CHAPTER 4

MARKETING ON M- COMMERCE

Copyright © 2022, 2019, 2018 Pearson Education, Inc. All Rights Reserved
 • Understand the key features of the
Internet audience, the basic concepts
of consumer behavior and purchasing
and how consumers behave online.
• Identify and describe the basic digital
commerce marketing and advertising
OBJECTIVES strategies and tools.
• Identify and describe the main
technologies that support online
marketing
• Understand the costs and benefits of
online marketing communications
 Class Discussion
§ What advantages do video ads have
over traditional banner ads?
VIDEO ADS: SHOOT,
CLICK AND BUY § Where do sites such as YouTube fit into
a marketing strategy featuring video
ads?
§ What are some of the challenges of
placing video ads online?
Copyright © 2022, 2019, 2018 Pearson
Education, Inc. All Rights Reserved
 § The 4Ps of marketing
1. WEB MARKETING § Product – based marketing strategies
STRATEGIES § Customer – based marketing strategies
THE 4P MARKETING
 PRODUCT BASED MARKETING STRATEGIES

§ Web presence must integrate with image, brand

§ Product – based organization

ü Managers think of physical objects sold or used

ü Customers think in terms of product categories

 CUSTOMER – BASED MARKETING STRATGIES

§ Websites can be created that are flexible enough to meet the

need of many different users
§ Instead of thinking of their websites as a collection of products,
companies can build their websites to meet the specific needs
of various types of customers
§ The approach to web site design that accommodates the
differing needs of various types of customers is called a customer
– based marketing strategy.
 1.Trust, complexity and media
2. COMMUNICATING WITH choice
DIFFERENT MARKET SEGMENTS 2.Market segment
TRUST, COMPLEXITY AND MEDIA CHOICE
MARKET SEGMENT
 Five stages in consumer decision process
§ Awareness of need
3. THE ONLINE
§ Search for more information
PURCHASING § Evaluation of alternatives
DECISION (1 OF 2) § Actual purchase decision
§ Post-purchase contact with firm
FIGURE 6.2 THE CONSUMER DECISION PROCESS AND SUPPORTING
COMMUNICATIONS
 1.Decision process similar for online and
offline behavior
2.General online behavior model
§ User characteristics
3. THE ONLINE § Product characteristics
§ Website features: latency, usability,
PURCHASING security
§ Attitudes toward online purchasing
DECISION (2 OF 2)
§ Perceptions about control over Web
environment
3.Clickstream behavior
FIGURE 6.3 A MODEL OF ONLINE CONSUMER BEHAVIOR
 1.Shoppers: Over 92% of Internet users
§ Over 82% are buyers
§ Around 10% are browsers (purchase
offline)
3. SHOPPERS:
2.Online research influenced about $2.6
BROWSERS AND trillion of retail purchases in 2018
3.Online traffic also influenced by offline
BUYERS brands and shopping
4.E-commerce and traditional commerce are
coupled: Part of a continuum of consuming
behavior
4. ADVERTISING ON § Display ads/ banner ads
THE WEB
§ Display ad placement
 1.Online advertising
§ Display, search, mobile messaging,
sponsorships, classifieds, lead
generation, e-mail
§ Advantages:
ONLINE MARKETING AND ü Best way to reach the 18-to-34-
ADVERTISING year-old audience
ü Ad targeting to individuals
ü Price discrimination
ü Personalization
 DISPLAY ADS
§ Rectangular
object on a web
page that
displays a
stationary or
moving graphic
and includes a
link to the
advertiser website
 DISPLAY AD PLACEMENT

1.Ad exchange network

2.Business can place their display advertising to find a
website that appeal to one of the company’ market
segment
3.Place online advertising is to use a display advertising
network
DISPLAY AD PLACEMENT
FIGURE 6.6 HOW AN ADVERTISING NETWORK WORKS

