Lesson Plan – E-Marketing Course Title – Virtual Business Session Title – E-Marketing Performance Objective: Upon completion of this lesson, the student will understand the importance of marketing for a virtual business. Approximate Time: When taught as written, this lesson should take five to six days to complete. Specific Objectives: Students will compare and contrast Internet marketing strategies and traditional marketing strategies. Students will describe the effects of marketing for an online business. Students will learn how to analyze a web competitor. Students will learn how to understand online consumers. Preparation TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. The student demonstrates online and off-line marketing, including establishing a web presence. The student is expected to: 130.120(c)(2)(A) create and design a website for a virtual business office 130.120(c)(2)(C) determine appropriate marketing and advertising of a virtual business office 130.120(c)(2)(D) describe steps to successfully market a virtual business office Interdisciplinary Correlations: English: 110.33(b)(1)(A) – Reading/Vocabulary Development …determine the meaning of grade-level technical academic English words in multiple content areas (e.g., science, mathematics, social studies, the arts) derived from Latin, Greek or other linguistic roots and affixes. 110.33(b)(1)(C) – Reading/Vocabulary Development …infer word meanings through the identification and analysis of analogies and other word relationships. 110.33(b)(12)(B) – Reading/Media Literacy …evaluate the interactions of different techniques (e.g., layout, pictures, typeface in print media, images, text, sound in electronic journalism) used in multi-layered media. 110.33(b)(12)(C) – Reading/Media Literacy …evaluate the objectivity of coverage of the same event in various types of media. 110.33(b)(12)(D) – Reading/Media Literacy Copyright © Texas Education Agency, 2012. All rights reserved. 1 …evaluate changes in formality and tone across various media for different audiences and purposes. Occupational Correlation (O*Net – http://www.onetonline.org/) 13-1161.00 - Market Research Analysts and Marketing Specialists Similar Job Titles: Project Manager, Market Research Consultant, Market Research Manager Tasks: Measure the effectiveness of marketing, advertising, and communications programs and strategies Gather data on competitors and analyze their prices, sales, and method of marketing and distribution Collect and analyze data on customer demographics, preferences, needs, and buying habits to identify potential markets and factors affecting product demand Soft Skills: Category Flexibility, Oral Expression, Fluency of Ideas Accommodations for Learning Differences: It is important that lessons accommodate the needs of every learner. These lessons may be modified to accommodate your students with learning differences by referring to the files found on the Special Populations page of this website. Teacher Preparation: References: 1. Business Principles and Management, Everard Burrow, South-Western Thompson Learning 2. Learning E-Commerce: Business Analysis and Design, Nancy Stevenson, DDC Publishing 3. Start Your Own E-Business, Entrepreneur Magazine, Entrepreneur Press 4. E-Commerce: Business 2000, Oelkers, South-Western Thompson Learning 5. http://onguardonline.gov/articles/0031-kids%e2%80%99-privacy Instructional Aids: 1. “E-Marketing” Presentation 2. “Target Market Comparison Chart” Assignment #1 3. “Target Market Comparison Chart” Assignment #1 Rubric 4. “E-Commerce Marketing Plan” Assignment #2 5. “E-Commerce Marketing Plan” Assignment #2 Rubric 6. “Marketing Venn Diagram” Assignment #3 7. “Marketing Venn Diagram” Assignment #3 Rubric Materials Needed: Copyright © Texas Education Agency, 2012. All rights reserved. 2 1. Poster board or flipchart paper 2. Markers Equipment Needed: 1. Computers for students to complete projects 2. Projector for presentation Learner Preparation: 1. Ask students how they would know if a new company was recently started. If it were a brick-and-mortar business you could drive by the location and look at signs. How is that different for an online business? If it is an extension of a physical location, the business could advertise traditionally. If is it solely a dotcom business, it could advertise on other websites or purchase additional search criteria to be used on search engines. Lesson Plan Introduction (LSI Quadrant I) 1. Ask students if they have purchased or ordered anything online. Start a T-chart on the board or document camera and ask students about pro’s and con’s of purchasing goods and services from the Internet. Important Terms for this Lesson: Distribution – The movement of products and services from the producer to the consumer. Disintermediation – Process of losing distribution