E-Marketing (HSC SSCE Business Studies): Revision Notes
E-Marketing
What is e-marketing?
E-marketing (electronic marketing) refers to using the internet to carry out marketing activities. Technology has transformed how businesses reach customers, enabling them to access global markets through websites that can promote products and deliver them worldwide within hours of ordering.
With the rapid development of the 'information superhighway' and electronic communication, marketers are increasingly using various forms of e-marketing to connect with customers. The terms internet marketing, web marketing and online marketing are often used interchangeably with e-marketing.
E-marketing in Australia
Recent data shows significant growth in Australian online commerce. In , Australians spent $29.7 billion on online shopping, with approximately 80.8% of the population shopping online. Projections suggest that soon one in every ten purchases will occur through e-commerce platforms.
The Risk of Falling Behind
Australian businesses, particularly retailers, have been relatively slow to embrace e-marketing. Many businesses provide product information online but do not offer purchasing capabilities. Key statistics reveal:
- 59% of small businesses lack a website
- While 71% of Australians use social media, only 51% of small and medium enterprises (SMEs) maintain a social media presence
This reluctance poses risks. In today's digital environment where most consumers search and shop online, businesses that fail to establish an online presence risk losing customers to overseas retailers who offer online convenience.
E-marketing technologies
There are six main technologies currently used for e-marketing. Each offers different ways to connect with customers and promote products or services.
Web pages
A web page presents information through a combination of text, graphics, animation and video. Multiple related web pages linked together form a website. When users search for a business online, they typically arrive first at the home page, which contains:
Essential Home Page Elements
A well-designed home page should include:
- Basic business information
- Links to other pages within the website
- Detailed information about business locations (including maps and photos)
- Product catalogues
- Online ordering facilities
A well-designed home page serves as a powerful marketing tool, creating the first impression for potential customers and guiding them to relevant information.
The Website Gap in Australian Business
Despite the importance of websites, research by GoDaddy found that 59% of Australian small businesses lack a website. The main reasons cited include:
- Perception that the business is too small (44%)
- Cost concerns (30%)
- Lack of time to build or manage a website (17%)
Podcasts
Podcasting involves distributing digital audio or video files over the internet. Typically, podcasts are directed to subscribers who receive regular updates.
Businesses primarily use podcasts for marketing and advertising purposes. Independent podcasters often sell advertising time similarly to commercial radio stations. When a podcast targets the same audience as a business's target customers, podcast advertising can effectively reach those customers.
Targeted Podcast Advertising in Action
Here are practical examples of how businesses match their advertising to specific podcast audiences:
- A sporting goods store advertising on a podcast aimed at triathletes
- A specialist food store advertising on a podcast for vegetarians and vegans
This targeted approach ensures marketing messages reach interested audiences who are more likely to respond positively.
Electronic messages
A commercial electronic message includes any electronic communication (such as email, SMS, MMS or instant messaging) that offers, advertises or promotes a business, product or service.
Common Uses of Electronic Messages in Business
Businesses can use electronic messages to:
- Send newsletters to subscribers
- Promote sales or special offers
- Distribute discount coupons to loyal customers
- Alert regular customers about special deals
- Notify suppliers about goods shipments
SMS offers distinct advantages over email because messages are delivered automatically to recipients without requiring them to log in or dial in. This immediate delivery makes SMS particularly effective for time-sensitive promotions and notifications.
Blogs
A blog is an online diary or journal where readers can typically add comments, ask questions, provide feedback or share opinions.
Businesses use external blogs to facilitate communication between the business and its existing and potential customers. These blogs serve multiple purposes:
Advantages of Business Blogs
1. Establishing expertise — Business owners and employees can demonstrate their knowledge by providing detailed information about products and services
2. Gathering feedback — New product ideas or service changes can be shared publicly to obtain comments and suggestions from various stakeholders
3. Building trust — The informal nature of blogs presents a human face to the public, helping build relationships with customers
Blogs enable businesses to announce new products, communicate changes in trading hours, and engage in two-way conversations with their customer base.
Location-based marketing
Location-based marketing enables businesses to adapt and deliver targeted marketing messages to customers based on their physical location, using mobile devices to track and report where people are. By understanding consumer locations, brands can connect with daily habits and encourage purchases through relevant, location-specific offers.
Customers receive these marketing messages when they use mobile devices to search for local businesses or 'check in' to particular places through online location-based services.
How Geotargeting Works
Geotargeting works by identifying device IP addresses. Every connected device has a unique IP address, which can be matched to determine user location.
For instance, when you search for 'coffee shops' on Google, the search engine uses your device's IP address to return results for coffee shops in your specific area.
