This document provides an overview of internet marketing and e-commerce. It discusses key concepts like B2B, B2C, C2C marketing and the importance of segmentation, targeting and positioning for online businesses. It also covers topics like creating an effective website, using email marketing, online advertising, developing affiliate programs and creating online communities.

1. Modul 2 Internet Marketing Tr ainer : Aleksandar Bojovi ć Kragujevac 28.01.- 01.02.2008.

2. Globalization Technological progress Deregulation

3. “ Behind every problem lies brilliant hidden chance ” “ satisfying needs in a profitable way ” Object of marketing: pro ducts , services , experiences , events , people , desti nations , property , organizacije, inform ation and ideas

4. Product Or ientation Pro duction Orientation Sales Orientation Marketing Orientation Social Responsibility Orientation End of 17 th century - 1930 1950 1970

5. Customers will buy every product that is easily accessible and not too expensive “ Production creates its own demand ” “ Give them every colour, as long as it is black ” Applicable concept in situations when : Demand exceeds supply of products Production costs are high

6. Orientation on improvement of quality, performance and innovation of product “ The Best Mousetrap ” Marketing Myopia US railways

7. After 1930 till 1950 Concept insists on sale and production efforts to stimulate the interest of customers The object is to sell what was produced rather then produce what market needs Concept is applicable for less desirable goods

8. Identifying the needs of target market and adjusting organization to fulfil these needs more effective and efficient then competition push- pull vs. pull - push

9. Starting point Fo c us Means Objectives (a) Sales c oncept (b) Marketing c oncept

10. Organization that satisfies identified needs of target market better then competition but in the way which protects wealth fare of customers and society

11. Market segmentation – demographics , psychographics , behaviouristic ... and other criteria Targeting is selection of the market segments that organization can serve in the best possible way Positioning is designing of company’s offer in the way that enables company to position its self in the desired place in the mind of customer on the target market

12. Marketing mix Target market Product quality design characteristics b rend package size services warranty reclamation Prise pricelist discounts period for payment terms of payment Promotion sales promotion advertising sales force PR direct marketing Distribution distribution channels availability assortment location transport stocks

13. WWW – world wide web – immensely big public network of computers that connects all kind of users to each other from all over the world and with incredibly big “information storage” “ Incredibly big information Highway” which delivers bits with enormous speed from one location to another “ Main actor ” or “ supporting leading role ” in all innovations that came up in so called “New age Economy”

14. The age of the Internet Digitalization and Connectivity Explosion of Internet Usage New types of mediators Customization and customerization

15. STATISTICS OF INTERNET USAGE AND POPULATION Region Population ( 2007 estimation .) Population % of the world Internet usage, last available data % Population ( Penetration ) Usage % of the world Increasing of usage 2000-2007 Africa 941,249,130 14.2 % 44,234,240 4.7 % 3.5 % 879.8 % Asia 3,733,783,474 56.5 % 461,703,143 12.4 % 36.6 % 303.9 % Europe 801,821,187 12.1 % 343,787,434 42.9 % 27.2 % 227.1 % Bliski istok 192,755,045 2.7 % 33,510,500 17.4 % 2.7 % 920.2 % North America 334,659,631 5.1 % 237,168,545 70.9 % 18.8 % 119.4 % Latin America, Caribbean Islands 569,133,474 8.6 % 122,384,914 21.5 % 9.7 % 577.3 % Oceania / Australia 33,568,225 0.5 % 19,243,921 57.3 % 1.5 % 152.6 % Total 6,606,970,166 100.0 % 1,262,032,697 19.1 % 100.0 % 249.6 %

17. Over 1 500 000 users !!!

18. Comfort – shops that work 24/7, 365 days during the year Savings – enormous number of suppliers just “click” away from customers Choice – the world is the limit when it comes to web, virtual stores can offer almost unlimited assortment Personalization – creation of profiles according to personal needs and preferences over the great number of web portals Information – even though human interaction is missing, it is almost impossible to find sales force that can provide you so much information like internet is providing

19. Improving of relations with customers –1-1 relation , interactive relation, companies could have feedback about needs and wants of the customers Cost savings – companies could save by restriction of rent, maintenance and insurance costs Increasing of business efficiency – due to direct negotiations, transactions are faster and there is no information gap Flexibility – internet provide to the companies possibility to update catalogues in every moment in order to respond to volatile market conditions Global medium – just “click” away stands possibility to pass from one country to another

20. Segmentation – “data warehose”, “data mining” Targeting – od “broadcastinga” do “narowcastinga” Positioning – faster feedbacka about results Price – internet will continue to push prices downwards and decrease margin, buy.com, priceline.com Distribution – classical companies vs. on-line distributors Promotion – enormous media fragmentation, new communication channels and mediums Product – customization of the product according to feedback and comments of customers

21. Internet Marketing 2. day Market relations after Internet introduction Business relations after Internet explosion Internet marketing plan

22. B2C (business-to-consumer) B2B (business-to-business) C2C (consumer-to-consumer) C2B (consumer-to-business) Customer Oriented Business Oriented Initiated by company Initiated by customer

