E-Marketing

E-Marketing (Electronic Marketing) are also known as Internet Marketing, Web Marketing, Digital
Marketing, or Online Marketing. E-marketing is the process of marketing a product or service
using the Internet. It not only includes marketing on the Internet, but also includes marketing
done via e-mail and wireless media. It uses a range of technologies to help connect businesses to
their customers. Internet marketing, or online marketing, refers to advertising and marketing efforts
that use the Web and email to drive direct sales via electronic commerce, in addition to sales leads
from Web sitesor emails. Internet marketing and online advertising efforts are typically used in
conjunction with traditional types of advertising such as radio, television, newspapers and magazines.

Internet marketing, also referred to as web marketing, online marketing, or e-marketing, is the marketing of products or services over the Internet. The Internet has brought media to global audience. The
interactive nature of the Internet marketing in terms of providing instant responses and eliciting
responses is the unique quality of the medium.

Internet marketing is sometimes considered to be broad in scope because it not only refers to
marketing on the Internet but also includes marketing done via e-mail and wireless media. The
management of digital customer data and electronic customer relationship management systems are
also often grouped together under the Internet marketing.

Internet marketing ties together creative and technical aspects of the Internet, including design,
development, advertising and sales.
Components of Internet Marketing:
Internet marketing evolves in a fast-phase manner. It is dynamic and requires every online business
and marketers to keep updated with the changes in the system. There are two components of Internet
marketing:

1. B-to-B (B2B):
It refers to business to business e-commerce, where business firms sell their products and services to
other business firms using the Internet.

2. B-to-C (B2C):
It refers to business to consumers, where business firms sell their products and services to the
consumers using the Internet.

Advantages of Internet Marketing:

1. Internet marketing is relatively inexpensive when compared with the ratio of cost against the reach
of the target audience.

2. Companies can reach a wide audience for a small fraction of traditional advertising budgets.

3. The nature of the medium allows the consumers to research, and purchase products and services
at their own convenience. Therefore, businesses have the advantage of appealing to the consumers
in a medium that can bring results quickly.

4. The strategy and the overall effectiveness of the marketing campaigns depend on the business
goals and the cost-volume-profit analysis.

5. Internet marketing can offer a greater sense of accountability for the advertisers.

6. Internet marketing refers to the online marketing, which is related to e-mail and wireless marketing
methods.
Disadvantages of Internet Marketing:
1. Internet marketing sometimes appear to be confusing and at times considered as a kind of virus.

2. The more you know, the more you realize the need to learn more.

3. Typical business models lasts for two years, but Internet businesses sometimes lose appeal after 6
months.

4. Intense competition.

5. Overwhelming knowledge to be learnt.

6. Too many skills to learn.

7. Takes a long time to learn many skills.

8. Too many scams on the Internet.

9. Many people think it is easy to make money on the Internet.

Difference between e marketing and traditional

marketing

1. Speed is usually much faster in digital marketing

2. Measurement is easier and more accurate
3. Channel integration is faster and more optimized
4. Customer interactions are usually not face to face (whereas they may be face to
face in traditional marketing)

e-business (electronic business)

E-business (electronic business) is the conduct of business processes on the Internet. These
electronic business processes include buying and selling products, supplies and services; servicing
customers; processing payments; managing production control; collaborating with business partners;
sharing information; running automated employee services; recruiting; and more.
E-business can comprise a range of functions and services, ranging from the development
of intranets and extranets to e-service, the provision of services and tasks over the Internet
by application service providers. Today, as major corporations continuously rethink their businesses in
terms of the Internet, specifically its availability, wide reach and ever-changing capabilities, they are
conducting e-business to buy parts and supplies from other companies, collaborate on sales
promotions, and conduct joint research. With the security built into today's browsers, and with digital
certificates now available for individuals and companies from Verisign, a certificate issuer, much of the
early concern about the security of business transaction on the Web has abated, and e-business by
whatever name is accelerating.
IBM was one of the first companies to use the term when, in October 1997, it launched a thematic
campaign built around e-business.
eBusiness (e-Business), or Electronic Business, is the administration of conducting business via
the Internet. This would include the buying and selling of goods and services, along with providing
technical or customer support through the Internet. e-Business is a term often used in conjunction
with e-commerce, but includes services in addition to the sale of goods.

