Creating a Winning E-Business Second Edition

1. Creating a Winning E-BusinessSecond Edition Marketing Your E-Business Chapter 6

2. Learning Objectives • Describe the marketing mix • Explain the importance of branding • Describe primary and secondary market research • Create a marketing plan • Identify marketing tools Creating a Winning E-Business Second Edition, Chapter 6

3. Marketing Mix • Marketing is process of developing mutually satisfying relationships with customers • Four Ps in the classical marketing mix • Product • Place • Price • Promotion Creating a Winning E-Business Second Edition, Chapter 6

4. Price Product Place Promotion Marketing Mix (continued) Creating a Winning E-Business Second Edition, Chapter 6

5. Marketing Mix (continued) • Marketing mix from customer’s viewpoint • Four Cs marketing mix model • Customer needs and wants • Convenience • Communication • Cost to customer Creating a Winning E-Business Second Edition, Chapter 6

6. Price Product Place Promotion Marketing Mix (continued) Creating a Winning E-Business Second Edition, Chapter 6

7. Building Your Brand • A brand • Incorporates customers’ perceptions of and experiences with a business • Combination of name, logo, and design that identifies a business’s products and services in consumers’ minds • Trusted brand can drive sales Creating a Winning E-Business Second Edition, Chapter 6

8. Building Your Brand (continued) • Define how you want products/services perceived by customers • Understand core elements of e-business • Differentiate core elements from competitors’ core elements • Identify how products/services meet customers’ needs • Decide how to convince customers that products/services best meet their needs Creating a Winning E-Business Second Edition, Chapter 6

9. Building Your Brand (continued) • Discover words, phrases, images to put best public “face” on business • Brand names • Simple • Easy to remember, spell, and understand • Have “snap” • May be a proper name or use personification • Coca Cola, Dell Corporation Creating a Winning E-Business Second Edition, Chapter 6

10. Building Your Brand (continued) Creating a Winning E-Business Second Edition, Chapter 6

11. Building Your Brand (continued) Creating a Winning E-Business Second Edition, Chapter 6

12. Building Your Brand (continued) • Domain name (URL) and branding • Address associated with a Web page • Can be used to help build a brand • Single- and common-word domain names largely already taken • Office.com, Business.com • May be too generic for successful branding Creating a Winning E-Business Second Edition, Chapter 6

13. Building Your Brand (continued) • Use creative “brainstorming” to develop brand name • Create list of words or phrases and combine them in creative ways • Ask for help from friends, family, advisors • Pay for professional help in developing brand name • The Namestormers, NameLab Creating a Winning E-Business Second Edition, Chapter 6

14. Building Your Brand (continued) Creating a Winning E-Business Second Edition, Chapter 6

15. Building Your Brand (continued) Creating a Winning E-Business Second Edition, Chapter 6

16. Building Your Brand (continued) • Domain name (URL) registration • Managed by ICANN for the U.S. Dept. of Commerce • Top-level domains identify the general category in which a domain name is registered Creating a Winning E-Business Second Edition, Chapter 6

17. Building Your Brand (continued) Creating a Winning E-Business Second Edition, Chapter 6

18. Building Your Brand (continued) • Domain name (URL) registration (continued) • ICANN contracts with accredited registrars • Accredited registrars process requests for new domain names • Network Solutions • GoDaddy • Register.com Creating a Winning E-Business Second Edition, Chapter 6

19. Building Your Brand (continued) Creating a Winning E-Business Second Edition, Chapter 6

20. Building Your Brand (continued) • Brand names, domain names, trademarks are becoming more interchangeable • Make certain a URL does not infringe on the brand or trademark of an existing company Creating a Winning E-Business Second Edition, Chapter 6

21. Market Research • Collecting and analyzing data to make business decisions • Primary research • Uses quantitative or qualitative methods to physically collect and analyze data and then publish the results • Market research company examples • NPD Group • Forrester Creating a Winning E-Business Second Edition, Chapter 6

22. Market Research (continued) • Secondary research • Collects data from secondary sources who have already performed the primary research • Resources for secondary research • Reports published by market research companies • Industry white papers • Government databases • Trade associations • Professional journals Creating a Winning E-Business Second Edition, Chapter 6

23. Creating a Marketing Plan • Provides the details for the marketplace analysis section of a business plan • Plan elements • Executive Summary • Situational Analysis • Objectives, Strategies, and Tactics • Budget and Performance Measures Creating a Winning E-Business Second Edition, Chapter 6

