Internet Marketing

Outline4.1 Introduction4.2 Choosing a Domain Name4.3 Internet Marketing Research4.4 Web Design4.5 E-mail Marketing4.6 Promotions4.7 E-business Advertising 4.7.1 Banner Advertising 4.7.2 Buying and Selling Advertising on the Web4.8 Webcasting and Interactive Advertising4.9 E-business Public Relations4.10 Customer Relationship Management (CRM) 4.10.1 Keeping Track of Your Visitors 4.10.2 Customer Registration 4.10.3 Personalization4.11 Business-to-Business Marketing on the Web4.12 Search Engines

Internet Marketing Risanuri Hidayat, Ir.,M.Sc.

4.12.1 META Tags 4.12.2 Search Engine Registration4.13 Partnerships 4.13.1 Affiliate Programs 4.13.2 Creating an Affiliate Program4.14 Marketing to the World

4.1 Introduction • Internetmarketing campaigns • Advertising, promotions, public relations, partnering, Customer Relationship Management (CRM) systems, affiliate programs and search engine registration • Target market • The group of people toward whom it is most profitable to aim your marketing campaign • Use Internet marketing with traditional marketing to enhance overall corporate marketing strategies

4.2 Choosing a Domain Name • Domain name • The name used in the URL for a Web site • Recognizable, easily typed, worldwide interpretations • Dot-com (.com) Dot-net (.net) and Dot-org (.org) • Available domain names decreasing • ICANN (Internet Corporation for Assigned Names and Numbers) considering new suffixes • Registration • Domain-it.com, register.com and Network Solutions

4.3 Internet Marketing Research • Traditional: focus groups, interviews, paper and telephone surveys, questionnaires and secondary research • Findings based on previously conducted investigations • Internet: faster option for finding and analyzing industry, customer and competitor information • Relaxed, anonymous setting for focus group discussions and questionnaire distribution

4.3 Internet Marketing Research • Research current industry trends for e-commerce • Forrester Research , Adknowledge, Jupiter Communications, Media Metrix • Data collected from Web site provides valuable research • Technologies exist that can reveal consumer preferences

4.4 Web Design • Low switching costs • The ability to select one product over another • Appealing, user friendly, simple to navigate • Privacy policy • Details intended uses of consumers’ private information • Frequently asked questions (FAQs) link • Links to answers of common questions • Provide consumers with less complex technology with simpler but equally effective Web pages • Understanding customer preferences enables the creation of more effective Web sites

4.5 E-mail Marketing • Fast, cheap, far-reaching • Can arrive if recipients are busy or away • Receivers can read e-mails at their convenience • Telemarketing • Can be more expensive than e-mailing • Offers benefit of being interactive • People likely to answer phone whereas can ignore e-mail • Global businesses send translated e-mails • Demonstrates they value international consumers • Logos and AltaVista

4.5 E-mail Marketing • Define the reach • The span of people you would like to target, including geographic locations and demographic profiles • Determine the level of personalization • Personalized direct e-mail targets consumers with specific information and offers by using customer names, offering the right products at the right time and sending promotions • Response rate • Shows campaign success or failure by measuring the percentage of responses generated from the target market

4.5 E-mail Marketing • Traditional direct marketing includes sending information by mail and using telemarketers to contact prospective customers • Used in conjunction with e-mailing to reach largest number of possible customers • Direct mailing • often more expensive, more difficult to analyze and has lower response rate than direct e-mailing • Direct mail specialists: Eletter and MBS/Multimode

4.5 E-mail Marketing • Outsourcing • Parts of a company’s operations are performed by other companies • Used when direct e-mailing is too difficult to manage due to e-mail volume and inadequate staff or technical support • Messagemedia, Digital Impact, iLux, 24/7 Media and e-Contacts • Internet mailing lists • Include contact information for people who have expressed interest in receiving information on certain topics.

