Online marketing

presented by- Eshaan Chhagotra

• The explosion of Internet usage has created a new world of electronic commerce, a term that refers to the buying and selling process supported by electronic means.

• Online Marketing is conducted through interactive online computer systems, which link consumers with sellers electronically.

According to a recent survey by Pew Internet & American Life Project...58% of adults said they use the Internet as first choice (at home, at work or some other place) to find information about a product or service (2007)

Why does the Internet matter to Your Company?

Categories of consumers

• Impulsive buyers: purchase quickly

• Patient buyers: make some comparisons first

• Analytical buyers: do substantial research before buying

E-Marketspace

A marketplace in which sellers and buyers exchange goods and services for money (or for other goods and services), but do so electronically.

Components-• Back end• Intermediaries• Other business partners• Support services• Digital products

• Customers• Sellers• Products• Infrastructure• Front end

E-Marketing Strategies

The essential issues of marketing are also referred to as the four Ps of marketing mix:

• Product: Physical item or service that a company is selling

• Pricing: Amount the customer pays for the product

• Placement: How the product/service gets to the customer, sometimes called “place” referring to “where” a product/service is sold

• Promotion: Any means of spreading the word about the product

There are extra three Ps as the extended marketing mix:

• People: Right person, trained well, motivated

• Process: Providing services to customers

• Physical evidence: Case studies, testimonials

• E-storefront: A single or company Web site where products and services are sold

• E-mall (online mall): An online shopping center where many stores are located

– some are merely directories– some are actually large click-and-mortar retailers (e.g., shopping.com)– some are virtual retailers (e.g., buy.com)

Types of E-Markets

• E-marketplace: An online market, usually B2B, in which buyers and sellers exchange goods or services; the three types of e-marketplaces are private, public, and consortia

– Private e-marketplaces: Online markets owned by a single company; can be either sell-side or buy-side marketplaces• Sell-side e-marketplace: A private e-market in which a company sells either standard

or customized products to qualified companies• Buy-side e-marketplace: A private e-market in which a company makes purchases

from invited suppliers

– Public e-marketplaces: B2B markets, usually owned and/or managed by an independent third party, that include many sellers and many buyers; also known as exchanges

Three components

• B –Intranet business transactions• B2B - Marketing by a firm to business buyers• B2C – marketing on the internet to ultimate

consumers.

Online Marketing Channels

Creating an Electronic StorefrontBuy Space on a Commercial Online Service

Open It’s Own Web Page

Creating an Electronic StorefrontBuy Space on a Commercial Online Service

Open It’s Own Web Page

Placing Advertisements OnlinePlace Ads in Special Sections of Online Services

Place Ads in Certain Internet NewsgroupsBuy Online Ads That Pop Up While Consumers are Surfing

Placing Advertisements OnlinePlace Ads in Special Sections of Online Services

Place Ads in Certain Internet NewsgroupsBuy Online Ads That Pop Up While Consumers are Surfing

Participating in Forums, Newsgroups & Web CommunitiesForums: Discussion Groups on Commercial Online Services

Newsgroups: Internet Version of ForumsWeb Communities: Sites Where Members Exchange Views Online

Participating in Forums, Newsgroups & Web CommunitiesForums: Discussion Groups on Commercial Online Services

Newsgroups: Internet Version of ForumsWeb Communities: Sites Where Members Exchange Views Online

Using E-Mail and WebcastingCustomers Send Questions, Suggestions & Complaints Via E-Mail

Webcasting: Automatic Downloading of Information to PC’s

Using E-Mail and WebcastingCustomers Send Questions, Suggestions & Complaints Via E-Mail

Webcasting: Automatic Downloading of Information to PC’s

The Benefits of Online Marketing

ConvenientConvenient

PrivatePrivate

Abundance of Information

Abundance of Information

InteractiveInteractive

ImmediateImmediate

ConsumersConsumers CompaniesCompanies

Consumer Relationship Building

Consumer Relationship Building

Reduces CostsReduces Costs

Increases EfficiencyIncreases Efficiency

Provides FlexibilityProvides Flexibility

Global MediumGlobal Medium

Establishing web marketing facility

Business Models

E-marketing

E-Commerce:Selling goods And services

online

Publishing:Where you sell

advertise

Lead-Based- Sites:Banner sites online

Acquisition, conversion, retention

• The first step in doing business on the web is to acquire or draw visitors to the site itself

• The second step is converting those first time visitors into customers by persuading them to make a purchase or register with the site, etc.

• Customers who return to the site one or more times after making their first purchases are retained customers

Advertising

• Advertising is all about communication between:– a company/organization and its current

customers– a company/organization and potential

customers– a company/organization and its former

customers

• To be effective, firms should send different messages to each of these audiences

Types of Internet advertising/marketing

• Banner ads: most popular, different sizes and styles

• Pop-up ads: popular, another type is pop-behind

• E-mail marketing: powerful, economical, legal implications, spam

• Affiliate marketing: commission-based, benefit of the selling site’s brand in exchange for the referral

Getting high traffic

• Discounts• Gifts• Contests• Games • Other devices like ads, billboards.

Make site interactive

• Dynamic site gives more business than dumb site.

• Customer wants to be informative with current knowledge.

Making site user friendly

• Not much complications should be there• Stay must be rewarding.• Operating discussions groups among users.

Creating a system for delivery of products

• Ordered products must be delivered in time.• Logistics should be efficient enough.