WESTERN CONNECTICUT STATE UNIVERSITYPRIVATE ANCELL SCHOOL OF BUSINESS Marketing Department MKT 411 E-Commerce and Internet Marketing Dr. Ronald Drozdenko http://people.wcsu.edu/drozdenkor/index.htm Office WS 301 E-mail: drozdenkor@wcsu.edu 3 SH Spring 2008 203-837-8776 Office Hours: Tuesday & Thursday 1:00-2:00 pm, Wednesday 9:00am-12:00pm. Please e-mail to confirm an appointment. Appointments for other times may be arranged. Contact List: I will be using your Western and Blackboard Vista e-mail addresses to contact you. Course Web Site at conduit.wcsu.edu Updates to this syllabus will be posted on the course site. Catalog Description: The Internet is rapidly expanding as a commercial medium used by marketing professionals to further organizational goals. This course examines the commercial use of the Internet and analyzes this use in the context of marketing strategy, consumer behavior, advertising, customer service and other business concerns. The course focuses on those activities and strategies that make Internet marketing different from, and more than, developing Web pages. Topics include the development of effective communications strategies, selling strategies, Web site development approaches, content strategies, privacy, security, legal issues, political issues, social implications, and ethical concerns. Prerequisites: MIS 260, MKT 301, junior standing and GPA ≥ 2.3. If you do not meet these prerequisites, see me immediately. Required Text: Internet Marketing: Building Advantage in a Networked Economy, 2nd Edition Rafi Mohammed, Robert J. Fisher, Bernard J. Jaworski, Gordon Paddison, New Line Cinema, 2004, ISBN 0072538422 Instructor's Emphasis and Objectives: This course will focus on the strategic aspects of Internet marketing and also help you develop some basic Internet marketing skills. While this course is not intended to provide a comprehensive background on the technical aspects of the Internet or web page design, marketers should have a conceptual understanding of how the Internet works and be able to make basic modifications to a web page. After completing this course you should understand basic Internet business models, search engine marketing, email marketing, affiliate programs and cross-media marketing communications. Additionally, Internet marketing tools such as online surveys, marketing mix testing and various web metrics will also be explored. Use of Technology In this Course: This course uses technology to enhance learning and provide exposure or practice in using technology tools. Technology elements of this course include: Lectures and discussions guides in PowerPoint Student presentations in PowerPoint Basic web page modification and design in FrontPage Numerous Internet applications (case studies, online survey demonstrations, web metric examples, etc.) 1 COURSE REQUIREMENTS Course Group Project Ten Individual Exercises Two exams Second Life Blog Class participation The due dates for these requirements are listed in the Class Schedule on page 10. (See page 11 for point breakdown) PLEASE NOTE Assignments submitted late are subject to a 20% point reduction for each calendar day late. There is a 10% service charge if you e-mail me an assignment without permission. Please use your WCSU e-mail address to contact me. E-mail from other addresses may be filtered and not get to me. Use topic headings when writing reports. All reports must be typed and stapled. No folders or oversized pages please. Make up exams will be given at the instructor's discretion if arrangements are made prior to the scheduled exam time. (Exceptions to this policy may be made in cases of documented illness.) Incomplete grades will be given only with advance approval. Back up all computer files and don’t wait until the due date to print your reports. If you have a problem with an assignment or an exam date please see me in sufficient time so that we can address the problem. Please review “Student Rights and Responsibilities” in the Student Handbook especially section 1.1.1 on unacceptable behaviors such as cheating, plagiarism, disorderly conduct, etc. www.wcsu.edu/stuaffairs/studentrights.html Suspension or expulsion from the University can be the consequence of unacceptable behaviors. Attendance policy: Consistent attendance is encouraged and will be recorded regularly. Late attendance will be noted. Attendance affects your class participation grade and is significantly correlated with exam performance. Exams: The exams will cover the concepts presented in the text and any other materials (e.g., current articles) discussed in class. The exams include objective (multiple choice) and discussion questions. The chapters that are included on the exams are listed in the Class Schedule. Note that Exam 2 has a cumulative section. Class Participation: Your class participation grade will be based upon your contributions to class and your participation in class exercises and project reports. Keep good notes on the exercises, projects and class discussions for the exams. Part of you class participation grade will be Course Website: Please visit the course website often for course updates and the posting of materials. You will be able to access your grades and articles. Notification of class cancellations will be posted on the website. Go to conduit.wcsu.edu for information on accessing the website. Classroom Computers: This course will include several in-class computer exercises. However, the notebook computers are to be used for course work only and should remain closed during lectures and discussions. Loss of class participation points may result from using the computers for purposes other than those specified. 