1. EC Marketing Mktg 592 October 1, 2012 Week#3 Class #5 Today: Team #1 presents their dotcom brief Wednesday: Team #2 presents In the news: Sheryl Danberg(#2 at FBook) interview today! Looking ahead…Wed: Teams give status of small biz selection process… also: some changes in guest speaker dates - see slide #3 Review of E-C Biz Models Hwork & hand in for credit New Topic: Effective Business Websites

2. In the News: Sheryl Sanberg of Facebook interviewed by cnbc --we hear the words “ engagement 10 times in her interview”—but never defined: “ The new mobile app is boosting engagement. And engagement always leads to revenue. We have the most engaged audience of mobile users anywhere. Importantly, our mobile users are more engaged than even our desktop users who are already the most engaged users anywhere in technology. If you're a mobile user, you're 20% more likely to come back to Facebook on a given day.”

3. Looking Ahead– weeks 3 – 4 - 5 some changes in speaker dates Oct 1 : Team 1 presents: Class Topic: Designing effective business websites Oct 3: Team #3 presents: Class Topic: Email Mktg fundamentals Oct 8: Google Guest speaker—paid search mktg & more… Oct 10: Team #3 presents Class topic: Search & Social Media Mktg Oct 15 : Social Media Mktg—guest from Wildfire/Google Oct 17: Team brief # 4 presents

4. Summary: Business Models for E-Commerce- the ways that online companies bring in revenues($s) 1. Subscription Model= pay per month 2. Advertising: CPM - pay per 1000 impressions - goal is brand awareness Advertising- CPC - pay per click - paying to get a visitor to your website Advertising-CPA-- pay per action by the visitor to a website CPA = A negotiated amount for a specific action(download, lead, order) 3. ASP = pay per user of a web site ’ s services 4. Affiliate Mktg = a commission paid for a click to your site 5. The retail model = pay per product purchased online 6. Classified ad model = pay per listing (ebay, craigslist, …) 7. Freemium model = free for basic service + premium for extras 8. Transaction model—example Pay per stock trade

5. Homework review: Practice with EC Business Models 1. What is Apple itunes business model= pay per ________ 2. What is Napster.com’s ec business model? 3. What is Linkedin’s Target Market and.. give two of its Business Models:

6. Homework review continued… Practice with EC Business Models 4. Open Table’s business models Target customer #1 = Target Customer #2 = who provides their revenues & explain how it works 5. TripAdvisor : sometimes called ‘the Yelp for the Travel Industry’ with millions of traveler info & reviews Explain TripAdvisor’s primary way to get revenues 6. read page 106-107: Pandora’s Freemium Model Online Music Site Stock symbol is “P” stock price is $10.5…trend line is …. Revenue_______ Profitability ________ What is a key cost factor ____________

7. Building an E-Commerce website: Chapter 4 in the textbook: required reading First. Need a site-plan (what presentation, what functionality) …then build it and test it. …host the site …maintain it, make regular updates …market it to the target customers! Case Study in Textbook: Ch 4 read how REI rebuilt its website several times to add more customer features and now focused on mobile users

8. #1. Pop-Ups #2. Require software install to view their site #3. Dead Links #4. Confusing Navigation #5. Require to register and log-on before using the site Content out of date No contact information The 15 E-commerce website features that annoy customers

9. #1. Functionality--Pages that work and load quickly—and point the customer toward toward your product offerings #2. Informational- Links that customers can easily find to discover more about your products #3. Ease of Use Ease of Purchase Multi-browser functionality Simple graphics, Legible text Chapter 4 : The 8 most successful factors in successful E-Commerce website design Table 4.11 page 235

10. Options to building an EC website Option 1 : Build your own Site with HTML, Flash, Microsoft Frontpage, Cold Fusion, Dream weaver

11. Options to building an EC website Option 2: Go with a company like Go Daddy or Intuit -Use Pre-built templates -Easily & cheaply create a website using online tools Intuit/Homestead -is an example of “ All-in One ” services for small businesses… - all the tools to get URL, build a site, host it - go live on the Internet -& services to improve the site & drive traffic to it.

12. Options to building an EC website Option 3: Get a website designer to build your site Option 4: Outsource to a local or national web site developer : Ex: company named ‘ digital river ’ -stock symbol DRIV

13. Why businesses Use Homestead or GoDaddy or Yahoo or Valueweb as their web service Easy to Do and Fast: Some sites can be built in a few hours Cheap: Prices range from as low as $9.99/month……and up to $239.99/month You can make a simple or complex site One stop shop (hosting, editing, domain registration, support, search engine marketing, professional design services)

14. Types of websites for a Business Simple, Brochure-ware web site - promotional marketing type site where there is no transaction taking place directly on the site The vast majority of websites are simple, brochure-ware site See Homestead.com ’ s ‘ success stories to view brochure-ware sites http://www.homestead.com/~site/small-business-website- design.ffhtml

15. -the most complicated websites offer online transactions E-commerce transactions website - many critical elements that must work well Registration Section List of products with pricing and description Shopping cart Order Acknowledgement Billing and Shipping Instructions Section Credit Card Capability & Credit card validation Shipping instructions and options Customer Service …Handling of Returns

16. Elements an effective ec web site—key elements for the small business homepage what’s the business? It is very clear from the homepage what products or services the company offers. The content has keywords for good SEO..so people can find your biz. An easy way to take a next step! --this is the “Call to action” Ways for people to contact the business (phone numbers, email, address) Provide a place to sign up for email newsletters Social media connections—links to facebook page, etc

17. “ Calls to action ” on a website The best ‘ calls to action ’ give an incentive for visitors to act now or buy today good examples: special product price today; 30 day free trial; deal of the day-- a limited time offer is the latest retail call to action Please note: offering an email sign up or email newsletters is good but is not a Dr K ‘ call to action ’

18. ‘ Active spaces ’ in web site design ----------------------------------------------------------------- Creation of “active spaces” - engages the visitor, create ‘stickiness’ -allows a visitor to ‘taste’ the value of a website’s offerings And:captures information about the interested visitor for follow-up Examples on next slide:

19. Web sites with an ‘ active space ’ & what this feature delivers ---- NutriSystem Progressive Insurance--Get a Quote 1-800-Flowers --- ‘Find a Gift Fast’ - - Allows a visitor to ‘ taste ’ the value of a website ’ s offerings -- it engages them --Gives the online biz something back. A way to capture the prospect ’ s information for later follow-up

20. Some examples of biz websites Squeeze in—B2C…big emphasis on social media mktg Homestead.com B2B websites & small biz services Fogcatcherinn.com B2C Cambria Ca getaway hotel EastBay.com -- sports stuff Blank-label.com NaturallyCurly.com

21. Homework for Wed 1.Read Ch 7: E-Commerce Marketing Communications— this chapter gives an introduction to the many kinds of online mktg(display ads, search ads, email,social media mktg) 2.Read: Understanding the Costs & Benefits of Online Mktg: page 467-477:This section of Ch 7 illustrates the “sale funnel” on Page 471 from visitor awareness to purchase 3. If time—start reading Ch 8 in eMarketing(free online text).