Entrepreneurship & Commerce in IT
13
Sachintha Gunasena MBCShttp://lk.linkedin.com/in/sachinthadtg
Recap so far…
Sachintha Gunasena MBCShttp://lk.linkedin.com/in/sachinthadtg
Web Payment Systems
• Payment systems • Credit-card e-commerce transactions • E-commerce digital payment in the B2C
arena • Electronic billing and presentment systems
Today…
Sachintha Gunasena MBCShttp://lk.linkedin.com/in/sachinthadtg
Web Marketing Concepts
• The Internet audience • Internet traffic patterns • Type of Internet connection: broadband impacts • Consumer behavior models • What consumers shop for and buy online • How shoppers find vendors online • Basic marketing concepts • Internet marketing technologies • Advertising networks • Branding strategies
The Internet Audience
Audience• a group of people who participate in a show or
encounter• a work of art, • literature (in which they are called "readers"), • theatre, • music (in which they are called "listeners"), • video games (in which they are called "players"), • or academics in any medium.
Audience Participation
• Audience members participate • in different ways • in different kinds of art;
• Some events invite overt audience participation
• and others allowing only modest clapping and criticism and reception.
The Internet Audience
• Through the Internet, • every person is given the opportunity • to participate in different ways.
Internet Traffic Patterns
Traffic• the flow in and out• or passage of
• motorized vehicles, unmotorized vehicles, and pedestrians on roads;
• or the commercial transport and exchange of goods;
• or the movement of passengers or people.
Traffic in Computing & Technology
• Internet Traffic• the flow of data around the Internet
• Network Traffic• the flow of data around a network
• Teletraffic• traffic on a communications network
• Web Traffic• the amount of data sent and received by visitors to a web
site
Internet Traffic Sources
• file sharing• p2p
• bit torrent• streaming media
• youtube
Internet Traffic Management
• Managed through ISP’s
Monitoring the Internet Traffic
• to be discussed• http://www.audiencedialogue.net/kya15b.ht
ml
Monitoring the Internet Traffic
• http://www.internettrafficreport.com
Type of Internet Connection:
Broadband Impact
Impact of Broadband on E-Commerce
• to be discussed
Consumer Behaviour Models
Consumer vs Buyer• Consumer
• a person or organization that uses economic services or commodities.
• pays to consume goods and services produced• Buyer
• any person who contracts to acquire an asset in return for some form of consideration.
• purchases finished goods, typically for resale, for a firm, government, or organization.
Consumer Behaviour• the study of • individuals, groups, or organizations • and the processes they use • to select, secure, use, and dispose of
products, services, experiences, or ideas to satisfy needs
• and the impacts that these processes have on the consumer and society.
Consumer Behaviour Cont.d
• It blends elements from • psychology, • sociology, • social anthropology, • marketing • and economics.
Understanding Consumer Behaviour
• While it is important to come up with a product or a service with exceptional quality,• having a clear grasp of how your target
consumers react or behave • and what factors affect their buying patterns
and behavior • will enable you to address their needs • and establish a more successful business.
before that…why does a consumer needs to buy something in the first
place?
Understanding Consumer Behaviour - Maslow’s Hierarchy
of Needs
Understanding Consumer Behaviour - Maslow’s Hierarchy of
Needs Cont.d• Physiological Needs
• must haves for human survival• primary - water, air, food,• secondary - clothing, shelter,
• Safety Needs• personal, financial, health & well being, safety net against
disaster/illness• Love and Belonging
• friendship, intimacy, family
Understanding Consumer Behaviour - Maslow’s Hierarchy of
Needs Cont.d• Esteem
• need to be self-respected• Self-Actualisation
• “what a man can be, he must be”• Self-Transcendence
• The self only finds its actualization in giving itself to some higher goal outside oneself, • in altruism and spirituality.
