e-marketing first part

8/12/2019 E-marketing First Part

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The Indian Institute of Planning and Management New

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E MARKETING

THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

NEW DELHI

THESIS

ON

E-marketing

SUBMITTED TO: EXTERNALGUIDE:

MS. NEENA RAWAT Mr.Vivek

SUBMITTED BY:

Arpan Chatterjee

BATCH: 2011-13

THESIS ID: Fall/11-13/M-117/Delhi/IIPM (IMI)

IIPM, NEW DELHI


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Abstract

The Internet has long since passed the buzzword stage of business adaptation. It is now

recognized as an integral part of any new successful business venture. Doing business on the

Internet is no different than its brick and mortar counter-part. It is not the old-school business

mantra of location, location, location, but rather the new-school mantra of visibility, visibility,

visibility. Of the billions of pages existing in the Internets ethereal online universe only 16%

are indexed by search engines. This is in high contrast to the 73% of customers who use

search engines to find new websites.

However, search engines are not the only way to drive traffic to a site. A successful e-

marketing approach will be integrated to drive traffic through multiple channels. Press

releases can drive interested consumers from online news placements, white papers will help

turn researchers into purchasers, online advertising (banner ads, newsletter sponsorships, etc.)

can entice prospective clients from other sites to browse a particular site as well, viral

marketing and Web-based guerrilla marketing campaigns can bring tremendous brand

awareness and drive results, but are a notoriously finicky audience. Businesses with

established customer relationships, especially in the B2C realm, can repeatedly tap their

existing client base to drive new traffic and increase sales through active e-mail engagements

that entice customers to make impulse purchases multiple times throughout the year.

Businesses can also effectively use offline ad campaigns to drive new visitors to a site. This is

inherently a bit more difficult as it requires customers to remember a website address, which

is not always easy. The most effective offline campaigns are integrated with online campaigns

to take a comprehensive approach to customer engagement. A targeted direct mailing with

personalized e-mail and telephone follow-ups that drive clients to a Web-based demo of

services will ultimately attain much better results than the more limited traditional mail-only

approach.

In short there is more to e marketing than a Web site presence and an integrated e-marketing


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approach is the only way to ensure that businesses reach the widest possible target audience

and successfully achieve online nirvana.

The objective of this project is to assess the vastness in market strategizing that internet has

brought to the field of marketing. This project also overviews the various e-marketing

techniques and their successful implementation in the world of business. The future trends

and the potential of e-marketing as from the perspective of business is also evaluated.


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CERTIFICATE OF ORIGINALITY

This is to certify that the thesis titled E-marketing, is prepared and submitted by me to

Indian Institute of Planning & Management, New Delhi in partial fulfillment for the award of

the Master Degree in Business Administration, and this report has not been submitted

elsewhere.

Date: Arpan Chatterjee

Batch: 11-13

ID:Fall/11-13/M-117/Delhi/IIPM (IMI)

IIPM, New Delhi


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THESIS TOPIC APPROVAL LETTER

Dear Student,

The topic of your thesis will be E-marketing.

Pls start working on the same & ensure that you collect relevant & updated information on the

same.

Student Name 022STUDENT_NAME_022

"">Arpan Chatterjee

Thesis ID Generated: Fall/11-13/022FIELD022

"">M/022Topic_Id022

"">117/022Centre022

"">Delhi/022Course022

"">IIPM (IMI)

IIPM Center 022Centre022 "">Delhi

Specialization Area 022FIELD022 "">M

Topic 022Final_Topic022 "">Market Research

StudyE-marketing

Name of the Guide 022Alloted_Guide022"">Vivek Thota

Phone No. 022Guides_Contact022

"">9958806116

Email

022Guides__Email022

"">[email protected]

For all correspondence with me and your external guide, you should always mark a cc mail

[email protected],mentioning your thesis id in the subject of the mailer.