4.5 E-mail Marketing • Opt-in e-mails are sent to people who "opt-in" to receive offers, information and promotions by e-mail • PostMasterDirect.com will send your e-mail campaign to those on a list who have expressed interest in your business category • Yesmail.com and Xactmail.com create lists of people who have opted-in to receive information about a certain subject • Spamming • Mass e-mailing to customers who have not expressed interest • Can give your company a poor reputation

4.6 Promotions • Online and offline e-business promotions • Attract visitors to sites and may influence purchasing • Frequent-flyer miles • Offered to consumers for making online purchases • Increase brand loyalty, offers a reason return visits • ClickRewards allows customers to accumulate ClickMiles • Points-based promotion • Customer performs a prespecified action and receives points to be redeemed for products, services, rebates, discounts, etc. • Increase brand exposure by giving away items that display company logo, Branders.com

4.6 Promotions • Offer discounts when purchases are made online • Offer free trials • Online coupons for online shopping • Place coupons on sites to bring them to your site • Sites that advertise coupons include DirectCoupons, Coolsavings.comandvalupage.com • Offer free promotional items: free.com, free2try.com andfreeshop.com. • Online promotional tutorial containing information on ways to promote your site found at Promotion World

4.7 E-business Advertising • Traditional: television, movies, newspapers and magazines • Prime-time television slots most expensive times to air commercials • (monster.com advertisement) • Establish and continually strengthen branding • Brand is a symbol or name that distinguishes a company and its products or services from its competitors and should be unique, recognizable and easy to remember • Publicize URL on direct mailings and business cards • Online advertising: place links on other Web sites, register with search engines and directories

4.7.1 Banner Advertising • Banner ads • Located on Web pages, act like small billboards, usually contain graphics and an advertising message • Benefits include: • Increased brand recognition, exposure and possible revenue • Created in different sizes and placed in various positions on a Web site • Banner advertisements are losing their effectiveness • Strong branding • Placing logo on banners, enhancing brand recognition

4.7.1 Banner Advertising • Inventive color schemes and movement • Flashing, scrolling text, pop-up boxes and color changes • Pop-up box is a square screen containing an advertisement that appears separate from the screen the user is viewing, pops up randomly or as a result of user actions • Determine the best position on sites for a banner • Web sites cluttered with ads annoy visitors • Space can be more expensive during high traffic • Exchanging banners with another site • Adbility and BannerTips

4.7.2 Buying and Selling Advertising on the Web • Buy advertising space on sites that receive a large number of hits and target a similar market • Selling ad space on a site provides additional income • Monthly charges for online advertising rarely used today • CPM (cost per thousand) • A designated fee for every one thousand people who view the site on which your advertisement is located

4.7.2 Buying and Selling Advertising on the Web • Unique visitors versus total number of hits • Visiting any site registers one unique visit • Hits are recorded for each object that is downloaded • To determine the value of a Web site for advertising purposes, use the number of unique visitors, not total hits • Advertising payment options • Pay-per-click: you pay the host according to the number of click-throughs to your site • Pay-per-lead: you pay the host for every lead generated from the advertisement • Pay-per-sale: you pay the host for every sale resulting from a click-through

4.7.2 Buying and Selling Advertising on the Web • Selling advertising space • Provide appropriate contact information on your Web site • Register with organizations that will sell your space for you • These companies typically charge a percentage of the revenue you receive from the advertisements placed on your site: ValueClick, DoubleClick, AdSmart and LinkExchange

4.7.2 ValueClick Feature • ValueClick acts as a broker for people who want to buy and sell advertising space • Gives you the option of targeting specific markets • To buy advertising through ValueClick: • Design a banner • Contact a representative of ValueClick to determine what program best fits your advertising needs • Pre-pay for the service based on the number of click-throughs you want to receive, a minimum fee is required

4.7.2 ValueClick Feature • Offers many segmented markets for advertising • Segmented markets are people or companies that are grouped together based on similar characteristics • Earnings depend on number of click-throughs resulting from the advertisements • Pays host monthly if revenues are greater than certain amount • Offers four options for hosting advertisements on your site • ValueClick Affiliate, Premium, AdVantage and AdVantage Plus programs

4.8 Webcasting and Interactive Advertising • Webcasting • Involves using streaming media to broadcast an event over the Web • Streaming video simulates television, streaming delivers a flow of data in real time. • Resource Marketing, Clear Digital, Navisite, Cyber-Logics, www.streamingmedia.com and Macromedia • Many people have relatively slow Internet access • The slower the connection, the more disconnected the video appears • Victoria’s Secret Webcast most popular ever held on Web

