Transcript File

Chapter 4:
Marketing on the Web
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)
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Product-Based Marketing Strategies
• The product-based strategy views the world from
the perspective of the firm and its products
– For example, stores believe customers organize their
needs into product categories and they organize their
sites accordingly
– Graduation gift vs something specific
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Customer-Based Marketing
Strategies
• How do you build a customer-based
marketing strategy?
– Basic approaches start by identifying groups
of customers who share common
characteristics*
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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
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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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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
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Advertising on the Web
Terms and Concepts
• 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
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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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Advertising on the Web
Terms and Concepts
• 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
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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
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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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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
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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
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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
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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
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