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The Power of eMarketing

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The Power of eMarketing Powered By Docstoc
					The Power of
 eMarketing
Robert Fleming
  President and CEO
 eMarketing Association
         The Internet is Different
   A rare example of a modern functional anarchy
   No official censors, no bosses, no board of
    directors, no stockholders
   No one ―owns‖ the Internet, there is no ―Internet,
    Incorporated‖
   The ―Internet‖ itself, doesn’t even officially exist
    as an entity
   The ―Internet‖ never charges for anything. Each
    group accessing the internet is responsible for
    their own machine and access
Evolution Of The Internet
  Phase One:
    Portals
  Everywhere

   Phase Two:
     Simple
  Transactions

Phase Three:
      The
Digital Decade
            The Internet Grows
   600 million people access the internet
    worldwide (2002 est.)
   2002 e-commerce 1 trillion dollars (est.)
   68% increase in e-commerce 2000 vs. 2001
   Over 1 billion web pages, 40 million sites
Rapid Increase in Internet Use in
the United States Across States –
Over half the population

                        August 2000                                                                               September 2001




  Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
 Internet Use at Any Location, 1998 and
                  2001
     As a Percent of U.S. Population
100
  90                                                                          85
  80                                                        75.6

  70                                         65.4                      63.2
  60                                                    51.2                               51.5
                                                                                                         1998
  50
                             38.9        39.2                                                            2001
  40
                                                                                       29.9
  30
                14.3     16.8
  20
  10      4.1
   0
         3-4 years      5-9 years     10-13 years 14-17 years 18-24 years 18-24 years
            old            old            old         old     old in school old not in
                                                                             school



Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
What are they doing online?
   More time
   More money
   More services
   Fewer sites
     Online Activities 2001 – Internet users Age 3+


         On-Line Education Course         3.5
                                          5.2
Trade Stocks, Bonds, Mutual Funds*          8.8
                                                  16.4
                 On-Line Banking*                 17.9
                                                  17.3
    View TV/Movies, Listen to Radio                18.8
                                                         24.8
      Government Services Search*                           30.9
                                                                34.9
        Product/Service Purchases                                  39.1
                                                                     42.1
            News, Weather, Sports                                                61.8
                                                                                   67.3
                            E-mail                                                             84.0

                                      0           20            40          60            80          100
Time spent online
    9



    6
                      8.2

    3
          4.3

    0
        Oct 1999    Oct 2001
                               Source: Jupiter
   75% of online customers say the Net makes
    their lives better
   79% of Net users utilise it for information for
    offline purchases
   AOL online average minutes per day:



    1999         2001
     47                  63
    Impact of Internet on
    media consumption
   23%   Watch TV less often


   20%   Read magazines less often


   15%   Read newspaper less often


   9%    Listen to radio less often

                  Source: (USA) Scarborough National Internet Study
Reaching consumers
throughout their media day

               TV            Print          Outdoor         Radio           Online
  7.00am                                      Journey
           Breakfast News   Morning Paper     To Work      Breakfast Show   Check News/
                                                                                Mail
  9.00am
 11.00am                                                                    Messenger

  1.00pm                     Paper/Mags        Out for
                                               Lunch         Drive Time     News, Sport,
                                                                              Finance
  3.00pm
  5.00pm                                                                    Messenger

  7.00pm                    Leisure Mags
                                            Journey Home     Drive Time      Web Cast
  9.00pm
             News, Ent,
               Sport
 11.00pm
e-commerce only represents
a minor fraction of total GDP...

          2002 US GDP Projection
                  e-commerce
                      (3%)




                Traditional retail
                     (97%)
       The Internet has to support
             Brick & Mortar

            Initiate Relationship   Reduce Inventory
            in Information Stage        Needs



Reach New            Internet Contribution to            Develop
Customer                                               Aftermarket
                        Bricks and Mortar                Contact
   Sets




             Develop Customer       Increase Product
                Knowledge               Selection
… and Bricks & Mortar must
support the Internet

                   Brand
                                    Reach a larger
               Reinforcement
                                    customer base
                 and Trust


   Place to
  touch and            Bricks & Mortar                Facilitate
  test-drive        Contribution to Internet           Delivery
   product



                  Capture
                                    Capture urgent
                Aftermarket
                                   and impulse buys
                   Profits
Customers must be able to move
back and forth seamlessly ...

                            Internet
Role of Bricks and Mortar




                                                                          Bricks and Mortar
                                                                                        Dispose/
                            Awareness   Research        Shop        Buy          Own
                                                                                       Repurchase


                                                   Transform Bricks and Mortar
Marketing Employment Is
        Growing

   ―Employment of advertising,
  marketing, promotions, public
relations, and sales managers is
expected to increase faster than
 the average for all occupations
         through 2010 ‖
   Source: United States Department of Labor
  eMA Employment Survey


 70% of all management level
marketing positions require Internet
   abilities and/or experience.
Internet Related Jobs Are NOT
          Just in I T




      Source: Center for Research in
     eCommerce, graduate School of
  Business, University of Texas at Austin
        The Change in Corporate
               Culture

   1996 – most web sites are managed by IT /MIS
   2001 – marketing and IT/MIS manage web sites
    jointly (in some cases)
   Marketing needs to ―own‖ web site
   IT/MIS are the mechanics – marketing the pilot
   Marketing becomes more collaborative and less
    autonomous
    Are the Following IT or Marcom
              Functions?


