E-MARKETING:Internet Marketing, Electronic Commerce, Basic-Forms

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Principles of Marketing MGT301

Lesson 42

After today's Lesson students should be able to explain the importance of the E. Marketing,

benefits of using internet as a tool to reach the customers, and at the same time a tool to do

business in more effective and time saving way.

E-MARKETING

a. Internet Marketing:

Internet was used for the first time in 1982. It began to expand in 1991 with the World Wide Web.

Internet technologies pose managerial implications to business. Marketers are using internet as very

effective tool of marketing

b. Major Forces Shaping the Digital Age:

Digitalization and Connectivity: The flow of digital information requires connectivity which is best

provided by the Intranets, Extranets, and the Internet. The Internet explosion is the key driver of

the "new economy". New types of the intermediaries are also playing important role in the shaping

of digital age

c. The Role of the Internet in Marketing:

Internet is very important tool in marketing.

It is useful for marketers in different ways

like:

· It

the

fastest

growing

Internet

communication technology.

· Within the first five years, 50 million

people were connected.

Telephone

Posttall Serviice

Pos a Serv c e

· Capable of interactively sharing

information in real time.

Internet is a new tool to reach consumers

initially different tools like telephone, postal

Radio

Television

services, radio and televisions were used as a

source to communicate to consumers but

now days along with these tools internet is

also being used as a source to reach and to communicate to customers/consumers. Using internet

companies can provide their information to customers through websites, search engines can be

used to coordinate the consumers and producers, customers can used the e. mails to connect to

the producers. Customers

and consumers not only

The Internet Pre senc e

acquire information through

internet but also can make

online purchases by placing

Engage iiniinteractive,perrsonaliz edcommuniications

Engage n nteractive, pe sonaliz ed communcations

orders to desired producers,

On--ine

On lline

it provides convenience and

E--mail

E mail

Web Siites

Web Stes

BannerrAds

Banne Ads

time saving for both

Viirtualsttore frontsand iinventorysystte ms

Vrtual s ore fronts and nventory sys e ms

Reduces

Lowerrsttorage

Lowe s orage

Easy access tto

Easy access o

Reduces

IInventory

nventory

costts

cos s

delliveryiinfo

deivery nfo

212

Principles of Marketing MGT301

consumers and producers, as shown in the

fig. Companies can reduce their need of

inventory stocks by using the inventory

systems. Online banners, ads, website and e.

Busiiness--to--Consumerr

Bus ne ss to Co nsume

((B2C))

B 2C

mails can be used as personalized

Basiic Forms

Bas c Forms

communication tools.

off

Ellecttroniic

E ec ron c

Commerce

d. Electronic Commerce

Busiiness--to--Busiiness

Bus ne ss to Bu sn ess

((B2B))

B 2B

· E-Commerce- The process of

conducting business transactions over

electronic networks, mostly the

Internet

E-Marketing : The process of utilizing Information Technology in the conception,

distribution, promotion, and pricing of goods, services, and ideas to create exchanges that

satisfy individual and organizational objectives

E-Business: The use of Information Technology in all business tasks including

production, marketing, accounting, finance, and human resources management

Basic objective of the marketing is to use of 4 "P's" to meet customer's needs. This objective is

best achieved by using E. marketing in Supply Chain Management. Technology can be used to

increase efficiency of marketing and increases company profitability and adds customer value

e. Rules of E-Marketing:

General rules of E. Marketing are:

1. Power Shift from sellers to buyers

2. Increasing Velocity

3. Death of Distance

4. Global reach

5. Time compression

6. Knowledge management is key

7. Market deconstruction

8. Intellectual capital rules

Buyer Benefits of E-Commerce

Convenience

Easy and private

Greater product access/selection

On--Liine Markett Share

On L n e Marke Share

Access

comparative

Salles Levell

Sa e s Leve

information

IInternet

nternet

Marketiing

RepeattPurchase

· Interactive and immediate

Market ng

Repea Purchase

Objjectiives

Ob ect ves

g. Seller

Benefits

E-

MarkettPosiitiioniing

Marke Pos t o n n g

Commerce:

IImage

ma ge

· Relationship building

Brand Awareness

· Reduced costs

Brand Awareness

· Increased speed and efficiency

· Flexibility

· Global access, global reach

213

Principles of Marketing MGT301

h. Basic-Forms

i. Virtual Business:

There are two types of the electronic

commerce one is termed as business to

business and second is termed as

business to business electronic

commerce. As the term indicates

business to consumer commerce mean

consumer acquires product through

electronic commerce for consumption

purpose while for business to business

commerce is used to sale the product

for further business processes. What

ever is the type of commerce it requires connection between the two parties which are buyer and

the seller. This connection and the interaction are provided by the virtual communities.

Manufacturers or sellers can use the bulletin boards, chat rooms, newsletters and discussion lists

for communication process that can facilitate the exchange process between the buyers and the

sellers. Major source of effectiveness of this system is dependent upon the internet technology that

is changed the world into global village.

j. Key Success Factor for Internet Businesses

Success of the internet business depends upon the offer of value and customer driven products

adjusting the prices according to products values, going for specific customers instead of the mass

marketing, distributing the products according to customer's convenience. Designing the

marketing mix that is 4ps in that way which is beneficent for both customers and producers.

k. Internet Marketing Objectives

As shown in the fig the main objectives of the internet marketing are, to have online market share,

to increase the sales level, make customers to make repeat purchases, market positioning, image

building of the company and creation of awareness regarding the brand of the company this can be

created by using different online promotional tools on internet that include bulletin advertisement,

button advertisement, targeted E. mail etc. By using these tools phenomenon of the digital world is

being created. Basic concept of the phenomenon is to provide the value products to the customers

with speed. Pakistani manufacturers/ producers can use the internet technologies for the

development of the businesses.

Some advantages that can be achieved by using internet include:

it can be used as a tool to do business

increase your customers base

increase your efficiency and effectiveness

cost effective

time saving

open new venue

Can become the part of global economy through internet marketing

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