Transcript cce short courses 2001 - University of Canterbury

Intro to WEB Marketing
CCE Short Course
14 Feb 2001
Instructor:
Dr David Fortin
On the Menu

Morning:
» What is the Web?
» Key Issues about Web marketing
» Various Models of business

Afternoon:
» Creating your own web page
About the Author

David is Senior Lecturer at the University of
Canterbury, New Zealand and director of the
“Web-L@b” Consumer Research Project
www.mang.canterbury.ac.nz/weblab
What is the
World Wide Web?
The World Wide Web (WWW)
is a global interactive,
dynamic, cross platform,
graphical hypertext
information system that runs
on the Internet.
Historical Perspective
The Internet is the backbone
 Originally linked universities worldwide
after the second world war
 Web is a protocol using HTML to “ride”
the Internet
 A “file” is sent over to a local computer
for viewing

Some Internet Statistics
Conservative estimate of over 500
million users worldwide
 5.2 million in Australia
 800,000 in NZ
 80,000 shop online every month
 1998: $19million in sales
 2002: $990million projected

Online Users Expanding
46,000
8,000
436
1996
Internet Statistics
Consult www.iconocast.com or
 www.emarketer.com for resources

The Demographics of Web User
Gender
Education
Key
Demographic
Variables
of Web
Users
Income
Computer Ownership
Computer Experience
Computer Expertise
Where Are WWW Users Located?
Oceania 4%
Other 2%
Asia 2%
Canada &
Mexico 8%
Europe 11%
United States 73%
Electronic Marketplace
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New medium - wave of the future
Expectations are different
Users have time to evaluate
Growing and evolving rapidly amidst
emerging technologies
Information
Highway
Establishing a Quality Internet Presence
with a Purpose
Internet
My
Home
Page
Client Server
World Wide Web Site

Your storefront (Web Site)

Doorway to a global marketplace

Success depends on its appearance, ease of
navigation and message conveyed

Home Page is a key ingredient and should be
designed with great care
How is Interactive Marketing Different ?

Capability to access
and control content
of information by the
user

Focus on
Interactivity
Comparing:
TV
and WEB
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Mass-Media
One-to-Many
Passive
No Feedback
Low Selectivity
Low Involvement
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Customized Media
Many-to-Many
Active
Interactive
High Selectivity
High Involvement
Targeting your Market with a
Product or Service
The Search for Information

Search Intensity = Trade-off
Types of Users

BROWSERS
» random navigation
» entertainment-based

SEEKERS
» task-oriented
» information-based
Browsers and Seekers
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Serendipitous
navigation
Process over
content
Hedonic component

Information goal

Minimize time
Specific, a priori

Priorities For Establishing a
Successful Internet Presence
Have a meaningful purpose for being
on the Internet
 Think of it as an outlet for further
information in support of a campaign
 Encourage Repeat Visits
 Feedback Mechanism vital

The 3D Stance
Key Internet Tools for
Business
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World Wide Web
E-Mail
Search Engines
Listservs (Mailing Lists)
Newsgroups
FTP
Internet Kit
of
Tools
Communication via E-Mail
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Know how to use it effectively - It can be
your best friend or worst enemy
Proper “netiquette”
Establish Client Relationships
Client Feedback and Customer Satisfaction
Publicize your Website at Every
Opportunity
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Search Engines - Profile Description, score
Internet Yellow Pages, Business Pages
Listservs
Internet Malls
Electronic Bulletin Boards
All Print and Broadcast Ads
Quality Web Site includes:
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Door
to
the
World
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User-friendly Homepage
Company profile/ Overview
Products and Services
Order Form
Client feedback form/ surveys
Press releases/ Announcements
Special Offers
Links to other pages or sites
Update Your Site Frequently !
Remember the Internet is dynamic,
competition can be fierce and people
get bored quickly and won’t stay
long if something doesn’t catch their
eye.
If a website isn’t updated
frequently you won’t get repeat
customers !
New
On the Internet,
Nobody Knows
You’re A Dog
e-Commerce: revolution or
evolution?
Early days of radio and television
 Novelty vs content

e-Commerce: revolution or
evolution?

