EMarketing notes

E MARKETING (VTU)
Unit 1: (10 Hours)
Introduction to E-Marketing: Landscape – Past – Today – Future – Internet, Marketing
Paradigm – Internet Infrastructure Stack Business Models & Strategies: Strategic Planning –
Strategy to Electronic Planning – Strategic Drivers of the Internet Economy – Business Models
to E-Business Models – E-Business Models– Performance Metrics – The Balanced Scorecard.
E-Marketing: Landscape
 The customer is CEO.
 E-commerce
 Advertising online
 Search engine marketing.
 Owned, paid, and earned media.
 Mobile marketing
 User-generated content
 Social media communities.
 Content marketing
 Local and location-based marketing
 Brand transparency.
 Inbound marketing.
 Metrics rule.
PAST:
Internet 101
Technically speaking, the internet is a global network of interconnected networks. This includes
millions of corporate, government, organizational, and private networks.
There are three types of access to the
internet:
1. Public internet—The global network that is accessible by anyone, anywhere, anytime.
2. Intranet—A network that runs internally in a corporation but uses internet standards such as
HTML and browsers. Thus, an intranet is like a mini-internet but with password protection for
internal corporate consumption.
3. Extranet—Two or more proprietary networks that are joined for the purpose of sharing
information. If two companies, or a company and its suppliers or customers, link their intranets,
they would have an extranet. Access is limited to extranet members.
E-business is the optimization of a company’s business activities using digital technology.
Digital technologies include products and services, such as computers and the internet, which
allow the storage and transmission of data in digital formats (1s and 0s).

E-commerce is the subset of e-business focused on transactions that include buying/selling
online, digital value creation, virtual marketplaces and storefronts, and new distribution channel
intermediaries.
E-marketing is the use of information technology for the marketing activity, and the processes
for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
E-Marketing Is Bigger than the Web.
E-Marketing Is Bigger than Technology.

E-Marketing’s Past: Web 1.0
The internet is over 40 years old. Started in 1969 as the ARPANET, it was commissioned by the
U.S. Department of Defense’s Advanced Research Projects Agency (ARPA) as a network for
academic and military use. The first online community, the USENET, began 10 years later. Over
800 million messages from that early community are now
archived in Google Groups. The first Web pages and internet browsers appeared in 1993 and that
was the internet’s tipping point. This was Web 1.0: Organizations created content on Web pages
and in e-mail and users consumed the content.

Internet’s unique properties:
• Lower costs. Reach the right customers at a much lower cost than with traditional
marketing
• methods.
• Trackable, measurable results. Obtain detailed data about customer responses to
• marketing campaigns.
• Global reach. Access new markets across the globe.
• Personalization. Connecting a database to a Web site allows for individually targeted
offers. The more consumers and businesses buy, the better the data and more effective the
marketing.
• One-to-one marketing. Gain instant access to individual customers on computers and
mobile phones.
• More interesting campaigns. Use creative multimedia content to engage customers.
• Better conversion rates (increased purchases).
• Twenty-four-hour marketing.

E-Marketing Today: Web 2.0
The components of Web 2.0 sites (and the popularity of blogs and social networking) exist
because of the ability to offer mini homepages, a gig of storage, your own e-mail, a music player
and photo, video and bookmark sharing . . . all of which were initially “first-generation”
technologies. (netlingo.com)
Power Shift from Sellers to Buyers.
Consumers trust each other more than companies.
• Market and media fragmentation.
• Connections are critical.
• Everyone is a content producer.
• Information transparency.
• Social commerce.

One way to engage online users is through Crowdsourcing. This is the practice of outsourcing
ads, product development, and other tasks to a people outside the organization. For example,
Doritos holds an annual contest where users create 30-second television commercials. Site
visitors vote on the finalists and the winner’s
ad is shown during the Super Bowl game.
Content Marketing: Content marketing is a strategy involving creating and publishing content
on Web sites and in social media.
Outbound tactics include traditional and online media advertising, telephone calling prospects,
trade shows, and e-mail blasts.
The components of inbound marketing are content (e.g., blogs, videos, eBooks, white paper pdf
files), social networks (e.g., Twitter, Facebook, blogs), and search engine optimization
techniques to help get the social media or Web site come up on the first page of results for a
keyword search.
The internet allows for tracking every mouse click, and marketers now have well-established
measures for online tactics.
New Technologies: Wireless Networking and Mobile Computing 4G is a fourth-generation high
speed, wireless technology that replaces 3G (third generation).
Cutting the Cord In 2002, the number of mobile subscriptions began to surpass landline
telephones.
Appliance Convergence : Digital media are simply data that can be sent to viewers by a number
of ways. Television programs, radio shows, news, movies, books, and photos are sent by their

creators in electronic form via satellite, telephone wires, or cable, which are then viewed by the
audience on receiving appliances such as televisions, computers, radios, smartphones, and others.
Exciting New Technology-Based Strategies
Uber Technologies, Inc., offers an iPhone and Android app that allows consumers to simply tap
once and a taxi or luxury car with driver will arrive to pick them up (uber.com).
Other Opportunities and Challenges in Web 2.0
Internet adoption matures.
Online retail sales mature.
Search engines are now reputation engines.
Image recognition takes root. Imagerecognition is a technology that sees the content within an
image.
Improved online and offline strategy integration. This integration is especially evident in
multichannel marketing—offering customers more than one way to buy something, such as a
Web site, retail store, and catalog.
Intellectual capital rules. Imagination, creativity, and entrepreneurship are more important
resources than financial capital.
Decline of print media. In early 2012, the Encyclopedia Britannica announced that it will no
longer produce a printed version (the first edition was published in 1768).
Online fund-raising increases.
Location-based services. Many companies use the smartphone’s GPS (global positioning
system) feature to provide local search, such as Google local search.
Everything is “FSTR.” Everything is faster in the Web 2.0 environment.
The Future: Web 3.0
Semantic Web :
Way that marketers can give customers exactly what they want, when they want it, and where
they want it. Web 3.0 (individual data presented and shared as desired).
Stepping Stones to Web 3.0:

Many predict that Web 3.0 will include higher bandwidth, faster connection speeds, artificial
intelligence, seamless social networking, or modular Web applications eliminating the need for
software on individual PCs.
Wearable computing, 3D printing, Distance online education, “Big data” refers to the sea of
information available about consumers, organizations, and all internet users, Google Wallet,
Cloud computing, Augmented reality,

Marketing Paradigm – Internet Infrastructure Stack Business Models & Strategies:

Internet infrastructure includes transmission media, including network cables, satellites and
antennas, and routers, repeaters, and other devices that control transmission paths.
Technology infrastructure generally does not include the operating systems or software stack
above the hardware. However, where public WANs or public cloud are used, such transport
mechanisms, along with platform or software as a service, may be part of the overall definition
of infrastructure.
Infrastructure must provide a suitable platform for all the necessary IT applications and functions
for an organization or individual.
Forming the backbone of the stack is the telecommunications connection, either narrowband or
broadband. What is commonly referred to as the “Internet backbone” is actually a series of
networks run by various carriers. It is a redundant system that rarely experiences problems that
are visible to the average user and therefore remains essentially invisible. The average computer
user gains access to the Internet via an Internet Services Provider (ISP), who in turn accesses the
services of the backbone itself. The user of mobile devices must subscribe directly to a mobile
telecommunications service, so those carriers and the services they provide are highly visible.
Wireless telecommunications are especially competitive as a result of deregulation efforts around
the world.
Strategic Planning – Strategy to Electronic Planning – Strategic Drivers of the Internet
Economy
Strategic planning is the “process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing market opportunities”.
Growth, Competitive position, Geographic scope.
Environment, Strategy, and Performance

The term strategy has been used to describe everything from “the course we chart, the journey
we imagine and, at the same time, the course we steer, and the trip we actually make”.
Strategy to Electronic Planning
E-business strategy is the deployment of enterprise resources to capitalize on technologies for
reaching specified objectives that ultimately improve performance and create sustainable
competitive advantage. Thus, when corporate-level (also called enterprise-level) business
strategies include information technology components (social media, digital data, databases,
etc.), they become e-business strategies.
Strategic Drivers of the Internet Economy
1. Information provides the greatest value added.
2. Distance no longer matters.
3. Speed is of the essence.
4. People are the key assets.
5. Growth rates are accelerated by the network.
6. Value in a network rises exponentially with market share.
7. Market power is determined by skill in managing information.
8. Marketplace power has shifted in the direction of customers.
9. The Internet makes it possible to deal with customers on a one-to-one basis.
10. The era of instant gratification is here.
Business models to e-business models:
Business model is a method by which the organization sustains itself in the long term and
includes its value proposition for partners and customers as well as its revenue streams.

An e-business model is a method by which the organization sustains itself in the long term using
information technology, which includes its value proposition for partners and customers as well
as its revenue streams. For example, the internet allows education, music, video, and software
firms to deliver their products online, thus creating a new distribution model that cuts costs and
increases value.
Customer value. Does the model create value through its product offerings that is differentiated
in some way from that of its competitors?
• Scope. Which markets does the company serve, and are they growing? Are these markets
currently served by the company, or will they be higher-risk new markets?
• Price. Are the company’s products priced to appeal to markets and also achieve company share
and profit objectives?
• Revenue sources. Where is the money coming from? Is it plentiful enough to sustain growth
and profit objectives over time? Many dot-com failures, for example, overlook this element.
• Connected activities. What activities will the company need to perform to create the value
described in the model? Does the company have these capabilities? For example, if 24/7
customer service is part of the value, the company must be prepared to deliver it.
• Implementation. The company must have the ability to actually make it happen, which
involves the firm’s systems, people, culture, and so on.
• Capabilities. Does the company have the resources (finance, core competencies, etc.) to make
the selected models work?
• Sustainability. The e-business model is particularly appropriate if it can create a competitive
advantage over time. Will it be difficult to imitate, and will the environment be attractive for
maintaining the model over time?

Performance measurement Metrics:
Web analytics is the e-marketing term for the study of user behavior on Web pages. Companies
collect data as users click through pages and take actions, such as registration or purchase.
Companies use these data to optimize their online investments. These metrics help firms
manage Web content, improve user targeting and personalization, and increase user engagement
(and much more). Commonly collected metrics include which tactics generated the site traffic
(e.g., click-throughs from online advertising or search engine optimization), which pages are
viewed most often, how many comments were posted on a blog, and how many fans there are on
a company Facebook page. Of course, a key metric involves conversions to sales or other desired
behaviors, such as signing up for an e-mail newsletter. Finally, organizations want to know
which of their new tactics are working well—things such
as a new one-day shipping price or special promotion on the site to increase sales. These data for
Web analytics are collected in several ways:
Web site server logs record the user’s IP (internet protocol) address, which browser the visitor is
using, his or her location before arriving at the company site, the time of the day, and every
click-through of the user while on the site. The IP address helps companies understand where
users live (e.g., .jp for Japan).
Cookie files are small data files written to a user’s hard drive when visiting a site. They are
necessary for using shopping carts and other operations at a site. When customers return, the
cookie file data are retrieved and
used to understand how many visitors are returning. Amazon.com uses cookie file data to display
the user name on its home page instantaneously.

