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CHAPTER 7 The Tools of Electronic Marketing Resources Chapter Objectives • To introduce the tools and software applications of electronic marketing • To anticipate the problems associated with maintaining a marketing Web sites. • To present the advantages and disadvantages of electronic marketing tools in implementing online marketing programs. The Electronic of E-Commerce • Electronic marketing has been introduced 10 year ago, and most significantly, it has been designed to communicate from a mass marketer to market of one, as in individual purchasers or prospects: • The focus of electronic marketing resources includes electronic tools, which marketers can use for communication, segmentation, or memory enhancements of customer preferences: » » » » » » Videography CD-ROM Interactive kiosks Pagers Optical scanners Smart cards The Data Warehouse and Enterprise Reporting • It must be seen a medium of communication. • It may be viewed as the next paradigm for distribution of marketing information. • It is interactive way of captivating the audience. • It introduces a massive volumes of incoming and outgoing data: • • • • • Including e-mail addresses. Your machine/computer. Length of time on the site. Mouse clicks. Your most recent session with information already from other visits on the Web. E-mails • It is a communication tool for local, national and international messages. • Low-to-no cost e-mail providers. • It helps to reach internal and external groups and audiences. • External communications links to customers, business partners and prospects: • • • • • The list can be private. Messages are posted to the site without supervision. It may be anonymous. It is a quick and efficient response. Survey questions and data capture. E-Mails (cont.) • Research findings: • • • • • • • They may be accessed from home-25%. One e-mail account-42% More than one e-mail account-56% Europe-30% Vs. USA-20% Use from work only-Europeans Older audience using from home-56% Single-74% The Internet’s Interconnections • Origin of Internet: • It began as government defense project in late 1960s. • The goal was to prevent interruption of telephone and satellite communication’s links in case of war or nuclear disaster. • It is later turned over to the NSF for use by the researchers and universities. • The Mosaic browser developed at the University of Illinois, and now represented by the various versions of Nestcape Navigator and Internet Explorer. The New Reality • The Internet: • • • • • Create demand. Provide information. Enables customer transactions. Focus on learning about market/audience. Deliver messages/information in a timely and relevant manner. • Cater to customer’s self-identified needs. WWW • A new marketing and communications resources that was introduced in 1991. • It uses monitors, modems, sound cards along with Web experts. • Web sites have come alive with addition of motion and sound as well as color and graphics. • Information retrieval system on Yahoo, etc. • The advantages: • Flexibility how the customers can interact with Web sites. • Updated as often as the marketer wishes. • Growing interest for world-wide applications and usage. Offline Advertising Efforts • Segmented postcard mailings: • Splits to identify audience group • Print ads that lead readers to unique URL. • Incentives and services that persuade the audience to supply e-mail addresses or information. Driving Traffic to the Web Sites • A tiered approach: • Gather names/e-mail addresses. • Determines which names are most likely to convert to sale. • Creates site segments that target visitors in different sections of the sales cycle. • Creating a richer user experience: • As you collect information, you can deliver: » Messages that are relevant to what has already been learned about each customer. » Varying levels of communication and interactive functionality Success Scenario • Know Your Customers • Offer Your Customers Something That No Other Company Can • Don not Alienate While You are Driving Traffic To the Website Source: Presentations of B2B groups, Inc. at the Professors’ Workshop of Direct Marketing Association. Robot Shopping Agent • Price comparison may result in large amount of saving, but it is not worthy for low price products. • Automatic shoppers are a great convenience to the consumer, but it is inconvenience or a sale-robbing threat to the e-merchant. • Same merchants refuse to participate with shopping robots.Exp.CDNow. The Benefits of Database and Other Software Marketing Tools • Small firms use Microsoft Access for customer records • Large companies use Oracle Developer 2000 or oracle data Warehouse. • Data management tools must used to ease the situation: • Hire in-house software developer. • Engage an outside software development company. Communications Networks • It addresses to service specialized audience such as employees, vendors or clients, no longer to mass audiences. • Intranet, a private access communication network designed most frequently for the employees within an organization: • Addresses issued to the company’s constituencies. • Intranet can contain information including work schedules and company notices. • Extranet is a private access communication network that includes selected external suppliers: • It coordinates projects or participants that are distant in geography. Reporting and Planning Systems • Business requires clear and concise decision-making and reports. • Reports must be easy to read and understand. • Software systems must be able to access, analyze, and develop accurate assessment for making strategic decision. Optical Scanners • Incorporated into new and varied services to save time at the checkout in retail stores and manufacturing plant. • It counts unit sold for inventory control and used for tracking sales promotions, price checks and various market research activities. Web Portal Sites • Web super site, the portal is the entry point that offers a broad array of resources and services such as e-mail from the Web site, forums, a variety of search engines, news broadcast, personal Web pages and online shopping malls. • It is very attractive to online retailers and other marketing oriented companies • AOL is still the largest and more successful portal in history as one-step service to access the best on the Web. Web Portal Sites (cont.) • Marketer might look at advertising exposure on several portal sites as he would analyze programming on a television network. • The well known search engines, Infoseek, Excite, Lycos, and Yahoo, are offering emails and home pages. The Limitations of Electronic Marketing Resources • With every improved business practice or convenience there is tradeoff usually cost. • Software and hardware needs should be investigated for future growth. • The low penetration of WWW into American household. • Lack of faith in financial transaction over the Web (legalized e-signature). • For international marketing, limitations are language, laws, currency and cultural differences. • In order to balance the requirements, software and The Problems With the Web Sites • Takes too long to download pages. • Broken links and dead Web pages. • Content on the Web. Unethical behaviors and pages. • What equipment does the user own to access various Web sites (modem speed, etc.). • Impact on customer service capabilities (color, motion and sound clips).