MIS/ENTR 375 Global E-Commerce

 Describe the marketing mix  Explain the importance of branding  Describe primary and secondary market research  Create a marketing plan  Identify marketing tools 6-2

 Marketing is process of developing mutually satisfying relationships with customers  Four Ps in the classical marketing mix The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. › Product › Place › Price › Promotion 6-3

PRODUCT Variety, quality, Design, Features, Brand name, Packaging, Services PRODUCT Variety, quality, Design, Features, Brand name, Packaging, Services PLACE Channels Coverage Locations Inventory Transportation Logistics PLACE Channels Coverage Locations Inventory Transportation Logistics PROMOTION Advertising, Personal Selling Sales Promotion Public Relations PROMOTION Advertising, Personal Selling Sales Promotion Public Relations PRICE List Price Discounts Allowances Payment Period Credit Terms PRICE List Price Discounts Allowances Payment Period Credit Terms Target Customers Intended Positioning Target Customers Intended Positioning

Product Place Price Promotion What is the Product? How is it Positioned? (a)Product as Service: SIM card; (b)Product as Product: Coffee; (c)Service as Service: Legal Advise or (d) Service as Product: DHL logistics, softwares etc What is the Product? How is it Positioned? (a)Product as Service: SIM card; (b)Product as Product: Coffee; (c)Service as Service: Legal Advise or (d) Service as Product: DHL logistics, softwares etc Create a Customer Portfolio. Contact them through personalized s or SMS based marketing. Collaborate with partner institutions to createshared log ins. Create a Customer Portfolio. Contact them through personalized s or SMS based marketing. Collaborate with partner institutions to createshared log ins. Free trials for 1 month. Discounted fee for 3 months and then regular charge. Charges will be based on type and variability of services. Free trials for 1 month. Discounted fee for 3 months and then regular charge. Charges will be based on type and variability of services. Distribution channels cold be banks by enabling strategic relations. AwarenessInterestTrial Create Market Make Customers dependent Market Mix Strategies

 Marketing mix from customer’s viewpoint › Four Cs marketing mix model  Customer needs and wants  Convenience  Communication  Cost to customer 6-6

6-7 Customer Needs (Product) Customer Needs (Product) Communication (Promotion) Communication (Promotion) Cost to Customer (Price) Cost to Customer (Price) Convenience (Place) Convenience (Place) Marketing Mix

 A brand › Incorporates customers’ perceptions of and experiences with a business › Combination of name, logo, and design that identifies a business’s products and services in consumers’ minds › Trusted brand can drive sales › Examples 6-8

 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 6-9

 Discover words, phrases, images to put best public “face” on business  Brand names and Slogans › Simple › Easy to remember, spell, and understand › Have “snap” › May be a proper name or use personification 6-10

 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, dell.com  MAKE Website Synonymous with the Brand 6-11

 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 6-12

 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 6-13

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 Domain name (URL) registration (continued) › ICANN contracts with accredited registrars › Accredited registrars process requests for new domain names  Network Solutions  GoDaddy  Register.com 6-15

 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 6-16

 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 6-17

 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  IDC  Frost & Sullivan  Gartner 6-18

 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: Mckinsey Quarterly 6-19

 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 6-20

 Executive Summary section › Summarizes overall plan › One to three pages › Should be written last 6-21

 Situational Analysis section › Explains what is known about the marketplace  Market size (Total Shipments X Average Unit Price)  Market segments  Target market  Market Positioning 6-22

6-23 Identify Bases for Segmenting Market Develop Relevant Market Segment profiles Forecast Total Potential Within each segment Determine Marketing Program to serve each segment Analyze Competitive Forces within each Segment Forecast own market share for each segment Estimate Cost benefit for Each Segment Do Benefits outweigh Costs for each segment? Decision on selection of target segments Stage1 Stage 2 Stage 3 Stage 4 Stage 5

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› Customers grouped by:  Geographic  Demographic  Psychographic  Behavioral › Market segment is a group of consumers who respond in similar ways to marketing efforts 1. Market Segmentation 2. Target marketing 3. Market Positioning Strategy

