Transcript E-marketing - SIS - Ashesi University College

Electronic Marketing
Ebow Spio
Chartered Marketer
Lecturer, Ashesi University College
Learning Objectives
1. Explain Electronic Marketing and other relevant
concepts
2. Understand how technology impacts on marketing
and influences consumer behaviour
3. Appreciate the market potential and the growing
use of new technology.
4. Understand the role and application of new
technology in the design of marketing programmes
Learning Objectives
5. Learn how firms promote their products and services
and manage relationships with their customers
through the web and new technology
6. Learn how to integrate internet or web based
marketing initiatives with the overall marketing
programme
7. Appreciate Issues in Digital Marketing
Definitions and Fundamentals of
Marketing and E-Commerce
Marketing is the process by which
companies create value for customers and
build strong customer relationships to
capture value from customers in return
Marketing is managing Profitable customer
relationship
Definitions and Fundamentals of
Marketing and E-Commerce
Electronic marketing (e-marketing):
Strategic process of creating, distributing,
promoting, and pricing goods and services
to a target market over the Internet or
through digital tools
Digital Marketing
Digital Marketing may be defined as : the
application of digital technologies that
form channels to market (the internet,
mobile communications, interactive
television and wireless, podcast etc) to
achieve corporate goals through
meeting and exceeding customers
better than the competition “ David
Jobber 2007
Digital Marketing : Technology and
Marketing
Developments in Technology and the evolution of
Marketing are intertwined.
The process is usually follows the pattern below:
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New technology emerges and is initially the preserve of
technologist and early adopters
The technology gains a firmer foothold in the market and starts
to become more popular, putting it on the marketing radar,
Innovative marketers jump in to explore ways they can harness
the power of this emerging technology to connect with their
target audience
The technology migrates to the mainstream and is adopted into
standard marketing practice
Digital Marketing : A Case for Electronic or
Digital Marketing
1. Increasing number of customers rely on digital technology to
research, evaluate and buy product and services they use.
2. Digital channels transcend traditional constraints like
geography and time zones.
3. Digital technology allows you to hone your marketing message
with laser-like precision to target very specific niche segment
within the wider market
4. Digital technology such as the internet delivers an
unprecedented suite of tools, techniques and tactics that
allow marketers to reach out and engage with those same
consumers
5. Continue to broaden the scope available to marketer and so
add to potential complexity of any digital marketing campaign
Digital Marketing : Technology and
Consumer Behaviour
Analysts at Jupiter Research identified 7 key ways in which
increasingly widespread adoption of technology is influencing
consumer behaviour
1. Interconnectivity
2. Leveling the information playing field
3. Relevance filtering is increasing
4. Niche aggregation is growing
5. Micropublishing of personal content is growing
6. Increased involvement in the creation of products and services
customer purchase.
7. On demand, any time, any place, anywhere . It is world of
almost instant gratification.
Market Potential and Growing Use of New
Technology
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People in the world with internet access is 1.3billion
in December 2007
US Online advertising spend stood at US$12.5billion
in 2005 and projected to reach US$36.5billion in
2011.
UK Online advertising in stood at £2.64billion in 2007
and projected to reach £4.45billion in 2011.
Worldwide telecommunication statistics -voice
•At the end of 2008 there were over 3.4
billion mobile subscribers worldwide,
making mobile telephony the most
preferred mode of telecommunications,
well ahead of the number of fixed line
users at 1.9 billion.
•In terms of revenue share as well,
mobile services command the largest
piece of the pie, accounting for a little
over 50%.
•Over the next 4 years, the mobile
telephony services market is expected
to grow at an average rate of 7.5%per
annum to reach US$ 996billion by
2012.
Source: Wireless Federation
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Chartered Marketer
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The 5Ss - Benefits of e-marketing
• Selling goods and services online.
• Additional customer service.
• Saving overhead costs.
• Means of speaking and entering into
one to one dialogue with customers.
• Exciting and sizzling means of visual
impact.
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Marketing Mix and New Technology : Product
Individual
Nike iD (nikeid.nikecom)
YOU DESIGN IT. WE BUILD IT.
Make a statement with your color, materials and fit Finish it of with your personal iD.
