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COMP2113: Introduction to E-business Richard Henson University of Worcester March 2008 Week 5: E-Marketing Objectives: Define marketing & e-marketing Compare and contrast different aspects emarketing with traditional marketing use of mass media (TV, press, etc.) Explain how the role of the customer has been changed by e-commerce Explain crucial role of search engines in attracting customers Apply the basic principles of designing a website that will attract and retain customers E-Commerce Marketing Marketing is about: identifying, anticipating and satisfying customer needs and setting out to do so profitably! E-commerce marketing is about using the World Wide Web for achieving the above ends. different way to get the message across new business challenge Marketing plans now need to include a consideration of the E-Commerce channel E-Commerce Marketing Issues What is happening out in the commercial world? typically: site-centric models (product-driven)… shifting to user-centric models (consumer-driven) Huge growth of “customisation” one to one service driven by effective use of web(site) technologies Businesses being forced to continual review their different ways of giving service to the customer Egg: an example Launched by Prudential in October 1998 £7bn worth of deposits in first year of business Soon expanded into a range of financial services (banking, credit, insurance) Egg’s strategy E-commerce supports two generic business strategies: Lowest delivered cost Highest perceived quality Egg’s strategy (cont’d) Lowest delivered cost No branch network Customers input transactions Highest perceived quality ‘personalised’ service Rapid response Customer Relationship Management systems All enabled via the electronic (e-) business model What’s different about the e-Marketing channel? Customer controls the relationship chooses to visit the web site… more formally known as a “pull medium” (customer pulls the information to him/her) Opposite of “push medium” more conventional mediums such as the press or TV advertising products “pushed” onto customer Advantages of the e-marketing channel Customer has free choice to visit the site (or NOT!): may look at one page or many… » could be impressed and make it their home/favourite page » may never visit again! Business merely provide the information… customer decides whether or not » to pull that information » to then read it To use e-marketing successfully, the business has to get their website right… Effective use of the eMarketing Channel Very many websites been developed to sell products some very successful many abject failures… On-line trading websites now been around for more than 10 years – well established guidelines for success freely available on the world wide web… » e.g. http://e-marketing-tips.distinctia.com/analyzingdesign.html Effective e-Marketing Many businesses still not following these guidelines… WHY NOT? » Discuss (10 mins) in groups… The Recent Growth of e-Marketing Huge growth area in recent years… Now attracts large conferences e.g. “Technologies for Marketing” Earl’s Court, two days… Focus on all aspects of using marketing technologies to fulfil the marketing function New Opportunities available through e-Marketing Products can easily be marketed to countries beyond the UK… Not a light enterprise… need to be sensitive to other cultures! need to get advice on the local culture(s) before creating the website aimed at that culture Famous advice (from whom?) “When in Rome do as the Romans do.” Particularly, what are the local ways: to present products of doing business Selling via website to other cultures Need to communicate and engage with the locals: Some will speak English Many (most?) will not consider a translation into a local language » but has to be accurate!!! Find out something of the local buying habits What NOT to sell to other cultures Don’t waste your time selling what the locals already have in abundance coals to Newcastle! ‘fridges to Iceland!! sand to the Arabian Gulf!!! Or what they make better at home: cheese to the French (eg recent “The Apprentice”) Taxation Issues and other cultures For trading outside the EU, need to consider tax implications: here in the UK also in your target market Otherwise, the business may find that: the customer has cancelled his/her credit card transaction Their goods are impounded on some foreign shore with a clearance bill attached » and made out to them… The Law and Selling to other Cultures The seller is responsible for keeping to the law: where the customer resides… AND where the business is based the Internet may makes the selling and representation of products easier… But nothing changes in terms of the need for you to trade legally according to the laws of both origination and destination countries Ignorance is never a defence in the eyes of the law !!! Designing the website for customers As with all marketing materials… design is VERY important » used by the customer to assess the quality of