This technology allows businesses to reach customers at the right moment when they are nearby and potentially ready to make a purchase.
Social media advertising (SMA)
Social media advertising (SMA) refers to online advertising through social media platforms such as Facebook, YouTube and Twitter to deliver targeted commercial messages to potential customers.
Over recent years, businesses have increasingly recognised that SMA produces positive results, especially when combined with traditional advertising methods.
Advantages of SMA:
- Inexpensive compared to traditional advertising methods
- Easy to use and monitor — accessible to businesses of all sizes
- Effective exposure — reaches large audiences quickly
- Measurable — marketers can accurately track reach (the number of people exposed to the message) and frequency (the average number of times someone sees the message)
Disadvantages of SMA:
- Limited control — marketers cannot fully control what online consumers write about the business
- User freedom — users can discuss, review, criticise or even ridicule products or businesses
- Privacy concerns — questions about data protection and user privacy
- Trust issues — concerns about accuracy and honesty in advertising
- Legal challenges — evolving issues such as age limits (Facebook and YouTube prohibit users under ) and fake or unofficial 'fan pages'
Why businesses use social media advertising
Marketers recognise they must reach customers where they spend their time. Facebook alone has over billion monthly users globally. This massive audience represents enormous marketing potential.
Social media advertising has evolved from simple billboard-style online ads to engaging, inclusive experiences. Businesses now get customers reached through social networks to, in turn, reach other potential customers. Online customers are not simply advertising targets; they often become contributors in creating and distributing advertising content. This approach enables businesses to continuously build and strengthen customer relationships.
Real-world Impact: The Digital Advertising Giants
Facebook and Google dominate global digital advertising. In , Google generated over US`$134 billion from digital advertising, while Facebook made over US$`31 billion. Combined, this represents almost half the world's total digital advertising spending.
Case study: Mes Cheveux salon
Real Business Success: Mes Cheveux Salon
Mes Cheveux, a luxury hairdressing salon in Parramatta, demonstrates effective social media advertising in practice. Founded in by Charlie Helou and Josephine Staltari, the salon relied heavily on social media during its establishment phase when marketing funds were limited.
Social media strategy:
- Maintained vibrant presence on Instagram and Facebook
- Posted before-and-after photos showcasing stylists' work
- Used customer testimonials and reviews to attract new clients
- Engaged with customers after salon visits through social media
- Responded promptly to enquiries received outside opening hours
- Followed industry leaders and competitors for research and inspiration
Results:
- Generated significant new business through social media
- Built brand awareness through word-of-mouth recommendations
- Changed customer behaviour — many clients reference social media posts for hairstyle inspiration
- Maintained ongoing customer relationships beyond salon visits
Charlie Helou notes: "Two of the best things about social media is that it's not an expensive form of marketing and it's simple to use — it requires only a small amount of attention each day to create a loyal brand following."
Positive social impact through SMA
Some businesses use social media advertising to create positive social change. In , Dove launched Project #ShowUS in response to research showing 70% of women felt underrepresented in media and advertising. The campaign created the world's largest photo library produced by women and non-binary individuals to challenge beauty stereotypes. With over 1,000,000 hashtag uses and 13,000 images in the library, this demonstrates how brands can leverage online platforms for meaningful social impact.
Future of e-marketing
Social media advertising is expected to expand rapidly as new, highly interactive mobile platforms and networks gain consumer acceptance. Businesses that establish strong e-marketing strategies now will be better positioned to compete in an increasingly digital marketplace.
The key for Australian businesses is recognising that traditional marketing methods alone are insufficient in the digital age. To succeed, businesses must maintain an online presence where customers already spend their time searching and shopping for products and services.
Remember!
Key Points to Remember
- E-marketing uses the internet to perform marketing activities, enabling businesses to reach global markets quickly and efficiently
- Six main e-marketing technologies include: web pages, podcasts, electronic messages, blogs, location-based marketing, and social media advertising
- Social media advertising offers cost-effective, measurable marketing but requires businesses to accept less control over consumer commentary
- Australian businesses, particularly small businesses, have been slow to adopt e-marketing, creating risk of losing customers to overseas online retailers
- Successful e-marketing requires businesses to be where customers are — increasingly online and on mobile devices
Key Terms:
- E-marketing — the practice of using the internet to perform marketing activities
- Podcasting — distribution of digital audio or video files over the internet
- Blog — an online journal where readers can add comments and feedback
- Social media advertising (SMA) — online advertising through social media platforms
- Reach — the number of people exposed to an advertisement message
- Frequency — the average number of times someone is exposed to an advertisement message