Models of Consumer Behaviour
• Traditional Models• primary scenarios
• Contemporary Models• simultaneous
Traditional Models of Consumer Behaviour
• Economic Model• Learning Model• Psychoanalytical Model• Sociological Model
Contemporary Models of Consumer Behaviour
• The Howard Sheth Model of Buying Behaviour• The Nicosia Model• The Engle-Collat-Blackwell Model• Engle, Blackwell and Miniard (EBM) Model• Webstar and Wind Model of Organisational
Buying Behaviour• The Sheth Model of Industrial Buying
Economic Model• focuses on the idea that a consumer’s buying pattern is
based on the idea of getting the most benefits while minimizing costs.
• can predict consumer behavior based on the consumer’s purchasing power and the price of competitive products.
• For example, • a consumer will buy a similar product that is being
offered at a lower price to maximize the benefits; • an increase in a consumer’s purchasing power will
allow him to increase the quantity of the products he is purchasing.
Learning Model• based on the idea that consumer behavior is governed by
the need to satisfy basic and learned needs. • Basic needs - food, clothing and shelter• Learned needs - fear and guilt
• Thus, a consumer will have a tendency to buy things that will satisfy their needs and provide satisfaction.
• A hungry customer may pass up on buying a nice piece of jewelry to buy some food, • but will later go back to purchase the jewelry once her
hunger is satisfied.
Psychoanalytical Model
• this model takes into consideration that consumer behavior is influenced by both the conscious and the subconscious mind.
• The three levels of consciousness discussed by Sigmund Freud (id, ego and superego) all work to influence one’s buying decisions and behaviors.
• A hidden symbol in a company’s name or logo may have an effect on a person’s subconscious mind • and may influence him to buy that product
instead of a similar product from another company.
Sociological Model• this model primarily considers that a consumer’s buying
pattern is based on his role and influence in the society. • A consumer's behavior may also be influenced by the
people he/she associates with and the culture that her society exhibits.
• For instance, • a manager and an employee may have different buying
behaviors given their respective roles in the company they work for,
• but if they live in the same community or attend the same church, they may buy products from the same company or brand.
Howard Sheth Model of Buying Behaviour
• to be discussed
Howard Sheth Model of Buying Behaviour Cont.d
Nicosia Model
• to be discussed
Nicosia Model Cont.d
Engel-Kollat-Blackwell (EKB) Model
• to be discussed
Engel-Kollat-Blackwell (EKB) Model Cont.d
Engel-Blackwell-Minirad (EBM) Model
• to be discussed
Engel-Blackwell-Minirad (EBM) Model Cont.d
Engel-Blackwell-Minirad (EBM) Model Cont.d
Consumer Behaviour Model
Consumer Purchase Behaviour
• Awareness ( Need Recognition )• Mass Media
• Search • Catalogs , Sales People , Mass Media , Store Visits , Search engines , site
visits• Evaluation of Alternatives
• Reference Groups , Mass Media , Product Reviews • Purchase
• Promotions , online promotions , discounts • Post Purchase Behavior
• online updates , customer emails
Buyer vs Seller Roles
• to be discussed.
What Consumers Shop for & Buy
Online
what consumers shop for and buy online
• To be discussed in class as this is a general awareness topic.
How Shoppers Find Vendors Online
How to find vendors online
• To be discussed in class as this is a more general awareness topic.
Basic Marketing Concepts
What is Marketing?
• Marketing is a social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others• PHILIP KOTLER
Needs, Wants, Demands
• NEEDS : • A state of felt deprivation of some basic satisfaction
( Food, Clothing, Shelter, Belonging etc. )• WANTS :
• Wants are desires for specific satisfiers of the deeper needs. Needs are few and wants are many .
• DEMANDS : • are wants backed by ------Ability to buy and
Willingness to buy
Products / Offers / Satisfiers / Resources
• Anything that can be offered to someone to satisfy a need or want is a product.
