Transcript Chpt7 - courses.psu.edu

CHAPTER 7
The Tools of Electronic Marketing
Resources
Chapter Objectives
• To introduce the tools and software
applications of electronic marketing
• To anticipate the problems associated with
maintaining a marketing Web sites.
• To present the advantages and
disadvantages of electronic marketing tools
in implementing online marketing
programs.
The Electronic of E-Commerce
• Electronic marketing has been introduced 10 year
ago, and most significantly, it has been designed to
communicate from a mass marketer to market of
one, as in individual purchasers or prospects:
• The focus of electronic marketing resources includes electronic
tools, which marketers can use for communication,
segmentation, or memory enhancements of customer
preferences:
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Videography
CD-ROM
Interactive kiosks
Pagers
Optical scanners
Smart cards
The Data Warehouse and
Enterprise Reporting
• It must be seen a medium of communication.
• It may be viewed as the next paradigm for
distribution of marketing information.
• It is interactive way of captivating the audience.
• It introduces a massive volumes of incoming and
outgoing data:
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Including e-mail addresses.
Your machine/computer.
Length of time on the site.
Mouse clicks.
Your most recent session with information already from other
visits on the Web.
E-mails
• It is a communication tool for local, national and
international messages.
• Low-to-no cost e-mail providers.
• It helps to reach internal and external groups and
audiences.
• External communications links to customers,
business partners and prospects:
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The list can be private.
Messages are posted to the site without supervision.
It may be anonymous.
It is a quick and efficient response.
Survey questions and data capture.
E-Mails (cont.)
• Research findings:
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They may be accessed from home-25%.
One e-mail account-42%
More than one e-mail account-56%
Europe-30% Vs. USA-20%
Use from work only-Europeans
Older audience using from home-56%
Single-74%
The Internet’s Interconnections
• Origin of Internet:
• It began as government defense project in late 1960s.
• The goal was to prevent interruption of telephone and satellite
communication’s links in case of war or nuclear disaster.
• It is later turned over to the NSF for use by the researchers and
universities.
• The Mosaic browser developed at the University
of Illinois, and now represented by the various
versions of Nestcape Navigator and Internet
Explorer.
The New Reality
• The Internet:
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Create demand.
Provide information.
Enables customer transactions.
Focus on learning about market/audience.
Deliver messages/information in a timely and
relevant manner.
• Cater to customer’s self-identified needs.
WWW
• A new marketing and communications resources
that was introduced in 1991.
• It uses monitors, modems, sound cards along with
Web experts.
• Web sites have come alive with addition of motion
and sound as well as color and graphics.
• Information retrieval system on Yahoo, etc.
• The advantages:
• Flexibility how the customers can interact with Web sites.
• Updated as often as the marketer wishes.
• Growing interest for world-wide applications and usage.
Offline Advertising Efforts
• Segmented postcard mailings:
• Splits to identify audience group
• Print ads that lead readers to unique URL.
• Incentives and services that persuade the
audience to supply e-mail addresses or
information.
Driving Traffic to the Web Sites
• A tiered approach:
• Gather names/e-mail addresses.
• Determines which names are most likely to convert to sale.
• Creates site segments that target visitors in different sections of
the sales cycle.
• Creating a richer user experience:
• As you collect information, you can deliver:
» Messages that are relevant to what has already been learned
about each customer.
» Varying levels of communication and interactive
functionality
Success Scenario
• Know Your Customers
• Offer Your Customers Something That No
Other Company Can
• Don not Alienate While You are Driving
Traffic To the Website
Source: Presentations of B2B groups, Inc. at
the Professors’ Workshop of Direct
Marketing Association.
Robot Shopping Agent
• Price comparison may result in large
amount of saving, but it is not worthy for
low price products.
• Automatic shoppers are a great convenience
to the consumer, but it is inconvenience or a
sale-robbing threat to the e-merchant.
• Same merchants refuse to participate with
shopping robots.Exp.CDNow.
The Benefits of Database and
Other Software Marketing Tools
• Small firms use Microsoft Access for
customer records
• Large companies use Oracle Developer
2000 or oracle data Warehouse.
• Data management tools must used to ease
the situation:
• Hire in-house software developer.
• Engage an outside software development company.
Communications Networks
• It addresses to service specialized audience such
as employees, vendors or clients, no longer to
mass audiences.
• Intranet, a private access communication network
designed most frequently for the employees within
an organization:
• Addresses issued to the company’s constituencies.
• Intranet can contain information including work schedules and
company notices.
• Extranet is a private access communication
network that includes selected external suppliers:
• It coordinates projects or participants that are distant in
geography.
Reporting and Planning Systems
• Business requires clear and concise
decision-making and reports.
• Reports must be easy to read and
understand.
• Software systems must be able to access,
analyze, and develop accurate assessment
for making strategic decision.
Optical Scanners
• Incorporated into new and varied services
to save time at the checkout in retail stores
and manufacturing plant.
• It counts unit sold for inventory control and
used for tracking sales promotions, price
checks and various market research
activities.
Web Portal Sites
• Web super site, the portal is the entry point that
offers a broad array of resources and services such
as e-mail from the Web site, forums, a variety of
search engines, news broadcast, personal Web
pages and online shopping malls.
• It is very attractive to online retailers and other
marketing oriented companies
• AOL is still the largest and more successful portal
in history as one-step service to access the best on
the Web.
Web Portal Sites (cont.)
• Marketer might look at advertising exposure
on several portal sites as he would analyze
programming on a television network.
• The well known search engines, Infoseek,
Excite, Lycos, and Yahoo, are offering emails and home pages.
The Limitations of Electronic
Marketing Resources
• With every improved business practice or
convenience there is tradeoff usually cost.
• Software and hardware needs should be
investigated for future growth.
• The low penetration of WWW into American
household.
• Lack of faith in financial transaction over the Web
(legalized e-signature).
• For international marketing, limitations are
language, laws, currency and cultural differences.
• In order to balance the requirements, software and
The Problems With the Web Sites
• Takes too long to download pages.
• Broken links and dead Web pages.
• Content on the Web. Unethical behaviors and
pages.
• What equipment does the user own to access
various Web sites (modem speed, etc.).
• Impact on customer service capabilities (color,
motion and sound clips).