Page tags are one pixel on a page that is invisible to users (a pixel is one dot of light on a
computer screen). Page tags activate a special script when users are on the page, providing
information such as when items are removed
from a shopping cart. Tags can also be activated based on cookie files on the visitor’s hard drive
from a previous visit—creating data about the return visit and what the user did.
Geolocation, uses many different technologies to locate an internet-enabled device (and its
owner) at its physical world address: For example WiFi, GPS (global positioning satellite
coordinates), or simply IP addresses. Marketers can use this for market segmentation when they
observe consumer behavior from various countries or other more precise locations. Web
analytics software helps companies analyze all these data on server logs to uncover usage
patterns. They can do this through free services or through purchased software. E-marketers use
thousands of different performance metrics,
The Balanced Scorecard
The Balanced Scorecard, developed by two Harvard Business School professors in 1990, is one
such system with a huge adoption rate (over 50% of large enterprises according to estimates as
reported at balancedscorecard.org).
BSC applied to Airline.
• Customer perspective. On-time flights, more customers, and lower prices. Metrics
included being the first in the industry according to the Federal Aviation Administration on-time
arrival ratings, customer satisfaction rankings of 98 percent, and a healthy percentage change in
number of customers.
• Internal perspective. Improve turnaround time as measured by on-ground time of less than 25
minutes and 93 percent accurate departure time.
• Learning and growth perspective. Align ground crews better with company goals, measured
by the percentage of ground crew who are trained and the percentage of ground crew who are
stockholders. The airline wanted 70 percent of one-year employees, 90 percent of four-year
employees, and all of six year employees to own the company’s stock.
• Financial perspective. Profitability increase of 25 percent per year, lower costs, and increased
revenue (based on market value, seat revenue, and plane lease cost).

Unit 2: (12 Hours)
E-Marketing Plan: Overview of the E-Marketing Planning Process – Creating an EMarketing
Plan – A Seven-Step E-Marketing Plan The E-Marketing Environment: Overview of Global E-
Marketing Issues – Country and Market Opportunity Analysis – Technological Readiness
Influences Marketing – Wireless Internet Access – The Digital Divide, Ethical and Legal Issues
– Privacy – Digital Property – Online Expression – Cyber Security –Cyber Crime.
Overview of the E-Marketing Planning Process
Creating an E-Marketing Plan The e-marketing plan is a blueprint for e-marketing strategy
formulation and implementation. It is a guiding, dynamic document that links the firm’s e-
business strategy (e-business models) with technology- driven marketing strategies and lays out
details for plan implementation through marketing management. It is usually integrated with the
firm’s overall marketing plan. The marketing plan guides delivery of the desired results,
measured by performance metrics, according to the specifications of the e-business model
embedded in the firm’s e-business strategy. Exhibit 3.1 shows where the e-marketing plan fits in
the process.
This marketing process entails three steps:
- Marketing plan creation,

- Plan implementation,
- Evaluation/corrective action.
Creating an EMarketing Plan:
Two common types of e-marketing plans are the napkin plan and the venture capital e-
marketing plan.
The Napkin Plan In what one marketer calls the napkin plan, many entrepreneurs simply jot their
ideas on a napkin over lunch or cocktails and then run off to find financing.
See the 2006 social network blueprint sketch created by Twitter’s founder Jack Dorsey on
Wikipedia (search for “Twitter”). It is simply a white legal-pad sketch that inspired this great
company.
Venture capital e-marketing plan:
Where does an entrepreneur go for capital? Some of it is debt financed through bank loans,
though most of it is equity financed. Start-up companies tap private funds (friends and family),
angel investors, and VCs. Angel investors provide funds with fewer requirements than those of
VCs. In general, friends and family are the
smallest sources of capital; angel investors invest hundreds of thousands of dollars; and VCs
invest millions of dollars. Some banks, corporations, and consulting firms have established
venture capital branches to finance internet start-ups. Some VCs even finance companies
operated out of college dorm rooms.
Advantages and drawbacks of both the napkin plan and the venture capital plan
Napkin Plan
Advantages – Accidental discovery, Overcome staid corporate culture.
Drawback – Lack of sound long-term planning and implementation plan.
Venture Capital Plan
Advantage – Emphasis on strategic plan, comprehensive long-term plan, forces entrepreneurs to
critically analyze their business, maximize organization resources.
Drawback – Focus is on exit plan for venture capitalists, maximize short-term returns.
Sources of Funding
*Bank loans *Private funds *Angel investors.
*Venture capitalists (VCs).

A Seven-Step E-Marketing Plan:

Overview of Global E-Marketing Issues – Users from other countries, speaking languages
other than English, will dominate the Internet.By2020 there were more than 599 million English-
speaking and 407 million Chinese-speaking web users. The online marketplace is changing and
will require that global e-marketers understand country e-readiness .E-marketers must
differentiate between industrialized nations and emerging economies.
Emerging Economies
Countries vary in their level of economic development. Some countries, such as the United
States, Canada, Japan, Australia, Great Britain, and Germany, have high levels of economic
development. Economists classify these countries as developed. Developed countries include all
of Western Europe, North America, Japan, Australia, and New Zealand (Case and Fair, 2001).
These countries are highly industrialized, use technology to increase their production efficiency,
and, as a result, have a high gross domestic product (GDP) per capita. A high GDP means
that citizens have enough discretionary income to buy items that will make their lives easier,
richer, and fuller.
Countries with large populations thus have the greatest potential for developing a vibrant middle
class—all things being equal (ceteris paribus as an economist might say). Four countries, Brazil,
Russia, India and China, represent
the largest growth markets in the world. Collectively, these four countries are called BRIC
countries or BEMs (big emerging markets). BRIC countries have more than 40 percent of the
world’s population and have received significant attention from many multinational corporations
and entrepreneurs. IKEA, the Swedish furniture retailer, has a strong Web presence in Russia
(ikea.com/ru/ru/) and China (ikea.com/cn/zh and ikea.com/hk/zh/), and will soon enter India. The
BRIC classification is useful, yet the dynamic, market potential of other countries in the

world has led some individuals to describe the next group of emerging market economies as
CIVETS
(Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa). E-marketers will see
opportunity in a country such as Colombia, which has 25 million internet users. Over half of the
population in Colombia (56%) is internet connected. A similar relationship exists for Vietnam,
where over one-third of the population has internet access. E-marketers also see long-term
opportunity in CIVETS because of the large number of youth in each country (Arno,
2012).
Importance of information technology:
Today, the internet, along with its supporting information technologies, can jump-start many
national economies. India is a prime example of such efforts. Bangalore, a city well known in
India mainly for its wonderful gardens and mild temperatures, is now famous as the center of
India’s explosive growth in software and IT services. The epicenter of all this activity is a
sprawling 330-acre industrial park called Electronic City. In Electronic City, one will find the
corporate headquarters of Wipro and Infosys, two global giants that are leaders in this Indian
information revolution. In addition, Electronic City is home to both well-known American
companies (Motorola and Hewlett-Packard) and European companies (Siemens), which are
outsourcing call center operations, medical transcription, and even income-tax processing to
India.
Born global firms understand that the Web, along with e-mail, and Voice over Internet Protocol
(VoIP) communications, such as Skype, enable them to tap global markets immediately. For
example, Dewak is a company located in Medellin, Colombia, that offers customized helpdesk
and chat services for businesses using an open source content management system called
Joomla! As a born global firm.

Asia has the most Internet users.
Africa saw the greatest growth in Internet use.

North America has the highest penetration as a percent of the population.
E-marketers in emerging economies must meet marketing issues and unique challenges related to
the conditions of operating within a still developing nation.
In economic development
Information technology opens up new, exciting, global markets
The Internet can jump-start many national economies
Allows for instant access to a global marketplace

Unique challenges in the still Developed countries
Slow connection speeds

High costs of domestic phone calls
ISP costs
Privacy concerns
Censorship
Navigation difficulties
Taxes
Lack of content in one‟s own language
Lack of local content
Limited credit card use
Lack of secure online payment methods
Unexpected power failures
Country and Market Opportunity Analysis

E-marketing plan guides the marketer through the process of identifying and analyzing potential
markets.
Market differences and market similarities must be measured and compared to determine
strengths and weaknesses.
Global e-marketers bust balance two different analytical approaches.
Market differences
Market similarity
Market differences are ways in which two markets exhibit dissimilar characteristics.
Market similarity refers to ways in which two markets exhibit similar characteristics
If a firm is based in an emerging economy and wants to market to its home target, the marketer must
identify market differences within the population.
Marketers will choose foreign markets that have similar characteristics to their home market for
initial market entry.
All similar markets between developed countries have
High literacy rates
High Internet usage rates
Clearly defined market segments willing to shop various products
High Credit card usage rate
Secure, trusted online payment mechanisms
Efficient package delivery services
E-marketers have developed similar mobile apps for farmers in India: M-KRISHI® (krishi
means agriculture or farming in Hindi). Often, farmers need specific information about weather
as well as about pesticide and fertilizer use. M-KRISHI® allows rural Indian farmers to send
questions about any of these items through a simple text, voice, or picture interface (see Exhibit

4.8). Farmers receive prompt responses and, most importantly, information tailored to their
specific plots of land. Productivity and crops yields have increased. Rural Indian farmers pay
200 rupees (about $4.20) for a three-month subscription. The success of M-KRISHI® for
farmers has recently led to the expansion of this service to fishermen (see Exhibit 4.9). E-
marketers know that consumers will pay for services that create value.
Diaspora Communities
Globalization helps explain the increased migration of individuals from one country to another.
When a large number of people leave their home country and live together in a common
neighborhood or city abroad, they become part of a diaspora community. Diaspora communities
often want to maintain a relationship with their homeland. E-businesses in countries with
emerging markets use market similarity to target their own diaspora communities living abroad.
Technological Readiness Influences Marketing – Wireless Internet Access
E-Commerce Payment and Trust Issues
E-commerce in emerging markets is often disadvantaged by: Limited credit card use and
consumer skepticism. Customers did not think shopping online was “fun” Customers did not
“trust” online brands
Firms reassured customers concerning online security
Nepal, for example, is still predominately a cash-based economy and credit cards are scarce.
In Bolivia, only 2.3 percent of the population has a credit card.
Credit card use is virtually non-existent in Ethiopia.
E-marketers working in emerging economies should also understand attitudes toward online
purchasing.
A 2007 study in Lithuania found that 51% of Internet users had not made an online purchase
because they thought it was too risky.
Alternative payments were accepted
 Bank transfers.
 Cash on delivery.
 Postal orders.
 eBanka debit cards specifically created for online buying
 Czech Republic, eBanka, an Internet bank, was established in 1998 to handle secure online
purchases.

