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Chapter 12: Electronic marketing

Presentation prepared by Lucy Miller Macquarie University

2009 John Wiley and Sons Australia

Electronic marketing
Learning Objectives: define electronic marketing explain the unique characteristics of emarketing that differentiate it from traditional marketing explain specific e-marketing methods explain ethical and legal issues relating to e-marketing discuss the role of e-marketing in an overall marketing strategy
2009 John Wiley and Sons Australia

Electronic marketing
The internet and mobile phones have brought about a technological shift. 67% of Australian households are online. 86.5% of Australian businesses have internet access. of Australian businesses have received orders online, whilst 43% place orders online. For more information about the internet in Australia visit the Department of Broadband, Communications and the Digital Economy website.
2009 John Wiley and Sons Australia

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Electronic marketing
Electronic marketing The activities involved in planning and implementing marketing in the electronic environment. Examples: Sale of products via e-commerce web site Texting potential customers about offer/sale Email asking customer to participate in a survey for change to win a prize Discount vouchers on take-away web sites
2009 John Wiley and Sons Australia

Electronic marketing
For consumers: Advantages Convenience Disadvantages Inability to physically examine the product before purchase Risk of credit card fraud and lack of personal service.

2009 John Wiley and Sons Australia

Electronic marketing
For marketing organisations: Advantages Access to the entire global market Reduced costs Disadvantages Increased competition Some target markets have low rates of internet access Consumers have concerns about security of making payments
2009 John Wiley and Sons Australia

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Characteristics of e-marketing
The key characteristics of e-marketing are: profiling interactivity and community control accessibility and comparability digitalisation

2009 John Wiley and Sons Australia

Characteristics of e-marketing
Profiling Getting to know about potential customers before they make a purchase and finding out more about existing customers. Organisations can gather information about customers through: Requiring registration to access a web site The use of cookies on web sites Competitions requiring personal information Information is usually stored in a database or data warehouse
2009 John Wiley and Sons Australia

Characteristics of e-marketing
Interaction The ongoing exchange of information between marketer and customer (or potential customer). Examples of interactivity include: Virtual customer service Real customer service via online chat Email newsletters and RSS feeds Survey participation Online communities
2009 John Wiley and Sons Australia

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Characteristics of e-marketing
Control The ability of the customer to determine how they interact with the marketing message and to influence the presentation and content of the marketing message Push advertising Advertising sent from the marketer to the customer. Pull advertising Advertising that the customer actively seeks out.
2009 John Wiley and Sons Australia

Characteristics of e-marketing
Accessibility and comparability Customers can easily research different product options, and read independent product reviews, online, and are more informed than ever before. Online environments offers the choice of completing transaction online or in-store, which in turn gives the consumer the choice of many more retailers.

2009 John Wiley and Sons Australia

Characteristics of e-marketing
Digitalisation The ability to deliver a product as information or to present information about a product digitally Some products can be completely digitalised (music). For those that cant, the service can be digitalised, e.g. grocery stores offering online shopping and delivery. Some companies now also offer mobile phone applications, e.g. Coles and Dominos Pizza.
2009 John Wiley and Sons Australia

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Electronic marketing methods

Banner advertisements Appear on web sites much like newspaper advertisements. Pop-up advertisements Advertisements that open in a new web browser window. Brochure sites web sites that are essentially an online advertisement for the organisation.
2009 John Wiley and Sons Australia

Electronic marketing methods

Web 2.0 Term describing the various technologies and experiences involving online communities where members contribute to and build the community and the content, and where users can substantially control their own online experience through customisation and interactivity. e.g. Wikipedia, MySpace, Facebook Sometimes referred to as the social web
2009 John Wiley and Sons Australia

Electronic marketing methods

Viral marketing The use of social networks to spread a marketing message. Online, relies on forwarding of emails, links to web sites, or word of mouth in discussion groups and communities. Viral marketing controlled by the online community. Businesses can pay a heavy price for trying to manipulate online word-of-mouth, or use social networking sites for commercial purposes.
2009 John Wiley and Sons Australia