23. Sale of products and services to final customers by the Internet Purchase over the Internet makes growth year after year - $ 428 billions in 2004 . Products usually purchased over the internet : travel services, clothes, hardware and softwear for computers , electronic devices, books, music and movies, sports equipment, flowers and gifts, toys, healthcare products, house and garden keeping products www.calyxandcorolla.com

24. Realization of business between partners by Internet usage Net worth of transactions during 2003 was $4 bi l lion s One third of overall transactions between business partners in 2006 was conducted over the Internet B2B Forms : Web portals design for business partners – www.sun.com Exchanges on electronic virtual markets www.covisint.com – trade networks where meet each other enormous number of sellers and buyers Privat e business networks – trade networks between one seller and one buyer

25. Exchange of goods and information between customers over the Internet eB ay – in 2005. more then 42 mi l lion s of registered users , worth of conducting transactions was more then $15 b il lions , 16 mil l ion s items in 27000 categories Forums – discussion groups that meet each other on the servers. They could be commercial or non commercial character www. elitesecurity .org “ worth of mouth ” gets bigger dimensions and becomes “ worth of web ”

26. Exchange over the Internet in which customers are searching for producers, collecting information about offers, initiate transactions, even dictating transaction terms www.priceline.com – potential buyers offer price for flight tickets, tourist trips

27. producer producer producer Electronic distribution channels Classical distribution channels Classical distribution channels Electronic distribution channels customers customers customers a) b) c)

28. Internet marketing e-mail ing Web site development Advertising and promotion over the Internet Creation of web communities

29. Content of marketing plan I Resume and content Short overview of marketing plan II Market analysis Analysis of sales, costs, profit, competition III Analysis of opportunities and KSF SWOT analysis and critical factors about the product IV Objectives Defining of objectives in terms of sales scale, market share and profit V Marketing strategy Presentation of integrated overall marketing approach used for fulfilling of aims VI Action plan Presentation of more detailed plans and time frames for meeting the objectives VII Planned income statement Foreseeing of financial results VIII Control Indicators and procedures for keeping track with plans

30. Basic management knowledge and skills are prerequisite before developing your business web presentation Successful web marketing is a combination of different marketing methods Customer is the only criteria when you make decisions about web business, from which design to which method If you have already in a business, probably you will have to change your current marketing mix

31. How can you find your current customers on the internet How can you find your new clients on the web Sniper vs. Shotgun Three main criteria for checking of your marketing plan: Do your plans follow the needs and wants of target markets Is your plan financially acceptable Are you capable and do you have capacities to implement and realize your plans

32. Which strategy will you use after starting your business over the internet : Serving your current customers at a cheaper rate Penetrate on the new markets Diversify assortment of your products and services

33. Numbers without you can’t measure your internet business success : Break even point Return on investments (ROI) Costs of new potential customer acquisition

34. Specifying objectives for your web site : Providing customer service through information Branding your company or product Generating leads or qualifying prospects Generating revenue through sales Generating revenue through advertising Attracting of business partners, investors... Introducing innovations in your business

35. Defining your target market : segmentation – demographic , behavioural , geographic , industrial ... Choose markets that you can serve the best Marketing Tag : It takes hard man to breath soft chicken – Frank Perdue (1971) Competitors : if you don’t know, ask Google !!

36. 4Ps: Place, Price, Promotion & Product Understanding why people buy: Maslow’s triangle Fishing where the fish are Marketing online is part of overall marketing so called Integrated marketing communication (IMC)

37. Internet Marketing 3. day Deciding who will design your website Izrada web prezentacije Structure of web presentation

38. Are you familiar with HTML, PHP, JavaScript? Are you an experienced photographer ? Be objective about your skills Would you let someone without experiences to design your web site? – time is money! !! Deciding who will design your web site is STRATEGIC DECISION

39. You can create your site with professionally designed templates Strengths : Can save you significant money while maintaining graphic identity Can be quickly launched and fully operative Since the design is already prepared you can focus on content Use a template as a strategic placeholder and build web presence Weaknesses : Not flexible for updating Not representing your business exactly in a way you wanted to be You can choose templates at three different levels : costs , customizability and skills required

40. Right web designer – agency for you See who designed your favourite sites See who designed your competitors site Ask others in your local trade association for names of providers they use. Look at Web sites for regional or statewide associations of Web professionals

41. A preliminary site index helps you gather your ideas in one place Organize your site index strategically, with the most important information at the top Take enough time in preparation of this tool Site index must represents marketing goals that have to be attained by web site Your site index is an important document of Request for Proposal

43. RFP is a convenient way to get bids from service providers on the same set of tasks Elements of good Request for Proposal : A summary of the goals, objectives, and target market for the site A list of desired features, site size, and other details A draft site index A list of special services needed A timeline for development Information on how and when proposals will be evaluated

44. A good domain name is : Easy to say in person – www.petar-77.com Easy to understand over the radio or on the phone – www.redasp.com Easy to spell Easy to type – Your domain name can be as long as 59 characters Easy to read in print and on line ads Easy to read in address toolbar – mrnrm, ililill Easy to remember - www.redasp.com

