing research

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