Transcript Presentation for Chapter 7

Slide 8.1
Chapter 8
E-marketing
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.2
Econsultancy Interview
• Read the Econsultancy Interview on pp. 415416 of Chapter 8 and visit the Guess.com to
answer the following questions:
– Do you see the branding or the store when you
first visit the Guess.com?
– How do they choose online partners?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.3
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.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.4
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?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.5
E-marketing
• What is marketing?
Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitability.
http://www.cim.co.uk/resources/understandingmarket/definitionmkting.aspx
http://en.wikipedia.org/wiki/Marketing
• What is e-marketing?
– The application of marketing principles and
techniques to achieve marketing goals via ecommunication technology.
http://www.quirk.biz/resources/88/What-is-eMarketing-and-how-is-it-better-than-traditional-marketing
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.6
E-Marketing
Which e-marketing tools can assist and how?
•
Identifying customer needs
–
•
Anticipating demand for digital services
–
• Satisfying customer needs
–
• Profitably
–
–
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.7
Figure 8.1
The operational and management processes of e-marketing
Source: Econsultancy (2008)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.8
Figure 8.1
The operational and management processes of e-marketing (Continued)
Source: Econsultancy (2008)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.9
Figure 8.2
The e-marketing plan in the context of other plans
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.10
E-Marketing Plan
Figure 8.3
SOSTAC™ – a generic framework for e-marketing planning
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.11
SOSTAC
• The last slide mentioned 5S, which is translated from
Japanese http://en.wikipedia.org/wiki/5S_%28methodology%29
– Sorting
– Straighten
– Sweeping (Systematic Cleaning)
– Standardizing
– Sustaining
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.12
Figure 8.4
Usage of detailed e-marketing plans in e-commerce organizations
Source: Econsultancy (2008)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.13
Situation Analysis
Figure 8.5
Inputs to the e-marketing plan from situation analysis
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.14
Situation Analysis—SWOT Analysis
Figure 8.6
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.15
Situation Analysis--Example SWOT Analysis
Figure 8.6
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.16
Situation Analysis
Demand Analysis
• Web search report such as Google Adwords, ref. p. 423.
table 8.1
• Consumer research report, ref. p. 423, Fig. 8.7
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.17
Situation Analysis-Customer demand analysis for the car market
Figure 8.7
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.18
Situation Analysis
Competitor Analysis
• The suggested aspects to be analyzed are list on p. 426
in the text.
• A common approach is benchmark testing of various
aspects between the company and its competitors.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.19
Situation Analysis
Benchmarking
• Financial performance – current profitability of e-channel
activities
• 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 basis? Beyond the competitor’s site, how do they
make use of intermediary sites to promote and deliver
their services?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.20
Situation Analysis
Benchmarking
• 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-product, price, package, promote, place,
positioning, people
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.21
Situation Analysis
Benchmarking
Figure 8.8
Benchmark comparison of corporate websites
Source: Bowen Craggs & Co (www.bowencraggs.com)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.22
Situation Analysis
Benchmarking
Intermediary Analysis
– Who are the intermediaries of the business?
– Why this analysis is important?
Internal Marketing Audit
– Business effectiveness
– Marketing effectiveness
– Internet effectiveness
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.23
Objective Setting
• Effective strategies are based on and
support clearly defined business
objectives.
• SMART should be used to guide the
objective setting
• Examples—Ref. p. 429, Table 8.3, p. 430,
table 8.4
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.24
The relationship of objectives, strategies and performance indicators for a
B2B company (in order of priority)
Table 8.3
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.25
The relationship of objectives, strategies and performance indicators for a
B2B company (in order of priority) (Continued)
Table 8.3
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.26
Example Internet marketing objectives within the balanced scorecard
framework for a transactional e-commerce site
Table 8.4
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.27
Objective Setting
Figure 8.9 Future online promotion contribution and online revenue for a B2B company
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.28
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%
to 20%
• Established media company – increase online
revenue, target of 20% online contribution to
revenue by offering new online services and
media sales
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.29
Examples of SMART e-marketing objectives
• Established business-to-business engineering
company – increase overall revenue by 5%,
through targeting sales in new international
markets
• Reduce costs of routine customer service by
10% to enable focus on delivery of specialized
customer service
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.30
Case Study
• Read Case Study 8.1 EasyJet on pp. 431-433 and
visit the EasyJet.com website
• Answer the questions 1-3 on p. 433
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.31
Strategy Setting
• It defines how the e-marketing objectives will be
achieved.