channels. Reintermediation – The process of adding a level to the distribution system. Market Research – The process of gathering and analyzing information to determine what the customer wants Predictive and Descriptive Analysis – Software that can “guess” what the shopper will buy next. Demographic Information – Age, gender, income level, hobbies, occupation, and more information about customers. Cookies – A file that is created on your computer when you visit a web site and stored on the computer’s hard drive. Promotion – The method used to communicate information to customers in order to encourage purchases and to increase customer satisfaction. Online Marketing – Advertising using the Internet. Offline Marketing – Traditional advertising methods which are not done using the Internet. Conversion Rate – The rate at which your marketing efforts result in sales as opposed to people merely reading your advertising. Outline Outline (LSI Quadrant II) Instructors can use the presentation program/software, slides, handouts, and the Internet in conjunction with the following outline. MI Outline Notes to Instructor I. Effects of E-Marketing A. Loss of distribution channel, middleman Use presentation as an aid. Copyright © Texas Education Agency, 2012. All rights reserved. 3 or B. Addition of a distribution channel, i.e., comparison shopping sites (called reintermediation) C. No need to hire an advertising company D. Option to outsource functions if desired When a product is marketed online for a virtual business, the middleman may not be necessary, such as salespeople in stores. However, in the case of comparison shopping sites or the marketplace portal sites that sell many manufacturers’ products, the middleman (the new marketplace web site), is added back through ‘reintermediation’. II. The Competition – What to Know: A. Address B. Number of employees C. Products and/or services D. SWOT analysis information E. Their advertisements F. Promotions G. Pricing for similar products A major part of marketing, regardless of whether the business is online or brick-and-mortar, is knowing your competition. You should not only know the address (physical or URL) of the competition, but also their marketing plan including their pricing. Mention a local business and ask students who its competition may be and discuss these topics about each. III. Marketing Comparison A. E-Marketing 1. Less expensive Many similarities as well as differences exist with e- Copyright © Texas Education Agency, 2012. All rights reserved. 4 IV. 2. Takes less time to create campaigns 3. Tracking is easier a. Tracks when emails are opened b. Tracks ‘hits’ to site 4. Feedback easily accessible – online polls 5. More specific target market B. Traditional Marketing 1. More expensive 2. Takes more time to create campaigns 3. Tracking is more difficult a. May require an outside company to monitor 4. Feedback not easily accessible a. Hire people to conduct surveys b. Customer response forms 5. Mass mailings marketing and traditional marketing. Draw two columns on the board and label on the left side “categories” and on the top “E-tail” and “Traditional” marketing. Ask responses from students and write their answers on the board for the following categories: cost, time, customer tracking, feedback, and target market. Responses should generally match the outline on the left. Attracting and Keeping Customers A. Ask visitors to bookmark the site B. Include your URL on all print documents 1. Business cards 2. Stationery 3. Brochures 4. Direct mail 5. Postcards C. Offer a free service 1. Calculators on your site 2. Coupons or discounts D. Publish an email newsletter 1. Tips, industry information, new products 2. Ask visitors to sign up E. Reminder and follow-up emails F. “Viral”, catchy promotion techniques G. Include a site map H. Search engine optimization I. Contact info. on every page of site J. Request links from local and complementary businesses K. Links from trade organizations to which you belong Even if you have a terrific product or service, you have to reach your customers in order to sell them. Ask students for ideas on how they would attract customers, whether online or off-line. The main goal is to get your company’s name, your “brand”, and your URL out there so customers can find you. Discuss the variety of ways you can do that with the outline and the presentation program/software. Copyright © Texas Education Agency, 2012. All rights reserved. 