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  1. 1. Marketing Strategies on the Web
  2. 2. Marketing Strategies on the Web- an Overview <ul><li>Covering four main ideas: </li></ul><ul><ul><li>For Manufacturing companies: </li></ul></ul><ul><ul><li>(1) Understanding why marketing on Internet is different </li></ul></ul><ul><ul><li>For all organizations with a Web presence: </li></ul></ul><ul><ul><li>(2) How a manager should develop his/her Web site: a) design, b) functionality, and c) hosting </li></ul></ul><ul><ul><li>(3) Attracting visitors to that site </li></ul></ul><ul><ul><li>(4) Global issues </li></ul></ul>
  3. 3. (1) Marketing on the Internet is Different <ul><li>From the perspective of Manufacturers getting involved in direct sales as part of E-B </li></ul><ul><li>Offers new possibilities and dangers! </li></ul><ul><ul><li>Every customer now has instantaneous, documented, direct contact with every member of the firm (and vice versa) </li></ul></ul><ul><ul><li>Potential customers are world-wide </li></ul></ul><ul><ul><li>a manager and his/her competitors are now transparent and on the record </li></ul></ul><ul><ul><li>Technologies on Web change what message and service a manager can provide and how </li></ul></ul>
  4. 4. Marketing on the Internet is Different <ul><li>New 4 th Channel </li></ul><ul><ul><ul><li>Channels are a means of making a product or service available for use or consumption by the consumer or a business </li></ul></ul></ul><ul><ul><li>External channels allow manufacturers to focus on their core business and allows others to act as intermediaries </li></ul></ul><ul><ul><li>These are “middlemen” and consumers pay a premium for their services (location, storage, knowledge, varied quantities, related goods…) </li></ul></ul>
  5. 5. Marketing on the Internet is Different <ul><li>New 4 th Channel (cont.) </li></ul><ul><ul><li>TB has 3 channels to communicate and sell </li></ul></ul><ul><ul><li>Traditional channels: face-to-face; mail; and phone </li></ul></ul><ul><ul><li>The Web represents a new 4 th channel available to EB that has both advantages and potential drawbacks over the other three </li></ul></ul>
  6. 6. Marketing on the Internet is Different <ul><li>New 4 th Channel (cont.) </li></ul><ul><ul><li>Web as a channel offers interesting possibilities </li></ul></ul><ul><ul><li>As with the other 3, manufacturers have the option of providing direct sales with consumers and avoiding the use of an outside channel </li></ul></ul><ul><ul><li>Limitations to the other three have traditionally kept manufacturers out of this business… there are reasons you can’t buy directly from Ford </li></ul></ul>
  7. 7. Marketing on the Internet is Different - New 4 th Channel (cont.) <ul><li>Two basic problems for manufacturers: </li></ul><ul><ul><li>1) Not their core business </li></ul></ul><ul><ul><li>2) Channel conflicts (cannibalization)- Lose advantages of other providing: </li></ul></ul><ul><ul><ul><ul><li>Locations (close to where product is needed) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Storage (provide place for unsold items besides warehouse) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Knowledge (understands consumers needs; product in context, etc.) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Varied quantities (ability to break down cases, etc.) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Related goods (other manufacturers products avail.) </li></ul></ul></ul></ul>
  8. 8. Marketing on the Internet is Different <ul><li>Ways to deal with Channel Conflict- </li></ul><ul><ul><li>If you choose to not sell directly to consumers- </li></ul></ul><ul><ul><ul><li>Have a catalogue only </li></ul></ul></ul><ul><ul><ul><ul><li>List MSRP and product details </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Provide links to suggested retailers </li></ul></ul></ul></ul><ul><ul><li>If you do sell- </li></ul></ul><ul><ul><ul><li>Give subsidy to retailers based on lost sales </li></ul></ul></ul><ul><ul><ul><li>Sell at very high price to discourage direct purchase </li></ul></ul></ul><ul><ul><ul><li>Offer only unique goods/services on Web site </li></ul></ul></ul>
  9. 9. Marketing on the Internet is Different <ul><li>New 4 th Channel (cont.) </li></ul><ul><ul><li>For most traditional manufacturers, selling via the 4 th channel was in response to demand </li></ul></ul><ul><ul><li>Customers are demanding they be able to buy online so Web-commerce for these goods are required </li></ul></ul><ul><ul><li>So there is a need for firms to evaluate how to integrate a new sales interface into their distribution strategy </li></ul></ul>
  10. 10. (2a) Developing a Web Site—Design Issues <ul><li>First issue: Content is more important than appearance—managers shouldn’t let anyone fight to find information they are seeking </li></ul><ul><li>Second issue: Traditional Graphical User Interface or GUI (a.k.a., gooey) rules apply to Web apps—we are merging two worlds; IS and Marketing </li></ul>
  11. 11. Site Design—GUI Rules <ul><li>Managers shouldn’t drown people in eye candy in lieu of information—people won’t come back unless it is useful </li></ul><ul><li>But a picture is still worth a thousand words </li></ul><ul><li>Managers shouldn’t just take graphical material and brochure layouts from his/her traditional print media </li></ul>
  12. 12. GUI Rules—transferring graphics <ul><li>Traditional graphics won’t translate well: large files make pages slow </li></ul><ul><li>Too many colors/details won’t be readable in Web formats </li></ul><ul><li>Graphics aren’t readable by search engines and text readers (WAP and speech software) </li></ul>
  13. 13. GUI Rules—transferring graphics (cont.) <ul><li>Symbols might not translate worldwide ( will discuss more global issues later ) </li></ul>Prevents pregnancy? Not to be taken by pregnant women? Different cultures had dangerously different perceptions.
