Session 4: Emarketing

Internet Marketing Traditional Sales Intermediary Traditional Sales Intermediary Efficient distribution and greater reach Efficient distribution and greater reach Catalog sales Catalog sales Etailing (Electronic retailing) Etailing (Electronic retailing) B2B and B2C(Walmart, Amazon etc) B2B and B2C(Walmart, Amazon etc) B2C industry Rs 10000Crores(Online travel contributes 70%) B2C industry Rs 10000Crores(Online travel contributes 70%) Etailing: Rs 1100 croresEtailing: Rs 1100 crores Online classifieds: Rs 820 CroresOnline classifieds: Rs 820 Crores Digital downloads: Rs 250 CroresDigital downloads: Rs 250 Crores Online subscriptions: Rs 30 CroresOnline subscriptions: Rs 30 Crores OthersOthers

What Sells well Online Travel Online Travel Computer hardware and software Computer hardware and software Consumer Electronics Consumer Electronics Office Supplies Office Supplies Sporting goods Sporting goods Books and Music Books and Music Toys Toys Health and beauty Health and beauty Entertainment Entertainment Apparel and clothing Apparel and clothing Jewellery Jewellery

Characteristics of successful e- tailing High brand recognition High brand recognition A guarantee provided by highly reliable and well known vendors A guarantee provided by highly reliable and well known vendors Digitized format(Software,Music,Videos) Digitized format(Software,Music,Videos) Relatively inexpensive items(office supplies) Relatively inexpensive items(office supplies) Frequently purchased items(groceries) Frequently purchased items(groceries) Commodities with standard specs(books) Commodities with standard specs(books) Well known packaged items(food, chocolates etc) Well known packaged items(food, chocolates etc)

Classification of distribution channels Mail order retailers that go online Mail order retailers that go online Direct Marketing from manufacturers Direct Marketing from manufacturers Pure-play e-tailers Pure-play e-tailers Click and mortal e-tailers Click and mortal e-tailers Internet (online) malls Internet (online) malls

Issues in e-tailing Disintermediation and reintermediation Disintermediation and reintermediation Cybermediation Cybermediation Hypermediation Hypermediation Unbundling(e.g stock market) Unbundling(e.g stock market) Channel and price conflicts Channel and price conflicts Determining the right price Determining the right price Personalization(use of Cookies and customization) Personalization(use of Cookies and customization) Online fraud Online fraud How to make customers happy How to make customers happy

Market Research Goal is to find information and knowledge that describes relationships among products, customers, marketing methods and marketers Goal is to find information and knowledge that describes relationships among products, customers, marketing methods and marketers Discover marketing opportunities and plans Discover marketing opportunities and plans Turn browsers into buyers Turn browsers into buyers Offline and online research Offline and online research Market segmentation Market segmentation

Market Segmentation Dividing consumer markets into logical groups for conducting market research, advertising and sales Dividing consumer markets into logical groups for conducting market research, advertising and sales Based on web usage(related lifesyles, themes of internet usage, internet attitudes and psychographic and demographic characteristics) Based on web usage(related lifesyles, themes of internet usage, internet attitudes and psychographic and demographic characteristics) Aid of tools such as data modelling and data warehousing, data mining and web mining. Aid of tools such as data modelling and data warehousing, data mining and web mining.

Market Segmentation Diverse audience Diverse audience Large studies more cheaper than traditional methods Large studies more cheaper than traditional methods Prediction of online buying behaviour Prediction of online buying behaviour What are the purchase patterns What are the purchase patterns How does individuals navigate How does individuals navigate How do we identify real buyers from those who are browsing How do we identify real buyers from those who are browsing What is the optimal web page design What is the optimal web page design Provides identification of early shift in consumer trends Provides identification of early shift in consumer trends

Factors affecting online sales Using a survey found following Using a survey found following Frequent update of contentFrequent update of content Information on a companyInformation on a company Provision for individual userid and passwordProvision for individual userid and password Tight securityTight security Availability of good privacy statementsAvailability of good privacy statements

Online market research Implementing web based surveys Implementing web based surveys Online focus groups Online focus groups Hearing directly from customers Hearing directly from customers Customer scenarios Customer scenarios Tracking customer movements Tracking customer movements Transaction logs(IPC.com) Transaction logs(IPC.com) Cookies, web bugs and spyware Cookies, web bugs and spyware Web analytics Web analytics Tools used: supersurvey.com, surveymonkey.com, websurveyor.com, clearlearning.com, zoomerang.com Tools used: supersurvey.com, surveymonkey.com, websurveyor.com, clearlearning.com, zoomerang.com

Online market research process Steps in collecting market research data Steps in collecting market research data Define the research issue and target marketDefine the research issue and target market Identify newsgroup and internet community to studyIdentify newsgroup and internet community to study Identify specific topics for dicussionIdentify specific topics for dicussion Subscribe to the pertinent group and register in communitiesSubscribe to the pertinent group and register in communities Search discussion topic and content lists to find the target marketSearch discussion topic and content lists to find the target market Search discussion group listsSearch discussion group lists Subscribe to filtering services that monitor groupsSubscribe to filtering services that monitor groups Read FAQs and other discussionsRead FAQs and other discussions Visit Chat roomsVisit Chat rooms

Online market research process Content of research instrument Content of research instrument Post strategic queries to groupsPost strategic queries to groups Post surveys on a websitePost surveys on a website Offer reward for participationOffer reward for participation Post strategic queries on a websitePost strategic queries on a website Post relevant contents to groupsPost relevant contents to groups Post detailed survey in special questionnairesPost detailed survey in special questionnaires Create a chat room and build a communityCreate a chat room and build a community Target audience of Study Target audience of Study Compare audience with target populationCompare audience with target population Determine editorial focusDetermine editorial focus Determine contentDetermine content Determine what web services to create each type of audienceDetermine what web services to create each type of audience

Limitations of Online market research Too much data available, time consuming Too much data available, time consuming Solution: Use data warehousing and data mining(Business Intelligence) Solution: Use data warehousing and data mining(Business Intelligence) Accuracy of responses Accuracy of responses Ethics and legality of web tracking Ethics and legality of web tracking Loss of respondents due to technical glitches Loss of respondents due to technical glitches Non verbal cues (55% of communication) is lost Non verbal cues (55% of communication) is lost Security issues Security issues