Electronic Marketing: Integrating Electronic

Resources into the Marketing Process, 2e

7/2/2014
2004
Joel Reedy and Shauna Schullo
Electronic Marketing
Chapter 2
Concept of Electronic Commerce and
the Traditional Marketing Process
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Is Anybody Out There?
A Worldwide Internet Survey (Nua) makes an educated guess
that 580.78 million people worldwide are online as of May 2002.
In June 2001 Gartner estimated 65 million U. S. households
were active on the Internet, an 8.4 million increase over 2000.
Women (52.1%) now outnumber men (47.9%) in online usage.
Mediamark research states that 39 million people use the
Internet at work.
9 out of 10 school-aged children (6-17) have Internet access at
school.
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Is Anybody Out There?
1. United States (102.0 million)
2. Japan (20.0 million)
3. Germany (15.1 million)
4. South Korea (13.1 million)
5. United Kingdom (13.0 million)

6. Canada (8.8 million)
7. Italy (8.3 million)
8. Brazil (6.0 million)
9. Australia (5.6 million)
10.France (5.5 million)

The Worlds Top 10 Online Populations
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Why Should Companies Consider
Using Electronic Marketing?
Requires efforts for more situations than one standard
approach
The Internet can be used by long-established companies
looking for fresh approaches
Entrepreneurs might use the Internet to jump-start a
startup business or one that has some history but no money
Ongoing domestic company sees a product or service fit to
a selected market within a selected country or region
Review the reasons why electronic commerce is right for the
firm
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Why Should Companies Consider
Using Electronic Marketing?
How is business using the Internet?
52.8 million people use the Internet at work
Most at work users are gathering information not using it for
entertainment
50% said their firm had its own Web site which is an integral
part of the way they do business
A proposed 66% of businesses use the Internet for advertising,
marketing and PR
36% are purchasing products and services
34% are conducting industry or market research

Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
The Virtual Retailer
The front door, roof, and back door of a virtual store are the flat
surface of your monitor
One of the main driving forces includes the fact that each retailer
serves customers with different demographic, psychographic, and
behavioral characteristics
Marketers hire communications specialists such as:
In-house designers or Web masters to create and maintain the
companys Web stance
Companies might be a one-person operation or a national
interactive advertising agency
Third participant is the Internet provider (IP) or Internet service
provider (ISP)
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Comparing the Traditional Marketing
Process Model
Marketers must understand the current dynamics of the
marketplace
Be aware of shifts in the marketplace before making
marketing plans
The first step in the marketing overview is to initiate a
situation analysis

Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Evaluating the Online Marketing
Situation
Knowing at what point to start is always the key to
successful marketing efforts; the stalwart queries of who,
what, when, where, and why are the conventional, proven
embarkation concepts for the investigation
Initiate an online awareness as an extension of the
products or services promotional program
An advantage of Web messages is the ability of encouraging
interactive response
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Evaluating the Online Marketing
Situation
The capability to improve the dialog and react quickly to
customer service inquiries
Considered set of Frequently Asked Question (FAQs) can
oftentimes substitute as an answer key
Technical support can be enhanced by e-mail
communications
Benefit is that technical information can be dispensed with a
greater quality of consistency if fewer people are dealing
with customers
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Evaluating the Online Marketing
Situation
The Web is conducive for testing new product or service
concepts
Customer tracking has become much easier and more
accurate as companies have instituted database
development programs
Online marketers are discovering that employee recruitment
can be conducted on the Web
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Defining the Information Search
Relevant market research and input to help set direction for
the future marketing plan
Primary research
Secondary research
Steps in the research process
Step one is to define the required relevant research
Step two in the research process is to ascertain if and where
the information can be obtained
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Proposed Market Prospect
Description
The environmental factors are defined
Markets should be described, perhaps two or three market
segments could be appropriate for communications and
consumption targets
Setting expansive prospect parameters allows the marketer
to begin construction of the marketing strategy, as the
marketing planning evolves, more narrow and clearer
profiles will start to emerge
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
New Product or Service Definition
Concisely describe the concept of the new product or
service, if the marketer cannot, it is unrealistic to expect the
audience to work to understand
The product or service must satisfy some need or desire of
the target market
A marketer must think in terms of expected benefits that are
attractive to the intended audience
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
New Product or Service Definition
Framing the product or service concept, there are several
facets to consider:
General utility of the good
Convenience of procuring the good
Timely delivery of the good
Sales environment where the good is purchased
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
New Product or Service Definition
Many new products are developed as marketers keep tabs
on market trends within their industry
Customer recommendations
Industry publications
Online industry resources
Services are more difficult to establish than products
because of intangible nature

Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Environmental Factors and Market
Trends
There are four major categories of environmental factors
that the marketer must monitor
Economic environment
Cultural environment
Legal environment
Political environment
Each of these four environments is equally important since
an imbalance in one area can create unexpected tremors in
others
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Demographic and Other
Characteristics
This is the area of change that applies to the people portion
of the marketing equation
Demographic information comes from the ten-year census
initiated in 1790
Psychographics are attitudinally constructed, and many
attitudes are difficult to quantify
Segmenting populations into similar groups, a marketer can
analyze many factors as supplied by the Census data
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Demographic and Other
Characteristics
Other interesting information to consider:
Households can be described in several ways as total number
by county, zip code, Census tract, or radius in miles or by
heads of households
Age profiles
Income clusters
Educational level
Occupational status
Psychographic or lifestyle analysis can uncover lifestyle
characteristics for which the marketer is searching
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Company History and Competencies
Behind every successful business lies skills or
competencies that sets the enterprise apart
The marketing manager can perform an internal audit (or
external audit among suppliers, current customers, or past
customers) to evaluate perceived and real strengths and
weaknesses; these competencies should be reflected as
benefits
Their contention was that every competitor, either company,
brand of product or service, vies like rivals in product
categories, and each is ranked in the consumers mind
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Competitive Analysis and
Evaluation
Conducting research on competitors products or services
has been facilitated by Web usage because so many Web
sites contain so much information
Surfing for competitive information is a good idea,
particularly if the marketer is entering new fields or
territories
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
7/2/2014
2004
Joel Reedy and Shauna Schullo
Assessment of the Niche
Opportunity
Analysis of the marketing factors and forces, the marketer
will be able to establish the product or service niche, a
narrower rather than broader market segment
Probably the best balance in a marketing relationship is
derived as a market segments needs are met satisfactorily
while the companys operation is profitable and efficient
The market opportunities can come from existing customer
bases, such as extending current offerings into new
products