Technological Readiness Influences Marketing – E-marketers must deal with scary issues of basic
technology:
1. Limited access to and use of computers and telephones
2. High Internet connection costs.
3. Slow Internet connections speeds.
4. Unpredictable power supplies.
Computers
Historically, Internet connection is with a desktop PC and dial-up ISP.
Emerging economy countries do not have many privately owned computers.
Creates opportunities for local, small business entrepreneurs.
Telephone
Telephone land lines are entering the decline stage of their product life cycle
As wireless technology increases, landlines will become less useful and ultimately obsolete.
Challenges
Global computer ownership and access is unevenly distributed.
Ownership ranges from 84% in Kuwait to 2% in Bangladesh.
Telephones (and connectivity) can be scarce and expensive.
Many consumers in countries with emerging economies access the Internet from tele centers “small
shops that offer Internet connections”.
Many customers have cell phones, but not land lines

Countries with emerging economies often have higher Internet-related costs.
If an emerging economy customer has a telephone, chances are the Internet connection costs are
extremely high.
Dial-up costs can vary considerably.
Many customers in emerging economies have cell phones, but not land lines.
Broadband connections are developing quickly and growth is predicted to come from emerging
markets.
South Korea has one of the highest broadband penetration rates and one of the world‟s fastest,
cheapest networks.
E-marketers must analyze the relationship between Web site design and customer‟s connection
speeds.
Many feel the dial-up era is quickly coming to an end
Online companies with a diverse customer base must keep their Web sites simple
E-marketer’s must understand how connection speeds influence download rates E-marketers and
graphic designers must differentiate between what “can” be done and what “should” be done.
Wireless Internet Access –
Countries with emerging economies are often market leaders in cellular technology
At the end of 2019, there were 5.25-6.0 billion mobile phone subscriptions worldwide.
Cell phone technology is relatively inexpensive and effective
Two-thirds of the world are now connected via mobile phones.
Challenges of wireless e-marketing:
Modification of website content for small screens
Text entry using tiny keypads
Content development
Pricing and easy and secure payments
Differences in consumer behavior with the mobile Internet
Example text messaging.
The Digital Divide
E-marketers must consider the social environment in which e-business operates.
Least Developed Countries (LDC)
world’s poorest economies.
Economically underdeveloped.

l Economy – haves and have-nots.
.
es exist side by side in an LDC.
Digital divide: Is that between countries and between different groups of people within
countries, there is a wide division between those who have real access to information and
communications technology and are using it effectively, and those who don’t”
The digital divide raises challenging questions for global policy, international business, and
entrepreneurship.
The World Wide Web is not really worldwide
Ethical and Legal Issues – Privacy – Digital Property – Online Expression – Cyber Security
–Cyber Crime.
Ethics is also a general endeavor that takes into account the concerns and values of society as a
whole.
Documents such as the American Marketing Association’s (AMA) Statement of Ethics1 (also
referred to as the “AMA Code of Ethics”) reflect the recognition of a commitment to the exercise
of honesty, responsibility, transparency, respect, citizenship, and fairness within all professional
transactions. In addition to articulating
overall values, professional codes provide members with guidelines that are specific to their
pursuits.
Ethical and Legal Issues –
Ethics and law are closely related. Ethics concerns the analysis of what is right and wrong and how
we judge the differences.
Modern technology presents a challenge to marketing ethics. Critical issues include:
 Ownership of intellectual property.
 Freedom of expression.
 Use of data and its collection.
 Status of children and digital network.
Privacy
The concept of privacy has both ethical and legal aspects.
There is legal confusion regarding privacy.
No specific privacy provision within the U.S. Constitution.
Privacy has been addressed in the common law of the courts.
Within society, privacy interests compete with concerns for safety, economics, and need for
association with others.
Privacy Within Digital Contexts

AMA Code of Ethics for Marketing on the Internet: “information collected from customers
should be confidential and used only for expressed purposes.”

Online advertising firms such as Double-Click, have traditionally recorded users‟ click streams
to form user profiles for marketing purposes.
Digital Property
The law protects intangible or intellectual property through 3 basic mechanisms
• Copyright
• Patent law
• Trademark
Online Expression
• Freedom of expression is protected by the First Amendment.
• Internet technology has resulted in what many consider inappropriate or untargeted types of
consumer contact.
– Spam is the mass distribution of unsolicited electronic mail.
• CAN-SPAM Act creates a framework for email marketing.
• Expression directed to children remains a highly visible issue within online law and ethics.
Cyber Crime
Crime committed using a computer and the internet to steal data or information.
Illegal imports.
Malicious programs.
Types of cyber crime
• Hacking.
• Denial of service attack .
• Virus Dissemination.
• Computer Vandalism.
• Cyber Terrorism.
• Software Piracy.
Cyber Security –
• Internet security is a branch of computer security specifically related to the Internet.
It's objective is to establish rules and measure to use against attacks over the Internet.
Advantages of cyber security
• Defend us from critical attacks.

• Browse the safe website.
Internet security process all the incoming and outgoing data on our computer
Unit 3: (8 Hours)
E-Marketing Research: Data Drive Strategy – Marketing Knowledge Management – Monitoring
Social Media – Technology-Enabled Approaches – Real-Space Approaches – Marketing
Databases and Data Warehouses – Data Analysis and Distribution – Knowledge Management
Metrics - Consumer Behaviour Online – Segmentation – Targeting – Differentiation –
Positioning Strategies.
Data Drive Strategy

Organizations are drowning in data.
E-marketers must determine how to glean insights from billions of bytes of data.
Marketing insight occurs somewhere between information and knowledge.
Nestle‟s Purina Pet care, for example, sorts through hundreds of millions of pieces of data about 21.5
million consumers to make decisions
Data is the lubricant for a learning organization, and organizations are drowning in it.
This is an information technology manager’s problem, and e-marketers must determine how to
glean insights from these billions of bytes.
Marketing insight occurs somewhere between information and knowledge:
enablers.

Marketing Knowledge Management
Knowledge management = Process of managing the creation, use, and dissemination of
knowledge.
Data, information, and knowledge are shared with internal marketing decision makers, partners,
distribution channel members, and sometimes customers, When other stakeholders can access
selected knowledge, The firm becomes a learning organization, The firm is better able to reach
desired ROI and other performance goals.
Marketing knowledge the digitized ‘group mind’ , ‘collective memory’ of the marketing
personnel and sometimes of consultants, partners, and former employees. Sometimes the
knowledge management technology even allows marketing staff to chat in real time for problem
solving, which is why the system also includes contact information.
The Electronic Marketing Information System
A marketing information system (MIS) is the process by which marketers manage knowledge.
The MIS is a system of assessing information needs, gathering information, analyzing it, and
disseminating it to marketing decision makers. The process begins when marketing managers
have a problem that requires data to solve.
The next step is to gather the data from internal sources and from secondary sources, or by
conducting primary marketing research. The process is complete when these managers receive
the needed information in a timely manner and usable form.

Monitoring Social Media:
Awareness / Exposure metrics:

• Unique visitors measures the number of visitors—without repetition— who access a site,
application, video, or other social media content within a specific period of time. Unique visitors
is measured by user registration, cookie files, or by a third-party measurement service such as
Nielsen or comScore. Unique visitors additionally are
categorized as either new or repeat visitors. Search engines also visit these sites, so companies
must filter out visits from automated “bots.” Video views on You- Tube are visible for all to see
under the video itself.
• Page views refers to single pages that are viewed on a social media site. For example, one
unique visitor can view many different blog entries on one blog site. Obviously, the more pages
users view, the longer they are on the site learning about the brand. • Impressions refers to the
number of times an ad loads on a user’s screen. Marketers
use this popular metric for all Web properties.
• Number of searches measures the number of times users search for the brand, company, or
associated key words selected by the organization while typing the key words in a search engine.
• Search engine ranking evaluates where the organization’s social media content appears in the
search engine results pages for desired key words. For instance, if a user types in the name of the
company, brands, or executives,
ideally the links will appear in the first 10 links/page one of the results page.
• Number of followers, registrations, or subscribers to the blog, social network page, video
channel, or other content. These are also used to measure earned media engagement.
Brand Health Metrics
In this category, companies want to measure the influence their brand and communications have
on consumers. Brand health refers to the amount of conversation and what proportion of the
sentiment is positive or negative—and more. Measures in this area include the following:
• Share of voice (SOV) is the proportion of online conversations about one brand versus its
competitors. In the offline world, SOV measures the weight of advertising space in traditional
media, but in the social media, it usually is only measured by conversation. For example,
iStrategy Labs found the SOV for shoe brands over a one month
period in 2009: Nike (57%), Adidas (22%), Converse (15%), New Balance (4%) and Under
Armour (2%) (“Social
Media Share . . . ,” 2009).
• Sentiment refers to the proportion of online conversation about a brand that is positive,
negative, or neutral. On August 11, 2012, we typed “Nike” into the social media search box at
socialmention.com and got the following results (number of mentions): positive (116), neutral
(409), and negative (27). The site calculated brand strength at 27 percent due to a 4:1 positive to
negative conversation. This site reviews conversation “across the universe”
of over 100 social media properties and also measures SOV.
• Brand influence can include a number of other metrics, including number of inbound links to a
social media property, number of Twitter links that are retweeted, number of comments on posts,
and number of times
content is shared or linked (Jones, 2011).
Engagement Metrics
There are many ways to engage social media users, as discussed in later chapters. Engagement
metrics are endless, and the ones companies select depend on the specific content, promotion, or
other communication tactics. Following are some of the most common measures, relating to the
depth of engagement: • Content viewership refers to the number of visitors who consume

content, such as by reading a blog (page views), watching videos or listening to podcasts, and
downloading white papers.
• Tagging, bookmarking, or “likes” for content can be counted.
• Membership/Follower metrics count the number of RSS (Really Simple Syndication)
subscribers, members in a community, such as a LinkedIn or Meetup.com group, or number of
followers on Twitter.
• Number of shares measures how many times viral content is shared with others. • Content
creation counts the number of visitors who upload ads for a contest, such as the Frito Lay Super
Bowl promotion. Companies can also measure the number of visitors who rate or review
products, write comments on blogs or videos, or also retweet and other content-related items
measured in previous categories.
Action Metrics
Although engagement metrics demonstrate actions taken by users, this category steps it up to a
higher level of action (closer to purchase): • Click-through to an advertiser’s site. This is
measured by the proportion of all people
who are exposed to a communication message and those who click to visit the site.
• Contact form completion or registration, allowing the company to add the person to their
database of names, e-mail addresses, and more.
• Event attendance online or offline, based on a social media promotion for a Webinar or other
event.
• Purchase is the ultimate goal for company marketers. Companies measure conversion rates
(proportion of all site visitors who purchase), number of purchases, average order value, and
many other metrics that evaluate
Innovation Metrics
In this category, companies want to know if their social media communications are driving
customers to comment and review in ways that help the company improve its products and
services. Many of these metrics are also included in other categories, but we single innovation
out because it is a very high level of brand engagement and
builds customer loyalty. A few measures include the following:
• Number of ideas shared in a company’s social media site (such as My Starbucks Idea).
• Trend spotting helps companies know what is hot in their target markets. Google Trends
displays “hot” search key words and allows users to search trends. Trendsmap displays real-time
Twitter trends worldwide, and many blogs
and other sites provide word cloud displays of the most popular words in posts. Many other
companies report social media trends.
Measurement tools:
Anyone can use this tool by entering the topic for monitoring and desired sources (video, blogs,
news, or discussions), and Google will send e-mails based on the selected criteria at the
requested frequency (as it happens,
daily, weekly). Companies monitor their names, brand names, executive names, and tag lines or
slogans in advertising campaigns. Google also provides free Web site or blog analytics to
measure the awareness metrics, such

