Marketing on Internet Types of Internet advertising banners

Marketing on Internet

Types of Internet advertising • • banners Email selling advertising to consumers web storefronts

Economic role of advertising • • to inform comsumers to increase demand to encrease or lower demand elasticity to discourage entry by potential competitors • to differentiate the firm from existing competitors

marketing channel • • • information promotion negotiation ordering delivery payment trust information brokerage virtual community participation

E-Marketing mix Product Price Distribution Communication mix Customer e. CRM E-Commerce M-Commerce Internet adverising Selling Public relation Vira marketing E-mail marketing Affiliate marketing

internet charactertistic for marketing communication • • 24 hours online multimedia ubiquity global avaibility interactive one to one marketing intergration

differences between stages Unique Visitor Visits Page Views Hits

visiting of WWW server

Search Engine Optimization Search Engines follow the network of links and index, or re-index, website pages within their databases as they find them. Links to your website are how your company website will continue to be found and indexed, and plays an important role in how your company site is ranked within the search Engine

Search Engine Marketing • Pay Per Click Marketing • Email Marketing • Affiliate Marketing

Web Analytics • Cost per visitor by search engine and by keyword • Cost per conversion by search engine and by keyword • ROI on pay-per-click buys by search engine and by keyword • ROI on natural search results by search engine and by keyword

Online Marketers and Consumers are in Conflict • Online marketers want detailed information about consumers in order to segment them into groups for purposes of targeted marketing efforts and personalized offerings. • Consumers appear to appreciate personalization when it suits their needs. • At the same time, consumers are wary about just what is being collected, and how and for what purposes it will be used, largely because of bad behavior on the part of marketers. – Spam is contributing enormously to the problem.

Online Marketers and Consumers are in Conflict • Consumers want personalization and use those services: – Most appreciate the fact that sites remember their basic info and are willing to give out personal info in order to gain this experience. • But, consumers are very concerned about their privacy and want control over how their personal info is used: – Most want a “guarantee” that their data will not be misused.

Most sites collect personally identifiable info about their visitors Data Collection Tools Consumer Consent? – Cookies/Clickstream data • Typically no. – Web bugs • Typically no. – Offline/Online data aggregation and cross-site data sharing • May consent, but don’t expect data will be sold; often unaware of sharing. Sometimes no consent (email addresses from screen-scrapers) – Explicit and implicit data collection via personalization efforts, digital downloads • Consent, but wary, due to lack of full disclosure (how used? Shared? )

Control is the Key Issue • Key Privacy Concerns – Share or sell data to third parties without permission. – Who has access? – What is being collected? – How is data being used/shared? – Data not secure – Hackers could steal the data/identity theft

A Privacy Paradox? – Consumers own attitudes and behaviors are in conflict: • Surveys consistently show that consumers are very concerned about information privacy on the Internet, yet they continue to provide personal information online. – How to reconcile?

Attitudes and Behaviors Not Really in Conflict – Attitudinal studies show diffuse and aggregate consumer concerns – not site specific! – Consumers make decisions in real time about the privacy and security of a particular site. – Concerns handled case by case if consumer can’t figure out how personal information will be used: • Don’t give information. • Lie. • Leave the site. • Not really a paradox, but clearly much more research is needed to probe this more carefully.

How Do Consumers Evaluate Web Site Credibility? • Recent studies show consumers have strong expectations and perceptions about what makes for a credible Web site. • Key Findings (Consumer Web Watch Survey 2002): – Consumers say that a Web site’s credibility is one of the most important drivers of Web site use. – Online shopping sites and online recommendation sites are least credible; news sites and Federal government sites are most credible. – Consumers say they want Web sites to provide clear, specific and accurate information to help them gauge credibility (e. g. privacy policies, contact info, distinguish ad from editorial, etc). – Consumers also want search engines to reveal paid listings practices (though most aren’t aware of the practice).

How Do Consumers Evaluate Web Site Credibility? • Yet, consumers appear not to use rigorous criteria to evaluate Web site credibility (Stanford Web Credibility Project 2002): • Instead, design, usability and content scope overwhelmingly dominate what consumers notice: – Overall visual design (layout, typography, font size, color schemes, white space, images, etc. ) • Finance, search engines, travel – Information structure (ease of navigation and information organization): • Search engines, finance, travel – Information focus (breadth versus depth): • Health, news, sports • Looking good appears to signal being good, and therefore, credible.

How Do Consumers Evaluate Web Site Credibility? • Perhaps most disconcerting, very few consumers appear to notice objective factors believed to be important for improving online credibility: – identity (8. 8%) – customer service policies (6. 4%) – sponsorships (2. 3%) – and privacy polices (<1%) – corrections (0%).

What Elements Build Online Trust? • Web characteristics other than privacy and security are the primary drivers of trust (Sultan, Urban, Shankar and Bart 2002): – – – Navigation (27%) Brand name (17%) Recommendations (14%) No errors (11%) Privacy and security (11%) • Trust also seems to depend on industry categories (e. g. financial services sites are intrinsically more trustworthy, sports sites less so). • Surprisingly, consumer characteristics (e. g. past experience, ability to assess site quality, education) play only a small role.