Marketing Strategies

1. HP iPAQ Pocket PC h6340 is the first and smallest handheld with integrated 3-way wireless capabilities (GSM/GPRS, WLAN and Bluetooth) for your data and voicecommunication. Software: Microsoft Windows Mobile 2003 for Pocket PC Phone EditionMicrosoft Pocket Excel, Microsoft Pocket Outlook, Microsoft Pocket Word, Microsoft Pocket Internet Explorer Marketing Strategies Jan Damsgaard Dept. of Informatics Copenhagen Business School http://www.cbs.dk/staff/damsgaard/

2. How to regain and use information to serve customers personally?

3. Marketing Strategies on the Web • Covering three main ideas: • Understanding why marketing on Internet is different • How a manager should develop his/her Web site: a) design b) functionality c) hosting • Attracting visitors to that site Jan Damsgaard, 2004

4. Marketing on the Internet is Different • Offers new possibilities and dangers! • Every customer now has potentially instantaneous, documented, direct contact with every member of the firm (and vice versa) • Potential customers are world-wide • a manager and his/her competitors are now transparent and on the record • Technologies change what content and service a manager can provide and how Jan Damsgaard, 2004

5. Developing a Web SiteDesign Issues • First issue: Content is more important than appearance—managers shouldn’t let anyone fight to find information they are seeking • Second issue: Traditional Graphical User Interface or GUI (a.k.a., gooey) rules apply to Web apps—we are merging two worlds; IS and Marketing Jan Damsgaard, 2004

6. Site Design—GUI Rules • The site shouldn’t drown people in eye candy in lieu of information—people won’t come back unless it is useful • But a picture is still worth a thousand words • Designers shouldn’t just take graphical material and brochure layouts from his/her traditional print media • Graphics aren’t readable by search engines and text readers (WAP and speech software) Jan Damsgaard, 2004

7. GUI Rulestransferring graphics • A designer should make sure that his/her application looks good to as many people as possible • Does it look good on a B&W printout? • On a TV screen (huge dot pitch) • On a palm pilot? • On a mobile phone? Jan Damsgaard, 2004

8. Developing a Web Site Functionality • Build system to be rapidly adaptable • Web technologies should be used to do 1-to-1 marketing (before competitors do) and small market segments Jan Damsgaard, 2004

9. Functionality—Rapidly Adaptable System • Changing prices & products • Competitive offerings and business intelligence— organizations should scan the competition…because they are being scanned! • The Web should be scanned to combat bad PR • New functionality • Scalability Jan Damsgaard, 2004

10. 1-2-1 Marketing Strategies • Identification • Identify your customers in order to understand the buying patterns of every single customers • Interaction • Offer your customers automated assistance by pre-selecting goods, information and services that may be valuable to a particular customer • Differentiation • Treat all customers on a personal basis. Address the values and needs of every single customer • Tracking • In order to understand your customers better it is necessary to track down every transaction for every individual customer • Customization • Build product module, information part and service components that can be adapted to the needs of a single customer Jan Damsgaard, 2004

11. 1-to-1 Marketing—Identification • Web technology allows a manager to identify each customer to track and understand using different measures • Login IDs and passwords • Cookies • IP addresses • Digital Certificates Jan Damsgaard, 2004

12. 1-to-1 MarketingInteraction • Web technology enables personal, fast, and useful interaction • FAQs (to avoid repetition and wasted €) • Communities (to let customers talk among themselves…corporate representative should take part) • E-mail (by topic; each answered quickly) • chat/video (used to meet traditional shopping needs, maintenance, after sales services) • Fast online surveys (with incentives) Jan Damsgaard, 2004

13. 1-to-1 MarketingTracking • With unique ID, can get and store data • Can track every purchase and page view • Demographic data • Number of page views • Sequence of views • What they bought, what combination, when, for whom • Combine with interactions for valuable info (i.e., interactions can be kept and mined) Jan Damsgaard, 2004

14. 1-to-1 MarketingCustomization • A service provider can take differentiation one step further and change what is sold…customization! • A company should look for what it sells and see if it can’t break it into components • Assemble as needed for each customer • Easiest for electronic offerings. Harder for physical goods (but being done with RFID) Jan Damsgaard, 2004

15. Personalization • Addresses the problem of finding good info • news personalization services enable users to decide what info they get and how they get it • Filtering tools reduce info overload • Gives greater control over our content flow • Can offer services that are most important to each individual, saving them time Jan Damsgaard, 2004