   Corporate communications
   Advertising
   Corporate identity
   Product positioning
   Market Research
    IT/MIS Continues to Dominate
          Web Management


   Lack of technical understanding by
    marketers
   Fast changing technology can create
    confusion
   Corporate politics plays a role
           Efficient Organization


Administration   Operations   Marketing/Sales      MIS

                  Service        Support        Webmaster
        Effective Organization


Administration Operations   Marketing   MIS

                            Webmaster

                             Service

                             Support
                  Outlook
   Increasing shift of web site responsibility from
    MIS to marketing
   Increased technical knowledge required from
    marketers
   Internet marketing accounts for 15% of all
    advertising impressions and only 5% of
    marketing budgets
   The gap will close between impressions and
    budget
   Marketer must understand new tools
    No Other Media Has All of the Advantages
             of eMarketing. Period.
   Cost effectiveness
   Global reach
   Interactive response
   Measurability
   Personalization
   Real-time feedback
    But E-marketing Suffers From
   Lack of data – 5 years vs. decades for
    magazines, radio
   Lack of understanding of technology by
    marketers
   Fast moving and turbulent arena
   Changing technologies
   Lack of trained personal
   Senior management barriers
   Corporate culture
    Online Marketing Tools Are Less Than
       6 Years Old (That’s First Grade)
   E-mail marketing
   Site design for e-commerce
   Viral marketing
   Affiliate marketing
   Banner advertising
   Search engines
   Online publicity
   Research
   CRM
      Site Design for E-marketing

   Merchant account checkout
   Visitor expectations
   Surveys
   Content
   Technical considerations
   Color
   Plug ins
   Product descriptions
   Company information
What Works on a Site ?
Common Influences on Online Purchase
Shipping fees                      92%
Prices                             92%
Product availability               86%
Special promotions or incentives   76%
Selection                          69%
Order tracking                     66%
Clearly identified delivery time   65%
Return policy                      63%
Ease of use                        62%
Site performance/speed             51%
Source: Vividence
               Search Engines
   Pay for position taking a strong lead
   Search engine optimization (SEO) critical
   Majority of users rely on search engines for
    navigation
   Targeted audience
   Accounts for over 70% of new site visitors
   Turbulent arena
              E-mail Marketing
   E-mail is the number one app with over 90% of
    internet users
   Issues such as browser differences, targeting,
    and privacy are critical
   Spam, creates a major negative for e-mail
    marketing, laws passed in 19 states
   Only 3 years of significant use
               Viral Marketing
   Hot Mail was one of the first examples of viral
    marketing
   Another ―e‖ term for ―word-of-mouth‖ advertising
   Bulletin boards, e-mail, chat rooms are the
    major conduits for viral campaigns
   What is ―buzz‖
             Affiliate Marketing
   Partnership and affiliate programs are booming
   Cooperation between online companies
   Commission programs and banner exchange
    programs lead this channel
            Banner Advertising
   Volatile history with sharply declining click
    through rates
   New forms such as java, active x,
   Pop-ups, pop-under and other new delivery
    methods are gaining acceptance
   Branding is possible with banners
                    Research
   Log files
   ASP log conversion
   Metrics for e-marketing analysis
   Surveys
                  Challenges
   Integration of e-marketing and conventional
    marketing creates a ―blurred channel‖
   Hybrid advertising
   Marketing mix
   Consumer expectations
   Technological limitations
   New innovations
   Legal issues
           Conventional Media
   Addition of web address creates hybrid
    advertising
   Web site can degrade or enhance conventional
    efforts
   Visitor experience becomes critical
   Diffused metrics
       Technological Limitations
   Different browsers
   Online software (plug ins java –flash etc.)
   Screen resolutions
   Bandwidth speed
   Operating systems
   Server technology
                Legal Issues
   Privacy policies
   Spam
   International commerce
   COPPA
   19 states have anti Spam laws
   Dozens pending in congress
   Online disclosure
        Emerging Technologies.
   Wireless poised to triple over the next few years
   Smart chips could track BM purchases
   Higher bandwidth could allow for increased
    streaming media on sites
   MPEG4 – good enough for video?
   ???
                   80% Still Dial-up
       Digital                         Other
   Subscriber Line                     0.5%
       (DSL)
       6.6%



  Cable Modem
     12.9%




                                                                   Dial-up
                                                                   80.0%

Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey
                                            Supplements
One Example
One More
Digital  innovations become an integral
part of life
Breaks    down logistical barriers
Offers    greater flexibility and power
Shrinks    time and business
Simplifies   complex business processes
Enables  effective communication and
collaboration
Opens     up new markets
              The   21 st   Century
   Explosive increase in innovation
   Extraordinary dynamism of technology
   Exceptional increases in productivity
   Myriad new forms of business activity
   Expanding opportunities
   Level playing field
      The eMarketing Association
   Accreditation body for CeMA and CeM
    Certifications
   Certifications now offered in over 250 schools
   Largest association representing e-marketing
    exclusively
   Recognized globally
   Extensive e-marketing resources
          CeMA Certification


 Certification—a sign of competence and
 achievement in this field—is particularly
  important in a competitive job market.
While relatively few advertising, marketing,
 and public relations managers currently
are certified, the number of managers who
  seek certification is expected to grow.
        Source: United States Department of Labor
For a Copy of This Presentation
            Go To:
Http://www.eMarketingAssociation.Com/ppt.htm
Questions