MNM3714
E-Marketing
Study Unit One
The world of E
1.1 The ë” in evolution (or is it revolution?)
1.1.1 Internet
- Often referred to the net and is defined as the world wide interconnected network of computer networks
- This is possible as it provides easy access to millions of individuals ad corporate internet user and
information is available to everyone.
- However, not all information may be accessible for public viewing as companies will not share all details
willingly.
- Web is what customer, business and users interact with
- Internet is infrastructure that allows the data to move from one computer to the next
- Web empowers people to explore certain topics from many different sources
Drivers of the Internet & Web Growth – 2 key drivers
*First key driver: Convergence of a number of factors:
- Growth in personal computers: key to success of internet (laptops, netbooks, ultra-books)
- Growth in local networks linking computers together within businesses (wireless, wired, Bluetooth):
together have helped spread the reach of internet to all users
- Growth in global communications infrastructure (fixed lines, fibreoptics, satellite technologies): in turn
supports internet
- Growth in cellular technologies (3G/4G, multi-feature phones, smartphones): brings internet within reach to
every individual with such device
- Advent of tablets that can connect wirelessly over cellular networks
- Growth of micro-chipped embedded products (fridges, cars, cameras): intelligent, can store data with other
devices over internet
- Continued growth in globalization: brings people together, sparks competitiveness, results in research
development
- Growth in the information/knowledge society: world is ‘oiled’ increasingly with information (internet
facilitates access to info for businesses & individuals)
*Second key driver: Commercialisation of the web
Realised in 1990’s that web been commercializes, could not only get access to info but could also advertise
& sell products & services on web with:
- Development of secure encryption technologies
- Ability to transfer funds across web
- New business models through leveraging value from unique nature of web
According to Hagan (2014), e-commerce in SA is still in its infancy and major blocks are
- Excessive delivery charges
- Credit care payment mentality
- Secuiry concerns
- Return and exchange policy
- Limited nature of site content and product information
What makes the Web such a powerful business tool?
- Amount of information that can be stored and updated and accessibility
- Information that was on paper and cost high to distribute to all members can be made available quickly
- Information distribution on the web in immediately available globally
- Information can be in different forms such as text, sound, video, images
- Web in interactive
- Web is available 24/7 & 365
- Easy to use and intuitive
- Affordable for both the user and supplier of information
- Reaches the masses
- Information can be customised for the customer
- Sales can be direct and some sales can even be downloaded for immediate use
Page 1 of 62
,1.2 Some interesting dates
ADD IMAGE
1.3 E-Technologies
- E refers to electronic and E-marketing can be defined as marketing by any electronic means
- Includes electronic billboards, fax-on-demand, information kiosks, cellular phones
- Focus is online channels meaning internet based channels including e-mails, social media
- Other terms include internet marketing, web-based marketing and digital marketing
- Emarketing: Addresses the use of the web as a marketing channel. Uses the web to create websites
- EBusiness: broadest of the descriptions that one will find to describe the online world and includes other
aspects and can be defined as doing business electronically. Two companies that work in conjunction as
partners to integrate their systems and usually use the web for this.
- Ecommerce: was used to describe all online commercial activities, it represented business to consumer
worlds. Now it is used to describe online transactions (buy and pay online)
- ETailing: sales are conducted online either by bricks-and-mortar retailer or retailer like online shops
- ELearning: involves the computer technology to facilitate and enhance the pearning and includes
multimedia, web and mobile to exchange and collaborate information
- Social media marketing: online marketing that seeks to plug into social interactions between online and
individuals. Such as Facebook, LinkedIn, YouTube
- EGovernment: is the use of information and communication technologies (ICT), WAN’s, Internet, mobile
computing and government agencies.
Page 2 of 62
,Study Unit Two
From marketing to e-marketing
2.1 Nature of traditional marketing
- Marketing is defined as the activity, set of intuitions, process for creating, communicating, delivering and
exchanging offerings that have value for customers, clients, partners and society.
