Marketing Strategies on the Web

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Marketing Strategies on the Web
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Marketing Strategies on the Web- an Overview

• Covering four main ideas
• For Manufacturing companies
• (1) Understanding why marketing on Internet is
  different
• For all organizations with a Web presence
• (2) How a manager should develop his/her Web
  site a) design, b) functionality, and c) hosting
• (3) Attracting visitors to that site
• (4) Global issues

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(1) Marketing on the Internet is Different

• From the perspective of Manufacturers getting
  involved in direct sales as part of E-B
• Offers new possibilities and dangers!
• Every customer now has instantaneous, documented,
  direct contact with every member of the firm (and
  vice versa)
• Potential customers are world-wide
• a manager and his/her competitors are now
  transparent and on the record
• Technologies on Web change what message and
  service a manager can provide and how

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Marketing on the Internet is Different

• New 4th Channel
• Channels are a means of making a product or
  service available for use or consumption by the
  consumer or a business
• External channels allow manufacturers to focus on
  their core business and allows others to act as
  intermediaries
• These are middlemen and consumers pay a premium
  for their services (location, storage, knowledge,
  varied quantities, related goods)

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Marketing on the Internet is Different

• New 4th Channel (cont.)
• TB has 3 channels to communicate and sell
• Traditional channels face-to-face mail and
  phone
• The Web represents a new 4th channel available to
  EB that has both advantages and potential
  drawbacks over the other three

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Marketing on the Internet is Different

• New 4th Channel (cont.)
• Web as a channel offers interesting possibilities
• As with the other 3, manufacturers have the
  option of providing direct sales with consumers
  and avoiding the use of an outside channel
• Limitations to the other three have traditionally
  kept manufacturers out of this businessthere are
  reasons you cant buy directly from Ford

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Marketing on the Internet is Different - New 4th
Channel (cont.)

• Two basic problems for manufacturers
• 1) Not their core business
• 2) Channel conflicts (cannibalization)- Lose
  advantages of other providing
• Locations (close to where product is needed)
• Storage (provide place for unsold items besides
  warehouse)
• Knowledge (understands consumers needs product
  in context, etc.)
• Varied quantities (ability to break down cases,
  etc.)
• Related goods (other manufacturers products
  avail.)

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Marketing on the Internet is Different

• Ways to deal with Channel Conflict-
• If you choose to not sell directly to consumers-
• Have a catalogue only
• List MSRP and product details
• Provide links to suggested retailers
• If you do sell-
• Give subsidy to retailers based on lost sales
• Sell at very high price to discourage direct
  purchase
• Offer only unique goods/services on Web site

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Marketing on the Internet is Different

• New 4th Channel (cont.)
• For most traditional manufacturers, selling via
  the 4th channel was in response to demand
• Customers are demanding they be able to buy
  online so Web-commerce for these goods are
  required
• So there is a need for firms to evaluate how to
  integrate a new sales interface into their
  distribution strategy

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(2a) Developing a Web SiteDesign Issues

• First issue Content is more important than
  appearancemanagers shouldnt let anyone fight to
  find information they are seeking
• Second issue Traditional Graphical User
  Interface or GUI (a.k.a., gooey) rules apply to
  Web appswe are merging two worlds IS and
  Marketing

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Site DesignGUI Rules

• Managers shouldnt drown people in eye candy in
  lieu of informationpeople wont come back unless
  it is useful
• But a picture is still worth a thousand words
• Managers shouldnt just take graphical material
  and brochure layouts from his/her traditional
  print media

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GUI Rulestransferring graphics

• Traditional graphics wont translate well large
  files make pages slow
• Too many colors/details wont be readable in Web
  formats
• Graphics arent readable by search engines and
  text readers (WAP and speech software)

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GUI Rulestransferring graphics (cont.)

• Symbols might not translate worldwide (will
  discuss more global issues later)

Prevents pregnancy? Not to be taken by pregnant
women? Different cultures had dangerously differe
nt perceptions.
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GUI Rulestransferring graphics

• A manager should make sure that his/her
  application looks good to as many people as
  possible
• Does it look good on a BW printout?
• On a TV screen (huge dot pitch)
• On a palm pilot?
• XML-based documents anyone?

