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Intro to WEB Marketing

Intro to WEB Marketing. CCE Short Course 14 Feb 2001 Instructor: Dr David Fortin. On the Menu. Morning: What is the Web? Key Issues about Web marketing Various Models of business Afternoon: Creating your own web page. About the Author.

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Intro to WEB Marketing

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  1. Intro to WEB Marketing CCE Short Course 14 Feb 2001 Instructor: Dr David Fortin

  2. On the Menu • Morning: • What is the Web? • Key Issues about Web marketing • Various Models of business • Afternoon: • Creating your own web page

  3. About the Author • David is Senior Lecturer at the University of Canterbury, New Zealand and director of the “Web-L@b” Consumer Research Project www.mang.canterbury.ac.nz/weblab

  4. What is the World Wide Web? The World Wide Web (WWW) is a global interactive, dynamic, cross platform, graphical hypertext information system that runs on the Internet.

  5. Historical Perspective • The Internet is the backbone • Originally linked universities worldwide after the second world war • Web is a protocol using HTML to “ride” the Internet • A “file” is sent over to a local computer for viewing

  6. Some Internet Statistics • Conservative estimate of over 500 million users worldwide • 5.2 million in Australia • 800,000 in NZ • 80,000 shop online every month • 1998: $19million in sales • 2002: $990million projected

  7. Online Users Expanding 46,000 8,000 436 1996

  8. Internet Statistics • Consult www.iconocast.com or • www.emarketer.com for resources

  9. The Demographics of Web Users Gender Education Key Demographic Variables of Web Users Income Computer Ownership Computer Experience Computer Expertise

  10. Where Are WWW Users Located? Oceania 4% Other 2% Asia 2% Canada & Mexico 8% Europe 11% United States 73%

  11. Electronic Marketplace • New medium - wave of the future • Expectations are different • Users have time to evaluate • Growing and evolving rapidly amidst emerging technologies Information Highway

  12. Establishing a Quality Internet Presencewith a Purpose Internet My Home Page Client Server

  13. World Wide Web Site • Your storefront (Web Site) • Doorway to a global marketplace • Success depends on its appearance, ease of navigation and message conveyed • Home Page is a key ingredient and should be designed with great care

  14. How is Interactive Marketing Different ? • Capability to access and control content of information by the user • Focus on Interactivity

  15. Mass-Media One-to-Many Passive No Feedback Low Selectivity Low Involvement Customized Media Many-to-Many Active Interactive High Selectivity High Involvement Comparing:TV and WEB

  16. Targeting your Market with a Product or Service

  17. The Search for Information • Search Intensity = Trade-off

  18. Types of Users • BROWSERS • random navigation • entertainment-based • SEEKERS • task-oriented • information-based

  19. Serendipitous navigation Process over content Hedonic component Information goal Minimize time Specific, a priori Browsers and Seekers

  20. Priorities For Establishing a Successful Internet Presence • Have a meaningful purpose for being on the Internet • Think of it as an outlet for further information in support of a campaign • Encourage Repeat Visits • Feedback Mechanism vital

  21. The 3D Stance

  22. Key Internet Tools for Business • World Wide Web • E-Mail • Search Engines • Listservs (Mailing Lists) • Newsgroups • FTP Internet Kit of Tools

  23. Communication via E-Mail • Know how to use it effectively - It can be your best friend or worst enemy • Proper “netiquette” • Establish Client Relationships • Client Feedback and Customer Satisfaction

  24. Publicize your Website at Every Opportunity • Search Engines - Profile Description, score • Internet Yellow Pages, Business Pages • Listservs • Internet Malls • Electronic Bulletin Boards • All Print and Broadcast Ads

  25. Quality Web Site includes: • User-friendly Homepage • Company profile/ Overview • Products and Services • Order Form • Client feedback form/ surveys • Press releases/ Announcements • Special Offers • Links to other pages or sites Door to the World

  26. Update Your Site Frequently ! Remember the Internet is dynamic, competition can be fierce and people get bored quickly and won’t stay long if something doesn’t catch their eye. If a website isn’t updated frequently you won’t get repeat customers ! New

  27. On the Internet, Nobody Knows You’re A Dog

  28. e-Commerce: revolution or evolution? • Early days of radio and television • Novelty vs content

  29. e-Commerce: revolution or evolution? • Is everything “Internetable”?? • Do we really need Italiancheese.com, Golfballs.com or newmousetrap.co.nz? • Filter: is this a business that could have existed before the Net? If so, “deep-six” it right now!

