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

2. Internet Marketing - Poitiers 2003 2 End Session 12: Website Building Workshop

3. Internet Marketing - Poitiers 2003 3 Session 13: Functional development of the website

4. Internet Marketing - Poitiers 2003 4 Information Transaction Interaction

5. Internet Marketing - Poitiers 2003 5 Stages (or Generations) of Websites Stage I: Publishing sites - Information Stage II: Databases and Forms - Transaction Stage III: Personalization - Interaction

6. Internet Marketing - Poitiers 2003 6 Stage I: Information Info Links http://www.france98.com/french/index.html Pictures/Information

7. Internet Marketing - Poitiers 2003 7 Stage I What makes this a Stage I Website ? Organises, Broadcasts and Disseminates Information

8. Internet Marketing - Poitiers 2003 8 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

9. Internet Marketing - Poitiers 2003 9 Stage II What Makes this a Stage II Website? The ability to retrieve information to respond to user requests

10. Internet Marketing - Poitiers 2003 10 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.

11. Internet Marketing - Poitiers 2003 11 Stage III What Makes this a Stage III Website? More than ask-respond… Anticipates Suggests

12. Internet Marketing - Poitiers 2003 12 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!

13. Internet Marketing - Poitiers 2003 13 Website Organisational Aspects

14. Internet Marketing - Poitiers 2003 14 Cost and Performance Table 5.5 One of the best uses of Web chain analysis is to compare alternative methods of acquiring customers

15. Internet Marketing - Poitiers 2003 15 End Session 13: Functional development of the website

16. Internet Marketing - Poitiers 2003 16 Session 14: Drivers of internet success How to evaluate your site

17. Internet Marketing - Poitiers 2003 17 End Session 14

18. Internet Marketing - Poitiers 2003 18 Session 15: Website Promotion

19. Internet Marketing - Poitiers 2003 19 Promotion Two ways to think about this topic: 1.Online communication –The URL –Search engine positioning –Webvertising –Affiliate marketing –Viral marketing –Email marketing –Community marketing 2.Role of the website in the customer contact/communication mix

20. Internet Marketing - Poitiers 2003 20 Promotion: Comparison of communication

21. Internet Marketing - Poitiers 2003 21 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

22. Internet Marketing - Poitiers 2003 22 Most Popular Web Sites Yahoo! Leads Figure 5.1

23. Internet Marketing - Poitiers 2003 23 Yahoo! Brand Extensions The Success of the Yahoo! Brand Figure 5.2

24. Internet Marketing - Poitiers 2003 24 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

25. Internet Marketing - Poitiers 2003 25 Sponsorship Alliances Banner advertising Prospect fees Sales commissions Revenue-Based Biz Models Use the Net to Make Money Provider Pays

26. Internet Marketing - Poitiers 2003 26 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

27. Internet Marketing - Poitiers 2003 27 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

28. Internet Marketing - Poitiers 2003 28 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…

29. Internet Marketing - Poitiers 2003 29 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

30. Internet Marketing - Poitiers 2003 30 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)

31. Internet Marketing - Poitiers 2003 31 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

32. Internet Marketing - Poitiers 2003 32 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

33. Internet Marketing - Poitiers 2003 33 A Dot Com World The virtuous Web cycle leads to rapid growth of –Consumer access –Internet usage –Content online

34. Internet Marketing - Poitiers 2003 34 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

35. Internet Marketing - Poitiers 2003 35 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

36. Internet Marketing - Poitiers 2003 36 Evaluating Web Chains

37. Internet Marketing - Poitiers 2003 37 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

38. Internet Marketing - Poitiers 2003 38 Further Reading/Research

39. Internet Marketing - Poitiers 2003 39 End Session 15: Web Site Promotion

40. Internet Marketing - Poitiers 2003 40 Session 16: Final Course Review

41. Internet Marketing - Poitiers 2003 41 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

42. Internet Marketing - Poitiers 2003 42 What did we learn? Course objectives and performance expectation review Knowledge Review Project Feedback and Planning Course Evaluation Internship Opportunities

43. Internet Marketing - Poitiers 2003 43 End Session 16: Final Course Review

44. Internet Marketing - Poitiers 2003 44 END OF COURSE (whew, that was fast!)