Download NET GEN | MARKETING Business Plan

NETGEN | MARKETING
Business Plan
2008 – 2011
MSc in Electronic Commerce
Dublin City University
by
Keith Elliott
Polle van Elsacker
30-07-2007
Declaration
We the undersigned declare that the project material, which we now submit, is our own work.
Any assistance received by way of borrowing from the work of others has been cited and
acknowledged within the work. We make this declaration in the knowledge that a breach of
the rules pertaining to project submission may carry serious consequences.
NETGEN | MARKETING
‘It’s no longer a question of whether businesses should invest; it’s now a matter of
how much. Marketers have realised there is no escaping the enormous impact that
Digital is having. The key now is to work out how to fit this new opportunity into the
services marketing agencies offer1.’
nd
Michael de Kare-Silver, Managing Director AKQA, UK’s 2
largest Marketing Agency
The incredible growth of online has beaten all the industry predictions. The internet
has now overtaken National Press as marketers have followed their audiences online
and enjoyed measurable returns on their investment.
Paul Pilkington, Director, Entertainment and Media Practice, PricewaterhouseCoopers LLP
1
Patrick De Pelsmacker et al, Marketing communication: A European Perspective, 2006 pg 492
-2-
NETGEN | MARKETING
CONTENTS
CONTENTS........................................................................................................................... 3
1. EXECUTIVE SUMMARY ................................................................................................... 7
1.1 PRODUCTS AND SERVICES ..................................................................................... 7
1.2 MARKET...................................................................................................................... 8
1.4 STRATEGY ................................................................................................................. 9
1.5 STAFFING ................................................................................................................. 10
1.6 FINANCIAL SUMMARY ............................................................................................. 10
1.7 FUNDING REQUIREMENTS ..................................................................................... 10
1.8 EXIT STRATEGY....................................................................................................... 10
2. CORPORATE BACKGROUND........................................................................................ 11
2.1 MANAGEMENT TEAM .............................................................................................. 11
2.2 BOARD OF DIRECTORS .......................................................................................... 11
2.2 BOARD OF DIRECTORS .......................................................................................... 12
2.3 LEGAL ....................................................................................................................... 12
2.4 OFFICES ................................................................................................................... 12
3. BUSINESS DESCRIPTION ............................................................................................. 13
3.1 VISION ...................................................................................................................... 13
3.2 OBJECTIVES ............................................................................................................ 13
3.3 BUSINESS MODEL ................................................................................................... 13
3.4 CORE COMPETENCIES ........................................................................................... 15
3.5 LONG TERM STRATEGY OBJECTIVES .................................................................. 16
3.6 CUSTOMER RELATIONSHIPS ................................................................................. 16
3.7 STRATEGIC RELATIONSHIPS ................................................................................. 17
4. INDUSTRY ANALYSIS .................................................................................................... 18
4.1 INTRODUCTION ....................................................................................................... 18
4.2 ONLINE MARKETING SERVICES............................................................................. 19
4.3 MARKET FOR ONLINE MARKETING SERVICES .................................................... 21
4.4 HIGHER EDUCATION INSTITUTES ......................................................................... 22
4.5 MARKET DRIVERS OF ONLINE MARKETING FOR HEI’S....................................... 23
4.5.1 NET-GENERATION............................................................................................. 24
4.5.2 INTERNATIONAL STUDENT MOVEMENT ......................................................... 24
4.5.3 NEED FOR HIGHER RETURN ON MARKETING EFFORTS .............................. 26
4.6 USE OF ONLINE MARKETING BY HEI’S.................................................................. 27
4.6.1 PAY PER CLICK ADVERTISING......................................................................... 28
4.6.2 ORGANIC PAGE RANKING ................................................................................ 29
-3-
NETGEN | MARKETING
4.6.3 INSTITUTE BLOGS ............................................................................................. 29
4.6.4 VIRTUAL WORLDS ............................................................................................. 30
4.6.5 SOCIAL NETWORKS .......................................................................................... 32
4.7 LIMITATIONS OF CURRENT SERVICES ................................................................. 32
4.8 COMPETITOR PROFILES ........................................................................................ 33
5. SERVICES ...................................................................................................................... 34
