Transcript Website Marketing

Website
Marketing and
Design
Poitiers, September 23-27
Session 5: B2B Commerce
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What is an EC Business
Model?
• The structure & actions by which an org
operates within its marketplace
– architecture for activities of a business
• The product, service or information flow
• “Buy-side” & “sell-side”: refers to
payment direction
– With whom is commerce being conducted
• (suppliers or customers?)
• In some cases, business is being transacted with
both
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Business-to-Business Commerce
• $ volume much larger than e-tailing, and
more rapidly growing
• Intra & extranets provide a seamless link
between businesses and their suppliers
• Companies create in-depth Web sites for
their main customers
– Special pricing
– Special configurations
– Dedicated support
• This builds loyalty
and torepeat
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Internet-enabled B2B
eCommerce has…
• Had significant impact on all the key
organisational processes:
– Sales & Marketing (and especially in
advertising)
– Finance & Accounting
– Supply-Chain Management
• Plus significant use in
– Human Resource Management
– Research & Development
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B2B eCommerce
eCommerce Impact on Web Sites
• E-commerce creates strong incentives for
companies to enhance their online use of
personalization
– Raises the value of users’ online experience
– Improves customer loyalty
– Allows for detailed information gathering
• The personalization/e-commerce link is
especially strong for business-to-business
marketing
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B2B eCommerce
The Personalization/E-commerce Link
Amount
of
Personalization
E-Commerce
Activity
Figure 12.6: E-Commerce Is Reinforced by Personalization
• Total company purchases determines the amount
of personalization Dell provides
• Greater personalization leads to even more
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purchases and aParthigher
customer
lifetime
value
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B2B eCommerce
eCommerce Impact on Web Sites
• Acquisition costs have gotten higher
– Pioneering sites like Amazon.com received massive amounts of
PR, which lowered their costs of acquisition
– As competitors have entered the marketplace, acquisition costs
have climbed
– Analysts recommend spending 70% of Year One revenues and
30% of Year Two revenues on customer acquisition
• High acquisition costs lead to
– A search for cheaper acquisition methods
– A premium on building customer loyalty
– A drive to expand the total amount of online business done with
a particular customer
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What is EC Strategic Planning?
Phase 1 Goal Setting
Define/Diagnose overall Corporate
Objectives
Phase 2 Situation
Review
Perhaps using SWOT Analysis & 5forces or similar
Phase 3 Strategy
Formulation
Complement or Replace? (use dependence
flow chart to decide - spending is greater if
replace than if complement) & select from
possibilities
Phase 4 Resource
Allocation &
Monitoring
Estimate demands, produce budget &
document plan (role of webmaster &
document layout)
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Need Strategy not just
Technology
Ecommercetechnology
Value
enabled
creates
Business process
defines
enabled
Business strategy/
The “technological imperative” is discredited!
Source: Wigand, 1997
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Web Competitive Strategy
Offensive strategy— usually takes place in an
established competitor’s market
– Frontal Assault— attacker must have superior resources
and willingness to persevere
– Flanking Manoeuvre— attack a part of the market
where the competitor is weak
– Bypass Attack— cut the market out from under an
established defender by offering a new type of product
that makes the competitor’s product unnecessary
– Encirclement— greater product variety and/or serves
more markets
– Guerrilla Warfare— use of small, intermittent assaults
on different market segments held by the competitor
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Defensive Strategies
Takes place in the firm’s own current market
position as a defence against possible attack by
a rival
– Lower the probability of attack
– Divert attacks to less threatening avenues
– Lessen the intensity of an attack
– Make competitive advantage more sustainable
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EC and Industry
Attractiveness
• There will be many new entrants
• The bargaining power of buyers is likely
to increase
• There will be more substitute products
and services
• The bargaining power of suppliers may
decrease
• The number of industry competitors in
one location will increase
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Also harmful strategic EC
effects
• Changing the basis of competition
– Can become competitive disadvantage if the
firm doesn’t stay ahead
• Entry barriers
– Can lower entry barriers
• Switching costs
– Can lead to accusations of unfair trading
practice
• Supplier/customer bargaining power
– EC may provide information for shopping or
allow integration
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Value Analysis Questions
• Representative Questions for Clarifying
Creation of Value Chain opportunities
– Can I make gains by consolidating parts of
the value chain to my customers?
– Can I make gains for customers by reducing
the number of entities they have to deal
with in the value chain?
• Representative Question for Creating
New Values
– Can I offer additional information of
transaction service to my existing customer
base?
– Can I use my ability to attract customers to
generate new sources of revenue, such as
advertising Part
or 1 sales
ofto Ecommerce
complementary
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products?
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Coherent Strategic EC and
Website Plan
• Documenting the strategy:
– must show how you are going to match
technology, external resources & your
firm’s strengths to market
opportunities you have identified.
