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* Dataquest, 2000 Effective Online Business:

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  • 1. Effective Online Business: Hosting, Marketing, and Management Strategies Workshop #I - Introduction Presenters: Kelly Burke – University of Hawaii at Hilo Steven Parente – Aina Hawaiian Tropical Products Supported by a USDA Cooperative State Research, Education and Extension Service Grant through the University of Hawaii at Hilo and College of Business and Economics Dean Dr. Marcia Sakai
  • 2. Ecommerce and the Internet: Introduction to Online Retail Overview
    • The business case for e-commerce
      • What is e-commerce?
      • Benefits
      • Some issues and options
    • The Internet – how it works
    • Website hosting basics
      • Alternatives, costs, services provided
    • Website development and design basics
      • Using a web host’s tools and resources
    • Website management basics
      • Assessing site performance
      • Payment processing
      • Order processing and fulfillment
  • 3. THE BUSINESS CASE FOR HAVING A WEB SITE
  • 4. E-Commerce Defined
    • E-Commerce
      • “ Buying, selling, or exchanging products, services, and information via computer networks.” (Turban, King, Lee and Viehland – 2004)
    • But that’s ‘narrow’
    • Internet offers more – E-Business includes
      • Servicing customers
      • Collaborating with business partners
      • Supporting electronic transactions within the firm
    • We mean the ‘broader’ definition here
  • 5. E-Commerce Business Models
    • There are 2 that are most prominent
    • Business to Business (B2B)
      • Selling products and services to customers who are primarily other businesses
    • Business to Consumer (B2C)
      • Sells products and services to individuals
    • B2B is where most of the money is
      • About 97%
    • B2C is the most well-known
      • Amazon, eBay, etc.
  • 6. Forces Driving Online B2C Shopping
    • Convenience – 75%
    • Cost – 38%
    • Context
      • Opportunity to buy at right time and right place
      • For example: from my desk when I am thinking about – or reminded about – that book.
  • 7. The Typical Online Customer
    • Activity conducted online by % of Internet users
      • Research a product before buying – 78%
      • Buy a product – 67%
      • Use a search engine – 84%
    Source: Pew/Internet.org - 2005
  • 8. The Typical Online Customer
    • Percent of each group that browse online
    • Age:
      • 18-29 – 64%
      • 30-49 – 56%
      • 50-64 – 36%
      • 65+ – 12%
    • Gender:
      • Male – 69%
      • Female – 67%
    • Income
      • Less than $30,000/yr – 49%
      • $30,000-$50,000 – 73%
      • $50,000-$75,000 – 87%
      • More than $75,000 – 93%
    Source: Pew/Internet.org - 2005
  • 9. The Typical Online Customer
    • Completed online transactions: 10
    • Online sessions per week: 6
    • Unique sites visited per week: 6
    • Average surfing session: 31 minutes
    • Time per site per week: 32 minutes
    • Time online per week: 3 hours, 8 minutes
    Source: Harris Interactive, Nielson Netratings
  • 10. Why Have a Web Site: Benefits of E-Commerce
    • Increase sales
      • Distributed market exposure
      • Target narrow segments
      • Create virtual communities which become targets
    • Reduce costs
      • Sales inquiries
      • Price quotes
      • Product availability
    • Enhance product value
    • Benefits work both ways – selling or buying
    • But are these reason enough for YOU to own a web site?
