Chapter 4: Marketing on the Web

panicyfewInternet and Web Development

Nov 18, 2013 (3 years and 9 months ago)

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Chapter 4:

Marketing on the Web

2

Objectives

In this chapter, you will learn about:


When to use product
-
based and customer
-
based marketing strategies


Communicating with different market segments


Customer relationship intensity and the customer relationship life cycle


Using advertising on the Web


E
-
mail marketing


Technology
-
enabled customer relationship management


Creating and maintaining brands on the Web


Search engine positioning and domain name selection

3

Web Marketing Strategies


Four Ps of marketing


Product


Physical item or service that the company is selling


Price


Amount a customer pays for the product


Promotion


Any means of spreading the word about the product


Place


Need to have products or services available in
different locations

4

How do you reach customers?


Identify groups of potential customers


Select the appropriate media


Build the right message (write to your reader)


Content (e.g., product presentation)


Context (e.g., trust)

5

Customer
-
Based Marketing
Strategies


How do you build a customer
-
based
marketing strategy?


Rudimentary approaches start by identifying
groups of customers who share common
characteristics

6

Market Segmentation


Market segmentation is dividing the pool of
potential customers into segments and
targeting specific portions of the market with
advertising messages


Segments are usually defined in terms of
demographic characteristics


Micromarketing is a term suggesting that we can
target very small market segments

7

Market Segmentation


Geographic segmentation: Where are they?


Demographic segmentation: Income, race,
education, etc.


Psychographic segmentation: variables
such as social class, personality, or lifestyle



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Geographic Segmentation

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10

Trust and Media Choice


The Web is an intermediate step between mass
media and personal, FTF, contact


Companies can use the Web to capture some of the
benefits of personal contact, yet avoid some of the
costs inherent in FTF customer management


Trust is often related to proximity

11

Product
-
Based Marketing Strategies


The product
-
based strategy views the world from
the perspective of the firm and its products


For example, stores such as
Staples

and
Sears

believe customers organize their needs into product
categories and they organize their sites accordingly

12

Beyond Market Segmentation:

Customer Behavior and Relationship Intensity


Behavioral segmentation: Creation of separate
experiences for customers based on their behavior


Occasion segmentation: Behavioral segmentation based
on things that happen at a specific time


Usage
-
based market segmentation: Customizing visitor
experiences to match the site usage behavior patterns of
each visitor

13


Beyond Market Segmentation:

Customer Behavior and Relationship Intensity


Behavior
-
based categories include:


Simplifiers like convenience


Surfers use the Web to find information and explore
new ideas


Bargainers are in search of a good deal


Connectors use the Web to stay in touch with other
people


Routiners return to the same sites over and over
again

14

Customer Relationship Intensity
and Life
-
Cycle Segmentation


One goal of marketing is to create strong
relationships between a company and its
customers


Good customer experiences can help create an
intense feeling of loyalty


Touchpoints


Online and offline customer contact points


Touchpoint consistency: provide similar levels and
quality of service at all touchpoints

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16

Acquisition, Conversion, and
Retention of Customers


Acquisition cost


Money a site spends to draw one visitor to the site



Conversion


Converting a first
-
time visitor into a customer


Conversion cost: the cost of inducing one visitor to
make a purchase, sign up for a subscription, or
register


Retained customers


Customers who return to the site one or more times
after making their first purchases

17

Customer Acquisition, Conversion,
and Retention: The Funnel Model


Funnel model: Used as a conceptual tool to understand the
overall nature of a marketing strategy that is similar to the
customer life
-
cycle model

18


Banner ad


Small rectangular ad


Interactive marketing unit (IMU) ad formats


Standard banner sizes


Banner exchange network


Coordinates ad sharing


Banner advertising network


Acts as a broker between advertisers and Web sites
that carry ads

Advertising on the Web

Terms and Concepts

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Advertising on the Web

Terms and Concepts


Cost per thousand (CPM)


