Transcript Banner Advertising Cont`d

Electronic Commerce
COMP3210
Session 8: Marketing a Web Site and Promoting Products
and Services
Dr. Paul Walcott
Dr. Paul Walcott - Department of Computer Science, Mathematics and Physics, University of the West Indies,
2
Cave Hill Campus, Barbados, W.I.; email [email protected]; © 2005
Session Objectives
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The objectives of this session are:
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To provide a general introduction to Web marketing
To discuss product and customer-based marketing
strategies
To categorise individuals into various market
segments
To analyse Web customer behaviours through the use
of customer relationship models
To describe methods used to promote your Web site
What is Marketing?
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This is the process of
planning and
executing the
conception, pricing,
promotion and
distribution of ideas,
goods and services to
satisfy customers2.
What is Marketing Cont’d?
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Marketing is more than sales; it is those set
of activities that
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Grabs a potential customer
Encourages them to buy your product
Actually gets them to purchase your product
Makes them a repeat customer
What is Marketing Cont’d?
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Marketing theory describes the 4 P’s
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Product: a company sells a physical product or
offers a service
Price: the amount paid for the product or service
Promotion: the communication of the existence of
the product to the market
Place (or distribution): ensuring that the right product
or service is offered at the right place at the best time
Each of these “P”s contribute to your marketing
mix
Marketing Strategies
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The first stage (of a marketing strategy) is setting
marketing objectives (where the organisation
wants to be at the end of the strategic planning
period) and goals (the objectives with specific
numerical benchmarks and deadlines attached to
allow management to measure achievement)3.
Marketing Strategies Cont’d
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The second stage (of a marketing strategy)
is specifying the core marketing strategy,
i.e. specific target markets, competitive
positioning and key elements of the
marketing mix3.
Marketing Strategies Cont’d
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The third (stage of a marketing strategy) is
the implementation of tactics to achieve the
core strategy3.
Marketing Strategies Cont’d
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Marketing strategies may come in two
forms
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Product-based marketing strategy
Customer-based marketing strategy
Marketing Strategies Cont’d
Product-based Marketing Strategy
 When a customer is likely to buy or think
about products in categories, a productbased marketing strategy is appropriate:
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An example is an office supplier store where
a customer may be looking for an office desk;
the customer immediately thinks about the
product category “office furniture”
See http://www.officedepot.com/
Marketing Strategies Cont’d
Customer-based Marketing Strategies
 Due to the great flexibility of Web sites (as
opposed to traditional mass media) they can offer
products and services that are targeted towards
specific type of customers
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First the customer types must be identified
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A Web site on its home page might allow the user to select
the required customer type
This approach is more common on B2B sites than on
B2C sites
Communicating With Different
Marketing Segments
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Trust and Media Choice
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The Web is an intermediate step between
mass media and personal contact
Mass media (e.g. TV) offers the lowest level
of trust yet is still widely used today
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The cost of mass media can be spread over a large
number of people
Personal contact offers the highest level of
trust; it is also the most expensive
Communicating With Different
Marketing Segments Cont’d
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In 1996 as companies began doing business
online a splintering of the mass market occurred
due to rising consumer expectations and reduced
product differentiation
This led to a reduction of the usefulness of mass
marketing
Advertisers subsequently began to identify
market segment and sell to them
Web Advertising
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Advertising is about communication
Communication may be between a
company and
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Its current customers
Potential customers
Or former customers that the company is
trying to regain
Web Advertising Cont’d
Banner Advertising
• Most Web advertising uses banner ads
– A small rectangular object normally at the top
of the Web page which displays stationary or
moving graphics
– These ads are created using animated GIFs,
or objects created in Shockwave, Java or
Flash)
– These ads must be attention grabbing
Web Advertising Cont’d
Banner Advertising Cont’d
• Web ads have been standardised by an
organisation called the Interactive
Advertising Bureau (IAB) which is
responsible for
– Creating banner size standards (e.g. 728x90,
160x600, 300x250, or 180x150)
– Encourage effective Internet advertising
Web Advertising Cont’d
Banner Ad Placement
• There are three ways that a company can have
their banner ads displayed
– (1) Use a banner exchange network
• A banner exchange network arranges for banner ads for one
company to be displayed on another company’s Web site
• Each member site would accept two ads for each ad placed
on someone’s site
• The banner exchange network earns money by selling ad
space to other businesses
Web Advertising Cont’d
Banner Ad Placement Cont’d
– (2) Pay a site to display the banner ad
• Rates can be negotiated through an advertising
agency
– (3) Use a banner advertising network who
acts as brokers between advertisers and Web
sites that carry ads
• They often broker space on large Web site like
Yahoo, which has high traffic volumes and are
therefore expensive
Web Advertising Cont’d
Measuring Cost for Ads
• Several measurements exist including:
– Cost per thousand clicks (CPM)
– The number of new visitors that arrive via a clickthrough that buy on the site
• To measure Web audiences is complicated,
however the following definitions are instructive:
– A visit occurs when a Web page is requested by a
visitor; further page loads from the same site within a
time period is considered part of the same visit
Web Advertising Cont’d
Measuring Cost for Ads Cont’d
– A trial visit, is the first time a visitor loads a Web site
– When a visitor loads a page several time these are
called repeat visits
– If a visitor clicks on an ad that is displayed on a Web
page this is called a click-through
• Rates vary depending on how much
demographic information is captured, and the
kind of visitors the site attracts
• The cost per one thousand clicks may range
from $1 to $50.
