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E-Marketing: A Consumer Behavior Perspective Professor: Jacques Nantel , Ph.D Director: RBC Financial group Chair in e-Commerce HEC Montréal May 2006 . World Wide. More and more people have access to the Web or other forms of e-commerce - PowerPoint PPT Presentation
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E-Marketing: A Consumer Behavior Perspective Professor: Jacques Nantel, Ph.D
Director: RBC Financial group Chair in e-CommerceHEC Montréal
May 2006
World Wide
• More and more people have access to the Web or other forms of e-commerce
• More and more are seeking information through the Web before buying
• More and more are actually buying on the Web
Source: eMarketer Sept 2005
U.S. e-retailing as a % of total Retail
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Active Home Internet Users by Country, November 2005
Country October2005
November2005
Change (%) One-MonthChange
Australia 9,935,596 9,887,757 -0.48 -47,838
Brazil 11,729,619 12,529,892 6.82 800,273
France 16,165,914 16,855,607 4.27 689,693
Germany 30,839,556 31,840,403 3.25 1,000,846
Italy 17,342,870 16,923,740 -2.42 -419,130
Japan 39,634,969 39,122,810 -1.29 -512,159
Spain 10,482,927 11,055,277 5.46 572,349
Sweden 4,852,251 4,810,817 -0.85 -41,434
Switzerland 3,510,823 3,602,570 2.61 91,747
UnitedKingdom
23,369,623 23,586,055 0.93 216,432
UnitedStates
142,174,091 142,704,415 0.37 530,325
Total 310,038,240 312,919,343 0.93 2,881,103
Source: Nielsen//NetRatings, 2005
But unlike what was thought 3 years ago
• With some exceptions (music) the Web doesn’t belong to pure players
• The Web doesn’t belong neither to conventional retailers
• The Web is truly Multi-Channel
Why are consumers active on the Web?
– Accessibility– Diversity– Customization – Prices
2- Relationship Marketing versus Mass marketing
Marketing through the Web
• How to get known
• Personalization and customization
How to get known
1. Your name
2. External advertising
3. Organic optimisation
4. Paid optimisation
5. Web advertising
How do consumers surf on the net while looking for a product or a service ?
Source: The e-tailing group (April 2004)
0% 5% 10% 15% 20% 25% 30%
Alternative Portals (eBay, Amazon etc)
Comparative portals
Traditional portals
Dont know
Affiliate Marketing
Search engine
Catalogue
Direct to the URL
How do consumers surf on the net while looking for a product or a service ?
Source: The e-tailing group (April 2004)
0% 5% 10% 15% 20% 25% 30%
Alternative Portals (eBay, Amazon etc)
Comparative portals
Traditional portals
Dont know
Affiliate Marketing
Search engine
Catalogue
Direct to the URL
25%
Optimisation on search engines
• Organic
• Paid
Basics of search engine optimisation
• Write good content• Use key Words (keyword, meta-tag)• Your domain name (URL)• Think about spelling • Write descriptive page titles • Use real headings • Use search engine friendly URLs • Get linked to • Use valid, semantic, lean, and accessible
markup • Don’t try to fool the search engines
Paid positions
• There is a nominal, one-time activation fee for Google AdWords. After that, you pay only for clicks on your keyword-targeted AdWords ads, or for impressions on your site-targeted AdWords ads. You can control your costs by telling us how much you're willing to pay per click or per impression and by setting a daily budget for spending.
For example, a new advertiser paying in USD can activate his/her AdWords account with just US$5.00, and can then choose a maximum cost-per-click (CPC) from US$0.01 - US$100.
Personalization(Wind Jerry (2001) Journal of Interactive Marketing
Personalization
• Reduces acquisition costs
• Increases loyalty
• Increases AOV
More than just transactions the Web is also a matter of information • On a site
– Cookies– Password
• Through consortiums (Double click)– Cookies– Ad Servers
• Third parties – Microsoft Passport– N-case – 180Solutions - MetricsDirect
What is done with it ?
• Site Personalization
• Cross Marketing
• Affiliate marketing
• Adapted advertising– http://www.180solutions.com/pages/
advertisers.aspx
Basic metrics
• CPM
• CTR
• CPC
• AOV
Strategies are getting more focused
2000 2004No of impressions 180 milliards 980 milliards
No of Web users 137 millions 193 millions
No sites/week. 41 268Ad market 8$ milliards 9.6$ milliardsCTR 2% 0,41%CPM 25$ 10.30$CPC 25$/20=1.20$ 10.30$/4=2.60$
More focused strategies