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ACCA Strategic Professional · Strategic Business Leader · E-business: value chain

Wexford Home Textiles sells through its website and wants to measure the effectiveness of its e-marketing. Management proposes to count only the number of orders taken online. Which view best reflects the scope of e-marketing as distinct from e-commerce?

E-marketing should be judged on broader objectives such as awareness, engagement and customer relationships, not just completed online orders. Orders reflect the e-commerce transaction outcome, whereas e-marketing uses electronic media to achieve marketing objectives, many of which digital tools can measure directly.

  1. AOrder counts are sufficient, because e-marketing exists only to generate sales transactions
  2. BE-marketing should also be assessed on wider objectives such as awareness, engagement and customer relationships, not only completed online salesCorrect
  3. CE-marketing should be assessed only on supplier cost savings from electronic ordering
  4. DE-marketing cannot be measured, because it uses intangible media

Explanation

E-marketing aims to achieve marketing objectives through electronic media, including awareness, engagement, customer data and relationship building, so measures should go beyond completed orders. Orders alone reflect the e-commerce outcome. Supplier savings relate to e-procurement. Digital media usually allow detailed measurement.

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