Introduction
E-marketing is defined as "a type of e-commerce that achieves marketing objectives through the use of electronic communications technology such as the internet, mobile phone, e-mail, and databases" (Smith & Chaffey, 2005). Smith and Chaffey (2005) emphasizes the following points:
1. It should not be the technology that drives e-marketing, but the business returns from gaining new customers and maintaining relationships with existing customers.
2. E-marketing does not occur in isolation, but is most effective when it is integrated with other communications channels such as telemarketing, direct-mail, personal selling, advertising, publicity, sales promotion, and other promotional techniques
3. E-marketing should be based on knowledge of customer needs developed by researching their characteristics, behaviour, what they value, and what keeps them loyal.
4. Online channels should also be used to support the whole buying process from pre-sale to sale to post-sale and further development of customer relationships where this is appropriate.
5. The web and e-mail communications should be personally tailored to individual buyers based on the infomation obtained in the research
This paper will explore the evolution of market research and intelligence, evaluate the key external factors that have spurred or inhibited the development of e-Marketing, show the growth, and access the level of commitment to e-Marketing in the retail industry.
Market Research and Intelligence
Market research is a systematic approach to collecting, analyzing, and reporting data relevant to a business' specific marketing situation. There are many sources in which to collect this data including but not limited to internal sources, periodicals, commercial data, and government publications. A company may also hire a market research firm to conduct a custom marketing of specialty-line research strategy. Market research information is then used to discover market opportunities, estimate future demand, or survey buyers' intentions.
Market intelligence supports the business goal of identifying trends, government regulation that affects that industry or analyzing market segments. Retailers use market intelligence by sending out shoppers to their establishment in order to access how employees are treating customers and to access overall customer service. This information is then used to make improvements or access market opportunities.
Growth and Development of e-Marketing in the Retail Industry
In the past retailers used commercials, print advertising, and Sunday sale circulars to market to customers. In today's age of technology, those medias alone simply will not work. Today's retailers are "focused on driving site traffic, commerce, or both. Tactics primarily revolve around affiliate and search marketing, focused cost-per-click, and cost-per-sale display advertising. From a site perspective, advertisers have worked improve site usability and design.
The process of market research is assembling information, analyzing its value, and interpreting market information about products or services to be presented for sale in a particular market (McDaniel & Gates, 2006). Market research is also about historical, current and future customers for the product or service being researched. Market research as stated by McDaniel and Gates, (2006) is a combination of characteristics, spending trends, position and the needs of the firm’s target market, the industry the firm is working in, and the firms competitors.
Routes of marketing in business today include e-mail, pop up advertisement, television and banner advertising. This paper will primarily focus on e-mail marketing. E-mail marketing is different when marketing to a business versus a consumer. Debbie Weil (2002) lists five ways business-to-business marketing is different from business-to-consumer email marketing. Weil (2002) says these five ways are:
According to the American Market Research Association, market research is … “the systematic gathering, recording, and analysis of data about problems relating to the marketing of goods and services”. There are number of key words that are identified in the above definition. They are: * Systematic- this means using an organised and clear system * Gathering- this means knowing what you are looking for (e.g. target audience) and collecting appropriate information * Recording- this means keeping clear and organised records of what you discovered * Analysing- this means putting the information in order and making sense of your information in order to identify the relevant trends and finding out the conclusion.
Through these adverts they show off each of their different Sections, from foods and drink to jewellery and clothing for men and women. Through this kind of Digital Media customers get a feeling of what the company’s seasonal plans are and what will be on
Market research assists a company to determine the best media outlets to place their advertisements. For instance, a youth-based market may prefer an online advertisement while older customers may opt for radio stations and television adverts.
"E-marketing tools and processes allow firms to deliver on the marketing concept to individual consumers in ways that could rarely be achieved in the past. The Internet allows for mass customization, so individuals can now contact firms electronically over the Internet and receive responses tailored to their needs" ("What is E-Marketing?", 2003).
Technologies such as the social media, the web, mobile phones and customer relationship management systems and has a significant impact on current marketing. A surge of new technologies exists today to assist marketers in attaining and researching existing and future customers. Newer technologies, such as GPS, DVR's, social media and smart phone applications, are becoming even more important. Developments in technology make it possible for marketers to operate even more efficiently. Because of these developments marketers can reach immense numbers of people. They are able to now interact with customers, make appointments and handle last minute orders or cancellations, more easily. The internet has become a main tool in a majority of households for communication, researching, shopping and entertaining.
Briefly it is a systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company, allows management to make the changes necessary for better results through adopting a proactive approach. Therefore, if a company wants to know what type of products or services would be profitable it should make a market research. Furthermore, a comprehensive research will enable the company to know about the product imperfections (if there are) and to know if it has been able to satisfy customers’ needs. It attempts to provide accurate information that reflects a true state of affairs. Due to market research the company can formulate a viable marketing plan and estimate the success of its existing plan. There are two main sources of marketing research information:
Internet marketing is a reliable tool and affordable. It is easy to introduce a product and brand through internet. It is easy for marketers to work on internet marketing. They can show a better thing to consumers in less time and cost. (Jamie Swartz)
Shin, N. (2001). Strategies for Competitive Advantage in Electronic Commerce. Journal of Electronic Commerce Research, 2 (4), pp. 164-171.
E-marketing is a fast growing and rapid platform for any form of business. EBay has been highly successful over recent years and this is a perfect example of an online business. The internal and external environments are constantly changing and in order to keep up with these changes, businesses and organisations must make relevant changes, and generate new strategies to keep up with contemporary developments in e-marketing and to also maintain their position in their market in comparison to their competitors.
...cular market. Companies that conduct market research normally save a lot of money by understanding what type of product or service is needed, other than entering the market blindly without knowing what to expect.
The report also talks about the differences between, advantages and disadvantages of e-business and e-commerce. Recommendations and advice have been given in the end for businesses intending to adopt an e-business dimension.
The American Marketing Association defines marketing research as “The systematic gathering, recording, and analyzing of data with respect to a particular market, where market refers to a specific customer group in a specific geographic area.”(McDaniel & Gates, 2006, p 6)
As Peter Duckers has put it, "The ultimate aim of all business organisation is - to create a customer". These days, for most products and services, the market belongs to the buyer. The customers e...