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Chapter 8 E-marketing

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E-marketing
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability
Which e-marketing tools can assist?
Web, e-mail, databases, wireless and digital television

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Issues for managers 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?

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Distinguishing e-marketing and e-business

(a) Electronic business has some degree of overlap with electronic marketing. From the discussion of the marketing concept above we can reject this since both e-marketing and e-marketing are broad topics. (b) Electronic business is broadly equivalent to electronic marketing. This is perhaps more realistic, and indeed some marketers would consider ebusiness and e-marketing to be synonymous. (c) Electronic marketing is a subset of electronic business. It can be argued that this is most realistic since e-marketing is essentially customer-oriented and it has less emphasis on supply chain and procurement activities in comparison with e-business.
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Inputs to the e-marketing plan from situation analysis

Figure 8.3 Inputs to the e-marketing plan from situation analysis

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Demand analysis
What percentage of customer businesses have access to the Internet? What percentage of members of the buying decision 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?
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Activity - competitor analysis

Which criteria would you use to compare a competitors online offering? Group them under five or six headings Conduct an assessment of your services against competitors such as RAC and Green Flag Products car breakdown cover, insurance

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Examples of SMART e-marketing objectives

Start-ups acquiring a specific number of new customers or to sell advertising space to generate a specified revenue that will hopefully exceed investment in site creation and promotion! Established mobile phone operator increase customer retention by reducing churn from 25 per cent to 20 per cent. Established media company increase online revenue, target of 20 per cent online contribution to revenue by offering new online services and media sales. Established business-to-business engineering company increase overall revenue by 5 per cent, through targeting sales in new international markets. Reduce costs of routine customer service by 10 per cent to enable focus on delivery of specialized customer service.
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Assessment of the future online promotion contribution, online revenue contribution and service contribution for the B2B company, for Product A, Europe

Figure 8.5 Assessment of the future online promotion contribution and online revenue for The B2B Company, for Product A, Europe Marketing Insights Limited 2004

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Example online revenue contributions

Organisation Sector Online contribution Overall turnover

Cisco

B2B Networking hardware

B2C Air travel B2B, B2C Computers B2C Clothing B2C Books B2B Electronics B2C Food B2C Grocery B2C Travel

90%

$19bn

easyJet Dell Lands End Clothing Book Club Associates Electrocomponents Dominos Pizza Tesco Thomas Cook

90% 48% 11% 10% 7% 3.4% 1.4% <1%

264m $25bn $1.3bn 100m 761m Group 76m 18.4bn 1.8bn

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Stages in target marketing strategy development

Figure 8.7 Stages in target marketing strategy development

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