1. MGT 3225: E-Business Lecture 5: E-Marketing
Md Mahbubul Alam, PhD
Associate Professor

2. Intended Learning Outcomes (ILOs)
Assess the need for separate e-business and e-marketing strategies,
Create an outline e-marketing plan intended to implement the e-marketing strategy,
Integrate traditional marketing approaches with e-marketing,
Distinguish between marketing communication characteristics of traditional and new media,
Redefine marketing and communication mixed to incorporate new media.
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

3. Prepared & Presented by Md. Mahbubul Alam, PhD
What is e-marketing?
What is marketing?
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability.
Key objectives
Identifying: find out customers, their needs and wants.
Anticipating: Anticipate the demand for efficient resource allocation.
Satisfying: Outcome of marketing campaign leads to customer retention.
What is e-marketing?
The application of marketing principles and techniques to achieve marketing goals via e- communication technology.
An external perspective of how the Internet can be used in conjunction with traditional media to acquire and deliver services to customers.
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

4. Operational Process of e-marketing
3 operational processes
Acquisition: attract visitors or promote brand via search engine or ads.
Conversion: Engaging site visitors to achieve the outcomes through leads, sales or browsing other content.
Customer retention: Encouraging repeat usage of digital channels.
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

5. Management Process of e-marketing
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

6. E-Marketing Plan: SOSTAC™
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

7. Strategy Setting: Target Market Strategies
Target Marketing Strategy
Evaluation and selection of appropriate segments and the development of appropriate offers.
Segmentation
Identification of different groups within a target market in order to develop different product offerings and communications for the groups.
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

8. Prepared & Presented by Md. Mahbubul Alam, PhD
Example OVPs
‘Compare. Buy. Save’. Kelkoo (
‘Earth’s biggest selection’. Amazon (
‘Search the largest inventory of cars and trucks on the Internet. More than 1.5 million listings, updated daily’ (
The Citibank site design ( uses a range of techniques to illustrate its core proposition and OVP. The main messages are
Welcome to Citibank: The one-stop solution for all your financial needs
Look for a product or service; Learn about a financial product; Find a location
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

9. New Media Marketing: Characteristics
Interactivity: Push vs. pull media, two-way interaction. See, slide 33
Intelligence: Low-cost method for marketing research, customer profiling, e.g.,
Individualization: Broadcast same message vs. personalized message, e.g., Dell Premier ( See, slide 34.
Integration: ‘Customer-to-organization’ and ‘organization-to-customer’ communication. See, slide
Industry restructuring: Disintermediation, reintermediation and Countermediation.
Independent of location: Reach of company communication to the global market.
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

10. Communication models: Traditional media vs. New media
Push media
Company->customer
New media
Pull media
Customer seek information on a web site.
e.g., FMCG brand like Nestle (
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

11. Degree of Individualization: Traditional media vs. New media
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

12. Channels Integration Strategy
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

13. Channel Integration: e-marketing and mixed-mode buying
The process by which customer changes between online and offline channels during the buying process.
e.g.,
1. Mixed-mode buying: The process by which customer changes between online and offline channels during the buying process.
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

14. Prepared & Presented by Md. Mahbubul Alam, PhD
Tactics: Product
Core product: Fundamental features of a product the meet users’ needs.
Extended product: Additional features and benefits beyond the core product.
Mass customization: Tailored versions of products to individual customers or groups of customers.
Bundling: multiple products are offered as individual items or groups at a reduce price.
Versioning
Subscription
Pay-per-view
Ad-supported content
Tactics: 4Ps: product, price, place and promotion + 3Ps: people, processes, physical evidence.
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

15. Prepared & Presented by Md. Mahbubul Alam, PhD
Tactics: Price
Commoditization: Selection of product is more dependent on price than on differentiating features, benefits and value-added services.
Dynamic pricing: Prices can be update in real time according to the type of customer of current market conditions, e.g., auctions, yield management, flash marketing, free & freemium
Aggregated buying: A form of customer union where buyers collectively purchase a number of items at the same price and receive a volume discount.
Satisficing behavior: Customer do not behave entirely rationally. They compare alternatives but may make choice given imperfect information.
Price elasticity of demand: Measure of consumer behavior that indicated the change in demand for a product/service in response to changes in prices. It assess the extent to which a change in price will influence demand for a product.
Elastic: A small change in price increases or reduces the demand substantially.
Inelastic: A large change in price is accompanied by a small amount of change in demand.
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

16. Prepared & Presented by Md. Mahbubul Alam, PhD
Tipping Point
The principle that describe the underpinning of the rapid spread of ideas, products and behaviors through a population.
Science of social epidemics
Word-of-mouth impact on the rate of adoption of new products.
Principles: Three
The law of the few: word-of-mouth and copycat behavior
The stickiness factor: attachment of the characteristics and attributes of a product or a brand.
The power of context: Products and behavior spread far and wide only when they fit the physical, social and mental context.
Read the Box 8.3 on pp
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

17. Traditional Online Marketing and Advertising Tools
Search engine marketing and advertising
Search engine marketing (SEM) Use of search engines for branding
Search engine advertising  Use of search engines to support direct sales
Types of search engine advertising  Sponsored links (keyword paid inclusion), Keyword advertising (Google’s AdWords), Network keyword advertising (context advertising, e.g., Google’s AdSense).
Search engine optimization (SEO) techniques to improve the ranking of Web pages generated by search engine algorithms.
Social search Utilizes social graph (friend’s recommendations, past Web visits, Facebook Likes, Google +1’s) to provide fewer and more relevant & trust-worthy results.
Display ad marketing, e.g., Banner ads, Rich media ads, Video ads, Sponsorships,
marketing  inexpensive & personalize; BUT Spam, poorly targeted list.
Affiliate marketing  paid commission fee
Viral marketing inspired customers to pass messages to others
Lead generation marketing services and tools for collecting, managing & converting leads.
Social, mobile, and local marketing and advertising
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

18. Customer Retention Strategies
Personalization and one-to-one marketing
Retargeting showing the same ad to individuals across multiple Websites
Behavioral targeting
Based on data from search engine queries, clickstream history, social network data, and integration of offline personal data and records
Effectiveness still inconclusive
Privacy issues
Customization: Changing the product
Information goods ideal for differentiation
Customer co-production: Customers help create product
Customer service
FAQs, Real-time customer chat systems, Automated response systems
2/15/2018
Prepared & Presented by Md. Mahbubul Alam, PhD

19. Question Please ? Acknowledgement:
“E-Business and E-Commerce Management: Strategy, Implementation and Practice” by Dave Chaffey