The

Power of e Marketing
President and CEO
eMarketing Association
Robert Fleming
The
Internet is Different
• A rare
example of a modern functional anarch
y
• No official censors, no bosses, no
board of directors, no stockholders
• No one “owns” the Internet, there is no
“Internet, Incorporated”
• The “Internet” itself, doesn’t even
officially exist as an entity
• The “Internet” never charges for
anything. Each group accessing the
internet is responsible for their own
machine and access
Evolution
Of The Internet
Phase One:
Portals
Everywhere
Phase Two:
Simple
Transactions
Phase Three:
The
Digital Decade
The Internet Grows
• 600 million
people access the internet worldwide (
2002 est.)
• 2002 e-commerce 1 trillion dollars
(est.)
• 68% increase in e-commerce 2000 vs.
2001
• Over 1 billion web pages, 40 million
sites
Rapid
Increase in Internet
Use in the United
States Across States –
Over half the population
August 2000

September 2001

Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

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

What
are they doing online
?
• More time
• More money
• More services
• Fewer sites
Online Activities 2001 – Internet users Age
3+
Oct 1999
4.3
9
6
3
0
Time spent online
Oct 2001
8.2
Source: Jupiter
• 75% of
online customers say the Net makes th
eir lives better
• 79% of Net users utilise it for
information for offline purchases
• AOL online average minutes per day:

1999 2001
47 63
Impact
of Internet on
media consumption
Source: (USA) Scarborough National
Internet Study
• 23% Watch TV less often

• 9% Listen to radio less often

• 15% Read newspaper less often

• 20% Read magazines less often

Print
Morning Paper
Paper/Mags
Leisure Mags

Outdoor
Journey
To Work
Out for
Lunch
Journey Home

Radio
Breakfast Show
Drive Time
Drive Time

Online
Check News/
Mail
Messenger
News, Sport,
Finance
Messenger
Web Cast
Reaching consumers
throughout their
media day
e-commerce
only represents
a minor fraction of
total GDP...
e-commerce
(3%)
2002
US GDP Projection
Traditional retail
(97%)
The
Internet has to suppo
rt
Brick & Mortar
 Initiate Relationship
in Information Stage
Increase Product Selection
Develop Aftermarket
Contact
Develop Customer Knowledge
Reduce Inventory Needs
Reach New Customer Sets
Internet
Contribution to Bricks and Mortar
… and Bricks &
Mortar must
support the Internet
Brand Reinforcement
and Trust
Capture urgent and impulse buys
Facilitate
Delivery
Capture Aftermarket Profits
Reach a larger customer base
 Place to touch and test-
drive product
Bricks & Mortar
Contribution to Internet
Customers
must be able to
move
back and forth
seamlessly ...
Shop
Research
Buy
Own
Dispose/ Repurchase
Awareness

Internet
Bricks and Mortar
Shared Customer Info
Role of Bricks and Mortar
Transform Bricks and Mortar
Integrated Systems
 Marketing
Employment Is Growi
ng
“Employment of advertising,
marketing, promotions,
public relations, and sales
managers is expected to
increase faster than the
average for all occupations
through 2010 ”
Source: United States Department of Labor
eMA
Employment Survey

70%
of all management level ma
rketing positions
require Internet abilities and
/or experience.
Internet
Related Jobs Are NOT
Just in I T
Source: Center for Research
in eCommerce, graduate
School of Business,
University of Texas at Austin