  • 11. Why Have a Web Site: Benefits of E-Commerce
    • Well – of course – a not insignificant reason to own a web site may be that:
    • Your competitors are doing it
    • In our survey of Big Island Flower Growers (mostly small mom-and-pop businesses), 40% of those responding (29 out of 74) say they already have a web site
    • Also – it’s just not that hard or costly to do
  • 12. HOW THE INTERNET WORKS
  • 13. How the Web Works: Uniform Resource Locators
    • Browsers differ in the way they are programmed
    • So if WWW is to be useful to many – we need standard way to identify a resource
    • Example:
      • http://www.hawaii.edu:2074/~kburke/course_info.html
    • URLs specify:
      • communication method (protocol) – ex: http
      • host name – ex: www.hawaii.edu
      • connection ‘port’ on host – ex: 2074
      • path on web server to resource / page – ex: course_info.html
  • 14. How the Web Works: The Internet Protocol (IP)
    • TCP / IP protocol for communicating
    • IP addressing – every device on the Internet has a different IP address
    • Network Information Center allocates address blocks
      • Class Address Network part Host part
      • A 18.155.32.5 18 155.32.5
      • B 128.171.12.237 128.171 12.237
      • C 1 92.66.12.56 192.66.12 56
  • 15. How the Web Works: IP Addresses and Domain Names
    • IP addresses are unfriendly
    • Assign a human readable name to IP addresses
    • Placed in a distributed, hierarchical , lookup system
    • In network of thousands of domain name severs (DNS)
    • Which map domain names to IP addresses
    • For example: 128.171.xxx.xxx = uhh.hawaii.edu
    Domain Organization Name uhh.hawaii Top Level Domain Organization Type .edu
  • 16. How the Web Works: Protocols and Infrastructure
    • Messages versus Packets
      • i.e., connection vs. connectionless
    Web Server This Machine HTTP TCP IP HTTP TCP IP Packet Packet Packet Packet 3 Packet 2 Packet 1 Message (example: Page)
  • 17. Client (Browser) Web Server Commerce Server (Storefront) Product Database Shopping Cart Secure Transaction Server Dynamic Static Pages Pages Pages Pages
  • 18. WEB SITE HOSTING
  • 19. Getting Started: Hosting Issues
    • Hosting
      • Understanding what “hosting” means and your alternatives?
    • “Do-it-yourself” website services
      • http://www.1and1.com
      • http://www.bigstep.com/
      • http://store.yahoo.com/
  • 20. Getting Started: Hosting Issues
    • Bandwidth
    • Capabilities and specifications
      • Examine the features and functions provided by different hosts
      • Example: Comparison of features at 1and1.com
    • Firewall system
    • Wireless delivery
    • Buy, rent, or lease
    • Maintenance, upgrade, and service of the equipment
  • 21.
    • Identify what you have resources and time to do
    • Identify what will be done “outside” the firm
    • Identify which external parties will be involved
      • e.g., designer, ISP, web host? commerce provider?
    • Identify how you will assess their performance
      • Decision metrics – e.g., are they reliable?
      • On-going performance metrics – e.g., is their “uptime” what they claim?
    Getting Started: Web Hosting
  • 22.
    • Web site considerations
    What is Involved in Establishing a Web Site?
      • The services wanted
      • How much your company can contribute to the site, from manpower to electronic content
      • Time to design your site
      • Time to create and program your site
      • Extra fees for software development
      • Fees for off-the-shelf applications tools
      • The size of the site
      • Training requirements
      • Installation and server maintenance
      • Programming
      • On corporate site hosting vs. off-site
      • Secure Server for financial transactions
      • Your bandwidth needs
      • Your server capacity needs
      • Location of your server at the Web company or ISP company location
  • 23. WEB SITE DEVELOPMENT
  • 24. Ecommerce and the Internet: Basic Site Building
      • First – your ‘Domain Name’
        • Maybe I’d like to use “flowersbykelly.com”
        • Check at Register.com to see if it’s available
      • 10 Steps at Yahoo! to developing your site
        • http:// smallbusiness.yahoo.com/webhosting/gstart.php
      • Demonstration in basic site construction
        • Using Yahoo! SiteWizards
  • 25. WEB SITE MANAGEMENT
  • 26. Ecommerce and the Internet: Basic Site Management Functions
      • Example: Yahoo! Merchant Solutions
        • Plans and features
        • Business Control Panel - Site manager
          • Store editor
          • Catalog manager
          • Order / request processing
          • Site statistics
          • Order settings
          • Promoting the site
  • 27. On-line Transaction Completion Source: A.T. Kearney, 2001
  • 28. Reasons for Abandoning On-line Purchases Source: A.T. Kearney, 2001
  • 29. Website Management Issues: The Shopping Experience
    • Industry research shows that up to 80 percent of shoppers abandon shopping cart before completing checkout
    • Techniques for minimizing shopping cart abandonment rates:
      • If the billing information is the same as the shipping information, include a “Same as billing information” check box to automatically fill in.