2 Course Group Project The objective of this project is to gain a good understanding of Internet strategy and implementation by examining a business that utilizes the Internet. This semester we have the opportunity to work with the managers of a company that markets pro and college team apparel, www.starstruck.com. Another possible project is for a company that produces foot spa disinfectants, www.pediclear.com. A brief outline of the project follows. More detail will be provided during the semester. 1. Provide an overview of the general business opportunity and business model and how the web is used to implement that model. o Include current target markets, competitors and general strategies used to develop relationships with the target markets. o Explain how the website can help with customer acquisition and customer relationship management. 2. Research the characteristics of the target market o Demographics o Product needs / benefits sought o Website needs / benefits 3. Analysis of Current Website (Analysis by both student groups and target customers preferred) o Customer Experience Elements - Objective, Perception, Encounter, Reaction to Stimuli, Sensory, Cognitive and Emotional, Relative Stages – Functionality, Intimacy, Evangelism o Customer Interface Design Elements – Content, Community, Customization, Communication, Connection, Commerce o Defining and Creating Relationships o Web Analytics 4. Overall Image Projected by Website o Consistent with brand image, product positioning, target market 5. Review of Methods to Increase Website Traffic: o Keyword use and placement: Meta tags: provide keywords Page title keywords: provide keywords URL keywords: provide keywords o Utilization of Search Engines Investment strategies to appear higher in domestic/international search engine results (i.e. Google, Yahoo, MSN, AltaVista, Dog Pile, Kelly Search etc.) 6. Competitor Website Comparison: o Review and comparison of competitors websites on following criteria Elements of the User Experience Stage in User Experience Elements of Design Image Projected / Branding Use of Search Engine Marketing Overall Evaluation 3 7. Recommendations for changes to the following should be considered o Evaluation of the Marketing Opportunity and Marketing Strategy o User Experience o Website Design Elements o Applicable Marketing Mix Elements o Branding o Marketspace Matrix o Transaction and/or interaction with potential customers (CRM) o Customer Information Systems and Metrics 8. Modifications to Existing Website or Mock-ups o HTML or PowerPoint Your final report should address all relevant items listed above and any other topic areas or issues presented by the client. Your progress report should include a preliminary analysis on at least the first two items and an overview of your first impressions of the website (item 3). Each group member should also submit a brief individual summary for both the progress and final reports. This summary should include: • A list of individual contributions to the project • An evaluation of the group’s progress on assigned tasks • An evaluation of the group process, dynamics, and conflicts When the project is completed, you will evaluate the contribution of each group member (including yourself). Therefore, keep good record of the group meetings and progress of each group member. Group members’ evaluations will be used to determine the project grades of individual students. Please Note: All students must be contributing group members. A student who does not contribute consistently is in danger of being eliminated from his / her group. Groups may eliminate noncontributing members with a consensus of the other group members and approval of the instructor. If a student is eliminated from a group he / she will be required to complete the project individually. 4 Individual Exercises A series of exercises is intended to give you an understanding of various important aspects of Internet marketing. Please read all the exercises now and review them periodically. This will help to facilitate the completion of some of the exercises since you may encounter exercise examples as you routinely use the Internet and view other media (TV, print, mail, etc.). The exercises are described below. You should submit a brief report with any applicable output on each exercise on the date listed in the schedule on page 10 of this syllabus. Some exercises will be initiated in class. Remember to use topic headings for each exercise report. You may use tables to organize your exercise reports. Your final personal website should contain a page with your exercises or a link to a file containing your exercises. Basics of HTML – Exercise 1 (in-class option) Marketers, especially in small businesses, are sometimes responsible for maintaining and updating websites. Marketers may change prices, add items, delete items and communicate special offers. The objective of this exercise is to allow you to gain familiarity with FrontPage and learn how to make minor modifications to a website. You will open an existing webpage and make the following changes. 