Creating a Winning EBusiness Second Edition

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Creating a Winning E-BusinessSecond Edition

• Marketing Your E-Business
• Chapter 6

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Learning Objectives

• Describe the marketing mix
• Explain the importance of branding
• Describe primary and secondary market research
• Create a marketing plan
• Identify marketing tools

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Marketing

• Marketing is the activity, set of institutions,
  and processes for creating, communicating,
  delivering, and exchanging offerings that have
  value for customers, clients, partners, and
  society at large (American Marketing Association,
  January 2008)

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Marketing

• Creating
• Communicating
• Delivering
• Exchanging

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Marketing

• Customers (i.e., Stakeholders) include
• Customers
• Clients
• Partners
• society at large

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Marketing Mix

• Four Ps in the classical marketing mix
• Product
• Place
• Price
• Promotion

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Marketing Mix (continued)
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Marketing Mix (continued)

• Marketing mix from customers viewpoint
• Four Cs marketing mix model
• Customer needs and wants
• Convenience
• Communication
• Cost to customer

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Marketing Mix (continued)
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Consumer Decision Making Process

• 5 phases of the generic purchase decision model
• need identification
• information search
• evaluation of alternatives
• purchase and delivery
• after-purchase evaluation

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Web Advertising

• Internet advertising terminology
• ad views The number of times users call up a
  page that has a banner on it during a specific
  time period known as impressions or page views

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Web Advertising

• Click (click-through or ad click) A count made
  each time a visitor clicks on an advertising
  banner to access the advertisers Web site
• CPM (cost per thousand impressions) The fee an
  advertiser pays for each 1,000 times a page with
  a banner ad is shown
• Hit Request for data from a Web page or file

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Web Advertising

• Visit A series of requests during one navigation
  of a Web site a pause of request for a certain
  length of time ends a visit
• Unique Visit A count of the number of visitors
  to a site, regardless of how many pages are
  viewed per visit
• Stickiness Characteristic that influences the
  average length of time a visitor stays in a site

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Building Your Brand

• A brand
• Incorporates customers perceptions of and
  experiences with a business
• Combination of name, logo, and design that
  identifies a businesss products and services in
  consumers minds
• Trusted brand can drive sales

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Building Your Brand (continued)

• Define how you want products/services perceived
  by customers
• Understand core elements of e-business
• Differentiate core elements from competitors
  core elements
• Identify how products/services meet customers
  needs
• Decide how to convince customers that
  products/services best meet their needs

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Building Your Brand (continued)

• Discover words, phrases, images to put best
  public face on business
• Brand names
• Simple
• Easy to remember, spell, and understand
• Have snap
• May be a proper name or use personification
• Coca Cola, Dell Corporation

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Building Your Brand (continued)
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Building Your Brand (continued)
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Building a Brand

• Oh, dont forget the domain name (URL)

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Building Your Brand (continued)

• Domain name (URL) and branding
• Address associated with a Web page
• Can be used to help build a brand
• Single- and common-word domain names largely
  already taken
• Office.com, Business.com
• May be too generic for successful branding

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Building Your Brand (continued)

• Use creative brainstorming to develop brand
  name
• Create list of words or phrases and combine them
  in creative ways
• Ask for help from friends, family, advisors
• Pay for professional help in developing brand
  name
• The Namestormers, NameLab

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Building Your Brand (continued)
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Building Your Brand (continued)
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Building Your Brand (continued)

• Domain name (URL) registration
• Managed by ICANN for the U.S. Dept. of Commerce
• Top-level domains identify the general category
  in which a domain name is registered

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Building Your Brand (continued)
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Building Your Brand (continued)

• Domain name (URL) registration (continued)
• ICANN contracts with accredited registrars
• Accredited registrars process requests for new
  domain names
• Network Solutions
• GoDaddy
• Register.com

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Building Your Brand (continued)
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Building Your Brand (continued)

• Tying URL to business name can help build a brand
• amazon.com
• register.com
• bn.com
• ey.com
• Some e-businesses use clever, made-up words for
  URL
• google.com

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Building Your Brand (continued)

