Week 3: Issues of Internet Marketing

1. Week 3: Issues of Internet Marketing Virginia F. Kleist, Ph.D. MANG 493L

2. Objectives • Internet marketing is very different than traditional marketing • Need to understand your market and your customer • Must design effective ways to market to this customer in the new media • Last week, strategic advantage through electronic commerce in B2B and B2C applications, use of internet in value chain and transactions processing • This week, build a special relationship with your customer via internet marketing

3. Info overload Search engines only find 40 percent of web Scarcity of attention How to attract attention of customers in vast “landscape” of the internet? Business under increased pressure from competition Use customer name Marketing tools Manipulate search engine database Ads Webcasting PR Partnership with customer Global views Challenges and Solutions

4. Issues of Internet Marketing (based largely on class text, Amor, 2002, Chpt. 5, plus some input from Turban, et al., 2000, and Neitel, et al., 2000) • Marketing strategies on the web • Web Design • Attracting visitors to your site • Virtual Societies • Localization • Promoting your e-business • Banner ad campaigning • Online Measurement • One to one marketing • Direct marketing • Internet access

5. Internet Marketing Technologies • New, new business • Fastest growing medium in history • What is the marketing model here? • Who to target? • Mix traditional marketing with electronic marketing • What do consumers buy on the web? • Customers are not limited or bounded as they are with newspapers or TV, can jump from site to site

6. What is different about internet marketing? • Enhanced communication with customer • Available and robust communications • Unlimited competition for eyeballs • Customers can bypass shop and talk directly to manufacturer • Ads in real time on desktops of target group • More dangers in web than other media, too

7. Market research on the web (from Neitel, et al, 2000) • Traditional market research uses focus groups, interviews, surveys, questionnaires, and secondary research • Internet provides a faster option for both customer and competitor research • Has anonymity • Can conduct cheaper research • Find things out in curious ways, such as “cookies” or attached files that help track surfer’s movements

8. Market research on the web (from Neitel, et al, 2000) • Research current trends before beginning strategy (www.forester.com, www. Jup.com, www.mediametrix.com) • Run ad counters, collect data • Technologies exist to capture customer data (www.atplan.com, www.goglobal.com)

9. Brand the website like any other media, co- brand other products and services Changing rules Concise, keep short Content is king Dynamic sites New markets with lower advertising schemes Give away free stuff Think globally, but deploy as if locally Online events work Internet as series of niche markets Promote site elsewhere Use internet to maximize full marketing objectives Marketing strategies on the web

10. Web Design • Cohesive, internal plan • Give users content • Limit info on a page • Instant, understandable, accessible, simple, let them create own sequences • Be consistent • Break up content into little pieces • Small graphics

11. Web Design • Use feedback and online surveys • FAQs, such as eBay (60,000 inquiries per week) • Set corporate rules for web sites, email • Navigational aids, portal concept, site maps • Limit file sizes • Prepare to deliver content to network appliances

12. Email marketing (Neitel, et al, 2000) • Fast, cheap, reaches many customers • Gets there even when they are gone • Less intrusive than phone • Global business translates emails • Define reach, personalization, measure • Use email with traditional marketing • Can outsource this function • Watch issues of opting in and out, spam

13. Attracting visitors to your site • Special promotions (Victoria’s Secret) • Cool content people wish to see or read • Free information • Personalize • Support online and offline reading • Cross marketing and cross selling • Actively watch for change in this medium

14. Virtual Societies • Syndicate content or technologies to other media or sites, appear on a portal, affiliate marketing • Global village, target narrow group such as webgrrls • How to achieve critical mass? • Put up contact addresses in the site so people can reach you

15. Localization • Although can use internet globally, we do not live in a global society. • National, regional norms and cultures • Translate or not to translate? • Format of dates? • Currency? • Black in US is sophisticated, black in China means death • Localize each web site?

16. Issues of Cultural Differences • Chinese language translation not easy from English • Germans served and pay when leaving, Italy, pay first then order, Ireland pay first then order immediately • Disney didn’t export well to France • Languages, sorting orders, numbers, dates, quotations all differ by country, thus on web sites as well • What to do with the dog? • Babelfish translator

17. Promoting Your eBusiness • Want top level domain (TLD) name: spaghetti.com, spaghetti.de for Germany, spaghettiinc.tw for Taiwan • Check www.InterNic.com for US domain names, www.ripe.net for Europe domain names, www.apnic.net for Pacific rim • Announce the site, register with directories • Be ready before launch • Have consistent strategy

18. Banner ad Campaigning • Banner ads are small billboards • Banner exchange sites allow free exposure • Banner selling exchanges • www.adbility.com, www.doubleclick.com • Effectiveness is declining • Technology allows overriding of banners • Pop up ads new approach

19. Online Measurement • Three tracking methods: counting numbers of user activity, auditing where trusted third party measures effectiveness, and rating by customers • How do you count one user? (spiders, copies of web pages, proxy servers) • Log file analyzer • Online rating agencies • Third party auditing

20. Webcasting and Interactive Media (Neitel, et al, 2000) • Streaming media to broadcast over web • www.streamingmedia.com • People have slow connections • Bursting • Interactive advertising involves users in the advertising process www.nike.com, webRIOT, a game show on MTV

21. Public Relations on Internet (from Neitel, et al., 2000) • PR keeps customers up on latest info • Methods include chat sessions, bulletin board, special events, trade shows, press releases, video clips • Effective for crisis management, have a dark site, egghead.com for emails, Swissair for a cras, Enron was discussed on investment sites

22. One to one Marketing • Differentiation via technology (identify your customer via cookies or login, use interactive chats, email, meet the needs of the customer) • Develop customer relationships (call handling, sales tracking, transaction support, more personalized web experiences, call centers) • CRM providers: www.egain.com, www.kana.com, www.ephiphany.com, allows you to collect data on customers and visitors • Advanced personalization technologies zip code analysis, collaborative filtering, learning agents like Amazon

23. Direct Marketing • Don’t misuse the internet • Spam • Don’t sell lists • Privacy is important • Use one to one marketing to gain information • Opt in, opt out policies • Mailing lists and newsletters

24. Internet Access • Need to choose a domain name, .com, .net, .org, .edu • Easy to remember • Choose a reliable, high performing, reasonably priced ISP with good tech support • Evaluate connection speed • Keep costs low • Register domain name, register. Com or domain-it.com