- Set of activity and process
- Creation of product or service
- Promotion of the product to potential customers
- Setting of a price for the product and service
- Facilitating of the purchase of the product or service by the customer
- Delivering of the product or service to the customer
- Involves the exchange of something from the customer to receive something from the seller
- Product or service received in the exchange process must deliver value to the customer. Value is
determined by the product or service satisfying the need of the customer at the price.
- Companies designs and makes and offer and the customer must accept the price and agrees to pay
- Deal or exchange should translate into value for the company and its partners and should have enough
profit to build.
- Companies involves in the exchange are suppliers, logistics, banks and other service
- Company does not operate alone and is part of a society and should not destroy the environment they work
in
- Company must make effort to understand customer wants and needs and deliver to them
- Company must try to understand the customer and the environment in which they operate known as market
research
- Marketing is a management activity that needs to be planned, implemented and controlled
Most fundamental tasks of marketing
- Identify target market
- Study the target audience's needs & wants
- Develop a market offering to meet needs & wants
- Communicate benefits & need-satisfying attributes to target audience
- Deliver market offering at the right time & place
- Customer: A person or entity that buys products from a company (buyers of the product)
- Consumer: Individuals that physically consume the products (final users of product)
- Client: people of entities that buy products for commercial use
Customer needs and wants
- Need is something a human must have
SELF
ACTUALIS
ATION
PURSE
INNER
TALENT
CREATIVIT
Y
SELF ESTEEM
FULFILME
ACHIEVEMENT;
NT MASTERY;
RECOGNITION; RESPECT
BELONGING - LOVE
FRIENDS; FAMILY; SPOUSE; LOVER
SAFETY
SECURITY; STABILITY; FREEDOM FROM FEAR
PHYSIOLOGICAL
FOOD; WATER; SHELTER; WARMTH
Page 3 of 62
, Value proposition
- Value: The usefulness or benefit that a person gets from a product
- Customer Value: The product value + associated services value + personnel value + image value
- Thus, the value to a customer of a product or service is not just its ability to satisfy customer needs but it is
also:
- The value of the associated service (example 1-year guarantee)
- Helpfulness and insight of the staff
- The logo and brand image associated with the product (prestige associated with products)
- Other costs for the customer in acquiring the product is time, effort, energy spent
- Net value (customer value proportion) delivered to the customer is
Total customer value gained – Total customer cost paid
The Marketing concepts
- The marketing concept involves the organization or integration of all the firm’s resources with the aim of
satisfying customer needs profitably while not harming society at large
- Four components of the marketing concept
- An integrated system approaches
- A customer focus
- An objective driven approach with a focus on making a profit
- Not harming society at large
Marketing Mix
- In satisfying customer needs, the company must manage a process consisting of:
- Identifying & creating a product or service
- Allocating a price to the product that consumers will be willing to pay (still offers attractive profit)
- Finding ways of delivering the product to consumers (referred to as the place)
- Communicating and promoting the product to consumers (4 P’s of marketing)
Marketing environments
Micro Environment Market Environment Macro Environment
Environment within the firm Environment outside the firm Broad and highly dynamic
environment outside of the firm
and its partners
Firm deals with managing various The firm has SOME influence Company has NO
resources (finances, control
staff, equipment), to develop a
market offering to
potential customers.
Company has control Includes suppliers, banks, Political, legal, sociocultural,
over internal activities service economic, technological,
providers, distributors, physical, international
intermediaries, customers, environments all fall under the
competitors macroenvironment
Firm can change products,
services, adapt marketing mix,
acquire additional capital or staff,
train staff
- Political: political organisations and events that occur within a country and even outside it
- Legal: all local, national and international laws that impact the business activities of companies
- Socio-cultural: demographics, psychographics and behaviour of people within a country and includes
lifestyles, aesthetics, religion, beliefs, values and education
- Economic: economy of the country and the many factors that influence it such as inflation, interest rates,
economic growth, exchange rates
- Technological: includes the internet and social media and technologies like the telephone, television, car
and aircraft.
