Welcome to eMarketing Overview A new marketing profession 15% of all Impressions/ 5% of Budgets Corporate Culture Changes Ownership of website Integration Hybrid advertising Resistance Privacy Expectations.
Download ReportTranscript Welcome to eMarketing Overview A new marketing profession 15% of all Impressions/ 5% of Budgets Corporate Culture Changes Ownership of website Integration Hybrid advertising Resistance Privacy Expectations.
Welcome to eMarketing Overview A new marketing profession 15% of all Impressions/ 5% of Budgets Corporate Culture Changes Ownership of website Integration Hybrid advertising Resistance Privacy Expectations e-commerce only represents a minor fraction of total GDP... 2002 US GDP Projection e-commerce (3%) Traditional retail (97%) eCommerce Metrics do not reflect the reality of eMarketing Branding Customer research Driving offline sales Integration with offline marketing A Quick look at the Internet Why Is The Internet 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 Evolution Of The Internet Phase One: Portals Everywhere Phase Two: Simple Transactions Phase Three: The Digital Decade The Internet Grows 600 million people access the internet worldwide 2002 e-commerce 1 trillion dollars (est.) 68% increase in e-commerce 2000 vs. 2001 Over 1 billion web pages % Of U.S. Adults Online U.S. Adults Online Year Adults Online 1995 1997 1998 9% 30% 56% 2000 2001 63% 64% Source: Harris Interactive What are they doing online? More time More money More services Fewer sites Time spent online 9 6 8.2 3 4.3 0 Oct 1999 Oct 2001 Source: Jupiter 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: 1999 47 2001 63 Impact of internet on media consumption 23% Watch TV less often 20% Read magazines less often 15% Read newspaper less often 9% Listen to radio less often Source: (USA) Scarborough National Internet Study Reaching consumers throughout their media day 7.00am 9.00am TV Print Breakfast News Morning Paper Outdoor Journey To Work Radio Online Breakfast Show Check News/ Mail 11.00am Messenger 1.00pm Paper/Mags 3.00pm Out for Lunch Drive Time 5.00pm Messenger 7.00pm 9.00pm 11.00pm News, Sport, Finance Leisure Mags News, Ent, Sport Journey Home Drive Time Web Cast The Internet supports Brick & Mortar Initiate Relationship in Information Stage Reach New Customer Sets Reduce Inventory Needs Internet Contribution to Bricks and Mortar Develop Customer Knowledge Increase Product Selection Develop Aftermarket Contact … and Bricks & Mortar supports the Internet Brand Reinforcement and Trust Place to touch and test-drive product Reach a larger customer base Bricks & Mortar Contribution to Internet Capture Aftermarket Profits Capture urgent and impulse buys Facilitate Delivery Role of Bricks and Mortar Customers must be able to move back and forth seamlessly ... Internet Bricks and Mortar Awareness Research Shop Buy Transform Bricks and Mortar Own Dispose/ Repurchase Marketing Objectives To support sales increases To encourage trial To create awareness To inform about a feature or benefit To remind To reassure To create an image To modify attitudes The Consumer Buying Process Purchase Decisions Product Choice Marketing Inputs: Product Consumer Location Choice Brand Choice Price Other Choices Promotion Place Psychological Inputs Culture Attitude Learning Perception The Marketing Implementation Process Marketing Strategy Tactical Decisions Internal Factors Implementing the Marketing Mix Monitoring Results Adaptation of strategy/tactics External Factors Marketing Management Process Analysis/Audit – where are we now? Objectives – where do we want to be? Strategies – which way is best? Tactics – how do we get there? Implementation – getting there Control – ensuring arrival The Change in Corporate Culture 1996 – most web sites are managed by IT /MIS 2002 – 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 Are the Following IT or Marcom Functions? Corporate communications Advertising Corporate identity Product positioning Market Research IT/MIS Continues to Dominate Web Management Lack of technical understanding by marketers Fast changing technology can create confusion Corporate politics plays a role Efficient Organization Administration Operations Marketing/Sales MIS Service Support Webmaster Effective Organization Administration Operations Marketing Webmaster Service Support MIS Site Design for E-marketing Merchant account checkout Visitor expectations Surveys Content Technical considerations Color Plug ins Product descriptions Company information 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 No Other Media Has All of the Advantages of eMarketing. Period. Cost effectiveness Global reach Interactive response Measurability Personalization Real-time feedback 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 Online Marketing Tools Are About 6 Years Old E-mail marketing Site design for e-commerce Viral marketing Affiliate marketing Banner advertising Search engines Online publicity Research CRM Site Design for E-marketing Merchant account checkout Visitor expectations Surveys Content Technical considerations Color Plug ins Product descriptions Company information What Works on a Site ? 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 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 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 Viral Marketing Dancing baby 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” Affiliate Marketing Partnership and affiliate programs are booming Cooperation between online companies Commission programs and banner exchange programs lead this channel 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 Offline Media Addition of web address creates hybrid advertising Web site can degrade or enhance off line efforts Visitor experience becomes critical Diffused metrics Channel blur Research Log files ASP log conversion Metrics for e-marketing analysis Surveys Challenges Integration of e-marketing and conventional marketing creates a “blurred channel” Hybrid advertising Marketing mix Consumer expectations Technological limitations New innovations Legal issues Technological Limitations Different browsers Online software (plug ins java –flash etc.) Screen resolutions Bandwidth speed Operating systems Server technology Legal Issues Privacy policies Spam International commerce COPPA 19 states have anti Spam laws Dozens pending in congress Online disclosure 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? ??? 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 Internet Related Jobs Are NOT Just in I T Source: Center for Research in eCommerce, graduate School of Business, University of Texas at Austin eMA Employment Survey 70% of all management level marketing positions require Internet abilities and/or experience. 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 The st 21 Century Explosive increase in innovation Extraordinary dynamism of technology Exceptional increases in productivity Myriad new forms of business activity Expanding opportunities Level playing field The eMarketing Association Accreditation body for CeMA and CeM Certifications Certifications now offered in over 250 schools Largest association representing e-marketing exclusively Sponsors over 50 conferences/seminars a year Members in over 30 Countries Extensive network of partners and resources Questions ?