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

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

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

Achieving Web Presence Goals u Goals associated with effective web sites include: l 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

Meeting the Needs of Web Site Visitors u Why visitors come to Web sites l 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

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

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

Usability Hints u Build 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

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

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

Measuring Web Site Effectiveness u Different from measuring mass media l 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

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

Information Acquisition Approaches: Levels of Trust Figure 8-7

New Marketing Approaches for the Web u Traditional mass-market advertising has decreased in effectiveness 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

Technology-Enabled Relationship Management u Occurs when a firm obtains detailed information about a customer’s behaviour, 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

Customer Relationship Management Figure 8-8

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