Three Stages When Implementing SME Internet Marketing
Li Zhang
Political and Economic School Hangzhou Teachers College, P.R.China, 310036
Abstract: At present, internet marketing has already become urgent need of traditional enterprise.
Comparing to the large corporation, most of small and medium-sized enterprises are lacking the fund
and strength unable to implement the internet marketing on a large scale. Therefore, it is necessary to
choose suitable strategy of internet marketing according inside and outside opportunity. There are
three stages of internet marketing which this article will discuss strategies for: domain
name registration, website construction, and website promotion.
Key words: small and medium-sized enterprise, internet marketing, website
Preface: According to an investigation of online sales and marketing services for small and
medium-sized businesses, announced the results by Interland in spring 2005, a nationwide survey of
1,032 leaders of small and medium-sized businesses. The findings revealed that two out of three
business leaders clearly believe that business Web sites influence overall sales, both on- and off-line. In
addition, 94 percent say their businesses have Internet access. [1]It is obvious that implementing internet
marketing has become an urgent need of traditional small and medium sized enterprises. Compared to
the large corporation, most small and medium-sized enterprises lack the funds and strength to
implement internet marketing on a large scale. Therefore, it is particularly necessary to select the
appropriate marketing strategy depending on internal and external conditions. Enterprises have to have
domain name registration, website construction, and website promotion. In these stages, enterprises can
choose the appropriate strategy to preserve and enhance the effectiveness of internet marketing.
、1.1The Stage
of Registering a Domain Name
The Strategy of Registering and Preserving of Domain Name
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In the internet environment, enterprise domain names are an extension and development of the
traditional brand. It is also an important asset for small and medium sized enterprise operations for
preserving and developing the present brand. There are two ways to register and preserve domain
names for small and medium-sized enterprises.
1.1.1. Registering a Domain Name for Small and Medium-sized Enterprise’s
To register a domain name for small and medium-sized enterprises needs to fully consider the
aspects of the traditional brand. It can ensures the domain name and brand are as integrated as possibly,
Small and medium sized enterprises can then avoid putting in more energy and funds than necessary to
preserve separate domain names and brands. In addition, a domain's name should be simple, short,
meaningful, and easy to remember. A company also wants the name to be easy to spell and not difficult
to confuse with other domain names. .
1.1.2. Preserving a Domain Name for Small and Medium-sized Enterprises
First, register related and similar domain name to protect present domain name. From technical
perspective, if small and medium-sized enterprise has one domain name, it ensures client’s visit of
enterprise website. But if other small and medium-sized enterprise or organization had registered related
or similar domain name for this domain name, it would possible to cause part of potential clients visit
other enterprises websites. As results, it will directly influence visit effectiveness of small and
medium-sized enterprise’s website. Thereby, it is necessary to register related or similar domain name to
protect. But, it need to pay attention is to register more domain name will increase small and
medium-sized enterprise’s spending on domain name. The small and medium sized enterprises will have
a choice to make: either increase the overhead cost of domain name spending, or risk the threat of
customers finding the wrong website. Therefore, when small and medium-sized enterprise carries out
register to protect, it also needs to necessarily choose and give up for relative and closed domain name.
Second, once suitable domain names for small and medium-sized enterprises have already been
registered by other organization, small and medium-sized enterprises should consider directly
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purchasing from the current domain holder. For example, Delta Airlines, Inc. bought its current domain
name, www.delta.com, from a previous software developer and ISP holder based in North Carolina.
Third, the domain names have effective times. Small and medium-sized enterprises need to
re-register domain names before expiration dates to avoid losing the domain. Small and medium-sized
enterprises also have an opportunity to recapture relatively close domain names when the previous
holder does not timely re-register by the expiration date.
、The
Stage of Website Construction
2.1 Choose Professional Service Provider of Internet Marketing in Partial Outsourcing
2
Approach
Generally, small and medium-sized enterprises lack funds to undertake constructing a website by
themselves. Thereby, in this case, small and medium-sized enterprise choose internet marketing service
provider as far as possible to implement internet marketing. Internet marketing service provider can
satisfy the practical need of constructing a website with a usable customer interface that will enhance the
brand's name recognition and reputation to give the small and medium-sized enterprise a competitive
advantage. Designing an attractive website is an important for enterprises. Expert of internet marketing
Rayport and Jaworski have proposed that effective website design element that they call the 7Cs:
context, content, community, customization, communication, connection and commerce. [2] This
framework can be used as reference in designing an effective interface. It is often difficult, however, for
a service provider to understand the small and medium-sized enterprise's culture and product. The
answer is to partially outsource. In partial outsourcing, also called component outsourcing, the small
and medium-sized enterprise identifies the technical portions of the website to be completely designed,
implemented, and operated by the internet service provider. [3] Once completed, the small and
medium-sized enterprise forms their own team to focus on the specific business operation of the
website.