Clinique for Men products are designed for a segment of men who will pay more for skin care products Marketing in Action

› Evaluation of each segment’s attractiveness › Selection of segments with greatest long-term profitability › A company can choose one or several segments to target Strategy 1. Market Segmentation 2. Target marketing 3. Market Positioning

Business Week magazine targeted to business professional who don’t have much time Marketing in Action

› The place the product occupies in the consumer’s mind › Products are positioned relative to competing products › Marketers look for clear, distinctive and desirable places in positioning Strategy 1. Market Segmentation 2. Target marketing 3. Market Positioning

 Amazon.com was created to make shopping hassle-free and from home Marketing in Action

 Objectives, Strategies, and Tactics section › Objectives describe marketing mission › Strategies identify what is to be accomplished › Tactics detail how it will be done 6-31

 Budget and Performance Measures section › A budget estimates the cost of the plan › Performance measures evaluate the results of plan implementation 6-32

 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 6-33

 Search engine optimization (SEO) › Build Web pages that are easy to index by search engines  Relevant inbound links (most important)  Use good HTML tags/structure  Write clear and on-topic Web page text  Use descriptive page titles  Avoid frames and dynamic content  Use text navigation links  Use meta tags: used to add information to a web page that a web browser can see Note: using certain Web page design elements, such as frames, flash content, and image navigation links, can make it more difficult for a spider or to index a Web page.

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 Public relations effort › Establishes and maintains a company’s public image › Timely press release is a cost-effective marketing tool › Good idea to work with a PR professional 6-36

 Online advertising › Banner and sidebar ad  Rectangular image  Linked to advertiser’s site › Pop-up or pop- under ads  Appear in own window above or below browser window  Linked to advertiser’s site 6-37

 Online advertising (continued) › Rich media ads  Interactive elements, Flash technologies, streaming media  Shoshkele and streaming media ads  Permission-based marketing › Opt-in or newsletters › Double opt-in process verifies recipient voluntarily receives messages 6-38

 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 6-39

 Traditional advertising › Radio › TV › Print media › Outdoor advertising › Direct mail  Used together with online advertising to acquire new customers as inexpensively as possible 6-40

 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 6-41

 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 6-42

 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 6-43

 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 6-44

6-45 Read Saga of a Brand: Page 199, Consider the impact of branding efforts on the new startup. They should consider the changes that occurred in the late 1990s that affected the business environment and Internet access and that may have adversely affected the success of Virtual Vineyards, despite the branding efforts of its co- founders, Peter Granoff and Robert Olson.

6-46 Read Success in doing what you love: Page What was Danny Sullivan’s e-business idea? How did Sullivan’s e-business idea fill a marketplace need? What business or technical skills did Sullivan bring to his new e ‑ business that helped to make it a success? How did Sullivan harvest his e-business? What role does Sullivan’s e-business idea play in his career today? What was Danny Sullivan’s e-business idea? How did Sullivan’s e-business idea fill a marketplace need? What business or technical skills did Sullivan bring to his new e ‑ business that helped to make it a success? How did Sullivan harvest his e-business? What role does Sullivan’s e-business idea play in his career today?

6-47 Read Bidding for Placement: Page 237 What was the original e-business idea behind GoTo.com? Why did other search tools start copying the GoTo.com approach to search results? Why were consumer groups upset about the search results delivered by GoTo.com and other search tools that copied GoTo.com? How did the FTC’s response to consumer group complaints change the way GoTo.com and similar search tools presented search results? Was this change for the better or worse? Why? What ultimately happened to GoTo.com? What was the original e-business idea behind GoTo.com? Why did other search tools start copying the GoTo.com approach to search results? Why were consumer groups upset about the search results delivered by GoTo.com and other search tools that copied GoTo.com? How did the FTC’s response to consumer group complaints change the way GoTo.com and similar search tools presented search results? Was this change for the better or worse? Why? What ultimately happened to GoTo.com?