Unit 11

Methods and Techniques

of E-Marketing - II

Structure
11.1 Introduction
Objectives
11.2 Sponsorship Techniques
11.3 Direct Marketing Techniques
E-mail Marketing
E-mail Newsletters
Catalogue Distribution

11.4
11.5
11.6
11.7
11.8
11.9
11.10
11.11

Merchandising Techniques
Online Seminar Techniques
Word-of-Mouth Marketing Techniques
Summary
Glossary
Terminal Questions
Answers
Case Study

Caselet
Myntra, Zovi Strive for E-marketing Push
Online apparel retailer Zoviwanted its clients to try out what they intended to
buy. So, a virtual trial room was created customers could go for a trial through
an interactive Webcam.
The new approach worked well for Zovi, which sold in house designed labels.
Its marketing head acknowledge they saw a jump of over 25 per cent in
conversion rates since the virtual trial room was launched. To further expand
its reach, Zovi started a brand awareness campaign, including commercials
on television. It also plans to display its range of merchandise at malls and
places of high-footfall.
According to the marketing head, having an offline presence gives credibility.
Myntra, another multi-brand online fashion retailer, made a similar attempt.
After launching the try and buy concept sometime back, it has now now
rolled out a virtual dressing room. Called the style studio, the virtual dressing
room proposes to make online shopping more interactive. The style studio
enables users to take their own photographs using a Webcam and try out

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the selected product. It also has an option for users to share their looks with
friends on Facebook and Twitter.
The online stores concept of try and buy churned profit for the company.
The concept allowed consumers to shop for a product online, get it deliver,
try out the merchandise and then decide about buying it. The idea was
similar to physical shopping at outlets.
Since then, the retailer has seen a sharp jump in the number of visitors
shopping on its portal. According to the co-founder and head of sales, Myntra,
the company did around 2.5 lakh transactions per month and would achieve
their revenue target of `500 crore.
Source: Adapted from http://timesofindia.indiatimes.com/tech/enterpriseit/strategy/Online-retailers-like-Myntra-Zovi-offer-touch-feel-comfort-underoffline-push/articleshow/17214712.cms. (Retrieved on 17 November 2012)

11.1 Introduction
In the previous unit, you learnt about the different methods of advertising, selling
products, promoting sales, and establishing customer relationships.
With 1.4 billion e-mail accounts active as of 2009, with that number
predicted to rise to 1.9 billion by 2013 (The Radicati Group E-mail Statistic Report,
2009), e-marketing provides businesses with an efficient form of marketing to
complement the existing advertising strategies and having a close look on the
market. E-mail provides a convenient, non-intrusive, uncomplicated solution to
all e-marketing issues.
The principal benefits of e-marketing include:
Speed: messages are delivered straight to the recipients inboxes, instantly.
Reach and penetration: overcomes geographical parameters that exist
with other communication methods.
Ease and efficiency: messages can be distributed to multiple recipients
at the click of the mouse.
Low cost: requires minimal investment to set up an appropriate technical
system.
Setting the target: allows you to target specific recipient groups and
reach a defined, engaged audience.

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In this unit, we will discuss about the different methods for online
sponsorship, merchandising, holding seminars and word-of-mouth online
marketing.

Objectives
After studying this unit, you should be able to:
interpret different online sponsorship techniques
identify techniques merchandising
explain online seminar techniques
describe word-of-mouth online marketing techniques

11.2 Sponsorship Techniques

Websites that utilize pay-per-click (PPC) ads display advertisements when a
keyword query matches an advertisers keyword list. These advertisements
are called sponsored links or sponsored ads. Some of the most common PPC
providers are Google AdWords etc.
Some of the most popular sponsorship techniques are as follows:
(i) Sponsoring an online event, site, service, tool or material:
Sponsorship is an important Web-marketing tool. Companies sponsor
pages of different Websites and once they sponsor the Web pages, the
brand name of the company starts reflecting on each of the sponsored
Web pages every time a user visits it. This helps in promoting the brand
to the users of a particular Web page.
(ii) Product placement: Product placement, or embedded marketing, refers
to a form of advertisement, where businesses advertise their
branded goods or services through a medium usually devoid of ads, such
as movies, music videos, the story line of television shows, or news
programs. However, product placement is normally not revealed at the
time when the good or service is featured. The success of product
placement is measured by the economic effects it has on a certain product,
in particular how the stock price of the company is affected through the
product placement.

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Self Assessment Questions

1. Websites that utilize ___________ advertisements display advertisements
when a keyword query matches an advertisers keyword list. These
advertisement are called ____________.
2. Some of the most common PPC providers are ________, _________
and ____________.
3. _________ or ___________, refers to a form of advertisement, where
businesses advertise their branded goods or services through a medium
usually devoid of ads, such as movies, music videos, the story line of
television shows, or news programs.
Activity 1
Visit the site flipkart.com and then subscribe for their newsletters or product
updates as a flyte music purchase (in the process you need to give an email ID where you intend to receive all communications from the merchant).
After completing the process, log in to your e-mail account and check for
any transactional e-mail from the merchant.
Hint: Transactional e-mail comprises (i) e-mail address confirmations; (ii)
password resets; (iii) purchase receipts; (iv) account balance updates; (v)
monthly newsletters, etc.

11.3 Direct Marketing Techniques

Direct marketing is a form of advertising that allows businesses and non-profit
organizations to communicate straight to the customer, using advertising
techniques such as cell phone text messaging, e-mail, interactive consumer
Websites, online display ads, fliers, catalogue distribution, promotional letters,
and outdoor advertising.
Some of the important features of direct marketing are:
1. Marketing messages are addressed directly to the customer(s).
2. Direct marketing seeks to drive a specific call to action.
3. Direct marketing enables tracking measurable responses from customers.
Direct marketing is practiced by start-ups to the leaders on Global Fortune
500.
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11.3.1 E-mail Marketing

E-mail marketing implies sending e-mail containing a commercial message to
prospective customers or present customers with a view to building loyalty,
trust, or brand awareness, thus attracting new customers or persuading present
customers for repeat business. These e-mails normally contain ads, business
request or sales solicitations.
E-mail marketing is carried out in different ways:
Transactional e-mails
Transactional e-mails are usually sent in response to a customers action with
a company. These messages include dropped basket messages, purchase or
order confirmation e-mails and e-mail receipts.
Transactional e-mails provide a golden opportunity to engage customers;
to extend the e-mail relationship with customers or subscribers, to anticipate
and answer questions, or to cross-sell or up-sell products or services.
For example, if a user signs up for receiving notifications from a Website
of interest, then the user is probably welcomed with a good e-mail. That is a
transactional e-mail. Here, the signing up is a transaction and the reply is the
transactional e-mail.
Some other worthy sources of transactional e-mail:
e-mail address confirmations
password resets
purchase receipts
account balance updates
monthly newsletters
Direct e-mails
Direct e-mails are aimed solely at communicating a promotional message (e.g.
an announcement of a special offer or a catalog of products) to a targeted list of
recipients. Companies usually collect a list of e-mail addresses of prospective
customers or rent a list of e-mail addresses from third parties.

11.3.2 E-mail Newsletters

E-mail newsletters are sent directly through e-mail to a list of subscribers and
customers on a routine basis.

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11.3.3 Catalogue Distribution

Catalogues of various companies can be delivered to the customers directly
through e-mail. The contact update feature of a catalogue ensures that
customers, without fail, receive regular updates related to the new products of
the company.

Self Assessment Questions

4. ___________ implies sending e-mail containing a commercial message
to prospective customers or present customers with a view to building
loyalty, trust, or brand awareness, thus attracting new customers or
persuading present customers for repeat business.
5. ___________ are usually sent in response to a customers action with a
company.
6. __________ are aimed solely at communicating a promotional message
(e.g. an announcement of a special offer or a catalogue of products) to
prospective customers.

11.4 Merchandising Techniques

Merchandising refers to a practice followed to promote the sale of products to
retail customers, e.g. the availability of a range of products and displaying them
in a manner that stimulates the interests of the customers, thus luring them to
make a purchase. The following are some of the popular merchandising
techniques followed:
Promotional ad-serving: Ad-serving describes the technology and service that
places advertisements on Websites. Ad-serving technology companies provide
software to Websites and advertisers to serve ads, count them, choose the ads
that will help Websites or advertisers make most money, and monitor the progress
of different advertising campaigns.
E-mail alerts: E-mail alerts provide with a time-saving solution to keep customers
abreast of all new online products launched by a group and its online services.
On Flipkart, for example, if a particular item is out of stock, the customer can
request for an e-mail alert to be sent when the item is available.
An e-mail is sent to inbox at the time of the launch of the product and the recipients
can browse the latest content immediately. This e-mail is packed with information
and links, and the users can easily navigate to their areas of interest.
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Personalized recommendations: This marketing tool facilitates in personalizing

the Internet content by allowing to know the customers, and then making smart
recommendations about what they might like based on the feedback thus
obtained.
Virtual tours: A virtual tour is a simulation of an existing location, usually
composed of a sequence of video images. This could be carried out using
multimedia elements such as sound effects, music, narration, and text. A virtual
tour is used for a variety of video- and photographic-based media.
Product demonstrations: Product demonstrations can be delivered over the
net easily through audio and visual aids like videos which could actually show
the new product launch and the use of the product. For example, the use of
Websites like YouTube to demonstrate the working of various technical products
so that the user can get an idea of how the product works.

Self Assessment Questions

7. __________ refers to a practice followed to promote the sale of products
to retail customers, e.g. the availability of a range of products and displaying
them in a manner that stimulates the interests of the customers, thus
luring them to make a purchase.
8. _________ provide with a time-saving solution to keep customers abreast
of all new online products launched by a group and its online services.
9. A _________ is a simulation of an existing location, usually composed of
a sequence of video images. This could be carried out using multimedia
elements such as sound effects, music, narration, and text.

11.5 Online Seminar Techniques

The seminar techniques of e-marketing include:
(i) Webinar: It is a Web-based seminar, which is a form of presentation,
workshop lecture or seminar delivered over the Web. It allows interaction
between the presenter and the audience. In contrast, a Webcast is one in
which the data transmission is one way and does not allow interaction
between the presenter and the audience.
(ii) White paper distribution: A white paper is an authoritative report that
discusses a complex process in an easy-to-understand manner to the
benefit of the end-users.
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White paper distribution is a marketing tool or a service which enables

companies to take their problem-solving white papers instantly to millions
of prospective customers. White paper distribution services are offered
by Websites most frequently visited by customers. Efficient white paper
service Websites receive lots of traffic everyday via sources like SEO,
social media, magazines, referring sites, blogs, online directories, etc.
(iii) Podcast: A podcast is a type of digital media consisting of an episodic
series of audio files subscribed to and downloaded through Web
syndication or streamed online to a computer or mobile device.
The online workshops and seminars act as important marketing tools as they
are:
Convenient for everyone involved
Seminars conducted over the internet, however, are much more convenient to
attend and facilitate. Since thousands of people can attend from the comfort of
their own home or office, virtual seminars save space and make attendance
easier.
A more cost-effective alternative
Online seminars are a marketing tool that do not require a costly monetary
investment E-mail invites via save time and postage, and all attendees really
need is software for audio and video conferencing.
Real time interaction with customers
Many online workshops feature instant feedback via a live question and answer
session. Since online seminars and workshops are a vital part of business
marketing, these tools should not be ignored.

Self Assessment Questions

10. ___________ is a Web-based seminar, which is a form of presentation,
workshop lecture or seminar delivered over the Web.
11. A white paper is an __________ that discusses a complex process in an
easy-to-understand manner to the benefit of the end-users.
12. A __________ is a type of digital media consisting of an episodic series
of audio files subscribed to and downloaded through Web syndication or
streamed online to a computer or mobile device.

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11.6 Word-of-Mouth Marketing Techniques

Word-of-mouth marketing, also called word-of-mouth advertising, is one of the
most credible, unpaid forms of marketingoral or writtenwherein satisfied
customers tell other people how much they like a business, product, service, or
event. Word-of-mouth techniques of e-marketing include:
(i) Viral marketing: Viral marketing or marketing buzz is a marketing technique
that uses pre-existing social networks to increase product sales through
increasing brand awareness and self replicating viral processes which is
similar to spread of viruses or computer viruses. The viral messages thus
transmitted appeal to readers with high social networking potential who in
turn spread the same in their communications with others.
According to Andreas Kaplan and Michael Haenlein, the following three
basic criteria need to be fulfilled to take advantage of the viral marketing to
send the right messengers in the right place at the right time:
1. Messenger: There are three specific types of messengers:
market mavens, social hubs and salespeople, who play an important
role in viral marketing.
2. Message: Messages have to be memorable and sufficiently
interesting for the viral marketing phenomenon to be successful.
3. Environment: The environment has to be compatible in terms of
the timing and context of the campaign launch for viral marketing.
A good example of viral marketing is the Tamil-English, Kolaveri Di.
It was used for promotion of the upcoming Tamil film 3, as it created
a huge difference in the world of publicity. Another example is when
Hotmail was launched, to introduce it to more and more number of
users a link directed to the home page was attached to each and
every outgoing e-mail inviting the recipient to join.
(ii) Affiliate marketing: Affiliate marketing is a performance-based
marketing strategy in which the company rewards one or more affiliates for
each visitor or customer attracted by the affiliates own marketing efforts.
There are four key players involved in affiliate marketing: the merchant (or
the retailer or brand), the network (that takes care of affiliate payments and
offers), the publisher (or the affiliate) and the customer.
Example: While surfing through the Web, most often you will come across
Web pages having sections (links) dedicated to products other than what is
mainly dealt with by the Website. This is affiliate marketing.
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So, if you click on the link, it will take you directly to the merchants page
through the affiliates link and if you dont want to go through to the merchant
site, you can choose to read the affiliates short or full reviews of each product.
Affiliate marketing is often confused with referral marketing, although they
are two distinct forms of marketing. The main difference between the two is that
affiliate marketing is driven by financial motivations, while referral marketing is
driven by trust and personal relationships.
Types of affiliate Websites
Following are different types of Websites normally used by affiliate marketers:
Comparison shopping Websites
Loyalty Websites
CRM sites
Coupon and rebate Websites
Niche Websites
Personal Websites
Weblogs
E-mail list affiliates
Registration path affiliates
Shopping directories
Cost per action networks
Virtual currency (For example, Linden Dollars (L$) is the virtual currency
issued in Second Life, a virtual world where users create avatars, i.e.
digital characters that can be customized. Another example is of Apple
providing iTunes users the option of buying prepaid iTunes gift cards, which
contain credits that can be redeemed for music and movies.)
Video blog
File sharing

Self Assessment Questions

13. ____________ or marketing buzz is a marketing technique that uses preexisting social networks to increase product sales through increasing
brand awareness and self-replicating viral processes which is similar to
spread of viruses or computer viruses.
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14. __________ is a performance-based marketing strategy in which the

company rewards one or more affiliates for each visitor or customer
attracted by the affiliates own marketing efforts.
15. Affiliate marketing is the same as referral marketing. (True/False)

11.7 Summary
Let us recapitulate the important concepts discussed in this unit:
Websites that utilize Pay-Per-Click (PPC) ads display advertisements
when a keyword query matches an advertisers keyword list. These
advertisements are called sponsored links or sponsored ads. Some of
the most common PPC providers are Google AdWords etc.
Direct marketing is a form of advertising that allows businesses and nonprofits organizations to communicate straight to the customer, using
advertising techniques such as cell phone text messaging, e-mail,
interactive consumer Websites, online display ads, fliers, catalogue
distribution, promotional letters, and outdoor advertising.
E-mail marketing implies sending e-mails containing a commercial
message to prospective customers or present customers with a view to
building loyalty, trust, or brand awareness, thus attracting new customers
or persuading present customers for repeat business. These e-mails
normally contain ads, business request or sales solicitations.

11.8 Glossary
Catalogue: It refers to a complete list of items offered by a business for
the customers to look at or buy.
Virtual currency: It is an emergent economy existing in a virtual persistent
world, usually exchanging virtual goods in the context of an Internet game.
People enter these virtual economies for recreation and entertainment
rather than necessity, which means that virtual economies lack the aspects
of a real economy that are not considered to be fun).
White paper: It refers to an authoritative guide issued by a business that
enables its readers to understand the built-in complexity of a product and
thus make a decision.

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11.9 Terminal Questions

1. List the benefits of e-marketing.
2. What are the different direct marketing techniques?
3. What are the sponsorship techniques adopted by businesses?
4. Do you think the merchandising technique is better than any other
technique?
5. What are the word-of-mouth marketing techniques?
6. Explain online seminar techniques as an instrument of marketing.

11.10 Answers
Self Assessment Questions
1. Pay-Per-Click (PPC), sponsored links or sponsored ads
2. Google AdWords, Microsoft adCenter, Yahoo! Search Marketing
3. Product placement, embedded marketing
4. E-mail marketing
5. Transactional e-mails
6. Direct e-mails
7. Merchandising
8. E-mail alerts
9. Virtual tour
10. Webinar
11. Authoritative report
12. Podcast
13. Viral marketing
14. Affiliate marketing
15. False

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Terminal Questions
1. The benefits of e-marketing are as follows:
Speed
Reach and penetration
Ease and efficiency
Low cost
For more details, refer section 11.1.
2. Different direct marketing techniques are:
(i) E-mail marketing
(ii) E-mail newsletters
(iii) Catalogue distribution
For more details, refer section 11.3.
3. The sponsorship techniques normally adopted by companies are:
(i) Sponsoring an online event, site, service, tools or materials
(ii) Product placement
For more details, refer section 11.2.
4. Merchandising refers to a practice followed to promote the sale of products
to retail customers. For more details, refer section 11.4.
5. Different word-of-mouth marketing techniques of marketing are as follows:
(i) Viral marketing
(ii) Affiliate marketing
For more details, refer section 11.6.
6. The seminar techniques of e-marketing include webinar, white paper
distribution and podcast. For more details, refer section 11.5.

11.11 Case Study

Ambit Changes Strategy
Ambit Energy, a retail energy provider, was declared the fastest growing
private company in the United States in 2010. Though the companys sales
had been pushed by outside independent sales consultants, Ambit wanted
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to increase sales margin through its Website and call center. The company
was, however, cautious due to a bad experience in the past.
What Ambit needed was a team that had experience, knowledge, and
technological input to perform for a $1 billion company. Ambit knew they
needed an integrated online marketing solution that included SEO, PPC,
online reputation management, and social media. And, IMI created a
successful partnership with Ambits national PR team in order to do just that.
When designing the strategy, the IMI team conducted in-depth research and
spent hours with the client and their PR team to acquaint with their demands.
A senior company official said they performed competitive analysis,
completed a diagnostic analysis to determine SEO Website improvements,
and did keyword research for SEO and PPC. IMI also began monitoring
negative content about the brand Ambit and researching the Websites such
as Scam.com that ranked on the first page of Google for brand terms and
executive names. The full strategy included the following:
SEO diagnostic analysis
search engine optimization
online reputation management
pay per click advertising
usability and conversion testing
social media consulting
Discussion Questions
1. Analyse the companys e-marketing strategies with respect to their
delivery systems. Analyze how they can sale SEO and PPC to increase
traffic and lead generation through AmbitEnergy.com.
2. Also analyse how they can use Online Reputation Management and
Social Media to push denigrating content off the first page of Google.
Source: Adapted from http://www.internetmarketinginc.com/ambit-energycase-study/. (Retrieved on 26 March 2013)
References
Assael H., (1992), Consumer Behaviour and Marketing Action, USA, PWSKent.
Blythe J., (2001), Essentials of Marketing, Prentice Hall.
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Brassington F, S Pettitt, (2000), Principles of Marketing, Prentice Hall,

Harlow.
Chisnall P.M., (1997), Marketing Research, London, McGraw-Hill.
Fill C, (2002), Marketing Communications, Contexts, Strategies and
Applications, Prentice Hall.
E-References
http://step2bee.com/e-marketing-methods-strategics-and-techniques/.
(Retrieved on 26 March 2013)
http://marketing.about.com/od/internetmarketingstrategy/Internet_
Marketing_Strategy.htm. (Retrieved on 26 March 2013)

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