as page views and action level click-throughs (Google Analytics). Beyond that are complex
dashboards, such
as those provided for a fee by Alterian, Sysomos, Radian6, TrackUR, and many more. To view
many dashboard samples, simply type “social media dashboard” into a Google image search
Technology-Enabled Approaches
The internet is an excellent place to observe user behavior because the technology automatically
records actions in a format that can be easily, quickly, and mathematically manipulated for
analysis.
Client-Side Data Collection
Client-side data collection refers to collecting information about consumer click behavior right
at the user’s PC. One approach is to use cookies when a user visits a Web site.
Some cookies help marketers present appropriate promotions and Web pages to individual users
using database information. One important client-side data-collection method involves
measuring user patterns by installing a PC meter on the computers of a panel of users and
tracking the user clickstream. This approach is similar to the ACNielsen “people meter” used on
TV sets to determine ratings for various programs.
Server-Side Data Collection
Web analytics uses site log software to generate reports on numbers of users who view each
page, the location of the site visited prior to the firm’s site, and what users buy at a site—
fundamental elements in server-side data collection. For example, because of its online
registration requirement, Expedia can track visitors’ ticket purchases, browsing patterns, and
how often they visit the site. It uses this information to send special offers to customers as well
as to offer services such as the fare watcher. Amazon.com, through collaborative filtering
software, keeps track of books ordered by customers and makes recommendations based on
customers’ trends in its database.
Real-time profiling occurs when special software tracks a user’s movements through a Web
site, and then compiles and reports on the data at a moment’s notice. Also known as “tracking
user clickstream in real time,” this approach allows marketers to analyze consumer online
behavior and make instantaneous adjustments to a site’s promotional offers and Web pages.
Real-Space Approaches
Real-space primary data collection refers to technology- enabled approaches to gather
information offline that is subsequently stored and used in marketing databases. The most
important real-space techniques are bar code scanners and credit card terminals at brick-and-
mortar retail stores, although computer entry by customer service reps while talking on the
telephone with customers might also be included here.
Smart card and credit card readers, interactive point of sale (iPOS) machines, and bar code
scanners are mechanisms for collecting real-space consumer data. Even though the UPC, also
known as the bar code.

Marketing Databases and Data Warehouses
Product databases hold information about product features, prices, and inventory levels; customer databases
hold information about customer characteristics and behavior. Transaction processing databases are periodically
copied into a data warehouse.
Data warehouses are repositories for the entire organization’s historical data (not just marketing
data). They are designed specifically to support analyses necessary for decision making.
Sometimes the data in a warehouse are
separated into more specific subject areas (called data marts) and indexed for easy use.
The current trend in data storage is toward cloud computing: a network of online Web servers in
remote locations from the company, used to store and manage data.
iCloud for storing all the data on an Apple device (photos, contacts, calendar, and so forth) and
retrieving it on any Apple phone, computer, or tablet. Dropbox.com is another great application
for individuals who want to store data on a server and have it automatically synch to any
computer.

Data Analysis and Distribution
Data collected from all customer touch points are stored in the data warehouse or cloud
knowledge management system, ready for analysis and distribution to marketing decision
makers. Four important types of analysis for marketing decision making include data mining,
customer profiling, RFM analysis (recency, frequency, monetary value), and report generating.
Data mining involves the extraction of hidden predictive information in large databases through
statistical analysis.
Customer profiling uses data warehouse information to help marketers understand the
characteristics and behavior of specific target groups. Through this process, marketers can really
understand who buys particular products
and how they react to promotional offers and pricing changes. Some additional uses of customer
profiling include the following:
• Selecting target groups for promotional appeals.
• Discovering the best way to engage customers in social media.
• Finding and keeping customers with a higher lifetime value to the firm.
• Understanding the important characteristics of heavy product users.
• Directing cross-selling activities to appropriate customers.
• Reducing direct-mailing costs by targeting high-response customers.
Sometimes the predictive nature of data mining can cross the line of invasion of privacy.

RFM analysis scans the database for three criteria. First, when did the customer last purchase
(recency)? Second, how often has the customer purchased products (frequency)? Third, how
much has the customer spent on product purchases (monetary value)? This process allows firms
to target offers to the customers who are most responsive, saving promotional costs, and
increasing sales.
Report generators, on the other hand, automatically create easy to- read, high-quality reports
from data warehouse or cloud information on a regular basis. These reports may be placed in the
marketing knowledge database on an intranet or extranet for all to access. Marketers can specify
the particular information that should appear in these automatic reports and the time intervals for
distribution, as in the earlier example of a retailer that sends online weekly sales reports to all its
managers.
Knowledge Management Metrics
ROI. Companies want to know why they should save all those data. How will they be used, and
will the benefits in additional revenues or lowered costs return an acceptable rate on the storage
space investment? For hardware storage space (either on site or in the cloud), ROI usually means
total cost savings divided by total cost of the installation (Gruener, 2001). Notably, companies
use ROI to justify the value of other knowledge management systems as well.
Total Cost of Ownership (TCO). Largely a metric used by information technology managers,
TCO includes not only the cost of hardware, software, and labor for data storage but also other
items such as cost savings by reducing Web server downtime and labor requirements.
Consumer Behavior Online
1. Consumers experience all or many of the buying process steps: need identification,
information search, alternative evaluation, purchase and post purchase activities.
2. Consumers also go through a hierarchy of effects model—from first becoming aware of the
product or brand, then developing an attitude as positive or negative, and possibly concluding
with some behavior, such as registering online or purchasing the product.
3. Marketers often use an AIDA model to entice buyers: attention, interest, desire, and action.
Japan’s top ad agency, Dentsu, Inc., modified this model in 2004 for the social media
environment by replacing “desire” with “search” and adding “share” with others: attention,
interest, search, action, and share (see dentsu.com).
4. Word of mouth has been used forever when people share their product experiences with
friends and family; however, an online share can quickly reach the entire connected world: word
of mouth on steroids!
These processes vary based on whether the purchase situation is high or low involvement
(amount of social, financial, and self-esteem risk). This also holds true for both online and offline
buying situations.

Dr. Marsden connects this basic theory with social media consumer behavior and social shopping
marketing tactics, such as (1) ads placed in social media, (2) product ratings and reviews
online (such as Amazon or ePinions), (3) recommendations and referrals (such as on
Facebook), (4) social shopping (when online friends become involved in the shopping
process), (5) forums and communities (such as brand discussions on Google Groups or on
an online travel site), and (6) social media optimization— a component of search engine
optimization that uses an optimal variety of social media sites for building awareness of a
product, brand, event, or Web site.
 Pages visited
 Amount of time spent on each page
 Links clicked
 Searches performed
 Components with which they interact
Segmentation and Targeting
Marketing segmentation is the process of aggregating individuals or businesses along similar
characteristics that pertain to the use, consumption, or benefits of a product or service. The result
of market segmentation is groups of customers called market segments.
Market targeting is the process of selecting the market segments that are most attractive to the
company. Some criteria companies use to select segments for targeting include accessibility,
profitability, and growth potential.
Market Segmentation Bases and Variables
Companies often combine bases and focus on categories such as geodemographics (geography
and demographics).

Important Geographic Segments for E-Marketing
Global Facebook and Search Engine Adoption
Languages on Web Pages English has not been the language of most Web pages and online
bulletin boards for many years, yet it has seen a slight increase in the past two years. In 2011, the
top internet languages included English (33 percent), Chinese (29 percent), Spanish (9 percent),
Japanese (6 percent), and Portuguese (5 percent).
Local Marketing Finally, local marketing efforts work well online, thanks to Google and Yahoo!
local searches and company review sites, such as Yelp and Foursquare. Small companies, such
as the local physician or car repair shop, can be listed in these searches even if they don’t have
Web sites. Google offers amazing applications for smartphones.

Demographic Segments
Millennials In the United States, 60 million people born between 1979 and 1994 are coming of
age in the twenty-first century. More than 95 percent use the internet—nearly 10 percent over the
national average.
Kids The under 11-year-old segment jumped to
20.2 million in 2011 and is expected to increase to over 25 million in 2015, according to
eMarketer. The biggest activity for these kids is online video watching (62 percent in 2012).
They also play games online. These kids often know their way around the computer, cell phone,
or other internet-connected device before they learn to read or ride a bike. The number of kids
under the age of 17 online is increasing. What do kids between 12 and 17 do online?
According to Forrester Research, Inc., boys play 6.1 hours of video games a week. As well, 41
percent of girls and 32 percent of boys post on a social networking site every day
Psychographic Segments : User psychographics include personality, values, lifestyle, activities,
interests, and opinions (AIO). Personality characteristics are traits such as other oriented versus
self-oriented and habits such as
procrastination. Values are deeply held convictions.
such as religious and green environment beliefs. Lifestyles and activities as psychographics refer
to nonproduct-specific behavior such as playing sports, writing product reviews online, or eating
out. For example, users say that their internet time takes time away from these other activities:
reading (39 percent), sleeping (23 percent), socializing (14 percent), and working (12 percent)
(intelliquest. com). Interests and opinions are attitudes and beliefs people hold. As an example,
some people believe that Facebook is a waste of time, and others think they could not exist
without e-mail.
Interest Communities The internet is ideal for gathering people from all corners of the globe
into communities with similar interests and tasks. Social media and other online communities
attract users, who then post their comments and profiles and upload content for others to see—
sometimes paying a subscription price for the benefit. Communities can form around social
media or other Web sites and forums, or via e-mails to the entire group membership.

Behavior Segments
Two commonly used behavioral segmentation variables are benefits sought and product usage.
Us age Segments Marketers also segment internet users according to many technology-use
characteristics such as smartphone, tablet, or PC access and which browser they use.

Online Engagement Level :
introduced the concept of customer engagement online—the idea that many users actively
participate by adding content for others to view.

Industry-Specific Usage Segments
Segmenting by usage varies widely from one industry or business type to the other. For example,
research from Forrester and comScore indicates that visitors to car sites behave differently from
visitors to other e-commerce sites (see forrester.com and comscore.com).