• Brand names, domain names, trademarks are
  becoming more interchangeable
• Make certain a URL does not infringe on the brand
  or trademark of an existing company

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Market Research

• Collecting and analyzing data to make business
  decisions
• Primary research
• Uses quantitative or qualitative methods to
  physically collect and analyze data and then
  publish the results
• Market research company examples
• NPD Group
• Forrester

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Market Research

• Secondary research
• Collects data from secondary sources who have
  already performed the primary research
• Resources for secondary research
• Reports published by market research companies
• Industry white papers
• Government databases
• Trade associations
• Professional journals

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Creating a Marketing Plan

• Provides the details for the marketplace analysis
  section of a business plan
• Plan elements
• Executive Summary
• Situational Analysis
• Objectives, Strategies, and Tactics
• Budget and Performance Measures

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Creating a Marketing Plan

• Executive Summary section
• Summarizes overall plan
• One to three pages
• Should be written last

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Creating a Marketing Plan

• Situational Analysis section
• Explains what is known about the marketplace
• Market size
• Market segments
• Target market
• Competition
• Products and services overview

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Creating a Marketing Plan

• Objectives, Strategies, and Tactics section
• Objectives describe marketing mission
• Strategies identify what is to be accomplished
• Tactics detail how it will be done

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Creating a Marketing Plan

• Budget and Performance Measures section
• A budget estimates the cost of the plan
• Performance measures evaluate the results of plan
  implementation

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Marketing Tools

• Search tool submissions
• Search engines use spiders to browse the Web and
  locate new pages to build indexes
• Directories use human submissions of Web page
  information to build indexes
• Most modern search tools use a combination of
  both means to build indexes
• E-businesses can submit Web page information to
  multiple search tools

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Marketing Tools

• Search engine optimization (SEO)
• Build Web pages that are easy to index by search
  engines
• Write clear and on-topic Web page text
• Use descriptive page titles
• Avoid frames and dynamic content
• Use text navigation links
• Arrange for relevant inbound links
• Use meta tags

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Marketing Tools
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Marketing Tools

• Public relations effort
• Establishes and maintains a companys public
  image
• Timely press release is a cost-effective
  marketing tool
• Good idea to work with a PR professional

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Marketing Tools

• Online advertising
• Banner and sidebar ad
• Rectangular image
• Linked to advertisers site
• Pop-up or pop-under ads
• Appear in own window above or below browser
  window
• Linked to advertisers site

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Marketing Tools

• Online advertising (continued)
• Rich media ads
• Interactive elements, Flash technologies,
  streaming media
• Shoshkele and streaming media ads
• Permission-based marketing
• Opt-in e-mail or newsletters
• Double opt-in process verifies recipient
  voluntarily receives messages

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Marketing Tools

• Online advertising (continued)
• Search tool or portal advertising
• Featured placement at other Web sites
• Pay-per-click search tool ads
• Featured placement in search results lists
• Featured placement on same page as search results
  list
• Based on relevant search keywords
• Yahoo!, Search Marketing, and goClick.com

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Marketing Tools
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Marketing Tools
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Marketing Tools

• Traditional advertising
• Radio
• TV
• Print media
• Outdoor advertising
• Direct mail
• Used together with online advertising to acquire
  new customers as inexpensively as possible

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Marketing Tools

• Link exchanges
• Exchange links with Web sites to boost link
  popularity
• Drive new customers to Web site and improve SEO
• Beware of link farms and link stuffing
• Newsgroups and Web-based forums
• Participation in can indirectly promote a business

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Marketing Tools

• Word of mouth
• Electronic word of mouth exploits the network
  effect and viral marketing
• Business blogs
• Put a human face on a business
• Way to keep tabs on what customers, potential
  customers, and competitors are thinking and
  saying
• Provide valuable feedback on products and services

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Marketing Tools

• RSS and Podcasting
• Syndication of Web page content or audio using
  XML technologies
• Affiliate programs
• Arrangement in which an e-business pays a fee or
  commission when a customer clicks through from
  another site and makes a purchase

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Marketing Tools

• Web rings
• A group of similar e-businesses linked together
  in a circular chain
• Visitor can click through from site to site in
  the chain
• Awards
• Can give a startup e-business more credibility in
  the marketplace

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The 3R Framework
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Reach

• Reach is the degree to which a firm can manage
  its value chain activities to connect its
  customers to an accessible product/service
  offering.

