ebusiness lecture 3 - emarketing strategies. © ncc education limited v1.0 emarketing strategies...

eBusiness

Lecture 3 - eMarketing Strategies

© NCC Education LimitedV1.0

eMarketing Strategies Lecture 3 - 3.2

Introduction to Lecture 3

Topics covered:• Product-based marketing strategies• Customer-based marketing strategies• Market segmentation• Customer behaviour• Acquisition, conversion and retention of customers• Customer relationship management (CRM)



Marketing Strategies – Key Terminology

• Marketing mix – combination of elements used to sell and promote products and services

• Marketing strategy – particular marketing mix used to create unique presence in the market

• Four Ps – essential issues of marketing:– Product– Price– Promotion – Place



Product-Based Marketing Strategies

• eCommerce site organised from an internal viewpoint

• Reflects the organisation’s product design and manufacturing processes

• Works well for customers looking for a specific product

• Not so helpful for customers with a more general requirement



Customer-Based Marketing Strategies

• eCommerce site designed to meet the needs of many different types of customers

• Can have separate sections on the site that address major customer groups

• First step is to identify groups of customers with common characteristics

• B2B sites pioneered the use of this approach



Communicating With Different Market Segments

• Vital to select right communication media• Only contact with customer may be through

media and website• Challenge is to convince customers to trust

an online business



Trust Levels in Information Dissemination Models

Schneider, G. (2007) Electronic Commerce 7th Ed, p.172



Market Segmentation

“Identify specific groups of customers and target them with specific advertising messages”

• Geographic segmentation• Demographic segmentation• Psychographic segmentation



One-to-One Marketing

• Offers products and services that match the needs of a particular customer

• Enables customers to create their own personalised web pages

• Enables highly customised interactions with customers



Usage-Based Market Segmentation

“Customising visitor experiences to match the site usage behaviour patterns of each visitor or type of visitor”

• Browsers (using trigger words to turn into buyers)• Buyers• Shoppers (simplifiers, surfers, bargainers,

connectors, routiners and sportsters)



Customer Relationship Intensity

• Goal of marketing is to create strong relationships with customers

• Good customer experiences can create strong loyalty towards a company and its products

• Five stages of loyalty as customer relationship develops over time

• Customer contact points are known as touchpoints



Five Stages of Customer Loyalty




Acquiring and Retaining Customers

• Benefits of acquiring new customers are different for different revenue models

• Various costs are involved:– Acquisition costs– Conversion costs– Retention costs



Funnel Model for Customer Acquisition, Conversion and Retention




Customer Relationship Management (CRM)

• Gather information about customer behaviour and preferences

• Exploit ‘clickstream’ data• Use this to set prices, tailor promotions and

add new product features



Value of CRM

• Can track and examine the online behaviour of customers

• Use this information to provide customised, value-added products

• Provide recommendations to customers based on previous purchases

• Show current information about new products that might be of interest

• All designed to encourage customers to buy



Summary

• Different marketing strategies can be adopted, focusing on either products or customers

• Important to select appropriate media for communicating with customers

• Segmentation plays a key part in effective marketing

• Plans must be developed for both acquiring and retaining customers

• CRM can play a major role in customising relationships with online customers

ebusiness lecture 3 - emarketing strategies. © ncc education limited v1.0 emarketing strategies...

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