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

● 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. (ii) Demand for Product: Intensive study of demand for product and services in the market be undertaken before price fixation. If demand is relatively more than supply, higher price can be fixed (iii) Price of Competing Firms: It is necessary to take into consideration prices of the products of the competing firms prior to fixing the price. In case of cut-throat competition it is desirable to keep prices low. (iv) Purchasing Power of Customers: What are the purchasing power of the customers and at what price and how much they can purchase? It should also be taken into consideration. (v) Government Regulation: If the price of the commodity and services is to be fixed as per the regulation of the government, it should also be borne in mind. (vi) Objective: Usually, at the time of price fixation a certain amount of profit is added to the cost of production. If company’s objective is to earn higher profit it may add higher amount of it. (vii) Marketing Method Used: Price is also influenced by the marketing method used by the company, e.g., commission which is to be paid to the middlemen for sale of the goods is also added to the price. Similarly, if the customers are to be provided “after sale service” facility, then those expenses are also added to the price. Pricing is important due to the following factors: Factor # 1. Flexible Element of Marketing Mix: 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. Bringing about changes in advertisements or promotional activities is also a time-consuming task. But price is very flexible and can be changed according to the needs of the situation. Therefore, it is a very important component of marketing mix. 151 CU IDOL SELF LEARNING MATERIAL (SLM)

Factor # 2. Right Level Pricing: The wrong price decision can bring about the downfall of a company. It is extremely significant to fix prices at the right level after sufficient market research and evaluation of factors like competitors’ strategies, market conditions, cost of production, etc. Low prices may attract customers in the initial stages, but it would be very hard for the company to raise prices on a future date. Similarly, a very high price will ensure more profit margins, but lesser sales. So in order to maintain balance between profitability and volume of sales, it is important to fix the right price. Factor # 3. Price Creates First Impression: Often price is the first factor a customer notices about a product. While the customer may base his final buying decision on the overall benefits offered by the product, he is likely to compare the price with the perceived value of the product to evaluate it. After learning about the price, the customers try to learn more about the product qualities. If a product is priced too high, then the customer may lose interest in knowing more. But if he thinks that a product is affordable, then he would try to get more information about it. Therefore price is a critical factor that influences a buyer’s decision. Factor # 4. Vital Element of Sales Promotion: Being the most flexible component of marketing mix, price is the most important part of the sales promotion. In order to encourage more sales, the marketing manager may reduce the price. In case of goods whose demand is price sensitive, even a small reduction in price will lead to higher sales volume. However, prices should not be fluctuated too frequently to stimulate sales. 10.2.3 Pricing Decision Analysis The setting of a price for a product is one of the most important decisions and certainly one of the more complex. 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. Therefore, additional production is needed with all its attendant requirements concerning material, labor and overhead. Any student who has completed a course in principles of economics understands that the theory of price is at the center of economic thought. In management accounting, the analysis of price is not as nearly complex or mathematically sophisticated as in economic theory. The assumptions in management accounting are much simpler and more practical oriented. The following are taken into account by the company 1. Review of some basic economic fundamentals 2. Pricing using cost-volume-profit analysis 3. The special offer decision 152 CU IDOL SELF LEARNING MATERIAL (SLM)

