Transcript Website Marketing

Website Marketing
and Design
Poitiers, September 23-27
Session 1 - Introduction to the
Internet, Web and eCommerce
1
Introduction to Course
• Tom Leuchtner - Instructor
• Course Topics:
– Web/Internet Marketing
– Practical Aspects of Commerce on the Web
– Web Design
• All information can be found on web:
http://www.leuchtner.com/course2002
• Program for week
• Questions?
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Web Marketing
•
•
•
•
The Original WWW
Web and Marketing
Stages of Web Publishing
Break
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The Original WWW
• It’s 1922
• Radio suddenly transitions from a technology used
primarily by the military and the shipping industry to a
consumer and business phenomenon
• At the end of 1921, there are 5 radio stations
• A year later, there are 575
• Starting radio stations is the height of
entrepreneurship
• Listening to radio is a runaway consumer fad
• “Combing the ether” is the hit of the day
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The Original WWW
• Radio’s impact on 1920s society
– It changes the way people think about distance and
time
– Simultaneity no longer requires proximity
– Global events are experienced as they happen
– Performances in different cities can be heard in
the neighbor’s living room
– Fast-breaking world stories and even the local
weather are available at the flip of a switch and
the turn of the dial
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The Original WWW
• Radio changed business, especially marketing
– It accelerated the economy’s transition to a mass market
– It facilitated the creation of national brands
– Firms could launch national marketing campaigns
simultaneously
– New product store introductions could be synchronized with
ad campaigns to build consumer interest
– Product positioning became more flexible
• Businesses learned to use this new, powerful method
of reaching customers
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The Original WWW
• As an industry, radio struggled with
generating a self-sustaining revenue base
– In 1926, radio stations were failing at a rate of
15% per month
– Consumers still rushed to buy radios
– Ultimately, national networks of stations emerged
– A combination of national and local advertising
made radio profitable
• Internet marketing shows many of these same
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The Real World Wide Web
• The Internet changes the way companies
connect to their customers
• It expands the opportunities for branding,
innovation, pricing, and selling
• It leads to new ways of thinking about time
and distance
• It opens up new distribution channels and
markets
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Virtuous Web Cycle
• Is a business system with positive feedback
• Each element in the business system feeds
off another element in the system and feeds
into yet another element in the system
• If the cycle is strong enough, it can actually
be a self-fulfilling expectation
Huh?
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Virtuous Cycle for Net Growth
Let’s look at how it works
Consumer
and
Business
Internet
Access
Web Sites
and Web
Content
Popular
Fascination
• It starts with user
fascination
• Providers see the
developing opportunity and
rush to create new brands
& services, which creates
more hype
• The buzz feeds back into
consumers’ interest and
desire to experiment with
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the
new
technology
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A Dot Com World
• The virtuous Web cycle leads to rapid
growth of
– Consumer access
– Internet usage
– Content online
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Consumer Access
Figure 1.4
• The past five years have
seen rapid growth in
Growth of World Wide Web Domains
– Network size
– Users on networks
– Network activity
50
46% growth in 1998
30
20
10
99
1/
98
1/
97
1/
96
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0
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Millions
• Between January 1994
and January 1999,
Internet hosts grew from
2.2 million to over 43
million
• A 46% growth rate in
1998
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Online Access Growth in12 Net
Hosts
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Consumer Access
• The Internet user base has
grown rapidly as well
• Worldwide, the number of
users was estimated to be >
160 million in March, 1999
• Over 90% of the users on
the Net have joined in the
last 5 years
• More growth is possible, as <
4% of the world’s adult
population is online
• 50% of users think the Net
is a “necessity”
Figure 1.5
HOW MANY ONLINE?
The art of estimating the
number of people online
throughout the world is
inexact. An “educated
guess” as of May 1999 is
165 million.
Source: NUA
Worldwide Online Population
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– Continuing Fascination
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Consumer Access
• Spring 1998, the size of the
Web was estimated at 300
million pages
• Growth rates in content
exceed growth rates in Web
access and the number of
users
• From June 1997 to March
1998, Web content grew at
120%
• More importantly, the types
and creativity of Web site
content have blossomed
Figure 1.6
Size in millions of distinct static pages
0
Pages found in all 4
engines
50
100
150
200
250
300
1
2
2
Infoseek
16
25
35
Excite
28
30
33
1997
1998
1999
42
80
HotBot
100
35
Alta Vista
Pages found in at least
one of the four engines
100
110
90
160
195
125
Size of static web
200
Rapid Growth in Web
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Content
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Stages (or Generations) of
Websites
• Stage I: Publishing sites
• Stage II: Databases and Forms
• Stage III: Personalization
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Stage I: Publishing Site
Info Links
Pictures/Information
http://www.france98.com/french/index.html
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Stage I
What makes this a Stage
Website ?