Pricing metric used when a company purchases mass
media advertising


Trial visit


First time a visitor loads a Web site page


Page view


Each page loaded by a visitor


Impression


Each time the banner ad loads

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Pop
-
up ad


Appears in its own window when the user opens or closes a
Web page


Ad
-
blocking software


Prevents banner ads and pop
-
up ads from loading


Interstitial ad


When a user clicks a link to load a page, the interstitial ad opens
in its own browser window


Clickstream


Information (e.g., page visits, duration, etc.) that a Web site can
gather about its visitors

Advertising on the Web

Terms and Concepts

23


Site Sponsorships


Advertisers are given an opportunity to
sponsor all or part of a website.


Helpdesk.com

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E
-
Mail Marketing


Dangerous Territory or Priceless
Opportunity?


Email is cheap! But, customers hate spam


How should a firm use email?


Opt
-
in e
-
mail is should be the rule.


Conversion rates are higher and complaints are fewer


Combine email content with appropriate, targeted
ads

25

Technology
-
Enabled Customer
Relationship Management


Customer relationship management (CRM):
processes and technologies used to manage
relationships with clients


Relationship management: collecting, managing, and
analyzing information about a customer’s behavior,
buying patterns, etc., and

using it to customize the
interactions with the customers

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Creating and Maintaining
Brands on the Web


Elements of branding include:


Differentiation: How is our product unique?


Relevance: How does our product fit into our
customers’ lives?


Perceived value: What is value of our product to a
potential customer?

29

Emotional Branding vs.
Rational Branding


Emotional branding is the norm; let’s make customers feel good
about our product, themselves as users of our product, or others
affective paths to persuasion


Coca Cola video game ad

(1
st

QTR)


Rational branding relies on the cognitive appeal of the specific
service offered, not purely on a broad emotional appeal


Toyota Tundra truck ad

(1
st

QTR)


Brand Leveraging is done to extend the image or value of a
successful brand to other product offerings


Sprint Broadband ad

(2
nd

QTR)


Nationwide Insurance ad

(3
rd

QTR)

30

Affiliate Marketing Strategies


Affiliate marketing


One firm’s Web site includes descriptions, reviews,
ratings, or other information about a product that is
linked to another firm’s site


Affiliates receive compensation from the selling site’s
brand in exchange for the referral


Cause marketing is a type of affiliate marketing program that
benefits a charitable organization

31

Viral Marketing Strategies


Relies on existing customers to tell other
people about products or services they
have enjoyed using


Example:


Blue Mountain Arts


Woot


gmail

32

Search Engine Positioning and
Domain Names


Search engines have 3 major parts:


Spiders, crawlers, or robots


Programs that automatically searches the Web


Index or database


Storage element of a search engine


Search utility


Uses terms provided to find Web pages that match

34

Search Engine Positioning and
Domain Names


Search engine positioning or search
engine optimization is the process of
tuning a site so that it is listed in the top 10
of results

35

Paid Search Engine Inclusion
and Placement


Paid placements involve purchasing a top listing
on the results pages for a particular set of
search terms


e.g., Google Adwords


Search engine placement brokers are
companies that aggregate inclusion and
placement rights on multiple search engines


36

Web Site Naming Issues


Domain names


An important part of selling online can be the
domain name for the site.


If you want a car, might you give
cars.com

a try?


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URL Brokers and Registrars


URL brokers


Sell, lease, or auction domain names


ICANN


Maintains a list of accredited registrars


Domain name parking


Permits the purchaser of a domain name to maintain
a simple Web site so that the domain name remains
in use

39

Summary


Four Ps of marketing



Product, price, promotion, and place


Market segmentation


Using geographic, demographic, and
psychographic information can work well on
the Web


Types of online ads


Pop
-
ups, pop
-
behinds, and interstitials

40

Summary


Technology
-
enabled customer relationship
management can provide better returns for
Web businesses


Firms on the Web can use rational branding
instead of emotional branding techniques


Critical for many businesses is successful
search engine positioning and domain name
selection