Best Regards,

Neena Rawat

Department of Academics(Thesis), IIPM Delhi
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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ACKNOWLEDGEMENT

The present work is an effort to throw some light on E-marketing. The work would not

have been possible to come to the present shape without the able guidance, supervision and

help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance received by Ms.

Neena Rawat (IIPM) who helped and supported me during the course of completion of my

thesis.

Arpan Chatterjee


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TABLE OF CONTENTS

Abstract

Certificate of Originality

Thesis Topic approval letter sent over email

Synopsis

Acknowledgment

Chapter-1- Introduction

Chapter-2- Research Objective and Methodology

Chapter-3- Marketing: A Basic Overview

Chapter-4- E-marketing: An Introductory Overview

Chapter-5- E-marketing Techniques

Chapter-6- Data Collection & Analysis

Chapter-7- Conclusion

References


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Introduction

Even before the Internet there were many different ways to advertise, in different media

such as radio, TV, newspapers, magazines, as well as via telemarketing or pamphlets. Usually

the goal was to get a company- and/or product name, a statement etc. communicated to as

many people as possible for the smallest price possible.

When the Internet arose, a number of search options became available. Companies had the

option to advertise themselves on a larger scale. Due to advertising perception at the time,

many businesses were assumed to have great value, and thus traded on the stock exchange at

extraordinary high rates. This collapsed in 2001 at what is commonly known as the dot-com

bubble. After the dotcom collapse, the Internet was almost disregarded because of many

failing website-based businesses that had expectations to the market and assumptions about

consumers. However, both consumers and companies continued exploring online options.

Soon more substantial business models emerged; search advertising1 and e-commerce were

the new possibilities. Enhancements in targeting advertising, and understanding how

websites maintain visitors, became relevant. Researching consumers behaviour and buying

patterns online began to interest scholars.

Due to the technologies available today, as well as broadband implementations in most

homes, advertisers are able to make massive leaps and create global campaigns (become

globalised in just at few minutes). Leaps that will be more obvious as a new generation of

professionals take control.

So, let us face the facts: The Internet is no longer a medium of new economy, an

Ebusiness as a term has rather been rendered obsolete. The Internet is used in any and all

industries, as a branding and marketing tool, as an internal communication tool, and as the

start of most business transactions. Today companies use the Internet as one of the most

powerful tools in a big number of ways. The Internet has unlocked a large number of search

options and new ways of highlighting the important aspects of any item. Thus marketing has

been redefined via the Internet, and given even small businesses a chance to promote and

brand their products on a larger scale. The Internet has therefore experienced enormous

growth in online advertising, since its inception in the early 1990ies. It is still however


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executed in the usual one-way-communication, as it has always been done.

Success stories in advertising are easy to find: Amazon is using their customers to market

products to others via the other buyers, who looked at this, also looked at this. Coca Cola

are storytelling via the Internet, MasterCard use humourous clips, and through that viral

marketing.

But are all companies aware of the possibilities, and do they use them?

We live in a world of connectivity; the number of mobiles phone subscriptions in Denmark

outnumbers the number of inhabitants. The number of text messages increases year-by-year,email and instant messenger programs set records each year. All of which points out that

people are in need of being in contact with others.

When the Internet connects people across oceans and continents, dating services,

networking pages and blogs, forums and chat rooms are increasing every minute, are the

companies aware of the consumers need to be connected and be part of a dialogue?


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Research Methods and Objectives


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Research Objectives

Recent developments on internet have created new possibilities of doing business and

communicating with customers. And these technology developments have led to the

foundation of e-commerce. Ecommerce sales kept growing in the recent years and it has been

foreseen by researchers that this growth will continue even more in the next years.

Consumer behaviour online has changed as well and online users have become all-powerful,

due to large numbers and promiscuousconsumers visit a lot of websites, but purchase from

just a few. Also, the new social consumer uses the internet to be connected and receive

information.

As a result, internet became a new intermediary between companies and their customers. It is

already acknowledged as an important marketing communication channel competing with the

traditional ones, such as TV, Magazines, and Radio. Internet provides different ways of online

communications with different communication tools that need a better judgment of their

effect on consumer communication.

