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

Objectives u Establishing 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

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

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 firms 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 companys desires l Reinforcing already held positive images regarding the company

Toyota (UK) Web Presence

Toyota (USA) Web Presence

Quaker Oats Web Presence

ACLU Web Presence

Liberty Web Presence (formerly Nat Council for Civil Liberties)

MoMA Web Presence

Tate Modern

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

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

Meeting the Needs of Web Site Visitors u Why visitors come to Web sites l To learn about or buy a companys 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 Testing u How 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

T Rowe Price

Kodaks Home Page (USA)

Kodaks Home Page (UK)

Kodaks Home Page (HK)

Usability Hints u Design the site around how visitors navigate, rather than around the companys 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 Firms 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 customers 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

Amazon Personalised Marketing

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

Elements of a Brand Figure 8-10

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

Other Web Marketing Methods u Market leaders can take their dominant positions and extend them to other products and services l Expedia, Amazon, Lufthansa, DBRail u Affiliate marketing l 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

Dell Home Page

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

Monster Careers Page (

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

Northern Light Search Results Page

Christmas is Coming!

Summary u Establishing 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