1. For the Paolo Gucci Women`s Silver Dial Watch change the price from 29.99 to 19.99. Also adjust the savings $ and % ((LP-OP)/LP). 2. Add text to the picture of this watch such as “Special Offer.” (Right click the picture and select “Show Pictures Toolbar,” there is an icon for adding text to pictures.) 3. Switch the two pictures in the top corners of the page. 4. In the format command add a border to each of these pictures. 5. Put “Sold Out” on the Seiko Men’s Chronograph Pilot watch picture. This watch is in the second row. Output and save your modified web page. Affiliate programs – Exercise 2 Because transaction and coordination costs have decreased on the Internet, new business processes and models have developed. An affiliate program is a method to acquire customers by posting a link on one website that will direct prospects to another website where a transaction can occur. The owner of the website where the link is posted receives a commission on sales or other actions resulting from clicking on the link. Amazon pioneered affiliate programs in 1996. Many other organizations have followed this model. The objective of this exercise is to gain an understanding of how affiliate programs works. First, go to Amazon’s affiliate page and briefly summarize how it works. http://www.amazon.com/gp/browse.html/ref=gw_bt_as/103-2691676-1161457?node=3435371 For the second part of this exercise, find another business or organization that uses affiliate programs. Often information about a businesses affiliate program can be accessed through a link for “affiliates” or “associates” on the bottom of the home page. List the site and note any difference between this affiliate program and Amazon’s. 5 Internet Business Models – Exercise 3 A business model describes the methods a business intends to use to generate revenue and profits. It also outlines the plan to serve its customers with elements of the marketing plan. The objective of this exercise is to gain experience in evaluating business models used in Internet marketing. Compare two websites in the fashion industry. For example, www.fashion.net www.bluefly.com www.shopstyle.com As alternative exercises you can compare www.autobytel.com and www.edmunds.com or select two b-to-b organizations such as www.sap.com/usa/index.epx and www.oracle.com. If you examine two b-to-b organizations for this exercise you will be given two extra credit points. Briefly compare the following: 1. Background info about the company (check library databases such as ABI inform) 2. Revenue sources 3. Target markets (be as specific as possible) 4. Value provided to both consumers and customers on the supply side (suppliers of products). 5. Product positioning 6. Competitors 7. Promotion strategy 8. Customer acquisition and retention 9. Web traffic metrics (e.g., www.alexa.com, www.compete.com, www.ranking.com) 10. Success probability You may use a table to organize your evaluation. E-mail Newsletters – Exercise 4 The objective of this exercise is to explore how organizations use newsletters to communicate with customers. Using a search engine, find and subscribe to one or more free e-mail newsletters about Internet marketing and also about some area (e.g., sports, hobbies, travel, arts, etc.) that interests you. For example, for articles related to Internet marketing, you might subscribe to the following newsletters. www.dmnews.com www.1to1.com/publications.aspx www.marketingsherpa.com/ www.emarketer.com e-newsletters.internet.com/ Briefly discuss in a paragraph one of the articles you received in both an Internet marketing and personal interest newsletter. Also provide your evaluation of each of the two newsletters on the following criteria: 1. Credibility of source (background of organization or expert) 2. Registration process for newsletter subscription (e.g., information required, ease of registration, conditions, etc.) 3. Relevance of content to target group 4. Appearance and format (plain text, html, graphics, layout, etc.) 5. General comments Note: Start this exercise early in the semester to ensure that you will receive the newsletters before the exercise due date. During the semester keep reviewing the newsletters on internet marketing as a way to contribute to class discussions. 