  14. 14. GUI Rules—transferring graphics <ul><li>A manager should make sure that his/her application looks good to as many people as possible </li></ul><ul><ul><li>Does it look good on a B&W printout? </li></ul></ul><ul><ul><li>On a TV screen (huge dot pitch) </li></ul></ul><ul><ul><li>On a palm pilot? </li></ul></ul><ul><li>XML-based documents anyone? </li></ul>
  15. 15. GUI Rules—textual layout <ul><li>This is hypermedia </li></ul><ul><ul><li>Don’t force people to read through linearly…expectations are higher </li></ul></ul><ul><ul><li>Each page clearly summarized in first paragraph and in title: <title> GUI Rules </title> </li></ul></ul><ul><ul><li>All information should be three clicks away—make “channels” </li></ul></ul><ul><ul><li>Text should be 33% more dense </li></ul></ul>
  16. 16. GUI Rules—General Site Design <ul><li>Rules for Web application (collection of pages) = traditional GUI rules </li></ul><ul><ul><li>Consistency throughout (should be recognized as his/her image too)…enforce with everyone! </li></ul></ul><ul><ul><li>Limit colors and use same in each page </li></ul></ul><ul><ul><li>Navigation bars on each page distinctive from other content </li></ul></ul><ul><ul><li>Don’t have too many items on page (7+/-2) </li></ul></ul>
  17. 17. GUI Rules—General Site Design <ul><li>Humor should be avoided unless it is part of the brand message…jokes aren’t funny the 3 rd time </li></ul><ul><li>Most important content goes in top left (in West) </li></ul><ul><li>Group like things with lines or boxes </li></ul>
  18. 18. (2b) Developing a Web Site—Functionality <ul><li>Now we know basically how to design GUI and layout…what functions are needed behind the front end? </li></ul><ul><li>Build system to be rapidly adaptable </li></ul><ul><li>Web technologies should be used to do 1-to-1 marketing (before competitor do) </li></ul>
  19. 19. Functionality—Rapidly Adaptable System <ul><li>Changing prices & products </li></ul><ul><li>Competitive offerings—managers should scan the competition…because s/he is being scanned! </li></ul><ul><li>The Web should be scanned to combat bad PR </li></ul><ul><li>New functionality </li></ul><ul><li>Scalability </li></ul>
  20. 20. Functionality—1-to-1 Marketing <ul><li>Five functions available through Web technologies </li></ul><ul><ul><li>(1) Interaction </li></ul></ul><ul><ul><li>(2) Identification </li></ul></ul><ul><ul><li>(3) Tracking </li></ul></ul><ul><ul><li>(4) Differentiation </li></ul></ul><ul><ul><li>(5) Customization </li></ul></ul>
  21. 21. 1-to-1 Marketing—Interaction <ul><li>Web technology enables personal, fast, and useful interaction </li></ul><ul><ul><li>FAQs (to avoid repetition and wasted $) </li></ul></ul><ul><ul><li>Newsgroups (to let customers talk among themselves…corporate representative should take part) </li></ul></ul><ul><ul><li>E-mail (by topic; each answered quickly) </li></ul></ul><ul><ul><li>chat/video (used to meet traditional shopping needs) </li></ul></ul><ul><ul><li>Online surveys (with incentives) </li></ul></ul>
  22. 22. 1-to-1 Marketing—Identification <ul><li>Web technology allows a manager to identify each customer to track and understand </li></ul><ul><ul><li>Login IDs and passwords </li></ul></ul><ul><ul><li>Cookies </li></ul></ul><ul><ul><li>IP addresses </li></ul></ul><ul><ul><li>Digital Certificates </li></ul></ul>