46. You have 4 seconds to make first impression !!! Font, pictures , activities ... everything on your site must appeal to the target audience Stickiness is what you want from your site Give them reason to come back for more – picture of the day , no comment, weather forecast ... “ What’s on this site for me ?!” Use the direct narration - You Imperative verbs – choose, apply

47. The easier you can make it for visitors to achieve what they want, the more likely for your site is to succeed Use AIDA technique for your site : Attention - you have 4 seconds !!! – put some interesting graphics or headline that grabs Interest – build interest with site design and navigation that will give you time to present the content of your site Desire – create a desire and a sense of urgency as visitors move them selves toward taking an action – buy now for free shipping Action – right from the beginning make it obvious what you want visitors to do, then ensure visitors that is extremely easy for them to take those actions

48. Company Logo The most important part of the site Main graphic – showing the purpose of the site Important text and other important things must not fall below visitors view, he must not scroll down in order to come to them Company contacts and main site navigation

49. The main menu of options appears consistently on every page in the same place The footer of each page include links to the main pages Secondary menus cue users with a glimpse of what they will find within section A linkable sitemap or index offers the overall layout of a a site at a glance The appearance of links changes to let users know where they are An onsite search engine should be available for large web sites. On site search has a high marketing value. Navigation should have words, non nameless icons that visitors have to remember You should check all links and navigations before launching web presentation

50. In developing of your web content you should follow next rules : Use inverted pyramid Grab readers with head lines Koristite upečatljive naslove, write strong leads Stay above fold Avoid long, scrolling pages Emphasize second person Stay informal keep it short Include text links Have others read what you write Proofread your text

51. You should use rich media for your web site: If the media adds marketing value It makes it easier to use or otherwise enhance the user experience The gold for your web site demands it Your target audience wants it or expects it You need to use it to stay even with, or ahead of, your competition If you can’t afford to do it right, don’t do it at all!!!

52. The conversion funnel People who see your URL Visitor s to site Prospects Qualified Leads Buyers 2-4%

53. Internet Marketing 4. day E-mailing as a promotion tool Creating of web communities and forums On line advertising – banners i pay per click

54. 2.5 trillion e-mails flood inboxes every day 70% of this e-mails are spam how can you reach target market ?

55. “ Marketing je deo biznisa, ali celokupan biznis je marketing” Branding with signature blocks Letting autoresponders do the work Speeding response time with packaged blurbs Sending bulk or group e-mail

56. Jan Zimmerman Author, Web Marketing For Dummies Strategic Web Marketing & Site Man Watermelon Mountain Web Marketin 4614 Sixth St. NW Albuquerque, NM 87107 t: 505.344.4230 f: 505.345.4128 e: info@watermelonweb.com w: http://www.watermelonweb.com

57. fairly high percentage of CTR compared to other forms of online advertising Key success factor is to find right audience If you are aiming at a demographic older then 25 years old newsletter is right thing for your

58. How to improve efficiency of your newsletter ? Measuring Bounce rate Measuring of Open rate Measuring Unsubscribe rate CTR= number of links to your site / number of opened newsletter s A/B testing

59. How to create an effective newsletter ? Don’t forget branding Entice the subscriber Create a sense of urgency Ne preterujte sa “!!!” u naslovu pisma Use small photos Accommodate newsletter to subscribers who use slow connections

60. How can you find new names for your newsletter list You can collect new e-mail addresses offline at: Networking events Fairs Whenever you have live customer contact In your store You can collect new e-mail addresses online when: Offering something free for subscribers Place a newsletter opt-in check box on the same form customers fill out when purchasing online Put a newsletter opt-in check box on any submission form on your web site

61. An affiliate program is an online referral system that offers a commission to the source of the lead Forms of affiliate programs : banners and sponsored links Affiliate programs don’t have to be always paid, there can be arranged exchange of banners and links without any payments

62. Several questions to think about: How will you define a transactions? How much will you pay for transactions? How many affiliates do you want? Will you establish and enforce policies about affiliates’ competing with your site for PPC of e-mail advertising Do you have support staff to communicate with affiliates on regular basis? When you figure the commission and implementation expenses into your cost of sales, what happens with BEP?

63. Guerrilla marketing employs somewhat unconventional promotion methods (online or offline) to reach your audience, usually at low cost T he most common used technics : Chat rooms , Message boards , Blogs , Social networks

64. 4 simple rules Follow your fish Seven is your lucky number Plan your work and work your plan Keep track of your results

65. By participating in existing chat rooms or massage boards you can spread the word subtly Pick 1-2 rooms , think rifle not shotgun Rules : Use your job title to create credibility Rather then pontificate, leave your posts open Always conclude with a signature block

66. Blogs represents form of electronic journal W ith absolute numbers growing rapidly, blogs are not for everyone. You care about blogs only if your target audience uses them Getting the most out of blogs : Comment on an article written by the blogger E-mail blog owner to ask for a mention in his blog Note blogs that accept paid advertising for future use

67. Social Networks Social networks sites, wheatear business or personal, encourage participants to interact with others who share their interests or mutual objectives Contrary to newsletter s this method is suitable for demographic audience from 15 – 34 years old This technique is very useful for those in the entertainment, fashion and music industry