E-Marketing concept,pros and cons

1. E-MARKETING
BENEFITS AND COSTS OF ONLINE
MARKETING COMMUNICATIONS
Presented by;
NAKABUYE ZAINA

2. Technological advancements in the telecommunications industry have
dramatically affected online advertising techniques.
Many firms are
embracing a paradigm that is shifting the focus of advertising
methodology from traditional text and image advertisements to those
containing more recent technologies like JavaScript and Adobe Flash.
As a result, advertisers can more effectively engage and connect their audience
with their campaigns that seek to shape consumer attitudes and feelings towards
specific products and services.
Some new trends for internet marketing are inbound marketing, mobile
marketing and improved usage of analytics.
INTRODUCTION

3. MARKETING COMMUNICATIONS / MARCOM /
INTEGRATED MARKETING COMMUNICATIONS
 Messages and related media
MARKET

4. Price
Place
Promotion
Product
When marketing their products, firms need to create a successful mix of:
The target group needs to be made aware of
the existence and availability of the product
through promotion.
The product has to have the right features -
for example, it must look good and work
well.
The price must be right. Consumer will need
to buy in large numbers to produce a healthy
profit.
Making sure that the goods arrive when and
where they are wanted is an important
operation.

5. ONLINE ADVERTISING / ONLINE ADVERTISEMENT
/ I N TERN ET MA RKETI N G / ON LI N E MARK ETI N G O R
E- MA RK ETI N G
The marketing and promotion of products or services over the internet.
Contextual ads on
search engine result
pages (Google AdSense)
Banner ads
blogs
Rich media ads
(HTML, flash, video
Social network
Interstitial ads
(yahoomail page ad)
Online classified
advertising "for sale—
telephones", "wanted—kitchen
appliances", and "services—plumbing",
hence the term "classified"
Advertising
networks (search engines)
E-mail marketing
including
e-mail spam
Cross-
platform ads e.g.
MTN
In bound
marketing

6.  Referral marketing - a method of promoting products or services to new
customers through referrals, usually word of mouth e.g. share this to your friend
FURTHER EXAMPLES OF ONLINE MARKETING
COMMUNICATIONS
Example of referral marketing
Okabashi - In March 2011, Okabashi,
the largest US manufacturer of sandals and flip-flops, implemented
their own customer referral program through ReferralCandy, a
customer referral web app by Anafore.
According to a case study released, the referral program became one
of their top ten drivers of external traffic, boosting sales within a week
of implementation.
Referred customers also spent 13.2% more on average compared to
regular non-referred customers.

7. Affiliate marketing - a business rewards one or more affiliates for each
visitor or customer brought about by the affiliate's own marketing efforts.
Content marketing - creating specialized content such as infographics,
blog articles and ebooks.
Inbound marketing - creating and freely sharing informative content to
convert prospects into customers and customers into repeat buyers e.g. advice on
websites
Video marketing - creating videos that engage the viewer into a buying
state also guiding to a product or service.
EXAMPLES CONTINUED

8.  Digital Promotions for Television - networks use authentic digital
resources to promote their new shows in a growing vast range of
venues.
Examples
 The Sci Fi network loaded a special recap episode of Battlestar
Galactica onto Microsoft’s Xbox online gaming service;
 this gave the audience additional opportunities to sample content if
they may or may not be familiar with the show.

9. Another example
when network CBS incorporated new digital technologies
of Bluetooth-enabled mobile devices that were able to
download a thirty-second clip of a new show on their
devices; consumers standing in range of a billboard don’t
need an internet link to download the show’s content.
These non-linear viewing opportunities provided as a
valuable tool for gaining audiences; and to encourage
them to intersect with the linear audience.

10. E-MAIL MARKETING
PROS CONS
 An exact return on investment
can be tracked ("track to
basket“)
 Email Marketing is significantly
cheap and fast
 Advertisers can reach
substantial numbers of email
subscribers who have opted in
to receive email
communications on subjects of
interest to them.
 Email is popular with digital
marketers, rising an estimated
15% in 2009 to £292m in the
UK.
 email deliverability is still an issue.
legitimate email servers averaged a
delivery rate of 56%; twenty percent
of the messages were rejected, and
eight percent were filtered.

