Launching a successful online business

Chapter 16

Launching a Successful

Online Business

Chap 16:Launching Online Business© Prentice Hall, 20042

Table of Content

Learning Objectives

OBODoing Business: Getting StartedDoing Business: Building the Web Site

Web Site HostingContent Creation and Management

Web Site DesignWeb Site Construction

Web Site Promotion

Customer Relationship Management

Managerial Issues

Summary


Learning Objectives

1. Understand the fundamental requirements for initiating an online business.

2. Describe the funding options available to startup businesses.3. Evaluate the options for hosting Web sites.4. Understand the processes and business decisions associated

with managing Web site development.5. Understand the importance of providing content that meets

the needs and expectations of the intended audience.6. Evaluate Web sites on design criteria such as appearance,

navigation, consistency, and performance.7. Know the techniques of search engine optimization to obtain

high placement in search engines.8. Understand the benefits of customer relationship

management through customer self-service, listening to customers, and increasing trust.

Home


OBO Sets Its Goals for Success

The ProblemOBO sells protective gear for field hockey goalkeepers OBO’s unique three-dimensional thermo-bonding manufacturing process produces equipment that is shaped to reflect the way the body moves By manufacturing a quality product and listening to the customer, OBO has become the market leader

OBO is based in a small provincial town in New Zealand that is a very long way from its principal markets OBO sells a niche product that is best sold thorough agents or stores to ensure a proper fit How does OBO use its Web site to market an experiential product to a global market from New Zealand?


The SolutionThe goals of the obo.co.nz Web site are:§ community building§ product sales§ research and development

Community building happens through:§ online discussion forums§ sponsored players§ an image gallery

The principal marketing and sales goal of the Web site is to:§ convince the visitor of the

value of the product§ direct the customer to a

store or agent to make the purchase

OBO Sets Its Goals for Success(cont.)

The Web site is a support mechanism for the brand and the sale of equipment through the agents

Research and development goal is met through:§ online surveys§ solicitation of players’

opinions of the products

§ focus groups


The Results

The OBO Web site is most successful at community building

The site also builds community by promoting a goalie-friendly approach to OBO’s customers Online product sales are modest because the Web site supports, not competes, with OBO’s agent network

Online sales are expected to grow because OBO has introduced a new line of clothes designed to be sold exclusively through the Web site

The focus groups deliver high-value feedback at almost no cost

The discussion forums contribute to both community building and feedback about OBO’s product

OBO Sets Its Goals for Success(cont.)


What we can learn…

A small company with a great product is using its Web site to reach its target markets in distant countries OBO is using the site to support business goals, as well as to meet the needs and expectations of its target audience

The Web site is simple and well designed, includes:§ “attractors” that

encourage customer interaction and keep customers coming back

§ content that promotes cross selling

§ effectively promotes sustainable customer relationships

Home OBO Sets Its Goals for Success(cont.)


Doing Business Online:Getting Started

Identifikasi kebutuhan konsumer dan kebutuhan bisnis.Investigasi PeluangKenali kemampuan yang dimiliki agar sesuai dengan kebutuhan.

Requirements that reflect the online nature of a business:

Kebutuhan untuk mengerti tentang budaya Internet.Pertimbangan produk dan jasa yang cocok.

Business formation process:


Business plan:Dokumen tertulis yang mengidentifikasi tujuan perusahaan dan menegaskan bagaimana perusahaan mencapai tujuannya.

Doing Business Online: Getting Started (cont.)

Business case:Dokumen yang digunakan untuk membenarkan investasi sumber daya internal serta sumber daya organisasi untuk aplikasi dan project yang lebih spesifik.

E-business planning


Business case:• Business case template

includes:• Goals• Cost savings• New revenue• Extra benefits• Cost of the solution• Net benefits• Recommendation


Penjelasan spesifik apa yang ingin dicapai dari bisnis.Perhitungan atas biaya yang dapat dihemat dalam bisnis.

Tambahan revenue baru yang akan didapat.Tambahan benefit yang berkaitan dengan project.Cost yang keluar sehubungan dengan projectPerhitungan laba bersih per periodeRangkuman keputusan yang direkomendasikan


Venture capital (VC):Money invested in a business by an individual or a group of individuals (venture capitalists) in exchange for equity in the business

Funding The Online Business



Angel investor:A wealthy individual who contributes personal funds and expertise at the earliest stage of business development

Incubator:A company, university, or not-for-profit organization that supports businesses in their initial stages of development



Home

1. Jelaskan tentang formation process.

2. Jelaskan tentang business plan dan business case serta bagaimana kontribusi keduanya terhadap keberhasilan.

3. Jelaskan tiga alternatif sumber dana.

Review Question Getting Started


Doing Business Online:Building the Web SiteClassifications of Web sites

Informational Web site:A Web site that does little more than provide information about the business and its products and services

Interactive Web site:A Web site that provides opportunities for the customers and the business to communicate and share information

vtwheaterworks.com

www.varas.co.ck


Attractors:Web site features that attract and interact with visitors in the target stakeholder groups.