Copyright © 2022, 2019, 2018 Pearson Education, Inc. All Rights Reserved
 1.Features of Internet marketing (versus
traditional)
5. DIGITAL COMMERCE § More personalized
§ More participatory
MARKETING AND ADVERTISING:
§ More peer-to-peer
STRATEGIES AND TOOLS § More communal
2.The most effective Internet marketing
has all four features
 1.Website
2.Traditional online marketing
§ Search engine, display, e-mail,
affiliate
6. MULTI-CHANNEL 3.Social marketing
§ Social networks, blogs, video, game
MARKETING PLAN
4.Mobile marketing
§ Mobile/tablet sites, apps
5.Offline marketing
§ Television, radio, newspapers
EMAIL MARKETING
 1.Direct e-mail marketing
§ Messages sent directly to interested
users
§ Benefits include
ü Inexpensive
ü Average around 3% to 4% click-
throughs
E-MAIL MARKETING ü Measuring and tracking responses
ü Personalization and targeting
2.Three main challenges
§ Spam
§ Anti-spam software
§ Poorly targeted purchased e-mail lists
 1.Unsolicited commercial e-mail
2.Around 55% of all e-mail in 2020
3.Most originates from bot networks
4.Efforts to control spam have largely
failed:
SPAM § Government regulation (C A N-S P A
M Act)
§ State laws
§ Voluntary self-regulation by
industries (D M A)
§ Canada’s stringent anti-spam laws
 1.Affiliate marketing
§ Commission fee paid to other
websites for sending customers to
their website
2.Viral marketing
OTHER TYPES OF § Marketing designed to inspire
TRADITIONAL ONLINE customers to pass message to
MARKETING others
3.Lead generation marketing
§ Services and tools for collecting,
managing, and converting leads
 1.Which part of the marketing plan should
you focus on first?
2.How do you integrate the different
platforms for a coherent message?
7. STRATEGIC ISSUES AND 3.How do you allocate resources?
§ How do you measure and compare
QUESTIONS
metrics from different platforms?
§ How do you link each to sales
revenues?
 8. TECHNOLOGY – ENABLED CUSTOMER

§ Is called as Customer Relationship Management

(CRM)
§ Occurs when a firm obtains detailed information
about customer’s behavior, preferences, needs,
buying patterns, uses that information to set prices,
negotiate terms, tailor promotions, add product
features, customize its entire relationship with
customers
 1.Website functions to:
§ Establish brand identity and
customer expectations
ü Differentiating product
ESTABLISHING THE § Anchor the brand online
ü Central point for all marketing
CUSTOMER RELATIONSHIP messages
§ Inform and educate customer
§ Shape customer experience
 1.Marketing automation systems
§ Track steps in lead generation
2.C R M systems
§ Manage relationship with customers once
MARKETING AUTOMATION AND purchase is made
§ Create customer profiles
CUSTOMER RELATIONSHIP
3.Customer data used to:
MANAGEMENT (CRM) SYSTEMS § Develop and sell additional products
§ Identify profitable customers
§ Optimize service delivery, and so on
FIGURE 6.9 A CUSTOMER RELATIONSHIP MANAGEMENT
SYSTEM
 § Elements of brand
9. CREATING AND
§ Affiliate marketing strategies
MAINTAINING BRANDS ON THE
§ Viral marketing strategies and
WEB
social media
 ELEMENTS OF BRAND

Perceived
Differentiation Relevance
value
 AFFILIATE MARKETING STRATEGIES

The affiliate firms includes

descriptions, reviews, ratings, other
information about a product that is
linked to another firm’ site that offers
the item for sale -> to save expenses
of handling inventories, advertising,
promoting products, processing and
transactions
 VIRAL MARKETING STRATEGIES AND SOCIAL MEDIA

