Website Marketing and Design

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Website Marketing and Design
Poitiers, September 23-27

• Session 1 - Introduction to the Internet, Web and
  eCommerce

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Introduction to Course

• Tom Leuchtner - Instructor
• Course Topics
• Web/Internet Marketing
• Practical Aspects of Commerce on the Web
• Web Design
• All information can be found on web
  http//www.leuchtner.com/course2002
• Program for week
• Questions?

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Web Marketing

• The Original WWW
• Web and Marketing
• Stages of Web Publishing
• Break

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The Original WWW

• Its 1922
• Radio suddenly transitions from a technology used
  primarily by the military and the shipping
  industry to a consumer and business phenomenon
• At the end of 1921, there are 5 radio stations
• A year later, there are 575
• Starting radio stations is the height of
  entrepreneurship
• Listening to radio is a runaway consumer fad
• Combing the ether is the hit of the day

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The Original WWW

• Radios impact on 1920s society
• It changes the way people think about distance
  and time
• Simultaneity no longer requires proximity
• Global events are experienced as they happen
• Performances in different cities can be heard in
  the neighbors living room
• Fast-breaking world stories and even the local
  weather are available at the flip of a switch and
  the turn of the dial

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The Original WWW

• Radio changed business, especially marketing
• It accelerated the economys transition to a mass
  market
• It facilitated the creation of national brands
• Firms could launch national marketing campaigns
  simultaneously
• New product store introductions could be
  synchronized with ad campaigns to build consumer
  interest
• Product positioning became more flexible
• Businesses learned to use this new, powerful
  method of reaching customers

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The Original WWW

• As an industry, radio struggled with generating a
  self-sustaining revenue base
• In 1926, radio stations were failing at a rate of
  15 per month
• Consumers still rushed to buy radios
• Ultimately, national networks of stations emerged
• A combination of national and local advertising
  made radio profitable
• Internet marketing shows many of these same
  uncertainties

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The Real World Wide Web

• The Internet changes the way companies connect to
  their customers
• It expands the opportunities for branding,
  innovation, pricing, and selling
• It leads to new ways of thinking about time and
  distance
• It opens up new distribution channels and markets

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Virtuous Web Cycle

• Is a business system with positive feedback
• Each element in the business system feeds off
  another element in the system and feeds into yet
  another element in the system
• If the cycle is strong enough, it can actually be
  a self-fulfilling expectation

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Virtuous Cycle for Net Growth
Lets look at how it works
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A Dot Com World

• The virtuous Web cycle leads to rapid growth of
• Consumer access
• Internet usage
• Content online

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Consumer Access

• The past five years have seen rapid growth in
• Network size
• Users on networks
• Network activity
• Between January 1994 and January 1999, Internet
  hosts grew from 2.2 million to over 43 million
• A 46 growth rate in 1998

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Consumer Access

• The Internet user base has grown rapidly as well
• Worldwide, the number of users was estimated to
  be gt 160 million in March, 1999
• Over 90 of the users on the Net have joined in
  the last 5 years
• More growth is possible, as lt 4 of the worlds
  adult population is online
• 50 of users think the Net is a necessity

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Consumer Access

• Spring 1998, the size of the Web was estimated at
  300 million pages
• Growth rates in content exceed growth rates in
  Web access and the number of users
• From June 1997 to March 1998, Web content grew at
  120
• More importantly, the types and creativity of Web
  site content have blossomed

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Stages (or Generations) of Websites

• Stage I Publishing sites
• Stage II Databases and Forms
• Stage III Personalization

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Stage I Publishing Site
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Stage I
What makes this a Stage I Website ?
Organises, Broadcasts andDisseminates Information
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Stage II Databases and Forms
To find out the travel distances between the host
cities
Select your starting point
Select your destination
Bordeaux Paris Toulouse Marseilles
Toulouse Marseille 404km
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Stage II
What Makes this a Stage II Website?
Ability to retrieve information to respond to
user requests
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Stage III Personalization
If you area team WC98 member and are using a
computer other than the one you originally joined
WC98, enter your nickname and password now.
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Stage III
What Makes this a Stage III Website?
More than ask-respondAnticipatesSuggests
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Website Marketing and Design
Poitiers, September 23-27

• Session 2 The Web and Marketing, Intro to
  eCommerce

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Web Marketing

• Marketing Principles on the Web
• Online Consumer Behavior
• eCommerce

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The Dell Triangle Figure 4.1
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Online Marketing

• Direct interaction creates customer value and
  sets the stage for relationship building
• This creates opportunities for
• personalization
• community building
• real-time marketing

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Online Behavior Interactivity

• Interactivity depends on
• Direct communication
• Individual choice
• Friendly technology
• Lets take a look at each of these

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Direct CommunicationFrom Broadcast to Dialogue
Figure 4.3

• Dialogue is possible when theres direct
  communication between marketer and customer
• Intermediaries can filter or block feedback

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Comparing Communication Methods

• Hoffman Novak (1996) Compared traditional and
  online communication methods
• They looked at
• Communication model one-to-many ? one-to one
• Media symmetry is the information flow
  symmetric?
• Media content use of text, images, audio, video
• Diversity of information the number of
  information sources available through the medium
  (billboards vs. cable TV or the Web)
• Communication timing synchronous vs.
  asynchronous
• Personal interactivity person-to-person vs.
  machine-mediated interaction

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Comparing Communication Methods

• The Web is a flexible technology
• Its evolving into a personal and dynamic
  communication medium

Figure 4.4
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Individual ChoiceSelection Suggestion Value

