E-MARKETING

The Technology-Embedded Marketing

-- Karuna K

E-Marketing, also known as Internet marketing or online marketing, is the process of selling a product or service through virtual shops. A virtual shop is the website of a marketer, where all the information regarding a particular product or service is provided. Marketers mostly use their own websites to advertise products and services online. The Internet has also brought a new online shopping experience for the customers. This article studies the benefits of online marketing and the importance of customer relationship management in online marketing for converting leads into profits.

The Internet has evolved as a major marketing and sales channel for organizations. Corporate websites are increasingly emerging as major communication tools for marketing department in organizations. A corporate website can be accessed from anywhere and at any time. It can be customized and used as a primary lead generation tool that combines with Customer Relationship Management (CRM) and Sales Force Automation (SFA) systems. E-Marketing involves the optimum utilization of the versatility of the Internet. The key features of e-marketing comprise online brand management, Search Engine Optimization (SEO) and Web content management. In today's wired world, websites are emerging as the best marketing tools. Marketers are using these to advertise, as well as sell their products as these are cost-effective. Experts anticipate that there will be an increase in the number of virtual marketers (e-marketers) simultaneously increasing the level of the competition in the market. This will certainly prove to be an added advantage to the customers.

E-Marketing - Definition

Dave Cheffey, trainer and consultant for Marketing Insights Limited, defines Internet Marketing as "achieving marketing objectives through applying digital technologies." Digital technologies that support e-marketing include: media such as websites, e-mail, databases and other wireless or mobile and digital TV. The goal of online marketing is to help marketing activities aimed at achieving profitable acquisition and customer retention through a multiple channel buying process and customer lifecycle. Thus, e-marketing is an all-inclusive term for marketing products and services through the Internet. Essentially, it aims at strategies that are used to market a product or a service online. SEO, search engine submission and copywriting encourages customers who visit the website to take plan, strategies for website designing. Product promotions through the net and e-mail marketing are some of the marketing strategies used in e-marketing.

Benefits of E-Marketing

The benefits of e-marketing can be viewed from two different perspectives, first, from the customer's point of view and second, from the company's point of view. E-Marketing allows customers to shop online without any geographical or time constraints. According to Mohd. Suki, customers enjoy window shopping and do not feel the pressure to purchase, which is the case in traditional shopping. Darian identifies the dimensions of convenience for online shoppers. These include: minimizing time spent on shopping, flexible shopping time, helping the customers to avoid visiting shops for buying, minimizing the chances of impulse buying in response to a dvertisements. From the company's point of view, the benefits of e-marketing may be as follows:

• Allows Easy Communication: It is easy for a firm to communicate with its customers, suppliers, resellers, employees, etc., with the help of the Web.

• Helps in Focusing a Target Market: Web enables a company to focus on a specific target market and offer a marketing mix specially devised for a particular market.

• Helps in Getting Information on Time: A firm can get information, both from free and fee-based ones, about almost any facet of its business from websites. With the help of the Internet, a company can operate in `real-time', which means the ability to communicate, gather information, and in a timely manner. The time lags associated with other marketing tools are much shorter on the Web.

• Reduces Costs: Blank, Inkpen, Morrell, Oliver and Sloan contend that advancements in information technology, especially the Internet, have enabled suppliers to sell their products directly to their consumers, reducing costs drastically. This, in turn, helps in reducing postal, as well as inventory costs. Sales personnel can follow-up with clients in a more efficient manner.

• Dynamism/Flexibility: The dynamic nature of the Internet enhances customer usability and also lets a company develop strategies that can easily fit into the marketing mix.

• Global Possibilities: With the help of the Internet, a company can effectively and inexpensively communicate with its various constituencies around the world, thereby increasing its reach.

• Multimedia Capabilities: The latest multimedia capabilities/technologies are advantageous to both customers and the marketers. They enhance customer experiences by offering them world-class images, display and review of the products.

• Interactivity: Unlike traditional advertising, which is unidirectional (from company to audience), the Internet can be deployed in an interactive manner (from company to audience and from audience to company), almost similar to personal selling.

The Multifaceted Potential Marketing Roles for the Internet

Having reviewed the benefits of the Internet in marketing, it is clear that the Web has the potential to play a multifaceted role in marketing. Hence, each firm must determine which roles to pursue and how to prioritize them. Some areas where the Internet could be effectively used include:

• Project Positive Image: Firms can project themselves better on websites with its new features, designs (colors, graphics), etc.

• Customer Service: According to surveys, many companies use the Internet with an aim to supplement their traditional customer service.

• Channel Relations: The Internet helps in creating better understanding between the channel members to coordinate their distribution strategies, etc.

• Purchasing and Inventory Management: Company's purchases and inventory management can be enhanced through the Web.

• Database Development: As a result of the online interaction between a company and its suppliers and customers, extensive marketing database can be developed.