Research Methodology

This discusses the various steps which are taken to fulfill the objectives in the study. It also

discusses the sampling procedure and the various sources of information which is collected

for further analysis

Research Question:

The research answers the following questions:

a) What exactly is electronic marketing?

b) What are the strategies that are used by companies for marketing electronically?

c) What is the future of electronic marketing?


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The researchs objective is to find out the growth of electronic marketing. Also, why are

companies gaining so much growth potential by going online? For this purpose, secondary

data was collected from company websites and magazines. The last objective was to study the

trends and future of the e-commerce industry. In this case, data was collected from secondary

sources.

Relevance of the research:

The fields of marketing and advertising have experienced

dramatic changes because consumers have Mode of Data Collection:

changed the way they research and shop for goods and services. As more people turn to the

Internet, businesses increase their chances for success by building an online presence through

e-marketing, or marketing online. Marketing in the digital world is crucial for entrepreneurs

and small-business owners and can significantly impact business growth.

Limitations of the research

Though the research contains reliable results but still it suffers from a number of limitations.

Firstly, the research was carried in a limited time period when there was academic pressure as

well so there was a time constraint. Secondly, the sample size taken is small which is mainly

due to the time constraint. Thirdly, the source of primary data was very limited as a fair

number of industry opinion could not be collected due to the factor that they were not ready to

discuss their strategies so openly.


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MARKETING: A BASIC OVERVIEW


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Marketing

This Chapter is aimed to serve as the general introduction to this thesis, reviewing the essence

and modern concept of marketing and establishing the connection to online marketing

concepts.

Modern concept

What is to understand under the term Marketing? Many wrongly consider it to be solely

sales and advertising. Truth is, sales are only the tip of the marketing iceberg and one of its

numerous modern concepts.

Marketing appeared as a respond to the need to provide more close control over the sales

management of the enterprises. Formation of marketing as a science started at the beginning

of twentieth century as a subject in leading US universities, making the main focus on

commerce and advertising. The result of practical implementation of marketing theory was

the creation of the marketing department in large enterprises to conduct marketing research

and provide services.

The modern concept of marketing implies a wide range of functions, along with sales and

advertising, targeted on a deeper understanding of the cause and gaining of effective result.

The chart of the core marketing concepts (P. Kotler, 2005 p. 6), shown below, illustrates the

way all the marketing concepts are interlinked between each other, forming the closed circle,

the general concept of marketing.


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Figure 1: "Core marketing concepts"

Needs, wants and demand

Maslows hierarchy of needs identifies 5 major groups of needs: psychological, safety and

security, social, esteem and self-actualization, prioritized from low to high, as illustrated on

the figure below. It is expected, that a human will first satisfy low-level needs, as

psychological, safety and social, before satisfying high-level needs as esteem and self-

actualization.

When a need it is not satisfied, it is usually eliminated. Therefore, a conclusion can be made,

that people who have means to satisfy a need will do that, whereas people who dont have the

means will eliminate the need to fit to available resources.

Nevertheless, a choice is a result of complex interaction of cultural, social, personal and

psychological factors. Some of the factors can be influenced and this is what a marketer can

use to develop and evaluate the product, establish its distribution and sales promotion in a

way to gain the strongest response from the target audience.

Needs, wants,

and demands

Marketing

offers

(products &services)

Value and

satisfaction

Exchange,transactions &

relationships

Markets


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Figure 2: "Maslow's Hierarchy of Needs"

Human wants the form that a human need takes as shaped by culture and individual

personality

To gain sufficient results an organization should constantly ask a question what makes our

customers behave the way they do? People have a narrow amount of needs but almost an

unlimited amount of wants they expose. And the specific of wants is evolving, under the

influence of market expansion and appearance of more and more objects arousing interest.