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Richness

• Richness is the degree to which a firm can
  facilitate the exchange of information to deliver
  products/services that match customers exact
  wants and needs.

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Range

• Range is the degree to which a firm can offer its
  customers a value proposition containing a
  breadth of products/services.

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E-business strategic positioning along the reach
dimension

• key question Is the product/service produced and
  distributed online or offline?
• Digital products or services can overcome these
  limitations and radically extend reach.
• Digital products exist when
• It exists in digital format
• it is directly accessible on an interconnected,
  digital network
• Why is the nature of the product, physical vs.
  digital, so important in impacting reach?

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E-business strategic positioning along the
richness dimension

• key question Is the product/service pre-built or
  customizable?
• Pre-built (supply-driven)
• Customizable (demand-driven)
• For customizable products, customers not only
  interact with companies at a very personal level,
  they can also dictate their exact desires
• Why do you need to know your customers? Is
  customization dependent on consumer knowledge
  being held by the company?
• Why is pre-built classified as supply-driven and
  customizable as being demand-driven?

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E-business strategic positioning along the range
dimension

• key question Is the product/service offering
  within the value proposition narrow or broad?
• Broad offering typically consists of a
  heterogeneous set of standardized or generic
  products and services that cross industry
  segments
• Narrow offering typically consists of a
  homogeneous set of specialized or customized
  products and services that are more tightly
  focused

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Strategic Guidelines

• Extend reach digitally
• Enhance richness digitally
• Expand range digitally

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Strategic Guidelines

• In other words, max each of the R dimensions.
• Is this really what every firm should do?

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Strategic Guidelines

• Consider Woot

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The 5 Pillars of Social Media Marketing

• Social Media Marketing tactics engage in one or
  more of the following
• Declaration of Identity
• Identity through Association
• User-initiated Conversation
• Provider-initiated Conversation
• In-Person Interaction

Source Andy Beal - http//www.marketingpilgrim.co
m
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The 5 Pillars of Social Media Marketing

• Declaration of Identity focus on identity-based
  interaction that shapes and defines the firms
  identity
• LinkedIn
• Ziki
• ClaimID
• SuperGlu

Source Andy Beal - http//www.marketingpilgrim.co
m
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The 5 Pillars of Social Media Marketing

• Identity through Association Allowing customers
  to associate themselves with a firm using social
  media associations
• Del.icio.us
• Furl
• Blummy
• Ma.gnolia
• StumbleUpon
• BlinkList

Source Andy Beal - http//www.marketingpilgrim.co
m
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The 5 Pillars of Social Media Marketing

• User-initiated Conversation Allowing customers
  to respond, shout out, and talk back to a firm or
  to others about a firm
• Yahoo Groups
• Google Groups
• AOL Groups
• MSN Groups
• Topica EMail Lists
• Kaboodle Groups
• Eurekster
• tribe.net
• Ning

Source Andy Beal - http//www.marketingpilgrim.co
m
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The 5 Pillars of Social Media Marketing

• Provider-initiated Conversation Allowing firms
  to seek out input from customers
• User forums
• Customer feedback forums
• Social networks for focus groups

Source Andy Beal - http//www.marketingpilgrim.co
m
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The 5 Pillars of Social Media Marketing

• In-Person Interaction Get down to face-to-face,
  over the phone, or synchronous interaction via
  text or email
• Meetup
• BarCamp
• Evite
• Upcoming
• Eventful

Source Andy Beal - http//www.marketingpilgrim.co
m
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Social Media Marketing Examples

• FACEBOOK Applications
• aerie by American Eagle
• BlueNile Wishlist
• Steep and Cheap
• Zappos
• Threadless
• Threadless Plus

Linda Bustos, 110 Ways Retailers are Using Social
Media Marketing, http//www.getelastic.com/social-
media-examples/
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Social Media Marketing Examples
FACEBOOK Sponsored Groups