Marketing Methods
E-Mail Marketing
• E-mail may well be one of the greatest tools
created for communication in the 20th century
• Some of the ways that email has been used for
marketing are:
– Permission marketing is the sending of emails to
people who request further information on a product
or service (for example)
– Combining content (e.g. articles or news stories that
are of interest to the target market) with advertising
messages
Marketing Methods Cont’d
Affiliate Marketing
• In affiliate marketing a Company’s Web
site includes products or services offered
for sale by another company in exchange
for a commission
• The affiliate’s site benefits from the selling
site’s brand in exchange for the referral
– Amazon.com has over 800,000 affiliate sites
Marketing Methods Cont’d
Viral Marketing
• Viral Marketers rely on non-customers being told
about products or services by existing customers
• The number of customers increase the way a
virus increases
• An example of a viral marketing campaign is
Blue Mountain Arts
– When an electronic greeting card is sent to a person,
a link to Blue Mountain is included which they click on
to read the card; they are now more likely to send a
card themselves
Web Site Naming
• People with established brands want to name
their Web site after their brand
• Companies other buy more than one domain
name, just in case the person misspells it (e.g.
Yahoo.com owns Yahow.com)
• In some cases the Web site domain is owned by
some one else (e.g. virginatlantic.com ->
viginatlantic.com)
• Domain names can be expensive, e.g.
Altavista.com cost $3.3 million
Promoting Your Web Site4,5
• Internet marketing is about capturing the
attention of potential customers through
promotion
• The guidelines used for direct mail
marketing are also used for Internet
marketing
• These guidelines are summarised by the
acronym AIDA
Promoting Your Web Site Cont’d
• A – Attention
– The goal is to get the attention of the visitor
which may be achieved through:
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The quality of the Web site
The ease of navigation
Personalisation
Good graphics
Attractive Banners
Colour
Promoting Your Web Site Cont’d
• I – Interest
– Once the visitor’s attention has been
captured, an interest in the product must be
sparked.
• Quick response times and ease of navigation are
vital at this point
• D – Desire
– A desire must be created for action
• Interactivity through navigation provides this
Promoting Your Web Site Cont’d
• A - Action
– The desired action is the customer placing an
order, or the actual sale.
• At this point the information is sent off to the
company to process and deliver (i.e. the fulfilment
phase)
Promoting Your Web Site Cont’d
• Several methods of promotion are in use
today:
– The combination of online and off-line
marketing (these must work together)
– Banner ads (very popular, however only about
0.5% of visitors click through)
– Email marketing (very cost effective and with
good results, i.e. 5-15% response rate,
however may clutter customer’s in boxes)
Promoting Your Web Site Cont’d
– Traditional media: local newspapers, radio
programmes and mass mailing campaigns
– It is important to promote your Web site on your Web
site. This can be achieved through:
• The domain name; use the company’s name
• Negotiate reciprocal links, i.e. other Web sites linking to your
site
– Search engines and directories
• Search engines locate sites based on keywords
• Directories are organised listing of Web sites
Promoting Your Web Site Cont’d
– Newsgroups and mailing list
– Promotion agreements5
• One company promotes another (e.g. 1-800flowers.com customers can earn frequent-flyer
miles with American Airlines