  30. Involve Customers in Design Process Market & Sell Products & Services Understand Markets & Customers Deliver Value Through Distribution Manage Customer Information Provide Customer Care Marketing ProcessesThat Can Be Digitized

  31. Business Models • Method of doing Business to generate revenue streams within the value-chain • Are there many models out there?, Yes • Is there a clear recipe for choosing one? No! • Are e-Business models all “new”? Of course not!

  32. Business Models • Many are traditional, inspired by the bazaar economy or the mass media model • Old world models are rejuvenated • Auctions (eBay.com), Reverse Auctions with name your price (priceline.com, ewanted.com)

  33. Business Models, Net History • Model 1: AOL’s content business based on connect-time revenue splits • Model 2: Advertiser-driven: build traffic, sell eyeballs. Good for portals, bad for all others. • Model 3: e-Commerce: sell real products for real money! Assumes cost economies based on disintermediation = let’s be careful here….

  34. Business Models, Net History • Model 4: e-Commerce: never making a profit out of selling real products for real money! Focus here is on establishing relationships and estimating the lifetime value of a customer. • Concept of “monetising” • Freeonline.com.au, free-PC.com

  35. Improvement-Based Biz Models Use the Net to Improve Products and/or Services Efficiency Enhancement • Reduce costs • Free trial • Build brand • Build category • Enhance quality Effectiveness • Support dealers • Support suppliers • Collect information

  36. Prospect Fees Click Through Banner Ads Impressions Sponsorship Fixed Payment Sales Commissions Purchase Revenue-Based Biz Models Which Company Bears the Risk? Risk Increases for the Web Site Being Paid • Sponsorship least risky: fixed payment • Banner Ads: payment depends on impressions • Prospect Fees & Sales Commissions: depend on success of site and advertiser

  37. Price Online buying is cheaper than traditional methods Assortment The range of products better matches buyer desires Convenience The timing, location and buying process are superior Entertainment Buying online is more fun than alternatives The Pace of E-Commerce For e-commerce to continue to grow as quickly as forecasters expect, online selling must excel on the fundamentals that drive buyers

  38. E-Commerce Activity Amount of Personalization E-Commerce Is Reinforced by Personalization E-Commerce Takes Off The Personalization/E-commerce Link • Concept of Mass-Customisation • Greater personalization leads to even more purchases and a higher customer lifetime value

  39. Do You Yahoo? • For 50% of US Web users: YES!!! • Yahoo! brand extensions provide value added for users • Yahoo! games • Yahoo! clubs • Yahoo! chat • Yahoo! auctions • Yahoo! Stores • Yahoo! leverages its brand and ability to draw traffic to generate multiple revenue streams = Portal strategy

  40. Successes • Worldwide: travel, banking, trading: the model of Buy/Sell Fulfillment • Books, CDs: volume but not profitable • Niche propositions: • www.sweet-seductions.co.uk • www.virtualvineyards.com • www.dailygrind.com

  41. Successes • In New Zealand: • www.pcdirect.co.nz • Woolworths online • BankDirect, ASB FAstNet • TAB, $20 Million/year • www.tuff-as-nuts.com

  42. Successes • Mass-customisation: addressing multiple segments of one • Dell Computers • www.smarterkids.com • travel.co.nz • Vitamins: www.acumins.com

  43. Successes • Click-and-Mortar • Combining existing strengths in physical distribution with virtual approach • Barnesandnoble.com • in Japan, a retailer is experimenting with product pick-up in 7/11 shops

  44. Fiascos • Www.Pets.com, www.mothernature.com (vitamins) • www.priceline.com • e-Shopping Mall concept (IBM) • In New Zealand: • Flyingpig.co.nz (now re-launched) • NBR, The Press

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