E-Marketing: Methods, Strategies and Tactics - Literature review Example

Topic: E-Marketing: Methods; strategies and tactics E-marketing can be a rewarding medium of making money. Some of the easy, cost-effective tacticsand tools to be used on a website include adding a “buy” button to one’s email signature. An email signature includes information about the product along with a “buy now” button, attached to the product purchase page. If there is more than one product, these can be revolved in and out of the signature of the seller (Beckwith, 2007). There are various other means such as creating a blog in an online community in MySpace.com as communities permit members with common likings to exchange things more comfortably. Knowledge of sophisticated technology, for example, using Windows Movie Maker, a video editing software program, to transform a PowerPoint presentation into a commercial can be made possible to host on YouTube.com. Niche audiences can be reached at through interactive tools such as blogs, which is quite effective in finding new customers (Beckwith, 2007). According to the readers’ poll on online marketing for 2011, the Search Engine Optimisation (SEO) ranks on the top for digital marketing tactics. Readers’ opinion was sought on what are the top three online marketing mediums and tactics. Readers did not vote for social media or email marketing but for SEO as the leading tactic for 2011 (Odden, 2011). Marketing strategies and tactics are determined by the marketing budgets that are planned to benefit from the best possible marketing mix for a given year. The responses from the survey can help companies in selecting strategies and formulating budgets accordingly. Respondents’ outlook has been quite holistic including search, social media, advertising, content and email as various tools in the kitty of e-marketing. The new addition in the top 10 e-marketing tactics has been content marketing, indicating the significance of critical content to impress upon the prospective customers to go for that product. Content is the magnet between SEO and social media. It is mostly the result of social communication online, to be shared and connected to generate better interaction on various types of search. According to the Junta42 Content Marketing Spending Report, 59% of marketers surveyed strategise to spend aggressively on content marketing in 2010 (Odden, 2011). Next-in-line in the top 10 e-marketing tactics is advertising through Pay per click and social media, but not with dedicated budgets. It points to the topical attention to Online Marketing Blog which considers the role of advertising relatively less than Search Marketing, Social Media, Content Marketing and Online PR. The viewing percentage of online marketing blog has gone up among readers in the marketing arena (Odden, 2011). Oestreicher (2011) analyses the marketing perplexity of tangible products in the virtual world because of ever-happening innovation in the field of technology and marketing connectivity. Newer technologies replace the older ones, creating the loss impact and the need for new marketing strategies. From technology perspective, the industry has not taken enough measures to save losses from the risk of downloading as in the music industry the marketing connectivity is quite weak. It has heightened fragmentation of the markets. Online strategies are on the rise relatively to traditional marketing strategies in various industries as in music industry. Generally, it is seen that marketers fail in enforcement and usage of ongoing marketing mix. Stress is given only to one P, mostly price, downgrading the criticality and interaction among various Ps. The marketers are now turning from Ps to S, which is space, the strategy for which needs to be reformulated by various industries invigoratively within the markets overflowing with new marketing forces (Oestreicher, 2011). It is observed that top marketers follow customer-driven market leadership strategies. Digital companies are finding new methods of adding value via customer interactions and new products, services and business models in an always-on-the-wheels digital world. The digital information arena is overflowing not only in the spread of information but its effect on traditional media models and certain businesses that thrive on digital marketing methods such as airlines and hotels, coping with newer technologies facilitating virtual meetings, creating the demand for business need of their services, as in media industry we see a reduction of the compact disc and decrease in the sale of DVD as customer demand has nosedived for digitally provided content. Customers are on the lookout online for finding means to save money over their total spending portfolio, necessitating new e-marketing channels, which are relatively easier. This symbiotic method is pivotal to new social business strategies that provide better tactical services through innovative marketing approaches (Baird and Wertz, 2011). Businesses need to create value by co-creating with customers to guide businesses in taking simpler routes to fulfil customer needs. This symbiotic method of benefitting from customer experience is at the centre of new social business mechanisms that take innovative market approaches and better tactical service (Baird and Wertz, 2011). Digital channel leaders are outshining other marketing efforts by pursuing a multi-channel strategy, which is very effective in enforcing digital service strategies by provoking customers to avail the services through cost-effective mediums to fulfil customer expectations (Baird and Wertz, 2011). Digital marketers are going ahead with their marketing initiatives by adhering to three basics related to approaches that maximise the possibility of differentiation. In the survey by IBM, respondents were questioned over the tactics to be employed by them in the next three years. Most of them prioritised entering into new customer markets. Next choice of respondents was improvement in the service provision. Respondents selected the new channel strategies and customer co-creation their next favoured approach to attaining differentiation, to be served as low-cost provider and winning the trust of customers. Zeroing-in leads to three core strategies: cost-effective and simple strategic service provision and innovative marketing (Baird and Wertz, 2011). It is observed that strategic service provisions help in improving customer interaction via new mediums, thus promoting customer dialogue. Strategically, the data-driven methods help in incessant learning and sharing with customers the means of fulfilling their needs. Comfort level