E-Commerce - Business Models

Business - to - Business (B2B)
Website following B2B business model sells its product to an intermediate buyer who
then sells the product to the final customer. As an example, a wholesaler places an
order from a company's website and after receiving the consignment, sells the end
product to final customer who comes to buy the product at wholesaler's retail outlet.

Business - to - Consumer(B2C)
Website following B2C business model sells its product directly to a customer. A
customer can view products shown on the website of business organization. The
customer can choose a product and order the same. Website will send a notification to
the business organization via email and organization will dispatch the product/goods to
the customer.

Consumer - to - Consumer (C2C)

Website following C2C business model helps consumer to sell their assets like residential
property, cars, motorcycles etc. or rent a room by publishing their information on the
website. Website may or may not charge the consumer for its services. Another
consumer may opt to buy the product of the first customer by viewing the
post/advertisement on the website.

Consumer - to - Business (C2B)

In this model, a consumer approaches website showing multiple business organizations
for a particular service. Consumer places an estimate of amount he/she wants to spend
for a particular service. For example, comparison of interest rates of personal loan/ car
loan provided by various banks via website. Business organization who fulfills the

consumer's requirement within specified budget approaches the customer and provides
its services.

Business - to - Government (B2G)

B2G model is a variant of B2B model. Such websites are used by government to trade
and exchange information with various business organizations. Such websites are
accredited by the government and provide a medium to businesses to submit
application forms to the government.

Government - to - Business (G2B)

Government uses B2G model website to approach business organizations. Such
websites support auctions, tenders and application submission functionalities.

Government - to - Citizen (G2C)

Government uses G2C model website to approach citizen in general. Such websites
support auctions of vehicles, machinery or any other material. Such website also

provides services like registration for birth, marriage or death certificates. Main
objectives of G2C website are to reduce average time for fulfilling people requests for
various government services.

Five Challenges E-Marketing Faces

A bad reputation. A lot of money spent on Internet marketing over the past few years
was wasted. Why? One big reason is that the stock market distorted company
valuations and rewarded (or at least failed to penalize) profligate attempts to drive traffic
or acquire customers even if only temporarily.
Now e-marketing has a bad reputation. And half-baked metrics such as click-through
rates (CTRs) still paint a picture of inefficacy and failure. Plenty of evidence shows that
the Web is the most cost-effective branding medium available, but the Nets reputation
will need to be rebuilt one success at a time.

Marketing integration. Most major marketing efforts utilize multiple channels, on- and
offline. Email, Web advertising, and viral Internet marketing should serve concrete,
measurable objectives as part of an integrated campaign.
But coordinating e-marketing with other marketing efforts is an underdeveloped art.
Some companies have successfully linked the Net to under-the-cap promotions or to
teaser campaigns for new product launches. But all too often the Internet is tacked on at
the end of a marketing plan. Determining the strengths (and weaknesses) of the Net
relative to other channels is a project we all should be working on.

E-CRM. Imagine recognizing the needs of customers as they enter your site. Over time,
through implicit and explicit data, you learn about the preferences of each and can serve
customers based on their habits, needs, and purchase drivers. You build deep loyalty,
and you increase your share of your customers wallets.
Youve probably heard that vision pitched dozens of times. So have your clients.
Expectations that the Web will be able to deliver e-CRM are extremely high, but many
Web sites are barely usable, let alone optimized for each customer. Successfully
managing customer relationships on the Web is harder than many have made it out to
be. The industry has a lot of work to do to meet its promises.

Privacy. Things have quieted down somewhat since DoubleClick backed away from its
plans to merge its online data with offline Abacus data. But the industrys privacy issues
have not been sufficiently resolved.
Most consumers dont completely trust Web companies and shy away from offering
information about themselves. Companies that collect data responsibly are exposed to
misguided regulation that spammers and scammers invite. Sound policy, adopted
industrywide, is imperative.