• Example—ref. pp. 434-435, table 8.5
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.32
Strategy Setting
Summary of typical focus for main types of e-commerce-related strategic
initiatives
Table 8.5
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.33
Strategy Setting
Table 8.5
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.34
Strategy Setting
Summary of typical focus for main types of e-commerce-related strategic
initiatives (Continued)
Table 8.5
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.35
Strategy Setting
De Kare Silvers ES test
The author suggests that the likelihood of a
customer buying online is affected by
1. Product characteristics. Does the product need to be
physically tried, or touched before it is bought?
2. Familiarity and confidence. Does the consumer recognizes
and trusts the product and brand?
3. Consumer attributes. These shape the buyer’s 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?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.36
Strategy Setting
Table 8.6
Product scores in de Kare-Silver (2000), electronic shopping potential test
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.37
Strategy Setting
Marketing and Product Positioning
– the aggregate perception the market has of a
particular company, product or service in
relation to their perceptions of the competitors.
http://en.wikipedia.org/wiki/Positioning_%28marketing%29
– Ch 5, Fig. 5.19 on p.301 presents options to
gain certain market positions
– Digital products may be offered on the web to
enhance the value of existing products
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.38
Strategy Setting --target marketing strategy development
Figure 8.11
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.39
Strategy Setting
Target Market Strategies
– Evaluation and selection of appropriate
segments and the development of appropriate
offers
– It involves 4 stages as displayed in Fig. 8.11
on p. 437
– Various options for a digital marketing
campaign are summarized in table 8.7 on p.
438 displayed on the next slide
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.40
Table 8.7
A range of targeting and segmentation approaches for a digital campaign
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.41
Strategy Setting
Target Market Strategies—Online Campaign
• Should we target the campaign based on one
variable or multiple variables?
•
Depending on what variables are used, the
response rate changes as displayed on the
next slide.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.42
The extent to which different types of segmentation variables tend to be
predictive of response
Figure 8.12
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.43
Strategy Setting
5 questions should be asked when setting the
strategy
1.
2.
3.
4.
5.
Who are our customers?
How are their needs changing?
Which do we target?
How can we add value?
How do we become first choice?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.44
Strategy Setting
Online value proposition
• A clear differentiation of the proposition from
competitors based on product features or
service quality http://en.wikipedia.org/wiki/Perceptual_mapping
• 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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.45
Strategy Setting
Online value proposition
• 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?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.46
Strategy Setting
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
– 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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.47
Figure 8.13
Firebox (www.firebox.com) Use Web 2.0 for interaction
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.48
New Media Marketing
1. Interactivity
2. Intelligence
3. Individualization
4. Integration
5. Industry restructuring
6. Independent of location
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Slide 8.49
Summary of communication models for (a) traditional media,
(b) new media
Figure 8.14
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.50
Summary of degree of individualization for (a) traditional media
(same message), (b) new media (unique messages and more information
exchange between customers)
Figure 8.15
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.51
Figure 8.16
Channels requiring integration as part of integrated e-marketing strategy
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.52
Figure 8.17
Channel integration required for e-marketing and mixed-mode buying
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.53
Tactics
1. Market tactics are traditional based on the elements
of market mix (4 Ps and 7Ps)
2. Alternatives approaches include customer-driven
tactics ad customer-relationship management
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.54
Figure 8.18
The elements of the marketing mix
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Slide 8.55
Tactics—Issues with 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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.56
Zipf’s law, showing decrease in popularity of items within an ordered
sequence—Read Box 8.2 on p. 450
Figure 8.19
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Slide 8.57
Tactics— Online mix options
• Product
–
–
–
–
–
–
Extend range
Narrow range—only some products online
Online-only products (banks)
Develop new brand (Egg, CanadianTire bank)
Migrate existing brand (HSBC)
Partner with online brand (Waterstones and
Amazon)
– More options—ref. p. 452
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.58
Tipping Point
•
•
•
•
Read the Box 8.3 on pp. 452-453
What is the tipping point as discussed?