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Is everything “Internetable”??
Do we really need Italiancheese.com,
Golfballs.com or newmousetrap.co.nz?
Filter: is this a business that could have
existed before the Net? If so, “deep-six” it right
now!
Involve
Customers
in Design
Process
Understand
Markets &
Customers
Market &
Sell
Products &
Services
Marketing Processes
That Can Be Digitized
Manage
Customer
Information
Provide
Customer
Care
Deliver
Value
Through
Distribution
Business Models
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Method of doing Business to generate
revenue streams within the value-chain
Are there many models out there?, Yes
Is there a clear recipe for choosing one? No!
Are e-Business models all “new”? Of course
not!
Business Models
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Many are traditional, inspired by the bazaar
economy or the mass media model
Old world models are rejuvenated
Auctions (eBay.com), Reverse Auctions with
name your price (priceline.com, ewanted.com)
Business Models, Net History
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Model 1: AOL’s content business based on
connect-time revenue splits
Model 2: Advertiser-driven: build traffic, sell
eyeballs. Good for portals, bad for all others.
Model 3: e-Commerce: sell real products for
real money! Assumes cost economies based
on disintermediation = let’s be careful here….
Business Models, Net History
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Model 4: e-Commerce: never making a profit
out of selling real products for real money!
Focus here is on establishing relationships
and estimating the lifetime value of a
customer.
Concept of “monetising”
Freeonline.com.au, free-PC.com
Improvement-Based Biz Models
Use the Net to Improve Products
and/or Services
Efficiency
Enhancement
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Build brand
Build category
Enhance quality
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Reduce costs
Free trial
Effectiveness
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Support dealers
Support suppliers
Collect information
Revenue-Based Biz Models
Which Company Bears the Risk?
Sponsorship
Fixed Payment
Banner Ads
Impressions
Prospect Fees
Click Through
Sales Commissions
Purchase
Risk Increases for the Web Site Being Paid
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Sponsorship least risky: fixed payment
Banner Ads: payment depends on impressions
Prospect Fees & Sales Commissions: depend on
success of site and advertiser
The Pace of E-Commerce
For e-commerce to continue to grow as quickly as
forecasters expect, online selling must excel on the
fundamentals that drive buyers
Price
Assortment
Online buying is cheaper
than traditional methods
The range of products
better matches buyer
desires
Convenience
The timing, location and
buying process are
superior
Entertainment
Buying online is more fun
than alternatives
E-Commerce Takes Off
The Personalization/E-commerce Link
Amount
of
Personalization
E-Commerce
Activity
E-Commerce Is Reinforced by Personalization
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Concept of Mass-Customisation
Greater personalization leads to even more purchases
and a higher customer lifetime value
Do You Yahoo?
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For 50% of US Web users: YES!!!
Yahoo! brand extensions provide value added for
users
»
»
»
»
»
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Yahoo! games
Yahoo! clubs
Yahoo! chat
Yahoo! auctions
Yahoo! Stores
Yahoo! leverages its brand and ability to draw traffic
to generate multiple revenue streams = Portal
strategy
Successes
Worldwide: travel, banking, trading:
the model of Buy/Sell Fulfillment
 Books, CDs: volume but not
profitable
 Niche propositions:
 www.sweet-seductions.co.uk
 www.virtualvineyards.com
 www.dailygrind.com
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Successes
In New Zealand:
 www.pcdirect.co.nz
 Woolworths online
 BankDirect, ASB FAstNet
 TAB, $20 Million/year
 www.tuff-as-nuts.com
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Successes
Mass-customisation: addressing
multiple segments of one
 Dell Computers
 www.smarterkids.com
 travel.co.nz
 Vitamins: www.acumins.com
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Successes
Click-and-Mortar
 Combining existing strengths in
physical distribution with virtual
approach
 Barnesandnoble.com
 in Japan, a retailer is experimenting
with product pick-up in 7/11 shops
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Fiascos
Www.Pets.com,
www.mothernature.com (vitamins)
 www.priceline.com
 e-Shopping Mall concept (IBM)
 In New Zealand:
 Flyingpig.co.nz (now re-launched)
 NBR, The Press
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Opportunities
Find a niche, added-value product
 Migrate from catalog (Ezibuy)
 Try to exploit overseas market
 Minimise shipping constraints and
costs
 Blackball salamis on west coast!!
 ideas?
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