• Product refers to physical object • Services refer to intangible object
Value & Satisfaction• Value
• is the customers’ estimate of the Product’s capacity to satisfy a set of goals
• is the ratio between what the customer gets and what he gives (V=B/C)
• Customer gets benefits & assume costs • WHEN :
• Customer Expectance = Performance => satisfied• Customer Expectance > Performance => dis-satisfied• Customer Expectance < Performance => Highly satisfied
Exchange & Transaction
• Exchange • is the act of obtaining a desired product by offering something in
return• takes place when 5 conditions are satisfied:
(a) Two parties should be there
(b) Each party must have something of value to the other
(c) Each party is capable of communication & delivery
(d) Each party is free to accept or reject the offer
(e) Each party believes that it is appropriate to deal with the other party
What is a Market?• A market consists of
• all the potential customers • sharing a particular need or want • who might be willing and able • to engage in exchange • to satisfy that need or want.
What is Marketing?
• the management process which identifies, anticipates, and supplies customer requirements efficiently and profitably
Business is Marketing• Marketing can not be considered as a separate
function, • it is the whole business, • seen from the point of view of its final
results…• that is profit,• through customer satisfaction
• PETER DRUCKER
A Simple Marketing System
What is Marketing Management?
• the analysis, planning, implementation and control of programs designed • to create, build and maintain beneficial
exchanges and relationships with target markets
• for the purpose of achieving Organisational objectives.
State of Demand & Marketing Task
Evolution of Marketing Management
• Marketing management has evolved through following stages :
(1) Production Orientation Stage
(2) Sales Orientation Stage
(3) Marketing Orientation Stage
(4) Social Responsibility & Human Orientation Stage
Marketing Concepts• FIVE competing concepts under which
organizations conduct their marketing activities:
1. The Production Concept
2. The Product Concept
3. The Selling Concept
4. The Marketing Concept
5. The Societal Marketing Concept
The Production Concept
• Consumers will favour those products that are widely available and low in cost.
• Therefore increase production and cut down costs.
• And build profit through volume.
The Product Concept• Consumers will favour those products that
offer the most quality, performance, or innovative features.
• Therefore, improve quality, performance and features.
• This would lead to increased sales and profits.
The Selling Concept
• Consumers, if left alone, will not buy enough of company’s products.
• Therefore, promote sales aggressively.• And,build profit through quick turnover.
The Marketing Concept• The key to achieving organizational goals
consist in • determining the needs and wants of target
markets • and delivering the desired satisfactions • more effectively and efficiently than
competitors.• And build profit through customer satisfaction
and loyalty.
The Societal Marketing Concept
• It is Marketing Concept + Society’s well being.
• Balancing of following three considerations while setting marketing policies : • Customer’s want satisfaction • Society’s well being • Company’s profits
Marketing
• a lot more to learn• will discuss some of the concepts in a later
session
Internet Marketing Technologies
Internet Marketing Technologies
• to be discussed on the next session
Advertising Networks
Advertising Networks
• a company that connects advertisers to web sites that want to host advertisements
• key function is aggregation of ad space supply from publishers and matching it with advertiser demand
Branding Strategies
Branding• The marketing practice of creating
• a name, • symbol • or design • that identifies and differentiates • a product from other products .
Branding Cont.d
• your brand is your promise to your customer
• tells them what they can expect from your products and services, and it differentiates your offering from that of your competitors
How to define a Brand?
• What is your company's mission?• What are the benefits and features of your
products or services?• What do your customers and prospects
already think of your company?• What qualities do you want them to
associate with your company?
How to create a Brand
• Get a great logo. • Place it everywhere.
• Write down your brand messaging. • What are the key messages you want to
communicate about your brand? • Every employee should be aware of your
brand attributes.
How to create a Brand Cont.d
• Integrate your brand. • Branding extends to every aspect of your
business• how you answer your phones, • what you or your salespeople wear on sales
calls, • your e-mail signature, • everything.
How to create a Brand Cont.d
• Create a "voice" for your company that reflects your brand. • This voice should be applied to all written
communication and incorporated in the visual imagery of all materials, online and off.
• Is your brand friendly? Be conversational. • Is it ritzy? Be more formal. • You get the gist.
How to create a Brand Cont.d
• Develop a tagline. • Write a memorable, meaningful and concise
statement that captures the essence of your brand.