4.8 Webcasting and Interactive Advertising • Bursting • There is a substantial build up of content at the receiving end, causing a video to appear smoother • Burst.com • Interactive advertising • Involves using a combination of rich media (such as audio, video, images and animations) and traditional advertising forms (such as print, television and radio advertisements) to execute an advertising campaign • Involve consumers in the advertising process • Nike • WebRIOT, a game show on MTV • H2O Design and Lot21

4.9 E-business Public Relations • Public relations(PR) • Keeps customers and company current on latest information about products, services and internal and external issues such as company promotions and consumer reactions • Methods • Chat sessions • Bulletin board • Special events or functions on Web site • Trade shows and exhibitions • Press releases (can be delivered over Web, PR Web) • Printing and distribution, MediaMap • Add link that connects to all press releases • Video clips • PR Newswire and Business Wire

4.9 E-business Public Relations • Crisis management • Another responsibility of PR, is conducted in response to problems the company is having

4.10 Customer Relationship Management • Customer Relationship Management (CRM) system • The aggregate of a company’s customer service solutions • Can include • Call handling (the maintenance of out-bound and in-bound calls from customers and service representatives) • Sales tracking (the tracing and recording of all sales made) • Transaction support (the technology and personnel used for conducting transactions) as well as other functions • Tools used to improve solutions include log-file analysis, cookies and the use of infomediaries • Companies that collect profiles on customers in exchange for the promise of more personalized Web experiences

4.10 Customer Relationship Management • Customers should be able to conduct transactions and get answers to their questions through a call center • House customer service representatives who can be reached by 800 numbers, e-mail, text chatting or realtime voice communications • Data mining • Uses algorithms and other statistical tools to find patterns in data gathered from customer visits • Data Distilleries, Applied Metrix and Data Instincts • CRM Solution Providers • Egain, E.piphany, Kana Communications, Oracle Systems and Siebel Systems

4.10.1 Keeping Track of Your Visitors • Log file analysis • Log files consist of data generated by site visits, including each visitor’s location, IP address, time of visit, frequency of visits and many other indicators • Cookie • Technology that keeps a profile on each visitor • Data gathered used to personalize each visitor’s experience, find trends in customer use and demonstrate Web site effectiveness

4.10.1 Feature: WebTrends • WebTrends provides solutions for tracking visitors • Offers products allowing you to profile site visitors and measure the effectiveness of each of your Web pages • After downloading a WebTrends product, the user must specify the source of the log files, types of reports and location where data is stored • The analysis is conducted automatically • The program can be scheduled to analyze data during non-business hours in order to maximize its efficiency • Collected information can be used to evaluate e-commerce methods, customer service and Web-site design

4.10.1 Feature: WebTrends • Offers free-trial versions of many of its products • View reports in one of many applications including Microsoft Word, Excel, HTML and text format • Will report its progress as it analyzes the data • View demographic and geographic data, technical analysis of the Web site’s effectiveness and top-referring sites • Sites that most frequently refer visitors to your site

4.10.2 Customer Registration • Customer registration • Requiring visitors to fill out a form with personal information that is then used to create a profile • Recommended when it will provide a benefit to the consumer • Require only minimum information • Give customers an incentive to register • Free-trial run or a free demonstration to familiarize the user • After customer registration, send an e-mail including customer usernames

4.10.3 Personalization • Personalization • The customization of a person’s interactions with a company’s products, services, Web site and employees • Involving customers in personalization process will make them feel more comfortable and more in control of site visits • Allaire, Blaze Software, NetGenesis and Personify • Human-to-human contact • E-mails that confirm purchases and offer new products • Calling customers personally • A link on your site to a live customer service representative, Adeptra , ClickiCall and LivePerson

4.10.3 Personalization • Personalization versus privacy • Ethical implication of personalization technology • Some customers are not aware that cookies are stored on their computers • Marketers must be careful how they use the personal information gained from data research • Filtering • Combing through content to determine what the consumer would like to access versus what the consumer does not want to receive • N2H2

