Chapter 8 8 Strategies for Marketing Sales and

Chapter 8 8 Strategies for Marketing, Sales, and Promotion Electronic Commerce 1

Objectives u Establishing 8 an effective business presence on the Web u Web promotion techniques u Meeting the needs of web site visitors u Web site design usability testing u Identifying and reaching customers on the web 2

Objectives u Effective 8 Web marketing approaches u Elements, strategies, and costs of branding u Web business models for selling 3

Creating an Effective Web Presence u Presence l 8 Public image it conveys to stakeholders u Stakeholders l Include customers, suppliers, employees, stockholders, neighbors, and the general public u Internet l l increases importance of presence Only contact a customer might have with company is with the company web site Can be critical even for the smallest and newest company 4

Identifying Web Presence Goals u. A firm’s physical location rarely is image-driven 8 Physical location must satisfy many other business goals unrelated to image and presence l Web sites can perform many imageenhancing tasks effectively l Businesses must decide which tasks their Web site must accomplish and which tasks are the most important to include l 5

Achieving Web Presence Goals u Goals associated with effective web sites include: 8 Attracting visitors l Making the site interesting to explore l Creating a positive image consistent with the company’s desires l Reinforcing already held positive images regarding the company l 6

Toyota Web Presence Figure 8 -1 8 7

Quaker Oats Web Presence Figure 8 -2 8 8

ACLU Web Presence Figure 8 -3 8 9

Mo. MA Web Presence Figure 8 -4 8 10

How the Web is Different u Companies 8 early in Web history failed to recognize what visitors wanted from Web sites l Often failed to include e-mail addresses or adequate staffing to answer customers’ e-mail messages u Web l l presence should include: History Mission statement Financial and product information Method of contacting the organization 11

How the Web is Different u Christopher l 8 l E-zine (electronic magazine) publisher on the Web Argues for unrestricted online dialog with a firm’s customers, suppliers, and other stakeholders u David l l Locke Weinberger Cluetrain Manifesto- 95 theses aimed at major businesses or organizations that use the Web Firms must use the Web for meaningful, two-way communication with their customers 12

Meeting the Needs of Web Site Visitors u Why visitors come to Web sites To learn about or buy a company’s products or services l Get product support for products already bought l Obtain financial or general product information about a company l Communicate with the company or identify who manages it l 8 13

Meeting the Needs of Web Site Visitors u Web 8 site interface flexibility Versions with and without frames, graphics l Multiple information formats l Allows users to easily access multiple levels of information detail l 14

Usability Testing u How 8 users navigate through a series of web site test designs u T. Rowe Price redesigned their web site so no more than 2 page clicks were required to get to desired information 15

Kodak’s Redesigned Home Page Figure 8 -5 8 16

Usability Hints u Design 8 the site around how visitors navigate, rather than around the company’s organizational structure u Allow quick information access u Avoid exaggerated marketing claims 17

Usability Hints u Build 8 a site using the oldest browser software on the oldest computer, using the slowest connection, even if that means making multiple versions u Be consistent and clear with design and navigation controls u Test text and color combinations 18

Nature of Communication on the Web u Two l 8 methods of reaching customers: Personal contact model Also called prospecting u Firm’s employees individually search for, qualify, and contact potential customers u l Mass media model Firm delivers message and broadcasts it through billboards, newspaper, television, etc. u Addressable media is sometimes distinguished from mass media u v Addressable media is directed to known addresses, and includes direct mail, telephone calls, and e-mail 19

Mass Media, Personal Contact, and the Web Figure 8 -6 8 20

Measuring Web Site Effectiveness u Different 8 l from measuring mass media Mass media effectiveness determined by estimates of audience size, called cost per thousand (CPM) u CPM is a dollar amount for each thousand people in the estimated audience 21

Web Terms Used in Marketing u. A Visit occurs when a visitor requests a page from a web l 8 Further page loads counted as part of the visit for a time period chosen by the site administrator u Trial l visit First time a visitor loads a web site- after that, it is called a repeat visit u Page l view Each time a visitor loads a page- if the page has an ad, this is called an ad view u Impression l -- each time a banner ad loads If a visitor clicks the ad to open it, it is called a click or click-through 22

Information Acquisition Approaches: Levels of Trust Figure 8 -7 8 23

New Marketing Approaches for the Web u Traditional mass-market advertising has decreased in effectiveness 8 l Advertisers respond through market segmentation u Divides the pool of potential customers into common demographic characteristics, such as age, gender, income level, etc. called segments u Targets specific messages to these groups u Micromarketing- targeting very small market segments 24

Technology-Enabled Relationship Management u Occurs 8 when a firm obtains detailed information about a customer’s behavior, preferences, needs, and buying patterns and uses that information to customize its relationship with that customer l Can use this information to set prices, determine needs and desires, and negotiate terms 25

Customer Relationship Management Figure 8 -8 8 26

Cdnow Marketspace Features Figure 8 -9 8 27

Creating and Maintaining Brands on the Web u Elements 8 of branding Differentiation l Relevance l u Degree the product offers utility to the customer l Perceived value 28

Elements of a Brand Figure 8 -10 8 29

Emotional vs. Rational Branding u Emotional appeals work well in mass media because ad targets are passive 8 l Do not work well on Web, however, because Web is active medium u Rational l branding Gives people valuable service in exchange for viewing ads u Examples include free e-mail and secure shopping services 30

Other Web Marketing Methods u Market 8 leaders can take their dominant positions and extend them to other products and services u Affiliate marketing Web site gives product reviews, description, or other information on a product for sale on another site l Affiliate site gets commission and has no risk l 31

Dell Home Page Figure 8 -11 8 32

Harry and David Home Page Figure 8 -12 8 33

Advertising-Supported Model u Used 8 by network television to provide free programming u Problems with this method on the Web: No consensus on how to measure audiences l Very few web sites have sufficient visitors to attract large advertisers l 34

Monster. com Mid-Career Page Figure 8 -13 8 35

Other Market Models on the Web u Advertising-subscription l 8 l l Revenue derived from fee and it also accepts some level of advertising Used by newspapers and magazines Successful web models include New York Times, the Wall Street Journal, ESPN, Reuters, and Northern Light u Fee l mixed model for transaction Model Online travel agents and car-buying services can remove an intermediary from a value chain u Called disintermediation 36

Northern Light Search Results Page Figure 8 -14 8 37