Pricing decisions are the choices businesses make when setting prices for their products or services. Pricing is considered part of a company’s marketing strategy because it influences its relationship with customers: When prices are fair and competitive, customers come back, increasing the profitability of the business. Pricing decisions can be simple or complex. Simple pricing involves charging what competitors charge for similar goods and services. This strategy is often used by retailers and wholesalers selling commodities. Companies that make simple pricing decisions often try to increase sales by making small, competitive adjustments such as purchase discounts, volume discounts and purchase allowances. 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. If only pricing was as simple as its definition — there’s a lot that goes into the process. Pricing strategies account for many of your business factors, like revenue goals, marketing objectives, target audience, brand positioning, and product attributes. They’re also influenced by external factors like consumer demand, competitor pricing, and overall market and economic trends. It’s not uncommon for entrepreneurs and business owners to skim over pricing. They often look at the cost of their products (COGS), consider their competitor’s rates, and tweak their own selling price by a few dollars. While your COGS and competitors are important, they shouldn’t be at the centre of your pricing strategy. The best pricing strategy maximizes your profit and revenue. Before we talk about pricing strategies, let’s review an important pricing concept that will apply regardless of what strategies you use. 10.2.3 B2B PRICING MODELS When picking a pricing model, you need to consider a few different questions. The first question – are we going to offer one price point or many? A single price point is easy for customers to understand but leads to lower revenue. The price might be set too high for price-sensitive customers. Or it might be too low for customers who are willing to pay more for a premium service. Offering multiple price points can often be the best approach, especially if a company has complex solutions. 153 CU IDOL SELF LEARNING MATERIAL (SLM)

But too many price points can be a problem. Psychologists such as Barry Schwartz have demonstrated that when buyers are faced with too much choice, they may be paralyzed into inaction. The purchase may be deferred to a later date if it happens at all. Most companies try to find a balance by either: Offering a small number of pricing tiers Using a pricing model that’s linked to product usage or the number of users. This approach means that each buyer only sees a small number of pricing options, but because each buyer’s usage levels vary, there are many different possible pricing options in the market The second question – which value metric are we going to use? In other words, what and how are we going to charge for our solution? There are several different value metrics to consider: ● Users – customers pay more as the number of individuals who can access the product increases ● Active users – customers pay more as the number of people using the product increases ● Feature usage – customers pay more as the number of features they use increases, regardless of the number of users ● Activity – customers pay for each activity conducted. For example, email marketing platform users could pay per email sent When choosing a value metric, you should consider the benefits that customers are receiving from the product. For example, Slack uses the ‘active user’ value metric. An increase in active Slack users should lead to greater company productivity, which justifies charging per active user. Once you know the answers to these two questions, it becomes easier to pick the correct pricing model. Flat-rate pricing Flat-rate pricing means offering one product, with the same set of features, for one price. This model is easy to sell and communicate. Sales and marketing can focus on a single offer that is clearly defined. But, as mentioned above, flat-rate pricing prevents you from maximizing revenue. Flat-rate pricing is typically only suited to companies that have one product and limited revenue. Research has found that ‘the fastest-growing companies have less than one product per million dollars of revenue.’ Therefore, flat-rate pricing is best suited to companies who have just launched and may not hit that threshold. 154 CU IDOL SELF LEARNING MATERIAL (SLM)