• All Posters.com
• erie by American Eagle
• Apple Students
• Champion Fan Zone
• Chill with HP Canada
• Contiki
• Dell Spot
• Half.com by Ebay
• HM
• JanSport

• Mark.Girl Cosmetics
• I Took the Nike Zoom
• Challenge
• PINK by Victorias Secret
• Reebok
• SouthWest Airlines
• Target
• TicketMaster
• Virgin Mobile
• Walmart Roommate Style Match

Linda Bustos, 110 Ways Retailers are Using Social
Media Marketing, http//www.getelastic.com/social-
media-examples/
69
Social Media Marketing Examples
SECOND LIFE E-STORES

• I Want One of Those
• CKIN2U Secondlife
• Second Life Apple Store
• Reebok

• 1-800-Flowers
• IBM Repair Shop
• Xerox
• StyleHive (Social Shopping)
• Phillips
• Coca Cola Contest

Linda Bustos, 110 Ways Retailers are Using Social
Media Marketing, http//www.getelastic.com/social-
media-examples/
70
Social Media Marketing Examples
YOUTUBE / VIDEO PODCASTS

• 1800Flowers
• 2K Sports
• BlendTec
• Bowflex
• Buy.com
• Helio
• Home Shopping Network
• IWOOT
• MyTravel.com

• Overstock.com
• Quiksilver
• RadioShack
• Sam Ash Music
• Sephora
• ShopNBC
• ThinkGeek
• Tiger Direct
• Zappos
• Napster

Linda Bustos, 110 Ways Retailers are Using Social
Media Marketing, http//www.getelastic.com/social-
media-examples/
71
Social Media Marketing Examples

• ONLINE COMMUNITIES
• Calvin Klein Meet friends and submit user
  generated videos (contest)
• Weber Grills Audio Video podcasts, interactive
  recipes
• Threadless Rethreaded
• Lucky Magazine
• Yub.com (Buy.coms Social Community)
• Kashi

Linda Bustos, 110 Ways Retailers are Using Social
Media Marketing, http//www.getelastic.com/social-
media-examples/
72
Social Media Marketing Examples

• FLICKR MARKETING
• EBTM t-shirts
• NineTails Store
• OwlMovement
• FLICKR USER UPLOADED FAN PHOTOS
• Chumby
• Chumby Flickr Page
• FullBleed
• Tea and Crumpets
• Threadless

Linda Bustos, 110 Ways Retailers are Using Social
Media Marketing, http//www.getelastic.com/social-
media-examples/
73
Social Media Marketing Examples
VIRAL MICROSITES

• Office Max Elf Yourself
• Hanes Socks
• SumoGlue.com
• Career Builder
• Guinness
• Fruit of the Loom
• Dial Soap for Men
• I Cant Believe Its Not Butter (Starring Fabio)
• HBO
• HP ToyRama

• GEICO
• GLAD
• Jockey
• Pet Mustache (Burger King)
• Rice Krispies
• Dial Soap Manluge Game
• Dial for Wussies
• Wrigleys Gum
• UPS
• Taco Bell

Linda Bustos, 110 Ways Retailers are Using Social
Media Marketing, http//www.getelastic.com/social-
media-examples/
74
Chapter Summary

• Marketing is the process of developing mutually
  satisfying relationships with customers
• Classic marketing mix model consists of the Four
  Ps product, place, promotion, and price
• A brand is a name or logo that identifies a
  product or service in consumers minds
• A domain name (URL) can be a tool for building a
  brand

75
Chapter Summary(continued)

• Market research involves collecting and analyzing
  data using primary or secondary research
• A marketing plan provides details for the
  marketplace analysis portion of a business plan
• Executive Summary
• Situational Analysis
• Objectives, Strategies, Tactics
• Budget and Performance Measures

76
Chapter Summary(continued)

• Online marketing tools
• Search engine optimization (SEO)
• Online ads and opt-in e-mail/newsletters
• Search tool and portal advertising
• Link exchanges and online forums
• Business blogs, RSS feeds, affiliate programs
• Web rings
• Traditional marketing tools
• Radio, TV, print ads, public relations