product AND business itself Think and behave like a “local” customer design pages accordingly… may mean different sites for different markets Designing the website for customers Customer perception of “quality” will come from all aspects of interacting web page fonts & colour scheme » “corporate feel” ease of selecting products security of their personal and financial data assurances about; » delivering the product? » the goods performing as advertised » dealing with complaint/problems Site design Use ALL principles learned in COMP1141: http://www.worc.ac.uk/departs/bm_it/viv/c omp1141/resources/activities.htm Choose the URL (site locator on the www) CAREFULLY: “guessable” URL will get more hits URL based on a/the brand name will probably get more hits Bad design features Scrolling Poor navigation between pages Large graphic files One page only Irrelevant or boring information only of interest within the organisation No telephone number or email address Good design features Plenty of opportunity for interaction Multimedia/sound Support “streaming” so sound/video can be appreciated in real time rather than having to wait for the whole thing to download (eventually!) smell – via hardware device attached to the user’s computer Other good features of a well-managed site After sales service info! Customer Relationship Management (CRM) Use of email for customer reaction/feedback Response to emails manage it and action it! Otherwise, goodwill will suffer Have an infrastructure to support enquiries look after customer relations Refer to telephone help-line and call centre to deal with high volume after sales service “Adding Value” via the website In the early days, the rate of hits (visits) to the website WAS the value of the “virtual” (i.e no physical shop) company (!) formula based on hugely optimistic hits-sales ratio Caused stock market BOOM… and BUST! Formula revised downwards, but same principle applies… » e.g. every tenth visitor will be a customer… » Website value to the business is a function of it’s “hit rate” Getting a good “hit rate” for the Website The business won’t get ANY benefits from increase in sales if there are no visitors however excellent the site may be MANY, MANY ways to maximise the number of visitors to a site… Suggestions? Group Activity… What are Search Engines? Computer systems designed for locating information on the web Accessible, free of charge, through the Internet Consist of: a database of keywords, URLs, and websites a program which allows Internet users to search through its indexes, normally using keywords, in order to find sites of interest special web-browsing programs known as ‘spiders ’or ‘robots ’ How do Search Engines work? Gather keywords through “spidering” around websites The spiders: crawl round the net looking out for keywords in web pages retrieve keywords take keywords back to the search engine database A program automatically adds the lists of keywords to the database All the information in the database is continually available, via indexes, to users Why are Search Engines crucial to Marketing? FREE! all of the search engines provide a free service to both shopper and merchant Make their money through advertising… based on their own HUGE volumes of traffic Harnesses the most powerful and most frequently used technology on the web But use needs to be monitored: the site should be re-submitted on a regular basis the content, especially the searchable ‘tags ’, should be kept ‘fresh ’ (i.e. representative) Search Engine Tips Search engine searching is based on page content as well as the URL Essential to choose the keywords carefully Use keywords in: title tags & “metatags” (page description and keywords) - kept up to date! first paragraph of page content Search engines should be monitored to see if the site is no longer featured if so, resubmit… Effective Use of Search Engines (1) Search engines like Google categorise pages based on (amongst other things): hit rate number of external links on site The Objective should always be: to use appropriate techniques to cause the search engine display your site in its “top ten” Practical Exercise (on your own – 10 min) Think about the website you started to develop last week Write down six keywords to represent your site Now include a short paragraph for the home page that includes as many of those keywords as possible, as often as you can… Effective Use of Search Engines (2) Once an e-commerce site does achieve the dizzy heights of a “top ten” placing with the search engines for appropriate keywords… you’re in the big time! short-term, a lot of traffic can be expected to the site HOWEVER… The real challenge is to KEEP IT THERE… The rest of this lecture looks at strategies for doing just that… Direct Advertising Put the URL everywhere you can… TV, radio (expensive) newspapers, magazines email messages paper correspondence business cards side of the van in a field adjacent to a motorway Email Advertising Business needs to capture an email address before can send mail advertising