ebusiness

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Internet the marketing mix

• Applied e-Business e-Marketing
• Level 5

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Originally there were the 4 Ps Product, Place,
Price Promotion Today ?

• E-Marketing Strategies
• FIVE Ss
• The Mix modified EIGHT Ps!
• FIVE Is
• Internet and the Marketing Mix
• Branding
• eMarketing and marketing communication
• Kiren and Blogging
• Student Blog of choice
• Snapchat

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Figure 4.4 The SOSTAC planning framework
applied to digital Internet marketing strategy
development Source Chaffey and Smith (2008)
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SOSTAC

• Situation Analysis means where are we now?
• Objectives means where do we want to be? Why
  bother going online, what are the benefits, what
  is the purpose of going to all of this effort?
• Strategy means how do we get there? Strategy
  summarises how to fulfil the objectives
• what segments and positioning should drive the
  overall marketing mix and the promotional mix?

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What is (E) Marketing

• The management process responsible for
  identifying, anticipating and satisfying customer
  needs profitably
• Profitably could be efficiency and
  effectiveness in the Not-for-Profit sector

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Identify customer needs

• From comments, enquiries, requests, complaints
  via email, social media, reviews
• Sales patterns
• Data mining (a process to extract information
  from databases and transform it into an
  understandable information)
• Web analytics what people are viewing and
  searching for and buying
• Research
• Primary online surveys
• Secondary Mintel, Gov reports, academic
  journals, previous research etc.
• Customer Relationship Marketing (CRM)

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CRM

• The concept is widely used by many organisations
  as a way of understanding their customers in
  terms of
• What the want, how they want it, when they want
  it, how much do they want to pay, how to pay for
  it?
• Customers buying behaviour when and how they
  buy, how they make purchasing decisions, their
  perceptions of the brand, the product, how loyal
  are they.
• Its about having insight of the above and also
  how to build closer and better relationships with
  customers so as the business can develop in a way
  that pleases customers which will help retain
  customers and improve satisfaction and brand
  loyalty.
• How can e-marketing help CRM?

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Satisfy customer needs

• Prompt responses
• Most orders come with instant confirmation email
• Order status / tracking
• Can require different postal method
• Punctual convenient deliveries
• Delivery slots/phone calls
• Reminders
• After sales- important?
• Dialogue with Permission

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Internet ObjectivesA Mnemonic FIVE Ss

• What you are hoping to achieve via internet usage
• Sell a Sales tool Grow sales
• Wider distribution promotion Long Tail
• Serve a Customer Service tool Add value
• Extra benefits (increase time on site)
• Speak a Communications tool
• Get closer to your customers dialogue (e.g.
  mobile compatible information)
• Save Cost reduction
• And so increase profits
• Sizzle a Brand building tool
• Extend the brand (e.g. launch a new landing page)

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How to do it wrong

• Customer acquisition
• Aim at wrong audience
• Unclear marketing message
• First impressions
• Slow page loading
• Poor look and feel of the site / page
• Poor site navigation
• Missing facilities

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• Product selection
• Awkward selection
• Pricing not competitive
• Order process lengthy or difficult
• Delivery costs unclear until near end of
  transaction
• Payment and fulfilment
• Card errors
• Security concerns
• No e-mail confirmation
• Or even delayed- most consumers expect instant
  email confirmation
• Delivery not as promised
• Most large companies have good websites- although
  mistakes are made

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Figure 4.7 A generic Internet-specific SWOT
analysis showing typical opportunitiesand
threats presented by the Internet
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Figure 4.12 Using the Internet to support
different organisational growth strategies
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First S - Sell

• What and to whom
• Ansoff matrix again (see next slide)
• Market Penetration existing products and
  markets increase share risk
• Market Development - existing products to new
  markets geographic or segmentation risk
• Product Development new products to existing
  markets product range Amazon risk
• Diversification new products to new markets
  risk

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Second S - Serve

• Add Value
• Free stuff
• Videos/help guides
• Downloadable pdf guides
• Trip Advisor
• Pre-, During, and Post- Sale

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Third S - Speak

• Communications
• On-line PR Social media
• Mass growth in use of
• Facebook for businesses
• Search Engine Marketing (SEM)
• Interactivity
• Opt-in (permission) e-mail
• Viral marketing
• Next slide

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Examples of Viral Marketing

• http//www.youtube.com/watch?NR1vJ5FVvw1yuTEfe
  atureendscreen
• http//www.youtube.com/watch?vowGykVbfgUE

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Fourth S - Save

• Cost reduction
• Critical to the business case
• Print post savings
• Go green
• Reducing bricks
• Move from high street to online
• disintermediation
• Change distribution tactics to cut out the middle
  man

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Fifth S - Sizzle

• Brand building
• Quality of the experience
• http//www.madametussauds.com/London/
• Image
• Social media
• Blogs
• http//www.blogs.marriott.com/

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The Marketing Mix

• The classic mix the 4Ps
• The extended service mix the 7Ps
• And now the 8Ps
• Product
• Price
• Place
• Promotion
• People
• Processes
• Physical evidence
• Partnerships (Chaffey Smith, 2008)

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The Marketing Mix
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Figure 5.1 The elements of the marketing mix
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The 5Is

• For interactive marketing (Peppers Rogers,
  1997)
• Identification know your customer
• Individualisation treat customers individually
• Interaction - dialogue
• Integration whole company value chain
• Integrity trust permission marketing
• Complement the Ps
• The Is define what you want to do, and the Ps are
  the variables controlled by the marketer

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Product

• Versions
• Physical, virtual (information goods), service
  products
• Variations
• The Long Tail

