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Electronic Marketing
Chapter 7
The Tools of Electronic Marketing
Resources
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The “Electronics” of E-Commerce
• The reach for most marketers has shifted from outward to
inward, from mass communications to markets of one, such
as individual purchasers
• The power of the e-communications is the strong link
between the vendor and the customer because of the
benefits of speed, accuracy, and convenience
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The “Electronics” of E-Commerce
• The focus on EMR will broaden the marketers’ use for
communications, segmentation, or memory enhancements
of customer preferences
– Interactive kiosks
– Pagers
– Optical scanners
– “Smart cards” with memory chips
– Videography
– CD-ROMs
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Data Warehouse and Enterprise
Reporting
• Marketers use a transient medium of communication
• The Web: the next paradigm for distribution of marketing
communications
• The Web is a truly interactive way of captivating the
audience
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Data Warehouse and Enterprise
Reporting
• The Web is a new component of data processing
• The ability for instantaneous, massive volumes of incoming
and outgoing data
– Including e-mail addresses
– Your machine or computer
– Length of time on the site
– Mouse clicks are recorded
– Most recent session is then compared to other information
already taken from other visits on the Web
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
E-mail, a Hardworking Messenger
• E-mail has become the most prevalent communications tool
for exchanging messages at the local, national or
international scope
• Low-to-no cost e-mail providers
• E-mail is a low-cost messaging system that is very flexible
for reaching individuals, groups, and company-wide
audiences
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
E-mail, a Hardworking Messenger
• External communications such as links to customers,
business partners, and prospects
– The lists can be private
– Messages are posted to the site without supervision
– E-mail can be anonymous
– E-mail is a quick response
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Internet’s Interconnections
• The Internet’s Origins
– Began as a government defense project in late ‘60s
– Government’s goal was to prevent interruption of
communications’ links in case of nuclear war or natural
disasters
– System was turned over to National Science Foundation (NSF)
for use by the research and educational constituencies
• The Mosaic browser was developed at the University of
Illinois, and now is represented by versions of Netscape and
Internet Explorer
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Wonders of the World Wide Web
• Relatively new marketing and communications resource,
introduced to the public in 1991
• Advent of color monitors, faster modems, sound cards with
speakers heightened the skills and expertise of Web
designers
• Since the mid-90s, partial Web sites have come alive with
motion and sound as well as more sophisticated colors and
graphics
• Improved information retrieval includes integrating a site
search engine
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Wonders of the World Wide Web
• The advantages and disadvantages of a Web presence
– Flexibility in design
– Updated as often as the marketer wishes
– Flexibility in interaction with customer or prospect
– Initial cost and time management are substantial
• The global commerce potential is attractive since the
emergence of free market economies around the world
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Growing of the Internet
• The Internet culture blossoms
• The spread of interface and icon usage brings together
technology and culture elements to demonstrate how these
graphical representations have earned a place at home and
work
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The EM Tools: Robot Shopping
Agents
• Compares prices from site to site, can ensure the lowest
expenditures for the consumer
• “Shopbots” are becoming a convenience for the consumer,
but possibly an inconvenience or sale-robbing threat to emerchant
• Beware that not all sites will participate with shopping bots
• Horizontal versus vertical agents
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Extended Memory of CD-ROMs
• Finding more applications for aluminum-coated disks than
just playing music
• Speed is important to marketers as well as multimedia
capabilities
• CD-ROMs have become a transfer medium for software
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Benefits of Database and Other
Software Marketing Tools
• Improving corporate memory has been the goal of database
management applications for years
– Small firms might use Microsoft Access as their database
application for minimal customer or inventory records
– Large companies might use powerful database packages such
as Oracle products
• There is a database management tool to fit each situation
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Benefits of Database and Other
Software Marketing Tools
• Customer Relationship Management (CRM) is not a tool or a
business tactic
• CRM is the result of a customer-oriented strategy
• CRM has been the most important communication tool
implemented by B2C marketers
• CRM uses database technologies to collect information,
segment and run direct promotional campaigns
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Benefits of Database and Other
Software Marketing Tools
• The value of CRM is seen in all aspects of Customer Service
– Provides a global view
– Allows for analysis of customer interactions and
communications
