The presentation outlines the 7 stage cycle of Internet Marketing and then discuss the Online Marketing Mix in detail. Taking it further a special introduction to centaur, the hybrid consumer, the presentation then discuss the two major methods of consumer segmentation in the digital age and examines the changing dynamics of Consumer behaviour in the digital world. The closing is done with the Customer Relationship Management and e-CRM.

1. Ms. Anubha Rastog
Astt. Prof, Vidya School Of Busine
2017-1

2. E-marketing
• Explores the new tools offered by the world of the internet
• Explores the realm of social media
• Investigates the mindset of the individual who ventures online
• Scrutinizes the characteristics of the virtual medium which can be of value to the end
consumer.
• Identifies how companies can leverage the online world as a media vehicle, for Brand
Communication and proliferation, building brand and stakeholder relationships and
Customer Relationship Management.
• Understands the consumer online experience
• Examines Traffic Building activities for marketers.
• E-marketing is the use of Information Technology in the processes of creating,
communicating, and delivering value to the customers, and for managing customer
relationships in ways that benefit the organization and its stakeholders.
• E-marketing is the result of Information Technology applied to traditional marketing.
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3. The Seven-Stage Cycle of Internet Marketing
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4. The Online Marketing Mix
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5. Anubha Rastogi | VSB

6. Online mix options
• Product
• Extend range
• Narrow range
• Online-only products
• Develop new brand
• Migrate existing brand
• Partner with online brand
• Price
• Differential pricing:
• Reduce online prices due to price
transparency and competition
• Maintain price to avoid cannibalisation of
offline sales
• New pricing options (software, music):
• Rental
• Pay per use
• Reverse auctions (B2B)
• Dynamic pricing (concert tickets)
• Place = avoiding channel conflicts
• Disintermediation – sell direct
• Reintermediation – partner with new
intermediaries
• Countermediation:
• Form new intermediaries
• Partner with existing intermediaries
• Distance from intermediaries
• Promotion
• Selective use of new online tools for
different stages of the buying process
and customer lifecycle
• Online only campaigns
• Integrated campaigns – incorporating
online tools into communications mix
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7. • Service
• People
• Automate – use web self-service, offer customer choice
• Process
• Change process for service – contact strategies
• Physical evidence
• Site design – differentiate or support brand
• Fulfilment quality
Characteristics of an Online Offer
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An online offer is typically characterized by the following features:
• Renders high levels of convenience for the consumer
• Offers good customer service
• Saves consumer time and money
• Provides an enjoyable shopping experience
• Merchandises in the context of product offerings and product information
• Provides site design and transaction security

8. Anubha Rastogi | VSB

9. The Potential of Digital Marketing
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10. Centaur
aaaaaaa
Traditional
Consumer Cyber Consumer
Centaur
A Hybrid Consumer: A combination of
Traditional and Cyber, Rational and
Emotional, and Wired and Physical.
• Digitally Driven Segment
• Calculated Shoppers
• Basic Digital Consumers
• Retail Scouts
• Brand Scouts
• Eternal Shoppers
The Online Consumer
Marketing challenges brought by the Centaur
1. Customerization
2. Virtual Communities
3. Channel Options
4. Competitive Value Equation
5. Choice Tools
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11. Who is the Centaur?
• McKinsey Report
1. Connectors: New users; more offline purchase
2. Samplers: Light users
3. Simplifiers: Efficiency seekers
4. Routiners: Go online for information but not primarily interested in shopping
5. Surfers: Heavy users; spend lots of time online; Searching multiple domains
6. Bargainers: Online price comparison; Shop for the best buy
7. Funsters: Looking for information in entertainment-oriented domains
Myths of the Traditional Consumer
1. Only the elite want customerization
2. Price is the bait set by the seller
3. The consumer is on the couch
4. Location, location, location
5. Consumers are islands
6. Customers will accept what you tell them
Myths Of The Cyber Consumer
1. People don’t want to be troubled with shopping
2. Efficiency is all that matters
3. Consumers want to get the best price
4. Consumers are either online or offline
5. Ease of visiting stores will lead to more purchasing
6. The Internet is inherently fascinating and attractive
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12. Consumer Segmentation in the Virtual World
The following are two different ways of consumer segmentation in the virtual world:
• Consumer segmentation using a combination of the three dimensions of consumer
need recognition, website characteristics search, and consumer pre-purchase
Judgment
• Consumer segmentation using a combination of the two dimensions of consumer
traits and online shopping issues faced by consumers
Consumer Segmentation: 1st Method
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13. Consumer Segment Profiles
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14. Consumer traits:
• Willingness to take risk
• seeking joy in surfing the Internet
• saving time while shopping online, and
• feeling socially aware while surfing the Internet
Consumer Segmentation: 2nd Method
Consumers and online shopping issues:
• Product risk issues
• Interactive risk issues
• Transaction security issues
• Privacy issues

15. Consumer Segments Profiles
Targeting: The Internet is well suited for the following two targeting strategies:
• Niche Marketing
• Micro Marketing Anubha Rastogi | VSB

16. The Online Value
• Fixed Pricing
• Price Leadership
• Promotional Pricing
• Dynamic Pricing
Factors affecting costs in the online domain are:
• Online Customer Service, which can be expensive.
• High Distribution costs for specific customers as products need to be shipped separately.
• Affiliate programs tend to be expensive as they involve rewarding the referring parties.
• Maintenance and development of websites involve costs.
• The internet spells low order processing fee due to self service
• The internet world stands for Just-in-time inventories and low overheads.
• Costs of distribution of certain digital products like music which is downloadable online
are very low.
• Animated shop bots offer online customer service at low cost by replacing service
personnel.
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17. E-Promotion
Goals of Online Marketing Promotion include:
• Driving Prospects to the website
• Increasing website registrations
• Increasing online transactions
• Building consumer engagement and involvement.
Website Characteristics That Affect Online Purchase Decision
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18. Web Characteristics and Cultural Implications
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19. The Consumer Decision Process and Supporting Communications
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20. A General Model of Consumer Behavior
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21. A Model of Online Consumer Behavior
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22. E-Marketing and CRM
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23. CRM and the Online Domain
• CRM software packages aid the interaction between the customer and the company, enabling the company
to co-ordinate and integrate all of the communication efforts so that the customer is presented with a
unified message and image.
• CRM coordinates touch points around a common view of the customer. As the business gets larger and
number of customer relationships to be managed increased exponentially, it calls for integration of
different business departments to collaborate the customer information to provide a unified view of
customer interaction to serve the customers better - In the context of the online world, this integration is
required across all the elements of the virtual medium, where the company has an online presence viz.
Websites, blogs, online communities etc.
• Customer Relationship Management processes shape the interactions between a company and its
customers with the goal of maximizing current and lifetime value of customers for the company, as well as
maximizing satisfaction for customers.
CRM as a Business Strategy
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24. The Foundation of CRM
Customer Roles
CRM Strategic Capabilities
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25. CRM Processes
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26. Types of Customers in the Customer Life Cycle
CRM Bonds
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27. E-CRM meets E-marketing
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28. CRM Applications
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29. The Collaborative Web and the Enterprise
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30. Why More People Don’t Shop Online
• Major online buying concerns:
• Security
• Privacy
• Shipping costs
• Return policy
• Product availability
• Shipping issues/delays
Internet Marketing Challenges in India
• Governance Law and Regulation
• Cultural Issues
• Lack of technical infrastructure
• Marketing Philosophies & Channels
• Online Shopping Worries
• Fear Factor
• Unreliable delivery Mechanism
• Credit Card fraud and usage
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