Make clear your stance on 3 issues:
• Customer needs - What is being satisfied
• Customer groups - Who is being satisfied
• Technologies & functions - How customer
needs are satisfied
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What Should Strategy and
Plan Address?
• How is Electronic Commerce going to change our
business?
• How do we uncover new types of business
opportunities?
• How can we take advantage of new electronic
linkages with customers and trading partners?
• Will intermediaries be eliminated in the
process? Or do we become intermediaries
ourselves?
• How do we bring more buyers together
electronically (and keep them there)?
• How do we change the nature of our products
and services?
• Why is the Internet affecting other companies
more than ours?
• How do we manage
and measure the evolution of
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our strategy?
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Define Implementation
Sequence
• Start with organising a project team
• Undertake a few pilot projects (discover
problems early)
• Sequence in Implementing EC
– Redesigning existing business processes
– Back-end processes must be automated as
much as possible
– Company must set up workflow applications by
integrating EC into existing accounting and
financial back-ends
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Who should handle
producing plan?
• Should focus EC efforts in separate
“Ecommerce Group”
– If IT drives, will underestimate customer
focus
– If marketing drives, will underestimate
effort to build & maintain the presence
• EC group needs maintain strong links to
other corporate functions
– needs to manage intermediaries involved
– Group will become central source for best
practices & will help propagate knowledge
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And … What next
• Ecommerce is inevitably incremental
– And success grows in unexpected ways
• Successful Ecommerce venture then prompts
next question:
– grow vertically or horizontally?
• Unsuccessful Ecommerce then prompts to ask
why? Perhaps:
– The goals were unrealistic
– The web server was inadequate to handle traffic
– The actual cost savings were not as much as
expected
– The time was just
not right
for this
idea
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After Strategy - Tactics
• Who will we reach with this site?
– Who is the audience
– What kind of information wants to be
presented to them
• When will this venture make money?
• What tasks & technology will make it a
success?
• Where will the resources for it come
from?
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Level of dependence on EC
Start
Customer access
to Net?
Low
Primarily a
Complement
effect
No
No
Product can be
standardised?
Primarily a
Complement
effect
High
Net value
Proposition
similar?
Yes
Yes
Primarily a
Complement
effect
Primarily a
Replacement
effect
Replacement means more costs than complementing, and
implies
moreto Ecommerce
dependence!
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Method to do Situation
Analysis
• Tied together with SWOT analysis
• Strengths
• Weaknesses
- ‘muscle’ of the firm
- that limit its power
• Opportunities
• Threats
- potential for good
- must counter/remove
Internal factors in relation to the external factors of:
way of judging ‘strategic fit’ of firm
• Understand the O + T by considering the
structure of the industry (Porter’s 5-forces)
• Understand the S + W by considering the
creation of value chain
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SWOT Analysis Forms Strategy
INTERNAL
FACTORS
Weaknesses (W)
Strengths (S)
Opportunities (O)
WO Strategies
Generate strategies
here that take
advantage of
opportunities by
overcome
weaknesses
SO Strategies
Generate strategies
here that use
strengths to take
advantages of
opportunities
Threats (T)
WT Strategies
Generate strategies
here that minimize
weaknesses and
avoid threats
EXTERNAL
FACTORS
Basically, priorities are both:
fix W/T segment (business
survival)
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but also chase S/O segment
(business
growth)
ST Strategies
Generate strategies
here that use
strengths to avoid
threats
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SWOT Summary
Internal Factors
Weaknesses
Strengths
Opportunities
External
Factors
Threats
H
Value
Adding
Potential
of EC
L
L
Go for it!
Fix it!
Beware
Attack
Play Safe
Explore
Quality of EC Resource
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5 Competitive Forces that
Determine Industry
Competition: Porter
Threat of New
Entrants
Bargaining Power
of Suppliers
Rivalry Among
Existing
Competitors
How can we use all
those Ecommerce
Threat of Substitute
possibilities looked at
Product or Services
in last section to
CHANGE the situation
to our advantage?
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Bargaining
Power of Buyers
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Tools such as
this useful in
EC Strategy
choices
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EC and the Competitive
Environment
Competitors
Suppliers
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Company
Customers
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Website
Marketing and
Design
Poitiers, September 23-27
End of Session 5 – Break
1
Website
Marketing and
Design
Poitiers, September 23-27
Session 6 –Website Design
Principles
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Website Tasks
• To ensure the design & implementation,
of a successful Website; there is a need
for someone (or several people?) to
master the following tasks:
–
–
–
–
–
–
Look & Feel
Navigation & Structure
Content
Implementation
Site Promotion
Site Management
}
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Web-site
Design
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What makes an Effective
eCommerce Site?
•
Effective?
–
•
“one that suits the need”
What you want your site to:
– Be and Do
•
Know your Business Goals
– Driven by chosen ecommerce possibilities (as
covered earlier)
• Be clear why you are creating this site
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Know your Audience
•
Lots of questions to ask, e.g.:
–
–
–
–
–
–
•
who?
how many?
how long?
how often?
from where?
etc.