      • Show stock availability on the product page , so shoppers do not have to wait until checkout to determine if a product is out of stock.
      • Include a link back to product page from shopping cart, so shoppers can easily go back to make sure they have selected the right item.
      • Make it easy to change quantities or delete items from shopping cart.
      • Make it easy to select or change product values in the shopping cart (e.g., color, size).
      • Include a "Progress Indicator" (e.g., "Step 2 of 5") on each checkout page (e.g., tabbed pages), so shoppers always know where they are in the checkout process.
    Adapted from Overture.com - 2005
  • 30. Website Management Issues: The Shopping Experience
    • Techniques for minimizing shopping cart abandonment rates (continued):
      • Provide shipping costs early in the process , so shoppers are not surprised during final checkout.
      • Include a prominent "Next Step" or "Continue with Checkout" button on each checkout page, so shoppers do not get lost.
      • Keep all information on one screen on each checkout page , so shoppers do not have to frequently scroll down.
      • If information is missing or filled out incorrectly during checkout, give meaningful error message that clearly describes what needs to be corrected.
      • If you intend to add your customers to a list for future e-mail marketing (either from you or a third party), make sure your customers know this and can easily opt out .
      • Make recommendations of additional items to buy based on what is already in the shopping cart.
    Adapted from Overture.com - 2005
  • 31. Web Site Management: Payment Processing
  • 32. Web Site Management: Payment Processing
  • 33. Steps in Online Payment Processing
    • Merchant submits credit card transaction to the Payment Gateway on behalf of a customer via secure connection from a Web site.
    • Payment Gateway receives the secure transaction information and passes it via a secure connection to the Merchant Bank’s Processor.
    • The Merchant Bank’s Processor submits the transaction to the Credit Card Interchange (a network of financial entities that communicate to manage the processing, clearing, and settlement of credit card transactions).
    • Credit Card Interchange routes transaction to customer’s Credit Card Issuer.
    • Credit Card Issuer approves / declines the transaction based on customer’s available funds and passes transaction results, and if approved, the appropriate funds, back through the Credit Card Interchange.
    • Credit Card Interchange relays transaction results to Merchant Bank’s Processor.
    • Merchant Bank’s Processor relays transaction results to Payment Gateway.
    • Payment Gateway stores transaction results and sends them to customer and/or merchant.
    • Credit Card Interchange passes appropriate funds for the transaction to Merchant’s Bank, which then deposits funds into the merchant’s bank account.
  • 34. Web Site Management: Payment Processing
    • Some things to keep in mind:
      • The merchant needs a special Internet Merchant Account
      • The merchant needs to arrange for service through an Internet entity called a Payment Gateway
      • The merchant needs to submit charges for settlement – daily or weekly
    • Merchant’s sign-up process at VeriSign.com
  • 35. Web Site Management: Order Processing and Fulfillment
  • 36. Web Site Management: Steps in Order Processing and Fulfillment
    • Order validated
    • Settlement of order payment
    • Customer notified
    • Items picked
    • Inventory updated
    • Items packed (with packing slip)
    • Shipping labels prepared
    • Shipper pickup arranged
    • Shipper picks up
    • Send shipping confirmation (with tracking number) to customer
  • 37. Web Site Management: Order Processing and Fulfillment
    • Merchant has to be notified or become aware that an order has been placed
    • One reliable person should be made responsible for checking / processing orders
    • It should become part of their ‘job description’
    • What mode of informing?
      • Email?
      • Manual check of the site?
    • How frequently / often will the person check / process?
  • 38. Web Site Management: Order Processing and Fulfillment
    • Customer has to be notified of order confirmation
    • Method – email, phone?
    • Confirmation of stage in process
      • Order placed
      • Charge assessed to card
      • Order shipped
  • 39. Web Site Management: Order Processing and Fulfillment
    • Packaging
      • Effective AND attractive
    • Fulfillment
      • Track inventory accurately
      • Make sure you have enough product
      • Indicate availability on web site – database inventory
    • Shipping
      • Vendor(s) and methods
      • Rates – how much and how assessed
        • included in price, flat rate, by weight, by number of items
      • Shipment tracking
      • Shipment status updates
      • Remember - foreign shipping may require additional paperwork
    • Product guarantees and returns
      • Post a visible policy with explicit instructions
      • Handle returns quickly
  • 40. WEB SITE PLANNING / OPERATING CHECKLISTS AND OTHER RESOURCES
  • 41. Website Planning / Operating Checklist
    • Have you carefully analyzed your market and competition?
