Internet Marketing - Poitiers 2003 1< © Copyright 2003 The Results Network >

Internet Marketingand Web Design

Marketing StreamESCEM, Poitiers – September 22-26, 2003

Guest Professors:Marty Huisman <Markety> Tom Leuchtner

<InMentors>

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Session 9:

Business Plan Presentations, Workshop

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End Session 9:

Business Plan Presentations, Workshop

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The (online) purchasing process

Identified need

Inform

ation

EvaluateChoose

Purc

has

e

How should my sitesupport the customer

in this process?

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Session 10:

Website Evaluation

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End Session 10:

Website Evaluation

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Session 11:

Website Prototype Workshop

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End Session 11:

Website Prototype Workshop

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Competing Against the Net

• Selective price discounts– Bricks and mortar merchants can offer discounts for

products that can also be bought online• Concentrating attention on late adopters of technology

– Some consumers have a lot of fear, uncertainty and doubt about the online shopping experience

– This slows their defection to new online outlets

Retailer Responses to the eCommerce Challenge

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Competing Against the Net

Creating and staging experiences

• Pine and Gilmore stress that the economy is evolving toward experienced-based value

• Retailers function less as sellers of products than as stagers of events

Retailer Responses to the E-Commerce Challenge

Stage Experiences

Deliver Services

Make Goods

Extract Commodities

Market PremiumPricing

Un

diff

ere

nti

ate

dD

iffere

nti

ate

dC

om

peti

tive P

osit

ion

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Competing Against the Net

Adopt the Internet to create a hybrid system• Bricks and mortar retailers can move certain parts of their retailing

function online• Physical locations often a superior way to

– Acquire customers– Set up customer relationships– Create a strong retail brand image

• The online presence– Drives business to the physical locations– Provides 24/7 convenience for loyal customers– Adds new functionality – gift registries and shopping services

Retailer Responses to the E-Commerce Challenge:

‘Clicks and Mortar’

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Bargaining Power Determines Who Bears Risk

• Powerful sites shift risk to advertisers and demand sponsorships

• Powerful advertisers demand accountability and negotiate for prospect fees of a share of transaction revenue

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The Many Ways to Pay Online

Figure 5.8

Paid

Traffi c

Impressions

Visits

Buyers

Leads

Sponsorship Co- Brand

Downloads

Users

L1 - Time

L2 - I mpressions

L3 - Results

L4 - Expenditure

Possible Payment Approaches

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Payment Mechanisms

Which Company Bears the Risk?

SponsorshipFixed Payment

Banner AdsImpressions

Prospect FeesClick

Through

Sales Commissions

Purchase

Risk Increases for the Web Site Being Paid

• Sponsorship least risky: fixed payment• Banner Ads: payment depends on impressions• Prospect Fees & Sales Commissions: depend on success of site and

advertiser

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In Groups you will:

• Create basic business plan• Determine focus of business• Target strategy with web• Define objectives for internet/web

presence• Define web project initiative

– Who what when where how

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Session 12:

Website Building Workshop

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End Session 12:

Website Building Workshop