Site Content, Design, and Interface Part I

1
Site Content, Design, and Interface (Part I)

• Web site planning
• Segmentation
• Targeting
• Positioning
• Overall strategy
• Site content
• Traffic building

2
Definition

• Segmentation Aggregating prospective buyers
  into groups that (1) have common needs and (2)
  will respond similarly to a marketing action.

Although not all these consumers are completely
alike, they share relatively similar needs and
wants
Marketing action involves efforts, resources,
and decisions--product, distribution, promotion,
and price
3
Approaches to Marketing

• Undifferentiated Strategy (no intended difference
  from competitors no specific consumer group
  sought out)
• No clear online examplespossibly Hotmail
• Concentrated Strategy (differentiation one
  consumer segment sought)
• Certain B2B sites
• Differentiated Strategy (same firm makes
  different offerings for different segments)
• Staples.com

Southwest Airlines
Auto makers
4
Notes on Segments

• Greater opportunities for customization may
  reduce need for segmentation
• Any number of dimensions possible--but too many
  variables cut segment size
• Segments must
• differ meaningfully from others
• large enough to be profitable
• be serviceable (have need that can be met cost
  effectively)

5
Identifying Online Segments and Needs

• Broad needs serving most customers (e.g., Google)
• Special needs segments
• Segment preferring traditional service online
  (e.g., textbooks, banks)
• Customers willing to pay a premium

6
General Issues in Selecting Segments

• Cost-Benefit analysis
• Explicit costs
• Implicit costs
• Customer profitability analysis
• Database purposes
• Budgeting for customer acquisition

7
Specific Criteria in Selecting Segments

• Potential for increased profit and ROI
• Similarity of needs of consumers within
• Differences of needs of members of different
  segments

• Feasibility of serving each specific segments
• Cost effectiveness of identifying members of each
  segment

8
Targeting Selecting Segment(s) and Specializing

• You cant be all things to all people ---gt
  choose one or more groups
• Focus narrows scope of competition, but demands
  are greater
• Repositioning Changing established position may
  be difficult -- e.g.,
• Sears
• McDonald
• Napster

Good sales poor everyday values
Lunch not dinner Good for children
9
Targeting
UNIQUE NEEDS CUSTOMER GROUP 1
FIRM STRENGTHS
UNIQUE NEEDS CUSTOMER GROUP 2
COMPETITOR (ONLINE OR OFF-LINE) STRENGTHS
10
Positioning Strategies

• Head-on competition
• Traditional
• Airlines (want to differentiate but have
  difficulty pulling it off in practice)
• Beef products
• Online Travel services
• Differentiation
• Traditional
• Burger King Grilled instead of McDonalds fried
  burgers
• Halmark When you care to send the very best
• Hertz (vs. Not exactly)
• Zachy Farms (chicken)
• Online eHarmony.com
• Differentiation through online service
  Online-only banks

11
Content--Objectives

• Communication of position/brand
• Support for position
• Useful information about business/market
• Making content interesting
• Interactivity and two-way communication

12
Building Traffic

• Viral marketing
• Incidental contagion
• Contagion due to transaction consumption
• Consumers as recruiters
• Search enginescovered later
• Internet advertising
• Promotions/free products

13
Viral Marketing

• Suitability
• Product uniqueness
• Excitement
• Simplicity
• Low trial and switching costs

• Potential problems
• Brand control
• Limited control over growth
• Measurement problems
• Spam threats

14
Promotions

• Free products
• Free content/services
• Site quality
• Promotion models
• Direct
• Intermediary

15
Excel-Part I

• Excel basics
• Importing information into Excel
• Macros
• Spreadsheet examplecomputing net present values

16
Excel basics

• Spreadsheets consist of
• Rows (identified by number)
• Columns (Identified by letters)
• Cellsidentified by row and column IDe.g., A5 is
  the first column on line 5

17
Macrostools to automate repetitive tasks

• Start recording of macro
• Tools, Macros, Record new macro
• Provide name and possible shortcut (ltCONTROLgt a
  lettere.g., ltCONTROLgtD) (the plus sign
  indicates that the two keys are pressed
  simultaneously)
• Perform task(s)
• Stop recording

18
Copying text from other source

• Handout explains how to
• Copy text from other source (e.g., HTML)
• Paste special to avoid graphics
• Convert from one column to additional columns

19
Spreadsheet Example

• Spreadsheet concepts
• Input areas
• Unchanged
• Variable
• Output area
• Functions
• Computations
• Copying from one area to another

20
Spreadsheet basics

• Computations
• Enter 2005 in Cell A2
• Enter A21 in Cell A3
• Copy from cell A3
• Paste onto A3 through A20
• Absolute references
• To use the same variable in consecutive rows, use
  the absoluteenter cell reference (e.g., B24) and
  press ltF4gt (notice dollar signs)

21
Functions

• In desired cell,
• Insert, function
• Select desired function by category
• Provide required information (remember absolute
  cell references)
• E.g., present value and net present value
• Present value of a future amount amount /
  discount factor
• PVamount/(1i)n iinterest rate or cost of
  capital
• nnumber of periods from now
• Net present value total of a sum of present
  values

22
In-Class Assignment

• Move text from records.htm to Excel and move into
  appropriate columns