Transactional Web Site:A Web site that sells products and services

Doing Business Online:Building the Web Site (cont.)

eat.com


Building the Web site

1. Select a Web host

2. Register a domain name

3. Create and manage content

4. Design the Web site

5. Construct the Web site and test

6. Market and promote the Web site

Doing Business Online:Building the Web Site (cont.)

Home


Home

1. Bedakan empat klasifikasi tentang website.

2. Jelaskan enam langkah dalam membangun Web Site.

Review Question Building The Web Site


Web Site HostingWeb hosting options:

Storebuilder service:A hosting service that provides disk space and services to help small and micro businesses build a Web site quickly and cheaply

ISP hosting service:A hosting service that provides an independent, standalone Web site for small- and medium-sized businesses Tabel

Store.yahoo.com


Web hosting service:A dedicated Web site hosting company that offers a wide range of hosting services and functionality to businesses of all sizes

Mirror site:An exact duplicate of the original Web site, but it is physically located on a Web server on another continent

Web Site Hosting(cont.)

Tabel

Indohoster.com


Co-location:A Web server owned and maintained by the business is placed in a Web hosting service that manages the server’s connection to the Internet

Self-hosting:When a business acquires the hardware, software, staff, and dedicated telecommunications services necessary to set up and manage its own Web site Tabel


Centrin.net.id


Contracting the Web host

The search for an ISP host:

contacting local ISPs for informationasking others in the business community for recommendationsconsulting with local telecommunications and computer user groups

Consider:service quality measuresguaranteed uptimenumber of clientscurrent traffic ratessoftware support securitysite traffic analysistechnical support servicescosts

Web Site Hosting(cont.)Back


Registering a domain nameDomain name:

A name-based address that identifies an Internet-connected server

Domain name registrar:A business that assists prospective Web site owners with finding and registering a domain name of their choice

Top Level Domain Name :

• Commercial business ( .com or .biz)• Not-for-profit business (.org or .info)• Government and Military (.go or .mil)



Selecting a good domain name: Make it memorable

Make it easy to spellAvoid numbers and special charactersKeep it short and sensibleBe flexibleThink about the futureGive products their own nameInvestigate the competitionAvoid trademarked names



Home Review Questions Web site Hosting

1. Jelaskan tentang berbagai macam web hosting.

2. Kriteria yang harus dipertimbangkan untuk memilih web hosting service.

3. Jelaskan tentang domain name.

Back


Benefit : Limitation :

Store Builder Service • Build website quickly and cheaply.

• Lack of a strong online identity (template).

ISP Hosting Service • Independent stand alone. • Most provider has limited functionality.

Web Hosting Service • All services included • More expensive.

Mirror Site • Reduce telecommunication cost

• Expensive.

Co-Location • Max control without need specialized staff.

• Expensive.

Self - Hosting • Maximum control and security.

• Most Expensive

Back


Content Creation and Management

Content:The text, images, sound, and video that make up a Web page

Commodity content:Information that is widely available and generally free to access on the Web

Premium content:Content not available elsewhere on the Web


Content Creation and Management(cont.)

How Web Visitors Evaluate ContentCriteria (and related ”subcriteria”) Explanation

• Relevance (applicable, related, and clear)

Ø Concerned with issues such as relevancy, clearness, and “goodness” of the Information

• Timeliness (current, continuously update)

Ø Concerned with the currency of the information

• Reliability (Believable, accurate, consistent)

Ø Concerned with the degree of accuracy, dependability, and consistency of the information

• Scope (Sufficient, complete, covers, detailed)

Ø Evaluates the extent of information, range of information, and level of detail provided by the website.

• Perceive (informative, valuable, instrumental)

Ø Visitor’s assessment of the likehood that the information will enhance their purchasing decision.


Cross selling:Offering similar or related products and services to increase sales

Up selling:Offering an upgraded version of the product in order to boost sales and profit

Content Creation and Acquisition

Promotion:secondary content that can increase sales or improve customer service

Comment:further explanation about the product can be offered after introducing the product



Creating contentcollecting all currently available contentvalue of additional content is assessed for inclusion in the Web siteconsider how content will serve the site’s goals and whether customers expectedcreated by customers through reviews etc.

