Download MM409_EM_T2_KEY

ANSWER KEYS FOR E-MARKETING T2
1(a)An e-marketing plan guides the marketer through the process of identifying and analyzing potential
markets.
Global e-marketers must balance 2 different analytical approaches:
Market similarity = Concept of market similarity = marketers choose foreign markets that have
characteristics similar to their home market for initial market entry.
Market differences
= If they are based in an emerging economy and want to market to their home target market,
= If they are from a developed economy and want to target groups in an emerging economy.
1(b) The division between those who access information and those who don’t is termed the digital
divide.
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Internet Penetration rate is 50% in urban areas of China.
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CNNIC?
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Chinese Internet Network Information Center.
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58% of non-internet users are surviving in rural china as 2011 survey.
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A woman is 21% less likely to own a phone than a man.
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23% if she lead life in Africa,24% in Middle east and 37% in South Asia as per recent study.
Totally 300 million mobile subscribers but fewer women.
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Digital divide = “ 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.”
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E-marketers have to consider the social environment in which their e-businesses operate.
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Nations with emerging economies may be in different stages of economic development, which
affects their social climate.
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A dual economy:
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LDCs contain population segments with much higher income levels.
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This divides the country into haves and have nots.
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Wealth is concentrated in a country’s largest city, usually the capital.
1(c) Knowledge management is the process of managing the creation, use and dissemination of
knowledge.
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Data is the lubricant for a learning organization, and organizations are drowning in it.
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Marketing insight occurs somewhere between information and knowledge:
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Knowledge is more than a collection of information, but resides in the user,
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People, not the Internet or computers, create knowledge; computers are simply
learning enablers.
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Biggest challenges to whom?
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IT Managers and E-marketers.
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Scanner Check-Out Data Analysis
AT &T
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Call Volume Analysis
Ameritech
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Equipment Sales Analysis
Belgacom
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Customer Profitability Analysis
British telecom
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Cost and Inventory Analysis
Telestra Australia
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Purchasing Leverage with Suppliers
Telecom Ireland
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Frequent-Buyer Program Management
Telecom Italia
ROI. Companies want to know:
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Why they should save all those data.
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How will they be used, and will the benefits in additional revenues or lowered
costs return an acceptable rate on the storage space investment?
Total Cost of Ownership (TCO). Includes:
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Cost of hardware, software, and labor for data storage.
Cost savings by reducing Web server downtime and reduced labor requirements
Marketing research is not cheap:
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Need to weigh the cost of gaining additional information against the value of potential
opportunities or the risk of possible errors from decisions made with incomplete
information.
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Storage cost of all those terabytes of data coming from the Web.
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2(a) Client-side Data Collection
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Cookies
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Use PC meter with panel of users to track the user clickstream.
Server-side Data Collection
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Data log software
Real-time profiling tracks users’ movements through a web site.
2(b)
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Online labeling is a digital equivalent of product labeling and can serve many of the same
purposes as offline labeling.
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Mobility of consumers from awareness to advocacy!
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New product online has to be developed with customer codesign and internet properties.
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New product strategies?
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1.Discontinous innovations,new product lines,Extension to product lines,additions to existing
products,product repositioning and me too low costs products.
Integrated Marketing
Communication (IMC)
Product:
The Offer
Distribution Channels
Relational
Outcomes
Consumers
CRM
Price:
The Value
Transactional
Outcomes
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“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”.
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Product experience defined by customers irrespective of price levels.
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Four benefits from a product:Attributes,branding,support,services and labeling.
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Branding -existing or creating new brand names or co brands and domain names!
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Branding attributes-Culture,brand and consumer.
Overall quality: “you get what you pay for” = higher and consistent quality generally means higher
prices,Specific features: Include such elements as color, taste, style, size, and speed of service.
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Benefits are the same features from a user perspective (i.e., what will the attribute do to solve
problems or meet needs and wants?).
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For example, Yahoo! provides a list of Web site categories (attribute), which helps users find
things quickly online (benefit).
Product benefits are key components in the value proposition.
Information products can be reconfigured and personalized very easily, quickly, and cheaply, as
compared to manufactured products.
