e-commerce chapter 04

E-Commerce: The Second WaveFifth Annual EditionChapter 4:Marketing on the Web

ObjectivesIn this chapter, you will learn about:When to use product-based and customer-based marketing strategiesCommunicating with different market segmentsCustomer relationship intensity and the customer relationship life cycleUsing advertising on the Web

E-Commerce: The Second Wave, Fifth Annual Edition

ObjectivesE-mail marketingTechnology-enabled customer relationship managementCreating and maintaining brands on the WebSearch engine positioning and domain name selection


Web Marketing StrategiesFour Ps of marketingProductPhysical item or service that company is sellingPriceAmount customer pays for productPromotionAny means of spreading the word about productPlaceNeed to have products or services available in different locations


Product-Based Marketing StrategiesWhen creating a marketing strategyManagers must consider both the nature of their products and the nature of their potential customersMost office supply stores on the WebBelieve customers organize their needs into product categories


Customer-Based Marketing StrategiesGood first step in building a customer-based marketing strategyIdentify groups of customers who share common characteristicsCustomer-based marketing approachesMore common on B2B sites than on B2C sitesB2B sellersMore aware of the need to customize product and service offerings to match their customers needs


Communicating with Different Market SegmentsIdentifying groups of potential customers The first step in selling to those customersMedia selectionCan be critical for an online firmChallenge for online businessesConvince customers to trust them


Trust and Media ChoiceThe WebAn intermediate step between mass media and personal contactCost of mass media advertisingCan be spread over its audienceCompanies can use the Web To capture some of the benefits of personal contact, yet avoid some of the costs inherent in that approach


Trust in Three Information Dissemination Models


Market SegmentationTargeting specific portions of the market with advertising messagesSegments Usually defined in terms of demographic characteristicsMicromarketingTargeting very small market segments


Market Segmentation (Continued)Geographic segmentationCreating different combinations of marketing efforts for each geographical group of customersDemographic segmentationUses age, gender, family size, income, education, religion, or ethnicity to group customers


Market Segmentation (Continued)Psychographic segmentationGroups customers by variables such as social class, personality, or their approach to life


Television Advertising Messages Tailored to Program Audience


Beyond Market Segmentation: Customer Behavior and Relationship IntensityBehavioral segmentationCreation of separate experiences for customers based on their behaviorOccasion segmentationWhen behavioral segmentation is based on things that happen at a specific timeUsage-based market segmentationCustomizing visitor experiences to match the site usage behavior patterns of each visitor


Behavior-Based CategoriesSimplifiers Users who like convenience Surfers Use the Web to find info and explore new ideasBargainersIn search of a good dealConnectors Use the Web to stay in touch with other peopleRoutiners Return to the same sites over and over again


Customer Relationship Intensity and Life-Cycle SegmentationOne goal of marketingTo create strong relationships between a company and its customersGood customer experiencesCan help create intense feeling of loyaltyTouchpointsOnline and offline customer contact pointsTouchpoint consistencyGoal of providing similar levels and quality of service at all touchpoints


Five Stages of Customer Loyalty


Acquisition, Conversion, and Retention of CustomersAcquisition costMoney a site spends to draw one visitor to site ConversionConverting first-time visitor into a customerConversion costCost of inducing one visitor to make a purchase, sign up for a subscription, or registerRetained customersCustomers who return to the site one or more times after making their first purchases


Customer Acquisition, Conversion, and Retention: The Funnel ModelMarketing managers Need to have a good sense of how their companies acquire and retain customersFunnel modelUsed as a conceptual tool to understand the overall nature of a marketing strategyVery similar to the customer life-cycle model


Funnel Model of Customer Acquisition, Conversion, and Retention


Advertising on the WebBanner adSmall rectangular object on a Web page Interactive marketing unit (IMU) ad formatsStandard banner sizes that most Web sites have voluntarily agreed to useBanner exchange networkCoordinates ad sharing Banner advertising network Acts as a broker between advertisers and Web sites that carry ads


