CU-BSC.TTM-SEM-IV-B2B Marketing

Certain customers require more resources to service than others. Fixed pricing can mean that they pay the same as less resource-intensive customers. Usage-based pricing tends to mean that these resource-intensive customers are charged the most It makes it easier to get a ‘foot in the door.’ Buyers aren’t scared off by any up-front costs, so they can quickly start using the product The disadvantages of usage-based pricing are that: The month-to-month uncertainty isn’t for everyone. Customers may dislike the volatility in their monthly bills. The organization selling the product may not like being unable to forecast revenues It can commoditize the product. If you charge for a specific task (e.g., sending an email), it becomes harder to demonstrate the broader value that your product provides Per-user pricing Per-user pricing is the most popular pricing model for SaaS companies. This is understandable, given the simplicity of the model. The purchasing company pays for each individual who can access a product or service. The more users, the higher the price. The benefits of this model are clear: ● It is easy for buyers to understand what they’re paying for. It is also straightforward to predict upcoming spend ● The company selling the product or service also benefits from the simplicity of the model. It is relatively straightforward to forecast revenue generation by month However, there are drawbacks to per-user pricing: ● You disincentivize user adoption. Purchasing companies try to avoid adding new users to a tool, e.g., by sharing a single log-in between employees ● It becomes harder to talk about the value that the product generates. By focusing on the number of users, you frame ‘value’ in terms of user numbers, not in terms of product outcomes Some companies price their solutions by active users rather than potential users. The purchasing company can sign-up as many users as they want, knowing that they’ll only pay for those using the service. This approach tends to be more successful at encouraging company-wide adoption because more employees are likely to be given access to the product. 10.3 B2B PRICING APPROACHES The above models provide a structure for your pricing, but you still have to determine a price. That is where pricing approaches and tactics come in. 151 CU IDOL SELF LEARNING MATERIAL (SLM)

There are several pricing approaches for B2B organizations to consider. Some are inward- looking – you develop pricing based on how much a product or service costs you to produce. Others are outward-looking – price is determined by what your customers are willing to pay given the product value or the current competitive landscape. Other approaches are driven by strategy – you start by considering what the company is trying to achieve, e.g., maximizing market share. Cost-plus pricing One of the most straightforward approaches to pricing. You calculate how much a product or service costs your business to make, add a fixed profit margin, and set that as your price. This approach is very inward-looking – it ignores customers’ willingness to pay and your strategic objectives – but it’s a useful starting point. And it can be the correct approach when you have just launched a solution. Marginal cost pricing Marginal cost pricing takes a similar approach to cost-plus pricing. The critical difference is that, when calculating costs, you ignore the ‘sunk’ or ‘fixed’ costs that are inherent in the development of the product or service. For example, rent is a significant overhead for restaurants, but when restaurants price a dish, they ignore it and focus on variable costs such as ingredients. After all, how do you assign the cost of rent to a specific dish? The goal of marginal cost pricing is for each product’s profit margin to cover the fixed costs. Like cost-plus pricing, marginal cost pricing is an inward-looking approach but a useful starting point. Value pricing Value pricing ignores how much a product costs to make and focuses on a product’s perceived value. Typically, companies doing value pricing are looking to charge a premium for their product. Value pricing tends to be lead to a few benefits for the company selling the product: ● It encourages them to focus on adding value to products rather than on cutting costs ● It also encourages them to understand how and why their customers value a product, which can help to inform future product development decisions Product-line enhancement If you are releasing a product comparable to existing products, your pricing options can be limited. 152 CU IDOL SELF LEARNING MATERIAL (SLM)

If the price of the new product is set too low, you will undermine the existing products. If it is too high, buyers are likely to stick with the status quo. Often it is necessary to set a price that is comparable to the existing products. For example, if the new product is slightly improved, you should set the price slightly higher than current products. This approach is outward-looking – you are considering customers’ willingness to pay given existing products – but not incredibly sophisticated. After all, you’re not considering the value of the new product or your strategic objectives. Dynamic or tailored pricing Each buyers’ willingness to pay is different. In an ideal world, each individual would have to pay the highest price they’re willing to consider for a product. In reality, tailoring pricing to each individual isn’t possible. However, it is possible to tailor pricing to some degree. Some companies do this by setting different prices at different levels depending on a customer’s location or size, e.g., prices are set lower in countries that are more price sensitive. A minority of companies can take a step further and use ‘dynamic pricing,’ where prices are continuously changed based on current market demand. Market penetration If you want to maximize your market share, you should set a lower price than competitors. Often, this can mean setting prices at levels that are unsustainable in the long-term, so the goal is to either: Drive competitors out of business and raise prices once you have more market power Use the product as a ‘loss-leader’ so that you can cross-sell more profitable solutions – this is often called ‘captive pricing’ Get a foot in the door so that you can up-sell a more profitable package in future This pricing approach can be risky. If you have strong competitors, they can cut their prices in retaliation, and the situation can descend into a price war. Therefore, this strategy is most appropriate in two situations: If the solution is relatively new, and there are no real competitors. Low prices will help you to gain share quickly and make it more difficult for competitors to enter the market If the industry is one in which low costs are only possible if you sell in high volume. Gaining a large market share will enable you to keep your costs down and make it harder for competitors to do the same Market skimming 153 CU IDOL SELF LEARNING MATERIAL (SLM)

Market skimming, like market penetration, is a pricing approach driven by a specific strategic objective. In this case, the focus is on profitability over market share. Market skimming has two critical steps: The company sets a high introductory price to attract a market segment that wants the product and is less price-sensitive Over time, the company lowers the price to appeal to different segments who are more price- sensitive This approach is most appropriate for unique products, as you are likely to have ‘early adopters’ who will pay a premium to be among the first to access the product. Understandably, skimming is particularly common in the technology industry, with Apple being the pre-eminent practitioner. 10.4 SUMMARY  Pricing is one of the main and foremost factors to attract the market. In the list of factors that involve the decision making for purchasing a product or a service the pricing gets more or equal attention with the quality.  Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product.  Pricing is a fundamental aspect of financial modelling and is one of the four Ps of the marketing mix, the other three aspects being product, promotion, and place  Pricing is an act to determine the exchange value among the power of purchasing the utility or the satisfaction consumed by the individual or an organisation or a group through purchasing the goods or services, ideas, rights etc.  This element of the marketing mix cannot be moved too frequently as it is closely associated with quality of product and services.  Price is the most adjustable aspect of the marketing mix. Prices can be changed rapidly, as compared to other elements like product, place or promotion. Changes in product design or distribution system would take a long time to be implemented.  A change in price not only directly affects revenue but has major consequences on other decisions. If price is lowered, for example, then sales is most likely to increase  Complex pricing is based on the originality of a product or service and what customers are willing to pay for it. This type of pricing is determined through 154 CU IDOL SELF LEARNING MATERIAL (SLM)