- Physical: such as geographical and natural features in a country like climate or relief that impacts
businesses
- International: no country operate in isolation and developments in any part of the world can have an impact
on the businesses locally
Page 4 of 62
E-Marketing
Study Unit One
The world of E
1.1 The ë” in evolution (or is it revolution?)
1.1.1 Internet
- Often referred to the net and is defined as the world wide interconnected network of computer networks
- This is possible as it provides easy access to millions of individuals ad corporate internet user and
information is available to everyone.
- However, not all information may be accessible for public viewing as companies will not share all details
willingly.
- Web is what customer, business and users interact with
- Internet is infrastructure that allows the data to move from one computer to the next
- Web empowers people to explore certain topics from many different sources
Drivers of the Internet & Web Growth – 2 key drivers
*First key driver: Convergence of a number of factors:
- Growth in personal computers: key to success of internet (laptops, netbooks, ultra-books)
- Growth in local networks linking computers together within businesses (wireless, wired, Bluetooth):
together have helped spread the reach of internet to all users
- Growth in global communications infrastructure (fixed lines, fibreoptics, satellite technologies): in turn
supports internet
- Growth in cellular technologies (3G/4G, multi-feature phones, smartphones): brings internet within reach to
every individual with such device
- Advent of tablets that can connect wirelessly over cellular networks
- Growth of micro-chipped embedded products (fridges, cars, cameras): intelligent, can store data with other
devices over internet
- Continued growth in globalization: brings people together, sparks competitiveness, results in research
development
- Growth in the information/knowledge society: world is ‘oiled’ increasingly with information (internet
facilitates access to info for businesses & individuals)
*Second key driver: Commercialisation of the web
Realised in 1990’s that web been commercializes, could not only get access to info but could also advertise
& sell products & services on web with:
- Development of secure encryption technologies
- Ability to transfer funds across web
- New business models through leveraging value from unique nature of web
According to Hagan (2014), e-commerce in SA is still in its infancy and major blocks are
- Excessive delivery charges
- Credit care payment mentality
- Secuiry concerns
- Return and exchange policy
- Limited nature of site content and product information
What makes the Web such a powerful business tool?
- Amount of information that can be stored and updated and accessibility
- Information that was on paper and cost high to distribute to all members can be made available quickly
- Information distribution on the web in immediately available globally
- Information can be in different forms such as text, sound, video, images
- Web in interactive
- Web is available 24/7 & 365
- Easy to use and intuitive
- Affordable for both the user and supplier of information
- Reaches the masses
- Information can be customised for the customer
- Sales can be direct and some sales can even be downloaded for immediate use
Page 1 of 62
,1.2 Some interesting dates
ADD IMAGE
1.3 E-Technologies
- E refers to electronic and E-marketing can be defined as marketing by any electronic means
- Includes electronic billboards, fax-on-demand, information kiosks, cellular phones
- Focus is online channels meaning internet based channels including e-mails, social media
- Other terms include internet marketing, web-based marketing and digital marketing
- Emarketing: Addresses the use of the web as a marketing channel. Uses the web to create websites
- EBusiness: broadest of the descriptions that one will find to describe the online world and includes other
aspects and can be defined as doing business electronically. Two companies that work in conjunction as
partners to integrate their systems and usually use the web for this.
- Ecommerce: was used to describe all online commercial activities, it represented business to consumer
worlds. Now it is used to describe online transactions (buy and pay online)
- ETailing: sales are conducted online either by bricks-and-mortar retailer or retailer like online shops
- ELearning: involves the computer technology to facilitate and enhance the pearning and includes
multimedia, web and mobile to exchange and collaborate information
- Social media marketing: online marketing that seeks to plug into social interactions between online and
individuals. Such as Facebook, LinkedIn, YouTube
- EGovernment: is the use of information and communication technologies (ICT), WAN’s, Internet, mobile
computing and government agencies.
Page 2 of 62
,Study Unit Two
From marketing to e-marketing
2.1 Nature of traditional marketing
- Marketing is defined as the activity, set of intuitions, process for creating, communicating, delivering and
exchanging offerings that have value for customers, clients, partners and society.
