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The Power of e Marketing PowerPoint Presentation
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The Power of e Marketing

The Power of e Marketing

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The Power of e Marketing

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  1. The Power of eMarketing

  2. Robert Fleming President and CEO eMarketing Association

  3. The Internet is Different • A rare example of a modern functional anarchy • No official censors, no bosses, no board of directors, no stockholders • No one “owns” the Internet, there is no “Internet, Incorporated” • The “Internet” itself, doesn’t even officially exist as an entity • The “Internet” never charges for anything. Each group accessing the internet is responsible for their own machine and access

  4. Evolution Of The Internet Phase One:Portals Everywhere Phase Two:Simple Transactions Phase Three:The Digital Decade

  5. The Internet Grows • 600 million people access the internet worldwide (2002 est.) • 2002 e-commerce 1 trillion dollars (est.) • 68% increase in e-commerce 2000 vs. 2001 • Over 1 billion web pages, 40 million sites

  6. August 2000 September 2001 Rapid Increase in Internet Use in the United States Across States –Over half the population Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

  7. Internet Use at Any Location, 1998 and 2001As a Percent of U.S. Population Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

  8. What are they doing online? • More time • More money • More services • Fewer sites

  9. Online Activities 2001 – Internet users Age 3+

  10. 9 6 3 0 8.2 4.3 Oct 1999 Oct 2001 Time spent online Source: Jupiter

  11. 1999 2001 47 63 • 75% of online customers say the Net makes their lives better • 79% of Net users utilise it for information for offline purchases • AOL online average minutes per day:

  12. 23% Watch TV less often • 20% Read magazines less often • 15% Read newspaper less often • 9% Listen to radio less often Impact of Internet onmedia consumption Source: (USA) Scarborough National Internet Study

  13. TV Print Outdoor Radio Online Journey To Work Breakfast News Morning Paper Breakfast Show Check News/ Mail Messenger Paper/Mags Out for Lunch Drive Time News, Sport, Finance Messenger Leisure Mags Journey Home Drive Time Web Cast News, Ent, Sport Reaching consumersthroughout their media day 7.00am 9.00am 11.00am 1.00pm 3.00pm 5.00pm 7.00pm 9.00pm 11.00pm

  14. e-commerce only represents a minor fraction of total GDP... 2002 US GDP Projection e-commerce (3%) Traditional retail (97%)

  15. Initiate Relationship in Information Stage Reduce Inventory Needs Develop AftermarketContact Reach New Customer Sets Develop Customer Knowledge Increase Product Selection The Internet has to supportBrick & Mortar Internet Contribution to Bricks and Mortar

  16. Brand Reinforcementand Trust Reach a larger customer base Facilitate Delivery Capture Aftermarket Profits Capture urgent and impulse buys Place to touch and test-drive product … and Bricks & Mortar mustsupport the Internet Bricks & MortarContribution to Internet

  17. Customers must be able to moveback and forth seamlessly ... Internet Shared Customer Info Role of Bricks and Mortar Integrated Systems Bricks and Mortar Dispose/ Repurchase Awareness Research Shop Buy Own Transform Bricks and Mortar

  18. Marketing Employment Is Growing “Employment of advertising, marketing, promotions, public relations, and sales managers is expected to increase faster than the average for all occupations through 2010 ” Source: United States Department of Labor

  19. eMA Employment Survey 70% of all management level marketing positions require Internet abilities and/or experience.

  20. Internet Related Jobs Are NOT Just in I T Source: Center for Research in eCommerce, graduate School of Business, University of Texas at Austin

  21. The Change in Corporate Culture • 1996 – most web sites are managed by IT /MIS • 2001 – marketing and IT/MIS manage web sites jointly (in some cases) • Marketing needs to “own” web site • IT/MIS are the mechanics – marketing the pilot • Marketing becomes more collaborative and less autonomous

  22. Are the Following IT or Marcom Functions? • Corporate communications • Advertising • Corporate identity • Product positioning • Market Research

  23. IT/MIS Continues to Dominate Web Management • Lack of technical understanding by marketers • Fast changing technology can create confusion • Corporate politics plays a role