Targeting Online Customers
Niche marketing occurs when a company selects one segment and develops one or more
marketing mixes to meet the needs of that segment. Amazon adopted this strategy when it
targeted Web users exclusively.
Micromarketing, also known as individualized targeting, occurs when a company tailors all or
part of its marketing mix to a small number of people.
Differentiation Online
What do marketers do with all these extensive target market profiles? Prior to designing any
marketing mix strategies, the company makes differentiation and positioning decisions based on
target market needs and competitive offerings.
A company can differentiate its offering along many dimensions. The following are just a few online examples:

• Product innovation. Pinterest was a brand new concept online: saving images online and
creating an online bulletin board, called a “pinboard.” See the “Let’s Get Technical” box about
Apple’s iPod/iPad for another product differentiation by innovation example.
• Mass customization. Blue Nile has very different features compared to other similar jewelry
sites because visitors can customize diamond rings and other jewelry online.
• Service differentiation. Amazon.com excels in customer service. It is part of the company’s
mission and it delivers.Amazon received over 80 percent positive reviews for its customer
service in the 2011 MSN Money-Zogby customer service survey, giving it the top 10 company
Hall of Fame status (Aho, 2011).
• Customer relationship management
(CRM). CRM is closely related to service differentiation and involves gaining a 360-degree view
of the customer through many different touch points. For example, the Golden State Warriors
basketball team used social media to
introduce a new logo and branding and this resulted in a huge increase in its Facebook fans,
Twitter followers, and the honor of winning a Gartner and 1to1 Media 2011 CRM Excellence
Award (see gartner.com).
• Personnel differentiation. Zappos.com also excels with customer service because of its
employees (see the Zappos opening story in.
• Channel differentiation. Netflix and Hulu differentiate by offering streaming television
programming and movies to internet-connected devices, such as televisions, tablets, computers,
and smartphones. This digital
channel created a competitive advantage for these companies when disrupting the conventional
television distribution model.
• Image differentiation. Google versus AOL for search: Need we say more? • Site atmospherics.
This involves a Web or social media page that is user-friendly, provides appropriate content, and
has a great visual design. Companies can differentiate their sites through graphic design,
typography, scaling for smartphone/smallscreen
viewing, social media integration (e.g., log in with Facebook), and advanced technology behind
the sites. For example, The Webby Awards have been in existence since 1996 to honor the
leading international internet sites in many categories.
User-Generated Content (UGC). A company can differentiate by using effective crowdsourcing
to generate content or simply by providing an active online space for users to post comments and
ideas Starbucks.com did an excellent job with My Starbucks Idea, inviting customers to propose
new products, experience, and service or store improvements and vote for the best ideas on a
dedicated Web page. • Efficient and timely order processing.
Some companies excel at this in their industries.
Online Positioning Bases
Positioning is a strategy to create a desired image for a company and its products in the minds of
a chosen user segment (consumers, business or government buyers, and so forth). The first step
in positioning is to determine the product category in which the brand competes.
E-marketers often position based on technology (the new iPad tablet or the smartphone with the
most apps), benefits (fastest product delivery from a Web site order), user category (Nick.com is
one of the most popular sites for kids), or competitive position (the Android is less expensive
than an iPhone). Some internet marketers position as an integrator: TheKnot. com offers
everything to do with weddings, from gift registry to wedding planners and other consultants.

……………………………
1.Geographic location.
Product distribution strategy is a driving force behind geographic segmentation.
Countries may be segmented based on Internet usage.
U.S. has 186 million users.
China has 95.6 million users.
Japan has 77.9 million users.
Geographic markets may also be evaluated by infrastructure variables.
Language spoken may also be a variable.
2. Demographics.
3. Psychographics.
4. Behavior with regard to the product.
Companies can combines bases, such as geodemographics (geography and demographics).
Targeting Online Customers: E-marketers may select from among 4 different approaches for a
targeting strategy.
Mass marketing or undifferentiated targeting
Multisegment marketing
Niche marketing
Micromarketing
The Internet‟s big promise is individualized targeting.
Kotler defines differentiation as the process of adding meaningful and valued differences to
distinguish the product from the competition.

Differentiation strategies are particularly important on the Internet.
Internet marketing strategy revolves around company image and product information available
on the Web.
Specific strategies may include:
Being the first to enter the market.
Owning a product attribute or quality in the mind of the consumer.
Demonstrating product leadership.
Utilizing an impressive company history or heritage.
Supporting and demonstrating the differentiating idea.

Communicating the difference.
Amazon.com and Monster.com have successfully differentiated themselves
Internet-Specific Differentiation Strategies
There are 6 differentiation strategies unique to online businesses.
1. Site Environment/Atmospherics
Easy downloads; easy navigation.
2. Making the Intangible Tangible
Virtual tours, 3-D images, trial downloads.
3. Build Trust
Strong brand recognition.
Privacy policy.
4. Efficient and Timely Order Processing
Deliver timeliness as an important benefit.
5. Pricing
In the early days of the Web, companies offered discounts as purchase incentives.
Majority of firms today differentiate themselves in other ways besides pricing.
6. Customer Relationship Management
Managing long term relationships with customers.
Positioning is the process of creating a desired image among its competitors in the public‟s mind.
The e-marketer‟s goals is to build a position on one or more bases that are relevant and important to
the consumer.
Bases and Strategies for Positioning
Product or service attribute-May include features such as size, color, speed, etc
High-tech image-Shows that a firm is on the cutting edge of technology.
Benefits-Benefit positioning is generally a stronger basis for positioning, because it answers the
consumer question: What will this do for me?
User categories-User category positioning relies on customer segments
Comparison with competitors-Many firms position by benefits that provide advantages over their
competitors.
Integrator position-We can expect to see more integrator positioning in the lending, jewelry and
hospitality industries.

Unit 4: (10 Hours)
E-Marketing Management: Product – Products on Internet – Creating Customer Value
Online– Product Benefits – E-Marketing Enhanced Product Development – Price – Change
in Pricing Strategies – Buyer and Seller Perspectives – Payment Options – Pricing
Strategies – Distribution– Online Channel Intermediaries – Distribution Channel Length
and Functions – Channel Management and Power – Distribution Channel Metrics –
Promotion – Integrated Marketing Communication (IMC) – Internet Advertising –
Marketing Public Relations – Sales Promotion Offers – Direct Marketing – Personal
Selling – IMC Metrics.
Product – Products on Internet
A product is a bundle of benefits that satisfies the needs of organizations or consumers and for
which they are willing to exchange money or other items of value. The term product includes
items such as tangible goods, services, ideas, people, and places.
Some new products such as search engines, smartphone apps, and social networks are unique to
the internet, others such as music simply use the internet as a distribution channel, and some use
the internet as an electronic storefront.
Products on Internet
Products to sell online change everyday because there is massive competition. Major companies and
very intelligent individuals are constantly monitoring the market waiting to capitalize on that next
niche product that is in high demand and low supply.

Amazon is an empire. They serve some key information right up to anybody who would like to
utilize it. Figure out the niche market you are attempting to penetrate and then sort the items by best
sellers.
Creating Customer Value Online– Product Benefits
Customer value = benefits – costs
Value is the entire product experience
Value is defined wholly by the mental beliefs and attitudes held by customers
Value involves customer expectations

Value is applied at all price levels
Internet can increase benefits and lower costs but it can also work in reverse.
PRODUCT BENEFITS
The Internet created a new set of consumer desired benefits. Users expect:
effective web navigation,
quick download speeds,
clear site organization,
attractive and useful site design,
secure transactions,
privacy,
free information or services, and
user-friendly Web browsing and e-mail reading.
Product decisions must be made that deliver benefits to customers.
Attributes
Branding
Support Services
Labeling
Packaging
Attributes include overall quality and specific features.
Product features can include color, taste, style, size, and speed of service.
Benefits also are the same features from a user perspective (e.g. Myspace)
The Internet increases customer benefits in ways that have revolutionized marketing.
Media, music, software, and other digital products can be presented on the Web.
Mass customization is possible for tangible & intangible products
User personalization of the shopping experience can be achieved.
Brand includes a name, symbol, or other identifying information.
When a firm registers the information with the U.S. Patent Office, it becomes a trademark.


A trademarkis either a word, phrase, symbol or design, or combination of words, phrases,
symbols or designs, that identifies and distinguishes the source of the goods or services of one party
from those of others.
A brand is a way for companies to differentiate themselves from competitors. A brand is an
individual‟s “perception of an integrated bundle of information and experiences that distinguishes a
company and / or its product offerings from the competition”
A brand represents a promise or value proposition to its customers.
Support Services
Customer support is a critical component in the value proposition.
Click-and-brick organization‟s combine online and offline service to maximize the customer
experience and minimize downtime and frustrations.
Customer service reps help customers with installation, maintenance, product guarantees, service
warranties, etc. to increase customer satisfaction.
Customer service is an important part of customer relationship management (CRM)
CompUSA, Inc. combines online and offline channels to increase customer support.
E-Marketing Enhanced Product Development –
E-Marketing-Enhanced Product Development:
Customer Co design via Crowdsourcing –
Internet Properties Spawn Other Opportunities
The internet’s unique properties, generated unusual new products and companies. Location-
based services (LBS) are one such example. Global positioning devices (GPS) in
smartphones and other mobile online devices track user locations and send to friends via
“check-ins” while at restaurants, retailers, and many other locations. This has created many
marketing opportunities.

New-Product Strategies for E-Marketing Many new products, such as YouTube, Yahoo!,
and Twitter.com, were introduced by “one-pony” firms, built around the company’s first
successful product. Other organizations, such as Microsoft, added internet products to an
already successful product mix (e.g., the Internet Explorer Web browser). This section explores
product mix strategies to aid marketers in integrating offline and online offerings.
Product Mix Strategies
Discontinuous Innovations : These are new-to-the-world products never seen before.
New-Product Lines :These are introduced when companies take an existing brand name and
create new products in a completely different category.
Additions to Existing Product Lines : This occurs when organizations add a new flavor, size,
or other variation to a current product line.
Improvements or Revisions of Existing Products : These products are introduced as “new and
improved” and, thus, replace the old product. For example, Web-based e-mail systems improved
on client-based e-mail systems such as Eudora or Outlook because users could check and send e-
mail from any Web-connected computer.
Repositioned Products : These are current products that are either targeted to different markets
or promoted for new uses.
Price – Change in Pricing Strategies
Price is the amount of money charged for a product or service. More broadly, price is the sum of
all the values (such as money, time, energy, and psychic cost) that buyers exchange for the
benefits of having o r using a good or service.an era of dynamic pricing—varying prices for
individuals.
Pricing Strategies –
Price setting is full of contradictions:
Short term: If the price is too low profits will suffer/ if it is too high sales decline.
In the long run: an initial low price that builds market share can create economies of scale to lower
costs + increase profits.
Fixed pricing (also called menu pricing):
Sellers set the price and buyers take it or leave it = same price for everyone.
This is the model most brick-and-mortar retailers use.
Two common fixed pricing strategies used online.
Dynamic Pricing: The strategy of offering different prices to different customers.
To optimize inventory management,
To segment customers by product use or other variables.
Airlines have long used dynamic pricing software to price air travel.
Segmented Pricing: Uses the Internet properties for mass customization, automatically devising
pricing based on order size and timing, demand and supply levels, and other preset decision factors.
The firm uses decision rules to set pricing levels for segments of customers according to customer
behavior.
Is easier online at the individual level because sophisticated software permits firms to set rules and
make price changes.

