Week 3: Issues of Internet
Marketing
Virginia F. Kleist, Ph.D.
MANG 493L
Objectives
• Internet marketing is very different than traditional
marketing
• Need to understand your market and your
customer
• Must design effective ways to market to this
customer in the new media
• Last week, strategic advantage through electronic
commerce in B2B and B2C applications, use of
internet in value chain and transactions processing
• This week, build a special relationship with your
customer via internet marketing
Challenges and Solutions
• Info overload
• Search engines only find
40 percent of web
• Scarcity of attention
• How to attract attention of
customers in vast
“landscape” of the
internet?
• Business under increased
pressure from competition
• Use customer name
• Marketing tools
• Manipulate search engine
database
• Ads
• Webcasting
• PR
• Partnership with customer
• Global views
Issues of Internet Marketing
class text, Amor, 2002, Chpt. 5, plus some input from Turban, et al., 2000, and Neitel, et al., 2000)
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Marketing strategies on the web
Web Design
Attracting visitors to your site
Virtual Societies
Localization
Promoting your e-business
Banner ad campaigning
Online Measurement
One to one marketing
Direct marketing
Internet access
(based largely on
Internet Marketing Technologies
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New, new business
Fastest growing medium in history
What is the marketing model here?
Who to target?
Mix traditional marketing with electronic
marketing
• What do consumers buy on the web?
• Customers are not limited or bounded as they are
with newspapers or TV, can jump from site to site
What is different about internet
marketing?
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Enhanced communication with customer
Available and robust communications
Unlimited competition for eyeballs
Customers can bypass shop and talk directly
to manufacturer
• Ads in real time on desktops of target group
• More dangers in web than other media, too
Market research on the web
(from Neitel, et al,
2000)
• Traditional market research uses focus groups,
interviews, surveys, questionnaires, and secondary
research
• Internet provides a faster option for both customer
and competitor research
• Has anonymity
• Can conduct cheaper research
• Find things out in curious ways, such as “cookies”
or attached files that help track surfer’s
movements
Market research on the web
(from Neitel, et al,
2000)
• Research current trends before beginning
strategy (www.forester.com, www. Jup.com,
www.mediametrix.com)
• Run ad counters, collect data
• Technologies exist to capture customer data
(www.atplan.com, www.goglobal.com)
Marketing strategies on the web
• Brand the website like any
other media, co- brand
other products and
services
• Changing rules
• Concise, keep short
• Content is king
• Dynamic sites
• New markets with lower
advertising schemes
• Give away free stuff
• Think globally, but deploy
as if locally
• Online events work
• Internet as series of niche
markets
• Promote site elsewhere
• Use internet to maximize
full marketing objectives
Web Design
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Cohesive, internal plan
Give users content
Limit info on a page
Instant, understandable, accessible, simple, let
them create own sequences
• Be consistent
• Break up content into little pieces
• Small graphics
Web Design
• Use feedback and online surveys
• FAQs, such as eBay (60,000 inquiries per
week)
• Set corporate rules for web sites, email
• Navigational aids, portal concept, site maps
• Limit file sizes
• Prepare to deliver content to network
appliances
Email marketing
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(Neitel, et al, 2000)
Fast, cheap, reaches many customers
Gets there even when they are gone
Less intrusive than phone
Global business translates emails
Define reach, personalization, measure
Use email with traditional marketing
Can outsource this function
Watch issues of opting in and out, spam
Attracting visitors to your site
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Special promotions (Victoria’s Secret)
Cool content people wish to see or read
Free information
Personalize
Support online and offline reading
Cross marketing and cross selling
Actively watch for change in this medium
Virtual Societies
• Syndicate content or technologies to other
media or sites, appear on a portal, affiliate
marketing
• Global village, target narrow group such as
webgrrls
• How to achieve critical mass?
• Put up contact addresses in the site so
people can reach you
Localization
• Although can use internet globally, we do not live
in a global society.
• National, regional norms and cultures
• Translate or not to translate?
• Format of dates?
• Currency?
• Black in US is sophisticated, black in China
means death
• Localize each web site?
Issues of Cultural Differences
• Chinese language translation not easy from
English
• Germans served and pay when leaving, Italy, pay
first then order, Ireland pay first then order
immediately
• Disney didn’t export well to France
• Languages, sorting orders, numbers, dates,
quotations all differ by country, thus on web sites
as well
• What to do with the dog?
• Babelfish translator
Promoting Your eBusiness
• Want top level domain (TLD) name:
spaghetti.com, spaghetti.de for Germany, spaghettiinc.tw for Taiwan
• Check www.InterNic.com for US domain
names, www.ripe.net for Europe domain
names, www.apnic.net for Pacific rim
• Announce the site, register with directories
• Be ready before launch
• Have consistent strategy
Banner ad Campaigning
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Banner ads are small billboards
Banner exchange sites allow free exposure
Banner selling exchanges
www.adbility.com, www.doubleclick.com
Effectiveness is declining
Technology allows overriding of banners
Pop up ads new approach
Online Measurement
• Three tracking methods:
counting numbers of user
activity, auditing where trusted third party measures effectiveness, and rating
by customers
• How do you count one user?
pages, proxy servers)
• Log file analyzer
• Online rating agencies
• Third party auditing
(spiders, copies of web
Webcasting and Interactive
Media
(Neitel, et al, 2000)
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Streaming media to broadcast over web
www.streamingmedia.com
People have slow connections
Bursting
Interactive advertising involves users in the
advertising process www.nike.com, webRIOT, a game show
on MTV
Public Relations on Internet
(from Neitel, et al.,
2000)
• PR keeps customers up on latest info
• Methods include chat sessions, bulletin
board, special events, trade shows, press
releases, video clips
• Effective for crisis management, have a
dark site, egghead.com for emails, Swissair
for a cras, Enron was discussed on
investment sites
One to one Marketing
• Differentiation via technology (identify your customer
via cookies or login, use interactive chats, email, meet the needs of the
customer)
• Develop customer relationships (call handling, sales
tracking, transaction support, more personalized web experiences, call centers)
• CRM providers:
www.egain.com, www.kana.com,
www.ephiphany.com, allows you to collect data on customers and visitors
• Advanced personalization technologies zip
code analysis, collaborative filtering, learning agents like Amazon
Direct Marketing
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Don’t misuse the internet
Spam
Don’t sell lists
Privacy is important
Use one to one marketing to gain information
Opt in, opt out policies
Mailing lists and newsletters
Internet Access
• Need to choose a domain name, .com, .net, .org,
.edu
• Easy to remember
• Choose a reliable, high performing, reasonably
priced ISP with good tech support
• Evaluate connection speed
• Keep costs low
• Register domain name, register. Com or domainit.com