Buying contentContent can be purchased or licensedOutside sources Content should be supplemental contentIf primary content is purchased and no value is added, visitors will go to the originating site and not return



Personalizing contentPersonalized content:Web content that is prepared to match the needs and expectations of the individual visitor

Delivering content by e-newsletter

E-newsletter: A collection of short, informative articles sent at regular intervals by e-mail to individuals who have an interest in the newsletter’s topic



Writing effective content

5. Consistency in site content can be achieved using a style guide

6. Make the material available in a .pdf file when necessary

7. Create compelling links that encourage a reader to click

8. External links can offer good content for visitors

9. Avoid material that is not highly valued by customers

1. Write scannable text2. Break long sections

into smaller ones with clearly noted headings

3. Grab the reader’s attention at the beginning of every page and section

4. Write in a tone and with language that reflects the purpose of the material



Content managementContent Creation and Management

(cont.)

The process of adding, revising, and removing content from a Web site to keep content fresh, accurate, compelling, and credible

Content removalExpired pages should be deleted or moved to an off-line location that can serve as an archive

Content testing—frequent checks of material for:

AccuracyClarityTypos

poor punctuationmisspelled wordsinconsistencies



Content management software

Allows nontechnical staff to create, edit, and delete content on the company’s Web site

Purchasing a content management software

1. Do a thorough needs analysis

2. Document requirements and discuss with at least two companies that have purchased a CMS

3. Start small with CMS that has a trial version or low entry cost

4. Assess the system after 30 days

5. Repeat the assessment process regularly


Home Review Questions Content Management

1. Jelaskan apa yang dimaksud dengan content.

2. Hal apa saja yang akan dievaluasi oleh visitor tentang content.

3. Selain memberikan informasi tentang produk, jelaskan tujuan lain yang ingin dicapai

4. Jelaskan mengenai content yang efektif.

Back


How Web Visitors Evaluate Web Site DesignCriteria (and related ”subcriteria”) Explanation

• Access (responsive, loads quickly)

Ø Refers to the speed of access and the availability of the web site at all time

• Usability (simple layout, easy to use, well organized, visually attractive, fun, clear design)

Ø Concerned with the extent to which the web site is visually appealing, consistent, fun, and easy to use.

• Navigation Ø Evaluates the links to needed information

• Interactivity (customized product, search engine, and find related items)

Ø Evaluates the search engine and the personal features (e.g. shopping cart) of the web site.

Web Site Design


Web Site DesignThe goal of any Web site is to deliver quality content to its intended audience and to do so with an elegant design 1. Navigation

2. Consistency3. Performance4. Appearance5. Quality assurance6. Interactivity7. Security8. Scalability

Web site design criteria:


Web Site Design (cont.)

Information architecture

How the site and its Web pages are organized, labeled, and navigated to support browsing and searching throughout the Web site

Site structure is:hierarchicalcircular linear

Getting the homepage right is criticalAll pages within the site should link back to the homepage






Organizing and labeling the site support browsing and searching:


Obey the three-click rulePlace the most important content at the top of the pageKeep pages shortKeep page layouts simpleFollow commonsense publishing rulesMake the primary content easy to findShow the products in many ways


Site navigationWeb Site Design (cont.)

Aids that help visitors find the information they need quickly and easily

§ The simplest navigation aid is a navigation bar at the top and bottom of each page

§ Frame: An HTML element that divides the browser window into two or more separate windows


Other suggestions for designing successful Web site navigation:


Use small lists and menusDo not rely entirely on graphical images for navigationMake the homepage easy to findIntegrate navigation into contentAvoid framesFollow accessibility guidelines




ConsistencyWeb Site Design (cont.)

Look and feel:The elements that visually distinguish a site from any other, including layout, typeface, colors, graphics, and navigation aids

Elements of page content also should be consistent:

company logocontact informationshort, descriptive title

Design a Web site for all of these browsers, but to use designated World Wide Web Consortium standards


PerformanceWeb Site Design (cont.)

Speed ranks at or near the top of every list of essential design considerations

The most widely recognized cause of long download times is a large graphic or a large number of small graphics on a single page

12-second rule: Every page on the Web site should appear within 12 seconds

4-second rule: something should appear in the visitor’s browser in 4 seconds or less


Colors and graphics rules:Web Site Design (cont.)

Match the expectations of the target audienceUse standard colorsFollow color standardsUse complementary colorsSpecify the background color

Use bandwidth-intensive features selectivelyDesign for visually or hearing-impaired visitorsUse the ALT tagAvoid distracting features


Quality assuranceWeb Site Design (cont.)

make sure the Web site design is properly tested before it is launchedensure that it continues to perform up to expectations after launch

design the site for easy maintenanceresponsible owners frequently test all features of the site personallyquality Web sites are tested regularlyWeb site performance is also an ongoing concern


Home Review Questions web site design

1. Hal apa saja yang akan dievaluasi oleh visitor tentang design sebuah website.

2. Jelaskan delapan kriteria yang digunakan untuk menilai sebuah website.

3. Jelaskan tentang site struktur

4. Jelaskan tentang site navigation

Back


Web Site ConstructionWho builds the Web site?Companies build their own site because:

Use of existing in-house expertiseDesire to build in-house expertiseProtection of proprietary technologiesTighter control and responsiveness

External Web site development:When the business hires another firm to build and/or maintain the Web site

Speed to marketNot a core competencyAccess to special expertise


Web Site Construction (cont.)