negotiation with the customer and is common for custom furniture, artworks and consulting services.  Simple pricing involves charging what competitors charge for similar goods and services. This strategy is often used by retailers and wholesalers selling commodities.  Value pricing ignores how much a product costs to make and focuses on a product’s perceived value. Typically, companies doing value pricing are looking to charge a premium for their product.  If you want to maximize your market share, you should set a lower price than competitors. Often, this can mean setting prices at levels that are unsustainable in the long-term 10.5 KEYWORDS  Pricing: It is an act to determine the exchange value among the power of purchasing the utility or the satisfaction consumed by the individual or an organisation or a group through purchasing the goods or services, ideas, rights etc.  Marginal Cost Pricing: Marginal cost pricing takes a similar approach to cost-plus pricing. The critical difference is that, when calculating costs, you ignore the ‘sunk’ or ‘fixed’ costs that are inherent in the development of the product or service.  Fixed Cost: These costs are fixed. They have no relation to the level of activity or production of the company. Even if there is no production of goods these costs will occur. For example, the rent of the factory is a fixed cost  Variable Cost: These are the costs that vary in direct proportion to the production levels of an entity. Higher the production, higher the cost and vice versa. The raw material is a classic example of a variable cost  Semi-Variable Costs: These costs also vary with the production levels. But they are not directly proportional. Say for example the salary of a manager is 10,000/- a month fixed and then 10% of his sales. This is a semi-variable cost.  Simple pricing involves charging what competitors charge for similar goods and services. This strategy is often used by retailers and wholesalers selling commodities.  Complex pricing is based on the originality of a product or service and what customers are willing to pay for it. This type of pricing is determined through negotiation with the customer and is common for custom furniture, artworks and consulting services.  Per-user pricing is the most popular pricing model for SaaS companies. This is understandable, given the simplicity of the model. The purchasing company pays for each individual who can access a product or service. 155 CU IDOL SELF LEARNING MATERIAL (SLM)

 Cost Plus Pricing One of the most straightforward approaches to pricing. You calculate how much a product or service costs your business to make, add a fixed profit margin, and set that as your price.  Marginal cost pricing takes a similar approach to cost-plus pricing. The critical difference is that, when calculating costs, you ignore the ‘sunk’ or ‘fixed’ costs that are inherent in the development of the product or service.  Value pricing ignores how much a product costs to make and focuses on a product’s perceived value. Typically, companies doing value pricing are looking to charge a premium for their product. 10.6 LEARNING ACTIVITY 1. Discuss about the factors that you take into account when fixing the price of a product? ___________________________________________________________________________ ___________________________________________________________________________ 2. Form group of students together to formulate a pricing theory for a government owned entity. ___________________________________________________________________________ ___________________________________________________________________________ 3. Have a Brain storming session on what factors contribute to Pricing Decision analysis ___________________________________________________________________________ ___________________________________________________________________________ 4. Articulate a company to each person and list out the reasons for the company to choose complex pricing over simple pricing. ___________________________________________________________________________ ___________________________________________________________________________ 5. Conduct a Group Discussion on what B2B models are advantageous. ___________________________________________________________________________ ___________________________________________________________________________ 156 CU IDOL SELF LEARNING MATERIAL (SLM)

10.7UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Pricing? 2. What are the factors that contribute to pricing? 3. What are the advantages of linear model of pricing? 4. What are the disadvantages of usage-based pricing? 5. Explain about product line enhancement? Long Questions 1. What are the factors that determine the fixation of price? 2. Describe Pricing Decision Analysis? 3. Elaborate about different B2B pricing models? 4. Explain about Market Penetration and Market Skimming? 5. What are the different aspects that are taken into account before finalising price of a product? B. Multiple Choice Questions 1. Which of the following is not one among the 4Ps of Marketing? a. Product b. Price c. Place d. Planning 2. Which of the following is not a factor that determines the fixation of price a. Cost of Production b. Price of competing firms c. Problems in Society d. Purchasing power of Customers 3. In terms of Marketing, the process of allotting a price to a product is called as 157 a. Price Fixation Theory CU IDOL SELF LEARNING MATERIAL (SLM)

b. Pricing Decision Analysis c. Value Analysis Method d. Price determination strategy 4. Which of the following is not a B2B pricing model a. Geographical pricing b. Flat rate pricing c. Tiered Pricing d. Per user Pricing 5. The most popular pricing model for the SaaS companies is a. Usage based Pricing b. Per user pricing c. Flat rate pricing d. Tiered pricing Answers 1-d, 2-c, 3-b, 4-a, 5-b 10.8 REFERENCES Reference Books ● Saxena R, Marketing Management, Tata McGraw Hill ● Transforming B2B Marketing to Meet the Needs of the Modern Buyer, by Carlos Hidalgo ● Matthyssens, Paul &Kirca, Ahmet & Pace, Stefano. (2008). Business-to-business marketing and globalization: Two of a kind. International Marketing Review. 25. 481-486. 10.1108/02651330810904044. Websites ● https://www.businessnewsdaily.com/5000-what-is-b2b.html ● https://www.investopedia.com/terms/b/btob.asp ● https://blog.hubspot.com/marketing/b2b-marketing 158 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT-11 INTRODUCTION TO E-MARKETING STRUCTURE 11.0 Learning Objectives 11.1 Introduction to E-Marketing 11.2 Features of E-Marketing 11.3 E-Marketing Advantages 11.4 Disadvantages of E-Marketing 11.5 Types of E-Marketing 11.6 Mapping fundamental concepts of Marketing 11.7 Traditional vs E-Marketing 11.8 Summary 11.9 Keywords 11.10 Learning Activity 11.11 Unit End Questions 11.12 References 11.0 LEARNING OBJECTIVES After studying this unit, you should be able to ● Explain the role of E-Marketing ● Recognise the key characteristic of E-Marketing ● Difference between E-Marketing and traditional marketing. 11.1 INTRODUCTION TO E-MARKETING In today's world the trends of business have seen drastic changes. All the changes are attributable to the cauterization of the Internet over the Global Market. It has proved that the Internet is not only for networking but also for the firm to transact their products globally, and it is happening within no time that proves that this era has the highest rate in the speed of improving the technology. 159 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 11.1 E- Marketing In global view, Electronic Marketing (E-marketing) mostly defines a new attitude and modern realistic involvement with marketing of goods, services, information and event ideas via the internet and other electronic means (El-Gohary 2010). Web marketing, digital marketing, internet marketing or online marketing; all of these words are synonymously used for E-Marketing. What it means is the marketing of products or services by using the internet. E-mails and wireless marketing also fall into the category of e- marketing. We can say that it uses different technologies and media to connect customers and businesses. Especially in this era of technology, e-marketing has become a very important part of the marketing strategy of different companies 11.2 FEATURES OF E-MARKETING Big or small, many businesses are using e-marketing because of various features and multiple advantages. Some of the important features are as follows. E-marketing is Cheaper than Traditional Marketing If you compare its cost with traditional marketing media such as newspaper ads and billboards, then it’s much cheaper and efficient. You can reach a wide range of audience with very limited resources. Tangible ROI Small business owners can now check the turnover rate or ‘‘action taken’’ with the help of Infusionsoft. It analyzes multiple things like views of videos, number of emails opened, and per click on the link. Most importantly, it tells us how much sales the business has been made as a result of e-marketing. 24/7/365 Approach 160 CU IDOL SELF LEARNING MATERIAL (SLM)