6 Evaluating and Developing E-mail Campaigns – Exercise 5 The objective of this exercise is to gain experience in critically evaluating e-mail campaigns. Select one promotional e-mail message you received that you thought was effective and one that you thought was problematic. (Note: Use e-mail examples from legitimate businesses or organizations. Don’t use e-mails offers that are intended to defraud consumers.) Part 1. Evaluation Provide your evaluation of each of the two e-mails on the following criteria: 1. Credibility of source (background of organization or expert) 2. Relevance of content to target group (i.e., you and people like you) 3. Appearance and format (plain text, html, graphics, layout, etc.) 4. Response mechanism (e.g., link to appropriate web page, other contact information) 5. Unsubscribe information 6. General comments and other observations. You may use a table to organize your evaluation. Part 2. Development Modify the e-mail you considered ineffective to make it more effective. Briefly explain your modifications. Developing a Personal Web site with FrontPage – Exercises 6 and 10 (in-class option) The objective of this two-part exercise is to extend on the first exercise on basic HTML editing and become more familiar with basic web site designing, construction, and publishing. We already noted that in some smaller organizations marketers may have responsibility for updating content (e.g., pricing changes, product deletions and additions, etc.). In other organizations marketers do not have primary responsibility for web site development and maintenance but they may be responsible for researching the effectiveness of the site and providing feedback on content, navigation, communication effectiveness, etc. This exercise will allow you to become familiar with some of the capabilities and limitations of website development technologies. Exercise 6 - In order to become familiar with HTML and basic web site construction, you will publish a simple website that briefly describes yourself and your interests using a template in FrontPage. There will be an opportunity to complete this exercise in class. Exercise 10 - You will add more content to your home page (e.g., more detailed descriptions), graphics, your photos, links leading to your favorite sites, etc. You can also add pages containing your resume and a portfolio of your course projects. The exercises and project for this course can be included in your final version of your website. Note: Your Personal Website may be valuable in your search for employment. You can refer potential employers to your site and highlight your accomplishments. 7 Review of Websites – Exercise 7 The objective of this exercise is to gain experience in evaluating websites using relevant criteria. Review and evaluate two transaction (commerce) websites (i.e., websites where you can make purchases), one you consider effective and another that you find problematic. Evaluate each of the following criteria. You may use a table to organize your evaluation. 1. 2. 3. 4. 5. Intended site objectives (You may speculate based upon corporate mission) Target market(s) Customer Experience (Stages and brief overview of elements) Customer Interface (7 Cs) Overall comments Search Engine Marketing – Exercise 8 (in-class option) Search engine marketing (SEM) has become an important method to generate new customers. Since most people use search engines when attempting to access goods, services and information on the Internet, it is desirable for an organization to be prominent in the search results. Search engines sell these prominent spots (Cost Per Click, CPC or Pay Per Click, PPC) in the search results to the highest bidders. The objective of this exercise is to become familiar with the advertising tools available on one of the major search engines (Google). A good understanding of SEM can help an organization buy advertising more efficiently and even help managers consider new products to develop. For this exercise assume the role of the marketing manager for a company that sells motorcycle parts in North America. Please complete the following steps and provide the resulting information in your exercise report. Do not cut and paste sections of the website into your report. I want you to read the materials and put the concepts into your own words. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Go to www.google.com/intl/en/ads/ AdWords and click on “Learn More”. Summarize ‘How and Why It Works.’ Summarize ‘Costs and Payment.’ In the Keyword Tool (click on estimate keyword cost) examine and summarize the following displays (show all columns)by entering a keyword relevant to your product category and a Max CPC of $1.00: a. Estimated Ad Position b. Estimated Avg. CPC c. Advertiser Competition d. Month Search Volume e. Avg Search Volume f. Search Volume Trends Under the cost and ad position estimates determine the minimum cost (CPC) needed to place the top three relevant search terms in search positions 1-3. Select the top five keywords (by Avg Search Volume) relevant to your business (Add) and Click 'Sign up with these keywords.’ Select ‘Standard Edition’ and click ‘Continue.’ Select the relevant languages and countries. Create the ad. Continue and enter a budget of $100 daily and $1.00 CPC. Click ‘Get New Estimates.’ Go to Google.com and enter your top three search terms. Document your top three competitors for each search term. Do you think CPC ads would be effective for this product? Discuss why or why not. 8 Driving Traffic to a Web Site – Exercise 9 Marketers often use advertising in other non-internet media (e.g., mail, print, TV, etc.) to drive traffic to a web site. For many new Internet marketers it is an important way to acquire customers. For established marketers, it is possible to reduce the costs of transactions and expand offers through their transaction website. The objective of this exercise is to examine two examples of organizations making consumers (or bto-b customers) aware of offers or information available on their web site. (For example e-harmony.com advertises on cable news and other cable channels, Edmunds.com advertises in newspaper car sections and Woman’s Day magazine has a section of ads that refer to web sites.) 