Slide 8.1 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd...

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Slide 8.1 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 CHAPTER 8 E-MARKETING

Transcript of Slide 8.1 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd...

Page 1: Slide 8.1 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 CHAPTER 8 E-MARKETING.

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Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007

CHAPTER 8E-MARKETING

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Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007

Marketing The definition of marketing by the Chartered

Institute of Marketing (http://www.cim.co.uk/) is:

‘Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably’

Which e-marketing tools can assist? Web, e-mail, databases, wireless and digital television.

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How do e-tools support marketing?

Identifying – how can the Internet be used for marketing research to find out customers’ needs and wants

Anticipating – anticipating the demand for digital services

Satisfying – how to achieve customer satisfaction through the electronic channel

Profitably

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Figure 8.1 The e-marketing plan in the context of other plans

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E-marketing defined

Achieving marketing objectives through use of electronic communications technology

Another similar term is digital marketing

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Figure 8.2 SOSTAC™ – a generic framework for e-marketing planning

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Is a separate e-marketing plan required? Customer demand will be underestimated Existing and start-up competitors will

gain market share Duplication of resources Insufficient resources will be devoted to

planning Insufficient customer data are collected Efficiencies available through online

marketing will be missed

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Figure 8.4 Inputs to the e-marketing plan from situation analysis

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Situation Analysis

To understand the current and future environment in which the company operates

Involves consideration of all of these factors and will form the basis for defining objectives, strategies and tactics

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Demand analysis What percentage of customer businesses have

access to the Internet? What percentage of members of the buying unit in

these businesses have access to the Internet? What percentage of customers are prepared to

purchase your particular product online? What percentage of customers with access to the

Internet are not prepared to purchase online, but are influenced by web-based information to buy products offline?

What are the barriers to adoption amongst customers and how can we encourage adoption?

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Figure 8.5 Customer demand analysis for the car market

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Competitor Analysis

The monitoring of competitor use of e-commerce to acquire and retain customer

Companies should review: Well-known competitors Well-known international competitors New Internet companies locally and

worldwide

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Benchmarking solutions Financial performance Marketplace performance – market share and sales trends and

significantly the proportion of sales achieved through the Internet. Business and revenue models – do these differ from other

marketplace players? Marketing communications techniques – is the customer value

proposition of the site clear? Does the site support all stages of the buying decision from customers who are unfamiliar with the company through to existing customers, are special promotions used on a monthly or periodic basic? Beyond the competitor’s site, how do they make use of intermediary sites to promote and deliver their services?

Services offered – what is offered beyond brochureware? Is online purchase possible, what is the level of online customer support and how much technical information is available?

Implementation of services – these are the practical features of site design such as aesthetics, ease of use, personalization, navigation and speed.

The 7Ps.

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Intermediary analysis

Identifying relevant intermediaries for a particular marketplace

Identify strategic partners when executing an online advertising campaigns

To consider the way the marketplace is operating

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OBJECTIVE SETTING

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E-Marketing Objectives

Acquisition Objective: Menarik pengunjung kepada situs perusahaan atau

mempromosikan suatu merek tertentu dengan meraih pengunjung melalui search engine atau iklan di situs lain.

Conversion Objective Mempengaruhi pengunjung situs untuk mencapai

tujuan dari situs perusahaan, misalnya sales leads, penjualan atau menjelajah konten tertentu.

Retention & Growth Objective Mengajak pelanggan untuk melakukan pembelian

ulang

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SMART e-marketing objectives Specific Measurable Achievable Realistic Time-constrained

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Examples of SMART e-marketing objectives

Start-ups – acquiring a specific number of new customers or to sell advertising space to generate a specified revenue that will hopefully exceed investment in site creation and promotion!

Established mobile-phone operator – increase customer retention by reducing churn from 25 per cent to 20 per cent.

Established media company – increase online revenue, target of 20 per cent online contribution to revenue by offering new online services and media sales.

Established business-to-business engineering company – increase overall revenue by 5 per cent, through targeting sales in new international markets.

Reduce costs of routine customer service by 10 per cent to enable focus on delivery of specialized customer service.

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Figure 8.6 Assessment of the future online promotion contribution and online revenue for The B2B Company, for Product A, Europe

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STRATEGY

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De Kare Silvers ES test1.Product characteristics. Does the product need to

be physically tried or touched before it is bought?

2.Familiarity and confidence. Considers the degree the consumer recognizes and trusts the product and brand.

