E-MAIL MARKETING

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E-COMMERCE IT430

Lesson 31

E-MAIL MARKETING

E-mail marketing campaigns are cheap and effective way to target potential customers. E-mails can

instantaneously convey a marketing message to customers at distant areas. Personalized direct e-mails target

customers with specific information name, right product at the right time, special promotions etc. When

your e-business is doing global marketing, e-mails can be first translated into proper languages as a

personalization measure using specific translation software. Personalization technology (data mining) can

also improve response rate tremendously. Where an e-business lacks resources for doing e-mail marketing

on its own, it can outsource such campaign to outside firms. For instance, outsourcing services should be

used when direct e-mailing becomes too difficult to manage and there is inadequate staff or technical

support at the e-business level itself.

E-mails can be used to improve customer service by adding an e-mail link to your web site. Thus, you can

receive your customers' complaints through e-mails. It should be ensured that your e-business is capable of

handling expected volume of e-mails; otherwise it can bring poor reputation to your business when you

receive complaints through emails but are unable to respond. Another advantage with emails is that they

can be automatically sorted and sent to the relevant persons. E-mails can be used to inform customers

about their order/shipment status etc. Internet mailing lists can also be conveniently used to send targeted

personalized emails. You can also provide the "opt-in e-mail" option to your customers on your web site. If

they opt for it, this means that they want to receive through email any product information, offers or

promotions etc. in the future. Spamming is a term used to refer to mass e-mailing to customers who have

not expressed any interest in a specific product or service. In different countries, spamming has been

declared as an offence. E-mails can be combined with traditional direct marketing. Telemarketing (live

interaction through telephone) and e-mails can be combined to reach prospective customers. Similarly,

direct mailing and e-mails can also be combined.

Promotions

E-business promotions can attract visitors to your site and induce them to purchase. Promotional messages

can be sent both online and offline. Some popular promotional methods are as under:

Frequent-flyer miles

The online business has a contract with an airline such that the customer of the business earns specific miles

from the airline free of charge if he purchases from the online business items up to a certain value.

Point-based rewards

On the performance of a pre-specified action, customers can be entitled to point-based rewards t-shirts,

mugs etc. with the company's logo etc.

Discounts

Discount advertisements through magazines, newspapers, web sites etc. can attract new and repeat

customers.

Free-trials

Customers can sign up for a free service. For example, they can be allowed to download software for certain

days free of cost on trial basis before buying it.

Free shipping

Shipping cost may not be charged on the delivery of certain items as an incentive for the customers.

Coupons

Online coupons are placed on certain popular sites to attract customers for online shopping. They can use

these coupons for shopping through specific web sites.

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E-Business Advertising

Advertising is an attempt to disseminate information in order to effect a buyer-seller transaction. It is an

impersonal and one-way mass communication paid for by the sponsors. Televisions, movies, newspapers

and magazines are traditional ways for e-business advertising. On the other hand, Telemarketing and Direct

marketing are attempts to personalize advertising in order to make it more effective. For e-business

advertising it is important that your brand is unique and easy to remember. Publicizing URL on direct mails

or business cards can increase brand awareness.

Banner Advertising

Web page banner ads are like small billboards containing graphics and an advertising message. These

advertising messages are placed on popular web sites (host sites) which are frequently accessed and thus

those who access a host site can look at the banner/advertising message and come to know about the

brand/business which is advertising itself through the host site. The host site charges certain fee for

providing space to the banner on its web site and thus generates income/revenue. This concept therefore is

mutually beneficial for both the parties. Banners have different sizes and are placed on different positions

on the web site. Banners can be simply for viewing as well as having link to the home page of the product

or service. Business logo on a banner may increase brand recognition. Flashing, scrolling text, pop-up boxes

and color changes grab viewer's attention. So, these techniques can effectively be used for creating a banner.

As a marketer you should note how many ads the host site already carries. Also, note which position has a

better chance of click through. There can be specific times for banner advertisement. Banner advertising

space can be expensive for peak traffic times. Exchanging banners with another site is also an option. Some

sites carry banner ads for free. For example, a business selling computers can host the banner of business

selling computer books free of charge. These are related businesses which support each other so there can

be an indirect benefit to the computer business for carrying the banner of computer books business in the

sense that the latter is likely to spread more awareness about computers.

Advertising payment modes

Following payment modes can be accepted between the parties:

Monthly charges for online advertising

Cost per thousand (CPM) fee for every thousand people viewing the banner

Pay-Per-Performance that includes:

Pay-per-click fee according to no. of click to your site

Pay-per-lead pay for every lead generated from the advertisement

Pay-per-sale pay the host for every sale resulting form a click through

Exchanging advertising space on your site for advertising space on another's site

Note that the log file of the web server where the advertising web site is hosted contains a column in which

the IP address of top-referring web site is recorded. Thus by studying the log file it can be found that how

many visitors were diverted to the advertising site from the host web site (top-referring web site).

Web casting

Web casting is a term used to refer to internet-based broadcasting of audio and video content. It can

provide two-way communication between the broadcaster and the listener or viewer. Marketers should

consider some people may have slow internet access. Video conferencing is an example of web casting. For

example, using this technique, doctors sitting in China, England and Pakistan etc. can, in real time, exchange

and benefit from each other's ideas as if they are physically holding a meeting.

Interactive Advertising

It uses a combination of rich media (such as audio, video, animations) and traditional forms (such as print,

TV or radio ads) in order to involve customers in advertising process to increase brand recognition. For

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example, there is a famous business that uses this marketing technique. Its TV commercial

induces/encourages viewers to access its website from where customers can select/download various action

pictures and background music. Thus, by involving a customer in the advertising process itself, it attempts

to increase its brand recognition for the customers.

E-business Public Relations

Public Relations (PR) keeps the customers and employees of a business current or updated as regards

information about products, services and internal and external issues such as any promotional activities, new

products, customer reactions etc. Following different modes can be used to disseminate information:

Press releases

Speeches

Special events seminars, video conferencing etc

E-mails

Chat sessions

Bulletin board people can post comments

Presentations/exhibitions

Press releases can provide information about current events and other important news to the press or media

via internet. There can be a press release section of your online business which can be accessed through a

hyperlink. Moreover, video clips of news appearances, speeches, commercials can also prove to be an

effective way of publicity.

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