  24. Efficient Organization

  25. Effective Organization

  26. Outlook • Increasing shift of web site responsibility from MIS to marketing • Increased technical knowledge required from marketers • Internet marketing accounts for 15% of all advertising impressions and only 5% of marketing budgets • The gap will close between impressions and budget • Marketer must understand new tools

  27. No Other Media Has All of the Advantages of eMarketing. Period. • Cost effectiveness • Global reach • Interactive response • Measurability • Personalization • Real-time feedback

  28. But E-marketing Suffers From • Lack of data – 5 years vs. decades for magazines, radio • Lack of understanding of technology by marketers • Fast moving and turbulent arena • Changing technologies • Lack of trained personal • Senior management barriers • Corporate culture

  29. Online Marketing Tools Are Less Than 6 Years Old (That’s First Grade) • E-mail marketing • Site design for e-commerce • Viral marketing • Affiliate marketing • Banner advertising • Search engines • Online publicity • Research • CRM

  30. Site Design for E-marketing • Merchant account checkout • Visitor expectations • Surveys • Content • Technical considerations • Color • Plug ins • Product descriptions • Company information

  31. Common Influences on Online Purchase Shipping fees 92% Prices 92% Product availability 86% Special promotions or incentives 76% Selection 69% Order tracking 66% Clearly identified delivery time 65% Return policy 63% Ease of use 62% Site performance/speed 51% Source: Vividence What Works on a Site ?

  32. Search Engines • Pay for position taking a strong lead • Search engine optimization (SEO) critical • Majority of users rely on search engines for navigation • Targeted audience • Accounts for over 70% of new site visitors • Turbulent arena

  33. E-mail Marketing • E-mail is the number one app with over 90% of internet users • Issues such as browser differences, targeting, and privacy are critical • Spam, creates a major negative for e-mail marketing, laws passed in 19 states • Only 3 years of significant use

  34. Viral Marketing • Hot Mail was one of the first examples of viral marketing • Another “e” term for “word-of-mouth” advertising • Bulletin boards, e-mail, chat rooms are the major conduits for viral campaigns • What is “buzz”

  35. Affiliate Marketing • Partnership and affiliate programs are booming • Cooperation between online companies • Commission programs and banner exchange programs lead this channel

  36. Banner Advertising • Volatile history with sharply declining click through rates • New forms such as java, active x, • Pop-ups, pop-under and other new delivery methods are gaining acceptance • Branding is possible with banners

  37. Research • Log files • ASP log conversion • Metrics for e-marketing analysis • Surveys

  38. Challenges • Integration of e-marketing and conventional marketing creates a “blurred channel” • Hybrid advertising • Marketing mix • Consumer expectations • Technological limitations • New innovations • Legal issues

  39. Conventional Media • Addition of web address creates hybrid advertising • Web site can degrade or enhance conventional efforts • Visitor experience becomes critical • Diffused metrics

  40. Technological Limitations • Different browsers • Online software (plug ins java –flash etc.) • Screen resolutions • Bandwidth speed • Operating systems • Server technology

  41. Legal Issues • Privacy policies • Spam • International commerce • COPPA • 19 states have anti Spam laws • Dozens pending in congress • Online disclosure

  42. Emerging Technologies. • Wireless poised to triple over the next few years • Smart chips could track BM purchases • Higher bandwidth could allow for increased streaming media on sites • MPEG4 – good enough for video? • ???

  43. 80% Still Dial-up Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

  44. One Example

  45. One More

  46. CRM

  47. Digital innovations become an integral part of life • Breaks down logistical barriers • Offers greater flexibility and power • Shrinks time and business • Simplifies complex business processes • Enables effective communication and collaboration • Opens up new markets

  48. The 21st Century • Explosive increase in innovation • Extraordinary dynamism of technology • Exceptional increases in productivity • Myriad new forms of business activity • Expanding opportunities • Level playing field

  49. The eMarketing Association • Accreditation body for CeMA and CeM Certifications • Certifications now offered in over 250 schools • Largest association representing e-marketing exclusively • Recognized globally • Extensive e-marketing resources

  50. CeMA Certification Certification—a sign of competence and achievement in this field—is particularly important in a competitive job market. While relatively few advertising, marketing, and public relations managers currently are certified, the number of managers who seek certification is expected to grow. Source: United States Department of Labor