of the customer is also paid attention by the companies. The example of using internet to avail services and resolving issues online substantiates how comfort of the customer is prioritised by marketers. Currently, customers do not require a CD to install print drivers, as they can straight-way download it from the Internet. On the same lines, when customers can create division in their credit card spending by tagging and graphing it, they get a much better view of their financial data and can take wise financial decisions. In various markets the effectiveness of these three strategies depending on assumptions can be varied. It requires equally efficient organisational strategy to zero-in the right road ahead to be taken by a specific business (Baird and Wertz, 2011). Duffy (2005) criticises the customer loyalty strategy of Starbucks coffee by offering to its customers the Starbuck Card Duetto Visa Card. It was a Visa Card + Starbucks prepaid card. The purpose behind such offer was to add more value by offering reward over the usage of the dual card, which was in the form of earning credit points for more purchases of the Starbucks products. Considering the brand attachment of Starbucks customers, such a promotion of the brand identity was not going to add any value as customers of the coffee brand were not going to be loyal to some other brand if the rewards was not offered and it was quite meagre also (earning 1% purchases in Duetto dollars), not inspiring customers to go for it. It created a superficial layer to the already in place natural relationship building programme of the brand. Marketers can take their lessons from such promotions on how to gain and re-enforce long-lasting customer loyalty. Marketing functions based on superficial promotions can not provide genuine loyalty because it is earned over a period. Such marketing programs based on frequent flyer programs cannot create the natural loyalty. Marketers should see to it that their companies are in sync with their value offering from the products and services performed with the zest and honesty that the customer cannot ignore (Duffy, 2005). The impact of marketing strategies and tactics is relatively more visible in tourism industry. The Internet and other information and communication technologies (ICT) have created fresh possibilities of adding value to customers. E-marketing uses information technology differently. The basic marketing principles do not change but impress the traditional marketing in three ways. First, they encourage effectively the set marketing functions. Secondly, e-marketing technologies revolutionise a number of marketing strategies. Lastly, it has basically transformed consumer behaviour by switching power from companies to users (Peštek and Čičić, 2010). Peštek and Čičić (2010) have discussed in the case study on Bosnia and Herzegovina from the perspective of tourism marketing that there is an abundance of opportunities and challenges because of ever-happening innovations in internet and technology. ICT has enabled companies to search new methods of market expansion, of appealing and winning customer loyalty by edging their products and services according to their requirements and by redesigning their business strategy to get competitive advantage. The travel and tourism industry can variously leverage from ICT to offer services at cost-effective and in minimum time consumed. Potential customers can at once compare given information on prices, products and opportunities from various travel websites as per the desired criteria. A simple review of the impacts of Internet use helps in taking a decision as based on market competition situations. Information provides the competitive value (Peštek and Čičić, 2010). Marketing strategy in tourism sector has outlined the importance of having a website, which is enabled by e-marketing in travel and hotel business. Internet is essential to a travel company’s marketing strategy, which is the reason why companies are highly dependent on future-focussed internet marketing to strengthen the competitiveness of a travel business. Companies have reported increase in the revenue up to 50% relatively to the past year of 20% (Peštek and Čičić, 2010). Only such companies stand the chance to remain in businesses that have formulated their e-marketing strategies by recruiting IT-efficient staff, developing their marketing plan, pointing towards the usage of standard structured practices (Peštek and Čičić, 2010). Companies’ functions indicate that the leading marketing strategy is e-mail communication. Functions related to the community development, website setting, customisation and interactive web pages are not fully developed. These are significant functions from future perspective to develop this e-marketing division as customers desire to customise the content as per their needs irrespective of whether it is related to e-mail or individualised websites (Peštek and Čičić, 2010). Companies’ websites can normally be located in popular databases or directories. Moreover, websites provide useful data on the environment, which is quite significant from the destination development viewpoint and linked synergic effects. This also boosts ranking through search engines and finally increases performance (Peštek and Čičić, 2010). It is also critical for the success of an e-marketing strategy to upkeep the website and updates it regularly. The time interval could be at the most one month and at the minimum one weak. Website updating is accomplished under the vigilance of senior management, which is yet another significant condition for the success of an e-marketing strategy (Peštek and Čičić, 2010). References: Baird, C.H. and Wertz, C.G., 2011. How top performers achieve customer-focused market leadership. Strategy & Leadership, vol. 39 (1). Database: Proquest Beckwith, S., 2007. Make moneythe e-marketing way! Techwatch, vol. 37 (8), p. 56. Database: ABI/INFORM Global Duffy, D. L., 2005. The evolution of customer loyalty strategy. The Journal of Consumer Marketing, vol. 22,( 4/5), p. 284. Database: ABI/INFORM Global Odden, L., 2011. SEO Tops Digital Marketing Tactics for 2011. Available from: http://www.toprankblog.com/2010/07/seo-tops-digital-marketing-2011/ Oestreicher, K., 2011. Against the odds – the marketing dilemma of physical products in an increasingly virtual world. International Journal of Business and Social Science, vol. 2 (2). Database: Proquest Peštek, A. & Čičić, M., 2010. Application of e-marketing strategies in tourism sector in bosnia and Herzegovina. School of Economics and Business in Bosnia and Herzegovina. Database: ABI/INFORM Global Read More