1. Viral marketing relies on

existing customers to tell
other people – the
company’s prospective
customers – about the
products or services they
have enjoyed using
2. Viral marketing use word of
mouths, through individual
customers to do the same
thing.
 1.Search engine marketing (S E M)
§ Use of search engines for branding
2.Search engine advertising
§ Use of search engines to support
10. SEARCH ENGINE direct sales
3.Types of search engine advertising
MARKETING AND
§ Paid inclusion
ADVERTISING (1 OF 2) § Pay-per-click (P P C) search ads
ü Keyword advertising
ü Network keyword advertising
(context advertising)
 1.Search engine optimization (S E O)
2.Google search engine algorithms
3.Social search
§ Utilizes social contacts and social
graph to provide fewer and more
10. SEARCH ENGINE MARKETING relevant results
AND ADVERTISING (2 OF 2) 4.Search engine issues
§ Paid inclusion and placement
practices
§ Link farms, content farms
§ Click fraud
 1.Class Discussion
1. What distinguishes luxury marketing
from ordinary retail marketing?
2. What challenges do luxury retailers
INSIGHT ON BUSINESS: ARE THE have in translating their brands and
the look and feel of luxury shops into
VERY RICH DIFFERENT FROM Web sites?
YOU AND ME? 3. How has social media affected luxury
marketing?
4. Visit the Net-a-Porter website. What
do you find there?
 1.Customer retention strategies
§ One-to-one marketing (personalization)
§ Behavioral targeting (interest-based
advertising)
§ Retargeting
OTHER ONLINE MARKETING 2.Customization and customer co-production
STRATEGIES 3.Customer service
§ FAQs
§ Real-time customer service chat systems
§ Automated response systems
 1.Use R O I to measure ad campaign
2.Difficulty of cross-platform attribution
3.Highest click-through rates: Search
engine ads, permission e-mail
HOW WELL DOES campaigns
ONLINE ADVERTISING 4.Online channels compare favorably with
WORK? traditional
5.Most powerful marketing campaigns use
multiple channels, including online,
catalog, T V, radio, newspapers, stores
 1.Software that analyzes data at each stage of the
customer conversion process
§ Awareness
§ Engagement
§ Interaction
§ Purchase activity
MARKETING ANALYTICS § Loyalty and post-purchase
2.Helps managers
§ Optimize ROI on website and marketing
efforts
§ Build detailed customer profiles
§ Measure impact of marketing campaigns
FIGURE 6.11 WEB ANALYTICS AND THE ONLINE PURCHASING PROCESS
GROUP WORK

Analyze marketing strategy of Apple & Samsung (in the point of view of M-
Commerce)
Duration: 25 minutes
Submit in LMS
1 submission per group
Apple's Closed Ecosystem Strategy

Product Differentiation: Apple positions itself as Samsung's Diversified Approach

a premium brand with a focus on design, user Wide Product Range: Samsung offers a
experience, and ecosystem integration. Their broader range of devices, catering to various
devices are often seen as status symbols. price points and consumer preferences. This
App Store Control: Apple's App Store is a allows them to capture a larger market share.
tightly controlled ecosystem, ensuring a Partnerships and Collaborations: Samsung has
curated experience and maximizing revenue formed partnerships with various companies
from in-app purchases. to expand its ecosystem and offer additional
Brand Loyalty: Apple cultivates a strong sense services to its customers.
of brand loyalty through its unique design Customization and Flexibility: Samsung's
language, seamless integration across Android-based devices offer more
devices, and a focus on customer customization options, appealing to users who
satisfaction. prefer a more personalized experience.
Omnichannel Presence: Both Apple and Samsung have a strong online and
offline presence, ensuring a seamless shopping experience for customers.
Payment Solutions: They have integrated their own payment systems (Apple Pay
and Samsung Pay) to streamline the checkout process and encourage mobile
purchases.
Data-Driven Marketing: Both companies leverage data analytics to personalize
marketing campaigns, target specific customer segments, and optimize their
mobile commerce strategies.
Customer Support: Excellent customer support is essential for building trust and
loyalty in the mobile commerce space. Both companies invest heavily in
customer service.
GROUP WORK

Analyze marketing strategy of Apple (in the point of view of M-Commerce)

Duration: 25 minutes
Submit in LMS
1 submission per group
GROUP WORK

Analyze marketing strategy of Samsung (in the point of view of M-Commerce)

Duration: 25 minutes
Submit in LMS
1 submission per group
GROUP WORK

In the point of view of M-Commerce, analyze marketing strategy of :

◦ Samsung
◦ Apple
Duration: 25 minutes
Submit in LMS
1 submission per group
10 MINS BREAK
END