Buyer and Seller Perspectives: The meaning of price depends on the viewpoint of the buyer
and the seller. Each party to the exchange brings different needs and objectives that help describe
a fair price. In the end, both parties must agree or no sale takes place.
savings:
• The internet is convenient. It is open 24/7 so that users can research, shop, consume
entertainment, or otherwise use the Web’s offerings anytime, anywhere, and on any stationary or
mobile receiving appliance.
E-mail allows asynchronous communication among buyers and sellers at any location and
prevents “telephone tag” (both parties need not be online simultaneously to communicate).
Shopping bots (automated chat and animated help programs on Web sites) provide synchronous
help as a customer is shopping online. • The internet is fast. Although it might take more time to
download a Web page than the few remaining dial-up users would like, anyone can visit a site
such as iGo. com, order a laptop battery, and receive it the following day—even while on a
foreign business trip.
• Self-service saves time. Customers can track shipments, pay bills, trade securities, check
account balances, and handle many other activities without waiting for sales reps. In addition,
technology allows users to request product information at Web sites and receive it immediately.
Of course, all these activities take time to perform.
• One-stop shopping saves time. The internet opened the door for companies to increase
customer convenience through one-stop shopping. AutoMall Online has partnered with a number
of firms to provide automobile price comparisons, research about various models and
manufacturers, financing and insurance information, and service
options. This firm also offers instant online pricing from a large network of auto dealerships and
gives customers a purchase certificate guaranteeing that the price quote will be honored at the
dealership. AutoMall Online’s track record proves that customers receive value: More than 50
percent of its users purchase a car within 45 days
of using the service, and 90 percent do so within six months.
• Integration saves time. Web portals such as Yahoo! and Google Mobile allow users to quickly
find many things they want online from any device. Even Pinterest could now be considered a
Web portal. Some sites allow users to create individualized Web pages with news, stock quotes,
weather, and other customized information. For example, one consumer purchased a unique
backpack online only to find out, via e-mail, that the firm was out of business.
.Automation saves energy.
Buyer Control: The shift in power from seller to buyer affects many e-marketing strategies,
including pricing. For instance, in what is known as a reverse auction, buyers set prices for
products, and sellers decide whether to accept these prices. A good example is Priceline.com,
where you name the price you want to pay for hotels, flights, cars, vacations, and cruises.
Seller View
Sellers view price as the amount of money they receive from buyers, unless they are making a
barter exchange. Seller costs for producing the good or service represent the pricing floor, under
which no profit is made.
Internal Factors: Pricing Objectives

Marketers begin by setting overall pricing objectives from among those that are profit oriented,
market oriented, or competition oriented.
Payment options:
Electronic money, also called e-money or digital cash, is a system that uses the internet and
computers to exchange payments electronically.
Payment by smart chip. MZOOP, created by Harex InfoTech in South Korea, is a chip inserted
in a cell phone that can be pointed at a vending machine or other point of purchase reader for
purchasing items. The transaction is charged to the owner’s debit or credit bank card.
Mobile wallets: Google recently introduced a mobile wallet application that stores all credit
cards in the mobile phone. Owners simply swipe the phone at participating retailers and can
remotely disable the function from the Web if the phone is lost.
Distribution– Online Channel Intermediaries – Distribution Channel Length and
Functions – Channel Management and Power – Distribution Channel Metrics.
Distribution: A distribution channel is a group of interdependent firms that work together to
transfer product and information from the supplier to the consumer. It is composed of the
following participants:

• Producers: Manufacturers and their suppliers, or originators of the product or service. •
Intermediaries: Firms that match buyers and sellers and mediate the transactions among them
(e.g., wholesalers and retailers).
• Buyers: Consumers or users of the product or service.
Four major elements combine to form a company’s channel structure, and all affect internet
marketing strategy as shown in the sections that follow:
1. Types of online channel intermediaries.
2. Length of the online channel.
3. Functions performed by members of the
channel.
4. Physical and informational systems that link the channel members and provide for
coordination and management of their collective effort to deliver the product or service.
Online Channel Intermediaries
A good way to understand online intermediaries is according to their business models. Many e- business models
have new names.
• Wholesalers buy products from the manufacturer and resell them to retailers. • Both brick-and-
mortar and online retailers buy products from manufacturers or wholesalers and sell them to
consumers.
• Brokers facilitate transactions between buyers and sellers without representing either party.
They are market makers and typically do not take title to the goods.

• Agents usually represent either the buyer or seller, depending upon who hires and pays them.
They facilitate transactions between buyers and sellers but do not take title to the goods.
Manufacturer’s agents
represent the seller, whereas purchasing agents represent the buyer.
Content Sponsorship: Companies create Web sites, attract a lot of traffic, and sell advertising.
Infomediary
An infomediary is an online organization that aggregates and distributes information, acting
as a personal agent for Web users. One form of infomediary is a market research firm.
Intermediary Models
Three main intermediary models are in common use on the internet: brokerage models, agent
models, and online retailing.
Brokerage Models : The broker creates a market in which buyers and sellers negotiate and
complete transactions. Brokers typically charge the seller and/or buyer a transaction fee, but they
don’t represent either party for providing
exchange and negotiation services.
On l i ne E x c h ange E*TRADE, Ameritrade, Schwab, and a host of other online brokerages
allow customers to place equity and other trades from their computers without phoning or
visiting a broker.
Online Auction: Auctions are available in the B2B (uBid.com), B2C (priceline.com), and C2C
(eBay.com) markets. Even though some merchants choose to host their own auctions, many
more auction their surplus through auction brokers such as uBid.
Agent Models Unlike brokers, agents do represent either the buyer or the seller, depending on
who pays their fee. In some cases, they are legally obligated to represent the interests of the party
that hires them

M-Commerce Mobile commerce (m-commerce) occurs when consumers make a transaction
with a smartphone or other mobile device (e.g., iPhone, iPad, Android). M-commerce is a subset
of e-commerce.
Social Commerce Social commerce is a piece of e-commerce that uses social media and
consumer interactions to facilitate online sales.
F-commerce (Facebook commerce) is a subset of social commerce, where companies use
Facebook to facilitate e-commerce. Because of Facebook’s huge number of users and activity,
many companies have attempted to sell products on the network.
Distribution Channel Length and Functions
The length of a distribution channel refers to the number of intermediaries between the supplier
and the consumer.
Most distribution channels incorporate one or more intermediaries in an indirect distribution
channel. A typical indirect channel includes suppliers, a manufacturer, wholesalers, retailers,
and end consumers. Intermediaries help to perform important functions.
Disintermediation describes the process of eliminating traditional intermediaries. Eliminating
intermediaries

Functions of a Distribution Channel –
Transactional functions refer to making contact with buyers and using marketing
communication strategies to make buyers aware of products. They also include matching
products to buyer needs, negotiating price, and processing transactions.
 Contact with Buyers
 Marketing Communications
 Matching Product to Buyer’s Needs
 Negotiating Price
 Process Transactions.
Logistical Functions:
Logistical functions include physical distribution activities such as transportation and inventory
storage, as well as the function of aggregating product.
Third-party logistics provider such as UPS or FedEx. Taking logistics one step further, third
parties can also manage the company’s supply chain and provide value-added services such as
product configuration and subassembly. The logistics providers will even handle the order
processes, replenish stock when needed, and assign tracking numbers so customers can find their
orders.
Facilitating Functions performed by channel members include market research and financing.
Distribution System
The distribution channel is actually a system, when viewed by the flow of products, information,
and finances along the channel—a unified system of interdependent organizations working
together to build value as products proceed through the channel to the consumer.

Channel functions can be characterized as follows:
Transactional
Logistical
Facilitating
Transactional Functions include:
Making contact with buyers.

Marketing communication strategies.
Matching products to buyer needs.
Negotiating prices.
Processing transactions.
Logistical functions include physical distribution activities, such as:
Transportation
Inventory storage
Aggregation of products
Logistical functions are often outsourced to third-party specialists.
Outsourced Logistics
Third-party logistics providers can manage the supply chain and provide value-added services.
UPS
FedEx
United States Postal Service (USPS)
In the C2C market, eBay has formed a partnership with Mailboxes Etc.
Channel Management and Power
Once a channel structure is established, its viability requires a certain measure of coordination,
communication, and control to avoid conflict among its members. A powerful channel member
must emerge to assume the leadership
and institute these required measures.
Retailers have built power on the place (location), utility, and restricted access to manufacturers.
The internet neutralizes the importance of location and offers new sources of supply for
purchasing.
A type of business-to-business (B2B) commerce known as electronic data interchange (EDI) is
particularly effective for establishing structural relationships between businesses. Electronic data
interchange is the computerized exchange of information between organizations, typically used

to eliminate paperwork. EDI is based on three key variables: the openness of the system, the
transport method (internet or non internet), and the type of technology used for implementation.
Combining these variables in different ways results in many types of EDI most commonly used
today, such as Application Program Interface (API) and Extensible Markup Language (XML).
Distribution Channel Metrics:
B2C Market
U.S. consumers spent $136 billion online during 2007.
eMarketer concluded that e-commerce sales and influences on off-line sales accounted for 27%
of all retail sales in 2007.
Besides revenue, B2C metrics may include:
ROI.
Customer satisfaction levels.
Customer acquisition costs.

Conversion rates.
Average order values.
B2B Market
B2B e-commerce was estimated at $624 billion in 2004.
B2B metrics may include:
Time from order to delivery.
Order fill levels.
Other activities that reflect functions performed by channel participants.
Promotion – Integrated Marketing Communication (IMC)
Marketing communication (MarCom) tools that use technology to build brands, in conjunction
with value-added product experiences, are important in capturing attention and winning long-
term customer relationships.
Integrated marketing communication (IMC) is a cross-functional process for planning,
executing, and monitoring brand communications designed to profitably acquire, retain, and
grow customers. IMC is cross-functional because every touch point that a customer has with a
firm or its agents helps to form brand images. For example, a Home Depot retail customer
might buy and use a product from the Web site, then e-mail or call 1-800 to complain about
a problem, write about the problem on a product review site or on her Facebook wall, and
finally return the product to the brick-and-mortar retail store. Every contact with an
employee, a Web site, a blog comment about the product, a YouTube video, a magazine ad,
a mobile app, a catalog, the physical store facilities, and so forth helps the customer form an
image of the company.

IMC strategy begins with a thorough understanding of target markets, the brand, its competition,
and many other internal and external factors. The Interactive Advertising Bureau suggests a four-
step process, good for any marketing communication campaign:
1. Set clear and measurable objectives and strategies.
2. Understand your audience motivations and behavior, especially in social media.
3. Develop a creative approach appropriate for the brand in one or more platforms (earned, paid,
or owned media).
4. Define success metrics.
IMC Goals and Strategies
Mitsubishi Motors desired to sell more automobiles, so it identified marketing communication
goals of (1) driving prospects to the Web site,
(2) increasing Web site registrations,
(3) increasing test drive appointments. Sales were the primary goal, and the three
communications objectives helped Mitsubishi reach it.
The traditional AIDA model (awareness, interest, desire, and action) or the “think, feel, do”
hierarchy of effects model is part of what guides marketers’ selection of online and offline
MarCom tools to meet their goals
Following are examples of social media campaigns at each level, from awareness to behavior:
Product awareness,
Interest and Desire,
Behavior/Purchase.
Web Site Chat
One traditional IMC tool, personal selling, involves real-time conversation between a
salesperson and customer.

Internet Advertising:
All paid space on a Web site or in an e-mail is considered advertising. Internet advertising parallels
traditional media advertising, companies create content and then sell space to outside advertisers.
comScore suggests that online display ads improved online and offline sales and Web site visits
even if people didn’t click on the ads. This means that the online brand communication effects
increased sales in the absence of positive direct response metrics.
Marketing public relations (MPR) includes brand-related activities and nonpaid, third-party
media coverage to positively influence target markets. Thus, MPR is the marketing department’s
portion of PR directed to the firm’s customers and prospects in order to build awareness and
positive attitudes about its brands.
First, the Web is a low-cost alternative to paper brochures or press releases sent in overnight
mail. Second, product information is often updated in company databases, so Web page content
can be updated more easily. Finally, the Web can reach new prospects who are searching for
particular products (inbound marketing).
Microsites are Web sites designed for a narrow purpose, with only three to five pages. For
example, WillitBlend.com is a microsite containing only the Will it Blend videos. It also contains
many social media hooks (such as an RSS subscription button).
Activities that influence public opinion and create goodwill for an organization.
= Company shareholders & employees, the media, suppliers, the local community, consumers,
business buyers, and other stakeholder groups.
-related activities and non-paid, third-party media coverage to positively
influence target markets.
positive attitudes about its brands.
ring the week of the MTV Music Awards, MTV.comsite traffic increased by 48% as people
logged on to learn more about the stars nominated for awards.
community building, and online events.
Sales promotion Offers:
Sales promotions are popular display ad content. Sales promotion activities include coupons,
discounts, rebates, product sampling, contests, sweepstakes, and premiums (free or low-cost
gifts). Of these promotion types, only coupons, sampling, discounts, and contests/ sweepstakes
are widely used on the internet.
In 2004, Internet promotions = 70% of the worldwide $170 billion dollar promotional market (15%
in 1999).