Provides the opportunity to customers to design a pair of
trainers by selecting styles, features and colours
Customized
Tesco’s online shopping website captures details of
shoppers’ regular purchase choices and then provides a
customized list of favourites. The main benefit for the
customer is speedier online shopping
Marketing Mix and New Technology : Pricing
1. More transparency in pricing
2. Digital technology reduces search cost
3. Buyers turning to web for pre-purchase information
and facilities the evaluation of the best offer
4. Prices are dynamic changing almost simultaneous
with demand e.g. eBay
5. Priceline.com : Customer can set their own prices
for products
Marketing Mix and New Technology : Place
(Distribution)
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Digital products such as information, news, software,
music, video, flight bookings, hotel reservations and
e-books are delivered almost instantly on demand
through the internet
Virtual Market space created through the internet and
other mobile and wireless technologies
- Distance ceases to be cost influencer
- Business location becomes an irrelevance
- Technology permits continuous real time trading
Marketing Mix and New Technology : Place
(Distribution)
Asos : The online fashion store
http: //www.asos.com
Advantages of using the web as a distribution
channel
• Every hit could gain a potential customer.
• Print and mailing costs are lower.
• Reduction in order processing and handling
costs.
• Enhanced after sales service.
• Distribution of digital products via the web.
• Get closer to the customer through
disintermediation.
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Marketing Mix and New Technology :
Promotion
•Mobile Marketing
• Social Media Marketing
• E-mail
• Web/Online Advertising
• Customer Relationship
Management
Mobile is Global
• More than 4 billion mobile subscribers worldwide out of the
6.6 billion population worldwide.
• Currently, one-third of humankind has Mobile Internet access,
which is twice as many as the number of Internet-connected
PCs
• Mobile advertising spending will increase to $14B in 2011, up
from $1.5 B
• 46% of the mobile audience is 35 or older, 54% male
• 94% of text messages are read
• Average response rate for mobile campaigns reach beyond
15%
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Solomon Adu Atefoe DipM MCIM MBA
Chartered Marketer
Mobile in Ghana
• Mobile phone penetration
– Over 60% (12M subscribers)
– Growth to continue (many countries have 100%+)
• Mobile Phones
– All have SMS
– Personal & Intimate
• Text Messages
– 100% year over year
since 2003
– SMS growing in all
population segments
– Premium short-codes
Solomon
Adu(Feb/05),
Atefoe DipM
MCIM MBA
*1Forrester (Feb/05); *2160 Characters (Feb/05),
*3Jupiter
*4Analysys(May,03)
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Chartered Marketer
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www.upsidewireless.com
Mobile Marketing Forum
October 2007 Press Release
• In a survey of 50 global brand-name companies,
28% of companies surveyed have already
launched live SMS campaigns and 18% live MMS
campaigns
• Number of brands considering implementing
mobile campaigns doubled to 28% since the
previous year
• 71% of brands projecting to spend up to 10% of
the budget on mobile marketing within two
year’s time
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What is Mobile Marketing?
• It’s marketing, but with mobile phones
• For now, it’s text messaging, MMS and WAP
• Specific applications can be tailored to a
brand’s target audience and objectives
• Promotion is the key to success
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Short Message Service (SMS)
• SMS, often called text messaging, is a means of sending short messages
(up to 160 characters) to and from mobile phones
• Use of shortcodes as business revenue stream
• The only wireless data medium that has the ability to work across
networks, countries and handsets
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Multimedia Messaging Service (MMS)
• MMS is a standard that allows sending
messages that include multimedia
objects (images, audio, video, rich text)
• Much richer user experience
(potentially)
• Problems with latency, different content
standards across phones and carriers
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Wireless Application Protocol (WAP)
• WAP is an open international
standard that enables access to the
Internet from a mobile phone or
PDA
• A WAP browser provides all of the
basic services of a computer-based
web browser but simplified to
operate within the restrictions of a
mobile phone
• A WAP Push is a specially encoded
message “pushed” to the mobile
handset which includes a link to a
WAP address
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Why Mobile Marketing?