2.2 Pay Attention to Continues Update and Maintenance
Construction of enterprise website, only indicates first step of implementing internet marketing. A
lot of small and medium-sized enterprise constructed own individual website. Their goal is to implement
a series of internet marketing activities through enterprise website. But due to that most of enterprises
haven’t professional member of internet marketing, website often become isolated information island,
website’s content and information don’t update in time; along with time passing, website is gradually
losing role of its displaying product and service. After small and medium-sized enterprise establishes the
website, it needs to pay great attention to the website’s update and maintenance. In the enterprise
operation process, it is common that the product or service update, price change and so on. Enterprise
needs to announce information update in own website, on one hand creates more Internets opportunity;
on the other hand maintains the website fresh idea, vigor and attraction.
、The
Stage of Website Promotion
As e-commerce matures, a growing number of small and medium-sized enterprises were aware that
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if they rely solely on the creation of a website to publicize and promote the product, is far from enough.
Small and medium-sized enterprise’s brands have often been limited within a certain area. The
enterprise selects appropriate marketing strategy, relying less cost, ensures to the opportunity to extend
the brand to be unlimited.
3.1 Selecting the Appropriate Marketing Service Provider
Small and medium-sized enterprise can choose three types of service providers of internet
marketing to engage in website promotional activities.
First, to choose service provider of internet marketing engaged in supply and demand information
service platform. Information Platform of supply and demand is mainly to resolve information flow
problems. By bridging the two sides of supply and demand, buyers and sellers can release or find
demand and supply information on the trading platform. Vendors are able to quickly find a buyer, and
buyers can choose between suppliers based on the buyer's needs and preferences. Therefore, it must
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choose specialized service provider of internet marketing is engaged in the supply and demand
information platform pattern. To use active website atmosphere, high platform clicking on rate, owned
by supply and demand information platform, may effectively enhance the website recognition.
Second, to choose service provider of internet marketing engaged in industry portal website.
Industry portal website is specialized web portal with industry feature. Servicing group of website
includes enterprise’s users in this industry or all enterprises and individuals are interested. It is easy and
possible to bring the revenue for user access the industry portal website. Therefore, it has stronger
attraction for the enterprise in a certain industry, as well as for related enterprise in a certain industry.
For it, the popular portal website is unable to achieve. Overall, both sides of buyer and vendor have
strong potential desire to trade in the industrial portal website.
Third, to choose internet marketing service provider that provides integrated service pattern for the
enterprise to access internet. The integrated service pattern is refers to the internet marketing service
provider provides the fundamental internet marketing service (such as domain name registration, virtual
host computer, website construction) under the premise, further provides the website promotion service.
Currently, the trend of integration for website building and promotion is significant. Many internet
marketing service providers, such as China channel (http://www.china-channel.com), Chinese Wan
Wang (http://www.net.cn), Century daylight commerce network (www.21ct.cn) usually provide from
domain name registration, virtual host, website construction, to search engine registration and other
services to promote the website.
3.2. Choosing a Specialized Marketing Tool
According to the "China Internet Marketing Services Market Research Report", issued by the
Ministry of Information Industry under the authority of the evaluation agency Saidi in May 2005, search
engine is China's most important and popular internet marketing tool. An investigation of 1,800
enterprises in 18 cities revealed search engines have 84.49% share of the internet advertising market. in
Chinese developed regions, currently 50.14% of enterprises have bought or plan to buy Baidu
competitive ranking service, Google's rate of 24.13%, Baidu has become the largest domestic internet
marketing platform. [4] Search engine marketing has a very high return on an investment. The pattern
“method of payment is paid by results” breaks the payment mode of traditional promotion and suits very
well for small and medium-sized enterprises. Search engines can successfully be used to find the target
market for enterprises. For example, when an enterprise keyword advertises with Google, internet users
that do a Google search using the enterprise's keywords will then see the enterprise's advertisement
displaced next to the search results. Search engine marketing is making marketing more precise by
providing a method for an enterprise to market its product and service directly to its target customers.