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User personalization is another form of customization:
Through Web site registration and other techniques, Web sites can:
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Greet users by name,
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Suggest product offerings of interest based on previous purchases,
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Amazon.com
2(C) Distribution:
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“The last mile” problem = each product must be shipped separately to its destination.
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Retailers pass shipping costs on to their customers & reveal it at the conclusion of the
order.
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Some vendors inflate the shipping cost to recoup some of the discount offered.
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Distribution costs for digital products are extremely low in the Internet channel
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Many firms use the Internet to distribute products or create efficiencies among supply chain
members in the distribution channel.
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Direct marketing—Many firms sell directly to customers, by-passing intermediaries in
the traditional channel for some sales.
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Agent e-business models—Firms such as eBay and E*Trade bring buyers and sellers
together and earn a fee for the transaction.
The length = number of intermediaries between supplier and consumer:
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Direct distribution channel
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No intermediaries,
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The manufacturer deals directly with the consumer,
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Dell Computer sells directly to customers.
Indirect channel
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Incorporate one or more intermediaries,
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Suppliers, a manufacturer, wholesalers, retailers, end consumers,
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Intermediaries help to perform important functions and company to focus
effectively.
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Disintermediation = eliminating traditional intermediaries:
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A channel structure requires coordination, communication, and control to avoid conflict among
its members.
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Introduction of new information technology can alter the power relationships among existing
channel players.
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The supplier that takes the early lead online will receive business from consumers and firms
eager to shop in this channel.
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EDI?
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Electronic data interchange (EDI) :No paper work,Logs on to order which increases structural
relationships.
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Which affiliations deliver the most users? This is a measure of affiliate program
effectiveness.
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What is happening to users referred from an affiliate site?
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When and how do customers arrive at a Web site?
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How long do users stay at a Web site?
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How is buyer behavior different from other users who do not buy?
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How frequently are visitors converted to customers?
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Which channel partners deliver the most profitable customers? The most loyal ones?
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They relate to the e-marketing goals.
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Critical to understand how e-commerce fits into the overall marketing strategy, what
the firm expects to accomplish through it, and whether or not it is working.
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For B2B, metrics may look at time from order to delivery, order fill levels, and other
activities that reflect functions performed by channel participants.
Case study questions:
1.VR is technological system to enhance relationship with clientele in the best view of strategies
and supports with necessary links.
Yummy Mummy’s emails have an average open rate of about 26 percent and an average click-through
rate of 4.4 percent. The salon’s most successful email campaign was its launch email, where more than
44 percent of recipients who opened the email clicked through.
The company found that emails with catchy subject lines and fun, interactive content receive the highest
levels of engagement. “We’ve had open rates from 29 percent to 45 percent on our quizzes,” Sarah says.
Yummy Mummy’s monthly newsletter includes limited-time discounts, descriptions of special events,
and other company news. For special occasions such as Mother’s Day and Valentine’s Day, the company
often launches an additional campaign to promote holiday-oriented offerings and stay top of mind with
their clients.
Since special pricing and discounts are a large part of Yummy Mummy’s marketing strategy, Sarah
immediately tried out the VerticalResponse Social Coupons tool when it launched in August 2012. Offers
included 25 percent off manicures and half off children’s cuts.
2. The results are impressive: Yummy Mummy’s limited-time coupon offers boast response rates that
are three times more successful than offers shared through email alone.
“It’s really easy to set up a coupon using VerticalResponse Social,” Sarah says. “The platform is very user
friendly and took just minutes to post to our Facebook page. We’ve also used the VerticalResponse link
and embedded it on our website’s special offers page. The link directs clients to our Facebook page and
encourages them to like us before they receive the discount codes.”
Sarah has been pleased with Vertical Response, especially in the realm of social media.
“Vertical Response is continually evolving, which can be difficult when social media changes by the day,”
she says. “It manages to stay on top of the changes and offer great advice to customers, not only on new
marketing channels but also on how to integrate these new avenues into their own marketing
strategies.”
“Stressed-out Moms Connect with Yummy Mummy For Much-needed R&R”