5.1 SERVICES OVERVIEW............................................................................................. 34
5.1.1 GENERAL MARKETING AUDIT .......................................................................... 34
5.1.2 WEB DEVELOPMENT SERVICES ......................................................................... 35
5.1.3 ONLINE ADVERTISING SERVICES ................................................................... 36
5.1.5 VIRTUAL WORLD SERVICES ............................................................................ 38
5.1.6 INSTITUTE BLOG MARKETING ......................................................................... 39
5.1.7 TRAINING SERVICES......................................................................................... 40
6. SALES AND MARKETING .............................................................................................. 43
6.1 INTRODUCTION ....................................................................................................... 43
6.2 CUSTOMER PROPOSITION..................................................................................... 43
6.3 INFORMING THE CUSTOMERS DECISION............................................................. 45
6.4 MARKET SPENDING ................................................................................................ 47
6.5 SALES ....................................................................................................................... 47
7. FINANCIAL OVERVIEW.................................................................................................. 51
7.1 INTRODUCTION ....................................................................................................... 51
7.3 MANAGEMENT AND BOARD ................................................................................... 52
7.4 EXTERNAL INVESTORS .......................................................................................... 52
7.5 REVENUES ............................................................................................................... 52
7.5.1 DISTRIBUTION OF SALES BY SERVICE CATEGORY ...................................... 52
7.6 LIST OF ASSUMPTIONS .......................................................................................... 53
7.6.1 COST OF SALES ................................................................................................ 53
7.6.2 GROSS MARGIN ................................................................................................ 53
7.6.3 SALARIES ........................................................................................................... 53
7.6.4 RENTS, RATES, INSURANCE AND OTHER OFFICE COSTS ........................... 54
7.6.5 PROFESSIONAL FEES....................................................................................... 54
7.6.6 MARKETING ....................................................................................................... 54
7.6.7 FIXED ASSETS AND DEPRECIATION ............................................................... 54
7.6.8 BANK INTEREST AND CHARGES ..................................................................... 54
7.6.9 CURRENCY ........................................................................................................ 54
7.7 FINANCIAL STATEMENTS ....................................................................................... 55
8. APPENDICES ................................................................................................................. 58
-4-
NETGEN | MARKETING
LIST OF FIGURES
Figure 1.1 Customer Penetration, page 10
Figure 1.2 Financial Summary, page 11
Figure 2.1 Staffing Requirements, page 13
Figure 4.1 Online Marketing Services Top Ten Companies, page 21
Figure 4.2 UK online Advertising Spend growth, page 22
Figure 4.3 Influx of international students and their origin for the UK and Ireland, page 27
Figure 4.4 Keyword analysis HEI search queries, page 28
Figure 4.5 HEI PPC Usage, page 29
Figure 4.6 HEI Blog Usage, page 30
Figure 4.7 HEI’s currently present in virtual worlds, page 32
Figure 4.8 Competitor Profile, page 34
Figure 5.1 General Marketing Audit, page 35
Figure 5.2 Web Development, page 37
Figure 5.3 Online Advertising, page 39
Figure 5.4 Virtual World services, page 40
Figure 5.5 Blog Services, page 41
Figure 5.6 Training Services, page 43
Figure 6.1 Conference Breakdown, page 47
Figure 6.2 Marketing Spending, page 48
Figure 6.3 Customer Penetration, page 48
Figure 6.4 Year 1 Sales breakdown, page 49
Figure 6.5 Year 2 Sales breakdown, page 50
Figure 6.6 Year 3 Sales breakdown, page 51
Figure 7.1 Sources of Capital, page 53
Figure 7.2 Distribution of Sales by service, page 54
Figure 7.3 Profit and Loss Account, page 56
Figure 7.4 Cash Flow Statement, page 57
Figure 7.5 Balance Sheet, page 58
-5-
NETGEN | MARKETING
LIST OF APPENDICES
Appendix 1: Methodology
Appendix 2 HEI Current Marketing Efforts
Appendix 3 Search Engine Optimisation Analysis
Appendix 4 Online Marketing Audit Report
Appendix 5 Pay Per Click Report
Appendix 6 Profit and Loss accounts by month
Appendix 7 Projected Cash-Flow by month
Appendix 8 Balance Sheet by Month
Appendix 9 Projected Sales by Month
Appendix 10 Cost of Sales
Appendix 11 Salaries by Year
Appendix 12 Rents, Rates and Insurance by Month
Appendix 13 Office Costs
Appendix 14 Professional Fees
Appendix 15 Marketing Costs By Month
Appendix 16 Fixed Assets by Month
Appendix 17 Fixed Assets by Month
-6-
NETGEN | MARKETING
1. EXECUTIVE SUMMARY
NetGenMarketing.com is an Irish company based in Dublin. NetGenMarketing.com provides
online marketing services and training to Higher Education Institutes (HEI’s). Services are
made up of web development, online advertising strategies, software development and
training courses. These services have many facets to them and are aimed at providing HEI’s
with the best set of online marketing tools available in the UK and Ireland through high levels
of expertise, customer service; and a collection of uniquely developed Decision Support
System software applications.
