Oz – Foundations of Electronic Commerce © 2002 Prentice Hall Marketing on the Web

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall2 Learning Objectives Explain the marketing value of domain-name recognition Recognize important design elements in Web pages geared to various demographic groups Compare various affiliate models in Web marketing Articulate the pros and cons of marketing Propose statistics and ratios for measuring success in Web marketing

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall3 Domain-name recognition Users often search the Web for names they recognize Domain name rules A difficult process

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall4 Appealing Web site design Page organization Determine where on the page the users should go first Color Bright colors attract, cooler colors make visitors more comfortable Pizzazz “special attractions”, free downloads, periodically change site appearance, etc.

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall Think Web, not store!

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall6 Tradition, tradition Problems with applying “brick-and- mortar” approaches to the Web Limit selection of items to the ones available offline

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall7 Choice and control More than one way to navigate the site Online stores should offer more information, rather than “atmosphere” INTERACTIVITY Degree on INTERACTIVITY Chat rooms Consumer reviews Product ratings, etc.

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall8 The importance of menus Order of items is very important Menus should take advantage of the way people tend to examine new information in print or on the screen

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall9 Cultural differences Culture - the aggregate of perceptions, gestures, and daily priorities of a demographic group The demographic group is often a nation e-commerce challenge: how to be a global company which at the same time is attuned to each targeted world region “glocalization”

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall10 Watch your language The little things matter Localize

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall11 The Five Do’s of Multinational Sites Strategize Translate properly Know the audience Be egalitarian Avoid cultural imperialism

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall Affiliate marketing A marketing tool unique to the web

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall13 Affiliate program - a Web site including on its pages advertising links to another merchant’s Web site Referral fee Several firms specialize in affiliate program services Online forms for firms to register as affliates

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall14 Models of affiliate programs Pay-per-sale model The merchant pays the affiliate a percentage of the actual sale value Pay-per-click model Pay affiliates based on the number of visitors generated

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall15 Pay-per-lead model Commission based on the number of qualified leads Hybrid programs Affiliate gets paid for more than one element of the referral

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall16 Multitiered programs Affiliates may recruit subaffiliates Cross-linking and cross-luring Cross-linking: two firms agree to place each other’s clickable icon or banner Cross-luring: one site is trying to gain business at the expense of another Online shopping tracking bars

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall17 How not to annoy the customers Main customer complaints (Business Week, 2/7/2000) in reverse order of importance Site did not offer enough gift ideas Prices were not competitive Site did not provide enough information Site was hard to navigate Selections were limited

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall18 Did not get a confirmation or status report Connection trouble Paid too much for delivery Item was not delivered on time Product was out of stock

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall19 Major factors that prevent people from continuing to buy on the Web Too much spam following online purchases Opt-in vs. opt-out approach Low level of trust High level of concern about third-party monitoring

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall20 Consumer profiling The process of building dossiers about consumers Targeting most likely potential customers Tailoring marketing to the tastes and shopping habits of individuals Companies that specialize in consumer profiling Privacy issues

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall21 Targeted advertising Reading the numbers Demographics Where to advertise?

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall22 marketing Spam - unsolicited opt-in A better alternative: opt-in Mail sent only to people who have expressed their consent to receive commercial messages

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall23 Measuring marketing success Marketing success should not be measured in terms of traffic but in terms of conversions Importance if repeat visits

Oz – Foundations of Electronic Commerce © 2002 Prentice Hall Marketing on the Web