– Provides the marketer with better performance data
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Benefits of Database and Other
Software Marketing Tools
• Resources to consider
– Hire an in-house software developer
– Engage an outside software development company
• Front-end and back-end application devices used together build
database systems
– Front-end systems provide the client with a method to input data,
probably in marketing or IT/IS/MIS departments
– Back-end systems are repositories for the data wherever the
server is located
– Front-end/back-end combination acts as back-end to send or
retrieve the data
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Communications Networks
• Communications are graduating to service specialized
audiences, no longer used for addressing mass audiences
• Communication networks usually fall into two categories
– Intranet
– Extranet
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Communications Networks
• An Intranet, a private access communications network,
designed most frequently for employees within a
corporation
– Addresses issues of interest to the company’s constituencies
– Repository for work-in-progress or for accessing files off-site
or for employees working off-site
– Intranet can contain much information including company
notices, work schedules, and even classified ad offerings
– The Intranet can be a source of pride for the staff
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Communications Networks
• An Extranet is a semi-private access communications
network that includes linkage to selected external suppliers
and clients
– This outside-the-company network helps to coordinate projects
that are distant in geography or include people that are
infrequently involved in the project
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Software Working Hand-in-Hand
• Rapid communications are vital to the responses and
success of management
• Provides a competitive advantage that can be derived from
more powerful and reliable tools
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Reporting and Planning Systems
• Business management requires clear and concise decisionmaking and frequent reporting of project status
• For comprehension, reports have become more visual in the
last few years
• Software systems must access, analyze, and develop
accurate assessments for strategic decisions
• Resulting data must be easy to read and understand
• Large, long term projects benefit from planning applications
to set deadlines, milestone points and overlap, and down
times.
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Optical Scanners
• Spreading into new and varied service industries;
manufacturing, the medical industry, the aircraft industry,
and in lumbering for measurement purposes
• Electronic tools save many hours in pricing and counting
inventory, coupons or contest entries
• Optical scanners often dispense coupons
• Scanners increase performance by tracking results of
promotions, counting units sold, checking competitive
prices, verifying identities, and much more
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Fax-Back Systems
• The Facsimile has been reborn to serve to distribute
information, with systems delivering more than a one-to-one
transmission
• Can be less costly when the situation requires a high
volume of repetitive information
• Fax-back systems can provide field sales personnel
extensive information from a central office many miles away
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Web Portal Sites
• A Web super site; the portal is the entry point that offers a
broad array of resources and services such as e-mail,
forums, search engines, news postings, personal Web
pages, and online shopping malls
• America Online (AOL) is the largest and most successful
portal in history as a one-stop service to access the best on
the Web
• Marketers might look at advertising exposure on several
portal sites as he would analyze programming on a
television network
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Limitations of Electronic
Marketing Resources
• With every improvement, there is a trade-off, usually price
– Cost benefit analyses are conducted as a starting point to
determine if the cost of the proposed new marketing system
can save money over the current system
• Investigating her options in scalable software and hardware
or other high tech equipment for future growth
• Systems are becoming more and more complex
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Limitations of Electronic
Marketing Resources
• Resourceful companies spend handsomely on training to
retain their best employees
• A negative factor is the lower penetration of the Web into
American households
• General lack of faith in financial transactions over the Web
• Acceptance of electronic commerce is varied according to
the industry
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Limitations of Electronic
Marketing Resources
• For international marketers, obstacles could be the
limitations in language, laws, and currency, with possible
cultural differences in the exchange process
• Marketers must clearly communicate their electronic
resources needs to suppliers so that the proper trilogy-software system, hardware, and proper budgeting--is
attained.
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Problems with the Web Site
• The most commonly experienced Web access problem is
that of taking too long to download pages
• The growing problem of broken links or dead Web pages
• The content on the Web
• What equipment does the user own to access various Web
sites?
• The Web also has caused an impact in customer service
capabilities
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo