The Background Of Electronic Marketing

Published Date: 02 Nov 2017

According to Smith and Chaffey (2005), the sell-side e-business includes methods and applications that aim sell to customers that can be directly or indirectly with help of intermediaries. On the other hand, Gelinas et al. (2011) argued that sell-side e-business encompass activities such as marketing, selling, delivery, service good and service to customers by mean of internet and advanced technology. There are different aspects of sell-side e-business with regard to researchers founding that managers of small chain of high class restaurants should take into consideration (Gelinas et al., 2011):

Customer Relationship Management (CRM)

Electronic-Marketing (E-Marketing)

Electronic-Catalogue (E-Catalogue)

Electronic-Payment (E-Payment)

CRM

CRM is outlined as a business approach to control and pick the most profitable customer relationships. CRM needs a customer-oriented business attitude to maintain and support operational and effective marketing, sales, and service processes. CRM applications enable organizations to effective customer relationship management, providing right leadership, strategy, and culture for them (Lee, 2007). There are different types of CRM that are (Payne, 2005, 23):

"Operational CRM – This is the area that is concerned with the automation of business processes involving front-office customer contact points. These areas include sales automation, marketing automation and customer service automation".

"Analytical CRM – This involves the capture, storage, organization, analysis, interpretation and use of data created from the operational side of the business".

"Collaborative CRM – This involves the use of collaborative services and infrastructure to make interaction between a company and its multiple channels possible. This enables interaction between customers, the enterprise and its employees".

E-CRM is a term used to describe wide-ranging of technologies that are supported companies’ CRM strategy (Kennedy, 2006).

E-CRM software and applications is designed to control the whole data about clients, "such as marketing, field service, and contact management data" (Gelinas et al., 2011, p 352). There are different e-CRM applications that can bring many benefits for businesses particularly for restaurants, see table 1.4 below, such as (Turban et al, 2006):

Consumer-facing applications: it can help customers to directly communicate with a company and also enable the company to automate information flow.

Customer-touching applications: the aim of these applications is to direct access of the customers with applications such as; campaign management, FAQs.

Online networking applications: people who working for a company by taking advantages of these applications are able to communicate with great number of customers via chat rooms, Facebook pages and etc.

Table 1.4: Benefits of CRM Applications and Software for Restaurants (Alizadehranjbar, 2012, p 32-33, and BinarySemantics.com, 2012)

Save time by reaching to customers via e-mail, SMS’s and promotional offer

Decrease costs

Increase customers satisfaction

Provide up-to-date information about customers

Increase profitability and revenue

Collect information about customers and therefore recognize what is customer favorites

Filtering and get to target customers for offering / advertising campaign / special occasions

Target campaigns by goal to increase average number of covers for the duration of less busy time (special for restaurants)

Offering different freebies and specific program to attract customers to come restaurants regularly

Identifying regular customers and as part of loyalty programs offering them some benefits

Recognize customers likes and dislikes about restaurant and service offered from their suggestions

Electronic-Marketing (E-Marketing)

E-Marketing can be seen as a new philosophy in modern business that included with the promoting of products, services, information and thoughts through the internet and other electronic technologies. There are different views of e-marketing among researchers. According to Smith and Chaffey (2005) e-marketing is achieving marketing goals via using internet and other advanced technologies.

As table 1.5 shows, there are different tools and techniques that mangers of small chain of high class restaurants can use to promote the restaurants’ position in marketplace. It should be noted that CRM application can provide great benefits for the small chain of high class restaurants in the case of e-marketing via SMS and e-mail (Restaurantdairy.com, 2012).

E-mails and SMS are fully customized to the restaurant as wanted.

Reservations can be confirmed automatically and sent to the clients that contains information of the reservation, coming events and promotions.

Send an email automatically the day after the customer has visited the restaurants in order to express thanks and ask them for feedback.

Make a list based on reservation history, customer’s interests and other information as so to "deliver a more targeted and personalized message".

Although, e-marketing has some disadvantages such as the cost of implementing (Hardware, Software, cost of maintenance), data security (Smith, 2005). But with regard to benefits that can bring for businesses and as it is integral part of e-business, companies need to implement and use e-marketing to expand their business. Regarding to different techniques, tools and their functionalities that mentioned in table 1.5 below, Web-site, e-mail marketing, mobile marketing, search advertising and online videos suggested for the small chain of high class restaurants.

Table 1.5: E-marketing Tools and Techniques (Fáilte Ireland, 2012, p 7-5 and Zuccaro, 2010, p 6-7):

Website: the website is a fundamental e-marketing tool used to support business online.

Search Engine Optimization: This process help a company to optimize its website so that it can be happen more in Google searches.

Local listings and classifieds: Make business list on listing Websites like Citysearch to as so to confirm that consumer’s checking out for close businesses notice yours.

Search advertising: it is a technique of putting online commercials on Web pages close to search engine results. For instance, With AdWords (www.google. com/adwords), a company will send message when someone is looking for the sort of product or service that the company offered.

Contextual ads: it can use a company by putting Contextual ads on websites linked to its offerings.

Group buying: it is a method to communicate with new clients by benefits of programs that "offer multiple buyers collective purchasing deals".

Mobile marketing: Various smart phones and mobile devices offer great range of functionalities such as "web browsing, GPS, cameras and video capabilities". It can help businesses to develop creative advertisings by sending "text messages and location-based social networks".

Social networking sites: a company can develop its business by take advantage of social networking sites, such as Facebook, Tweeter etc., where followers talk about products and services.

Affiliate marketing "Affiliate marketing lets you get other businesses to drive prospects to your website".

Online videos: it helps a company to reach new customers by uploading videos on video-sharing websites. Customers inspired by videos that be short and contain offer for them such as product discount. There are different companies such as MobileDemand that by YouTube channel help businesses to deliver information and news.

E-mail Marketing: it is a technique of sending e-mail to potential customers and informs them of new products and services.

Electronic Catalogue (E-catalogue)

An e-catalogue is a Web publication, which tends to show a graphic interface in general at html page where the goods and services presented by a company (Catalogue designers, 2008). There are different types of catalogues according to their functions (Schneider, 2007):

Static catalog: It is a simple list transcribed in HTML that gives the idea on a Web page or a series of Web pages about products, services or promotions. The company has to revise the HTML of pages "to add an item, delete an item, or change an item’s listing".

Dynamic catalog: this type can store the data about catalog in a database, regularly on a different computer that is available to the electronic server that is running the Web site itself.

With regard to functionality, dynamic catalog suggested for chain of restaurants. There are several advantages of e-catalogues that mangers of the chain restaurants can take advantage of them, see table 1.6.

Table 1.6: Advantages of E-catalogues (Catalogue designers, 2008)

Low costs: E-catalogues help companies to reduce cost as a result of they do not need spend on paper and printing unlike typical catalogues.

Market growth: companies’ customer enabled to accesses online catalogues all around the global at any time. E-catalogues enable a company to increase the sales and expand their markets by find new customers and provide faster service for them.

Interaction: e-catalogues let a direct communication between the company and its customers.

Information for customers: a company can provide information about the products and services and link them to other sites to get complementary information about the subjects that the company’s website leads with.

Regular update: E-catalogues content is stored on a server that is accessible from all around the world. Therefore, a company will be able to update information at regular bases and easy way. It can help the company to provide information about latest product, service, and price for its customers.

Electronic Payment (E-Payment)

An e-commerce electronic payment is a financial exchange that takes place in an online environment. Electronic Payment Systems (EPS) has facilitated online payment for goods and services by using integrated software and hardware systems. Managers of small chain of high class restaurants can take advantages of EPS that are (Bidgoli, 2002, and McKinley, Latimore, 2001):

Easy to use and secure environment for online transaction with customers that it can improve customer service and increase customer satisfaction

Reliability in billing and receivables

Decrease costs by reduced payment beginning cost and reduced processing cost

Enhanced information flows

Increase speed and improve efficiency

As table 1.7 shows various EPS. With regard to functionality Credit card, Electronic money, E-wallet, Online payment, Smart cards suggested for small chain of high class restaurants.

Table 1.7: Electronic Payment Systems (Bidgoli, 2002, p 195-197)

Electronic funds transfer (EFT) involves electronic transfer of money by financial institutions

Payment cards include stored financial value that can be transferred from the customer’s computer to the merchant’s computer

Credit cards are used by charging against the customer credit and are by far the most popular method used in EPSs

Electronic money (e-money or e-cash) is standard currency converted into an electronic format to pay for online purchases

Electronic gifts are one way of sending electronic currency or gift certificates from one individual to another. The receiver can spend these gifts in their favorite online stores provided they accept this type of currency

Online payment Online payment of monthly utility, Internet, or phone bills

Smart cards include stored financial value and other important personal and financial information used for online payments

Electronic wallets (e-wallets) are similar to smart cards in that they include stored financial value for online payments

Micropayment systems are similar to e-wallets in that they include stored financial value for online payments; however, they are used for small payments, such as pennies

Conclusion

To sum up, various technologies based on e-business suggested for small chain of high class restaurants. Table 1.8 shows the summary of e-business technologies that suggested for small chain of high class restaurants. It contains four main steps and nine sub-steps to adapt e-technologies and internet that can help to develop business, reduce costs, wastes and satisfy customers.

Table 1.8: E-business Enables for Small Chain of High Class Restaurants

Step /

Sub-Step

Criteria

Suggestion

Step 1

IT system

Cloud Computing suggested based on cost of infrastructures, software and capability.

Step 2

In-Side E-business/Internal Processes

Interaction between manager and employee (B2E), control and analysis Internal process such inventory, finance and etc.

Sub-Step 2.1

Online people management/ Online service

Intranet enables manger and employee to communicate, sharing information and gain many benefits that mentioned before.

Sub-Step 2.2

Online Business process

Point of Sale System enables customer order and shopping patterns; analyze and controlling of inventory and etc.

Web-Based EDI enabled the company to integrate internal and external activities through supply chain by facilitate sharing information

Step 3

Buy-Side E-business

Interaction between the company with business partners (B2B)

Sub-Step 3.1

E-procurement

Using e-procurement software such as cloud SRM that is one of e-procurement internet-based tools

Sub-Step 3.2

In-bound logistic

Using 3PL With regard to costs

Sub-Step 3.3

Warehousing

Using Cloud Warehouse Management System

Step 4

Sell-Side E-business

Interaction between the company and customer (B2C)

Sub-Step 4.1

CRM

Take advantage of E-CRM applications

Sub-Step 4.2

E-marketing

Using Web-site, e-mail marketing, mobile marketing, search advertising and online videos

Sub-Step 4.3

E-catalogues

Using dynamic catalog

Sub-Step 4.4

E-payment

Credit card, Electronic money, E-wallet, Online payment, Smart cards