I
Organises, Broadcasts and
Disseminates Information
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Stage II: Databases and Forms
To find out the travel distances between the host cities:
Select your starting point
Select your destination
Bordeaux
Paris
Toulouse
Marseilles
Toulouse
Marseille – 404km
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Stage II
What Makes this a Stage
Website?
II
Ability to retrieve information to
respond to user requests
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Stage III: Personalization
If you area team WC98
member and are using a
computer other than the
one you originally joined
WC98, enter your
nickname and password
now.
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Stage III
What Makes this a Stage
Website?
III
More than ask-respond
Anticipates
Suggests
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Website Marketing
and Design
Poitiers, September 23-27
Session 2 – The Web and
Marketing, Intro to eCommerce
1
Web Marketing
• Marketing Principles on the Web
• Online Consumer Behavior
• eCommerce
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The Dell Triangle: Figure 4.1
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Online Marketing
– personalization
– community building
– real-time marketing
Communication Drives Usage
Customer Contacts
• Direct interaction
creates customer value
and sets the stage for
relationship building
• This creates
opportunities for
Figure 4.2
Interactivity
Customers use sites more
as companies add more
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Online Behavior & Interactivity
• Interactivity depends on
– Direct communication
– Individual choice
– Friendly technology
• Let’s take a look at each of these
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Direct Communication
From Broadcast to Dialogue
Figure 4.3
One-to-Many Broadcast
(same message to all)
Direct Targeting (one
direction, different messages)
One-to-One Interactive
(unique messages to
individuals)
• Dialogue is possible when there’s direct
communication between marketer and customer
– Intermediaries can filter or block feedback
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Comparing Communication Methods
• Hoffman & Novak (1996): Compared traditional
and online communication methods
• They looked at
– Communication model: one-to-many  one-to one
– Media symmetry: is the information flow symmetric?
– Media content: use of text, images, audio, video
– Diversity of information: the number of information
sources available through the medium (billboards vs.
cable TV or the Web)
– Communication timing: synchronous vs. asynchronous
– Personal interactivity: person-to-person vs.
machine-mediated
interaction
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Comparing Communication Methods
• The Web is a
flexible
technology
• It’s evolving into
a personal and
dynamic
communication
medium
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Figure 4.4
Individual Choice
Selection + Suggestion = Value
• The modern economy presents a staggering
amount of variety
– Typical supermarkets contain 25,000 different
items
– Variety expands even further without the physical
constraints of inventory and shelf space
• Choice is confusing without a way to compare,
evaluate & select among the huge number of
possibilities
– New technologies combine selection and suggestion
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– Enable consumers to
more effective choices
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Impact on Consumer Choice
Selection
Suggestion
 Shopping on demand
 Greater value
consciousness
 Power shift to
consumers
 Personalization
 Customization
"Friction-Free Capitalism"
 Automation of
consumption
"Captive Consumers"
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Friendly Technology
Technology is technology only if it was
invented after you were born
• Televisions, radios, telephones, and VCRs have
market penetrations > 85%
• The Web must become even easier & friendlier
to reach the 98% household penetration of TV
• As Web access devices becomes more
appliance-like, increasing numbers of
consumers will be online
• Internet marketers must understand consumer
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Web Stage and User Challenges
• The easiest type of online
consumer activity is when loyal
and experienced users perform
simple tasks
• More complicated tasks require
marketers to develop better
user interfaces
• More risky transactions
require marketers to establish
trust and pay attention to
customer needs
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Figure 4.6
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Online Consumer Behavior
The Media Equation
Media = Real Life
Byron Reeves & Cliff Nass
• Users relate to virtual information in many of the
basic social ways they interact with people in their
everyday lives
• Users treat machines and software like people
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Online Consumer Behavior
Why Are There
Social Responses
to Information
Technology?
• The human brain
isn’t well adapted
to 20th century
media
• New media is
engaging old brains
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Online Consumer Behavior
Simple
Technological
Features Can
Elicit Strong
Social Responses
• Manners are critical in
online & computer
messages
• Good Manners = positive
responses
• Behavior that is
considered rude in real
life is considered rude
onscreen
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Online Consumer Behavior
Social Cues
• E-mail lacks the social cues that a phone
conversation or a face-to-face meeting provide
• Misunderstandings develop more easily because
people it’s harder to judge confusion
– People don’t get the signals that make them stop and
explain themselves in face-to-face discussion
• People tend to use stronger language and
express themselves more frankly
• And they tend to circulate their thoughts to a
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much wider audience
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Online Consumer Behavior
Cognitive Difficulty
• One of the challenges of providing online
information is making it accessible to users
• Providing effective search functionality is key
• Site developers must understand how their
users are likely to search and browse
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Who’s Online?
