Lecture 3 - eMarketing Strategies eBusiness Lecture 3 - eMarketing Strategies NCC Education - Title Master

Introduction to Lecture 3 Topics covered: Product-based marketing strategies Customer-based marketing strategies Market segmentation Customer behaviour Acquisition, conversion and retention of customers Customer relationship management (CRM) NCC Education - Slide Master

Marketing Strategies – Key Terminology Marketing mix – combination of elements used to sell and promote products and services Marketing strategy – particular marketing mix used to create unique presence in the market Four Ps – essential issues of marketing: Product Price Promotion Place

Product-Based Marketing Strategies eCommerce site organised from an internal viewpoint Reflects the organisation’s product design and manufacturing processes Works well for customers looking for a specific product Not so helpful for customers with a more general requirement

Customer-Based Marketing Strategies eCommerce site designed to meet the needs of many different types of customers Can have separate sections on the site that address major customer groups First step is to identify groups of customers with common characteristics B2B sites pioneered the use of this approach

Communicating With Different Market Segments Vital to select right communication media Only contact with customer may be through media and website Challenge is to convince customers to trust an online business

Trust Levels in Information Dissemination Models Schneider, G. (2007) Electronic Commerce 7th Ed, p.172

Market Segmentation “Identify specific groups of customers and target them with specific advertising messages” Geographic segmentation Demographic segmentation Psychographic segmentation

One-to-One Marketing Offers products and services that match the needs of a particular customer Enables customers to create their own personalised web pages Enables highly customised interactions with customers

Usage-Based Market Segmentation “Customising visitor experiences to match the site usage behaviour patterns of each visitor or type of visitor” Browsers (using trigger words to turn into buyers) Buyers Shoppers (simplifiers, surfers, bargainers, connectors, routiners and sportsters)

Customer Relationship Intensity Goal of marketing is to create strong relationships with customers Good customer experiences can create strong loyalty towards a company and its products Five stages of loyalty as customer relationship develops over time Customer contact points are known as touchpoints

Five Stages of Customer Loyalty Schneider, G. (2007) Electronic Commerce 7th Ed, p.180

Acquiring and Retaining Customers Benefits of acquiring new customers are different for different revenue models Various costs are involved: Acquisition costs Conversion costs Retention costs

Funnel Model for Customer Acquisition, Conversion and Retention Schneider, G. (2007) Electronic Commerce 7th Ed, p.184

Customer Relationship Management (CRM) Gather information about customer behaviour and preferences Exploit ‘clickstream’ data Use this to set prices, tailor promotions and add new product features

Value of CRM Can track and examine the online behaviour of customers Use this information to provide customised, value-added products Provide recommendations to customers based on previous purchases Show current information about new products that might be of interest All designed to encourage customers to buy

Summary Different marketing strategies can be adopted, focusing on either products or customers Important to select appropriate media for communicating with customers Segmentation plays a key part in effective marketing Plans must be developed for both acquiring and retaining customers CRM can play a major role in customising relationships with online customers

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