Impact of E-MarketingImpact of E-Marketing

The student will be able to . . .The student will be able to . . .

Define e-marketingDefine e-marketingExplain how e-marketing is similar to and different Explain how e-marketing is similar to and different

from traditional marketingfrom traditional marketingExplore how e-marketing can increase a business’ Explore how e-marketing can increase a business’ revenuesrevenues

Define E-MarketingDefine E-MarketingInternet marketingInternet marketing (or e-marketing) is the (or e-marketing) is the practice of using all facets of internet practice of using all facets of internet advertising to generate a response from your advertising to generate a response from your audience. audience.

It ties together both the creative and technical It ties together both the creative and technical aspects of the internet including design, aspects of the internet including design, development, advertising and marketing.development, advertising and marketing.

Internet Marketing methods include search Internet Marketing methods include search engine marketing, display advertising, e-mail engine marketing, display advertising, e-mail marketing, affiliate marketing, and interactive marketing, affiliate marketing, and interactive advertising. advertising.

E-Marketing is . . . E-Marketing is . . . Search Engine MarketingSearch Engine Marketing, or , or SEMSEM, is a , is a form of Internet marketing that seeks to form of Internet marketing that seeks to promote websites by increasing their promote websites by increasing their visibility in the search engine results pages visibility in the search engine results pages (SERPs). (SERPs). In 2006, North American advertisers spent In 2006, North American advertisers spent US$9.4 billion on search engine US$9.4 billion on search engine marketing, a 62% increase over the prior marketing, a 62% increase over the prior year. year. The largest SEM vendors are Google The largest SEM vendors are Google AdWords, Yahoo! Search Marketing and AdWords, Yahoo! Search Marketing and Microsoft adCenter.Microsoft adCenter.

E-Marketing is . . . E-Marketing is . . . Display Advertising, which is a Display Advertising, which is a web bannerweb banner or or banner ad.banner ad.

This form of online advertising entails This form of online advertising entails embedding an advertisement into a web embedding an advertisement into a web page. page.

It is intended to attract traffic to a website by It is intended to attract traffic to a website by linking them to the web site of the linking them to the web site of the advertiser. advertiser.

E-Marketing is . . . E-Marketing is . . . E-mail marketingE-mail marketing is a form of direct marketing which is a form of direct marketing which uses electronic mail as a means of communicating uses electronic mail as a means of communicating commercial or fundraising messages to an audience. commercial or fundraising messages to an audience. Researchers estimate that US firms alone spent $400 Researchers estimate that US firms alone spent $400 million on e-mail marketing in 2006. million on e-mail marketing in 2006. Every e-mail sent to a potential or current customer Every e-mail sent to a potential or current customer can be considered e-mail marketing. However, the can be considered e-mail marketing. However, the term is usually used to refer to: term is usually used to refer to: – enhancing the relationship of a merchant with its current or enhancing the relationship of a merchant with its current or

old customers and to encourage customer loyalty and old customers and to encourage customer loyalty and repeat business. repeat business.

– acquiring new customers or convincing old customers to acquiring new customers or convincing old customers to buy something immediately. buy something immediately.

– Adding advertisements in e-mails sent by other companies Adding advertisements in e-mails sent by other companies to their customers. to their customers.

E-Marketing is . . .E-Marketing is . . .

Affiliate marketingAffiliate marketing is a method of is a method of promoting web businesses promoting web businesses (merchants/advertisers) in which an (merchants/advertisers) in which an affiliate (publisher) is rewarded for every affiliate (publisher) is rewarded for every visitor, subscriber, customer, and/or sale visitor, subscriber, customer, and/or sale provided through his/her efforts. provided through his/her efforts. A research team roughly estimated A research team roughly estimated affiliates worldwide earned $6.5 billion in affiliates worldwide earned $6.5 billion in bounty and commissions in 2006. bounty and commissions in 2006.