• Instant: Moment of impulse
– Short bursts of activity while engaged with entertainment content
• 2-way: Dialogue initiated by consumer
• Cross-media effectiveness
– Activates Radio, TV, Print
– Adds measurability
• Viral: Customers can forward messages to friends
• Targets a highly-desired demographic (19-29 year olds) that
are difficult to reach with conventional media
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Three Ways for Marketers
to use the medium
• Text messaging
• Advertising with banner ads on a mobile
browser
• Creating ad-supported applications and
content
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Mobile Marketing
Best Practices

Take advantage of Time and Place
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Instantly reward
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Deliver “on the go” content

Provide highly targeted and relevant information
…. Let’s look at some examples
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Take advantage of time and place
• Integration of lastminute ticket
promotion with Mobile
Coke Fridge
• Fans enter contest by
texting code from the
top of their Coke
• Draw for World Cup
tickets every ninety
minutes
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Instantly reward
• SMS and Win Campaign for
McDonalds Italy
• Unique codes on over 6
million cups
• Prizes ranged from pre-paid
shopping cards to mobile
content
• Response rate of 25%
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Deliver “on the go” content
• Freundin is a German
magazine targeted at
women
• Subscribers download
content options
• Brand extension to
readership base
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Examples - Ghana
• SHS Placement - text index number to
shortcode 1755
• Info service – news, Horoscopes, football live,
inews, lnews,weather, exchange
ratesbible,quoran etc
• Fund raising codes – Charities, political parties
etc
• Bulk messaging
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Do’s
• Focus on what users do:
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40% text message
36% play games
13% use WAP
1 % watch videos
• Think of Mobile as a Channel not a Strategy
– One touchpoint in an integrated campaign
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Do’s
•
Give consumers something they want
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Content
Entertainment
Special Offers
Exclusivity
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Chartered Marketer
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SOCIAL MEDIA TING
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Social Media in Ghana
• Internet penetration
– Increasing internet penetration (1.1M) – increase bandwidth
– Growth to continue (many countries have 100%+)
• Social Networks
– Over 500,000 facebook
– 100,000 linked In
Solomon
Adu(Feb/05),
Atefoe DipM
MCIM MBA
*1Forrester (Feb/05); *2160 Characters (Feb/05),
*3Jupiter
*4Analysys(May,03)
3/28/2017
Chartered Marketer
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www.upsidewireless.com
SOCIAL MEDIA MARKETING
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Chartered Marketer
MOBILE MARKETING
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EMAIL MARKETING
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Why Market via Email?
• Critical mass: reaches 93% of internet users
(Jupiter Research)
• Response rates: 10x greater than direct mail
(DMA)
• Lower costs: 1/10 the cost per communication
(Andersen)
• Relationship builder: 80% of visitors never
return
(eMarketer)
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Viral marketing
• Word of mouth e-mail.
• Achieved by using the forwarding facility (e-mail a
page to a friend).
• Effective form of communication in terms of
believability and trust.
• Can build up e-mailing list.
• Some customers may view this as a form of
unsolicited mail.
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Define Business Objectives
• Audience
– Prospects, customers, advocates, partners
• Goals
– Registrations, Signups, Sales
• Content
– Newsletter, Promotions, Reminders, Invitations
• Metrics
– Click through, Registration, Visits,
Booking/Purchase
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Be REAL!
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Develop a voice and unique personality
Relate to their problem
First few lines are key
The ‘gift of education’
Be honest. Full disclosure - No hidden
advertorials
• Avoid ‘chest pounding’ and promotions
• People trust people, not marketing speak
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Attention to Detail
• Shoddy workmanship in your email campaign
reflects poorly on your business
– Typos & grammatical errors
– Getting the facts wrong
– Formatting problems
– Otherwise illegible (font size too small etc.) or
unintelligible
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Above All, Deliver Value!
• Email should be relevant, timely, and
beneficial
• “Value" can take the form of:
– newsletters, discounts, contests, last minute
availability, event reminders, invitations, prizes,
memberships, bonuses, coupons/discounts,
exclusive sales, free samples, or demos.
• Surveys - give free report or enter them in a
draw
• Go paperless - specs, price lists, statements
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Signature Line
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At the bottom of your discussion post
Should be short - no more than 4 lines
Your name
Your company name
Your email address (include mailto: in front)
Link to your site (include http:// in front)
Your USP (Unique Selling Proposition)
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Components of an Email
• Subject line
– Most important ~35 characters of the email. Focus on it!
• From line
• To line
• Message body
– A promotional message should contain a compelling offer & call-toaction
– An e-mail newsletter should contain a header, a table of contents, a
welcome, and multiple ‘departments’
– Privacy statement, Disclaimer, and Unsubscribe instructions
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Personalize
• Tailor the offer to the individual. Beneficial offers are relevant
offers
• Provide customized content specific to recipient location and
interests
• Greet the recipient by first name. Perhaps even in the Subject
line too.
• To line should specify the recipient’s email address
• Let the recipient control the contact frequency
• Increases the likelihood of being at the right place at the right
time with the right value proposition
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Web /Online Advertising
What is Web Advertising?