Online sales promotion works = 3 to 5 times higher response rates than with direct mail.
Online tactics are directed primarily to consumers / most offline sales promotion tactics are directed
to businesses in the distribution channel.
Consumer sales promotions are used in combination with advertising.
Uses: banner ad + good for drawing users to a Web site, enticing them to stay, and compelling
them to return.
Results: build brands, build databases, and support increased online or offline sales.
Direct marketing:
Direct marketing: “Direct marketing is an interactive process of addressable communication
that uses one or more. . . media to effect, at any location, a measurable sale, lead, retail purchase,
or charitable donation, with this activity analyzed on a database for the development of ongoing
mutually beneficial relationships between marketers
and customers, prospects, or donors.
Response rate and ROI are the most appropriate metrics for any direct marketing campaign.
Additionally, many firms use direct tactics to build databases and measure success in terms of
customer information growth. E-mail marketers collect metrics on every mouse click, desiring to
know which offers pull best (A/B testing), which message content brings the greatest response,
when is the best time to send e-mail for maximum response
Direct marketing is “any direct communication to a consumer or business recipient that is designed
to generate a response in the form of an order (direct order), a request for further information (lead
generation), and/or a visit to a store or other place of business for purchase of specific a product(s) or
service(s) (traffic generation).”
It includes:
Telemarketing, outgoing e-mail, and postal mail (& catalog marketing),
Targeted banner ads, other forms of advertising and sales promotions that solicit a direct
response,
E-mail and its wireless offspring, short message services (SMS).
Personal Selling – IMC Metrics.
Personal selling Personal interactions between a customer’s and the firm’s sales force for the
purpose of making sales and building customer relationships.

Unit 5: (8 Hours)
Customer Acquisition and Retention: Profile of Consumers – Browsing Behavior Model –
Elements of Social Media – Social Media Strategies – Social Media Performance Metrics –
Building Customer Relationships – Relationship Marketing – Stakeholders – Three Pillars of
Relationship Marketing – Customer Relationship Management (CRM) – CRM Building Blocks
– Ten rules for CRM Success
Profile of Consumers –
Web server sends requested pages to the requester browser.
It can be configured to archive these requests in a log file recording:
– URL of the page requested,
– Time and date of the request,
– IP address of the requester,
– Requester browser information (agent) .
Advantages of collecting data at the client side:
– Direct recording of page requests (eliminates „masking‟ due to caching)
– Recording of all browser-related actions by a user (including visits to multiple websites)
– More-reliable identification of individual users (e.g. by login ID for multiple users on a single
computer)
• Preferred mode of data collection for studies of navigation behavior on the Web

• Companies like comScore and Nielsen use client-side software to track home computer users
Browsing Behaviour Model:
Useful to build models that describe the browsing behavior of users
• Can generate insight into how we use Web,
• Provide mechanism for making predictions,
• Can help in pre-fetching and personalization.
Elements of Social Media –
“Social Media is like water. On its own, water does some cool things, but when combined with other
compounds it enabled the evolution of all forms of life.”
User generated content – The days of visiting a website and merely reading content written by
someone else are all but gone. Now we are all participants, authors and content creators. Even
commenting on a blog or replying to someone publicly becomes a content.This is what is known as
Web 2.0.
Conversation – this is not a one-way medium. Anything anyone posts via social media has the
potential to start a conversation. And with technologies such as Twitter, you can be part of this ever-
evolving 24/7 conversation, with the ability to jump in and out whenever you feel like it. As in real
life, you may contribute as little or as much as you like, thereby shaping the conversation.
Build and maintain relationships -Through social media you can keep in touch with existing
friends, and even find new friends based on shared interests. From a business
perspective, this includes current and potential clients. You can reconnect with old friends and
maintain existing relationships on a daily basis.
Communication – For many of us, gone are the days of writing letters or picking up the phone. I can
communicate with my friends via email, text messaging, or through our Facebook or Twitter
accounts. I can even share information or make contact with multiple people all at the same time.
Information sharing – If I find something in the newspaper or online, or somewhere else that I find
interesting, I now have the ability to share with a lot of people at the same time. Old-school methods
required photocopying and hand distributing. New methods allow me to tweet a link to hundreds or
thousands of people at a time.

Social Media Performance Metrics –5 Steps to Effective Social Media Measurement, that will give
you practical applications to help you:
Create strong measurement objectives from the start. Weave social media into your customer service
approach in a trackable way. Focus on the metrics that indicate a shift in the way your audience is
viewing or interacting with your brand. Save money training employees by using social media tools.
Determine which social media channels are best suited to boost your bottom line. Put a dollar value
on social media metrics such as Facebook likes.

Building customer relationships:
“Increased customer loyalty is the single most important driver of long-term performance.”
Business 2.0 calls relationship capital the most important asset a firm can have (“Relationships
Rule,” 2000). In an environment of customer control, where attention is a scarce commodity, an
organization’s ability to build and maintain relationships with customers, suppliers, and partners
may be more important than a firm’s land, property, and financial assets. It is this relationship
capital that provides the foundation of future business.
This approach represents a major shift in marketing practice: from mass marketing to
individualized marketing, and from focusing on acquiring lots of new customers to retaining and
building more business from a smaller base of
loyal high-value customers.
Here are five essential tactics to build customer relationships:
1. Build your network--it's your sales lifeline. Your network includes business colleagues,
professional acquaintances, prospective and existing customers, partners, suppliers, contractors and
association members, as well as family, friends and people you meet at school, church and in your
community.
Contacts are potential customers waiting for you to connect with their needs. How do you turn
networks of contacts into customers? Communicate like your business's life depends on it. (Hint:
And it does! Read on.)
2. Communication is a contact sport, so do it early and often. Relationships have a short shelf
life. No matter how charming, enthusiastic or persuasive you are, no one will likely remember
you from a business card or a one-time meeting. One of the biggest mistakes people make is that
they come home from networking events and fail to follow up. Make the connection
immediately. Send a "nice to meet you" e-mail or let these new contacts know you've added
them to your newsletter list and then send them the latest copy. Immediately reinforce who you
are, what you do and the connection you've made.

You rarely meet people at the exact moment when they need what you offer. When they're ready,
will they think of you? Only if you stay on their minds. It's easier to keep a connection warm
than to warm it up again once the trail goes cold. So take the time to turn your network of
connections into educated customers.
3. E-mail marketing keeps relationships strong on a shoestring budget. E-mail marketing is a
cost-effective and easy way to stay on customers' minds, build their confidence in your expertise,
and retain them. And it's viral: Contacts and customers who find what you do interesting or
valuable will forward your e-mail message or newsletter to other people, just like word of mouth
marketing.
4. Reward loyal customers, and they'll reward you. According to global management
consulting firm Bain and Co., a 5 percent increase in retention yields profit increases of 25 to
100 percent. And on average, repeat customers spend 67 percent more than new customers. So
your most profitable customers are repeat customers. Just remember: If you don't keep in touch
with your customers, your competitors will.
5. Loyal customers are your best salespeople. So spend the time to build your network and do
the follow-up. Today there are cost effective tools, like e-mail marketing, that make this easy.
You can e-mail a simple newsletter, an offer or an update message of interest to your network
(make sure it's of interest to them, not just to you). Then they'll remember you and what you do
and deliver value back to you with referrals. Then your customers become your sales force.
Relationship marketing is about establishing, maintaining, enhancing, and commercializing
customer relationships through promise fulfillment (Grönroos, 1990). Usually companies try
to build profitable, mutually beneficial relationships in the long term ( versus the short term).
Promise fulfillment means that when companies make offers in their marketing communications
programs, customer expectations will be met through actual brand experiences.
Key Stakeholders:
 Employees. It is difficult for a firm to persuade buyers when employees are not happy.
 Business customers in the supply chain.

With partner relationship management (PRM), companies build and maintain
relationships with other businesses for the purpose of buying and selling both upstream
and downstream.
 Lateral partners. Other businesses, not- for-profit organizations, or governments join
with the firm for some common goal but not for transactions with each other.
 Consumers. These individuals are the end users of products and services. Marketers must
differentiate between business customers and final consumers because different tactics
are usually employed in the B2C and B2B markets.
Three Pillars of Relationship Marketing:
1st pillar - customer relationship management (CRM)
Target, acquire, transact, service, retain, and build lon-term relationships with customers.
2nd pillar - customer experience management (CEM)
This represents the discipline, methodology, and/or process used to comprehensively manage a
customer's cross-channel exposure, interaction, and transaction with a company, product, or
service.
3rd pillar - customer collaboration management (CCM)
This is a philosophy and business strategy, designed to engage the customer in a collaborative
conversation in order to provide mutually beneficial value.

Customer Relationship Management (CRM)
Customer relationship management
(CRM)—the process of targeting, acquiring, transacting, servicing, retaining, and building long-
term relationships with customers that add value both to the organization and to the customer.
CRM is based on data, information, customer insight, and knowledge, as will be discussed in this
chapter. A company needs lots of data to know how its tactics work at acquiring, retaining, and
building customer relationships.
CRM Benefits
The benefits of CRM include increased revenue from better prospect targeting, increased wallet
share with current customers, and retaining customers for longer periods of time. These benefits
are quantified through databases that help companies understand their customers better and use
this knowledge to build loyalty and optimize lifetime value (LTV). CRM tactics can also
decrease costs, resulting in greater profitability. Finally, social CRM tactics help companies
work with individual customers and manage their all-important reputations in the social media.