The above questions ALL need answers!
–
Informed by market analysis?
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Audience Analysis
•
Who do you want to reach
– Why might they come?
– Where would they be in the sales cycle?
•
Based on your business goals
– What action do you want them to take?
•
Web-site design is very different for:
– a daily visit site
– a newsletter site
– a technical support site
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Why might they come?
•
•
•
•
•
•
•
•
•
•
To….:
…read a product description with detailed up-to-date
information
…complete a reader survey
… request a subscription to a service, or an introductory
meeting, or a phone call
… participate in an on-line discussion
… add your URL to their list of favourites
… select your site as their browser’s default home page
… visit your site weekly, twice a week, daily or
infrequently
… purchase a product or service
Etc.
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Where do they come from?
•
Any number of technical constraints
might apply, e.g:
–
–
–
–
•
Bandwidth (connection speed)
Browser type
Screen Size & Colour Depth (resolution)
Video & Sound Capacity
All too often:
– designers = High Specification PC, with a Fast
connection, on a Network
– customers = Low Specification PC, with a Slow
dial-in connection, using a 56k (or slower?)
modem
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Web-Site Design
• Three Major Tasks to Produce Website:
– Look & Feel
– Structure & Navigation
– Content
• Difficult to separate these, and there is
considerable disagreement over which is
most important, however all agree:
– should be easy to find your way around
– should be uniformity in the presentation of the
whole web-site, within sections, and of individual
pages
– should keep the
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Look & Feel
Requires a number of design decisions:
• What are your assumptions about user
communication & learning preferences?
– Will information be consumed on screen or
printed for later?
– How patient will your audience be?
– Simple, clean designs will be fast and clear,
but can seem ‘dull’
– Complex multimedia sites may be more
‘interesting’, but might be slow & confusing
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Look & Feel
Is created by design decisions about:
•
Design & Graphic Style
– Award winning, avant-garde, friendly &
reassuring, ‘in your face’, etc.
– Ambiance & ‘playfulness’
•
Colour Palette
– Earth tones, psychedelic colours, soothing
pastels, etc.
• try to use contrasting, not conflicting, colours!
•
Logos & Branding
– Style, location & frequency
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Look & Feel
Is created by design decisions about:
•
Media Mix
– text, static graphics, animations, sound,
video, etc.
•
Balance of Text & Graphics
– lots of text with few graphics
– lots of graphics with brief captions
• balance might change in different sections of the
Web-site
•
Typography
– big & bold, ornamental, youthful, elegant &
restrained, etc.
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Look & Feel - Examples
• The ESCEM Group
– http://www.escem.fr/
• PC World Magazine
– http://www.pcworld.com/
• Amazon
– http://www.amazon.com/
• Disney Corporation
– http://disney.go.com/
• Yahoo
– my.yahoo.com
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Web Accessibility Initiative
• On April 7, 1997, the World Wide Web
Consortium (W3C) launched the Web
Accessibility Initiative (WAI )
– An attempt to make the Web more accessible
• Accessibility
– Refers to the level of usability of a Web-site for
people with disabilities
• The vast majority of Web-sites are considered
inaccessible to people with visual, learning or mobility
impairments
– A high level of accessibility is difficult to achieve.
• People with a low specification PC may also suffer from
poor accessibility
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Structure & Navigation
• Web-site Structure
– Narrow & Deep
– Wide & Shallow
• Elements that define the site structure
– Menus (Text-based and/or Graphical)
– In-content Hyperlinks
• Page Structure approaches
– Plain, Framed, Table-based, Graphical
• Site Maps (Text-based and/or Graphical)
– Help you plan & user understand
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Things NOT to do!
• Don't have too much information on a
single Web-page.
• Too much information(?):
– becomes data; i.e. may not be read, or
understood.
• Keep it short & snappy:
– break things up into a number of shorter,
hyperlinked, pages.
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Things NOT to do!
• Don't leave the important stuff for the
bottom
• Say what needs to be said at the top of
each Web page:
– someone may not make it down to the
bottom of the page
• Another reason to keep it short &
snappy:
– Web-pages are meant to be read on a
computer screen, a totally different shape
to an A4 paper document
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“Keep it Simple”
• And your Web-site will be:
– easier to build; consistent structure & easy
navigation, common ‘look & feel’, easy to
understand content, etc.
– easier to maintain; no Web-site is ever
complete, they are always ‘under
construction’, so NEVER say so!
• And remember that “less is definitely
more”:
– except when it comes to testing!
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Web Design Principles
Start here:
http://www.starlingweb.com/wai/wcag/gid1-0.htm
Guidelines from W3C:
http://www.w3.org/TR/WAI-WEBCONTENT/
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Website
Marketing and
Design
Poitiers, September 23-27
End of Sessions 5-6:
Lunch!
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