Strategies for Marketing, Sales, and Promotion
Strategies for Marketing, Sales, and Promotion Key points
Creating an effective Web presence
Indentifying and Reaching Customer
Creating and Maintaining Brands on the Web
Business models for Selling on the Web
Creating an effective Web presenceIdentifying Web Presence
Goals
Achieving Web Presence Goals
Meeting the Needs of Web Site Visitors
Usability Testing
Indentifying and Reaching CustomerThe Nature of Communication on
the Web
New marketing approaches for the Web
Technology Enabled Relationship Management
Creating and Maintaining Brands on the WebElements of
Branding
Emotional Branding vs. Rational Branding
Other Web Branding strategies
Coasts of Branding
Web Site Naming Issues
Business models for Selling on the WebSelling Goods and
Services
Selling information or other Digital content
Advertising-Supported Model
Advertising-Subscription Mixed Model
Fee-for-Transaction Models
Creating an effective Web presenceBusinesses have always created
a presence in the physical world by building stores, factories,
warehouses, and office buildings.
An Organizations presence is the public image it conveys to its
stakeholders
The stakeholders of a firm include its customers, suppliers,
employees, stockholders, neighbors, and the general public.
Creating an effective web presence can be critical even for the
smallest and newest firm operating on the web.
Creating an effective Web presenceIdentifying Web Presence
GoalsPhysical space focuses on specific objectives like Location
convenient for customer to findSufficient floor space and features
to allow the selling activity to occur Balance the need for room to
store inventory and provide employees working space with the costs
of obtaining that spaceIt is more on satisfying these other
objectives than a designing the space.
Creating an effective Web presenceWhereas On the Web-We have the
luxury of intentionally creating a space that creates a distinctive
presenceCan perform many image-creation and image-enhancing tasks
effectively. It can serve as a sales broacher, a product showroom,
a financial report, an employment ad, or a customer contact
pointEach entity that establishes a web presence should decide
which tasks the web site must accomplish and which are the most
important to include
Creating an effective Web presenceAchieving Web Presence GoalsAn
effective site is one that creates an attractive presence that
meets the objectives of the business or other organizationThese
objectives includesAttracting visitors to the web siteMaking the
site interesting enough that visitor stay and exploreConvincing
visitors to follow the sites links to obtain informationCreating an
impression consistent with the organizations desired
imageReinforcing positive images that the visitor might already
have about the organization
Creating an effective Web presenceHow the web is differentMost
of the sites are designed to create an organizations presence in
the web medium include links to standard information setThe site
should give visitor easy access toA historyStatement of objectives
or mission statementInformation about products and
servicesFinancial information andA way to communicate with
organizationSuccess of the site is largely depends upon how they
offer this information
Creating an effective Web presenceVisitors arrive for many
reasonsLearning about products or services that the company
offersBuying the products or services that the company
offersObtaining information about warranties or service and repair
policies for products they have purchasedObtaining general
information about the company or organizationObtaining financial
information for making an investment or credit granting
decisionIdentifying the people who manage the company or
organizationObtaining contact information for a person or
department in the organization
Creating an effective Web presenceMeeting the needs of the Web
site visitors
Businesses should try to meet the goals summarized below Convey
an integrated image of the organizationOffer easily accessible
facts about the organizationAllow visitors to experience the site
in different ways and at different levelsProvide visitors with a
meaningful, two-way (interactive) communication link with the
organizationSustain visitor attention and encourage return
visitsOffer easily accessible information about products and
services, and how to use them
Creating an effective Web presenceUsability Testing usability
hintsDesign the web site around how visitors will navigate the
links, not around the companys organizational structureAllow
visitors to access information quicklyAvoid using inflated
marketing statements of product or service descriptionAvoid using
business jargon and terms that visitors might not understandBuild
the site to work for visitors using the oldest browser software on
the oldest computer connected through the lowest bandwidth
connection- means creating multiple versions of web pagesBe
consistent in use of design features and colorsMake sure that
navigation controls are clearly labeled or otherwise
recognizableTest text visibility on smaller monitorsCheck the color
combinations do not impair viewing clarity for colorblind
visitors
Indentifying and Reaching CustomerThe Nature of Communication on
the Web
New marketing approaches for the Web
Technology Enabled Relationship Management
Indentifying and Reaching CustomerThe Nature of Communication on
the Web Two general ways of identifying and reaching
customers:Personal contact andMass mediaPersonal contact model The
firms employees individually search for , qualify and contact
potential customersAlso called as prospectingMass media model Firms
prepare advertizing and promotional materials about the firms and
products and servicesDelivered through broadcasting through radio/
TV, printing them in newspaper and magazines, Posting them on
highway billboards or mailing them
Types of interactionsOne-to-many Mass media Seller sends out
carefully produced messagesto a large audience. Seller is active;
buyer is passive. One-to-one Personal contact Salesperson interacts
with customer directly. Trust building is important. Both seller
and buyer participate actively.
The WebMany-to-one Many active potential customers seek out
information from resources produced by the seller. Example: Book
review sites, fan sites One-to-oneE-mail contact with a seller
Many-to-manyNewsgroups and interactive Web sites Primary
characteristic: The buyer is active andcontrols the length, depth,
and scope of thesearch.
Effectiveness of mass mediaMass media efforts are measured by
estimates ofaudience size, circulation, or number of addresses.
Money spent on mass media is in dollars per each thousand people
in the estimated audience.
This pricing metric is called cost per thousand andis often
abbreviated CPM.
MicromarketingAs mass media lost its effectiveness (new and
improved!), one approach was to divide a pool of potential
customers into segments. This is called market segmentation.