Tiered pricing Most companies with tiered pricing models offer 3-6 tiers or packages. The most common tiered pricing model is linear. The lowest-priced tier has the fewest features, and each subsequent level adds new features for a higher price. The advantages of a linear model are: You push buyers to upgrade by offering more functionality Some features require more resources to develop/deliver. You can put these features in higher-priced tiers to ensure that you don’t under-sell them The market is likely to be made up of some very price-sensitive individuals and some less price-sensitive ones. Having linear pricing tiers allows you to offer a product for each level of price sensitivity You can include a free tier to get a ‘foot in the door’ with prospects – the so-called ‘freemium’ model However, it is challenging to optimize this model. It’s not clear which features users want at each tier or how many tiers they require. As a result, it’s easy for critical features to be in highly-priced tiers or for the only relevant features to be at the cheapest level, leaving money on the table. A less common tiered pricing model is to build packages/tiers around different customer needs. For example, an email marketing platform could design one tier for experts who want to send emails in volume and another tier for beginners who need hand-holding but not volume. Needs-based tiers can be very powerful as they can be tailored to specific customer personas. And up-selling is still possible – as customers’ needs change, the package they need may change too. The downside of needs-based tiers is that every customer has unique needs, and it becomes tempting to create many packages to cover every possible need. You can quickly end up with too many choices and overwhelm buyers. Usage-based pricing (i.e., Pay As You Go) The more you use a service, the more you pay. For example, Amazon’s Simple Email Service doesn’t have a monthly subscription for access. Users are only charged per email sent or received. The advantages of this model are: Price is linked to usage. Customers pay more in months of more significant activity, which may be months of greater revenue, making it easier to justify a larger invoice 155 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 156 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. 157 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 158 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 159 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. 160 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. ___________________________________________________________________________ ___________________________________________________________________________ 161 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 162 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 163 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. 164 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 165 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. 166 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 167 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 168 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure 11.2 Concept Map of innovations in E Marketing Electronic marketing, otherwise known as e-marketing, is defined as the application of marketing standards and techniques through the electronic media, especially the internet. The term e-marketing is often used interchangeably with internet marketing or online marketing. Many scholars have researched and extensively written on the concept of e-marketing (Haegele 2012). Numerous scholars acknowledge the fact that e-marketing generally implies the promotion of goods and services over the internet (Luar & Chen 2006). However, they do not realise that this is a narrow definition of what e-marketing as a concept encompasses. Even though e-marketing is rightly defined this way, it is important to note that its scope goes beyond the internet; it also entails marketing activities conducted through wireless media and emails. Other scholars have expanded the meaning of e-marketing to include digital customer data and the electronic customer relationship management systems (Luar & Chen 2006). Considering all these facts, it is clear that e-marketing ties together the technical and creative aspects of the internet, including development, advertising, design and sales. E-marketing can be categorised into three types: Pay Per Click or impression, Search Engine Optimisation and Social Media Marketing. In this respect, the specialists have defined Pay 169 CU IDOL SELF LEARNING MATERIAL (SLM)

Per Click or impression as a situation where advertisements for products and brands are conducted on a pre-decided website; it assists in generating leads for firms (Chaffey 2012). Furthermore, they have labelled Search Engine Optimisation as the procedure of improving the prominence of websites in search engines through free search outcomes. It is important to critically look at these types of e-marketing from the perspective of different scholars. According to Chaffey (2012), Pay Per Click or impression is similar to the known conventional advertising. In this regard, he argues that a relevant text advert with a specific link to a company’s page is displayed when search engine users type in a specific phrase. A study has shown that many users do click on paid listings. This is reported to be highly cost-effective for companies; this can drive a substantial amount of business deals for the search companies. Even though Chaff (2012) points out that there is a similarity between Pay Per Click advertising and the conventional advertising, he is able to acknowledge that there are two significant distinctions between the two. First, he recognises that in Pay per Click, the advertiser never pays for the advertisement to be displayed. Cost is only met when the advert is clicked on and the user is directed to the advertiser’s website. Second, he also realises that the Pay per Click is highly targeted as compared to the conventional advertisement. This implies that the relevant advert with a link to a specific destination website page is only displayed when an internet user types in a specific phrase. Dan and Dan (2011) argue that Search Engine Optimisation is an odd area of marketing that is seemingly B2B in nature, but bordering on business to computer in real conduct. Search Engine Optimisation marketing tries to establish the optimum mix of contents and meta-data to enhance the Search Engine’s automated review of the website’s content. However, although Search Engine Optimisation is officially viewed as a form of promotion and advertising, there is a probability that it may have become the first foray into a human- Artificial Intelligence barter programme. The last type of e-marketing is the Social Media Marketing. Kabani (2013) describes Social Media Marketing as the process of promoting a business or website through the use of different social media channels. This is true given that very many people have joined and continue to join various social media. These people are interconnected in a way that they are able to share information within a very short time. This has made the social media to be a podium that is available to all and sundry. Consequently, various companies have taken the advantage of the increased communication and the reduced cost to market their goods and services. E-marketing has both advantages and disadvantages. With the internet being free for everyone, e-business is prone to a significant number of threats. One of the threats is to do 170 CU IDOL SELF LEARNING MATERIAL (SLM)