• Mass Customization: An attractive feature of the Internet is that it allows companies to engage in mass customization, a process by which mass-market goods and services are individualized to satisfy a specific customers need, at a reasonable price.

• Advertising and Sales Promotion: Through the Internet, a company can promote its goods and services. It can use banner ads on portal sites, be listed at search engines, and present multimedia messages and special sales promotions at its own Website.

• Multi-channel Marketing: It helps firms in their attempts to reach out to the customers through various channels. However, distribution format varies from product to product and person to person.

Service switching and customer satisfaction

A key issue for online service providers is customer's movement in and out of the marketplace. Some movement is service discontinuance where individuals try a service but subsequently decide to stop using the service category altogether. Changing behavior patterns of customers can be particularly damaging for subscription or membership-based service firms where customers commit to ongoing relationships and services are continuously provided. So, it is essential to learn about those customers who generally change their behavior patterns.

E-Marketing and CRM

It is a fact that a company that understands its customers the best will have an edge over others in today's highly competitive world. Today, customers are increasingly becoming more sophisticated in their buying behavior. Their perception towards a product has changed from the notional value of a product or service to the values based on business relationship. Internet has brought multitude of changes in the business arena. This has created a strong competitive environment where intense competition strengthens the need for strong brand identity and for developing strategies to increase customer loyalty. Enhancing customer loyalty through building relationships can materially contribute to gaining competitive advantage.Customer relationships are very complex and competitors cannot replicate once ties of loyalty have been established.

Internet is a business tool that can support firms in the pursuit of competitive advantage. It stresses on the dependence in already established strategies of the company that asserts its ability to succeed rather than a totally new approach to the company. Reichheld F, Markey Jr and Hopton C also reflect the above view in their argument for the recreation of the golden rule governing the pursuit of loyal and profitable customers. The concept of the golden rule says that those customers who have been with the company since a long time are more beneficial and also the expected returns are always on the rise over the years of relationship, provided the company deploys the resources to create loyalty. One very important issue is that satisfied customers are always loyal and are keener to invest in trusted brands. Loyalty of the customers become all the more significant when it comes to e-marketing because of the uncertainties associated with it. Therefore, customers look for firms they can rely upon. In such a context, trust occupies a higher position than price. Jarvenpaa, in his study, tested a model of consumer attitude towards specific Web-based stores and found that the customer's trust of the retail store was affected by perception of the store's reputation and size. The attitude towards the store is positively related to the level of trust, and the risk perception of the customer in buying from the shop is only inversely related to it. The customer's intention to buy from the store is affected by his attitude and risk perception.

Risk perceptions related to online shopping are mainly attached to aspects, such as privacy and security, uncertainty of product quality, uncertainty of payment systems, etc. Trust is interwoven with risk. Customers do not easily show interest in purchasing online as they have a sense of insecurity. This is because, in the case of e-marketing, shoppers would not have much information about the sellers until a purchase is made. Mayer, in his article, "An Integration Model of Organizational trust", stated that ability, an inclination to do well or a kind act and steadfast adherence to a strict moral or ethical code, are the main elements of trustworthiness. For a good relationship to continue to work, a company needs a good CRM program, with well-defined policies that enhance customer loyalty.

Successful implementation of CRM offers a range of benefits to a firm such as it reduces communication costs, helps in better market segmentation thereby increased sales, identifies target customers, etc. This not only helps in increasing the consumer's level of satisfaction but also in customer retention. Although industry players accept the importance of CRM, many find it difficult to combine customer service strategies with service delivery. In toto, the focus remains on the development of capabilities, rather than implementation of services to improve customer relationship.

Moreover, customer satisfaction is not in itself sufficient to encourage repeat visits and purchases; it is only one of the ways to establish a relationship. It is customer's perception of value and his buying experience that contribute to retention. So, a company's capability of building marketing profiles is one of the most important aspects in loyalty creation strategies. Once the company attains success in creating loyalty among the customers, the factor will strengthen their relationship. So, the need of the hour is to build customer relationship strategies, which will create a sense of trust among the customers towards the organization.

Conclusion

Like all other fields, Internet has brought many drastic changes in the field of marketing. But to what extent the emergence of technology in the marketing arena has been successful is a matter of debate. India, a country moving on fast track in the technological highway, however has, but a low adoption rate of technology in marketing, as well as e-commerce. The low penetration rate of computer and network-enabled systems into rural areas, lesser Internet connectivity time, etc., may be some of the reasons for the lesser popularity and penetration of e-marketing and e-commerce in India. Executing the sale in a consistent manner, efficient and effective government policies against cyber crimes, proper coordination of the system by the e-retailers, providing clear cut time for the delivery of the product and making the payment system more secure may enhance the scope of e-marketing in India.

About the Author

Karuna K is a Research Associate at INC, Thrissur, Kerala. The author can be reached at karunaknair@gmail.com.