1.1 PRODUCTS AND SERVICES
NetGenMarketing.com offers customers tailor made online marketing plans and strategies.
These plans can then be implemented according to the client’s requirements. Revenues are
generated through once off payments for online marketing strategies, development and
implementation. Additional revenue is generated through monthly management fees and
providing online marketing training. There are four main categories of service offerings:
Web Development - This service provides clients with two main options. Clients can avail of
expert knowledge and experience in web design and thus can choose one of three web
design packages that provide advanced usability and web branding as well as complete
project management by us. The second option is a redesign and re-branding of the clients
existing site. Included in this service is a full audit and report of the current site heuristics,
functionality and appearance.
Online Advertising - These services are made up of Search Engine Optimization, Search
Engine Advertising and Banner creation. These three forms of online marketing services
generate web traffic to a client’s website. The package is made up of pull marketing,
technical analysis and monthly management of the online marketing campaign. The services
provide clients with a well rounded online marketing package that is both cost effective and
offers high return on investment.
Software Development - NetGenMarketing.com will be the first online marketing company
to offer Educators a full range of packages that implement and take advantage of new
technologies such as Virtual Worlds, Social Networking and Blog marketing. Clients can avail
of tailored options that meet their needs. Complex Decision Support Systems will be
developed and thus clients can make the most informed decision on what fits with their
needs best.
-7-
NETGEN | MARKETING
Training Services - Training services will be offered to customers. These training seminars
will facilitate all round knowledge of online marketing and requirements. Training services will
also be offered to non education specific clients who wish to learn and expand their online
marketing knowledge. Six core training modules will be offered: Email marketing, Web
Analytics, Search Engine Advertising, Blog Marketing, SEO and Writing for Search engines.
1.2 MARKET
Online marketing has boomed in recent years, most companies have used it mainly for
advertising or promoting corporate images2. However, our research and that of academics
suggest that Higher Education Institutes have not fully adapted their marketing strategies to
reflect the growth of online usage and marketing.
The online marketing sector in Europe had revenues of €11.4billion in 20073.
NetGenMarketing.com has highlighted a niche in this lucrative market. Unlike the US; at
present in the UK and Ireland there is no one online marketing agency that caters specifically
for Higher Education online marketing services. NetGenMarketing.com has adapted the
successful US business model to the UK and Irish market; and thus has become the first
target specific online marketing agency for HEI’s in the geographic region.
The target market is made up of 343 HEI customers in the UK and Ireland4, however; within
each HEI there are different departments with individual marketing needs thus suggesting
that the total target customer size can be further segmented. These customers are a mix of
private and public; HEI’s. The HEI market has several key market drivers. We have
highlighted these as:
1. Media consumption of Net-Generation.
2. International Student Movement.
3. Need for higher return on investment for marketing efforts.
2 Melody Y. Kiang , T.S. Raghu , Kevin Huei-Min Shang, Marketing on the Internet — who can benefit from an
online marketing approach?, Decision Support Systems.
3 Digital Strategy Consulting & IAB, Digital Europe, Tracking online marketing growth, 2007
4 Universities UK, http://www.universitiesuk.ac.uk/.
-8-
NETGEN | MARKETING
NetGenMarketing.com predicts the following penetration of the market:
Customers
Year 1
Year 2
Year 3
3
7
17
10
27
2.91%
7.87%
New Customers
Total Customers
Market Share (HEI)
0.90%
Figure 1.1 Customer Penetration
1.4 STRATEGY
NetGenMarketing.com strategy is to be first to market in the UK and Ireland for online
marketing services targeted specifically to HEI’s. NetGenMarketing.com feel that current
service offerings for online marketing are not A) specific to HEI’s B) wide enough to satisfy
HEI needs. At the core of NetGenMarketing.com strategy are three distinct elements:
•
Offering a complete array of online marketing services specifically for Higher
Education Institutes.