24. Creating a Marketing Plan (continued) • Executive Summary section • Summarizes overall plan • One to three pages • Should be written last Creating a Winning E-Business Second Edition, Chapter 6

25. Creating a Marketing Plan (continued) • Situational Analysis section • Explains what is known about the marketplace • Market size • Market segments • Target market • Competition • Products and services overview Creating a Winning E-Business Second Edition, Chapter 6

26. Creating a Marketing Plan (continued) • Objectives, Strategies, and Tactics section • Objectives describe marketing mission • Strategies identify what is to be accomplished • Tactics detail how it will be done Creating a Winning E-Business Second Edition, Chapter 6

27. Creating a Marketing Plan (continued) • Budget and Performance Measures section • A budget estimates the cost of the plan • Performance measures evaluate the results of plan implementation Creating a Winning E-Business Second Edition, Chapter 6

28. Marketing Tools (continued) • Search engine optimization (SEO) • Build Web pages that are easy to index by search engines • Write clear and on-topic Web page text • Use descriptive page titles • Avoid frames and dynamic content • Use text navigation links • Arrange for relevant inbound links • Use meta tags Creating a Winning E-Business Second Edition, Chapter 6

29. Marketing Tools (continued) Creating a Winning E-Business Second Edition, Chapter 6

30. Marketing Tools (continued) • Public relations effort • Establishes and maintains a company’s public image • Timely press release is a cost-effective marketing tool • Good idea to work with a PR professional Creating a Winning E-Business Second Edition, Chapter 6

31. Marketing Tools (continued) • Online advertising (continued) • Rich media ads • Interactive elements, Flash technologies, streaming media • Shoshkele and streaming media ads • Permission-based marketing • Opt-in e-mail or newsletters • Double opt-in process verifies recipient voluntarily receives messages Creating a Winning E-Business Second Edition, Chapter 6

32. Marketing Tools (continued) • Online advertising (continued) • Search tool or portal advertising • Featured placement at other Web sites • Pay-per-click search tool ads • Featured placement in search results lists • Featured placement on same page as search results list • Based on relevant search keywords • Yahoo!, Search Marketing, and goClick.com Creating a Winning E-Business Second Edition, Chapter 6

33. Marketing Tools (continued) • Link exchanges • Exchange links with Web sites to boost link popularity • Drive new customers to Web site and improve SEO • Beware of link farms and link stuffing • Newsgroups and Web-based forums • Participation in can indirectly promote a business Creating a Winning E-Business Second Edition, Chapter 6

34. Marketing Tools (continued) • Word of mouth (viral marketing) • Electronic word of mouth exploits the network effect and viral marketing • Business blogs • Put a “human face” on a business • Way to keep tabs on what customers, potential customers, and competitors are thinking and saying • Provide valuable feedback on products and services Creating a Winning E-Business Second Edition, Chapter 6

35. Marketing Tools (continued) • RSS and Podcasting • Syndication of Web page content or audio using XML technologies • Affiliate programs • Arrangement in which an e-business pays a fee or commission when a customer clicks through from another site and makes a purchase Creating a Winning E-Business Second Edition, Chapter 6

36. Marketing Tools (continued) • Web rings • A group of similar e-businesses linked together in a circular “chain” • Visitor can click through from site to site in the chain • Awards • Can give a startup e-business more credibility in the marketplace Creating a Winning E-Business Second Edition, Chapter 6

37. Chapter Summary • Marketing is the process of developing mutually satisfying relationships with customers • Classic marketing mix model consists of the Four Ps: product, place, promotion, and price • A brand is a name or logo that identifies a product or service in consumers’ minds • A domain name (URL) can be a tool for building a brand Creating a Winning E-Business Second Edition, Chapter 6

38. Chapter Summary(continued) • Market research involves collecting and analyzing data using primary or secondary research • A marketing plan provides details for the marketplace analysis portion of a business plan • Executive Summary • Situational Analysis • Objectives, Strategies, Tactics • Budget and Performance Measures Creating a Winning E-Business Second Edition, Chapter 6

39. Chapter Summary(continued) • Online marketing tools • Search engine optimization (SEO) • Online ads and opt-in e-mail/newsletters • Search tool and portal advertising • Link exchanges and online forums • Business blogs, RSS feeds, affiliate programs • Web rings • Traditional marketing tools • Radio, TV, print ads, public relations Creating a Winning E-Business Second Edition, Chapter 6