  23. 23. 1-to-1 Marketing—Tracking <ul><li>With unique ID, can get and store data </li></ul><ul><li>Can track every purchase and page view </li></ul><ul><ul><li>Demographic data </li></ul></ul><ul><ul><li>Number of page views </li></ul></ul><ul><ul><li>Sequence of views </li></ul></ul><ul><ul><li>What they bought, what combination, when, for whom </li></ul></ul>
  24. 24. 1-to-1 Marketing—Tracking (cont.) <ul><li>Combine with interactions for valuable info (i.e., interactions can be kept and mined) </li></ul><ul><li>Site can be modified based on satisfaction measures </li></ul>
  25. 25. 1-to-1 Marketing—Differentiation <ul><li>By tracking a company can differentiate </li></ul><ul><ul><li>To treat everyone personally </li></ul></ul><ul><ul><li>To offer pre-selected goods, information, services </li></ul></ul><ul><ul><li>Up-sell </li></ul></ul><ul><ul><li>Cross-sell </li></ul></ul>
  26. 26. 1-to-1 Marketing—Customization <ul><li>A manager can take differentiation one step further and change what is sold… customization! </li></ul><ul><li>A company should look for what it sells and see if it can’t break it into components </li></ul><ul><li>Assemble as needed for each customer </li></ul><ul><li>Easiest for electronic offerings. Harder for physical goods (but being done) </li></ul>
  27. 27. (2c) Developing a Web Site—Hosting Decisions <ul><li>Related to design issue: where does it all live? </li></ul><ul><li>Site can’t live without a host server connected to or owned by ISP </li></ul><ul><li>Should be based on four criteria: reliability, performance, tech support, and price… </li></ul>
  28. 28. Hosting Decisions—Four Criteria <ul><li>Reliability: Site needs to be running (and adaptable) 24/7/365 </li></ul><ul><li>Performance: speed—get 3 rd party measures </li></ul><ul><li>Tech support: Quality? Availability? </li></ul><ul><li>Price: value in combination with above? </li></ul>
  29. 29. (3) Attracting Visitors to a Site <ul><li>A site exists…”so what?” if nobody comes to see it or they never return </li></ul><ul><li>Ways to attract visitors or be “sticky”: </li></ul><ul><ul><li>Promotion tricks to get people </li></ul></ul><ul><ul><li>Suggested offerings to keep them </li></ul></ul>
  30. 30. Attracting Visitors to a Site—Promotional Tricks <ul><li>There are some basic tricks to promote a site to be found </li></ul><ul><ul><li>Affiliate Networks </li></ul></ul><ul><ul><li>Event Marketing </li></ul></ul><ul><ul><li>Choose a good domain name </li></ul></ul><ul><ul><li>Announce site </li></ul></ul><ul><ul><li>Banner ads </li></ul></ul><ul><ul><li>Direct marketing </li></ul></ul>
  31. 31. Affiliate Networks <ul><li>Syndicate content/services on other sites </li></ul><ul><ul><li>Pages can pay to get on portals and hooked in as back end to other resellers </li></ul></ul><ul><ul><li>Can offer channels to allow narrow placement on each </li></ul></ul><ul><li>Can allow front-end customization by resellers </li></ul>
  32. 32. Event Marketing <ul><li>Victoria’s secret shut down the ‘Net </li></ul><ul><li>Attracted with a single ad on TV (albeit with a pretty enticing, well targeted event) </li></ul><ul><li>Company should something unique that can’t be had via other media or won’t be worth download time or trouble </li></ul>