3.3. Implementation of Interactive Marketing
The use of keyword search, slotting fee, and other means of Internet marketing can significantly
increase the number of visits to a small and medium-sized enterprise’s website. A high number of
visitors who are potential customers, however, often only translate to a large number of lost
clients. Making visitors into real buyers is the new problem facing small and medium-sized enterprises
in implementing internet marketing. Using advanced technical IT support small and medium-sized
enterprises can make a low cost investment that may effectively solve this problem in interaction
way. In E-commerce expert's Rafi A.Mahammed opinion, individualization and interactivity are two
main forces which influence the internet. [5] Among them, the interactive concept emphasizes effective
communication between the buyer and seller in their shared time and space on the website. In the
interaction marketing concept the buyer can promptly transmit a demand to the seller. The vendor then
obtains the information from the consumer and adjusts both their product strategy and development to
better satisfy the market demand. A win-win situation is created. Enterprise based on necessary contact
method (for example, telephone number, mailing address, E-mail and so on), establishes an on-line
customer service system to provide further relates through interaction communication tool QQ, MSN
and so on . Visitors can communicate with the online customer service personnel through their own
preferences such as words, voice, and videos. The method fully embodies the instant and interactive
innovative features of interactive marketing to effectively improve a visitor's acceptance of an
enterprise's website, product, and service.
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3.4. Focus on the Integration of Online Marketing and Offline Marketing
Offline Marketing is online marketing symmetry. If an enterprise only relies on online marketing to
create a profit, then the value of the Internet will be greatly reduced. When implemented correctly
focusing on the integration of off-line and on-line marketing leads to more profits than on-line
marketing alone. The integration pattern of off-line and on-line marketing can be divided into three
categories. The first is to develop on-line resources through off-line methods. The second is to develop
off-line resources through on-line methods. The third is to development off-line marketing resources and
on-line marketing resources in parallel. Among them, to develop on-line resources through off-line
methods and to develop off-line resources through on-line methods are typical "brick + click" patterns.
Philip Kotler proposed the reason which explains brick-and-click companies are likely to have
more success online than pure-click competitors. First, companies such as Merrill Lynch and Wal-Mart
have better known brand names; their cost of acquiring a new customer is $12 compared to the $82 that
pure click e-tailers spend to acquire a new customer. Second, they have greater financial resources and
access to funds. Third, they have deeper industry knowledge and experience, good supplier relationships,
and a large customer base. Fourth, they can be reached 24 hours a day, 7 days a week, and the retailers
accept merchandise returns in their stores. And fifth, the internet allows them to serve many customers
far from their store locations. [6]
Here, we can involve some enterprise examples which have got success. For example, Yahoo and
Pepsi-Cola Co. in 2000 jointly organized off-line and on-line marketing plan. The PepsiStuff.com
campaign, can see Yahoo's logo on 1.5 billion bottles of Pepsi and Mountain Dew. The program is part
of Yahoo's "fusion marketing" campaign, designed to connect Yahoo's audience with leading brands and
gives yahoo extensive distribution into significant new channels. [7] Another example is Chinese internet
shopping company “85818.com”. The company is established operation pattern "Internet +tricycle" in
1998. In traditional opinion, both aren’t impossible to connect with each other. But, the enterprise’s
development just depends on modern internet platform and traditional pedal tricycle. At present, the
company already had more than one million registered customers and enterprise’s on-line commodity
included ten categories and nearly 20,000 kinds of commodities that range from food and drink, audio
and video books, fresh flowers, daily use articles, and sporting goods
.
Conclusion:
There are several strategies to implement internet marketing. If small and medium-sized enterprises
choose the appropriate strategy of an internet platform the companies can significantly increase the
effectiveness and efficiency of internet marketing.
References:
[1] Research Report: Interland’s Small-Business Leader Survey Shows the Majority Track Sales to
Their Web Site, Depend on Business Email, CRM Today, May 16 2005
[2] Philip Kotler, A Framework for Marketing Management, Beking University Press, 2004, pp. 30
[3] Gary P. Schneider, Electronic Commerce, China Machine Press, 2005, pp.546
[4] China Internet Marketing Services Market Research Report, Evaluation Agency Saidi, 2005
[5] Rafi A. Mahammed, Internet Marketing, China Financial & Economic Publishing House, 2004,
pp.1
[6] Philip Kotler, A Framework for Marketing Management, Beking University Press, 2004, pp. 29
[7] Margaret Kane, Yahoo! and Pepsi team on marketing, March 21 2000, ZDNet News,
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