MKT 403: Electronic Marketing

Chapter 1E-Marketing: Past, Present & Future

Learning Objectives of Chapter 1 Explain how advances in internet and information

technology offer benefits and challenges to consumers, businesses, marketers, and society.

Distinguish between e-business and e-marketing. Explain how increasing buyer control is changing the

marketing landscape. Understand the distinction between information or

entertainment as data. Identify several trends that may shape the future of e-

marketing, including the semantic Web.

2MKT 403

Case Study: Obama and the US Presidential Elections

3MKT 403

Learning from the Case

Marketing principles never change and markets always want good products.

Markets always demand good customer communication. Companies must meet the demands of customers.

Customers trust well respected brands and talk to others about them.

These classic marketing concepts are more challenging when applied to social media, mobile devices and internet technologies.

4MKT 403

Strategies & Tactics

Electronic Commerce (E-Commerce): Conducting business over electronic systems such as

the Internet and other computer networks. Use of technologies such as mobile

commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.

Over 50% of connected consumers use the internet to buy products, bank, travel reservations or research products before buying.

5MKT 403

6

Advertising Online: Online advertising is a bigger part of advertiser media

budgets than every other medium, except television and newspapers.

Search Engine Marketing: Paid search accounts for approximately 47% of online

advertising budgets (purchase keywords that present ads on search engine results page).

Google has maximum (67%) share for user search market.

MKT 403

Internet Communication: Instant messaging, email marketing, VoIP (Voice over

Internet Telephony). E.g.: Skype

User-Generated Content: Online content like commercials, videos, photos,

blogs. E.g.: facebook, reviews

Online Communities: Gather users with like minded interests for

conversation and networking. E.g.: LinkedIn

7MKT 403

Mobile Internet Access: A report (2012) by the United Nations Conference on Trade

and Development (UNCTAD) reveals that there are 180 mobile phones for every 100 residents in Saudi.  

Opportunity for smartphone applications and advertising. Where consumers go, marketers follow.

Local/ Location Based Marketing: Smartphone users can find a local business with a global

positioning system. E.g.: Google local search or expatriates.com

8MKT 403

Online Aggregators: Sites which bring together users and information. Bayt.com (job), wikipedia (information)

Inbound Marketing: Shift from interrupt/push marketing to inbound/pull

marketing. Strategies to increase presence on internet.

Metrics/ Web Analytics: Web analytics and many other techniques allow marketers

to keep track of every mouse click and use it to execute their strategies and tactics.

Google Analytics

9MKT 403

Types of Access to Internet

Public Internet: Global network that is accessible by anyone,

anywhere, anytime. Intranet:

Network that runs internally in a corporation. Like a mini internet but with password protection for

internal use. Extranet:

Two or more networks that are joined for sharing information.

If a supplier and company link their intranet, it will be an extranet. Access is only partial.

10MKT 403

E-Business, E-Commerce, E-Marketing E-Business:

Includes all Internet based interactions with business partners, suppliers and customers.

These can be: selling direct to consumers, manufacturers and suppliers; monitoring and exchanging information; auctioning surplus inventory; and collaborative product design.

E-Commerce: Subset of e-business focused on transactions. Includes buying, transferring, or exchanging products,

services, and/or information via computer networks, including the internet.

The term e-commerce is often used interchangeably with e-business.

11MKT 403

E-Marketing: ‘Marketing’ is a process by which companies

create value for customers and build strong customer relationships.

‘E-marketing’ is the use of information technology for the marketing activities, and the process for creating, communicating, delivering offerings that have value for customers.

12MKT 403

Effect of e-marketing on traditional marketing E-marketing affects traditional

marketing in two ways:1. Increases the efficiency and

effectiveness of traditional marketing functions.

2. Transforms marketing strategies which result in new business models (Facebook, Twitter etc.).

13MKT 403

E-Marketing (Bigger than the Web) The web is what most people think

about when they think of the Internet.

The web is the portion of the internet that supports a graphical user interface for hypertext navigation with a browser.

Electronic marketing reaches far beyond the web.

14MKT 403

Many e-marketing technologies exist without the web, which include software/ hardware used in customer relationship management, supply chain management.

Non-web internet communications such as e-mail (ms-outlook), internet telephony (tango) and text messaging (whatsapp) are effective for marketing.