It works 24 hours a day, 7 days a week and 365 days of the year. It doesn’t matter whether you’re homesick, sleeping, or attending a casual meeting; but e-marketing is always hard at work. Eliminate Follow-up Failure Elimination of follow-up-failure is the main secrete behind the success of small business. It is done by entering your business figures into the Infusionsoft, and then its automated marketing system will provide you the custom-tailored information about your business, which areas to improve and what product to discontinue. 11.3 E-MARKETING ADVANTAGES Some of the important advantages of e-marketing are given below. 1. Instant Response. The response rate of internet marketing is instantaneous; for instance, you upload something, and it goes viral. Then it’d reach millions of people overnight. 2. Cost-Efficient. Compared to the other media of advertising, it’s much cheaper. If you’re using the unpaid methods, then there’s almost zero cost. 3. Less Risky. When your cost is zero and the instant rate is high; then what one has to loose. No risk at all. 4. Greater Data Collection. In this way, you have a great ability to collect a wide range of data about your customers. This customer data can be used later. 5. Interactive. One of the important aspects of digital marketing is that it’s very interactive. People can leave their comments, and you’ll get feedback from your target market. 6. Way to Personalized Marketing. Online marketing opens the door to personalized marketing with the right planning and marketing strategy, customers can be made to feel that this ad is directly talking to him/her. 7. Greater Exposure of your Product. Going viral with one post can deliver greater exposure to your product or service. 8. Accessibility. The beauty of the online world and e-marketing is that it’s accessible from everywhere across the globe. 11.4 DISADVANTAGES OF E-MARKETING E-Marketing is not without disadvantages, some of them are as follows; 1. Technology Dependent. E-Marketing is completely dependent on technology and the internet; a slight disconnection can jeopardize your whole business. 161 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Worldwide Competition. When you launch your product online, then you face a global competition because it’s accessible from everywhere. 3. Privacy & Security Issues. Privacy and security issues are very high because your data is accessible to everyone; therefore, one has to be very cautious about what goes online. 4. Higher Transparency & Price Competition. When privacy and security issues are high, then you have to spend a lot to be transparent. Price competition also increases with higher transparency. 5. Maintenance Cost. With the fast-changing technological environment, you have to be consistently evolved with the pace of technology and the maintenance cost is very high. 11.5 TYPES OF E-MARKETING When we talk about digital and email marketing, then there are different type and methods of e-marketing which are as follows; Email Marketing Email marketing is considered very efficient and effective because you already have a database of your targeting customer. Now, sending emails about your product or service to your exact targeted market is not only cheap but also very effective. Social Media Marketing Social media is a great source of directly communicating with your customers to increase your product awareness. It could be done by any or all of the social media channels such as LinkedIn, MeWe, Share Chat, Koo and YouTube. Some of the important advantages of social media are as follows;  Increase product awareness and reputation means more sales.  Directly communicating with your customers can increase brand loyalty.  You can increase the number of visits to your website and rank it up in the search engine.  Targeting the exact audience will help you to know more about your customers’ needs. Video Marketing It is said that a picture is worth a thousand words, and a video is worth thousands of pictures. You can catch the attention and emotions of your target market by showing them a video clip 162 CU IDOL SELF LEARNING MATERIAL (SLM)

about your product or service. Video marketing is very effective if it conveys the right message to the right audience. Article Marketing Engaging quality content by providing valuable information to your targeted market, what people are looking for over the internet to solve a certain problem? It is a consistent and ongoing process of delivering quality content to your readers. It is not always about selling; you’re educating your audience and helping them by adding some value in their lives. Affiliate Marketing Affiliate marketing is the process of promoting some products of certain brands and earning your commission out of every sale. It works for everyone; win, win situation E-Marketing can also be called as ● Web marketing ● Online marketing and ● Internet marketing. E-marketing takes in all the features of conventional marketing and applies them through the electronic medium called Internet. It allows the firm with technical and geographical aspect of online for every step of the marketing activities such as ● Design ● Advertising ● Brand development ● Promotion ● Sales In simple terms, E‐marketing adopts digital technologies to help promote and sell the goods or services. More than that, these technologies, like e‐mail and websites, are a valuable complement to traditional marketing methods whatever the size of the company or the business model. 11.6 MAPPING FUNDAMENTAL CONCEPTS OF MARKETING The fundamental concept of marketing remains the same starting from designing a strategy to communicate the right messages to the right people. What has changed is the number of options you have. Let’s derive how well the E-marketing satisfies the actual concept of marketing. 163 CU IDOL SELF LEARNING MATERIAL (SLM)

Marketing is the management process responsible for identifying, anticipating and satisfying customers. Internet technology can be used to support these aims as follows (Kaur M,2012) ● Identifying: In order to research the customer needs and wants, marketing trends, demand, competitors, the Internet can be used. ● Anticipating: Using the internet it is more flexible for the firms and organizations to reach their customer in any mode the customer prefer. Understanding this demand is key to governing resource allocation to e-marketing as explained. ● Satisfying: E-Marketing makes things available for the customer any time that brings in the value of customer satisfaction through the channels on the internet. 11.7 TRADITIONAL VS E-MARKETING Traditional vs E-Marketing TRADITIONAL E-MARKETING Uses the traditional channels Uses technology as the channel Nature Static Dynamic Conversion Slow Comparatively Fast Engagement Low Comparative High ROI Cannot Measure Measured easily Effectiveness Less More Expense High Low Tracking Not Possible Possible Targeting Standardized Customised Changing Not Possible once the ad is placed Can be done anytime 164 CU IDOL SELF LEARNING MATERIAL (SLM)

Reach Local Global Instant (Real Time) Results Delayed Can skip Two-way Interruption Cannot skip Communication One-way 11.8 SUMMARY ● Electronic Marketing (E-marketing) mostly defines a new attitude and modern realistic involvement with marketing of goods, services, information and event ideas via the internet and other electronic means. ● E-Marketing can also be called Web marketing, Online marketing and Internet marketing. ● E‐marketing adopts digital technologies to help promote and sell the goods or services. ● Marketing is the management process responsible for identifying, anticipating and satisfying customers. ● If you compare its cost with traditional marketing media such as newspaper ads and billboards, then it’s much cheaper and efficient. You can reach a wide range of audience with very limited resources. ● Small business owners can now check the turnover rate or ‘‘action taken’’ with the help of Infusionsoft. It analyzes multiple things like views of videos, number of emails opened, and per click on the link. ● . E-Marketing is completely dependent on technology and the internet; a slight disconnection can jeopardize your whole business ● Email marketing is considered very efficient and effective because you already have a database of your targeting customer. Now, sending emails about your product or service to your exact targeted market is not only cheap but also very effective ● Social media is a great source of directly communicating with your customers to increase your product awareness. It could be done by any or all of the social media channels such as LinkedIn, MeWe, Share Chat, Koo and YouTube. 165 CU IDOL SELF LEARNING MATERIAL (SLM)

● ‐marketing adopts digital technologies to help promote and sell the goods or services. More than that, these technologies, like e‐mail and websites, are a valuable complement to traditional marketing methods whatever the size of the company or the business model. ● Using the internet it is more flexible for the firms and organizations to reach their customer in any mode the customer prefer. Understanding this demand is key to governing resource allocation to e-marketing as explained 11.9 KEYWORDS ● E-marketing is a process of planning and executing the conception, distribution, promotion, and pricing of products and services in a computerized, networked environment, such as the Internet and the World Wide Web, to facilitate exchanges and satisfy customer demands. It has two distinct advantages over traditional marketing. ● Affiliate Marketing Affiliate marketing is the process of promoting some products of certain brands and earning your commission out of every sale. It works for everyone; win, win situation ● Video Marketing It is said that a picture is worth a thousand words, and a video is worth thousands of pictures. You can catch the attention and emotions of your target market by showing them a video clip about your product or service ● Email Marketing Email marketing is considered very efficient and effective because you already have a database of your targeting customer. Now, sending emails about your product or service to your exact targeted market is not only cheap but also very effective ● Social Media Marketing social media is a great source of directly communicating with your customers to increase your product awareness. It could be done by any or all of the social media channels such as LinkedIn, MeWe, Share Chat, Koo and YouTube ● Technology is the set of knowledge, skills, experience and techniques through which humans change, transform and use our environment in order to create tools, machines, products and services that meet our needs and desires. ● Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.  Data Collection is a process of gathering information from all the relevant sources to find a solution to the research problem. It helps to evaluate the outcome of the 166 CU IDOL SELF LEARNING MATERIAL (SLM)