Traditional advertising dollars. The discrepancy between the amount of time people
spend online and the amount top advertisers spend there is enormous. According to a
recent Morgan Stanley Dean Witter report, the top six advertisers spend less than one
percent of their advertising dollars on the Web. With dot-com ad spending in decline,
attracting traditional advertisers (mainly by addressing the four issues above) is the key
to the industrys growth.

Marketing Information System

Marketing Information System, abbreviated as MIS, means to collect, analyze and
supply marketing information to the marketing managers. The marketing
managers use this information to take marketing decisions. MIS is a permanent
and continuous process.
Marketing information includes all facts, estimates, opinions, guidelines, policies
and other data. This information is necessary for taking marketing decisions. This
information is collected from both internal and external sources. It is collected
from customers, competitors, company salesmen, government sources,
specialized agencies, so on.
MIS collects the marketing information from different sources. This information
(data) is analysed. Then, it is supplied to the marketing managers. The marketing
managers use this information for taking marketing decisions. MIS also evaluates
and stores the information. MIS uses modern technology for collecting, analyzing,
storing and supplying information.

Features of Marketing Information System MIS

Continuous system : MIS is a permanent and continuous system of collecting
information. It collects information continuously.
Basic objective : The basic objective of MIS is to provide the right-information at
the right-time to the right-people to help them take right decisions.

Computer based system : MIS is a computer-based system. It uses computers for

storing, analyzing and supplying information. It also uses micro-films for storing
information. Therefore, it is very quick and accurate.
Future-oriented : MIS is future-oriented. It provides information for solving future
problems. It is not past-oriented.
Used by all levels : MIS is used by all three levels of management, i.e. top,
middle and lower. It is used for making marketing plans, policies and strategies.
This is used to solve marketing problems and to take advantage of business
opportunities.
Sources : MIS collects information from both, internal and external sources. For
example, information is collected from company records, publications, etc.
Collects marketing information : MIS collects all types of marketing information. It
collects information about the consumer competition, marketing environment,
government policies, etc. It supplies this information to the marketing managers.
Helps in decision making : MIS supplies up-to-date and accurate information. It
helps marketing managers to take quick and right decisions.
Components of Marketing Information System MIS
Internal records :
The first component of MIS is Internal Record. Marketing managers get lots of
information from the internal-records of the company. These records provide
current information about sales, costs, inventories, cash flows and account
receivable and payable. Many companies maintain their computerized internal
records. Inside records help marketing managers to gain faster access to reliable
information.
Marketing intelligence :
The second component of MIS is Marketing Intelligence. It collects information
from external sources. It provides information about current marketingenvironment and changing conditions in the market. This information can be
easily gathered from external sources like; magazines, trade journals,
commercial press, so on. This information cannot be collected from the Annual
Reports of the Trade Association and Chambers of Commerce, Annual Report of
Companies, etc. The salesmens report also contains information about market
trends.
The information which is collected from the external sources cannot be used
directly. It must be first evaluated and arranged in a proper order. It can be then
used by the marketing manager for taking decisions and making policies about
marketing.
So, marketing intelligence is an important component of MIS.

Marketing research :
The third important component of MIS is Marketing Research. MR is conducted
to solve specific marketing problems of the company. It collects data about the
problem. This data is tabulated, analyzed and conclusions are drawn. Then the
recommendations are given for solving the problem. Marketing research also
provides information to the marketing managers. However, this information is
specific information. It can be used only for a particular purpose. MIS and MR are
not substitutes of each other. The scope of MIS is very wide. It includes MR.
However, the scope of MR is very narrow.
Marketing decision support system :
The fourth component of MIS is Marketing Decision Support System. These are
the tools which help the marketing managers to analyze data and to take better
marketing decisions. They include hardware, i.e. computer and software
programs. Computer helps the marketing manager to analyze the marketing
information. It also helps them to take better decisions. In fact, today marketing
managers cannot work without computers. There are many software programs,
which help the marketing manager to do market segmentation, price
fixing, advertising budgets, etc.