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Price

• Price pressures
• Reduce company overheads i.e. staffing, store
  costs. Online prices can be cheaper
• Commoditisation
• Price transparency
• Strategic pricing. Technology allows prices to be
  tracked and changed almost instantly (e.g. yield
  management of low cost carriers)
• The price package basic, discounts, delivery,
  guarantees warranties
• Online discounts, loyalty discounts and
  promotions
• Hidden delivery charges
• Comparison sites/auction sites

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Place

• Expand/reduce distribution channels promoting
  your product/service.
• Considering impact on customer service quality
• Chain of distribution often changes. Lends itself
  to direct selling can still involve a
  wholesaler and retailer i.e. Travel Supermarket
• Appearing on other websites, e-newsletters,
  forums/blogs - be visible in different places/
  reach different target markets. Search Engine
  Rankings

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Keywords

• Example of good SEO practice
• Keywords
• Meta tags

• Whether you plan to use Adwords or rely on
  Organic search, you must start with Keywords

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Search Engine Optimisation

• Do your keyword research.
• Select 3 - 5 phrases to optimize each page
  against.
• Write unique, compelling titles for each page.
• Focus on unique content that adds value to users
  and incorporates sound SEO copywriting
  techniques.
• Ensure site architecture and design do not
  prohibit thorough search engine crawling.
• Build high-quality, in-bound links.

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SEO and page titles

• Title tag and meta tag give info about content of
  website
• Should be specific/relevant focus on USP
• Not too long however

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Keywords

• Ask customers
• Use your own ideas
• But there are tools to help
• Google Adwords Keyword Tool http//bit.ly/G_KWToo
  l
• Google Insights for Searchhttp//bit.ly/G_Insight
  s
• Google Trendshttp//www.google.com/trends
• Search for the 16th November- do searches
  correspond with news on that day?

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Vertical Search

• Remember, you not only can appear in Google,
  Yahoo etc. search results
• You can also appear within a website search
  results known as vertical search (Strauss
  Frost, 2012)
• This should be optimised too.
• Trip Advisor top hotels in an area
• http//www.tripadvisor.co.uk/Tourism-g186402-Birmi
  ngham_West_Midlands_England-Vacations.html
• Itunes music
• Craiglist - classified

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Backlinks

• Incoming links to a website or inbound links
  (Chaffey Smith, 2009)
• http//www.domain-pop.com/
• Gives you greater web presence and increase your
  website page rankings
• Often reciprocal process and can be paid for to
  increase rankings.
• Similar premise to user reviews

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White Labels

• A product or service created by one company and
  then used and rebranded by another
• Parkinson-Hardman (2008) discusses benefits as
• Appear bigger
• Remove production costs of ecommerce
• Can make a profit (mark up added to product)
• Covered in further detail later in module

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Promotion

• Promotional Mix impacts of the internet
• Advertising Display ads PPC SEO
• Selling avatars affiliates
• Sales promotion loyalty schemes
• PR blogs, social media links viral
• Sponsorship games virtual worlds
• Direct mail permission newsletters social
• Exhibitions more relevant to B2B
• Merchandising site design catalogues
  recommendations
• Packaging show what to expect
• Word-of-Mouth social review sites links
• Exclusive promotions to support growth of
  different digital channels (Chaffey Bosomworth,
  2011)

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People

• Good FAQs
• Call back
• Chat to an adviser
• Call centres
• Customers help each other

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Processes

• Have processes that match what customers want
  ordering etc
• Shopping carts must work all the time! (or 99.9)

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Physical evidence

• Site gives clues - your scent
• Clarity and order
• Appropriate image and style
• Reviews
• Delivery style and professionalism
• Icons
• Security

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Shopping Cart Abandonment

• Chaffey Smith (2008) discuss how to minimise
  the risk
• Number stages of purchase process
• Minimise no. of stages
• Offer incentive to buy now
• Provide relevant info within the checkout area
• Location selection tool- find local dealer
• Voucher system- print redeem in store
• Offer alternative booking method
• Reassurance about content safety

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Partnerships

• Affiliates
• Affiliate marketing programme. You rent space
  on your website to other companies.
• Usually brand/product matched
• A code is generated within the renters website,
  and when a CTR or impression is made, this
  records the amount of commission payable to the
  rentee.
• Lastminute.com reported that clicks generated
  from affiliates are up 22.4 in 2010 YOY
  (Marketing, 2010)
• Links

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Impact of Brand

• Retailer brand
• Product brand

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Figure 5.9 The influence of brand knowledge on
purchase. Matrix for question I will buy a
product if Source Brand New World (2004)
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Figure 5.8 Changes to brand perception and
behaviour as a result of using the Internet for
research Source Brand New World (2004)
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References

• Chaffey, D. Bosomworth, D. (2011) Digital
  Marketing Strategy, http//www.smartinsights.com/g
  uides/digital-marketing-strategy/digital-marketing
  -plan-template/ - accessed 12/12/11
• Chaffey, D., Smith, P. (2008) Emarketing
  Excellence. 3rd Edition. Elsevier. Oxford, UK.
• Chaffey, D. (2009) E-Business and E-Commerce
  Management Strategy, Implementation and
  Practice.  4th Edition.  Pearson Education
  Limited.  Harlow, UK. 
• Chaffey, D., Ellis-Chadwick, F., Johnston,K.
   Mayer,R. (2009) Internet Marketing Strategy,
  Implementation and Practice.  4th Edition.
    Pearson Education Limited.  Harlow, UK.
• Marketing (2010) Digital Report Affiliates -
  Keep your affiliates onside, 28/04/10, General
  OneFile.
• Gay, R. Charlesworth, A. Esen, R. (2007) Online
  marketing a customer-led approach, 1st Edition,
  Oxford University Press. Oxford