5 L. Write articles for other sites to use M. Issue a press release in online news databases N. Use social media sites O. Promote site in discussion groups P. Include FAQs V. Identifying Your Market A. Geographic location – where your customers live B. Demographics – age, gender, income level C. Psychographics – lifestyle characteristics Companies conduct market research to narrow down their target market – to whom they want to sell. Ask students what types of products would sell best in different geographic locations, which products or services would appeal to a variety of age groups. Also discuss with students what ‘lifestyle characteristics’ mean and what products or service would cater to those qualities. VI. External Factors Affecting Market A. Changing economic conditions B. New rules or regulations C. Trends and consumer preferences D. Industry events E. New technologies Some situations are out of the business owner’s control regardless of the research that is conducted. Economic conditions, regulations, and new technologies can all affect your marketing strategies. Copyright © Texas Education Agency, 2012. All rights reserved. 6 VII. Market Information A. Gathering data 1. Also called data mining, analyzing data from customers such as Internet traffic and buying and behavior patterns of visitors and customers 2. Having visitors register on your site B. Predicting data – software that can make predictions about buyer behavior C. Customer profiles 1. Segmenting – through demographics, determining target market 2. Tracking – number of site visitors 3. Cookies – files that identify the customer and his preferences VIII. Online Advertising A. Banners and buttons 1. Strip of advertising at top or margin of a web page 2. Little customer response B. Interstitials 1. Pop-up ads 2. Can be annoying to customers C. Personal selling 1. Visiting a web site 2. Emailing a potential customer 3. Moderate response rate D. Sales promotion 1. Coupons and samples 2. Contests and prizes E. Mobile phone apps. Once you begin to attract some potential customers, their behaviors can be tracked, analyzed, and predicted. Ask students if they think this can be considered a violation of privacy. They may not realize that many of their ‘clicks’ are letting web sites know where they go on the Internet. Online marketing is the most common for online businesses because if a potential customer is already on the Internet, there is already an opportunity to attract them to your site. Banner, button, and pop-up ads are colorful and eyecatching but there is actually little customer response from these ads. Show students examples of these ads on web sites. Ask students what they do when they see the ads. More personal approaches such as emails and discounts get more favorable responses from customers. Copyright © Texas Education Agency, 2012. All rights reserved. 7 Mobile phone apps to web sites are gaining popularity. IX. Offline Advertising A. Print ads 1. Newspapers 2. Magazines B. Post cards C. Direct mail D. Product/service flyers and brochures Even if your business is solely online or is online in addition to brickand-mortar, otherwise known as ‘click-and-mortar’, offline or traditional advertising can still be effective. Having something in print that potential customers can see or touch, such as a business card, postcard, or a flyer, can keep your name in front of the customer. Ask students if they notice the amount of ads that are in their mailbox. X. Advertising Conversion Rate A. Rate of conversion of responses into sales B. Determines which sales campaigns are effective C. <1% is common D. 2% or more is considered successful Companies look at the conversion rate to see how effective their advertising is. Ask students to guess the percentage of people who actually purchase products/services either after receiving ads in the mail or after visiting your web site. They may be surprised to find out how low it actually is. Copyright © Texas Education Agency, 2012. All rights reserved. 8 XI. Shopping Cart Abandonment A. Main reasons customers decide not to check out: 1. High shipping costs 2. Just comparison shopping 3. No coupons 4. Security concerns B. Ways to Increase checkout 1. Free or multiple shipping options 2. Obvious privacy policy 3. Step tracker when checking out 4. Verifying if item is in stock 5. Encourage customer reviews 6. Make editing the order easy 7. Include product photos at checkout to show items in cart While many potential customers do not even look at your advertisement, some actually proceed to checkout and still do not complete the transaction. There are reasons for this, called “shopping cart abandonment”. Ask students what this happens. Then ask them what can be done to decrease this abandonment, based upon the reasons they provided. Copy and Paste Multiple Intelligences Graphic in appropriate place in left column. Application Guided Practice (LSI Quadrant III): Discuss with students different ways to advertise a new online product. Then ask students in pairs to come up with ways to advertise a new online life insurance product developed for people age 45-55. Have them list five web sites that could be used to advertise the product. Have them share their results