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

•Corporate
communications
•Advertising
•Corporate identity
•Product positioning
•Market Research
IT/MIS
Continues to Dominat
e Web Management
• Lack
of technical understandin
g by marketers
• Fast changing technology
can create confusion
• Corporate politics plays a
role
Efficient
Organization
Effective
Organization
Outlook
• Increasing
shift of web site responsibility from
MIS to marketing
• Increased technical knowledge
required from marketers
• Internet marketing accounts for 15% of
all advertising impressions and only
5% of marketing budgets
• The gap will close between
impressions and budget
• Marketer must understand new tools
No Other Media Has All
of the Advantages of
eMarketing. Period.
• Cost effectiveness
• Global reach
• Interactive response
• Measurability
• Personalization
• Real-time feedback
But E-
marketing Suffers Fro
m
• Lack of data – 5 years vs. decades
for magazines, radio
• Lack of understanding of technology
by marketers
• Fast moving and turbulent arena
• Changing technologies
• Lack of trained personal
• Senior management barriers
• Corporate culture
Online
Marketing Tools Are
Less Than 6 Years
Old (That’s First
Grade)
• E-mail marketing
• Site design for e-commerce
• Viral marketing
• Affiliate marketing
• Banner advertising
• Search engines
• Online publicity
• Research
 • CRM
Site Design for E-
marketing
• Merchant account checkout
• Visitor expectations
• Surveys
• Content
• Technical considerations
• Color
• Plug ins
• Product descriptions
• Company information
What
Works on a Site ?
Common Influences on Online Purchase
Shipping fees
92%
Prices
92%
Product availability
 86%
Special promotions or incentives
76%
Selection
69%
Order tracking
66%
Clearly identified delivery time
65%
Return policy
63%
Ease of use
62%
Site performance/speed
51%
Source: Vividence

Search Engines
• Pay for position taking a strong lead
• Search engine optimization (SEO)
critical
• Majority of users rely on search
engines for navigation
• Targeted audience
• Accounts for over 70% of new site
visitors
• Turbulent arena
E-mail Marketing
• E-mail
is the number one app with over 90%
of internet users
• Issues such as browser differences,
targeting, and privacy are critical
• Spam, creates a major negative for e-
mail marketing, laws passed in 19
states
• Only 3 years of significant use
Viral Marketing
• Hot Mail
was one of the first examples of
viral marketing
• Another “e” term for “word-of-mouth”
advertising
• Bulletin boards, e-mail, chat rooms are
the major conduits for viral campaigns
• What is “buzz”
Affiliate Marketing
• Partnership
and affiliate programs are booming
• Cooperation between online
companies
• Commission programs and banner
exchange programs lead this channel
Banner Advertising
• Volatile
history with sharply declining click thro
ugh rates
• New forms such as java, active x,
• Pop-ups, pop-under and other new
delivery methods are gaining
acceptance
• Branding is possible with banners
Research
• Log files
• ASP log conversion
• Metrics for e-marketing analysis
• Surveys
Challenges
• Integration of e-
marketing and conventional marketing
creates a “blurred channel”
• Hybrid advertising
• Marketing mix
• Consumer expectations
• Technological limitations
• New innovations
• Legal issues
Conventional Media
• Addition
of web address creates hybrid advertis
ing
• Web site can degrade or enhance
conventional efforts
• Visitor experience becomes critical
• Diffused metrics
Technological
Limitations
• Different browsers
• Online software (plug ins java –flash
etc.)
• Screen resolutions
• Bandwidth speed
• Operating systems
• Server technology
Legal Issues
• Privacy policies
• Spam
• International commerce
• COPPA
• 19 states have anti Spam laws
• Dozens pending in congress
• Online disclosure
Emerging
Technologies.
• Wireless
poised to triple over the next few
years
• Smart chips could track BM purchases
 • Higher bandwidth could allow for
increased streaming media on sites
• MPEG4 – good enough for video?

• ???
80% Still Dial-up
Source: NTIA and ESA, U.S. Department of Commerce,
using U.S. Census Bureau Current Population Survey Supplements

One Example
One More
CRM
•Digital
innovations become an
integral part of life
•Breaks down logistical
barriers
•Offers greater flexibility
and power
•Shrinks time and
business
•Simplifies complex
business processes
•Enables effective
communication and
collaboration
•Opens up new markets
The 21st Century
• Explosive increase in innovation
• Extraordinary dynamism of technology
• Exceptional increases in productivity
• Myriad new forms of business activity
• Expanding opportunities
• Level playing field
 The
eMarketing Associati
on
• Accreditation
body for CeMA and CeM Certifications
• Certifications now offered in over 250
schools
• Largest association representing e-
marketing exclusively
• Recognized globally
• Extensive e-marketing resources
CeMA Certification
Certification—a
sign of competence and ach
ievement in this field—
is particularly important
in a competitive job market.
While relatively
few advertising, marketing,
and public relations
managers currently are certi
fied, the number
of managers who seek certif
ication is expected to grow.
Source:
United States Department of Labor
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Presentation
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gAssociation.Com/ppt
.htm
Questions