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GUI Rulestextual layout

• This is hypermedia
• Dont force people to read through
  linearlyexpectations are higher
• Each page clearly summarized in first paragraph
  and in title GUI Rules
• All information should be three clicks awaymake
  channels
• Text should be 33 more dense

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GUI RulesGeneral Site Design

• Rules for Web application (collection of pages)
  traditional GUI rules
• Consistency throughout (should be recognized as
  his/her image too)enforce with everyone!
• Limit colors and use same in each page
• Navigation bars on each page distinctive from
  other content
• Dont have too many items on page (7/-2)

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GUI RulesGeneral Site Design

• Humor should be avoided unless it is part of the
  brand messagejokes arent funny the 3rd time
• Most important content goes in top left (in West)
• Group like things with lines or boxes

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(2b) Developing a Web SiteFunctionality

• Now we know basically how to design GUI and
  layoutwhat functions are needed behind the front
  end?
• Build system to be rapidly adaptable
• Web technologies should be used to do 1-to-1
  marketing (before competitor do)

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FunctionalityRapidly Adaptable System

• Changing prices products
• Competitive offeringsmanagers should scan the
  competitionbecause s/he is being scanned!
• The Web should be scanned to combat bad PR
• New functionality
• Scalability

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Functionality1-to-1 Marketing

• Five functions available through Web technologies
• (1) Interaction
• (2) Identification
• (3) Tracking
• (4) Differentiation
• (5) Customization

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1-to-1 MarketingInteraction

• Web technology enables personal, fast, and useful
  interaction
• FAQs (to avoid repetition and wasted )
• Newsgroups (to let customers talk among
  themselvescorporate representative should take
  part)
• E-mail (by topic each answered quickly)
• chat/video (used to meet traditional shopping
  needs)
• Online surveys (with incentives)

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1-to-1 MarketingIdentification

• Web technology allows a manager to identify each
  customer to track and understand
• Login IDs and passwords
• Cookies
• IP addresses
• Digital Certificates

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1-to-1 MarketingTracking

• With unique ID, can get and store data
• Can track every purchase and page view
• Demographic data
• Number of page views
• Sequence of views
• What they bought, what combination, when, for
  whom

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1-to-1 MarketingTracking (cont.)

• Combine with interactions for valuable info
  (i.e., interactions can be kept and mined)
• Site can be modified based on satisfaction
  measures

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1-to-1 MarketingDifferentiation

• By tracking a company can differentiate
• To treat everyone personally
• To offer pre-selected goods, information,
  services
• Up-sell
• Cross-sell

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1-to-1 MarketingCustomization

• A manager can take differentiation one step
  further and change what is soldcustomization!
• A company should look for what it sells and see
  if it cant break it into components
• Assemble as needed for each customer
• Easiest for electronic offerings. Harder for
  physical goods (but being done)

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(2c) Developing a Web SiteHosting Decisions

• Related to design issue where does it all live?
• Site cant live without a host server connected
  to or owned by ISP
• Should be based on four criteria reliability,
  performance, tech support, and price

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Hosting DecisionsFour Criteria

• Reliability Site needs to be running (and
  adaptable) 24/7/365
• Performance speedget 3rd party measures
• Tech support Quality? Availability?
• Price value in combination with above?

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(3) Attracting Visitors to a Site

• A site existsso what? if nobody comes to see
  it or they never return
• Ways to attract visitors or be sticky
• Promotion tricks to get people
• Suggested offerings to keep them

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Attracting Visitors to a SitePromotional Tricks

• There are some basic tricks to promote a site to
  be found
• Affiliate Networks
• Event Marketing
• Choose a good domain name
• Announce site
• Banner ads
• Direct marketing

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Affiliate Networks

• Syndicate content/services on other sites
• Pages can pay to get on portals and hooked in as
  back end to other resellers
• Can offer channels to allow narrow placement on
  each
• Can allow front-end customization by resellers

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Event Marketing

• Victorias secret shut down the Net
• Attracted with a single ad on TV (albeit with a
  pretty enticing, well targeted event)
• Company should something unique that cant be had
  via other media or wont be worth download time
  or trouble

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Choosing a Domain Name

• www.companyname.com if possible
• Well known brand should be able to sue for brand
  name in URL
• Not well known should choose something close or
  logical noun (www.ponies.com and www.chicken.com
  owned by ISPscan be bought I am sure)
• Should buy name rights (dont have registered to
  ISP)
• Should use other domains which have meaning (.fi
  gives expectation of Finnish language)
• Should have many names push to a centralized page

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Announcing a Site

• Company should put URL everywhere in other media
  promotions
• Should put in search engines (register and fix
  tag info)
• Should call the press
• Put on business cards and letterhead
• Shouldnt announce until fully ready!!!

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Banner Ads

• Should exchange banner ad space with other
  related sites
• Should make banners that dont annoy, are
  professional, that use older technology to be
  compatible
• Shouldnt be cuteshouldnt be slow to loadlinks
  should be verified to workshouldnt be put on
  slow pages to avoid guilt by association

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Direct MarketingE-mail

• To spam or not to spam
• Shouldnt be done
• Causes bad PR
• Gets more angry responses than sales
• Hard to find good responses in the deluge
• Unethical and possibly illegal
• Alternatives
• Opt-in e-mails tasteful signature files

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Direct MarketingMailing Lists/Newsletters/Discuss
ions

• Companies should use 1-to-1 marketing to build
  opt-in mailing lists
• Should create a newsletter and include reasons
  why people would want them (incentives valuable
  info)
• Should get employees involved in discussion
  groups and provide value to community (and have
  them sign with their URL there).