    • Do you know who your target audience is, and is your website speaking to them?
    • Do your prices include a realistic margin for profit when all expenses are subtracted including shipping, customer service and advertising
    • Are your prices competitive with similar online businesses?
    • Are your site’s objectives and purpose clear?
    • Are your products or services clearly identified?
    • Are the competitive advantages of your products or services clearly stated?
    • Do you have a business plan?  Have you planned 1, 3 and 5 years out? 
    • Will your website ever make money?
    • Does your staff clearly understand their organizational duties and who is in charge?
    • How is your company’s hierarchy and decision process handled? 
    • Is there a clear path from R&D to sales? How quickly can your company initiate innovative ideas and products and have them online?
    • Is your website’s architecture well designed and easy to navigate?
    • Is your shopping cart easy to use? Is it secure?
    • Is your electronic infrastructure set up efficiently? 
    • Do your website, product database, shipping, inventory, accounting, e-mail and customer database integrate well with each other? 
    • Is your database the hub?
    • Do you have good statistical analysis software in place to track visitor and customer information?
  • 42. Website Planning / Operating Checklist
    • Does your website have a professional appearance when compared to your competition? 
    • Is your text well written, concise and free of errors?
    • Do you change your website frequently to make it ‘fresh’?
    • Are your photos high quality and well lit?
    • Are your graphics and photos optimized for the web?
    • Do they represent your products well?
    • Do you have click-to-enlarge photos of your products?
    • Does your website load quickly?
    • Is your software working well between inventory, fulfillment, shipping, customer service and accounting?
    • Do you have a merchant credit card processing account?
    • Have you decided on transaction policies, types of transactions, privacy policies, secure data storage for customer data?
    • Does your staff know what to do in every situation?
    • Are you able to fulfill orders quickly?
    • Do you respond quickly to customer e-mail questions and service issues?
    • Do you have a toll-free telephone number and can customers easily find someone to talk to?
    • Do you or the person responsible for your website and marketing have intimate knowledge of the internet?
    • How many hours per day is spent online? 
    • Do you purchase, conduct business and research online yourself?
    • Are you watching for online trends and emerging technologies? 
    • Do you know if streaming media or other interactive technologies are beneficial for your website?
  • 43. Other Online Resources
    • A lot of small business related information - AllBusiness.com
    • Universal online payment processing – PayPal.com
    • Online payment processing and transaction security – VeriSign.com
  • 44. Ecommerce and the Internet: Conclusion
    • We Talked About:
    • What is e-commerce and why do it?
    • The Internet
    • Website hosting basics
    • Website development and design basics
    • Website management basics
    • Now You Should:
    • Go Out and Explore Some Web Site Options
    • Maybe Even Start a Web Site
    • In The Next Workshop We’ll Talk About:
    • How To Effectively Market Your Site
    • Online Exchanges and Co-operatives
  • 45. Effective Online Business: Hosting, Marketing, and Management Strategies Workshop #2 Presenters: Kelly Burke – University of Hawaii at Hilo Steven Parente – Aina Hawaiian Tropical Products Supported by a USDA Cooperative State Research, Education and Extension Service Grant through the University of Hawaii at Hilo and Dr. Marcia Sakai
  • 46. Effective Online Business Marketing and Management Strategies
    • Marketing your Internet business
    • Monitoring your site’s performance
    • Extending business opportunities - online exchanges / cooperatives
  • 47. Website Marketing
    • Excellent customer service
      • Word of mouth is the best form of advertising
    • Plan a realistic monthly marketing and advertising budget
      • Search engines
      • Directories
      • Traditional off-line media
  • 48.
