Internet Marketing - Poitiers 2003 1 Session 12: Website Building Workshop.

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Presentation transcript:

Internet Marketing - Poitiers Session 12: Website Building Workshop

Internet Marketing - Poitiers End Session 12: Website Building Workshop

Internet Marketing - Poitiers Session 13: Functional development of the website

Internet Marketing - Poitiers Information Transaction Interaction

Internet Marketing - Poitiers Stages (or Generations) of Websites Stage I: Publishing sites - Information Stage II: Databases and Forms - Transaction Stage III: Personalization - Interaction

Internet Marketing - Poitiers Stage I: Information Info Links Pictures/Information

Internet Marketing - Poitiers Stage I What makes this a Stage I Website ? Organises, Broadcasts and Disseminates Information

Internet Marketing - Poitiers Stage II: Transaction Databases and Forms To find out the travel distances between the host cities: Select your starting point Select your destination Bordeaux Paris Toulouse Marseilles Toulouse Marseille – 404km

Internet Marketing - Poitiers Stage II What Makes this a Stage II Website? The ability to retrieve information to respond to user requests

Internet Marketing - Poitiers Stage III: Personalization and Interaction If you area team WC98 member and are using a computer other than the one you originally joined WC98, enter your nickname and password now.

Internet Marketing - Poitiers Stage III What Makes this a Stage III Website? More than ask-respond… Anticipates Suggests

Internet Marketing - Poitiers Usage of this information The website success factors will be used by you and your team in order to: –Design the site accordingly –Evaluate your own site step by step We will use the website success factors to evaluate your site too!

Internet Marketing - Poitiers Website Organisational Aspects

Internet Marketing - Poitiers Cost and Performance Table 5.5 One of the best uses of Web chain analysis is to compare alternative methods of acquiring customers

Internet Marketing - Poitiers End Session 13: Functional development of the website

Internet Marketing - Poitiers Session 14: Drivers of internet success How to evaluate your site

Internet Marketing - Poitiers End Session 14

Internet Marketing - Poitiers Session 15: Website Promotion

Internet Marketing - Poitiers Promotion Two ways to think about this topic: 1.Online communication –The URL –Search engine positioning –Webvertising –Affiliate marketing –Viral marketing – marketing –Community marketing 2.Role of the website in the customer contact/communication mix

Internet Marketing - Poitiers Promotion: Comparison of communication

Internet Marketing - Poitiers Do You Yahoo? For 50% of US Web users: Yes!! A phenomenal eCommerce success story Yahoo! brand extensions provide value add for users –Yahoo! games –Yahoo! clubs –Yahoo! chat –Yahoo! auctions –Yahoo! Stores Yahoo! leverages its brand and ability to draw traffic to generate multiple revenue streams

Internet Marketing - Poitiers Most Popular Web Sites Yahoo! Leads Figure 5.1

Internet Marketing - Poitiers Yahoo! Brand Extensions The Success of the Yahoo! Brand Figure 5.2

Internet Marketing - Poitiers Web Benefits to Firms The range of Web benefits –Business models can be based on improvements in product or service –Business models can be based directly on generating revenue Let’s take a closer look at these broad classes of business models

Internet Marketing - Poitiers Sponsorship Alliances Banner advertising Prospect fees Sales commissions Revenue-Based Biz Models Use the Net to Make Money Provider Pays

Internet Marketing - Poitiers Sponsorship Alliances Banner advertising Prospect fees Sales commissions Product sales Pay-per-use Subscriptions Bundle sales Revenue-Based Biz Models Use the Net to Make Money Provider PaysCustomer Pays

Internet Marketing - Poitiers Closed Loop Marketing Marketing is closed loop when specific customer responses to specific marketing actions can be tracked –For example: if an online ad encourages Web site registration, the campaign is closed loop if users can be tracked from ad exposure to the decision to register Closed loop marketing leads to rapid learning –Marketers can experiment with prices, ad copy, and product features on selected samples of consumers

