E-Marketing Virtual Business Copyright © Texas Education Agency, All rights reserved

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Effects of E-Marketing Loss of distribution channel – the middleman Possible addition of distribution channel – example, comparison shopping sites No need to hiring advertising company Can outsource if desired 3 Copyright © Texas Education Agency, All rights reserved

The Competition-What to Know: Their web site address Physical address if they have one Annual sales Number of employees Products and/or services SWOT Their advertisements Promotions Pricing for similar products 4 Copyright © Texas Education Agency, All rights reserved

Marketing Comparison E-Marketing –Less expensive –Takes less time to create campaigns –Tracking is easier Tracks when s are opened Tracks ‘hits’ to site –Feedback easily accessible Online polls –More specific target market Traditional Marketing –More expensive –Takes more time to create campaigns –Tracking is more difficult May require an outside company to monitor –Feedback not easily accessible Hire people to conduct surveys Customer response forms –Mass mailings 5 Copyright © Texas Education Agency, All rights reserved

Attracting and Keeping Customers Ask visitors to bookmark the site Include your URL on all print documents –Business cards –Stationery –Brochures –Direct mail –Post cards Offer a free service –Calculators –Coupons or discounts Publish an newsletter –Tips, industry information, new products Copyright © Texas Education Agency, All rights reserved 6

Attracting and Keeping Customers (continued) Ask people to sign up for s and newsletters Reminder and follow-up s “viral”, catchy promotion techniques Include a site map Search engine optimization (so your site can rank higher) Contact info. on every page Request links from local and complementary businesses 7 Copyright © Texas Education Agency, All rights reserved

Attracting and Keeping Customers (continued) Links from trade organizations to which you belong Write articles for other sites to use Issue a press release in online news databases Use social media sites Begin a business blog on your site Promote the site in online discussion groups Include FAQs 8 Copyright © Texas Education Agency, All rights reserved

Identifying Your Market Geographic location Where customers live Demographics Age, gender, education, … Psychographic Lifestyle characteristics 9 Copyright © Texas Education Agency, All rights reserved

External Factors Affecting Market Changing economic conditions New rules or regulations Trends and consumer preferences Industry events New technologies 10 Copyright © Texas Education Agency, All rights reserved

Market Information Market research –Gathering Data (Data mining) Analyzing data from customers such as Internet traffic and buying and behavior patterns of visitors and customers. Having visitors register on your site –Predicting Data Software that can make predictions about buyer behavior. 11 Copyright © Texas Education Agency, All rights reserved

Market Information (continued) –Customer profiles and traffic Segmenting – Demographics. Tracking – Number of site visitors. Cookies – A file that identifies the customer and his preferences. 12 Copyright © Texas Education Agency, All rights reserved

Advertising - Online Banners (larger) and buttons (smaller) –Strip of advertising at top or margin of a web page –Little customer response Interstitials –Pop-up ads –Can be annoying to customers 13 Copyright © Texas Education Agency, All rights reserved

Advertising (continued) Personal selling –Visiting a web site – ing a potential customer –Moderate response rate Sales promotion –Coupons and samples –Contests and prizes Mobile phones 14 Copyright © Texas Education Agency, All rights reserved

Advertising - Offline Advertising products through print ads –Newspapers –Magazines Post cards Direct mail Product/service flyers and brochures Billboards Radio, TV 15 Copyright © Texas Education Agency, All rights reserved

Advertising Conversion Rate The rate of conversion of responses (as in direct mail campaigns) into sales Determines which sales campaigns are effective <1% is common 2% or more is considered successful 16 Copyright © Texas Education Agency, All rights reserved

Shopping Cart Abandonment Main reasons customers decide not to check out: –High shipping costs –Just comparison shopping –No coupons –Security concerns 17 Copyright © Texas Education Agency, All rights reserved

Ways to Increase Checkout Free or multiple shipping options “add to cart” psychologically sounds better than “buy now” Obvious privacy policy Provide a step tracker when checking out Option for verifying if item is in stock Encourage reviews Make editing the order easy Include product photos at checkout showing items in the cart 18 Copyright © Texas Education Agency, All rights reserved

Independent Practice Assignments Target Market Comparison Chart – Students will create a chart, either on the computer, poster board, or flip chart paper, that identifies the following types of customers as well as two web sites that are marketing their products or services to those particular customers: 1) new parents, 2) teenagers, 3) musicians, 4) other businesses, and 5) travelers. The chart should include the name and URL of each site and a product or service that each site sells. E-Commerce Marketing Plan – The student will create a marketing plan for a product or service of their choosing which is to include two pieces each of offline and online marketing documents. 19 Copyright © Texas Education Agency, All rights reserved

Independent Practice Assignments (continued) Marketing Venn Diagram Assignment #3 – Students are to create a three-circle Venn diagram, either on the computer, poster board, or flipchart paper comparing and contrasting the characteristics of e-marketing and traditional marketing. This can provide a starting point for students: while types of online and offline marketing may be in separate circles, the ways markets can be identified can be in the overlapping section. Students can include the topics they choose to be in each of the circles, but they need to make sure they do have overlapping characteristics in the center. 20 Copyright © Texas Education Agency, All rights reserved