with the class and record their responses so students can see the similarities and differences in their findings. Independent Practice (LSI Quadrant III): Target Market Comparison Chart Assignment #1 – Students will create a chart, either on the computer, poster board, or flip chart paper, that identifies the following types of customers as well as two web sites that are marketing their products or services to those particular customers: 1) new parents, 2) teenagers, 3) musicians, 4) other businesses, and 5) travelers. The chart should include the name and URL of each site and a product or service that each site sells. E-Commerce Marketing Plan Assignment #2 – The student will create a marketing plan for a product or service of their choosing which is to include two Copyright © Texas Education Agency, 2012. All rights reserved. 9 pieces each of offline and online marketing documents. Marketing Venn Diagram Assignment #3 – Students are to create a Venn diagram, either on the computer, poster board, or flipchart paper comparing and contrasting the characteristics of e-marketing and traditional marketing. This can provide a starting point for students: while types of online and offline marketing may be in separate circles, the ways markets can be identified can be in the overlapping section. Students can include the topics they choose to be in each of the circles, but they need to make sure they do have overlapping characteristics in the center. Summary Review (LSI Quadrants I and IV): Q: Which type of marketing is typically more expensive, e-marketing or traditional marketing? A: E-marketing is usually less expensive because of the printing and other advertising costs of traditional marketing. Q: Give examples of print advertising. A: Examples are business cards, stationery, brochures, direct mail, and post cards. Q: Which of the three ways to identify your market involves analyzing lifestyle characteristics? A: Psychographic analysis considers lifestyle characteristics. Q: What type of advertising are print ads and billboards considered? A: These types of advertising are called offline because they are not directly on the Internet. Q: Why is the conversion rate important? A: The conversion rate can let you know how effective your advertising program is, for example, a higher rate signifies advertising that is responded to positively and relatively quickly. Evaluation Informal Assessment (LSI Quadrant III): 1. Instructor will observe students during Independent Practice. 2. Instructor will assist students as needed. Formal Assessment (LSI Quadrants III and IV): Use the assigned rubrics to evaluate the two Independent Practice Assignments (LSI Quadrant III). Extension Extension/Enrichment (LSI Quadrant IV): 1. Interview a local business owner and ask them 1) if they have a web site for their business, or if they advertise their business on other web sites, 2) what type of advertising they use, and 3) what type of advertising they think is the most effective at bringing people into their location. 2. Go to a web site of your choice and locate the ‘Contact Us’ page. E-mail the contact person and introduce yourself as a high school student who is conducting research on online and off-line marketing. State that you would like to find out what type of advertising their company does and what type they feel is the most effective for their business. Be sure to be professional and thank them for their time and any assistance they can give you. Copyright © Texas Education Agency, 2012. All rights reserved. 10 E-Marketing Independent Practice Assignments Target Market Comparison Chart Assignment #1 – Students will create a chart, either on the computer, poster board, or flip chart paper, that identifies the following types of customers as well as two web sites that are marketing their products or services to those particular customers: 1) new parents, 2) teenagers, 3) musicians, 4) other businesses, and 5) travelers. The chart should include the name and URL of each site and a product or service that each site sells. E-Commerce Marketing Plan Assignment #2 – The student will create a marketing plan for a product or service of their choosing which is to include two pieces each of offline and online marketing documents. Marketing Venn Diagram Assignment #3 – Students are to create a threecircle Venn diagram, either on the computer, poster board, or flipchart paper comparing and contrasting the characteristics of e-marketing and traditional marketing. This can provide a starting point for students: while types of online and offline marketing may be in separate circles, the ways markets can be identified can be in the overlapping section. Students can include the topics they choose to be in each of the circles, but they need to make sure they do have overlapping characteristics in the center. Copyright © Texas Education Agency, 2012. All rights reserved. 