1. Select two examples from different media categories (e.g. mail, print, TV, magazine) that contain information about a web site. 2. Describe the major communication objective of the ad. a. What is the offer? Is it specific or general? b. Are the copy and graphics relevant? 3. Determine if there are tracking devices used to evaluate the effectiveness of the ad or medium to drive web traffic. a. Coupon codes, specific URLs (e.g., www.sandisk.com/popularphoto or pop-up windows asking for information about how the viewer learned about the site are tracking devices.) 4. Discuss the compatibility of the target group with the specific placement of the ad (e.g., ESPN, mailing list of Business Week readers, Cosmopolitan magazine). 5. Speculate on the effectiveness of the ad in convincing people to go to the website and include any general comments or recommendations. Second Life Blog Second Life (SL) is an Internet-based virtual world. Avatars, computer generated representations of a resident of the virtual world, interact with each other in different settings. SL allows social networking and commerce. Residents can purchase goods and services and real estate with SL currency. Because the number of residents ranges in the millions, companies and not-forprofit organizations such as churches and universities use second life to interact with various constituents. For this project you are asked to contribute to the Second Life Blog on the course Vista site at least once a week during the semester. In particular note the following as you explore SL: 1. How companies are using SL to market products 2. Your evaluation of the effectiveness of the SL marketing program 3. The role of social networking on SL 4. Opportunities for illegal or unethical behavior 5. Suggestions for developing new marketing opportunities in SL. 6. General reactions to the site, the functionality of the site, creating your avatar, etc. To complete this project, it is not necessary for you to actually make any purchases in SL. 9 POINT BREAKDOWN POSSIBLE Exercises 1. Basics of HTML 2. Affiliate Programs 3. Internet Business Models 4. E-mail Newsletters 5. Evaluating E-mail Campaigns 6. Developing a Personal Web Site Part 1 7. Review of Websites 8. Search Engine Marketing 9. Driving Traffic to a Web Site 10. Developing a Personal Web Site Part 2 Exam 1 Exam 2 Second Life Blog Internet Project Progress Report Final Presentation Final Report EARNED 2 3 3 3 3 2 3 3 3 1 ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ 16 16 ______ ______ 6 ______ 3 3 20 ______ ______ ______ Class Participation 10 ______ -------------------------------------------------------------------------------------------------------------------------TOTAL 100 ______ GRADING Please keep record of your earned points. No extra credit points will be given for any additional work unless formally announced in class. Final grades will be based on total earned points as specified below. (In order to determine what your grade is during the semester, divide your earned points by the possible points and refer to the table below.) 100-95------------- A 94-90------------- A89-87------------- B+ 86-83------------- B 82-80------------- B79-77------------- C+ 76-73------------- C 72-70------------- C69-67------------- D+ 66-63------------- D 62-60------------- D<60---------------- F 10 MKT 411 E-Commerce and Internet Marketing Spring 2008, Tuesday and Thursday 11:30am-12:45pm, WS 212 WEEK DATE Tues,Thurs DISCUSSION TOPICS 1 January 22, 24 2 January 29, 31 3 February 5, 7 Introduction to Internet Marketing Framing the Market Opportunity Marketing Strategy in Internet Marketing 4 February 12, 14 5 February 19, 21 6 CHAPTERS* DUE DATES Exercises Due on Thursday Classes 1 2, 3 Exercise 1. Basics of HTML 1/31 3, 4 Exercise 2. Affiliate Programs Client Presentation 2/5 Customer Experience Customer Interface Customer Relationships 4, 5 5, 6 Exercise 3. Internet Business Models February 26, 28 Product 6, 7 Exercise 4. E-mail Newsletters 7 March 4, 6 Project Discussion Exam Review Exercise 5. Evaluating E-Mail Campaigns Exam 1 3/6 8 March 11, 13 Pricing Communication 8, 9 Project Progress Report Due Spring Break March 17-22 9 March 25, 27 Community 9, 10 10 April 1, 3 Distribution Branding 11, 12 Exercise 6. Developing Personal Web Site Part 1 11 April 8, 10 13, 14 Exercise 7. Review of Websites 12 April 15, 17 15 Exercise 8. Search Engine Marketing 13 April 22, 24 Designing the Marketspace Matrix & Marketing Programs Customer Information Systems Customer Metrics 16 Exercise 9. Driving Traffic to a Web Site Project Presentation Practice & Review 14 April, May 29, 1 15 May 6 Social and Regulatory Issues Exam 2 Review Final Project Presentations Exercise 10. Developing Personal Web Site Part 2 Full Project Reports Due Exam 3 is scheduled for Wednesday, May 14, 2:00- 4:30pm 11