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Electronic marketing methods

Portal A web site that is designed to act as a gateway to other related sites. e.g. New Zealand Government. Search engine optimisation (SEO) Tailoring features of a web site to try to achieve the best possible ranking in search results returned by a search engine. Customers will be most likely to click through to first sites listed in search results.
2009 John Wiley and Sons Australia

Electronic marketing methods

Search engine marketing Paid advertising that appears similarly to a search result on a search engine page. Sponsored links are appealing to businesses because they are only returned for relevant searches. Email/SMS marketing Legitimate email and SMS marketing can effectively build customer relationships. Spam is unwelcome and illegal.
2009 John Wiley and Sons Australia

Electronic marketing methods

E-commerce Marketing exchange via the internet, mobile phone or other telecommunications technology. Particularly attractive to small, niche businesses. of Australian businesses have received orders online.

2009 John Wiley and Sons Australia

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Ethical and legal issues

e-Marketing raises many ethical and legal issues, questions and responsibilities specific to the online nature: Pervasive, always-on Personalised and interactive International, cross-border Failure of laws to keep up with technology

2009 John Wiley and Sons Australia

Ethical and legal issues

e-Marketing raises many ethical and legal issues, questions and responsibilities. Privacy Misleading or deceptive conduct Spam Intellectual property rights Consumer protection Technology burnout

2009 John Wiley and Sons Australia

Ethical and legal issues

2009 John Wiley and Sons Australia

24/07/2010

Ethical and legal issues

Intellectual property theft One of the more difficult areas of the law to enforce includes theft of intellectual property assets such as trade marks and the illegal sharing of mp3 music files and DVDs. Potential theft of trade marks, or misuse of trademarks

2009 John Wiley and Sons Australia

Ethical and legal issues

Consumer protection Effective methods consumers can take to protect themselves online include: Anti-virus software Install a firewall Email filters to delete spam Never give personal details to strangers Use a secondary email address when registering for online services.
2009 John Wiley and Sons Australia

Electronic marketing
Technology burnout Professionals seeking to switch off or unplug. People are working far beyond the traditional 9 to 5 because they are constantly connected to work. Legal enforcement The borderless nature of the online world makes it difficult to determine which laws or apply.

2009 John Wiley and Sons Australia

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Electronic marketing and marketing strategy

Target markets The online community is extremely diverse. Online users can be divided into segments or niches based on particular characteristics in the same way as in traditional marketing. Customer relationship management (CRM) Using information about customers to produce e-marketing experiences that create, build and sustain long-term relationships.
2009 John Wiley and Sons Australia

Electronic marketing and marketing strategy

The marketing mix: Products that can be completely digitalised are particularly suited to online purchase, followed by products that can be partly digitalised. The online environment enables consumers to easily compare price. Online marketers must find ways to offer more value than their competitors.
Cont next slide.
2009 John Wiley and Sons Australia

Electronic marketing and marketing strategy

The internet and other telecommunications technologies, such as mobile phones, can themselves act as a distribution platform. The internet provides opportunities for promotion, but those opportunities are also available to all competitors. The challenge for marketers is to offer a better value proposition than competitors.

2009 John Wiley and Sons Australia

24/07/2010

Electronic marketing and marketing strategy

2009 John Wiley and Sons Australia

Electronic marketing and marketing strategy

Electronic data interchange (EDI) Comprehensive, secure and real-time data exchange . Built-in stock management via barcodes. Intranet An internal web site for the use of staff. Extranet A private web site for sharing information securely between different organisations.
2009 John Wiley and Sons Australia

Electronic marketing
Chapter summary: define electronic marketing explain the unique characteristics of emarketing that differentiate it from traditional marketing explain specific e-marketing methods explain ethical and legal issues relating to e-marketing discuss the role of e-marketing in an overall marketing strategy
2009 John Wiley and Sons Australia

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