Chapter 4 Marketing on the Web

1. Chapter 4 Marketing on the Web

2. Communication • Communicating with customers/ potential customers • Marketing communication mode • Mass media • Web • Personal • Web offers middle ground • Mass media (one to many) • Personal (one to one) • Unique (many to many) More messages More complex product More interactions More trusted More costly

3. Marketing Strategy • How companies use the Web in their marketing mix • Marketing mix • Various efforts (strategies) for selling their products • Product display – Web: How to design the Web (the way the information is presented, Web design features) • Advertising: Persuading potential customers to buy the product

4. Product display: Product-based • Marketing strategy that is based on product features • Using product categories to organize product information • Allowing customers to find a product easily • Problem: • Customers do not always look for a specific product

5. Product display: Customer-based • Marketing strategy that is based on customer features • Using customer categories to organize product information • Use market segmentation to identify customer categories • Market segmentation • Dividing the market into segments • Customers that belong to a segment have similar characteristics • Customizing Website features to match these characteristics

6. Behavioral Segmentation • Using behavioral segment to design the Website • Behavioral segmentation • One customer • Different occasion, different behavioral needs • Different behaviors of online customers: • Browsers • Shoppers • Buyers

7. Online Customer Behavior Browsers No particular product, browsing Goals: Functional: Seeking information about new products, products on sale, the store Recreational: Pleasure How to design the Website to satisfy these needs? New product information, product on sale information, best seller product information Rebate coupon, free gifts (turning browsing into impulsive shoppers)

8. Online Customer Behavior Shoppers Having particular product, seeking information Goals: Seeking information about a particular product How to design the Website to satisfy these needs? Price comparison, product review, feature list

9. Online Customer Behavior Buyers Having particular product, buying Goals: Buying a particular product How to design the Website to satisfy these needs? Search engine, shopping cart, quick ordering (e.g., auto complete order form)

10. Advertising on the Web Persuasive communication with former, current, potential customers to encourage them to buy the product Various advertising methods on the Web: Banner ads Text ads Inline text ads Pop up ads Pop behind ads Interstitial ads Rich media ads

11. Advertising on the Web Banner ads Commonly used ads on the Web Displaying stationary or moving graphics & a hyperlink Standardized size: Interactive Marketing Unit (IMU) by Interactive Advertising Bureau (IAB) Sizes fit most Web sites Leaderboard ad: Top or bottom Skyscraper ad: Side

12. Advertising on the Web Banner ads (continued) Placement: Buy slot from individual Websites Buy slot from advertising network (broker between advertisers and Websites Buy slot from banner exchange network Use banner exchange network Free Problems: How to avoid a network that already includes competitors? Little control over the banner ads displayed on your site

13. Advertising on the Web Banner ads (continued) Banner ads lost ability to attract attention New strategies for banner ads: Use animated, even video clips with audio Use mini video game

14. Advertising on the Web Text ads Google search result Inline text ads Links to the advertiser Websites are embedded in some of the words in a story/report Pop up ads When a user opens/closes a Web page, a new window showing the ads appears in front of the Web page windows

15. Advertising on the Web Pop behind ads When a user opens/closes a Web page, a new window showing the ads appears behind the Web page windows It will appear to the user only when he/she closes the main window Interstitial ads The ads is displayed before the expected content The ads is displayed on the same window as the expected content Rich media ads The ads floats over the Web page

16. Advertising on the Web Online advertising costs Cost per click (CPC) $ per click through One click through Each time the banner ads is clicked by a visitor Problem: Fake-click

17. Advertising on the Web Online advertising costs Cost per impression (CPI) $ per single appearance of an ad (when the Web page displaying the ad is opened)regardless of whether the ad is clicked on or not One impression Each time the banner ads loads (a visitor opens the Web pages displaying the banner ads)

18. Advertising on the Web Online advertising costs Cost per thousand (CPM) $ per 1000 impressions

19. Email marketing Permission marketing (opt-in email) Sending marketing information via email to people agreeing to receive the information Tips for email marketing Make the email message personal (“Hi Bob. We have a new ...”) Appropriate length, avoid large content (video, audio) – For a large content, use hyperlink instead (include “More information” and “Buy now” hyperlinks) Use picture (“A picture is worth a thousand words”) Appropriate frequency (not to often) Include interesting/useful news stories

20. Affiliate marketing A Website that provides descriptions, reviews, ratings, other information about a product linked to seller’s site Receives a commission for every visitor that follows a link from the affiliate’s site to the seller’s site (pay per click) or only when that visitor buys the product (pay per conversion)

21. Search engine positioning Ways that potential customers find Web sites Referred by friend Referred by media (e.g., news article) Referred by offline &online advertisement Referred by affiliate marketing Websites Referred by a search engine

22. Search engine positioning Search engine How does it acquire information? Web crawler: A program that automatically travels the Web to visit Web pages, collect the address of those pages, the keywords, and other information from those pages

23. Search engine positioning Search engine How does it acquire information? The Web crawler returns the information to the search engine The search engine will create an index for each site (i.e., information to retrieve the sites & to measure the relevance of the sites)

24. Search engine positioning Search engine How does it acquire information? When a user uses the search engine, the search engine will use the index to find relevant sites & to determine the relevance of those sites (the rankings of those sites)

25. Search engine positioning Search engine How to have your site near the top of list? Paid placement (search term sponsorship) Purchasing a top listing on results pages for a particular set of search terms Search engine position (optimization, placement) The art and science of positioning a Web site at the top of search engine results pages, through a set of practices (e.g., keyword management, content management)

26. Web Site Naming Issues A Webpage is opened by using its URL A URL contains a domain name (the address of the Web server hosting the Webpage) Maintained by ICANN & registrars URL should reflect company name or reputation URL should be short/easy to remember www.iflyswa.com changed to www.southwest.com www.delta-air.com changed to www.delta.com Buy more than one domain name In case user misspells, he/she can be redirected to intended site (e.g., Google owns google.com, gogle.com, google.co) 26