problem. The data collection methods allow a person to conclude an answer to the relevant question 11.10 LEARNING ACTIVITY 1. Imagine yourself owning a start-up and list out the E-Marketing strategies that you would employ. ___________________________________________________________________________ ___________________________________________________________________________ 2. Enact a play on how E-Marketing scores Brownie points over other marketing techniques. ___________________________________________________________________________ ___________________________________________________________________________ 3. Discuss about advantages and disadvantages of E-Marketing with real examples. ___________________________________________________________________________ ___________________________________________________________________________ 4. Have a Group Discussion on how E-Marketing differs from traditional marketing techniques. ___________________________________________________________________________ ___________________________________________________________________________ 5. Visit a travel company and ask about their E-Marketing plans post pandemic. ___________________________________________________________________________ ___________________________________________________________________________ 11.11 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is E- Marketing? 2. Whatarethe types of E-Marketing currently being employed? 3. What are the channels of E-Marketing? 4. Why is E-Marketing quicker than traditional marketing? 5. What are the key features of marketing? Long Questions 167 CU IDOL SELF LEARNING MATERIAL (SLM)

1. How is E-Marketing different from Marketing? 2. Explain the features that E-marketing satisfies the marketing nature. 3. Explain why E-Marketing should be adopted 4. List the features of E-Marketing. 5. State the importance of E-Marketing? 6. What are the advantages and disadvantages of E-Marketing? B. Multiple Choice Questions 1. In which of the following type of marketing Post pandemic has gained a lot of prominence a. E-Marketing b. Print Marketing c. Mass media marketing d. Banner Marketing 2. Which of the following is not an example of E-Marketing? a. Social Media b. E-mail c. Newspaper ads d. Website ads 3. This type of E-Marketing has commission and profit for both the sides a. Newspaper ads b. Affiliate Marketing c. Video Marketing d. Social Media Marketing 4. Which of the in-app advertising company from India has become a Unicorn in the year 2020? a. RevX b. AdColony c. My Hoardings d. Glance 5. What is the GST rate of Digital Marketing in India? a. 5% b. 12% 168 CU IDOL SELF LEARNING MATERIAL (SLM)

c. 18% d. 28% Answers 1-a, 2-c, 3-b, 4-d, 5-c 11.12 REFERENCES Reference Books ● Saxena R, Marketing Management, Tata McGraw Hill ● Transforming B2B Marketing to Meet the Needs of the Modern Buyer, by Carlos Hidalgo ● Matthyssens, Paul &Kirca, Ahmet & Pace, Stefano. (2008). Business-to-business marketing and globalization: Two of a kind. International Marketing Review. 25. 481-486. 10.1108/02651330810904044. Websites ● https://www.businessnewsdaily.com/5000-what-is-b2b.html ● https://www.investopedia.com/terms/b/btob.asp ● https://blog.hubspot.com/marketing/b2b-marketing 169 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT-12 MODELS OF E-MARKETING STRUCTURE 12.0 Learning Objectives 12.1 Introduction to E-Marketing 12.2 4 Cs of E-Marketing 12.3 Various Models Of E-Marketing 12.4 Summary 12.5 Keywords 12.6 Learning Activity 12.7 Unit End Questions 12.8 References 12.0 LEARNING OBJECTIVES After studying this unit, you should be able to ● Define the structure of E-Marketing ● The factors satisfying E-Marketing ● Explore the various types of E-Marketing ● Study the various models of E- Marketing Strategies. 12.1 INTRODUCTION In the present the world has gone lost over the internet. Every day the number of Internet users is increasing, so marketers who always keep an eye on connecting with more people, Internet is one great place. And the cherry is that we can connect with a large number of people in multiple ways. We need to agree that the Internet has changed the way we learn, communicate and do business. Before learning about the various models of E marketing let us examine the pillars of e- marketing where we can learn how well the criteria suit better for the models. The pillars of the E-Marketing model explain the use of the most efficient tactics accordingly. The ultimate goal of this is to connect the result of a particular E-Marketing strategy, with the features of E-Marketing strategy. In other words, this method is used to connect the direct response of E- marketing. 170 CU IDOL SELF LEARNING MATERIAL (SLM)

12.2 4CS OF E-MARKETING. 1. CONTENT: This is a basic and more effective part of E- Marketing, where we need to concentrate more. The way we put the content communicates the brand or product or services better. The basic requirement to excel in this particular concept is to be very original. Being original can be very unique and it creates more reliability for the customers. Making content which seems to be similar to the competitor will lead the brand to put the brand image in trouble. Figure 12.1 Content for Marketing 2. CLICKSTREAM: Knowing what customers actually like in you will always help an organisation to work on that more and excel the strategy, in that way the clickstream is one such service of any website. It helps the organisation to identify the flow of customer traffic in their website or any page. If they could find what product customers are least interested in they could work on to create a better product instead. So the amount of time on R&D gets reduced. Figure ; 12.2 Communication 3. COMMUNICATION: The mode of communicating with the customer to give them a personal experience, 171 CU IDOL SELF LEARNING MATERIAL (SLM)

every time when a business person makes sure that they have a special attention on the customer visiting their page, it tends to have a conversion over there. For such there are many tools coming out with chat box calls. Email or demo and etc., so that it never makes the customer wait for a representative to connect with them to get certain details. This saves the time of the customer as well as pushes the customer to get attracted to the personal attention they get. Figure 12.3 Conversation 4. CONVERSION: The other 3 pillar which was explained deals with the 4th pillar conversion, the effect we put on any channel must lead to conversion, if it seems to be not satisfying then its a sign the strategy must be altered accordingly. Figure: 12.4 Conversion 172 CU IDOL SELF LEARNING MATERIAL (SLM)

12.3VARIOUS MODELS OF E-MARKETING There seems to be seven types or models of E-Marketing that satisfy all the 4Cs of E- Marketing. All the 7 types create an impact in their own way. ● Social media marketing ● Influencer marketing ● Affiliate marketing ● Email marketing ● Content marketing ● Search engine optimization (SEO) ● Paid advertising Figure 12.5 Model of E- Marketing Social media marketing: Social media marketing is a marketing activity that is carried out on social media to promote a product or services. It is becoming popular in recent days. It acquires more attention from the customers. Though social media seems to be a very common use of all in this time there are certain factors that help marketers to use it more effectively. It is something more than just creating the post and publishing. It takes certain methods to sustain the post on social media and make it visible for a wider audience. It is not that the content on social media will be different from what regular marketing teams exhibit, but the factor is social media marketers need to communicate the same message in a simple and catchy manner. Inorder to have more effectiveness on social media marketing, one has to be clear in using the analytics 173 CU IDOL SELF LEARNING MATERIAL (SLM)