- Set of activity and process
- Creation of product or service
- Promotion of the product to potential customers
- Setting of a price for the product and service
- Facilitating of the purchase of the product or service by the customer
- Delivering of the product or service to the customer
- Involves the exchange of something from the customer to receive something from the seller
- Product or service received in the exchange process must deliver value to the customer. Value is
determined by the product or service satisfying the need of the customer at the price.
- Companies designs and makes and offer and the customer must accept the price and agrees to pay
- Deal or exchange should translate into value for the company and its partners and should have enough
profit to build.
- Companies involves in the exchange are suppliers, logistics, banks and other service
- Company does not operate alone and is part of a society and should not destroy the environment they work
in
- Company must make effort to understand customer wants and needs and deliver to them
- Company must try to understand the customer and the environment in which they operate known as market
research
- Marketing is a management activity that needs to be planned, implemented and controlled
Most fundamental tasks of marketing
- Identify target market
- Study the target audience's needs & wants
- Develop a market offering to meet needs & wants
- Communicate benefits & need-satisfying attributes to target audience
- Deliver market offering at the right time & place
- Customer: A person or entity that buys products from a company (buyers of the product)
- Consumer: Individuals that physically consume the products (final users of product)
- Client: people of entities that buy products for commercial use
Customer needs and wants
- Need is something a human must have
SELF
ACTUALIS
ATION
PURSE
INNER
TALENT
CREATIVIT
Y
SELF ESTEEM
FULFILME
ACHIEVEMENT;
NT MASTERY;
RECOGNITION; RESPECT
BELONGING - LOVE
FRIENDS; FAMILY; SPOUSE; LOVER
SAFETY
SECURITY; STABILITY; FREEDOM FROM FEAR
PHYSIOLOGICAL
FOOD; WATER; SHELTER; WARMTH
Page 3 of 62
, Value proposition
- Value: The usefulness or benefit that a person gets from a product
- Customer Value: The product value + associated services value + personnel value + image value
- Thus, the value to a customer of a product or service is not just its ability to satisfy customer needs but it is
also:
- The value of the associated service (example 1-year guarantee)
- Helpfulness and insight of the staff
- The logo and brand image associated with the product (prestige associated with products)
- Other costs for the customer in acquiring the product is time, effort, energy spent
- Net value (customer value proportion) delivered to the customer is
Total customer value gained – Total customer cost paid
The Marketing concepts
- The marketing concept involves the organization or integration of all the firm’s resources with the aim of
satisfying customer needs profitably while not harming society at large
- Four components of the marketing concept
- An integrated system approaches
- A customer focus
- An objective driven approach with a focus on making a profit
- Not harming society at large
Marketing Mix
- In satisfying customer needs, the company must manage a process consisting of:
- Identifying & creating a product or service
- Allocating a price to the product that consumers will be willing to pay (still offers attractive profit)
- Finding ways of delivering the product to consumers (referred to as the place)
- Communicating and promoting the product to consumers (4 P’s of marketing)
Marketing environments
Micro Environment Market Environment Macro Environment
Environment within the firm Environment outside the firm Broad and highly dynamic
environment outside of the firm
and its partners
Firm deals with managing various The firm has SOME influence Company has NO
resources (finances, control
staff, equipment), to develop a
market offering to
potential customers.
Company has control Includes suppliers, banks, Political, legal, sociocultural,
over internal activities service economic, technological,
providers, distributors, physical, international
intermediaries, customers, environments all fall under the
competitors macroenvironment
Firm can change products,
services, adapt marketing mix,
acquire additional capital or staff,
train staff
- Political: political organisations and events that occur within a country and even outside it
- Legal: all local, national and international laws that impact the business activities of companies
- Socio-cultural: demographics, psychographics and behaviour of people within a country and includes
lifestyles, aesthetics, religion, beliefs, values and education
- Economic: economy of the country and the many factors that influence it such as inflation, interest rates,
economic growth, exchange rates
- Technological: includes the internet and social media and technologies like the telephone, television, car
and aircraft.
- Physical: such as geographical and natural features in a country like climate or relief that impacts
businesses
- International: no country operate in isolation and developments in any part of the world can have an impact
on the businesses locally
Page 4 of 62