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Attracting Visitors to his/her SiteSticky
Suggestions

• There are some basic tricks to keep a customer
  coming back
• Fresh content
• Free content
• Personal content
• Online/offline content
• Good cross-marketing/cross-selling
• Good search capabilities
• Being a community and interactive

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Fresh Content

• Gives people a reason to come back
• Fresh content of value
• A date on the page convinces customers of
  freshness and accuracy
• Indicates to employees to update content

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Free Content

• Free information, products, services to all
  visitors
• Currency rates, news briefs, stock portfolios
• Lotteries, coupons
• Calculators, games
• 34 to get a new customerit pays to keep them

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Free Content example, MSN Zone
Free Internet Gaming Site. Supports game sales
but also place for free games. Why? Sticky site.
Banners sold to others. Banners for own sites.
Requires use of .Net Passport to create market
for that service (used at Citibank.com and ESPN).
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Free Content example, MSN Zone (cont.)
Proprietary client allows control over banners
and extended viewing
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Personal Content

• Incentives should be given to identify for
  tracking
• Related to free content personalized free
  information, products, services

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Online/Offline Content

• Offline reading should be supported
• Multiple formats should be offered including
  downloadable (pdfs) and printable versions (text
  only)
• Push technologies offered to send customized, new
  content

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Good Cross-marketing/Cross-selling

• Company should implement a system that
  effectively promotes related products
• Should collect aggregate data on what else people
  bought when they bought a good
• Should keep a good database of complementary
  products
• Should remember what was bought before and lead
  with an appropriate offer

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Good Search Capabilities

• Everything should be easy and pleasant to find
• Navigation should be tested and streamlined

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Be a Community/be Interactive

• Corporate site can be a destination by being a
  chat communityshould implement discussion
  groups
• Have employees be a member of the group and give
  help or suggest interpretations (but need
  integrity)
• Should make it easy and enjoyable to talk to
  anyone in the company (with a database for
  standardized answers)

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(4) Global Issues

• A manager should be aware that everything done
  can be seen everywhere even if s/he doesnt mean
  to sell abroad
• Should target their audience but have content
  with world audience in mind
• Shouldnt offend if possible
• Messages, text, icons, etc. may not translate
  well
• Professional should make sure meaning translates

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Global Issues (cont.)

• Culture is more than just languageculture is a
  way of thinking
• Applications should be sensitive to local
  behaviors and beliefs
• Software use
• Time perceptions
• Sense of communities
• Buying norms
• Expectations about service
• Expectations about screen layout

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Global Issues (cont.)

• Locals should make local content
• International laws may apply
• local tax/privacy laws are different
• data entry may need to be customized to allow for
  relevant local information

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Public Relations and Developing a Dark Site

• Reasons for Crisis Management
• Disaster Recovery
• Digital Complaint Services
• Strategic Planning

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Developing a Dark Site - Reasons for Crisis
Management

• Dark site is a secret server set up to replace
  the regular server to display content in times of
  crisis
• Help manage legal crisis in real time and on
  global basis
• Use to limit impact of emergencies recalls
• Companies turn them on (w/in 30 min) and contact
  the press
• They should have backups on CD to send to ISPs in
  emergency in case of problems with primary site

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Developing a Dark Site - Disaster Recovery

• If there is a defect or emergency, the dark site
  may contain confidential data (product or
  personal) that needs to go public fast
• Can also be used to counter misunderstanding
  rumor
• Gives consumers the companys side of a story
• Alternatively, consumers will get details from
  other Web sites (in 1999 there were 20,000 links
  to www.flamingfords.com even though the issue was
  resolved in a 1995 recall)

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Developing a Dark Site - Online Experience

• Two outcomes of different responsiveness
• Intel Pentium chip bug and Pentium III privacy
  PR disaster. Both handled badly and slowly and
  with expensive impacts
• Odwalla 90 of existing customers still willing
  to buy their product after E-coli outbreak. Had
  dark site up in 12 hours.

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Developing a Dark Site Example, Pilgrims Pride
Lunchmeat (10/14/02)
First day of recall, site was given major
overhaul to inform customers and soothe investor
fears. Links clear on homepage
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Developing a Dark Site - Strategic Planning

• 8 steps
• Regular Risk Audit
• Identify and delegate responsibilities prior to
  crisis
• Keyword monitoring can pay service to do this
• Develop crisis manual and put on Intranet
• Develop dark site
• Run crisis simulations (ala fire drills)
• Know who to contact in press and public ahead of
  time
• Maintain the above to be current

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Conclusion

• Marketing on the Web provides a mechanism for
  doing business that is unique
• Allows one-to-one marketing with advantages of
  automated processes and unprecedented information
• The best page is worthless if it isnt seen
• Global availability of Web applications offers
  new opportunities and concerns