Download The Power of eMarketing

The Power of
eMarketing
Bagus Nurcahyo, Dr.
Programme of Study of Marketing Management
Undergraduate Programme of Business & Entrepreneurship
Gunadarma University
The Internet is Different
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A rare example of a modern functional anarchy
No official censors, no bosses, no board of
directors, no stockholders
No one “owns” the Internet, there is no “Internet,
Incorporated”
The “Internet” itself, doesn’t even officially exist
as an entity
The “Internet” never charges for anything. Each
group accessing the internet is responsible for
their own machine and access
Evolution Of The Internet
Phase One:
Portals
Everywhere
Phase Two:
Simple
Transactions
Phase Three:
The
Digital Decade
The Internet Grows
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600 million people access the internet
worldwide (2002 est.)
2002 e-commerce 1 trillion dollars (est.)
68% increase in e-commerce 2000 vs. 2001
Over 1 billion web pages, 40 million sites
Rapid Increase in Internet Use in
the United States Across States –
Over half the population
August 2000
September 2001
Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
Internet Use at Any Location, 1998 and 2001
As a Percent of U.S. Population
Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
What are they doing online?
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More time
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More money
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More services
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Fewer sites
Online Activities 2001 – Internet users Age 3+
On-Line Education Course
3.5
5.2
Trade Stocks, Bonds, Mutual Funds*
8.8
16.4
On-Line Banking*
17.9
17.3
View TV/Movies, Listen to Radio
18.8
24.8
Government Services Search*
30.9
34.9
Product/Service Purchases
39.1
42.1
News, Weather, Sports
61.8
67.3
E-mail
84.0
0
20
40
60
80
100
Time spent online
9
6
8.2
3
4.3
0
Oct 1999
Oct 2001
Source: Jupiter
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75% of online customers say the Net makes
their lives better
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79% of Net users utilise it for information for
offline purchases
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AOL online average minutes per day:
1999
47
2001
63
Impact of Internet on
media consumption
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23%
Watch TV less often
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20%
Read magazines less often
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15%
Read newspaper less often
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9%
Listen to radio less often
Source: (USA) Scarborough National Internet Study
Reaching consumers
throughout their media day
7.00am
9.00am
TV
Print
Breakfast News
Morning Paper
Outdoor
Journey
To Work
Radio
Online
Breakfast Show
Check News/
Mail
11.00am
Messenger
1.00pm
Paper/Mags
3.00pm
Out for
Lunch
Drive Time
5.00pm
Messenger
7.00pm
9.00pm
11.00pm
News, Sport,
Finance
Leisure Mags
News, Ent,
Sport
Journey Home
Drive Time
Web Cast
e-commerce only represents
a minor fraction of total GDP...
2002 US GDP Projection
e-commerce
(3%)
Traditional retail
(97%)
The Internet has to support
Brick & Mortar
Initiate Relationship
in Information Stage
Reach New
Customer
Sets
Reduce Inventory
Needs
Internet Contribution to
Bricks and Mortar
Develop Customer
Knowledge
Increase Product
Selection
Develop
Aftermarket
Contact
… and Bricks & Mortar must
support the Internet
Brand
Reinforcement
and Trust
Place to
touch and
test-drive
product
Reach a larger
customer base
Bricks & Mortar
Contribution to Internet
Capture
Aftermarket
Profits
Capture urgent
and impulse buys
Facilitate
Delivery
Role of Bricks and Mortar
Customers must be able to move
back and forth seamlessly ...
Internet
Bricks and Mortar
Awareness
Research
Shop
Buy
Transform Bricks and Mortar
Own
Dispose/
Repurchase
Marketing Employment Is
Growing
“Employment of advertising,
marketing, promotions, public
relations, and sales managers is
expected to increase faster than
the average for all occupations
through 2010 ”
Source: United States Department of Labor
eMA Employment Survey
70% of all management level
marketing positions require Internet
abilities and/or experience.
Internet Related Jobs Are NOT
Just in I T
Source: Center for Research in
eCommerce, graduate School of
Business, University of Texas at Austin
The Change in Corporate
Culture
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1996 – most web sites are managed by IT /MIS
2001 – marketing and IT/MIS manage web sites
jointly (in some cases)
Marketing needs to “own” web site
IT/MIS are the mechanics – marketing the pilot
Marketing becomes more collaborative and less
autonomous
Are the Following IT or Marcom
Functions?