4.11 Business-to-Business Marketing on the Web • Emerging key to business-to-business (B2B) e-commerce is effective Customer Relationship Management (CRM) • In the context of B2B e-commerce, CRM includes integrating systems to combine selling, buying, marketing and front-end and back-end operations performed within a company and between companies • B2B marketing versus B2C marketing • When you sell your product to another business, you may be selling to someone who is not the direct user of your product • Industry marketplaces • Construction.com, Worldwideretailexchange.com • Connect Inc, Concur Technologies and Ariba

4.12 Search Engines • Search-engine ranking important to bring consumers to a site • Method used by search engines to rank your Web site will determine how "high" your site appears in search results • Make sure all Web pages have been published on the Web and linked correctly • By registering with search engines a company will increase traffic to its site

4.12.1 META Tags • META tag • An HTML tag that contains information about a Web page • Does not change how Web page is displayed • Can contain description of page, keywords and title of page • Most search engines rank your site by sending out a spider to inspect the site • The spider reads the META tags, determines the relevance of the Web page’s information and keywords and ranks the site according to that visit’s findings • Examine competitors’ sites to see what META tags they are using • Top ten results

4.12.2 Search Engine Registration • Submit keywords and a description of business • Search engine will add information to its database • Registering will increase the possibility that a site will make an appearance in search-engine results • Many search engines do not charge a fee for registering • AltaVista, Yahoo!, Lycos, Excite, Google and Ask Jeeves • Ask Jeeves uses natural-language technology that allows people to enter their search subjects in the form of questions

4.13 Partnerships • Partnering • Forming a strategic union with another company • legal contracts written to define the relationship precisely and to protect the interests of each company • E-business partnerships typically require some level of technical conformity • Provides consumers with complementary services and products • Exchange technical research or customer information • Outsourcing part of a company’s operations to partners can help increase operation efficiency

4.13.1 Affiliate Programs • Affiliate program • An agreement between two parties that one will pay the other a commission based on a designated consumer action • Establishes new income streams for affiliates • When a person clicks through the merchant’s site via the link on the affiliate’s site and makes a purchase, a commission on the sale is typically awarded to the affiliate • Creates a "win-win" situation • Some programs pay commissions to affiliates for recruiting new affiliates

4.13.2 Creating an Affiliate Program • Decide on a reward structure • Pay-per-click model rewards an affiliate for each click-through that is generated by a banner hosted by the affiliate • click-throughs can be generated falsely. • Pay-per-leadmodel rewards affiliates based on the number of qualified leads generated • Pay-per-sale model compensates affiliates for each sale resulting from affiliate-hosted advertisements • the reward to the affiliate is usually larger than other model rewards • Track the effectiveness of each affiliate • Payment systems • LinkShare, QuickClick, Commission Junction and Be Free

4.13.2 Be Free, Inc. Feature • Offers BFAST • BFAST product is an affiliate-program enabler • Allows its merchant customers to retain the look and feel of their brand on the interface that affiliates use to manage their programs • Rewards determined by merchant • Acts as intermediary, tracking impressions, click-throughs and sales for merchant and its affiliates • Merchants place promotions on affiliated Web sites that are relevant to their industry. • Payment is collected when a lead is generated or a sale is completed

4.14 Marketing to the World • Sensitivity to linguistic, legal and cultural differences • International interaction with Web sites • Content in various languages • Currency differences (exchange rate information) • Distribution methods • Costs of shipping to various countries • Translation services and software • Translations will not be perfect • Transparent Language and Alis • Test your site and marketing campaign on a smaller scale with focus groups and trials

4.14 Logos Group, Italy Feature • Logos, an Italian translation company, provides translation assistance and an online language translation dictionary • Its “Multi-lingual e-translation portal" will instantly translate any typed word or phrase into many different languages • You can click on a button to hear how the word is pronounced • If you are not sure how one of the translated words is used, Logos’ Wordtheque demonstrates the use of the word in context • You can click on the Word Exchange Forum, where professionals around the world are willing to help you with a words or phrases

Internet Marketing