tool. So that they can create the post according to the data strategically. Social media marketing can be categorised as: - Organic Social Media Marketing: It focuses on creating a loyal community and making the relationship between the brand and the customer. This can be made by creating a page and having a personal touch with the customer while communicating or conducting activities and etc., - Paid Social Media Marketing: This is more of an aggressive approach inorder to develop a wonderful customer base. This helps the brand to grow with numbers in the first stage. Influencer marketing: This has become a common choice among the business players while adopting social media. It involves the endorsements and placement of the product to the market through the influencers and organisations who have the definite expertise on the product or influence in the field. The influencers create brand awareness, convey the message to that market and increase traffic. Figure12.6 Influencer Marketing Affiliate Marketing: It is a more cost effective category where the organisation can have tie ups with other firms having larger customer traffic and generating leads for their products and services. It works better in many kinds of business as it is also a kind of commission based marketing. 174 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure: 12.7 Affiliate Marketing Email Marketing: Email stands as one of the best and preferred tools for E-Marketing even in the era of social media, mobile applications and other channels. It is one the most effective tools which is also a part of content marketing. Email marketers not only know how to create compelling campaigns, they also understand optimal audience outreach and are skilled at analyzing customer interactions and data, and making strategic decisions based on that data, according to the American Marketing Association. For every Email marketing there need to be certain checklist while creating a content they are: 175 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 12.8Email Marketing - Creating a sense of urgency - Personalizing the email - Letting the recipients to set their preference (Customizing) Content Marketing: Storytelling and sharing information is the core purpose of content marketing. This is commonly framed in a way that will tend the customer to grow interest in the product and request for more information and details. Before anything it should add value to the consumer, not only in the intention of creating brand image. Content marketing creates a sustainable and reliable relationship with the customer that will encourage them to purchase. `Reading the analysis of the content marketing activities will talk about the interstate of the customer. 176 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 12.9 Content Marketing Search engine optimization (SEO): The process of optimizing the content and the website to improve search engine ranking which is proportional to the number of visitors on the webpage. Here research needs to be done on words and phrases that are commonly used by consumers for searching the information online so that those words and phrases can be used in the contents. It encompasses elements such as the words on the websites, the way how other sites link to their site on the web, and how thewebstructured. Figure 12.10 SEO 177 - Content Indexing - Good Link Structure - Key words and Key targeting CU IDOL SELF LEARNING MATERIAL (SLM)

Paid Advertising: Online paid advertising is the process of purchasing the spots on web pages where the consumer traffic is high. There is competition in paid advertisement as for the spot and also the content to be used. There are different types of tools for paid advertisement starting from google ads, pay per click, display ad, search ad, etc. Figure 12.11 Paid Advertising 12.4SUMMARY ● Content is a basic and more effective part of E- Marketing ● Knowing what customers actually like in you will always help an organisation to work on that more and excel the strategy, in that way the clickstream is one such service of any website. ● Social media marketing is a marketing activity that is carried out on social media to promote a product or services. ● Influencer Marketing has become a common choice among the business players while adopting social media. ● Affiliate marketing is more cost effective. ● Email Marketing is the most effective tool, which is also a part of content marketing. ● Storytelling and sharing information is the core purpose of content marketing. ● Search engine optimization (SEO) is the process of optimizing the content and the website to improve search engine ranking which is proportional to the number of visitors on the webpage. 178 CU IDOL SELF LEARNING MATERIAL (SLM)

12.5 KEYWORD  E-Marketing: E-marketing is a process of planning and executing the conception, distribution, promotion, and pricing of products and services in a computerized, networked environment, such as the Internet and the World Wide Web, to facilitate exchanges and satisfy customer demands.  Social Media:social media is a computer-based technology that facilitates the sharing of ideas, thoughts, and information through the building of virtual networks and communities. ... Users engage with social media via a computer, tablet, or smartphone via web-based software or applications.  Organic Social Media Marketing-It is any social media activity without a paid promotion. It uses free social media tools to build and engage with an online following. ... In other words, advertisements or sponsored posts that brands pay a social network to display to audiences beyond their followers.  Content Marketing: Content marketing is a form of marketing focused on creating, publishing, and distributing content for a targeted audience online.  Analytics: Analytics is the systematic computational analysis of data or statistics. It is used for the discovery, interpretation, and communication of meaningful patterns in data. 12.6 LEARNING ACTIVITY 1. Discuss the pillars of E-Marketing model in online business. ___________________________________________________________________________ ___________________________________________________________________________ 2. Discuss the 4 C’s in E-Marketing? ___________________________________________________________________________ ___________________________________________________________________________ 12.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is E- Marketing? 2. List the various models of E-Marketing. 3. What is affiliate marketing? 179 CU IDOL SELF LEARNING MATERIAL (SLM)

4. What is a push strategy? 5. What is product placement? Long Questions 1. Explain the pillars of E-Marketing 2. Describe the various models of E-marketing? 3. What are the 4 Cs of E-Marketing? 4. What is the role of Social-Media in E-Marketing? 5. What is Search Engine Optimization? B. Multiple Choice questions 1. __________ is a basic and more effective part of E- Marketing, where we need to concentrate more. a. Clickstream b. Content c. Communication d. Conversion 2. There are __________ types of or models of E-Marketing that satisfy all the 4Cs of E- Marketing. a. 6 b. 5 c. 7 d. 9 3. ________ Marketing focuses on creating a loyal community and making the relationship between the brand and the customer. a. Organic social media b. Paid social media c. Affiliate d. Email 4. Storytelling and sharing information is the core purpose of__________. 180 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Affiliate marketing b. Email marketing c. content marketing d. Social Media marketing 5. ________is the process of purchasing the spots on web pages where the consumer traffic is high. a. Online paid advertising b. Purchasing c. Marketing d. Content writing Answers 1-b, 2-C, 3-a, 4-c, 5-a 12.8 REFERENCES Reference Books ● Saxena R, Marketing Management, Tata McGraw Hill ● Transforming B2B Marketing to Meet the Needs of the Modern Buyer, by Carlos Hidalgo ● Matthyssens, Paul &Kirca, Ahmet & Pace, Stefano. (2008). Business-to-business marketing and globalization: Two of a kind. International Marketing Review. 25. 481- 486. 10.1108/02651330810904044. Websites ● https://www.businessnewsdaily.com/5000-what-is-b2b.html ● https://www.investopedia.com/terms/b/btob.asp ● https://blog.hubspot.com/marketing/b2b-marketing 181 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT-13 STRATEGY FOR E-MARKETING STRUCTURE 13.0 Learning Objectives 13.1 Introduction 13.2 1Strategy for E-Marketing 13.2.1 Two C’s 13.2.2 Two P’s 13.2.3 Three S’s 13.3 Strategy and Planning for E- Marketing 13.4 Summary 13.5 Keywords 13.6 Learning Activity 13.7 Unit End Question 13.8 References 13.0 LEARNING OBJECTIVES After studying this unit, you should be able to ● Explain the strategy in E- Marketing ● Plan E-Marketing for business ● Explain the benefits of strategies used in marketing ● Analyse the E-Marketing Plan 13.1 INTRODUCTION For any organisation, there should be a strategy to be followed that will help them reach their short term and long term goal. It is a construction of a road map to finally achieve what it was meant for. Without a strategy it will be difficult for any organisation to track where they are and what they are working on. It generally involves, ● Setting goals and priorities, ● Determining actions to achieve the goals, and ● Mobilizing resources to execute the actions. 182 CU IDOL SELF LEARNING MATERIAL (SLM)