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Corporate communications
Advertising
Corporate identity
Product positioning
Market Research
IT/MIS Continues to Dominate
Web Management
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Lack of technical understanding by
marketers
Fast changing technology can create
confusion
Corporate politics plays a role
Efficient Organization
Administration
Operations
Marketing/Sales
MIS
Service
Support
Webmaster
Effective Organization
Administration Operations
Marketing
Webmaster
Service
Support
MIS
Outlook
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Increasing shift of web site responsibility from
MIS to marketing
Increased technical knowledge required from
marketers
Internet marketing accounts for 15% of all
advertising impressions and only 5% of
marketing budgets
The gap will close between impressions and
budget
Marketer must understand new tools
No Other Media Has All of the Advantages of
eMarketing. Period.
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Cost effectiveness
Global reach
Interactive response
Measurability
Personalization
Real-time feedback
But E-marketing Suffers From
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Lack of data – 5 years vs. decades for
magazines, radio
Lack of understanding of technology by
marketers
Fast moving and turbulent arena
Changing technologies
Lack of trained personal
Senior management barriers
Corporate culture
Online Marketing Tools Are Less Than
6 Years Old (That’s First Grade)
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E-mail marketing
Site design for e-commerce
Viral marketing
Affiliate marketing
Banner advertising
Search engines
Online publicity
Research
CRM
Site Design for E-marketing
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Merchant account checkout
Visitor expectations
Surveys
Content
Technical considerations
Color
Plug ins
Product descriptions
Company information
What Works on a Site ?
Common Influences on Online Purchase
Shipping fees
92%
Prices
92%
Product availability
86%
Special promotions or incentives
76%
Selection
69%
Order tracking
66%
Clearly identified delivery time
65%
Return policy
63%
Ease of use
62%
Site performance/speed
51%
Source: Vividence
Search Engines
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Pay for position taking a strong lead
Search engine optimization (SEO) critical
Majority of users rely on search engines for
navigation
Targeted audience
Accounts for over 70% of new site visitors
Turbulent arena
E-mail Marketing
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E-mail is the number one app with over 90% of
internet users
Issues such as browser differences, targeting,
and privacy are critical
Spam, creates a major negative for e-mail
marketing, laws passed in 19 states
Only 3 years of significant use
Viral Marketing
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Hot Mail was one of the first examples of viral
marketing
Another “e” term for “word-of-mouth” advertising
Bulletin boards, e-mail, chat rooms are the
major conduits for viral campaigns
What is “buzz”
Affiliate Marketing
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Partnership and affiliate programs are booming
Cooperation between online companies
Commission programs and banner exchange
programs lead this channel
Banner Advertising
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Volatile history with sharply declining click
through rates
New forms such as java, active x,
Pop-ups, pop-under and other new delivery
methods are gaining acceptance
Branding is possible with banners
Research
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Log files
ASP log conversion
Metrics for e-marketing analysis
Surveys
Challenges
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Integration of e-marketing and conventional
marketing creates a “blurred channel”
Hybrid advertising
Marketing mix
Consumer expectations
Technological limitations
New innovations
Legal issues
Conventional Media
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Addition of web address creates hybrid
advertising
Web site can degrade or enhance conventional
efforts
Visitor experience becomes critical
Diffused metrics
Technological Limitations
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Different browsers
Online software (plug ins java –flash etc.)
Screen resolutions
Bandwidth speed
Operating systems
Server technology
Legal Issues
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Privacy policies
Spam
International commerce
COPPA
19 states have anti Spam laws
Dozens pending in congress
Online disclosure
Emerging Technologies.
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Wireless poised to triple over the next few years
Smart chips could track BM purchases
Higher bandwidth could allow for increased
streaming media on sites
MPEG4 – good enough for video?
???
80% Still Dial-up
Digital
Subscriber Line
(DSL)
6.6%
Other
0.5%
Cable Modem
12.9%
Dial-up
80.0%
Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey
Supplements
One Example
One More
Digital
innovations become an integral
part of life
Breaks
Offers
down logistical barriers
greater flexibility and power
Shrinks
time and business
Simplifies
complex business processes
Enables
effective communication and
collaboration
Opens
up new markets
Bagus Nurcahyo,Dr.
Programme of Study of Marketing Management,
Undergraduate Programme of Business &
Entrepreneurship, Gunadarma University,
Margonda Raya St. No. 100, Pondok Cina,
Depok,
Phone: 021-78881112 ext 456
Mobile: 08161112590
Official site: http://bagus.gunadarma.ac.id
Web Blog: http://gus-nur69.wordpress.com
E-mail: [email protected]
[email protected]