What is stickiness factor as discussed?
How can the stickiness factor concept be
applied for ecommerce website?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.59
Case Study 8.2
• Read the case study on pp. 453-456
• Answer the question on p. 456
• What do you think about the effectiveness of
the Dell model?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.60
Tactics— Online mix options
• Price
– Differential pricing:
• Reduce online prices due to price transparency
and competition (easyJet)
• Maintain price to avoid cutting into offline sales
(Dixon)
– New pricing options (software, music):
•
•
•
•
Rental
Pay per use
Reverse auctions (B2B)
Dynamic pricing (Concert tickets)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.61
Figure 8.20
Price elasticity of demand for a relatively elastic product
Price Elasticity = %change in quantity demanded / % change in price
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.62
Tactics— Online mix options
• Place = avoiding channel conflicts
– How to avoid channel conflct?
– Disintermediation – sell direct
– Reintermediation – partner with new
intermediaries
– Countermediation:
• Form new intermediaries
• Partner with existing intermediaries
• Distance from intermediaries
(Abbey National)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.63
Tactics— Online mix options
• Promotion
– Promotion elements—Ref. p.462, Table 8.8
– 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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.64
Options for the online vs offline communications mix (a) online > offline,
(b) similar online and offline, (c) offline > online
Figure 8.22
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.65
Tactics— Online mix options
• Typically important for service delivery
http://marketingteacher.com/Lessons/lesson_marketing_mix.htm
– People—interaction with customers
• Automate – use web self-service,
offer customer choice
– Process
• Change process for service – contact strategies
– Physical evidence
• Site design – differentiate or support brand
• Fulfillment quality
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.66
Branding
Leslie de Chernatony and Malcolm McDonald
described ‘brand’ 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.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.67
Branding
Aaker – brand equity
•
•
•
•
Brand awareness
Perceived quality
Brand associations
Brand loyalty
How can these be enhanced online for the B2C Company?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.68
Table 8.9
Traditional measures of brand equity and online measures of brand equity
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.69
Branding-Identity
• 8 Principles for choosing a brand name
–
–
–
–
–
–
–
–
Short
Simple
Suggestive of the category
Unique
Illiterative
Speakable
Shocking
Personalized
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.70
Changes to brand perception and behaviour as a result of using the
Internet for research
Figure 8.23
Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.71
The influence of brand knowledge on purchase. Matrix for question ‘I will
buy a product if …’
Figure 8.24
Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.72
Actions and Control
• What activities should be conducted
• Questions to be asked
• Typical e-marketing plan framework—ref. pp.
469-470
• Control can be achieved using both
traditional marketing research and web
analytics
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.73
Case Study
• Read Case Study 8.3 on pp.471-475 and visit
the napster.com
• Answer the question on p.475
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.74
Figure 8.25
Napster (www.napster.co.uk)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 8.75
NEXT CLASS
• Read the Econsultancy interview on pp 484485 and visit http://www.warnerleisurehotels.co.uk/
• Answer these questions
1. What did Warner Breaks (WB) found about the
online marketing?
2. What did they do to attract and retain
customers?
3. What special about the older generation
regarding on line transactions?
4. Do you feel that their website is well-designed
for the targeted audience?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009