Three main functions of markets

(1)

E-Marketing

Market, Consumers, Advertising, Search Engine

Hidra Amnur, SE, M.Kom

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Agenda

Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

• Markets and e-marketspace

• E-marketing strategies

• Product development strategy

• Pricing on the Internet

• Branding and traffic building

(2)

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Categories of consumers

• Impulsive buyers:

purchase quickly

• Patient buyers:

make some comparisons first

• Analytical buyers:

do substantial research

before buying

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Functions of markets

Three main functions of markets

• Matching buyers and sellers

• Facilitating the exchange of information, goods,

services, and payments associated with market

transactions

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E-Marketspace

A marketplace in which sellers and buyers exchange goods

and services for money (or for other goods and

services), but do so electronically.

Components

• Other business partners

• Support services

• Digital products

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E-Marketing Strategies

The essential issues of marketing are also referred

to as the four Ps of marketing mix:

• Product:

Physical item or service that a company is selling

• Pricing:

Amount the customer pays for the product

• Placement:

How the product/service gets to the customer,

sometimes called “

place”

referring to “where” a product/service

is sold

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E-Marketing Strategies

(cont.)

There are extra tree Ps as the extended

marketing mix:

• People:

Right person, trained well, motivated

• Process:

Providing services to customers

• Physical evidence:

Case studies, testimonials

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Types of E-Markets

• E-storefront:

A single or company Web

site where products and services are sold

• E-mall (online mall):

An online

shopping center where many stores are

located

• some are merely directories

• some are actually large click-and-mortar

retailers (e.g., shopping.com)

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Types of E-Markets

(cont.)

• E-marketplace:

An online market, usually B2B, in which

buyers and sellers exchange goods or services; the three

types of e-marketplaces are private, public, and consortia

• Private e-marketplaces:

Online markets owned by a single

company; can be either sell-side or buy-side marketplaces

• Sell-side e-marketplace:

A private e-market in which a company

sells either standard or customized products to qualified companies

• Buy-side e-marketplace:

A private e-market in which a company

makes purchases from invited suppliers

• Public e-marketplaces:

B2B markets, usually owned and/or

managed by an independent third party, that include many

sellers and many buyers; also known as exchanges

• Consortia:

E-marketplaces owned by a small group of large

vendors, usually in a single industry

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Market segmentation

• The identification of specific portions of a

market and targeting them with specific

advertising messages

• Divides the pool of potential customers into

segments

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Market segmentation

(cont.)

Marketers have traditionally used three categories

of variables to identify market segments

• Geographic segmentation:

location

• Demographic segmentation:

age, gender, family size,

income, education, religion, or ethnicity

• Psychographic segmentation:

social class, personality,

or their approach to life

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Acquisition, conversion, retention

• The first step in doing business on the web is to

acquire or draw visitors to the site itself

• The second step is converting those first time

visitors into customers by persuading them to make

a purchase or register with the site, etc.

• Customers who return to the site one or more times

after making their first purchases are retained

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Advertising

• Advertising is all about communication

between:

• a company/organization and its current customers

• a company/organization and potential customers

• a company/organization and its former customers

• To be effective, firms should send different

messages to each of these audiences

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Types of Internet advertising/marketing

• E-mail marketing:

powerful, economical, legal

implications, spam

• Affiliate marketing:

commission-based, benefit of

the selling site’s brand in exchange for the referral

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• Google Inc. ,an internet search engine, sells search related ads

targeted at internet users.

• Google sells ads on behalf of thousands of web sites other

than its own to attract more big-name advertisers. Advertisers

specify websites & can run animated display ads.

Example:

Affiliate

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Reactions

• The new ad features “provide more control to us” are effectively

cheaper with cost-per-impression pricing. (Julie Roehm, Dir. of

Mktg. Communications, DaimlerChrysler).

• (Less waste of ad budget)

Google w ill begin auct ioning ad placem ent s for

it s part ner sit es based on

• Online advertisers are monitoring web

surfing to better target their advertisements

towards potential buyers.

• Current: auto advertisers place ads on auto related sites.

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“

Improved

”

Ad Strategy

• For example, someone who reads personal finance articles

on a news site could be served ads for a stock broker when

he visits an automotive web site

• Ad companies are trying to get website owners to form an

advertising network to serve ads based on the content that the

surfer reads on another company’s website.

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Who

’

s using the Ads

• Starwood Hotels & Resorts utilizes behavioral targeting

by delivering ads to people who might have browsed

any Starwood branded hotel.

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Search Engine Positioning

• Potential customers find web sites in many

different ways

• Some site visitors will be referred by a friend,

others by affiliates, some will see the site’s URL

in a print advertisement or on television

• Many site visitors will be directed to the site by

a search engine

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Search Engine Positioning

(cont.)

• A search engine helps people find things on

the web

• A search engine has three major parts:

1. A spider, a crawler, or a robot

2. Index or database

3. Search utility

• Search engine positioning is also called:

• Search engine optimization

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Search Engine Positioning

(cont.)

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Search Engine Positioning

(cont.)

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Search Engine Positioning

(cont.)

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Search Engine Positioning

(cont.)

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Q & A

Conclusion