Web advertising is the action of promoting
your website using online advertising
tools, techniques and methods proven to
get the results you are looking for.
It is used simultaneously as online
advertising.
Online advertising is basically the action
of actively promoting your new business.
What Type of
Web Advertisements Are There?
• Banners
– (static, animated and interactive)
• Interstitial
– (pop ups and similar pages that
interrupt the user)
• Rich Media
– (Advanced technology, incorporating video, audio, animation and
photographs)
• Sponsorships, events and corporate sites
• Opt-ins
– (forms, newsletters push technologies)
• Viral marketing and email campaigns
• Search Engine Advertising
The web as an advertising
medium (1 of 2)
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The web as an advertising
medium (2 of 2)
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Customer Relationship Management
Customer relationship management
(CRM) is the overall process of
building and maintaining profitable
customer relationships by delivering
superior value and satisfaction
Customer Relationship Management
Customer relationship management (CRM) is a way
of designing structures and systems so that they
are focused on providing customers with what
they want, rather than on what a company wants
them to want
Dale Renner observed that CRM encompasses “
identifying , attracting and retaining the most
valuable customers to sustain profitable growth”
Customer Relationship Management
CRM consists of sophisticated software and analytical
tools that integrate customer information from all
sources, analyze it in depth, and apply the results to
build stronger customer relationships.
CRM is heavily dependent on a technique called data
warehousing, a way of integrating disparate
information about customers from different parts of
the organization and putting it together in a huge IT
“warehouse”
Customer Relationship Management:
The Strategic Imperative
2 things in particular brought home to companies the need
to take better care of their customers
1. Serious mistakes made as results of blinkers imposed by
the old product-silo approach . Focus on product rather
than customer need or requirement. It is expressed in
obsession with market share e.g. IBM was king of the
declining mainframe computer market.
2. Growing awareness that building up profits by
aggregating narrow margins from the sale of individual
products might not be the best way of ensuring the long
term health of the organization
Customer Relationship Management:
Developing a CRM Programme
More firms want to regard their customers as customers
for life and not just as the one-off purchases of the
products
• Identify customers.
• Differentiate customers
– Lifetime value
– Share of customer
• Interact with customers.
– Improve cost efficiencies
– Enhance effectiveness
• Customize goods and services.
Customer Relationship Management:
Customer life cycle
Customer Lifecycle is made up of three core
customer management processes.
Namely
•Customer Acquisition
•Customer retention is the maintenance of
continuous trading relationships with
customers over the long term.
•Customer Development
NB: It is the goal of every firm to keep a high proportion of valuable
customers by reducing customer defections.
Customer Relationship Management:
Customer lifetime Value
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Customer lifetime value is the value of the entire
stream of purchases that the customer would make
over a lifetime of patronage
Share of customer is the portion of the customer’s
purchasing that a company gets in its product
categories
Customer equity is the total combined customer
lifetime values of all of the company’s customers
Customer Relationship Management:
The benefits of customer retention
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Regular customers place frequent, consistent orders
and ,therefore, usually cost less to serve.
Increasing purchases as tenure grows : Long –
established customers tend to buy more due to
increased trust
Premium Pricing : Satisfied customers may
sometimes pay premium price
Retaining customers makes it difficult for competitors
to enter a market or increase their share
Customer Referrals : Satisfied customers often refer
new customers to the supplier at no extra cost
Lower customer management costs over time. The
cost of acquiring and serving new customers can be
substantial. A higher retention rate implies fewer new
customers need to be acquired, and they can be
acquired more cheaply
Customer Relationship Management
CRM has 3 technological underpinnings
1. Database technology, including the
ability to analyze and map data
2. Interactivity through web sites, call
centers and other means of contacting
customers
3. Mass customization technology, or the
ability to customize a good or service to
better meet a customer’s needs.
Database Marketing
Database Marketing is defined as follows:
An interactive approach to marketing that uses
individually addressable marketing media and
channels (such as mail, telephone and the
Salesforce) to :
• Provide information to target audience
• Stimulate demand
• Stay close to customers by recording and
storing an electronic database memory of
customers, prospects and all communication
and transactional data.
Database Marketing : Database
Development
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Determine Objectives
Collect Data
Building a Data Warehouse
Data Mining
Developing Marketing Programmes
Evaluating Marketing Programmes
Database Marketing : Database
Development
Determine Objectives
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Provide Information about a firm’s customers
Create information to explain why customers purchase
the products the way they do
Share information about customers with creatives as
they prepare marketing communications materials
Reveal contact points to be used in direct marketing
programmes.