    • Domain name should suggest your service or products
      • Ex: FlowersByKelly.com or flowers-by-kelly.com
      • not kelly.com
    • The text in your website is critical to marketing
      • Descriptive, accurate, concise
      • Include keywords – more than once – but not too often
    Website Marketing
  • 49. Website Marketing: Three Objectives
    • Increase Presence  Optimize
    • Drive Traffic  Publicize
    • Convert Visitors  Monetize
  • 50. Website Marketing
    • Find out if your site is indexed
      • Pages in cache
        • At Google  cache:http://your-domain.com
        • Ex: cache:http://primal-elements.com - nothing?
        • Ex: cache:http://www.primalelements.com
      • Number of pages indexed in domain
        • At Google or Yahoo!  site:your-domain.com
        • At Google site:www.uhhiloagstore.com
        • At Yahoo! site:www.uhhiloagstore.com
  • 51. Search Engine Marketing
  • 52. Search Engine Marketing
    • Combination of:
      • Your site’s pages (content)
      • +
      • Bid for placement advertising
    • Sponsored results at search engine sites
      • Ex: search Google for “bath soap”
  • 53.
    • Most search engines use weighted point systems to display results in a ranked order
    • Ranking is result of page “grade”
      • Grade = title + description + keywords + H1 tags + links-into + ‘alt’ descriptions + number of images + page size
    • Use a tool at Summit Media to analyze your site
      • http:// tools.summitmedia.co.uk /spider
    Search Engine Marketing: Basic Design
  • 54. Search Engine Marketing: Basic Design
    • It’s all about ‘descriptive content’
    • Limit use of multimedia
    • Limit use of graphics
    • Use long descriptive ‘link’ text
      • Ex: Here you will find a listing of all of the courses Dr. Burke teaches.
    • Spell check and edit
    • Make it easy to move around the site
    • Avoid frames
  • 55. Search Engine Marketing: Optimization
    • Use a descriptive ‘Title’
      • No more than 40 characters including spaces
      • Include keyword in title
      • Ex: Flowers-by-Kelly Home Page – Orchids for all occasions
    • Use meta-tags
      • Description meta-tag – should
        • Be no more than 190 characters long
        • Include keywords
        • Be factual and accurate
        • Include general product information
        • Include information about target audience
        • Not include slang, exaggeration, or hyperbole
      • Keywords meta-tag
      • Header ‘H1’ tags
  • 56.
    • Title Tag
      • <title>Sore Okole Mountain Bikes - Home Page</title>
    • Description Tag
      • <META NAME = “description” CONTENT = “Sore Okole Mountain Bikes is the place for all of your biking needs, including frames, components, accessories, gear and popular brands like Cannondale, Trek and Specialized”>
    • Keywords Tag
      • <META NAME = “keywords” CONTENT = “mountain, bike, bikes, Cannondale, Trek, Specialized, components, gear, frames”>
    • Header Tag
      • <h1> Sore Okole Mountain Bicycles </h1>
    • Example of HTML source at Sore Okole Bicylcles
    Search Engine Marketing: Optimization Using Meta Tags
  • 57. Search Engine Marketing: Bid for Placement and Keywords
  • 58.
    • Register with PPC system (search engine)
    • Load account
    • Create an advertisement
      • Title, body text, link to ‘landing’ page
    • Choose keywords to associate with the ad
    • For each keyword you associate - bid amount you are willing to pay for each click for the ad
    Search Engine Marketing: Bid for Placement - PPC Advertising
  • 59. Search Engine Marketing: Keywords
    • How they work
    • Keyword analysis
      • Keyword rank = meta tag placement + capitalization + font size + word position in document relative to other words
    • Identify competitors’ keywords
    • Look up synonyms
      • Bicycle and bike
    • Consider plurals and spelling mistakes
      • Bicycles and bicycels
    • Research the use of the keyword
      • Yahoo! Advertiser Center  Tools  Term Suggestion  Type in search term
  • 60. Search Engine Marketing: Keywords
    • Keywords should attract visitors in all three stages of the buying cycle
      • Researching
        • General keywords  mountain bikes
      • Shopping (comparing)
        • More focused  cross country mountain bikes
      • Purchasing
        • Specific choices  Specialized Rockhopper (a brand of cross-country mountain bike)
  • 61.