Internet Marketing - Poitiers The Impact of Closed Loop Marketing Marketers want two results from user responses –They want consumers to make a choice that leads to information improved customer satisfaction a transaction –Marketers want to learn about visitors to their site On the Internet Nobody Knows You’re A Dog…

Internet Marketing - Poitiers Web Chains A Web chain is a click sequence –Can be as short as a single click –Can be as long as all possible choices on a Web site Decision points = event nodes Ending point = result node Common Web chain starting points –Company homepage –Search engine or portal –Banner ads

Internet Marketing - Poitiers Web Chain of Events Figure 5.12 R1: Doesn’t Notice Ad = $0 benefit Offline Induced Buyer (OIB) R3: Offline Purchase = (Ad brand + Web Site brand + Offline profit) No Notice Rate (NNR) E1: Views Page with Paid Link (1-CTR-NNR) Click-through Rate (CTR) R2: Notices Ad but doesn’t click = Ad brand impact E2: Clicks Through to Company Web Site = Prospects BEGIN (1-PCR) Prospect Conversion Rate (PCR) E3: Views Web Site but Doesn’t Buy E4: Visits Web Site and Buys New Customer (1-RR) (1-OIB) R4: No Immediate Purchase = (Ad brand + Web Site brand impact) Repeat Buyer (RR) R5: New Customer = (Ad brand + Web Site brand + Online profit + Future lifetime value) E5: Loyal Customer END Offline Buy Rate (OBR)Online Only (1-OBR) R7: Only buy online = (Ad brand + Web Site brand + Online profit) R6: Would have bought offline anyway = (Ad brand + Web Site brand + Online profit – Offline profit)

Internet Marketing - Poitiers Virtuous Web Cycle Huh? Is a business system with positive feedback Each element in the business system feeds off another element in the system and feeds into yet another element in the system If the cycle is strong enough, it can actually be a self-fulfilling expectation

Internet Marketing - Poitiers Virtuous Cycle for Net Growth Let’s look at how it works Popular Fascination It starts with user fascination Web Sites and Web Content Providers see the developing opportunity and rush to create new brands & services, which creates more hype Consumer and Business Internet Access The buzz feeds back into consumers’ interest and desire to experiment with the new technology

Internet Marketing - Poitiers A Dot Com World The virtuous Web cycle leads to rapid growth of –Consumer access –Internet usage –Content online

Internet Marketing - Poitiers Evaluating Web Chains Enables marketers to evaluate a wide range of Web strategies and tactics Calculate –expected value of an impression –expected value of a prospect –expected value of a new customer –expected value of a repeat buyer

Internet Marketing - Poitiers Web Chain Benefits and Probabilities Five Main Benefits Occur in the Chain Online contribution: the incremental profit from an online sale Offline contribution: incremental profit from the sale of products through the standard channel Ad-brand impact: value to a visitor, who sees the ad but doesn’t click through Web site brand impact: value of a visit to the Web site that results in benefits, but not a sale Lifetime customer value: future value of profits from a new customer

Internet Marketing - Poitiers Evaluating Web Chains

Internet Marketing - Poitiers From Web Chains to Closed Loops There’s a strong connection between Web chains and closed-loop marketing A Web chain is closed loop if –the chain extends from the marketing offer to the desired marketing response –Each step is trackable The Internet can be used to close the loop on traditional media advertising if unique identifiers are included with the ad –Dell newspaper ads contain a unique code

Internet Marketing - Poitiers Further Reading/Research

Internet Marketing - Poitiers End Session 15: Web Site Promotion

Internet Marketing - Poitiers Session 16: Final Course Review

Internet Marketing - Poitiers Typical career profiles Generalist –eBusiness-responsible person (integration of the divisions) –Project manager eCommerce –Sales manager eCommerce Products –Director/conductor of a special product group (e.g. Smartcards) Specialist –Web designer / Web master –Web editor –Internet Service Provider

Internet Marketing - Poitiers What did we learn? Course objectives and performance expectation review Knowledge Review Project Feedback and Planning Course Evaluation Internship Opportunities

Internet Marketing - Poitiers End Session 16: Final Course Review

Internet Marketing - Poitiers END OF COURSE (whew, that was fast!)