Nevertheless, people have to choose products corresponding to their financial abilities and

balance the pricequality (or satisfaction) ratio. This is where a want turns into demand.

Demands human wants that are backed by buying power

Consumers can rank various consumption possibilities, determining their preferences for

getting the best bundle offered for the amount of money they have.

Self-actualization

Esteem

Social

Safety and security

Psychological


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The market offering

Peoples needs, wants and demands imply the existence of the offering to satisfy it.

Market offer some combination of products, services, information or experiences

offered to a market to satisfy a need or want

If to look down on the theory of microeconomics, the market demand is dictated by the

market price of the product or the bundle of products a consumer wants. Therefore, if the

price on the desired product goes up, demand goes down and the other way round. Market

offering or supply is linked to demand inversely, meaning that supply will grow with the

growth of the price on the market, whereas demand will decline. The market price is set in

the equilibrium point between demand and supply.

Not only products are considered as marketing market offering, also services, activities or

benefits that are intangible and do not result in ownership of anything can be included. So,not making a mistake of just selling a product or service, a marketer is promoting a complete

solution or experience for customers.

Value, satisfaction and quality

Customer value the customers assessment of the products overall capacity to satisfy his

or her needs

In other words, customers do not buy products; they are more interested in the solution the

product will bring to an existing problem. For example, one trend in retail marketing in

grocery business is category management, implying the challenge to manufacturers to prove

to the retailers that brands add to the value of the category. If to put it very simple: the

manufacturer makes potato crisps; the retailer merchandises salty snacks, when the customer

just buys lunch.


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This leads us to the next point: customer satisfaction the personal opinion of the products

performance in comparison to the expectations. If the experience from the product is below

the stated expectations, a customer feels dissatisfaction and the other way round. The

perceiving of the product performance is very subjective, but if the customer is satisfied, he is

more likely to repeat the purchase and tell others about the good experience. Exchange,

transaction and relationships

Exchange the act of obtaining a desired object from someone by offering something

in return

Marketing as a matter occurs when people satisfy their needs through the process of

exchanging a medium of exchange to the object of desire.

Markets

Market the set of all actual and potential buyers of a product or service

This is the finalizing concept, bringing the circle together. From this point of view, marketing

is a working process on or with the market, the main target of which is to satisfy customers

needs and wants.

If the entrepreneur paid enough attention to discovery and investigation of customers needs,

development of the product, settlement of the appropriate price and establishment of the

stable distribution channels, the sales should conduct. Then where is the main focus? The

definition of marketing stated above implies marketings contribution to organization and its

demands.

Modern successful companies have one common distinctive featurethey are very customer-

oriented and strongly committed to marketing. It is essential, as even the very best,

innovative and quality product will not gain success if it is not bringing superior value and

high level of satisfaction to the customers. Therefore, customers are one of the most

important components of the marketing process creating value and satisfaction for the

customers is considered to be the basis of modern marketing.


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Marketing strategies

Marketing strategy the marketing logic by which the business unit hopes to achieve

its marketing objectives

General principles

Any economic strategy is combining theoretical and practical aspects of entity functioning on

the market, taking prevailing tendencies as a basis. Nevertheless, marketing strategies find

their routes in the military. There are five basic types:

Direct attack

A direct attack implies using available resources to full extend and in many business

situations results in exhausting budgets and people. In the case of direct attack the company

may have little or none resources left for the further penetration to the market. Therefore, this

tactics is useless towards an opponent who is strongly in the leading position. Consequently,

if there is not strong differentiation of the product, price, place and promotion on the market,

success chances are approaching zero.

Indirect attack

Indirect attack is the most efficient approach due to conserving the greatest amount of

strength. When applied to business strategy, the main focus is given to the undeveloped,

neglected or just emerging segments of the market, as initial point on market entry. Following

the entry, market strategy is determined by using the suitable marketing mix to create acompetitive advantage. In this case, the available resources are mobilized to fulfill the need in

the segment and create the long-term fruitful relationships with the customers.