Web site construction:The initial content creation, design, programming, and installation phases of a Web site’s development

Web Site Construction and Maintenance

Web site maintenance:The on-going process of keeping the Web site open for business, managing content, fixing problems, and making incremental additions to the site


Managing Web site construction:


Start with a planSet goals early and stick to themUse a fixed-price contractJustify graphics and features


Accepting credit cards


Card-not-present (CNP) transaction:

When there is no signature and no verification of the credit card signature by the merchant

To accept credit cards online a company must:

Open a merchant accountPurchase credit card processing softwareIntegrate the credit card processing software into the transaction system


Home Review Questions web site construction

1. Jelaskan pihak mana saja yang memungkinkan untuk mengembangkan website.

2. Jelaskan perbedaan antara site construction dan site maintenance.

Back


Web Site PromotionInternal Web site promotion

Include content that establishes the site as a useful site for customers to remember so that they return and make a purchase

Signature file: A simple text message an e-mail program automatically adds to outgoing messages


Web Site Promotion (cont.)

Search engine optimization (SEO):

The application of strategies intended to position a Web site at the top of Web search engines

The key to SEO is understanding the algorithms the search engines use to determine the ranking of the results returned to the searcher


Strategies for keyword creation and placement:


Create keywords the target audience is most likely to useUse specific phrases, not general keywordsOptimize the titleUse meta tags

Meta tag: An HTML element that describes the contents of a Web page

Use keywords early and often in page contentInclude keywords in ALT tagsAvoid spider-hostile featuresDo not spam search engines


Strategies for maximizing link popularity:


Visit competitorsSeek highly placed linksSeek links from well-known sitesDo not use free-for-all (FFA) or link farms

Create content that promotes linkingSeek reciprocal linksDetermine what sites already link to the target site


Home Review Question web site promotion

1. Apa yang dimaksud dengan internal web site promotion.

Back


Customer Relationship Management

Customer relationship management (CRM):

A customer service approach that focuses on building long-term and sustainable customer relationships that add value for the customer and the company


Customer Relationship Management (cont.)Using content to

create customer relationships

Provide membershipPersonalize the user experienceSupport usersCommunicate via the communityReward visitorsMarket effectivelySet up smart affiliate relationships

Tawarkan registrasi untuk akses lebih banyak.Hadirkan content yang menunjukan minat user pada kunjungan sebelumnya.Sediakan kenyaman dan respon cepat untuk user.Biarkan visitor untuk berkomunikasi dgn lainnya.Berikan penghargaan kepada visitor atas kunjungannya.Promosikan content website dan produk dengan tetap menjaga customer yang sudah ada.Kembangkan relationship dgn consumer dan commercial web publisher.


Customer self-service with FAQ pages:

Customer Relationship Management (cont.)

A Web site page that lists questions that are frequently asked by customers and the answers to those questions

Characteristics of an effective FAQ page:

The FAQ page is easy to findThe FAQ page loads fastThe questions are easy to findThe answers are written from a customer’s perspectiveThe answers do not repeat information offered elsewhereOffer an opportunity to ask a question not on the FAQThe FAQ page is never done


Listening to customers

Customer Relationship Management (cont.)

Mine e-mail for informationSurvey customers quickly and frequentlyCreate an e-mail list

E-mail discussion list: A group of people who share a common interest and who communicate with each other via e-mail messages managed by e-mail list software

Create a discussion forum

Electronic discussion forum: A portion of the Web site where visitors can post questions, comments, and answers

Create a chat groupChat group: A portion of the Web site where visitors can communicate synchronously


Increasing trustCustomer Relationship Management

(cont.)

Trust:A psychological state-

of-mind when two or more parties are willing to pursue further interactions to achieve a planned goal

Ways to increase trust:Tell the customer about the companyInclude testimonials from loyal, satisfied customersProvide numerous opportunities for feedbackAnswer customer e-mail promptlyProvide information to the customer about an order

Home


Managerial Issues

1. What does it take to create a successful online business?

2. Is creating a Web site a technical task or a management task?

3. How do we attract visitors to the Web site?

4. How do we turn visitors into buyers?

Home


Summary1. Fundamental requirements for initiating an online business.

2. Funding options for a start-up online business.

3. Web site hosting options for an online business.

4. Web site construction options for an online business.

5. Provide content that attracts and keeps Web site visitors.

6. Design a visitor-friendly site.

7. High placement in search engines is key.

8. Customer relationship management can contribute to success.

Go Home


Back


Back


Back


Back


Back


Back


Back


Back