3.Consumer attributes. These shape the buyer’s behaviour – are they amenable to online purchases in terms of access to the technology skills available and do they no longer wish to shop for a product in a traditional retail environment?

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ES Test results

Product 1. Product characteristics (10)

2. Familiarity and confidence (10)

3. Consumer attributes (30)

Total

1. Groceries  4 8 15 27

2. Mortgages 10 1  4 15

3. Travel 10 6 15 31

4. Books  8 7 23 38

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Figure 8.8 Stages in target marketing strategy development

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TACTICS

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Online value proposition A clear differentiation of the proposition from

competitors based on product features or service quality.

Target market segment(s) that the proposition will appeal to.

How the proposition will be communicated to site visitors and in all marketing communications. Developing a tag line can help this.

How the proposition is delivered across different parts of the buying process

How the proposition will be delivered and supported by resources – is the proposition genuine? Will resources be internal or external?

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Example OVPs ‘Compare. Buy. Save’. Kelkoo (www.kelkoo.com) ‘Earth’s biggest selection’. Amazon (

www.amazon.com) ‘Search the largest inventory of cars and trucks on

the Internet. More than 1.5 million listings, updated daily’ (www.autotrader.com)

The Citibank site design (www.citibank.com) uses a range of techniques to illustrate its core proposition and OVP. The main messages are: Welcome to Citibank: The one-stop solution for all your

financial needs. Look for a product or service; Learn about a financial

product; Find a location.

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Indonesian OVP

Bhinneka.com: “Indonesia’s No 1 Webstore”

Tokobagus.com: “Jual Beli Bagus” Tokopedia.com: “Jual Beli Online Aman

dan Nyaman” Lakupon.com: “Jagonya Kupon” Alfa online: “Smart & Easy Shopping”

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Figure 8.13 The elements of the marketing mix

The Marketing Mix

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Product Extend range (Tesco) Narrow range (WH Smith iDTV) Online-only products (banks) Develop new brand (Egg) Migrate existing brand (HSBC) Partner with online brand (Waterstones

and Amazon).

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Product

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Price Differential pricing:

Reduce online prices due to price transparency and competition (easyJet)

Maintain price to avoid cannibalisation of offline sales (Dixon)

New pricing options (software, music): Rental Pay per use Reverse auctions (B2B) Dynamic pricing (Concert tickets).

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Implications for price

Increased price transparency Downward pressure on price New pricing approaches Alternative pricing structure or policies

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Place Place = avoiding channel conflicts

Disintermediation – sell direct Reintermediation – partner with new

intermediaries Countermediation:

Form new intermediaries Partner with existing intermediaries Distance from intermediaries.

(Abbey National)

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Promotion Selective use of new online tools for

different stages of the buying process and customer lifecycle

Online only campaigns Integrated campaigns – incorporating

online tools into communications mix.

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Figure 8.14 Options for the online vs offline communications mix (a) online > offline, (b) similar online and offline, (c) offline > online

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Service People

Automate – use web self-service, offer customer choice

Contoh: Autoresponder E-mail notification Callback Facility FAQ Onsite search engines Virtual Assistance

Process Change process for service – contact strategies

Physical evidence Site design – differentiate or support brand Fulfillment quality.

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BrandingMalcolm McDonald in their classic 1992

book, Creating Powerful Brands as an identifiable product or service augmented in such a way that the buyer or user perceives relevant unique added values which match their needs most closely. Furthermore, its success results from being able to sustain these added values in the face of competition.

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Options for changing brand identity online Transfer traditional brand online Extend traditional brand Partner with existing digital brand Create a new digital brand

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Figure 8.16 Changes to brand perception and behaviour as a result of using the Internet for researchSource: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004

Page 40: Slide 8.1 Dave Chaffey, E-Business and E-Commerce Management, 3 rd Edition © Marketing Insights Ltd 2007 CHAPTER 8 E-MARKETING.

Figure 8.17 The influence of brand knowledge on purchase. Matrix for question ‘I will buy a product if …’Source: BrandNewWorld: AOL UK/Anne Molen (Cranfield School of Management)/Henley Centre, 2004

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Actions

What level of investment in the Internet channel is sufficient to deliver services?

What training of staff is required? What new responsibilities are required

for effective Internet marketing? Are changes in organizational

restructuring required? What activities are involved in creating

and maintaining the web site?

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Control

Conduct marketing research Analysis of web-server log files Intranets can be used to share

information

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Summary: Rancangan Pemasaran