    • Many sites will have to manage dozens and even hundreds of keywords
    • Every keyword should ‘land’ the visitor at the most relevant page for that keyword
      • Example: ‘Trek’ should land visitor on a page with Trek bikes - not on the site’s homepage
    • Keywords may have to change to reflect ‘seasonality’
    Search Engine Marketing: Keywords
  • 62. Search Engine Marketing: Keywords
    • Matching
      • Broad
        • Mountain bikes – whenever search contains these words
      • Phrase
        • “Mountain bikes” – only when search contains this phrase
        • Could be in a search for “used mountain bikes”
      • Exact
        • [downhill mountain bikes] – only when search specifies this exact order of words
        • Would not show for search of “mountain bikes downhill”
      • Negative
        • -Used – does not show when this word or phrase is used by someone looking for used bikes
  • 63. Search Engine Marketing: Keyword Tools
    • www.Adwords.Google.com
    • www.Wordtracker.com
      • Searches data at large web-crawlers like www.Dogpile.com
      • Stores two months of searches – 300 million searches
      • Number of times searched for in last 60 days
      • Estimates number of searches per day
      • Similar terms & common misspellings
      • Comparison of number of times term is searched for and number of pages returned for the term
        • Look for term with many searches and few pages returned
  • 64. Search Engine Marketing: Valuing PPC Search Terms
    • Determine how much gross profit (after costs) you make per sale
      • Is there a ‘lifetime’ value per customer or
      • Do you value a customer as ‘one time’ only?
    • Calculate ‘conversion’ rate
      • Shop.org estimates retail industry average at 2.4%
      • When possible use your own site statistics
    • Calculate PPC value – also called Conversion Cost
      • If your gross profit is $10 per sale
      • And your conversion rate is 4% (4 sales per 100 click-throughs)
      • Then your PPC value is $10 X .04 = $0.40 - that you would be willing to pay per visitor (PPC)
      • In other words, you can pay $0.40 per click through and after 25 of them you would have paid 25 X $0.40 = $10.00 but you’d expect 1 of the 25 visitors (4%) to buy something - giving you that $10.00 gross profit, covering your PPC costs
  • 65. Search Engine Marketing: Cross-linking and Other Issues
  • 66.
    • Page Rank is increased by
      • More links into your site
      • Links into your site from more relevant sites
    • Cross-linking is also a form of ‘Branding’
    • Use linking strategies that enhance your website's position – not detract from potential sales
      • For instance, link from complementary products sites rather than from similar products sites
    • Cross-linking sources:
      • Trade associations
      • Companies you do business with
      • Press releases and promotions
      • Have content people value (ex: history of lei making)
      • Contact relevant sites
    • The power of cross-linking
      • Check link popularity - for ex: at AltaVista.com - link:flowersbykelly.com
    Search Engine Marketing: Cross-linking
  • 67. Search Engine Marketing: What Search Engines Don’t Like
    • Don’t search or find it difficult to search when they see:
      • Frames, images, multimedia (ex: flash, animation), image maps
        • Avoid frames, images, animation unless necessary
        • Move images and image maps to bottom of page
      • Scripts, excessive formatting code
        • Call external scripts – don’t embed in source
        • Use external CSS files for formatting
      • Dynamic pages – too many parameters, too many possible pages
        • Use static pages when possible
        • Use one or two parameters at most
      • Will not search sites that demand cookies for site access
  • 68. Search Engine Marketing: Submit to the Major Engines
    • AltaVista – www.altavista.com
    • AOL.COM Search – search.aol.com
    • Ask Jeeves – www.askjeeves.com
    • Google – www.google.com
    • Overture – www.overture.com
    • Excite – www.excite.com
    • Fast – www.alltheweb.com
    • HotBot – www.hotbot.com
    • Lycos – www.lycos.com
    • MSN Search – search.msn.com
    • Don’t forget Froogle – www.froogle.com
  • 69. Search Directory Marketing
  • 70. Search Directory Marketing
    • Directories are different than engines
    • Index by categories rather than keywords
      • So – there are far fewer categories
    • Why submit to directories?
      • Another channel of exposure
      • Each one is one more ‘link into’ your site – remember cross-linking
  • 71.