Envelopment attack

This type of attack consists of two major stages:

1. Focus on a specific market (the same way as in indirect attack).

2.

Identification of additional segments and development of suitable offer to envelopethe entire market.


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Bypass attack

The core meaning of the bypass attack is the expansion of the areas of interest to the

unrelated segments of the market. Thought it is deceiving the competitor, it may also cause a

negative effect of being spread and dispersing the main focus from any single area.

Guerrilla attack

This strategy involves small, and, on the first glance, chaotic attacks with the aim to lead the

opposing manager into making a strategic mistake. For example, selective price cuts,

promotional bursts, supply interference, etc. Mainly, it is used for a small company,

competing against a large corporation.

Having those principles in head, it is possible to form them into an actionable plan.

Indirect approach

As discussed above, indirect approach strategy implies a company entering the undeveloped

segments of the market. The actions taken when using this approach include creation of

uncertainty among the competitors, - so they have to guess what the actual strategy really is;

quickly filling up the gaps in the undeveloped segments by targeted products or services;

gaining access to the supply chain by add-on products or services. All the actions should be

sharp, fast and causing confusion for the competitors.

Differentiation

It is considered to be the most effective way to apply indirect approach by means of

differentiating the components of marketing mix. Differentiation should be considered in

such areas as customer service (including faster delivery, after purchase follow-up,

packaging, management training, etc.) and intangibles as reliability, reputation, prestige and

value. Even when the competitors products may seem identical, differentiation in the areas

stated above will add up to the overall image of the product and the company in general.


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Concentration

Concentration is an important part of the marketing strategy, following up the indirect

approach and differentiation. Its success is determined by the ability to distract competitor

and seek out an opportunity in a developing segment. But it is important to take into

consideration that concentration is effective only to extend one can successfully differentiate

from the competitors.

Marketing mix

Taking all that into consideration, its time to proceed to marketing mix , as a core structure

under development of the marketing strategy. Marketing mix is usually composed of so-

called 4P components Product, Price, Place and Promotion. Every of the four primary

components suggest strategy possibilities. For example, it is extremely helpful when

comparing performance of the company to the competitors one to determine is the chosen

strategy is the most suitable one. The table below is providing a guideline for creating a

strategy out of a marketing mix.

The basis, when working with the marketing mix, is to effectively determine the factors that

can possibly become a distinctive competitive advantage on the market.

For example, a company should select a feature of an offered product or service that a

competitor cannot match, put quality and service as a general priority and try to focus on

premium priced segment. Maintaining a market-driven orientation it is easier for the

company to establish long-lasting relationships with customers through timely identifying

and fulfilling their needs and wants.

Constant investigation of opportunities, which can contribute to the long-lasting goals, like,

for example, new exporting situation, is a must. Timely investigation of the opportunities

may as well result in the identification of the emerging niche on the market and lead to

successful expansion.


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In the marketing discipline, the Internet serves as a distribution channel,

communication medium and fertile ground for new products. It has also lowered

marketing costs and put tremendous downward price pressure on products sold online

Established and old-school marketing practices are not rejected with the technological

advancement, they are being adopted. Now they are being used on a different scale, as

globalization has brought a lot more space for the activities.

Product Price Promotion Distribution

Quality

Features

Options

Style

Brand name

Packaging

Sizes

Services

Warranties

Returns

Versatility

Uniqueness

Utility

Reliability

Durability

List price

Discounts

Allowances

Payment period

Credit terms

Advertising:

- Customer and trade

Personal selling:

-

Incentives

-

Sales aids

- Samples

- Training

Sales promotion:

- Demonstrations

-

Contests

- Premiums

- Coupons

- Manuals

Telemarketing

Internet

Channels:

- Direct sales

force

- Distribution

- Dealers

Market coverage:

- Warehouse

locations

- Inventory

control systems

- Physical

transport


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Patent protection

Guarantees

Publicity

Table 1: Creating strategies out of the marketing mix

e-marketing first part

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