IAB Universal Ad Package Guidelines


Advertising on the Web (Continued)Cost per thousand (CPM)Pricing metric used when a company purchases mass media advertisingTrial visitFirst time a visitor loads a Web site pagePage viewEach page loaded by a visitor countsImpression Each time the banner ad loads


Disguised Banner Ads


Other Web Ad FormatsPop-up ad Appears in its own window when the user opens or closes a Web pageAd-blocking softwarePrevents banner ads and pop-up ads from loadingInterstitial adWhen a user clicks a link to load a page, the interstitial ad opens in its own browser window


Site SponsorshipsGive advertisers a chance to promote products, services, or brands in a more subtle wayHelps build brand images and develop reputation rather than generate immediate sales


E-Mail MarketingSending one e-mail message to a customer Can cost less than one cent if the company already has the customers e-mail addressConversion rateThe percentage of recipients who respond to an ad or promotionOpt-in e-mailPractice of sending e-mail messages to people who request information on a particular topic


Technology-Enabled Customer Relationship ManagementClickstreamInformation that a Web site can gather about its visitorsTechnology-enabled relationship managementFirm obtains detailed information about a customers behavior, buying patterns, etc. and uses it to set prices and negotiate terms


Technology-Enabled Relationship Management and Traditional Customer Relationships


Creating and Maintaining Brands on the WebKey elements of a brandDifferentiationCompany must clearly distinguish its product from all others RelevanceDegree to which product offers utility to a potential customerPerceived valueKey element in creating a brand that has value


Emotional Branding vs. Rational BrandingBrands Can lose value if environment in which they have become successful changesEmotional appealsDifficult to convey on the WebRational branding Relies on the cognitive appeal of the specific help offered, not on a broad emotional appeal


Elements of a Brand


Affiliate Marketing StrategiesAffiliate marketingOne firms Web site includes descriptions, reviews, ratings, or other information about a product that is linked to another firms site Affiliate siteObtains the benefit of the selling sites brand in exchange for the referralCause marketingAffiliate marketing program that benefits a charitable organization


Viral Marketing StrategiesRelies on existing customersTo tell other people about products or services they have enjoyed usingExampleBlue Mountain ArtsElectronic greeting card companyPurchases very little advertising, but is one of the most-visited sites on the Web


Search Engine Positioning and Domain NamesSearch engineWeb site that helps people find things on the WebSpider, crawler, or robotProgram that automatically searches the WebIndex or databaseStorage element of a search engineSearch utilityUses terms provided to find Web pages that match


Search Engine Positioning and Domain Names (Continued)Nielsen//NetRatingsFrequently issues press releases that list most frequently visited Web sitesSearch engine rankingWeighting factors used by search engines to decide which URLs appear first on searches


Search Engine Positioning and Domain Names (Continued)Search engine positioning or search engine optimizationCombined art and science of having a particular URL listed near the top of search engine results


Paid Search Engine Inclusion and PlacementPaid placementOption of purchasing a top listing on results pages for a particular set of search termsRates varySearch engine placement brokersCompanies that aggregate inclusion and placement rights on multiple search engines


Web Site Naming IssuesDomain namesCompanies often buy more than oneReason for additional domain namesTo ensure that potential site visitors who misspell the URL will still be redirected to intended siteExample: Yahoo! owns the name Yahow.com


Domain Names that Sold for more than $1 million


URL Brokers and RegistrarsURL brokersSell, lease, or auction domain names ICANNMaintains a list of accredited registrarsDomain name parkingPermits purchaser of a domain name to maintain a simple Web site so that domain name remains in use


SummaryFour Ps of marketing Product, price, promotion, and placeMarket segmentation Using geographic, demographic, and psychographic information can work well on the WebTypes of online adsPop-ups, pop-behinds, and interstitials


SummaryTechnology-enabled customer relationship managementCan provide better returns for businesses on the Web Firms on the Web Can use rational branding instead of emotional branding techniques Critical for many businessesSuccessful search engine positioning and domain name selection


e-commerce chapter 04

Documents

annual editiontrust

annual editioncommunicating

annual editionbe

customers needsecommerce

different locationsecommerce

product categoriesecommerce

marketing strategymanagers

group customersecommerce