Internet delivers text, video, audio, graphics to many information receiving appliances than simply personal computers.

Offline electronic data collection devices like bar code readers and databases, receive and send data about customers and products over intranet.

15MKT 403

E-Marketing (Bigger than Technology) The Internet provides individual users with

convenient and continuous access to information, entertainment, and communication.

Communities form around shared photos (Instagram), videos (YouTube), and individual or company profiles (Facebook).

The digital environment enhances processes and activities for businesses.

Societies and economies are enhanced through more efficient markets, more jobs, and information access.

17MKT 403

Generations of Web

20MKT 403

Web 1.0 (1990-2000)

Internet was started in 1969 as the ARPANET when it was commissioned by US Department of Defense’s Advanced Research Project Agency (ARPA) as a network for academic and military use.

In 1979, the first online community (USENET) began.

In 1993, the first web pages and internet browsers appeared.

This stage is termed as Web 1.0

21MKT 403

The information was published on the web in a static manner.

It was like a word document on the web with pictures and formatting. Hyper-linking the web-pages and bookmarking were two of the most important aspect of Web1.0 

The first generation of e-business was like a gold rush. But between 2000 and 2002, a lot of Internet firms were shut down.

22MKT 403

Web 2.0 (2000-2010)

This term was coined by Tim O’Reilly  These technologies connect people with

each other through social media, which have created opportunities and challenges for marketers.

There is a very high importance given on usability and sharing.

23MKT 403

Opportunities/ challenges for marketers:1. Power shift from sellers to buyers2. Customer engagement3. Content Marketing4. Inbound marketing

24MKT 403

Power shift from sellers to buyers: Individual and business buyers are more

demanding than ever because they are just one click away from a big choice of similar products from competitors.

Internet’s social media provides a communication platform where product comments can be spread and can enhance or damage a brand image.

25MKT 403

Customer engagement:Online engagement is analogous to offline

experience marketing (Disney theme parks).

Online marketers engage users by asking them to participate in their content or media (upload photos, post comments, ‘Like’ a company/ product page on Facebook).

E.g.: Doritos https://www.doritos.com/

26MKT 403

Content Marketing: In addition to crowdsourcing, marketers use

their own content to engage users online. Content Marketing involves creating and

publishing content on websites and in social media.

All online content is a part of content marketing and includes websites, social network pages, blog posts, videos, e-books, white papers.

27MKT 403

Inbound marketing: Inbound marketing includes getting found online

through blogs, e-books, white papers, social networks (facebook, twitter etc.); rather than interrupting customers.

54% consumers said they would avoid products and services which push advertisements on them through outbound marketing (Yankelovich and Partners survey).

Outbound marketing includes traditional media advertisements, telephone calls, trade shows, emails.

28MKT 403

29MKT 403

Other Opportunities and Challenges Internet adoption

matures. Online retail sales equal

4%+ of all sales. Search engines are now

reputation engines. Image recognition takes

root. Improved online and

offline strategy integration.

Intellectual capital rules. Decline of print media. Online fundraising

increases. Location-based services. The long tail. Everything is “FSTR.”

31MKT 403

Web 3.0 (2010-2020)

Lines between traditional and new media are blurring.

Appliances are converging and becoming “smart.”

Wireless networking is increasing. Semantic web will provide worldwide

access to data on demand without effort.

32MKT 403

How do experts characterize Web 3.0? Semantic web will be achieved and the

mobile device will be the primary Internet connection tool by 2020 (Pew study).

Interactive media will cannibalize traditional media (Forrester Research).

Web 3.0 will ultimately be seen as applications which are pieced together…run on any device…are very fast…are distributed virtually (Eric Schmidt of Google).

34MKT 403

Marketing implications of internet technologies1. Lower costs: Reach the customers at a lower cost than

with traditional marketing methods.2. Measurable results: Obtain detailed data about customer

responses to marketing campaigns.3. Global reach: Access new markets across the globe.4. Personalization: Connecting database to website allows for

individually targeted offers. 5. One-to-one marketing: Instant access to individual

customers on computers and mobile phones.6. Better conversion rates: Online customers are few clicks

from a purchase, whereas when offline they must visit a store.

7. 24 hour marketing: 24/7 access to a firm’s products and services, even when office is closed.

35MKT 403

Summary and Discussions

36MKT 403