e-Marketing

Muhammad Shariq

e-Marketing

Definition

“E-marketing is the use of information technology in the processes of creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders”

Strauss, El-Ansary and Frost (2006: 3)

e-Marketing

e-marketing is used as well as traditional channels to develop positive, long-term customer relationships (whether online or offline)

and create a competitive advantage for the firm by allowing it to charge a higher price for products or services than its competitors can charge

e-Marketing

E-marketing

increases the effectiveness and efficiency of traditional marketing functions

the technology transforms marketing strategies

opens new global markets and international partnerships

it results in new business models that add customer value and increases profitability

e-Marketing

But e-marketing is more than just using the internet

converging technologies enhance customer relationship management, database management and supply chain management

but in time the “e” of e-marketing will be dropped – electronic business will be all pervasive

e-Marketing

The Internet

provides content communicates sells offers a network function

e-Marketing

Internet Marketing

1. Display advertising2. E-mail marketing3. E-mail marketing software4. Interactive advertising5. Social media optimization6. Web analytics7. Cost per impression

e-Marketing

Affiliate marketing

Cost per action Contextual advertising Revenue sharing

e-Marketing

Search engine marketing

Search engine optimization Pay per click advertising Paid inclusion Search analytics

(Mobile advertising)

e-Marketing

marketers use websites to communicate with customers

the goal is to create a strong relationship with the customer

the Internet is used as a direct channel to sell services and products

some websites provide purely digital information

led to new electronic services facilitated by networked computers and mobile devices

e-Marketing

the transition to the information and knowledge age is profound (still in its early stages)

rapid advances in technology with convergence on digital electronic technology

escalating global competition rising consumer expectations for

quality, speed of response and customisation (individualism)

e-Marketing

the current web is crude in capabilities and functionality

it is a rather chaotic test bed for companies consumers are learning new modes of interaction

and consumption eases time and place constraints on consumers no longer will goods and services be offered

primarily at the seller’s convenience (power shifts from sellers to buyers)

anytime and anywhere purchasing and consumption will be common

talk of a web 2.0 (private subscriber networks with downloads of software, music and other content)

e-Marketing

communication bandwidths will rapidly rise

terminal equipment will be more powerful, smarter, easier to use, affordable, portable, cheaper, smaller

the cost of digital storage is falling rapidly

e-Marketing

once hardware and an telecommunications infrastructure is in place, an enormous range of services can be exchanged at nominal incremental cost

location-independent shopping and banking computer-mediated education and training on-line professional consultations informational, entertainment and leisure

services

e-Marketing

as consumer behaviour changes, the marketing function needs to change dramatically

argued that marketing will be at the centre of change

marketing will become increasingly decentralised and fully integrated into business operations

opportunities to lose as well as gain

e-Marketing

successful marketing in this new environment involves: “monocasting”, “pointcasting” and “podcasting” of

communications mass customisation of all marketing mix elements high degree of customer involvement and control a more efficient utilisation of marketing resources attempts to reduce customer alienation from mis-

directed marketing stimuli increased pressure to deliver greater value intense jostling for loyalties of “desirable” customers

e-Marketing

Evolving technology and consumer behaviour

production technology (CAD-CAM, just-in-time production, flexible manufacturing systems)

distribution technology (computer-assisted logistics, scanner, product identification and tracking technologies, electronic data interchange, point of sale terminals linked to vendors, satellite-based locational systems, automated retail and warehouse ordering)

personal use technologies (huge gains in price-performance) with the mobile phone at the centre of rapid changes

e-Marketing

As the power and pervasiveness of technologies grow:

consumers are in a unique, unaccustomed position, i.e. not passive

they have greater control of information flows between buyers and sellers

e-Marketing

future consumers will be dramatically different from past and even present consumers

they will be more demanding, more time-driven, more information intensive, highly individualistic

targeted interactive digital media allowing advertisers to mass customise messages allowing user interaction and input

e-Marketing

consumers will in most cases have more information about product providers than providers will have about consumers

consumers will dictate the timing and mode of communications

they will determine the time and place of resulting transactions

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Lifestyle and Demographic Changes

rising median age in developed countries households progressively more time poor but money rich

(consumers are redesigning time-consuming tasks, and embracing time-saving and time-shifting technologies)

consumers are demanding hassle-free, “get it right first time” service on demand

increased stress (blurring of traditional family roles, increase in autonomy)

e-Marketing

Lifestyle and Demographic Changes

greater concern for privacy (previous social norms of a homogeneous society giving way to pluralistic and diverse values)

legal rights of individuals will be emphasised emphasis on safety and security (ageing population,

greater numbers living alone, feelings of vulnerability) personal entrepreneurship (opportunities provided by new

technologies and rise of niche markets)

e-Marketing

Gravitational commerce

Digital commerce

Time-bound Time-free

Location-free

Location-bound

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move from time-bound and location-bound marketing

to time-free and location-free marketing if a consumer is unable to transact at times and