• Design templates and create brand standards for your marketing materials. • Use the same color scheme, logo placement,
look and feel throughout. • You don't need to be fancy, just consistent.
How to create a Brand Cont.d
• Be true to your brand. • Customers won't return to you
• or refer you to someone else• if you don't deliver on your brand promise.
• Be consistent. • This tip involves all the above and is the most important
tip on this list. • If you can't do this, your attempts at establishing a brand
will fail.
Brand Strategy
• Long-term marketing support for a brand, based on the definition of the characteristics of the target consumers.
• It includes understanding of their preferences, and expectations from the brand.
Components of a Branding Strategy
• Purpose• Functional
• This concept focuses on the evaluations of success in terms of immediate and commercial reasons -- i.e. the purpose of the business is to make money.
• Intentional
• This concept focuses on success as it relates to the ability to make money and do good in the world.
Components of a Branding Strategy Cont.d
• Consistency• avoid talking about things that don’t relate
to or enhance your brand• create a style guide• e.g.
• https://blog.hubspot.com/marketing/web-design-style-guide-examples
Components of a Branding Strategy Cont.d
• Emotion• Customers aren't always rational.• Find a way to connect to your customers on a deeper,
more emotional level. • Do you give them peace of mind? • Make them feel like part of the family? • Do you make life easier?
• Use emotional triggers like these to strengthen your relationship and foster loyalty.
Components of a Branding Strategy Cont.d
• Flexibility• In this fast-changing world, marketers
must remain flexible to stay relevant.• engage your followers in fresh, new ways
Components of a Branding Strategy Cont.d
• Employee Involvement• important for your employees to be well
versed in the how they should be communicating with customers and representing the brand
• e.g. if a playful brand - customer support should be playful/ cheerful too
Components of a Branding Strategy Cont.d
• Loyalty• reward customers for being with the brand• loyalty cards/ offers• At the end of the day, highlighting a
positive relationship between you and your existing customers sets the tone for what potential customers can expect if they choose to do business with you.
Components of a Branding Strategy Cont.d
• Competitive Awareness• Take the competition as a challenge to
improve your own strategy and create greater value in your overall brand.
• You are in the same business and going after the same customers, right? So watch what they do.
References• https://en.wikipedia.org/wiki/Web_traffic• https://en.wikipedia.org/wiki/Teletraffic_engineering• https://en.wikipedia.org/wiki/Network_traffic• https://en.wikipedia.org/wiki/Internet_traffic• http://www.comscore.com/Insights/Press-Releases/2009/1/Global-Inter
net-Audience-1-Billion• http://www.myownbusiness.org/s9/• https://www.google.com/transparencyreport/traffic/#expand=TJ• http://www.menog.org/presentations/menog-6-7-8-9/MENOG-Trends%2
0in%20Internet%20Traffic%20Patterns_0.pdf
References• http://www.internettrafficreport.com• https://en.wikipedia.org/wiki/Consumer_behaviour• http://www.ehow.com/info_8083297_different-models-consumer-behavior.html• https://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs• http://www.inboundnow.com/10-online-marketing-trends-predictions-2015/• https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/the-marketing-enviro
nment-3/technology-32/use-of-new-technologies-in-marketing-and-research-171-4044/• http://marketing.about.com/od/internetmarketingstrategy/• http://www.exacttarget.com/blog/5-marketing-technology-trends-to-watch-in-2014/• http://www.entrepreneur.com/encyclopedia/branding• http://www.businessdictionary.com/definition/brand-strategy.html• http://www.designdamage.com/the-12-principles-of-brand-strategy/#axzz3pa4QlWwe• https://blog.hubspot.com/blog/tabid/6307/bid/31739/7-Components-That-Comprise-a-Comprehensive-
Brand-Strategy.aspx
Next Up…
• Web Marketing Communications
Sachintha Gunasena MBCShttp://lk.linkedin.com/in/sachinthadtg
Thank you.
Sachintha Gunasena MBCShttp://lk.linkedin.com/in/sachinthadtg