• High income
• Above average education
• Heaviest users: 30-49 years old
– students & kids also online
– seniors & older middle-aged less likely
• Gap between male & female is closing
• US dominates
– wealthiest European & Asian countries
coming online quickly
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As Time Passes
• More people online
• More people connecting at higher speeds
• More people using the Web to shop and
transact business
– >40% of those with 4+ years experience on the
Web regularly shop and conduct Web commerce
– as opposed to only 12% of people who have
been online for <1 year
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eCommerce
• Introduction to eCommerce
• eCommerce Overview
• eCommerce Terminology
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How Companies Organize Net Activities
•Visible to the public
•Managed by marketing
•Visible to suppliers and Bto-B customers
•Supply chain management
•Managed by marketing and
logistics
•Internal to a company
•Available only to employees
•Often managed by HR
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eCommerce (EC) Definition
• Ecommerce is any form of business
transaction in which the parties interact
electronically rather than by physical
exchanges or direct physical contact
• It is one of those rare cases where
changing needs and new technologies come
together to revolutionise the way in which
business is conducted
European Commission (1997)
http://www.ispo.cec/be/Ecommerce/whatis.htm
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Ecommerce Terminology
E-Business
Business
Partners
EProcurement
E-Commerce
Enterprise
Extranet
Business-to-Business
Intranet
Internet
Customers
Business-to-Consumer
Consumer-to-Consumer
workers
Associations
E-Government
Citizens
• ECommerce
– Using Information Technology to support external business
processes (eg marketing/selling products &/or services)
• EBusiness
– Supporting both
and
external
business processes
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It includes at least the following
• The exchange of goods & services across an
interactive digital network
• A computer-mediated & virtual market with
new relationships among businesses and
consumers
• A digital means of exchange (digital money,
ecash, secure credit card transactions)
• The increasing importance of digital information
as a commodity
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eBusiness model
• Covers the support of the processes &
relations between business partners, coworkers and customers by electronic
media
Business Partners
Extranet
Enterprise
Internet
Customers
Intranet
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eCommerce
• Is that part of the eBusiness which is
aligned to the negotiation and settlement
of obligatory business transactions.
Information
Agreement
Knowledge
Informing
Settlement
Intention
Goal Definition
Negotiating
Execution
Example:
Part 1 -http://www.amazon.com/
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Further e-terms
• E-Procurement
– the electronic support of the procurement
processes (purchase) of an enterprise
• E-Marketing
– the electronic support of the sales &
marketing (and services) processes of an
enterprise
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A Revolution?
• Traditional commerce:
– Physical product: a tangible, material object
– Physical process: interactions between
buyers, sellers, producers
– Physical agent: People in a storefront
• eCommerce:
– Digital product: a digital object
– Digital process: interactions between buyers,
sellers, producers online
– Digital agent: web storefront
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An Ecommerce (EC) manifesto:
• Organisations must change to take
advantage of EC opportunities
• Organisations must take EC into account
when developing strategy
• EC is the strategic perspective that all
firms must adopt, now & in future
• An organisation that does not explicitly
consider EC as a strategic imperative is
making a critical error
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EC evolution in waves
First Wave Traditional EDI
place orders
shipment
notification
invoicing
examine inventory
availability
pre-established
business partners
Second Wave Electronic Commerce
Elements in 1st wave
plus
electronic shopping
banking and financial
institutions
transacting with virtual
strangers
increased information
sharing
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Third Wave - A New
Electronic Society
Elements in 2nd wave
plus
cashless transactions
high transaction integrity
widespread use of
intelligent agents
continuous testing
agents
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EC Could Be Seen As:
Economic Aspects
Ecommerce as Business Model
E-Business- Ecommerce Concept
Relevance
Ecommerce-StrategyVirtual Transaction
Communities
Processes
Network
EC-Platforms
Marketing
EC-Applications
Intranet
Pagination
Extranet
Visualizing
Architecture
Screens
Dialogs
Technical Aspects:
Information and TeleCommunications
User Guides
Media Aspects:
Multimedia-Design
and User Interaction
Style and Tone
Programming
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Levels of eCommerce
Company
promotion
National
Electronic
distribution
Pre/post sales
support
Electronic
presence
International
Electronic
distribution
National
payment
Sales/
Simple
transactions
‘Standard’, simple,
Many instances
International
payment
Shared business
processes
‘Custom’, complex,
Few instances
http://www.ispo.cec.be/ecommerce/introduc.htm
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So, EC world is Interdisciplinary
• Consumer behaviour
& psychology
• Accounting &
auditing
• Production/Logistic
• Information systems
• Business ethics
•
•
•
•
•
•
Management
Business law
Marketing
Finance
Economic
Computer sciences
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Producing typical career profiles
• Generalist
– eBusiness-responsible person (integration of
the divisions)
– Project manager eCommerce
– Sales manager eCommerce Products
– Director/conductor of a special product group
(e.g. Smartcards)
• Specialist
– Web designer / Web master
– Web editor
– Internet Service Provider
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Examples
• www.ebay.com – person to person EC
• www.amazon.com - retail
• www.yahoo.com - ecommerce portal
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Website Marketing
and Design
Poitiers, September 23-27
End of Sessions 1-2:
LUNCH!
1