11.  Companies need to ensure that their programs do not violate
spam laws such as the United States' Controlling the Assault of
Non-Solicited Pornography and Marketing Act (CAN-SPAM), or
their Internet service provider's acceptable use policy.
CONS
E-MAIL MARKETING

12. PROS CONS
 A corporate message spreads
from user to user and resonates
because it appears to come from
a trusted, third-party source
 It’s driven by word-of-mouth,
hence results in earned media
rather than paid media.
 An easily accessible platform
 fosters brand awareness and
often, improved customer service
 relatively inexpensive platform
 Arena for brand damaging comments
An example
designer Kenneth Cole's Twitter mishap in
2011.
He tweeted, "Millions are in uproar in
#Cairo. Rumor is they heard our new
spring collection is now available online
at [Kenneth Cole's website]". This
reference to the 2011 Egyptian
Revolution drew objection from the
public; it was widely objected to on the
Internet. Kenneth Cole
realized his mistake shortly after and
responded with a statement apologizing
for the tweet.
SOCIAL MEDIA MARKETING

13. PROS
 Customer retention; referred customers are both more profitable and loyal
 web browser cookies, enable online referral marketing provide a high
degree of tracking and accountability.
 A study conducted by the Goethe University Frankfurt and the University of
Pennsylvania On whether customer referral programs are worth the cost, it
records "a positive value differential, both in the short term and long term,
between customers acquired through a referral program and other
customers. Importantly, this value differential is larger than the referral fee.
Hence, referral programs can indeed pay off."
ONLINE REFERRAL MARKETING

14. C ONTE NT M A RK E TING
NEWS, VIDEO, WHITE PAPERS, EBOOKS, INFOGRAPHICS, CASE STUDIES,
HOW-TO'S, Q&A’S, PHOTOS, ETC.
 an alternative to intrusive advertisements by offering branded content
endemic to a users browsing experience
 By intertwining the content with a brand’s equity, users are engaged by
and create a positive correlation experience with the Brand, making
them more likely to purchase the Brand.
 Millennial Generation (the largest, currently composed of 1.8 billion
people) has expectations of media that are often better met by Content
Marketing.
8 in 10 millennials expect brands to entertain them, while 31% expect
brands to create “online content, such as videos, photos, games, and
blogs”.

15. OVERALL BENEFITS AND
CHALLENGES OF ONLINE
MARKETING COMMUNICATIONS

16. BENEFITS TO THE COMPANIES
Immediate publishing of information and content that is not limited by
geography or time.
Efficiency of the advertiser's investment i.e. customization of
advertisements, including content and posted websites. For example,
AdWords
Business revenue (small businesses) e.g. “get a free drink with a copy of
this tweet”.
Offers various forms of animation hence a variety of ways to publicize
and reach a niche audience to focus its attention to a specific group
Real time feedback

17. CONT…
Internet marketing is inexpensive when examining the ratio of cost
to the reach of the target audience.
Medium that can bring results quickly
Internet marketers can measure statistics easily and
inexpensively; Internet marketing campaigns can be traced,
measured, and tested through the use of an ad server
Pay per impression, pay per click, pay per play, and pay per
action enables marketers determine which messages or
offerings are more appealing to the audience

18. Demographic Targeting
demographic platforms help companies target specific people
or specific consumers that are likely to buy your product. E.g.
Filling out questionnaires
Several industries have heavily invested in and benefited
from internet marketing and online advertising. Some originally
brick and mortar businesses such as publishing, music,
automotive or gambling, while others have sprung up as purely
online businesses, such as digital design and media, blogging, and
Internet service hosting.
CONT…

19. Convenience
Internet marketing enables companies be open for business around
the clock without worrying about store opening hours or overtime
payments for staff.
Personalization
Companies personalize offers to customers by building a profile of
their purchasing history and preferences. By tracking the web
pages and product information that prospects visit, you can make
targeted offers that reflect their interests.
This also enables planning cross-selling campaigns so as to
increase the value of sales by customer.
CONT…

20. Relationships
Online marketing provides an important platform for building relationships
with customers and increasing customer retention levels e.g. sending a
follow-up email to confirm a transaction and thanking customers. Emailing
customers regularly with special, personalized offers & inviting customers
to submit product reviews on the website, help build a sense of community.
Revenue growth
An article on the Harvard Business School Executive Education website
highlighted the link between social networking and online revenue growth.
According to the article, a group of consumers that responded most strongly
to the influence of social networks generated increased sales of around 5 %.
CONT…

21. CONT…
Film and television marketing
Industries such as film and television were somewhat slow when it
came to putting content on the Internet. Film trailers, television
show schedules and "interactive" press kits came on the scene quite
quickly as the content that promoted such products. This major
media platform was developed with investments of millions by the
film studios and television networks because it was a valuable
marketing tool.