Usually in an organisation a manager along with their team will work on researching the market needs and the nature of the consumer and design the strategy in a way that they can communicate about their product or services to their consumers that will attract them. A strategy cannot be something common for every organisation, it is an unique process carried out by each organisation. Sometimes common strategical way can be adopted for a similar kind of organisation. In short strategy is something integrating organizational activities, utilizing and allocating the scarce resources within the organizational environment so as to meet the present objectives. Figure: 13. 1 Internet Marketing Features of Strategy 1. The future cannot be foreseen. But it equips the firm to deal with the uncertain events in the business environment. 2. Usually strategy deals with the longer term development plans which is to the marketing, innovations, new product development, adopting new methods or developing new markets. 3. It also helps to take in the behavioural pattern of the customers and the features of competitors. Components of Strategy: In order to have a flawless flow on the process there are certain components that a strategy needs to carry forward while constructing, they are: ● Strategic Intent ● Mission Statement 183 CU IDOL SELF LEARNING MATERIAL (SLM)

● Vision ● Goals and Objectives Figure 13.2 Components of strategy 13.2STRATEGY FOR E-MARKETING Strategy in E-Marketing is nothing but executing the marketing activities with the aid of the internet. So E- marketing strategy is a process that implement seven marketing strategies that is streamlined accordingly and those are categorised as ● 2C’s ● 2P’s ● 3S’s 13.2.1 Two C’s Customer Service: It has become one of the important services that every organisation must provide for today’s consumer. And while the marketing activities are executed online, customer service is one such feature that has to be concentrated as people will gain reliability on the organisation if the customer service is done in the best way. In general terms, it is a service offered to the consumer before and after purchasing the product or services, it makes the customer happy and helps the process to be in flow. Community: 184 CU IDOL SELF LEARNING MATERIAL (SLM)

Building a community is a process of creating a market that lies in the favour of the organisation. The features such as testimonials, reviews, blogs help other consumers to understand the brand value and the features how it will be useful for them through understanding the experience of the organisation’s customers. Where the possibility of conversion is very high. 13.2.2 Two P’s Personalization: The way a firm approaches the customer has the impact on building the trust of the customer on the brand. When the customer understands that they are being valued and given special attention it will make the customer stick with the brand and also for the market it will motivate them to purchase the product from the organisation. So in E-Marketing when there are common features like E-Mail marketing or Bulk sms it needs to be more personalised for every customers. Personalized emails and other replies will be important for the customer to feel valued and not just like another number. Privacy: Privacy is a major factor for any firm for executing the E-Marketing activities, as there are possibilities for the consumers. The transaction between the consumer and the firm must be private and protected such as address, email and contact details. These details must not be shared with anyone without the permission of the customers. 13.2.3 Three S’s Site: The face of the firm or any organisation will be the company’s website, it has to be very much feasible to the customers. The website must consist of all the necessary details and must be very much appealing that creates interest in the brand and the products. It must work properly on all the devices like PC, Phones, Laptops and other types of access. Security: Every customer expects security while doing business online. There are also guidelines and regulations when it comes to securing private and protected information. A professional web design company may be needed to assure the website is secure. Sales: Once an online business is set up for e-marketing, one would obviously need effective sales promotion for the merchandise and services being offered. Skilful and effective Internet marketing will be necessary to be successful online. 185 CU IDOL SELF LEARNING MATERIAL (SLM)

13.3STRATEGY AND PLANNING FOR E- MARKETING The strategic E-Marketing plan helps to have a better view on where we stand and what is the next move to be altered. It is a blueprint for formulating and executing E- Marketing strategy, it helps to allocate resource, and make certain adjustments if needed. Benefits of a Strategic E-Marketing Plan ● Building Visibility & Brand Awareness ● Gaining Wider Target Audience ● Customer Acquisition ● Lower Marketing Cost ● Trackable and Measurable Results ● Customer Retention 13.3.1 E - Marketing Plan Objectives: The objectives of an E-Marketing plan must be SMART(Specific, Measurable, Attainable, Relevant and Timely). It must align with the business goal and strategy, while keeping the ROI as an important factor. It has to decide the budget the firm is going to stick with and the nature of channels that can be used to execute the strategy. 13.2.2 E - Marketing Plan In order to create a perfect plan there are seven steps to consider. ● Set Goals ● Define your target market(s) ● Check out the competition ● Set a schedule and budget ● Select your marketing channels ● Delegate responsibilities ● Monitor your progress Set Goals: This is the first step to construct before proceeding further. Here the environmental factors will be examined having to execute the SWOT analysis to examine the internal strength and the weakness to derive the possibilities. It helps a firm to frame the goal of the plan as we get to understand what will work and what will not with the analysis. The factor of running a 186 CU IDOL SELF LEARNING MATERIAL (SLM)

successful execution of marketing activity can be done only when we understand the aspiration of the plan. Define target market: To choose the medium to execute the marketing activity, we need to identify for whom we will be doing it. So that the interest of the market can be defined. Marketing activity will be carried out for some reasons like to increase their existing market, to engage their current target market or to introduce their brand to a new market. With the help of demographic study they most preferred channel for marketing and the way the content is to be presented can be evaluated. Check out the competition: In order to extend the current market or get into a new market, we need to analyse the competitors. It helps to understand the strength and weakness of them and understand the gaps available. The ideas can be adopted from competitors if their strategy is doing well, it can be reframed according to the nature of the firm. It makes the team more aware about the flaws and failure of the competitors' plan so that those mistakes can be avoided while planning. Set a schedule and budget: The plan to divide the time and money among the availability towards the strategy is very important. This will help the team to understand if they are proceeding on the right track. Regardless of available time and money, it has to be decided how it will be spent on each stage of your overall marketing strategy. However, while budgeting, we cannot plan for everything. Certain things might get changed in between that will lead to spending more than targeted. Select market channel: With all the above stages, we will be able to understand the strengths and also the mode we can execute the marketing activity. Though there are lots of E-Marketing channels available like social media, email, content, website etc., the channel that fits the target market interest, the budget and the potential channel we can decide. At times we can choose multiple channels if the budget allows us to reach the goal. If there is a doubt in choosing a channel, a pilot trial can be done to check if that works for the plan and move forward. Delegate responsibility: Selecting the resource according to the task available is one of the challenging factors while planning. There needs to be more attention on the team members strength and weakness, or in case if there are only few resource people available but the tasks are more the plan should be constructed in a way the available resource people get the tasks according to their capability 187 CU IDOL SELF LEARNING MATERIAL (SLM)

and their time frame must also be considered here. The Manager or the coordinator needs to remember to whom the task was assigned. Monitor Your Progress A goal can take a long time to reach, but there are a lot of smaller benchmarks you need to hit along the way. If you don’t know how your strategy is performing over a month, a week, or whatever, you’ll have no indication if you’re getting you close to your goal. When mapping out your strategy, you should also have a way to track or monitor it. Google Analytics is a great way to do that so you have the data you need to alter your strategy to get the best results. Case Study: 1 Incredible India Campaign Incredible India started off as a marketing campaign in 2002 by the Government of India to boost tourism in the country and project India as a credible tourist destination. The incredible diversity that exists in India, be it the people and their customs or the topography, lends itself perfectly to the slogan ‘Incredible India’. But if only a marketing campaign could bring tourists to a country, then, all countries would invest heavily in marketing, rather than making the country tourist friendly. Incredible India The biggest advantage that India has from the perspective of tourism is its diversity. Very few countries in the world have this eclectic fusion of the traditional and the modern, the historical and the contemporary, the mountains and the seas, the deserts and the forests, and the different religions and communities. Yet, India received only 2.4 million (approx.) foreign tourists in 2001. By contrast, Switzerland received close to six million tourists and Spain more than 13 million. To check this gross imbalance and exploit the untapped potential of India as a destination for international tourists, the Government launched the ‘Incredible India’ campaign and formulated the National Tourism Policy in 2002. THE CHALLENGE The Incredible India campaign was launched by Ministry of Tourism to promote India as a world-class tourist destination. Incredible India was facing numerous challenges including: • Competing with other campaigns for the attention of their key audience • Struggling to reach premium and affluent travelers across APAC and EMEA • Identifying and communicating a distinct side of India that general audiences would not know about already. The client wanted to inspire and educate audiences that India has something to offer everyone based on pre-defined audience clusters: • Off the beaten track travellers seeking unique experiences; • Culture and heritage enthusiasts; and 188 CU IDOL SELF LEARNING MATERIAL (SLM)