  33. 33. Choosing a Domain Name <ul><li>www.companyname.com if possible </li></ul><ul><li>Well known brand should be able to sue for brand name in URL </li></ul><ul><li>Not well known should choose something close or logical noun ( www.ponies.com and www.chicken.com owned by ISPs—can be bought I am sure) </li></ul><ul><li>Should buy name rights (don’t have registered to ISP) </li></ul><ul><li>Should use other domains which have meaning (.fi gives expectation of Finnish language) </li></ul><ul><li>Should have many names push to a centralized page </li></ul>
  34. 34. Announcing a Site <ul><li>Company should put URL everywhere in other media promotions </li></ul><ul><li>Should put in search engines (register and fix <meta> tag info) </li></ul><ul><li>Should call the press </li></ul><ul><li>Put on business cards and letterhead </li></ul><ul><li>Shouldn’t announce until fully ready!!! </li></ul>
  35. 35. Banner Ads <ul><li>Should exchange banner ad space with other related sites </li></ul><ul><li>Should make banners that don’t annoy, are professional, that use older technology to be compatible </li></ul><ul><li>Shouldn’t be cute…shouldn’t be slow to load…links should be verified to work…shouldn’t be put on slow pages to avoid guilt by association </li></ul>
  36. 36. Direct Marketing—E-mail <ul><li>To spam or not to spam… </li></ul><ul><ul><li>Shouldn’t be done </li></ul></ul><ul><ul><li>Causes bad PR </li></ul></ul><ul><ul><li>Gets more angry responses than sales </li></ul></ul><ul><ul><li>Hard to find good responses in the deluge </li></ul></ul><ul><ul><li>Unethical and possibly illegal </li></ul></ul><ul><li>Alternatives: </li></ul><ul><ul><li>Opt-in e-mails & tasteful signature files </li></ul></ul>
  37. 37. Direct Marketing—Mailing Lists/Newsletters/Discussions <ul><li>Companies should use 1-to-1 marketing to build opt-in mailing lists </li></ul><ul><li>Should create a newsletter and include reasons why people would want them (incentives; valuable info) </li></ul><ul><li>Should get employees involved in discussion groups and provide value to community (and have them sign with their URL there). </li></ul>
  38. 38. Attracting Visitors to his/her Site—Sticky Suggestions <ul><li>There are some basic tricks to keep a customer coming back </li></ul><ul><ul><li>Fresh content </li></ul></ul><ul><ul><li>Free content </li></ul></ul><ul><ul><li>Personal content </li></ul></ul><ul><ul><li>Online/offline content </li></ul></ul><ul><ul><li>Good cross-marketing/cross-selling </li></ul></ul><ul><ul><li>Good search capabilities </li></ul></ul><ul><ul><li>Being a community and interactive </li></ul></ul>
  39. 39. Fresh Content <ul><li>Gives people a reason to come back </li></ul><ul><ul><li>Fresh content of value </li></ul></ul><ul><ul><li>A date on the page convinces customers of freshness and accuracy </li></ul></ul><ul><ul><li>Indicates to employees to update content </li></ul></ul>
  40. 40. Free Content <ul><li>Free information, products, services to all visitors </li></ul><ul><ul><li>Currency rates, news briefs, stock portfolios </li></ul></ul><ul><ul><li>Lotteries, coupons </li></ul></ul><ul><ul><li>Calculators, games </li></ul></ul><ul><li>$34 to get a new customer…it pays to keep them </li></ul>
  41. 41. Free Content – example, MSN Zone Free Internet Gaming Site. Supports game sales but also place for free games. Why? Sticky site. Banners sold to others. Banners for own sites. Requires use of .Net “Passport” to create market for that service (used at Citibank.com and ESPN).