E-Marketing is . . .E-Marketing is . . .Interactive AdvertisingInteractive Advertising the use of interactive media to the use of interactive media to promote and/or influence the buying decisions of the promote and/or influence the buying decisions of the consumer in an online and offline environment. consumer in an online and offline environment. Interactive advertising utilizes media such as the Internet, Interactive advertising utilizes media such as the Internet, interactive television, mobile devices (WAP and SMS), as interactive television, mobile devices (WAP and SMS), as well as kiosk-based terminals. well as kiosk-based terminals. Interactive advertising affords the marketer the ability to Interactive advertising affords the marketer the ability to engage the consumer in a direct and personal way, enabling engage the consumer in a direct and personal way, enabling a sophisticated and dimensional dialogue.a sophisticated and dimensional dialogue.One of the most effective implementations of interactive One of the most effective implementations of interactive advertising is called Viral marketing. This technique uses advertising is called Viral marketing. This technique uses images, texts, web links, Flash animations, audio/video clips images, texts, web links, Flash animations, audio/video clips etc., passed from user to user chain letter-style, via email. etc., passed from user to user chain letter-style, via email. A notable example of this is the A notable example of this is the Subservient ChickenSubservient Chicken, a , a campaign by campaign by Burger KingBurger King to promote their new line of chicken to promote their new line of chicken sandwiches and the "Have It Your Way" campaign. sandwiches and the "Have It Your Way" campaign.

E-Marketing AdvantagesE-Marketing AdvantagesAvailability of information. Availability of information.

Learn about products, as well as purchase Learn about products, as well as purchase them, at any hour. them, at any hour.

A reduced need for a sales force. A reduced need for a sales force.

Helps expand a local market to both national Helps expand a local market to both national and international market places.and international market places.

Levels the playing field for big and small Levels the playing field for big and small players.players.

Internet marketing offers a greater sense of Internet marketing offers a greater sense of accountability for advertisers. accountability for advertisers.

Limitations of E-MarketingLimitations of E-MarketingSlow Internet connections can cause difficulties. Slow Internet connections can cause difficulties. If companies build overly large or complicated web If companies build overly large or complicated web pages, Internet users may struggle to download the pages, Internet users may struggle to download the information. information. Internet marketing does not allow shoppers to touch, Internet marketing does not allow shoppers to touch, smell, taste or try-on tangible goods before making smell, taste or try-on tangible goods before making an online purchase an online purchase Some liberal return policies to reassure customers. Some liberal return policies to reassure customers. Some inadequate development of electronic Some inadequate development of electronic payment methods like e-checks, credit cards, etc.payment methods like e-checks, credit cards, etc. Without other collateral (print, television or radio) it Without other collateral (print, television or radio) it can often be difficult for the consumer or other can often be difficult for the consumer or other businesses to find any specific address. businesses to find any specific address.

E-Marketing is . . . E-Marketing is . . .

Information managementInformation management is the is the collection and management of information collection and management of information from one or more sources and distribution from one or more sources and distribution to one or more audiences who have a to one or more audiences who have a stake in that information or a right to that stake in that information or a right to that information. information. Management here means the organization Management here means the organization of and control over the structure, of and control over the structure, processing and delivery of information. processing and delivery of information.

E-Marketing is . . . E-Marketing is . . .

Public relationsPublic relations (PR) is the managing of (PR) is the managing of outside communication of an organization outside communication of an organization or business to create and maintain a or business to create and maintain a positive image. positive image.

Public relations involves popularizing Public relations involves popularizing successes, downplaying failures, successes, downplaying failures, announcing changes, and many other announcing changes, and many other activities. activities.

E-Marketing is . . . E-Marketing is . . .

Customer serviceCustomer service (also known as (also known as Client Client ServiceService) is the provision of service to ) is the provision of service to customers before, during and after a customers before, during and after a purchase. purchase.

E-Marketing is . . . E-Marketing is . . . SalesSales is the act of meeting prospective is the act of meeting prospective buyers and providing them with a product buyers and providing them with a product or service in exchange for money or other or service in exchange for money or other required compensation. required compensation.

Sales is an act of completion of a Sales is an act of completion of a commercial activity. commercial activity.

The "deal is closed", means the customer The "deal is closed", means the customer has consented to the proposed product or has consented to the proposed product or service by making full or partial payment service by making full or partial payment (as in case of installments) to the seller. (as in case of installments) to the seller.

E-Marketing Effect on IndustriesE-Marketing Effect on IndustriesIn the music industry, many consumers have In the music industry, many consumers have begun buying and downloading MP3s over the begun buying and downloading MP3s over the Internet instead of simply buying CDs. Internet instead of simply buying CDs.

More and more banks are offering the ability to More and more banks are offering the ability to perform banking tasks online. perform banking tasks online.

As Internet auctions have gained popularity, flea As Internet auctions have gained popularity, flea markets are struggling. markets are struggling.

Online ads totaled $16.9 billion in 2006.Online ads totaled $16.9 billion in 2006.

As advertisers increase and shift more of their As advertisers increase and shift more of their budgets online, they are now overtaking radio in budgets online, they are now overtaking radio in terms of market share. terms of market share.