    • Major directories are
      • Google Directory – fed by Open Directory Project
      • Yahoo! Directory
        • Fourteen categories – thousands of subcategories
        • So may be difficult choosing a category to be listed in
        • Submitting costs $$$
      • Open Directory Project – www.dmoz.com
      • LookSmart – www.looksmart.com
    Search Directory Marketing
  • 72. Search Engine Marketing: Webmaster SEO Resources
    • Google’s webmaster pages
      • http://www.Google.com/webmasters/guidelines.html
      • http://www.Google.com/webmasters/faq.html
    • Yahoo help
      • http:// help.Yahoo.com/help/us/ysearch/index.html
    • Search Engine Watch
      • http:// www.SearchEngineWatch.com
    • Pandia Search Central
      • http:// www.Pandia.com
    • Open Directory Project
      • http:// www.dmoz.org /Computers/Internet/Searching
  • 73. Non-Search Engine Marketing:
  • 74. Non-Search Engine Marketing
    • Advertising banners
      • Typical ad = 468 x 60 pixels (about 1” x 5”)
      • Are they effective?
        • Click through rates of 1 – 3 per thousand impressions
      • Buying them
        • Costs dropping – ~$20 for 1,000,000 impressions (banner.com)
      • Link ‘exchanges’ – ex: flower sellers could partner with gift sellers or gift-card sellers
        • Remember - having link partners also looks good to search engines
      • Are they right for your products or services?
    • Banner strategies
      • Banner should load quickly and have a ‘call to action’ – ex: “click here for…”
      • Have inventory of 5-6 banners
      • Have them rotated every 5,000-10,000 impressions
      • Use multiple banner exchanges for different networks of targets
      • Look / negotiate for more ‘targeted’ exposures (they target using ‘keywords’ that you bid on)
      • Monitor click-throughs for each banner and from each exchange
  • 75.
    • Opt-in e-mail databases
      • Promotions, e-mail marketing, direct mail marketing
      • Build lists from store front, web site, catalogs
      • Buy lists from list sellers
      • Response rates higher than with banner ads – as much as 5%-10%
      • They are targeted
    • Effectiveness of banner ads and email programs may be considered as “Brand Building”
    Non-Search Engine Marketing
  • 76. Non-Search Engine Marketing
    • Affiliate programs and promotional partnerships
      • Pay to have leads sent to you (pay per-click or per-sale)
      • Ex: www.myaffiliateprogram.com
    • Bonus point strategies can develop repeat business
    • The importance of traditional advertising
      • Print – can cost $2 - $3 per sale
      • Radio, television – can cost $10 - $40 per sale
  • 77. Website Marketing: Follow-up Management Issues
  • 78. Website Marketing: Follow-up Management
    • Collecting / analyzing visitor and customer data
      • Discovering your customers’ patterns, wants and desires
      • Using software to analyze the data
        • Ex: uhhiloagstore at Yahoo! Store
      • What to analyze
      • How often
    • ROI (Return On Investment) from advertising and marketing
      • Measuring advertising effectiveness
      • What is your “Cost Per Conversion”?
        • For example Google has a “Conversion Tracker” tool
  • 79. Website Marketing Checklist
    • Does your domain name make sense with your service or products?
    • Is the text in your website descriptive, concise and accurate?
    • Do you understand how search engines work and that most use a weighted point system to display results?
    • Do you understand what bid-for-placement marketing is?
    • Do you understand what sponsored results are in the search engines?
    • Do you understand what cross-linking is?
    • Do you know linking strategies that enhance your website's position and do not detract from potential sales?
    • Do you know that some past internet marketing techniques can actually get your website penalized with the search engines?
    • Have you planned for a realistic monthly marketing and advertising budget?
    • Is online marketing such as advertising banners good for your products or services?
    • Would traditional advertising work with your online presence, such as print, radio and television?
    • Have you considered creating an opt-in e-mail database for promotions, e-mail marketing and direct mail marketing?
    • Are there promotional partnerships available for your products or services?
    • Do you have bonus point strategies in place to develop repeat customer traffic?
    • Do you have the software in place to collect and analyze visitor and customer data? 
    • Do you analyze it regularly and learn your customer patterns, wants and desires?
    • Do you have a good ROI (Return On  Investment) from your advertising and marketing? Do you know how to tell?

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