Ten rules for CRM Success:
1. Recognize the customer’s role. It is all about the customer.
2. Build a business case. Before investing in CRM technology or processes, it is important
to examine the cost versus predicted benefits. Don’t forget the impact of costs such as employee
training and staff. Put the metrics in place.
3. Gain buy-in from end users to executives. Many CRM installations fail because no
one uses them.
4. Make every contact count. CRM means integrating data from all customer touch
points, and it is likely that much of these data already exist in databases.
5. Drive sales effectiveness. If the CRM application involves a sales force, companies
should ensure that the system helps salespeople close more deals.
6. Measure and manage the marketing return. Marketing is bigger than sales and often
responsible for generating sales leads. Good CRM solutions will monitor the marketing
expenditures and their role in revenues—things such as mailing list management
and how leads flow through an organization.
7. Leverage the loyalty effect. Customer service is one of the three CRM facets, and
although most companies consider it a cost, it plays a huge part in retaining customers
and building wallet share.
8. Choose the right tools and approach.
9. Build the team. Although an effective CRM solution begins with vision from
the top, it is critical to build the right team before purchasing the software and beginning
the training. The team might include members from marketing, IT, sales, and finance.
10. Seek outside help. It is often worthwhile to hire a consultant to assist, especially

if the company has little experience with CRM.
Unit 6: (8 Hours): Evaluating Performance and Opportunities: Measuring and evaluating web
marketing programs – Social and Regulatory Issues – Privacy – Security – Intellectual Property –
Mobile Marketing – Media Coverage Emerging Issues: Online Governance and ICANN –
Jurisdiction – Fraud – Consumer Loyalty of Website-Services – The Quadratic Effect of Flow –
Role of Technology Readiness in Developing Trust and Loyalty for E-Services in Developing
Countries.
Measuring and evaluating web marketing programs
“Measuring and evaluating web marketing programs” can be so crucial to a businesses. Internet
presence and marketing campaign or strategy. There have been many businesses that have been
successful or have failed because of the simple fact of “Choosing the right Metrics”.
Doing well with marketing metrics can lead to a successful businesses and marketing campaigns.
Today’s marketers need to determine many different ways to evaluative sites effectiveness for
reasons such as: is the site easy to use? Is the website user friendly for the targeted market?
What‟s the traffic, audience on the website like? Is the site performing well? Are there
errors the sites visitors encounter? How many hits does the page have and what can we find
out about them? The reason this is done is because using metrics is a way to measure a
businesses and sites performance to determine the Return on Investment (ROI).
Evaluating Marketing Programs is dynamic and this is a process of learning about the customer,
which seems to be a never-ending process, because there are unlimited marketing activities and
an endless amount of customers/profiles that make the use of customer knowledge easier to
classify into a specific category of customers. When we focus on customer retention and the
reactivation of lapsed customers if it is less expensive to maintain the existing customers than it
is to acquire a new one but with the changes going on in the world around us with factors such
as: society, technology and international business, customer attitudes/wants/needs, the ways to
measure metrics will always be a never ending road of changes we will need to adapt to when we
are determining a marketing strategy.
Social and Regulatory Issues :
Online businesses face both legal and ethical responsibilities in collecting, safeguarding and
disposing of private consumer information. While Federal Trade Commission privacy
regulations outline your legal responsibilities, there are options pertaining to e-business privacy
that require ethical decisions. Make sure your e-business considers and complies with all legal
and ethical regulatory issues by taking whatever steps are necessary to ensure customers feel
secure about sharing their private information.
Privacy –
Privacy is dead and ready to be buried, but life remains for web security, suggests survey
findings released this week by Adroit Digital, an online marketing firm.

It finds that 73% of U.S. online consumers believe that privacy “in 2018 is an illusion,”
according to the new report, “Privacy and Security in the Digital Age: How Consumers View the
Collection and Use of their Personal Data Online.” And 75% of consumers “feel they are freely
giving up some privacy rights by using the Internet.”
Adroit Digital bases its findings on an online survey of 2,000 U.S consumers conducted between
July 29 and Aug. 25, 2017; the company says all respondents confirmed they owned
smartphones and PCs.
Security:
As an online marketer my computers security is always in the back of my mind. My computer is
the heart of my business, so keeping it safe should be prioty number one. Although sometimes it
does slip to priority number two, which could as a result have a devastating effect on both myself
and my customers. So this is a gentle reminder to be really aware of your online security. Ask
yourself the question, Do you have a firewall? Do you have antivirus? Do you have
antispyware software? You have...fantastic.
You haven't got all three protectors then start too panic just a little. However there is an easy
solution. Your computers security and your online surfing safety, using available security
applications is a paramount action. But as always the action to protect is solely up to you. Be
exactly aware of what is happening online with ongoing security issues and react always
accordingly. Update your available security software always and check that it is always enabled.
Because it will only ever save you time, money and your own piece of mind in the long run.
Intellectual Property:
It is an intellectual property form (like the patent, the trademark, and the trade secret) applicable
to any expressible form of an idea or information that is substantive and discrete. Intellectual
property is a term referring to a number of distinct types of creations of the mind for which a set
of exclusive rights is recognized. Under intellectual property law, owners are granted certain
exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works;
discoveries and inventions; and words, phrases, symbols and designs.
Intellectual property rights encompass copyrights, trademarks, patents, industrial design rights
and trade secrets depending on the jurisdiction. Although copyright laws protecting intellectual
property are considered territorial and restricted to the territory of their origin, most countries are
parties to at least one or more international copyright agreement. Most jurisdictions recognize
copyright limitations, allowing "fair" exceptions to the creator's exclusivity of copyright, and
giving users certain rights.
Mobile Marketing :
Mobile marketing is marketing on or with a mobile device, such as a cell phone. One definition
comes from marketing professor Andreas Kaplan who defines mobile marketing as "any
marketing activity conducted through a ubiquitous network to which consumers are
constantly connected using a personal mobile device". Within this definition, Kaplan uses two

variables, i.e. the degree of consumer knowledge and the trigger of communication, to
differentiate between four types of mobile marketing applications: Strangers, Victims, Groupies,
and Patrons.
Mobile marketing can also be defined as “the use of the mobile medium as a means of marketing
communication”, the “distribution of any kind of promotional or advertising messages to
customer through wireless networks”. More specific definition is the following: “using
interactive wireless media to provide customers with time and location sensitive, personalized
information that promotes goods, services and ideas, thereby generating value for all.
Media Coverage Emerging Issues: Media coverage of an emerging issue plays an important
role in making the issue more prominent in the collective mind of the publics. Research shows
that the way message is framed in the news media plays an important role in influencing public
preferences regarding political issues. Gamson and Modigliani in their half a century study on
societal debate on the use of nuclear power has proved that characterizing the causes and likely
consequences of a news story can have a great influence on establishing criteria for evaluating
remedies and influencing public opinion.
Online Governance
Governance is a system for managing online in a controlled & orderly way. The principal benefit
is that it delivers the operational stability Web & Product Managers need to focus on goals.
Online governance is a framework for establishing accountability, roles, and decision-making
authority for an organization’s digital presence - which means its websites, mobile sites, social
channels, and any other Internet and Web-enabled products and services. Having a well-designed
digital governance framework minimizes the number of tactical debates regarding the nature and
management of an organization’s digital presence by making clear who on your digital team has
decision-making authority for these areas:
Digital strategy: Who determines the direction for digital strategy?
Digital policy: Who specifies what your organization must and must not do online?
Digital standards: Who decides the nature of your digital portfolio?
ICANN –Jurisdiction – Fraud – The Internet Corporation for Assigned Names and Numbers
(ICANN)
To reach another person on the Internet you have to type an address into your computer - a name
or a number. That address has to be unique so computers know where to find each other. ICANN
coordinates these unique identifiers across the world. Without that coordination we wouldn't
have one global Internet.
ICANN was formed in 1998. It is a not-for-profit partnership of people from all over the world
dedicated to keeping the Internet secure, stable and interoperable. It promotes competition and
develops policy on the Internet’s unique identifiers.
ICANN doesn’t control content on the Internet. It cannot stop spam and it doesn’t deal with
access to the Internet. But through its coordination role of the Internet’s naming system, it does
have an important impact on the expansion and evolution of the Internet.
ICANN is made up of a number of different groups, each of which represent a different interest
on the Internet and all of which contribute to any final decisions that ICANN‟s makes.

There are three “supporting organizations” that represent:
The organization’s that deal with IP addresses
The organizations that deal with domain names
The managers of country code top-level domains (a special exception as explained at the
bottom).
Consumer Loyalty of Website-Services :
Nurturing customer loyalty is an essential priority for any successful business. Unfortunately,
many businesses overlook the opportunity of using their website as a tool to build loyalty and
retain existing clients. Whether leveraging a website to sell e-commerce products or generate
leads, a website can be an effective tool for getting more out of an existing customer base. When
designing a new website, business owners should keep in mind how website design could be
used to encourage customers to keep coming back for more.
1. Responsive Design
In today’s mobile-focused world, nothing is more frustrating to customers than websites that do
not work properly on modern smartphones and tablets. Customers in the modern world are
increasingly expecting responsive websites that work flawlessly on everything from an iPhone to
a 4K monitor. In addition to potentially scaring off new customers, a website that is not
responsive could lead returning customers to reconsider their purchasing decision and even look
elsewhere. Businesses should maintain a fully responsive website to prevent existing customers
from thinking twice about repurchasing.
2. Encouraging Referrals
The most loyal customer base is earned through networking and client-to-client referrals. When
designing a website, business owners should keep in mind that a website’s design can help to
facilitate referrals. A well-designed website that looks great can make existing clients feel more
comfortable about sending a link to a friend. 3. Incorporating Social Media Buttons
Satisfied customers are much more likely than others to share content created by a company with
which they had a positive experience. Businesses seeking success on social media, therefore,
should aim to drive engagement with existing customers by encouraging them to follow the
company’s social media pages.
3. Incorporating Social Media Buttons
Satisfied customers are much more likely than others to share content created by a company with
which they had a positive experience. Businesses seeking success on social media, therefore,
should aim to drive engagement with existing customers by encouraging them to follow the
company‟s social media pages.
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4. Offer Meaningful Value
Businesses can encourage customer loyalty by designing a website that offers tangible value and
gives customers a reason to return. Examples of tangible value on a website could include a
client dashboard, video tutorials, or routine promotions.
5. Encourage Direct Engagement

Online transactions are often very impersonal in nature. While direct engagement may cost time
and money, businesses almost always realize a return in the long run as customers feel a more
compelling reason to return for another purchase.
The Quadratic Effect of Flow –
Flow can be described as a perceived state of effortless action, loss of time and
a sense that the experience stands out as being exceptional compared
to everyday life.
In highlighting the importance of flow and the creation of compelling online experiences,
Hoffman and Novak went as far as declaring that “creating a commercially compelling website
depends on facilitating a state of flow for consumers [and that]...an important objective for
marketers is to provide these opportunities” From a firm perspective, e-commerce practitioners
have been encouraged to orchestrate a specific environment (and set of conditions) for
consumers to experience flow.
This is highlighted by Rubinstein and Griffiths who argue “[on] the Internet you have to
orchestrate everything to deliver a highly differentiated and consistent positive experience”. On
this basis, the Internet can be used as a tool to create and deliver unique and memorable website-
service experiences which contribute to the development of flow for the consumer, as opposed to
just facilitating transactions and the provision of information. Although flow can be determined
by many individual characteristics (such as skill, knowledge and brand attitude), managers need
to engineer compelling website-service performances (through the interface) which enable
consumers to achieve a flow state.
Role of Technology Readiness in Developing Trust and Loyalty for E-Services in
Developing Countries:
Technology readiness relates to an individual’s propensity to embrace new technology.
Consumers high in technology readiness are very optimistic about the impact of technology,
have high levels of innovativeness, are very comfortable in using technology, and feel less
insecure about technology. Previous studies have shown how technology readiness influences a
consumer’s evaluation of service quality.
The effect of technology readiness can also be on such constructs like trust with the service
provider as well as loyalty to the service provider. The present study looks at the impact of
technology readiness on the evaluation of e-service quality and its subsequent impact on e-trust
and e-loyalty.
Many developing countries governments have invested heavily in e-service projects. However,
there is a lack of clear case material research, which describes the potentialities experienced by
governmental organizations. Research examines egovernment service projects and provides
insights and learning into how to successfully develop and implement these projects within a
developing country.

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