11 E-Marketing Target Market Comparison Chart #1 Student Name: CATEGORY ________________________________________ 20 15 5 1 Organization Content is well organized using headings or bulleted lists to group related material. Uses headings or bulleted lists to organize, but the overall organization of topics appears flawed. Content is logically organized for the most part. There was no clear or logical organizational structure, just lots of facts. Requirements All requirements All requirements One requirement More than one are met and are met. was not requirement was exceeded. completely met. not completely met. Content Covers topic indepth with details and examples. Subject knowledge is excellent. Includes essential knowledge about the topic. Subject knowledge appears to be good. Includes essential information about the topic but there are 1-2 factual errors. Content is minimal OR there are several factual errors. Mechanics No misspellings or grammatical errors. Three or fewer misspellings and/or mechanical errors. Four misspellings and/or grammatical errors. More than 4 errors in spelling or grammar. Attractiveness Makes excellent use of font, color, graphics, effects, etc. to enhance the chart. Makes good use of font, color, graphics, effects, etc. to enhance the chart. Makes use of font, color, graphics, effects, etc. but occasionally these detract from the chart content. Use of font, color, graphics, effects etc. but these often distract from the chart content. Total Score _____________ Maximum 100 Points Copyright © Texas Education Agency, 2012. All rights reserved. 12 E-Marketing E-Commerce Marketing Plan #2 Student Name: CATEGORY ________________________________________ 20 10 5 1 Required Elements The plan includes all required elements as well as additional information. All required elements are included in the plan. All but one of the Several required elements were required missing. elements are included in the plan. Knowledge Gained Student can accurately answer all questions related to facts in the plan. Student can accurately answer most questions related to facts in the plan. Student can accurately answer about 75% of questions related to facts in the plan. Student appears to have insufficient knowledge about the facts or processes used in the plan. Attractiveness The marketing plan is exceptionally attractive in terms of design, layout, and neatness. The marketing plan is attractive in terms of design, layout and neatness. The marketing plan is acceptably attractive though it may be a bit messy. The marketing plan is distractingly messy or very poorly designed. It is not attractive. Grammar There are no grammatical mistakes on the plan. There is one grammatical mistake on the plan. There are two grammatical mistakes on the plan. There are more than two grammatical mistakes on the plan. Graphics Relevance All graphics are related to the topic and make it easier to understand. All graphics are All graphics relate to the related to the topic. topic and most make it easier to understand. Graphics do not relate to the topic. Total Score _____________ Maximum 100 Points Copyright © Texas Education Agency, 2012. All rights reserved. 13 E-Marketing Marketing Venn Diagram #3 Student Name: CATEGORY ________________________________________ 20 All statements of Placement of similarity are in statements within diagram the overlapping section and differences are in the appropriate outer circles. 10 5 1 Most statements are placed in the correct places, but one statement may be misplaced. Less than half of the statements are placed in the correct circles. Few, if any, statements are placed in the correct circles. Number of Quality Statements Student made more than five comparisons in each circle. Student made four to five comparison statements in each circle. Student made only three comparison statements in each circle. Little thought was put into making any comparison statements. Accuracy Accurately compared and contrasted all characteristics Most characteristics were compared and contrasted accurately. Some characteristics were compared and contrasted accurately. Few characteristics compared and contrasted accurately. Content All information is Most information Some easy to read and is easy to read information is understand. and understand. difficult to read and understand. Most information is difficult to read and understand. Quality of Information All spelling, grammar, and mechanics are correct in the completed diagram. Some spelling, grammar, and mechanics are correct diagram. Many spelling and mechanics errors present in the diagram. Most spelling, grammar, and mechanics are correct in the completed diagram. Total Score _____________ Maximum 100 Points Copyright © Texas Education Agency, 2012. All rights reserved. 14