* Dataquest, 2000 Effective Online Business:


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* Dataquest, 2000 Effective Online Business:

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