• Foody enthusiasts Incredible India- the campaign The campaign marked the first concerted effort by the Government of India to tap into the vast tourism potential of the country in an organized manner. Launched in 2002, the government hired professionals and engaged the services of Ogilvy & Mather (India) to formulate an integrated communication strategy aimed at promoting India as the preferred destination for the international traveler. The campaign highlighted various facets of Indian culture and history such as yoga, spirituality, festivals, and monuments such as the Taj Mahal and so on. Impact of the campaign The campaign proved to be successful, leading to a 16% increase in tourist traffic in its first year. The arrival of foreign tourists to India increased from 2.38 million in 2002 to 7.7 million in 2014. Yet, the campaign did not show the desired result as by the end of 2007, India’s share in the tourism was a mere 0.52%. China, on the other hand, became the fourth most visited country as of 2015, with 56.9 million international tourists flocking the country. Things are, however, changing. In 2016, the number of Foreign Tourist Arrivals in India stood at 8.80 million, registering a 9.7% annual growth rate over last year. India accounts for 1.18% of International tourist Arrivals in the world and ranks 25th in the world. Stumbling Blocks The success of any advertising campaign lies in the effectiveness of the brand, in this case, the brand is India itself. Any strategy to promote the country will only be successful if the country provides what the international visitors seek, namely a safe and unique experience without much hassle. Another aspect that the government needs to work on is developing infrastructure to meet the demands of growing tourism. Tourism could contribute significantly to the country’s GDP and create millions of jobs, if the government gets its act together. India has everything that the tourists would love to experience. The government only needs to ensure safety, build decent infrastructure, remove bottlenecks and provide a hassle free experience, so that the tourists carry a good impression of India in their hearts. Move in the right direction Though a lot needs to be done on the ground level to make India tourist friendly, the government is moving in the right direction by recognizing the limitless potential of tourism in the first place. The Ministry of Tourism has launched the ‘Incredible 2.0 Campaign’ during the year 2017-18 to promote various destinations and areas such as spiritual, medical, and wellness tourism, with a budget of $46 million. For Incredible India to be credible the country needs to change the on-ground perception of tourists and improve its infrastructure, only then can it mount a successful advertising campaign. Question for discussion: 1. What is the main impact on travel and tourism industry seen after Incredible India campaign? 2. Discuss the strategies to promote India as a popular tourist destination. 189 CU IDOL SELF LEARNING MATERIAL (SLM)

13.4SUMMARY  Strategy is something integrating organizational activities, utilizing and allocating the scarce resources within the organizational environment so as to meet the present objectives.  Strategy in E-Marketing is nothing but executing the marketing activities with the aid of the internet. So E- marketing strategy is a process that implement seven marketing strategies that is streamlined accordingly  Building a community is a process of creating a market that lies in the favour of the organisation. The features such as testimonials, reviews, blogs help other consumers to understand the brand value and the features how it will be useful for them through understanding the experience of the organisation’s customers.  Privacy is a major factor for any firm for executing the E-Marketing activities, as there are possibilities for the consumers. The transaction between the consumer and the firm must be private and protected such as address, email and contact details. These details must not be shared with anyone without the permission of the customers.  The objectives of an E-Marketing plan must be SMART(Specific, Measurable, Attainable, Relevant and Timely). It must align with the business goal and strategy, while keeping the ROI as an important factor.  E-Marketing channels available like social media, email, content, website etc., the channel that fits the target market interest, the budget and the potential channel we can decide. 13.5KEYWORD  Digital Cash: money that never leaves the internet (e.g. Paypal, Bitcoin).  Disintermediation: The process of eliminating channels and selling product directly to the end customer.  Electronic Wallet: store credit card information on a computer in encrypted form and then can be used to pay in supported formats and sites.  Email Marketing: the use of email to promote or market your products or services.  Email Spam: unsolicited commercial email.  Forum: an online discussion where visitors may read and post information or comments.  Gateway: A computer that allows communications between networks. Used in ecommerce as an interface between merchant and bank.  Group Buying Model: people coming together over the internet to form a community and purchase something as a group. 190 CU IDOL SELF LEARNING MATERIAL (SLM)

 High Risk Processors/Brokers: Institutions that issue merchant accounts to high risk endeavors, therefore allowing them to accept credit card payment. Used when the bank has too stiff requirements. Compensate risk by charging higher fees than traditional banks.  Home page: the opening page of your website. 13.6 LEARNING ACTIVITY 1. Discuss the role of Customerservice in E- Marketing? ___________________________________________________________________________ ___________________________________________________________________________ 2. Discuss the Marketing Strategies in W- Marketing? ___________________________________________________________________________ ___________________________________________________________________________ 13.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is strategy? Explain its features. 2. What is an E-Marketing strategy? 3. What is Planning in E-Marketing? 4. What are the “Three S’s in online business? 5. What are “Two P’s? LongQuestions 1. Explain E-Marketing strategies. 2. What are all the benefits of a strategic plan in E-Marketing? 3. Explain E- marketing plan. 4. Explain the objectives of marketing plan? 5. What is a target Market? B. Multiple Choice Questions 1. Marketing strategies involves______development goals. a. Long term 191 CU IDOL SELF LEARNING MATERIAL (SLM)

b. Short term 192 c. Spontaneous d. Gradual 2. Strategy in E-Marketing is _______the marketing activities. a. Executing b. Developing c. Segmenting d. Targeting 3. The main activity for online marketing is _______ a. Community service b. Customer service c. Customer loyalty d. Customer target 4. Three Ssin onlineBusiness is______ a. Site, security and sales b. Staff, sales and services c. Security, staff and sales d. Site, security and staff 5. ___________ determines the channel for marketing a. Customers b. Target market c. Brand image d. Marketing strategy Answers 1-a, 2-a, 3-b, 4-a, 5-b CU IDOL SELF LEARNING MATERIAL (SLM)