its website Need to have a means of capturing and storing email addresses on the website Blocks of email address actually sold based on perceived interests of (potential) customers on-line customers can be targeted with products, based on clicking behaviour Stickiness! This is about using techniques to keep users: looking round the site returning to it once they have discovered it Different problem to getting them to the site in the first place The concept of “stickiness” drives web site development commercially every site owner wants to get plenty of hits but also plenty of repeat hits… Stickiness Tips Site must have plenty of content must be the right sort of content for the type of visitors expected… Content must also be: easy to find (navigation!) up to date Continuous change and improvement are therefore required… Stickiness Tips Offer additional services: free email calendaring service Thinking behind this: can cause considerable inconvenience if email address is changed or calendar entries have to be re-keyed therefore “gets the user hooked” » unlikely that their Internet behaviour will change… » Would be too much hassle! Looking after visitors: reward them! Just by visiting your site and registering the prospective customer can get “points” (or e.g. air miles) My points Nectar points The personal details may then be used for marketing purposes Buying products from the site might bring them more points… Looking after visitors: publicising discounts Award discounts to customers ordering online Let it be known that such discounts are only available from the website Examples: Go - discount for booking tickets online Train tickets - online discount provider of train tickets Other Promotional Ideas Develop trade links with other sites with related interests/collaboration Regional/trade/interest group - spine or “feeding chain” approach Newsgroups - take care however as they are not meant for promotion Use “portals” enriches value by providing an information service Hot links (agreed and mutual) switch to the site from another site/vice versa Gathering Marketing information on customers Using the web to gather valuable market information: overtly e.g. “Mypoints” collects customer information by insisting that a form is filled in Anonymously » e.g. using cookies » e.g. analysing web server log files MUST (privacy issue) look after customer data “Cookies” Files that sit on your computer and tell web sites: your personal “clicking” preferences e.g. how many times you have visited a particular site Controversial – write data onto the user’s hard drive, probably “on the sly” Each participating website will store its own cookie, with its own security arrangements Cookies take up very little disk space (e.g. 256 bytes) “Cookies” Potentially a privacy issue: should be helpful to the consumer and add value should not be intrusive Should not be accessible to anyone else! Cookies can be “switched off” (i.e. filtered out/deleted) as a browser preference! Analysing web server log files Most types of web server support this. Examples: Microsoft IIS Apache LotusDomino Oracle Netware Gatherable information : Who has been using your site? Which parts of the sites were visited most Can be done manually Best to use specialist packages e.g. Log Analyzer v5.0 from WebTrends cost £300 Customer led advertising Possible to track a customer’s web habits so adverts can be appropriately targeted e.g. Doubleclick.com Portals could link to e.g. local purchasing consortia rswww.com (RS components online engineering catalogue) Software available to learn about users' buying habits and consequently direct aim Aim news feeds and advice content at users/potential customers to maintain their loyalty Technologies for Improving Hit Rate Many specialised applications: Some very simple » » » » counters meta name generators date/time/special effects, etc. (client end) links to code located on other sides (e.g weather forecast) Others more sophisticated: two categories: » watch/record visitor behaviour Example: ASP Sheriff » provide more features for the site Any number of possibilities The Low-Tech Business: Getting someone else to do it for you… Fine, but web design and e-Marketing are two different things Suggestion: web designer to create the site E-Marketeer to use appropriate methods from the above and work with the designer to enhance the site so it will always appear in the search engine top ten… Cost of e-Marketing Needs to be seen in terms of Return on Investment (ROI)? or payback? many SMEs report they have had little benefit from their investment in getting a web presence ROI therefore zero!!! Usually this is because: they have not promoted (or been advised to promote) their site sufficiently/effectively not aware that the initial and ongoing cost of appropriately marketing a site may exceed the cost of developing/maintaining the site! Invest a little and get nothing back – or invest several thousands, and get a big response… Next week Specific features of an e-commerce web site