Characteristics of the new electronic media PDF

Preview

Summary

this summary is about e marketing and also the 4 cs together with the 4 ps of e marketing...

Description

Characteristics of the new electronic media(Chaffey page 443) : 6i’s Interactivity (two way communication) Intelligence (low cost to get market research. Also use interactivity by responding to clients’ concerns) Individualisation ( personalisation), (mass customisation for particular market segments)

Integration (all the channels need integration and they may have intermediaries that do the integration) Industry restructuring (dis-intermediation, re-intermediation and counter-mediation) Independence of location (increasing the reach of company communication to international markets) Situation analysis The outputs from situation analysis inform the e-strategic plan. Analysis of the micro environment (customers, competitors, suppliers and intermediaries) and the macro environment An internal audit of the capability/ competencies of the resources of the company such as its people, processes and technology

External analysis •

Demand analysis

•

Intermediary analysis

•

Competitor analyses

Demand analysis Future customer demand for e-commerce services in different market segments and in different digital channels. From searches for a product/service, it is possible to calculate the potential of the market. Qualitative research can be used. Graphic profiling establishes the characteristics of target customers,.

Intermediary analysis Understand how the market works and how web-based portals direct traffic to a web site or influence visitors. The extent of use of disintermediation or re-intermediation and the performance of intermediaries can also be determined.

Competitor analysis Analyse competitors’ processes, branding and online value proposition (OVP). From online publishers, social networks and brand sites. Competitor capabilities in the customer acquisition, conversion and retention processes Sources such as company reports, tax submissions can shed light on turnover and profit generated by digital channels.

Internal audit of marketing Business effectiveness.

•

Contribution to revenue & profitability.

•

Cost of producing and updating the site

Marketing effectiveness.

Leads; sales; cost of acquiring and

retaining new customer; market share; brand

engagement and loyalty; customer service

Internet effectiveness.

web analytics. Objective setting Situation = where are we? Objectives = where do we want to be? The strategic gap is the difference between the two. The objectives must be set for Customer Acquisition: Customer Conversion: Retention and growth:

The objectives must be set for each of the different product/market options that will be delivered through the web site. The online revenue contribution is important as an objective to guide the marketing plan. Online revenue contribution is an assessment of the direct contribution of the internet or other digital media to sales, It is usually expressed as a percentage of overall sales revenue. Marketing action plans •

Situation = where are we?

•

Objectives = where do we want to be?

•

The strategic gap is the difference between the two.

•

The marketing action plans are the plans the manager must develop to close the gap

Targeting •

The most profitable

•

Larger companies– create extranet for them

•

The internet can be used to reach smaller companies more cost-effectively.

•

Procurement departments.

–technical documentation for users of products, -information on savings Information on trust worthiness of the company.

•

Customers who are difficult to reach using other media

•

Customers who are not brand loyal

•

Customers at different stages in their lifecycle.

•

Customers who show intent to purchase.

Positioning -how the customer is influenced to perceive a product •

The OVP is dependent on the combination of product quality, customer service quality, fulfilment time and price, etc.

•

Seek to balance these elements.

•

A clear differentiation of the OVP from competitors’

•

Target market segment (s) that the proposition will appeal to

•

How the OVP will be communicated to site visitors and in all marketing communications .

Tactics •

The action plans will close the gap.

•

Tactics are mostly the choosing of the correct marketing mix and the way the OVP is going to be communicated.

•

The tactics will be informed by the marketing characteristics of e-technology and the responses from the intended customers.

Marketing mix & communications E-commerce provides new opportunities for the marketer to vary the marketing mix. The Four C,s approach can also be used. For communication -6Is The resource planning and scheduling of activities This component of e-marketing planning refers to activities conducted by managers to execute the plan. The implementation of action plans at different levels of planning (from strategic to tactics) will be done in topic 4.

Control Establish a control process with yardsticks These yardsticks must be the same as the yardsticks for the objectives and must be done for each operational marketing process. Marketing tools Distinguish between first and second generation marketing tools •

First e.g. email, online advertising, search marketing podcasts/videos, affiliates

•

Second e.g. social networks, wikis, mash-ups, virtual worlds. RSS feeds(really simple syndication)

First generation marketing tools Email marketing costs •

Information overload

•

Impact on brand reputation

•

Increasing legal minefield •

Growth of ‘opt-in’ systems

•

Effectiveness measurement

Email marketing benefits •

Lower cost

•

Faster delivery & response

•

‘Push’ rather than ‘pull’

•

Better for niche markets

•

Performance more easily trackable

Online advertising ‘It seems as though we are at the point where online advertising is an obsolete term. The best marketing initiatives are rarely limited to online channels, and the best ideas marketers are exploring are really not advertising at all.’ Edelman, 2007

“Behavioural targeting firms are doing the rounds in Europe and America offering the prospect of working out what web surfers are thinking, perhaps even before they know it themselves.’ The Economist, 7 June 2008

Second generation marketing tools Viral marketing: “A mechanism that facilitates and encourages people to pass along a marketing message voluntarily.” (Attributed to Jeffrey Rayport, 1995) Identify highly socially networked individuals who are capable and willing to pass a message along.

Creating an experience An experience refers to an event where the consumers pay to spend time enjoying a series of memorable events that an organisation stages to encourage them in a personal way. Experience can be defined as anything that can be perceived or felt and stimulate both the consumer intellectually and emotionally. Marketers must design and communicate an experience around every contact point with the consumer. A series of positive contact points results in a customer’s total experience.

Barriers to use of e-marketing tools Barriers to actual usage include Lack of measurement mechanisms: firms are often unwilling to adopt marketing techniques without a corresponding mechanism for measuring their effectiveness;

Barriers to actual usage include Lack of internal capabilities: whilst firms may be interested in principle in adopting a wide range of digital marketing techniques, the relative lack of skills and capabilities within the organization may slow down or prevent such adoption; and Problems convincing management: fast-moving developments in digital marketing mean that, more risk averse senior managers question the appropriateness of such techniques for particular firms Difficulties in integrating conventional and digital marketing activities...