16. Developing a Web SiteHosting Decisions • Related to design issue: where does it all live? • Site can’t live without a host server • Should be based on four criteria: reliability, performance, tech support, and price… Jan Damsgaard, 2004

17. Hosting DecisionsFour Criteria • Reliability: Site needs to be running (and adaptable) 24/7/365 • Performance: speed—get 3rd party measures • Tech support: Quality? Availability? • Price: value in combination with above? Jan Damsgaard, 2004

18. Attracting Visitors to a Site • A site exists…”so what?” if nobody comes to see it or they never return • Ways to attract visitors or be “sticky”: • Promotion tricks to get people • Suggested offerings to keep them Jan Damsgaard, 2004

19. Attracting Visitors to a Site Promotional Tricks • There are some basic tricks to promote a site to be found • Affiliate Networks • Event Marketing • Choose a good domain name • Announce site • Banner ads • Direct marketing Jan Damsgaard, 2004

20. Affiliate Networks • Syndicate content/services on other sites • Pages can pay to get on portals and hooked in as back end to other resellers • Can offer channels to allow narrow placement on each • Can allow front-end customization by resellers Jan Damsgaard, 2004

21. Choosing a Domain Name • www.companyname.com if possible • Well known brand should be able to sue for brand name in URL • Not well known should choose something close or logical noun (www.ponies.com and www.chicken.com owned by ISPs—can be bought) • Should buy name rights (don’t have registered to ISP) • Should use other domains which have meaning (.dk gives expectation of Danish language) • Should have many names push to a centralized page Jan Damsgaard, 2004

22. Spamming DON’Ts... • Repeat keywords in META tags • Use keywords that are unrelated to your site • Use invisible text or tiny fonts to include many keywords • Submit the same page to the same search engine over & over • Redirects - automatically send to another page Jan Damsgaard, 2004

23. Tips, cont. • Some search engines can’t follow image map links • Put links at the bottom of your home page that link to all the important pages of the site • Some search engines can’t follow dynamically generated links • Use multi-word phrases in your external links Jan Damsgaard, 2004

24. A continuous process... • Check on your pages to make sure they get listed • each engine has its own way to do this • http://www.submitshop.com/ • Resubmit after any significant changes • Use other promotional opportunities like email and chat rooms. • Use software... Jan Damsgaard, 2004

25. Direct Marketing—E-mail • To spam or not to spam… • Shouldn’t be done • Causes bad PR • Gets more angry responses than sales • Hard to find good responses in the deluge • Unethical and possibly illegal • Alternatives: • Opt-in e-mails & tasteful signature files Jan Damsgaard, 2004

26. Direct MarketingMailing Lists/Newsletters • Companies should use 1-to-1 marketing to build opt-in mailing lists • Should create a newsletter and include reasons why people would want them (incentives; valuable info) • Should get employees involved in discussion groups and provide value to community (and have them sign with their URL there). Jan Damsgaard, 2004

27. Attracting Visitors Sticky Suggestions • There are some basic tricks to keep a customer coming back • Fresh content • Free content • Personal content • Online/offline content • Good cross-marketing/cross-selling • Good search capabilities • Being a community and interactive Jan Damsgaard, 2004

28. Fresh Content • Gives people a reason to come back • Fresh content of value • A date on the page convinces customers of freshness and accuracy • Indicates to employees to update content Jan Damsgaard, 2004

29. Free Content • Free information, products, services to all visitors • Currency rates, news briefs, stock portfolios • Lotteries, coupons • Calculators, games • $34 to get a new customer…it pays to keep them Jan Damsgaard, 2004

30. Online/Offline Content • Offline reading should be supported • Multiple formats should be offered including downloadable (pdfs) and printable versions (text only) • Push technologies offered to send customized, new content Jan Damsgaard, 2004

31. Good Cross-marketingCross-selling • Company should implement a system that effectively promotes related products • Should collect aggregate data on what else people bought when they bought a good • Should keep a good database of complementary products • Should remember what was bought before and lead with an appropriate offer Jan Damsgaard, 2004

32. Good Search Capabilities • Everything should be easy and pleasant to find • Index Vs. flat search • Navigation should be tested and streamlined • Walk through • Usability Lab Jan Damsgaard, 2004

33. Conclusion • Marketing on the Web provides a mechanism for doing business that is unique • Allows one-to-one marketing with advantages of automated processes and unprecedented information • The best page is worthless if it isn’t seen • Global availability of Web applications offers new opportunities and concerns Jan Damsgaard, 2004