with issues of security. It is important to note that as the number of internet users rises, the number of cyber-criminals also increases. This means that e-businesses are prone to cyber-attacks. Moreover, maintaining online contents may prove to be relatively expensive as e-businesses need to update their information every often. Besides, the e-businesses are also prone to public abuse or de- campaigning from users of the internet. For instance, the internet users may make negative comments on e-business marketing messages effectively distorting the integrity of the business. Therefore, businesses need to be careful when doing e-marketing (Luar & Chen 2006). However, e-marketing has some advantages that encourage businesses to adopt it. The first advantage of e-marketing is that businesses are able to reach out as many potential customers as possible. This has been occasioned by the fact that the internet transcends geographical boundaries. Again, the internet is cheap; this makes e-marketing cheaper than the conventional marketing strategies. This enables businesses to gain some significant profit margins. The concept of e- marketing allows marketers to do marketing around the clock. This is because the internet is always available at any time of the day or night. Finally, e-marketing helps businesses to build customer profiles by keeping information on what customers purchase most. 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. 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 171 CU IDOL SELF LEARNING MATERIAL (SLM)

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 Reach Local Global Results Delayed Instant (Real Time) Interruption Cannot skip Can skip Communication One-way Two-way 172 CU IDOL SELF LEARNING MATERIAL (SLM)

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. ● ‐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 173 CU IDOL SELF LEARNING MATERIAL (SLM)

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 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. 174 CU IDOL SELF LEARNING MATERIAL (SLM)

___________________________________________________________________________ ___________________________________________________________________________ 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 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 175 CU IDOL SELF LEARNING MATERIAL (SLM)

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% c. 18% d. 28% Answers 176 1-a, 2-c, 3-b, 4-d, 5-c 11.12 REFERENCES Reference Books ● Saxena R, Marketing Management, Tata McGraw Hill CU IDOL SELF LEARNING MATERIAL (SLM)

● 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 177 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. 178 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, 179 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 180 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 181 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. Examples MakeMyTrip / Facebook home page: Travel companies such as Makemytrip.com have creating dedicated Facebook Homepages featuring travelers comments and featured offers and allowing other Facebook users to sign up as ‘Friends’. (http://www.facebook.com/pages/MakeMyTrip) OkTataByebye.com: (www.oktatabyebye.com) this Make My Trip’s travel based social networking site allows travellers to find and share personal travel experiences, honest hotel reviews on Indian destinations. 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. 182 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 183 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 also a part of content is 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: 184 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. 185 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 186 - Content Indexing - Good Link Structure - Key words and Key targeting CU IDOL SELF LEARNING MATERIAL (SLM)

Examples Numerous examples of general and/or specific blogs exist in the Indian tourism industry: HolidayIQ: (www.holidayiq.com) it is India’s largest travel and holiday information portal. It provides latest hotel reviews, photos, deals, flight search, blogs and forums for over 350 Indian tourism destinations. Goablog: (www.goablog.org) this Weblog focuses on spreading the art, culture and traditions of Goa, Goa travel and tourism issues. It also tries to get the tourist location reports and reviews timely. It publishes the articles and photographs of non-commercial type by the tourists with their name and other details. 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 These Websites do not sell holiday packages or tickets but tell users more about holiday destinations. CLAY (Club Mahindra and You) - It is a platform created by Club Mahindra Holidays for the travelers and adventurers to share their experiences, adventures and just about anything in the area of travel, leisure and holiday. Regular contributors are given with a digital badge that they can display in their own blog, email signature or desktop. (www.clubmahindrablog.com) 187 CU IDOL SELF LEARNING MATERIAL (SLM)

Club Mahindra Membership blog: It is another blog for Club Mahindra members to inform them about the Membership Updates, News articles and new memberships and get feedback from them. (http://clubmahindramembership.blogspot.com) 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. 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-Itis 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. 188 CU IDOL SELF LEARNING MATERIAL (SLM)

 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? 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 189 CU IDOL SELF LEARNING MATERIAL (SLM)

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__________. 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 190 CU IDOL SELF LEARNING MATERIAL (SLM)

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 191 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. 192 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 193 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: 194 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. 195 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 196 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 197 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 198 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. 199 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. 200 CU IDOL SELF LEARNING MATERIAL (SLM)