22. consumers have control over the product, choosing whether to
check it out or not.
24 hour presence allows customers to spend more time
shopping not worrying about closing times or them been
turned away as its closing time.
convenience
It’s far more convenient for a person to research a product
online, rather than getting into their car, drive somewhere and
look for or ask someone for information about a product.
BENEFITS TO THE CONSUMERS

23. organizations offer their customers value and satisfaction. Websites can
offer more than just one thing to their customers, advice, more choices,
and other general interests that can entertain their customers all the
time.
This then adds value and satisfies the customers because eventually
they find what they were looking for.
real time updates through emails or their phones.
Increased customer bargaining power
CONT…

24. CONT…
There's no restrictions what so ever. This then allows customers to
look for the right products and goods they want.
greater supply convenience through availability of responsive
transaction facilities. This means that customers can purchase
tickets for many different things by using the internet, making the
purchase online and then printing the tickets out in their homes.
good customers service as well because if they are facing any
problems they can send out emails or twitting

25. customers have many opportunities to talk to other existing customers
via chat rooms so that they can share their experience with one another.
This gives them useful information and their views and opinions –
consumer to consumer.
The Internet is also less intrusive. People can ignore the ads by skipping
over them or bookmark websites and view them later at their leisure.
CONT…

26. P r i v a c y
Hosting the banner images on its servers and using third-party cookies, the
advertising company is able to track the browsing of users across these two
sites.
Companies holding private information are vulnerable to data attacks and
leaks. Internet browsing privacy is a related consumer concern. Web sites
routinely capture browsing and search history which can be used to provide
targeted advertising.
many customers are unaware if and when their information is being shared,
and are unable to stop the transfer of their information between companies.
Privacy policies can provide transparency to these practices. Spyware
prevention software can also be used to shield the consumer.
CHALLENGES OF ONLINE MARKETING COMMUNICATIONS

27. M a l wa r e
Illegal, unethical advertising methods e.g. external applications which
alter system settings (such as a browser's home page), spawn pop-ups.
They may mask their questionable activities by performing a simple
service, such as displaying the weather or providing a search bar but are
designed to dupe the user, acting effectively as Trojan horses. These are
difficult to remove or uninstall.
Many internet products are outright scams or promoted with deception
making it difficult to know which one is worth buying. Especially products
that are supposed to train or aid Internet marketers in making money &
online get-rich-quick schemes.
CONT…

28. Tr u s t
Consumers are concerned with whether or not they will receive exactly
what they purchase. Online merchants have attempted to address this
concern by investing in and building strong consumer brands (e.g.,
Amazon.com, eBay, and Overstock.com)
The consumer is unable to physically feel or try on the product which can
be a limitation for certain goods. However a survey of consumers of
cosmetics products shows that email marketing can be used to interest a
consumer in visiting a store to try a product.
CONT…

29. E t h i c s
Some websites use large numbers of advertisements, including flashing
banners that distract, irritate the user, misleading images designed to look
like error messages from the operating system, rather than
advertisements.
Websites that unethically use online advertising for revenue frequently do
not monitor what advertisements on their website link to, allowing
advertisements to lead to sites with malicious software or audience-
inappropriate material.
CONT…

30. IMPACT OF ONLINE MARKETING
COMMUNICATIONS
There is a growing impact of online marketing communications on elections
especially social media on drives for major public responses (campaigns)
United States' electoral process for example, in 2008, candidates for
President heavily utilized Internet marketing strategies to reach
constituents.
During the 2007 primaries, candidates added, on average,
over 500 social network supporters per day to help spread their message.
President Barack Obama raised over US$1 million in one day during his
extensive Democratic candidacy campaign, largely due to online donors.

31. CONCLUSION
The backbone of any business is the effectiveness of its marketing
campaign. Without implementing successful marketing techniques,
companies will not sell products and businesses will not thrive. With online
marketing therefore, successful Internet marketing campaign will also
depend upon building high quality web pages to engage and persuade
clients setting up analytics programs to enable site owners to measure
results, and improving a site's conversion rate.
However, ethics, trust and privacy remain a very big challenge of
successful online marketing with slim chance of effective address