  42. 42. Free Content – example, MSN Zone (cont.) Proprietary client allows control over banners and extended viewing
  43. 43. Personal Content <ul><li>Incentives should be given to identify for tracking </li></ul><ul><li>Related to free content: personalized free information, products, services </li></ul>
  44. 44. Online/Offline Content <ul><li>Offline reading should be supported </li></ul><ul><li>Multiple formats should be offered including downloadable (pdfs) and printable versions (text only) </li></ul><ul><li>Push technologies offered to send customized, new content </li></ul>
  45. 45. Good Cross-marketing/Cross-selling <ul><li>Company should implement a system that effectively promotes related products </li></ul><ul><li>Should collect aggregate data on what else people bought when they bought a good </li></ul><ul><li>Should keep a good database of complementary products </li></ul><ul><li>Should remember what was bought before and lead with an appropriate offer </li></ul>
  46. 46. Good Search Capabilities <ul><li>Everything should be easy and pleasant to find </li></ul><ul><li>Navigation should be tested and streamlined </li></ul>
  47. 47. Be a Community/be Interactive <ul><li>Corporate site can be a destination by being a chat community…should implement discussion groups </li></ul><ul><li>Have employees be a member of the group and give help or suggest interpretations (but need integrity) </li></ul><ul><li>Should make it easy and enjoyable to talk to anyone in the company (with a database for standardized answers) </li></ul>
  48. 48. (4) Global Issues <ul><li>A manager should be aware that everything done can be seen everywhere even if s/he doesn’t mean to sell abroad </li></ul><ul><li>Should target their audience but have content with world audience in mind </li></ul><ul><li>Shouldn’t offend if possible </li></ul><ul><li>Messages, text, icons, etc. may not translate well </li></ul><ul><li>Professional should make sure meaning translates </li></ul>
  49. 49. Global Issues (cont.) <ul><li>Culture is more than just language…culture is a way of thinking </li></ul><ul><li>Applications should be sensitive to local behaviors and beliefs </li></ul><ul><ul><li>Software use </li></ul></ul><ul><ul><li>Time perceptions </li></ul></ul><ul><ul><li>Sense of communities </li></ul></ul><ul><ul><li>Buying norms </li></ul></ul><ul><ul><li>Expectations about service </li></ul></ul><ul><ul><li>Expectations about screen layout </li></ul></ul>
  50. 50. Global Issues (cont.) <ul><li>Locals should make local content </li></ul><ul><li>International laws may apply </li></ul><ul><ul><li>local tax/privacy laws are different </li></ul></ul><ul><ul><li>data entry may need to be customized to allow for relevant local information </li></ul></ul>
  51. 51. Public Relations and Developing a Dark Site <ul><li>Reasons for Crisis Management </li></ul><ul><li>Disaster Recovery </li></ul><ul><li>Digital Complaint Services </li></ul><ul><li>Strategic Planning </li></ul>
  52. 52. Developing a Dark Site - Reasons for Crisis Management <ul><li>Dark site is a secret server set up to replace the regular server to display content in times of crisis </li></ul><ul><li>Help manage legal crisis in real time and on global basis </li></ul><ul><li>Use to limit impact of emergencies & recalls </li></ul><ul><li>Companies turn them on (w/in 30 min) and contact the press </li></ul><ul><li>They should have backups on CD to send to ISPs in emergency in case of problems with primary site </li></ul>
  53. 53. Developing a Dark Site - Disaster Recovery <ul><li>If there is a defect or emergency, the dark site may contain confidential data (product or personal) that needs to go public fast </li></ul><ul><li>Can also be used to counter misunderstanding & rumor </li></ul><ul><li>Gives consumers the company’s side of a story </li></ul><ul><li>Alternatively, consumers will get details from other Web sites (in 1999 there were 20,000 links to www.flamingfords.com even though the issue was resolved in a 1995 recall) </li></ul>
  54. 54. Developing a Dark Site - Online Experience <ul><li>Two outcomes of different responsiveness: </li></ul><ul><ul><li>Intel: Pentium chip bug and Pentium III privacy PR disaster. Both handled badly and slowly and with expensive impacts </li></ul></ul><ul><ul><li>Odwalla: 90% of existing customers still willing to buy their product after E-coli outbreak. Had dark site up in 12 hours. </li></ul></ul>
  55. 55. Developing a Dark Site – Example, Pilgrim’s Pride Lunchmeat (10/14/02) First day of recall, site was given major overhaul to inform customers and soothe investor fears. Links clear on homepage
  56. 56. Developing a Dark Site - Strategic Planning <ul><li>8 steps: </li></ul><ul><ul><li>Regular Risk Audit </li></ul></ul><ul><ul><li>Identify and delegate responsibilities prior to crisis </li></ul></ul><ul><ul><li>Keyword monitoring: can pay service to do this </li></ul></ul><ul><ul><li>Develop crisis manual and put on Intranet </li></ul></ul><ul><ul><li>Develop dark site </li></ul></ul><ul><ul><li>Run crisis simulations (ala fire drills) </li></ul></ul><ul><ul><li>Know who to contact in press and public ahead of time </li></ul></ul><ul><ul><li>Maintain the above to be current </li></ul></ul>
  57. 57. Conclusion <ul><li>Marketing on the Web provides a mechanism for doing business that is unique </li></ul><ul><li>Allows one-to-one marketing with advantages of automated processes and unprecedented information </li></ul><ul><li>The best page is worthless if it isn’t seen </li></ul><ul><li>Global availability of Web applications offers new opportunities and concerns </li></ul>