Yield information about members of the various buying
centres in business to business operations
Track changes in purchasing behaviours and purchasing
criteria used by customers
Database Marketing : Database
Development
Collect Data
Sources: Internal Customer Data, External Data,
Survey Data
Information Required:
Where the customers located?
What have they purchased?
How often have they purchased?
How did they initially make contact?
How do they order or purchase (in person, Web, mail, phone, etc)
What is known about their families, occupations, payment histories, interests,
attitudes, and so forth ?
In B2B situations, who are the influencers, users, deciders, and purchasers?
In B2B, is it a corporate office or a branch office?
Database Marketing : Database Development
Collect Data
Touch points: Every contact between the customer and company.
Each presents an opportunity to collect data, also deliver
value and influence customers
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Customer purchases
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Sales force contacts
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Service and support calls
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Web site visits
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Satisfaction surveys
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Credit and payment interactions
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Research studies
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Database Marketing : Database
Development
Building a Data Warehouse : Simply collecting data does not place
them into useful form.
Data warehouses are comprehensive companywide electronic
databases of finely tuned detailed customer information
Uses
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To understand customers better
To provide higher levels of customer service
To develop deeper customer relationships
To identify high-value customers
Salespeople have access to important customer information while
making sales calls
Salespeople to access the database when customers call to place an
order
Access to customer data to deal with inquiries and complaints
Targeting customers for a direct marketing programme
Database Marketing : Database Development
: The Marketing Data Warehouse
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Customer names and addresses
E-mail addresses
Record of visits to the firm’s Web site
History of every purchase transaction
History of customer interactions
Customer survey results
Preferences and profiles supplied by the customer
Response history from marketing campaigns
Appended data
Database coding through customer analyses
Database Marketing : Database
Development
Data Mining
• Build profiles of customer groups.
• Prepare models for predicting future
behaviors.
NB: Profiles and models assist in designing the
database best suited for each purpose
Database Marketing : Database
Development
Developing Marketing Programmes
• Direct Marketing (mail, e-mail, internet,
catalogs etc)
• Permission Marketing
• Loyalty and Retention Building
programmes such as Frequency
Programmes
Database Marketing : Database
Development
Developing Marketing Programmes : Steps
in Permission Marketing
Obtain permission
Offer a curriculum over time.
Reinforce incentives to continue the
relationship.
Increase level of permission.
Leverage the permission to benefit both
parties.
Database Marketing : Database
Development
Developing Marketing Programmes : Successful
Permission Marketing
• Ensure recipients have granted permission
• Make e-mails relevant
• Customize program
• Track member activity
• Empowerment
• Reciprocity
Database Marketing : Database
Development
Developing Marketing Programmes :
Frequency Programme is an incentive plan designed to
encourage customers to make repeat purchase .
Frequency Programmes Objectives :
• Maintain sales, margins, or profits.
• Increase loyalty of existing customers.
• Induce cross-selling to existing customers.
• Differentiate a parity brand.
• Preempt the entry of a new brand.
• Preempt or match a competitor’s program.
Database Marketing : Database
Development
Developing Marketing Programmes :
Principles in Building Frequency
Programmes
• Design the program to enhance the value
of the product.
• Calculate the full cost of the program.
• Design a program that maximizes the
customer’s motivation.
Developing an Integrated Marketing
Communications Strategy
• Isolating online marketing activities from other marketing
activities may result in conflicting message
– Customers will not have a clear picture of a firm’s
positioning and value proposition
• IMC ties together and reinforces all communications to deliver
a strong brand identity
• Communications in different media should form part of a
single, overall message about the service firm (need
consistency within campaigns about specific service products
targeted at specific segments)
Developing an Integrated Marketing
Communications Strategy
• Define the role of each marketing communication tool
medium.
• Ensure all media adhere to the correct application of
Corporate Identity (logos, symbols, colours etc.)
• Advertise and create awareness for website using other
media e.g. vehicles
• Single department preferably marketing to co-ordinate all
marketing communications efforts on the brand
EasyJet Paints Its Website Address on
Each of Its More than 200 Aircraft
Source: www.easyjet.com/EN/About/photogallery.html. © easyJet airline company limited
Ethical Issues in Electronic Marketing
• The digital divide
• Social Exclusion e.g. Sales of FIFA
World Club Ticket
• Intrusion on privacy
• Marketing to Children