Internet Marketing Online Community

Net Gain or Silicon Snake Oil Positives and negatives of the Internet

Optimists Innovative communications Message boards and chat rooms Social interaction Community building ICQ Business-to-business builds on existing community Changing role and control of marketers

Pessimists Isolate individuals and cheapen communications Tone of voice Harm social involvement

Community Characteristics Internet communication tools Rules that define community membership Collaborative production of material by members Repeat use by members

Online Tools Categorizing Communication rings - direct Send messages directly to individuals Content trees - indirect Use a central point to collect and store information

Rules Strong and weak membership rules Strong communities require strong rules Weak community is a problem for online marketers Escalating membership rules Helps build large groups with strong cohesion – frequent flyer programs and online role-playing games

Rules and Focus Focus is crucial Maintaining focus as the group grows Content focus helps search engines locate a site

Collaboration Desirable features of member content Low cost Current Creative Credible Contributions are skewed Tilt to heavy users Online tools expand discussion networks Who do you talk to?

Community, Private and Public Goods Public and private goods Private – owned and excludable Public – enjoyed by all Public goods undersupplied Jointness of supply Hard to launch a service but easy to grow one

Launching Online Communities Merge published and member content Develop focus and attention that starts growth Combine private and public good ideas Challenges of mixing content Balance between quality and member freedom Brand reputation of sponsor Legal problems Real-time vs delayed posting Level of editorial involvement

Virtual Trade Shows Identifying prospects Servicing current customers Introducing new or qualified products Enhancing corporate image Testing new products Improving corporate morale Gathering competitor information Selling at the show

Benefits Forrester Research Broader marketing reach – 81% Increase in sales – 23% Access to industry information – 15% Continuous Lower cost Leverage face-to-face meetings Pre-qualify contacts and deliver information

Professional Forums Strong membership criteria Guarantees quality of contribution Guarantees homogeneity Prevents spamming Rapidly changing & complicated probs Need for chat Need to discuss alternative ideas Local or regional markets No competitive constraints Distributed knowledge

Emphasize Growth First Increasing returns and community Content attractiveness, member loyalty, member profiles and transaction offerings Content Attractiveness Loop Initial content draws more and encourages people to stay Member loyalty Supports personalization and customization

Loops E-Commerce Loop Commercial foundation for virtual communities Value of vendors to build community Member Profile Links community information to transaction activity