13.8 REFERENCES Reference Books ● Saxena R, Marketing Management, Tata McGraw Hill ● Transforming B2B Marketing to Meet the Needs of the Modern Buyer, by Carlos Hidalgo ● Matthyssens, Paul &Kirca, Ahmet & Pace, Stefano. (2008). Business-to-business marketing and globalization: Two of a kind. International Marketing Review. 25. 481- 486. 10.1108/02651330810904044. Websites ● https://www.businessnewsdaily.com/5000-what-is-b2b.html ● https://www.investopedia.com/terms/b/btob.asp ● https://blog.hubspot.com/marketing/b2b-marketing 193 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT-14 ETHICS IN E-MARKETING STRUCTURE 14.0 Learning Objectives 14.1 Introduction 14.2 Ethics in E-Marketing 14.2.1 Ethics in E-marketing 14.2.2 Importance of Ethics in E-marketing 14.3 Ethical and Legal Issues 14.3.1 Ethical Issues In E-Marketing 14.3.2 Legal Issues in E-Marketing 14.4 Internet of the future: “Customization”. 14.5 Summary 14.6 Keywords 14.7 Learning Activity 14.8 Unit End Questions 14.9 References 14.0 LEARNING OBJECTIVES After studying this unit, you should be able to ● Define ethics ● Apply ethical thinking ● Analyze the decision bound to ethics ● Describe Ethics in e marketing 14.1 INTRODUCTION Ethics refers to the philosophical study that deals with the concepts of moral right and wrong and moral good and bad, to any philosophical theory of what is morally right and wrong or morally good and bad, and to any system or code of moral rules, principles, or values. For every concept there are ethics formulated accordingly to avoid the threats in that. If ethics are not carried forward the sources can be exploited or misused. 194 CU IDOL SELF LEARNING MATERIAL (SLM)

E-marketing consists of its own ability to show the product dynamically. Marketing has its own stand to create an image and awareness about the product in the mind of people to purchase the product. Once it is mixed with information technology it may give rise to many ethical and legal issues related to safety and security. An ethical and legal issue applies to business and the same has to be applied for e-business. In the same way marketing ethical and legal issues have to be applied for e marketing. In today's world of Information Technology everyone wants to complete their task in a very short duration and with little effort. This may have an impact on consideration of ethical and legal aspects. 14.2 ETHICS IN E-MARKETING The internet has paved the way for the marketers and also customers to purchase a product or services online. With that, social media has become the most preferred channel for promoting the brand to the consumers. People prefer searching for products on social media that takes them to the online webstore page. Here the possibilities of selling goods online to the customers increases, which helps the brand to cut short certain costs that will be spent if they have the physical store. So when it happens customers are asked to share certain details like name, address, contacts, payment details which might push them to worry about privacy. This leads to the debate if E-Marketing is a boon or bane as it offers so many benefits but also involves the chance of frauds, deception, hacking, cookies, duplication of products and any other unethical practices. The issues include security and privacy of information and safety. To overcome all the mentioned obstacles there need to be certain procedures and practices for the consumers or the marketers to have a fearless business process running online. 14.2.1 Ethics in E-Marketing Ethics in E-Marketing can be defined as the account of guidelines and the area where the ethics can act as a guiding light behind the regulation of marketing and also transaction. The ethics of marketing overlap with the media. The set of ethical guidelines necessarily to be followed by the management and also the department processing the marketing activity. 14.2.2 Importance of Ethics in E-Marketing The image of the brand gets reflected according to the ethical standards the brand follows. This will lead the consumer to rely on and the sales, marketing and advertisements are applied that makes the company profitable for longer term. It also affects the employees and their behaviour with the consumers online, on phone or in person. 1. Customer loyalty: It is the most important factor in the ethical standard of E-Marketing that wins the customer trust and loyalty that turns the business to have a long-term life. When the consumer finds safety and trust over a brand they tend to stick with the brand as it is human nature to not take risks on some other brand that gives a cheaper product rather than a secured product. So, it is 195 CU IDOL SELF LEARNING MATERIAL (SLM)

very important for the marketing team to display the product or services' real nature and attributes that give a clear idea for the consumer to learn the benefits they could get. Figure14.1 Customer Loyalty 2. Long term gains: The Importance of Marketing Ethics is not only the long-term goal and objective of the company but there are various gains attached to following, such as ● Customer Loyalty, ● High credibility in the market and in the minds of the customers, ● Increased market share, ● Enhanced brand value, ● Higher sales, ● Elevated revenues amongst others with the company able to accomplish its both short term and long term objectives. Figure 14.2 Elevated Revenues 196 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Build Credibility: As the brand follows the complex and nuances of the ethics in marketing on a consistent basis on all the promotional activities, it helps to gradually grow its unique niche in the market as a authentic and most reliable brand which also result in the credibility building for the company among the competitors in the industry, investors and also stakeholders as well as customers. Figure 14.3 Credibility 4. Leadership: As a result of any organisation understanding the complexity of the marketing ethics and its importance while formulating it as one of the main objective, it gains the status of being a leader in the market with the other brands who are trying to benchmark their practices and strategies that are owing to the company laying and following the rare path of marketing ethical practices. This results in various benefits such as customer loyalty, increased sales and market shares, becoming an inspiration for others in the market. Figure14.5 Leadership 5. Satisfying The Basic Human Needs & Wants: While having ethics, the organisation satisfies and fulfills the basic human needs and wants on the basis of trust, faith and integrity as these are the factors that customers look for from the brand that they tend to make a purchase of products or services. This will be directly reflected on the company’s life time that enjoys the benefits like customer loyalty, tryst, faith 197 CU IDOL SELF LEARNING MATERIAL (SLM)

in its offering and the referral or word of mouth publicity that will earn the support of maximum consumers. Figure 14.4 Differentiating Needs and Wants 6. Display Rich Culture: Following the path of ethics in marketing, there are many benefits a company can enjoy from the external environment of the business and also from the internal environment that comprises the staff and employees who are defined well and aligned systematically as that will display and boast the rich and authentic culture. When the internal staff are highly motivated it makes them strive to help the management attain the overall business objectives. And also they take pride in working and associating with the company and express the same to their social circle that showcase the rich and genuine culture of the firm. Figure 14.5 Rich Culture 7. Attract Talent: By following all the ethical factors in the market it also helps the firm to attract the talented professionals to get associated with the company as the environment internally and externally 198 CU IDOL SELF LEARNING MATERIAL (SLM)

gets attached. And following the ethics will provide a boost to their profession. This gets reflected on the performance of the company on achieving the aims and objectives. Figure 14.6 Attract Talent 8. Attains Financial Goals: To attract investors and financial partners for expanding the business operations, introduce new products, tap new markets, try out new innovative marketing and promotional techniques there should be some qualification with the company. In those qualification lists following the ethics remains the major checklist to attract the investors where they consider the performance and forecast the company’s reliability. Only when the company seems genuine in its existing operations and marketing will it be possible for the investors to move forward with the plans. Figure 14.7 Attain Financial Goals 199 CU IDOL SELF LEARNING MATERIAL (SLM)

9. Enhanced brand value: The fraternity of the overall market, the competitors and the consumers look up the company following the marketing ethics in the most dedicated manner, create the advertisement campaign with the actual display of the product, excel in the customer’s opinion, setting a new benchmark in the market for the competition. All the above factors result in the development of brand value of the firm that also make them the most trustworthy and reliable brand. Figure 14.8 Enhanced brand Value 14.3 ETHICAL AND LEGAL ISSUES 14.3.1 Ethical Issues In E-Marketing Ethics is commonly related with the values and routine carried out by the professionals who are expert in the knowledge. As discussed before ethics are concerned with choosing the among right and wrong. Unethical is something when someone chooses the wrong and ethical is always associated with choosing the right. Ethical issues in respect to E-Marketing includes ● Web Tracking ● Privacy Preserve ● Paid Advertisement And a lot more. The Internet and electronics have been influencing more lives staterting from video recording, video conference, pictures, web mails, contents etc are spreading in no time all over. But the security and protection remains to worry, that too in E-Business this fear is more. Therefore it turns out to be more tough to sense whom to trust online. Web tracking: 200 CU IDOL SELF LEARNING MATERIAL (SLM)