• The modern economy presents a staggering amount
  of variety
• Typical supermarkets contain 25,000 different
  items
• Variety expands even further without the physical
  constraints of inventory and shelf space
• Choice is confusing without a way to compare,
  evaluate select among the huge number of
  possibilities
• New technologies combine selection and suggestion
• Enable consumers to make more effective choices

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Impact on Consumer Choice
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Friendly Technology
Technology is technology only if it was invented
after you were born

• Televisions, radios, telephones, and VCRs have
  market penetrations gt 85
• The Web must become even easier friendlier to
  reach the 98 household penetration of TV
• As Web access devices becomes more
  appliance-like, increasing numbers of consumers
  will be online
• Internet marketers must understand consumer
  behavior online

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Web Stage and User Challenges

• The easiest type of online consumer activity is
  when loyal and experienced users perform simple
  tasks
• More complicated tasks require marketers to
  develop better user interfaces
• More risky transactions require marketers to
  establish trust and pay attention to customer
  needs

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Online Consumer Behavior

• Users relate to virtual information in many of
  the basic social ways they interact with people
  in their everyday lives
• Users treat machines and software like people

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Online Consumer Behavior

• The human brain isnt well adapted to 20th
  century media
• New media is engaging old brains

Why Are There Social Responses to Information
Technology?
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Online Consumer Behavior
Simple Technological Features Can Elicit Strong
Social Responses

• Manners are critical in online computer
  messages
• Good Manners positive responses
• Behavior that is considered rude in real life is
  considered rude onscreen

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Online Consumer BehaviorSocial Cues

• E-mail lacks the social cues that a phone
  conversation or a face-to-face meeting provide
• Misunderstandings develop more easily because
  people its harder to judge confusion
• People dont get the signals that make them stop
  and explain themselves in face-to-face discussion
• People tend to use stronger language and express
  themselves more frankly
• And they tend to circulate their thoughts to a
  much wider audience

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Online Consumer BehaviorCognitive Difficulty

• One of the challenges of providing online
  information is making it accessible to users
• Providing effective search functionality is key
• Site developers must understand how their users
  are likely to search and browse

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Whos Online?

• High income
• Above average education
• Heaviest users 30-49 years old
• students kids also online
• seniors older middle-aged less likely
• Gap between male female is closing
• US dominates
• wealthiest European Asian countries coming
  online quickly

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As Time Passes

• More people online
• More people connecting at higher speeds
• More people using the Web to shop and transact
  business
• gt40 of those with 4 years experience on the Web
  regularly shop and conduct Web commerce
• as opposed to only 12 of people who have been
  online for lt1 year

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eCommerce

• Introduction to eCommerce
• eCommerce Overview
• eCommerce Terminology

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How Companies Organize Net Activities
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eCommerce (EC) Definition

• Ecommerce is any form of business transaction in
  which the parties interact electronically rather
  than by physical exchanges or direct physical
  contact
• It is one of those rare cases where changing
  needs and new technologies come together to
  revolutionise the way in which business is
  conducted
• European Commission (1997)
• http//www.ispo.cec/be/Ecommerce/whatis.htm

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Ecommerce Terminology

• ECommerce
• Using Information Technology to support external
  business processes (eg marketing/selling products
  /or services)
• EBusiness
• Supporting both internal and external business
  processes

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It includes at least the following

• The exchange of goods services across an
  interactive digital network
• A computer-mediated virtual market with new
  relationships among businesses and consumers
• A digital means of exchange (digital money,
  ecash, secure credit card transactions)
• The increasing importance of digital information
  as a commodity

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eBusiness model

• Covers the support of the processes relations
  between business partners, co-workers and
  customers by electronic media

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eCommerce

• Is that part of the eBusiness which is aligned to
  the negotiation and settlement of obligatory
  business transactions.

Example http//www.amazon.com/
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Further e-terms

• E-Procurement
• the electronic support of the procurement
  processes (purchase) of an enterprise
• E-Marketing
• the electronic support of the sales marketing
  (and services) processes of an enterprise

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A Revolution?

• Traditional commerce
• Physical product a tangible, material object
• Physical process interactions between buyers,
  sellers, producers
• Physical agent People in a storefront
• eCommerce
• Digital product a digital object
• Digital process interactions between buyers,
  sellers, producers online
• Digital agent web storefront

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An Ecommerce (EC) manifesto

• Organisations must change to take advantage of EC
  opportunities
• Organisations must take EC into account when
  developing strategy
• EC is the strategic perspective that all firms
  must adopt, now in future
• An organisation that does not explicitly consider
  EC as a strategic imperative is making a critical
  error

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EC evolution in waves
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EC Could Be Seen As
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Levels of eCommerce
International Electronic distribution
National Electronic distribution
Company promotion
Pre/post sales support
International payment
National payment
Sales/ Simple transactions
Electronic presence
Shared business processes
Standard, simple, Many instances
Custom, complex, Few instances
http//www.ispo.cec.be/ecommerce/introduc.htm
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So, EC world is Interdisciplinary

• Consumer behaviour psychology
• Accounting auditing
• Production/Logistic
• Information systems
• Business ethics

• Management
• Business law
• Marketing
• Finance
• Economic
• Computer sciences

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Producing typical career profiles

• Generalist
• eBusiness-responsible person (integration of the
  divisions)
• Project manager eCommerce
• Sales manager eCommerce Products
• Director/conductor of a special product group
  (e.g. Smartcards)
• Specialist
• Web designer / Web master
• Web editor
• Internet Service Provider

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Examples

• www.ebay.com person to person EC
• www.amazon.com - retail
• www.yahoo.com - ecommerce portal

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Website Marketing and Design
Poitiers, September 23-27

• End of Sessions 1-2
• LUNCH!

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