locations convenient for them the transaction will either not occur or will occur with a different supplier (e.g. banking)

advertising and other forms of information will be received “on demand”

e-Marketing

Automation ofconsumption

Power shift toconsumers

Blurring of consumerand businessmarkets

Greater valueconsciousness Consumers as

co-producers

Shopping on demand

Personalisationandreaggregation

Disintermediationandreintermediation

consumerbehaviourtrends

e-Marketing

Intermediaries

current marketing practice depends heavily on multiple intermediaries in the supply chain

they add time and place utilities to the product’s functional quality

they provide broader and more convenient access to products for a wide range of customers

they serve as informational conduits building an adequate distribution channel is often a

hurdle in entering a market

e-Marketing

Intermediaries

electronics mean a high level of accessibility almost immediately

establishes a two-way information flow numerous administration tasks can be automated huge numbers of customers can be served efficiently

and effectively inventories can be reduced leads to growth in support services (e.g. small package

shipping, orders consolidation)

e-Marketing

Personalisation

the mass market is splintering into ever smaller segments (“mass customisation”)

but customers are not always looking for customised products; may be content with well-designed standardised products

customers may pool purchases (buying consortia) to gain better terms and prices

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Consumers as co-producers

consumers will take on increasingly active roles (e.g. designing and customising products purchased)

while consumers take more control over some commercial relationships, they will relinquish control in other areas (insourcing to outsourcing)

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Greater value consciousness

consumers will expect to pay less for most products (or pay more where perceived additional value)

time is a more valuable currency than money for some consumers (trade-offs)

convenience and simplicity ability to easily locate the best price (via

“price scraping” websites) consumers will not keep large stocks but

want the advantages of large-scale buying

e-Marketing

Blurring between consumer and business markets

lines between home and workplace are rapidly blurring

movement of home-based services to business and vice versa is observed with dual-purpose applications (e.g. DVD shopping, travel planning, legal advice, on-line databases)

e-Marketing

Power shift from marketers to consumers

savvy consumers will make great use of information tools; knowledgeable and demanding drivers of marketing activity

marketers will have to show greater respect for consumers (who are increasingly immune to marketing hype)

transactions will be in the context of a complex relationship revolving around lifestyle issues

e-Marketing

Power shift from marketers to consumers

marketing management thus becomes demand management (and customer equity management)

the task of influencing the timing, the level and composition of demand in a way that helps the organisation achieve its objectives

customer knowledge becomes the capstone of effective marketing (a highly valued corporate resource)

real time interactive relationship marketing becomes the norm

e-Marketing

The concept of the personal marketplace

a repository where participating companies prepare and market customised offerings directly to a consumer

these are categorised by product or service as specified by the consumer

by selecting a particular category, the consumer alerts companies that they are a potential customer, and offers flow in

the customer voluntarily provides as much customising information as needed

participating companies agree not to sell the data they collect outside the personal marketplace, and not to use it to market in any other channel

e-Marketing

How marketing should respond to these changes

must simultaneously get smaller and bigger (role will grow but numbers of marketers may decrease)

need to be more technology savvy (including just in time capabilities, on-line transaction processing, voice recognition, efficient downloading services and logistics)

learn how to retain customer loyalty (primary focus shifts from customer acquisition to relationship management)

e-Marketing

How marketing should respond to these changes

develop cross-functional teams organised around customer needs

practice interactive one-to-one marketing (far beyond current database marketing)

interactions may take several forms:– person to person (marketer interacts with customer)– person to system (marketer interacts with customer’s “agent”)– system to person (marketer’s “agent” interacts with customer)– system to system (marketer’s agent interacts with customer’s

agent)

e-Marketing

Local Market

Case Study

Field Force Appraisal Field Force Appraisal System System

Platinum Pharmaceuticals (Pvt) Ltd.

AgendaOverview

– Text

• Training– Text

The Appraisal System

The appraisal system is a mechanism

to integrate organizational expectations

with employee performance.

www.platinumpharma.net/ffasWeb Site Address

Click on Appraisal SystemClick on Appraisal System

Login Screen

requires User id and password

Menu Screen

Click on Conduct Appraisal

Display Name of Field Force with Team and Designation

Appraisal ScreenPress Add Button if First Time Appraisal then Press Save button to Save

Competencies and its Rank Description. Click on Option button for getting score

Save Screen

Confirm Screen Press Confirm Button when Complete Appraisal then Press Save button to Freeze

Record

Instruction of System Saving Record

– Press Add button to enable the screen

– After Add button press Save button to Save Record

Edit Record– If any changing in Appraisal after saving, Press Edit

button then press Save button

– It is not Editable if the Appraisal was Confirmed

Confirm Record– After the Completion of Appraisal, press confirm

button then press Save button to Confirm Record

Getting Report– Press Print button for Printing

Process of Appraisal System

List of Field force by Team

wise

Authorized User authorization

System

Database

Shows Competenci

esS

avin

g

Record

Conduct Appraisa

l

THANK YOU