Targeting very small market segments is called micromarketing.
Micromarketing is expensive using traditional means, but more cost
effective on the Web.
ComparisonsThe Web has: Better effectiveness than mass media
More trust than mass media Lower cost than personal contact Less
trust than personal contact It is believed that a move toward the
sideof personal contact is more effective. Increase the trust level
Increase the personalization
Indentifying and Reaching CustomerNew marketing approaches for
the WebThe Web is an intermediate step between mass media and
personal contact
High level trustPersonal contactThe webMass mediaLow level
trust
Technology and marketingTechnology-enabled relationship
management is when a firm obtains detailed information about
customer preferences, needs, behavior and buying patterns and uses
that information to: set prices negotiate terms tailor promotions
add product features customize its relationship with the
customer.
Seven customer interaction dimensions
DimensionsTechnology-enabled relationship managementTraditional
relationships with customersAdvertisingProvide information in
response to specific customer inquiriesPush and sell a uniform
message to all customersTargetingIndentifying and responding to
specific customer behaviors and preferencesMarket
segmentationPromotions and discount offeredIndividually tailored to
customerSame for all customersDistribution channelsDirect or
through intermediaries; customers choiceThrough intermediaries
chosen by sellerPricing of products or servicesNegotiated with each
customerSet by seller for all customersNew product featuresCreated
in response to customer demandsDetermined by seller based on
research and developmentMeasurements used to manage the customer
relationshipCustomer retentions; total value of the individual
customer relationshipMarket share; profit
Creating and Maintaining Brands on the WebElements of
Branding
Emotional Branding vs. Rational Branding
Other Web Branding strategies
Coasts of Branding
Web Site Naming Issues
Creating and Maintaining Brands on the WebA known and respected
brand name can present to potential customers a powerful statement
of quality, value and other desirable qualities in one recognizable
elementIt is easy to advertise and promote because each product
carries a reputation of the brand nameCompanies have developed and
nurtured their branding programs in physical marketplace for many
years.
Creating and Maintaining Brands on the WebThe key elements of
Branding areDifferentiationRelevancePerceived value
This makes branding for commodity products like salt or plywood
more difficult
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A characteristic that sets the product apart fromsimilar
products.
Examples: Ivory soap: It floats Dove soap: 1/4 moisturizing crme
Palmolive dish soap: Mild on your hands Dawn dish soap: Takes
grease out of your wayDifferentiation
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The degree to which the product offer utility to apotential
customer.
The customer must be able to see themselves purchasing and using
the product.
Examples: Cadillac Hyundai MinivansRelevance
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The product must have some identified value.
Products can be different than others and peoplecan see
themselves using it, but it may not havevalues that they
desire.
Example: Subway sandwich ads comparing fat values of their
product to those found in MacDs.Perceived value
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Ted Leonhardt: Brand is an emotional shortcutbetween a company
and its customer
Emotional appeals work well on television, radio,billboards, and
print media since the viewer is apassive recipient of
information.
On the Web it is easy to click away from
emotionalappeals.Emotional branding
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Rational branding offers to help Web users in someway in
exchange for their viewing an ad.
Functional assistance replaces emotional appeals.
Examples: Free e-mail services such as HotMail Free Web hosting
such as HyperMart ShopSmart! program from MastercardRational
branding
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Leverage success in one area into another area.Example: Yahoo!
Affiliate marketing: Descriptions, reviews or otherinformation
about a product on one site are linkedto pages on another site
allowing you to purchasethat item.Example: Amazon.com Serving as a
market intermediary between buyersand sellers.Example: Wedding
ChannelOther branding strategies
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Transferring existing brands to the Web or usingthe Web to
maintain an existing brand is easierand less expensive than
creating a new brand.Example: Catalog sales companies
Attempting to create a brand on the Web mayinvolve spending on
traditional mass mediasuch as television, print, and radio.Example:
In 1998 Amazon.com spent $133million and BarnesandNoble.com spent
$70million, much of it on traditional advertising.Costs of
branding
Web Site naming issue.
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Selling goods and servicesBased on the mail order catalog
business Selling information or other digital contentCan be used to
expand markets and cut costs Advertising supportedUsed by American
network television Advertising-subscription mixedSupported via both
fees and advertising Fee-for-transactionThe use of information
filtering for profitBusiness models for the Web
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Used for apparel, computers, electronics, and gifts. The printed
catalog is replaced or supplemented byinformation on the Web site.
Customers may purchase via phone. (Why?) Fabric swatches are
usually available. (Why?) Examples: Dell computers: Flexibility
Lands End: Overstocks FTD Florists: Traditional advertising
Buy.com: DiscountingSelling goods and services
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The Web is an efficient means for selling information. Legal
research: Lexis Publishing Digital copies of documents: ProQuest
Electronic versions of journals: ACM Digital LibraryReference
materials: Encyclopedia BritannicaSelling digital content
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The success of Web advertising has been hamperedby two major
problems: There is no consensus on how to measure and charge for
site visitor views.Examples: Number of visitors, number of
uniquevisitors, number of click-throughs. Very few Web sites have
sufficient number of hitsto interest large advertisers.Targeted
advertising requires that demographicsbe collected, a sensitive
privacy issue.One success: Employment advertisingAdvertising
supported
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Subscribers are subject to less advertising and havegreater
access to the resources of the site. Popular with online
newspapers. Examples The New York Times The Wall Street Journal
Reuters ESPNAdvertising-subscription mixed
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Value-added services are sold in exchange for acommission.
Travel agencies Travelocity Expedia Automobile sales Autobytel: An
example of disintermediation Stockbrokers Insurance
companiesFee-for-transaction