•
Leveraging certain free services and consultation to drive revenue generating
services such as Web Development, Online Advertising and Software Development.
•
Developing and providing a unique set of decision support systems to clients which
guide their decision as to which Virtual World would best fit with their organisations
needs. Furthermore, expanding the DSS applications to address other ‘new online
marketing’ forms such as Social Networking and other future models.
The following broad objectives were agreed by the founders when the company was formed:
•
To maximise shareholder value through profitable growth
•
To be the leading online marketing service provider for Higher Education Institutes.
•
To focus initially on penetration of the Irish and UK Higher Education market with a
view to expand geographic markets within year four.
•
To realise shareholder value by 2012 through sale, merger or acquisition and IPO.
-9-
NETGEN | MARKETING
1.5 STAFFING
The company intends to grow from two employees in year one to seven in year three based
on forecasted growth assessment and the needs of the business.
1.6 FINANCIAL SUMMARY
The table below is extracted from Section 7 of the plan which details a set of full accounts for
the first three years of trading. Under these figures, the company will be profitable in year two
with year three seeing strong growth as customer retention and new customer acquisition
grow revenues.
Year Ending 31st of Dec
2009
2010
2011
Revenues
144,125
360,475
1,010,700
Gross Profit
131,525
341,575
979,200
Gross Margain
91%
95%
97%
Net Profit/Loss
-11,874
22,116
507,972
Figure 1.2 Financial Summary
1.7 FUNDING REQUIREMENTS
Initial funding will be provided by the Directors. It is hoped that further external investment of
€50,000 will be secured in November 2008.
1.8 EXIT STRATEGY
The Director’s believe that the niche focus of NetGenMarketing.com will facilitate rapid
expansion based on customer adoption rates within the UK and Ireland. It is further believed
that year four expansions to other European markets will accelerate the exit strategy. This
will provide a viable exit strategy in the form of IPO, Merger or Acquisition or Sale.
- 10 -
NETGEN | MARKETING
2. CORPORATE BACKGROUND
2.1 MANAGEMENT TEAM
Keith Elliott BBS – Manager Director
Keith Elliott (25) holds a degree of Bachelor of Management and Marketing and a Degree of
Master of Electronic Commerce from Dublin Institute of Technology and Dublin City
University respectively. Keith has worked in sales for several High Street retailers.
Keith is responsible for all general and administrative duties and sales activities.
Polle van Elsacker BsC – Technology Director
Polle (24) holds a degree of Bachelor of Commerce of Fontys University of Applied Sciences
and is a qualified Google Advertising Professional since september 2007.
Polle is responsible for all technological aspects of services delivered, including web and
blog development, realisation of the Decision Support Tool, maintenance of website
www.netgenmarketing.com and delivery of training related to Search Engine Marketing.
2.2 BOARD OF DIRECTORS
The Board of Directors will consist of the senior management team and two other members.
These members are:
Dr. Theo Lynn
Dr. Theo Lynn is a Lecturer in Management in the DCU Business School where he teaches
at both undergraduate and postgraduate levels on Organisation Theory and Practice and
Strategic Management. Dr. Lynn holds a PhD in Law from UCD. The title of his thesis was
"The Irish Corporate Governance System and the Role of Irish Occupational Pension Funds
as Institutional Monitors". He has been involved with a number of start-up companies and
advises a number of domestic and international companies.
Dr. Pieter Voogt
Dr. Pieter Voogt is Director of PauwR, an online marketing agency in Tilburg, The
Netherlands. Dr. Voogt has been involved in the successful start-up of a number of internet
companies, is a frequent speaker at business seminars and advices organisations on
implementation of online marketing strategies.
- 11 -
NETGEN | MARKETING
2.2 BOARD OF DIRECTORS
The table below sets out the number of employees including senior management and
executive directors by category and number of employees in each category.
Employees by Function
2008
2009
2010
Sales and Marketing
1
3
3
Research and Development
1
2
3
General and Administration
-
-
1
Total
2
5
7
Figure 2.1 Staffing Requirements
In 2008, all sales and business development will be undertaken by Mr. Elliott as Managing
Director. Accounting functions will be outsourced until 2012. The Senior Management team
will be increased in 2012 in line with growth expectations and prior to the Company’s exit
strategy. Research and Development will be conducted by Mr van Elsacker.
2.3 LEGAL
NetGenmarketing.com will be founded as a private limited company in Ireland in October
2008. The funding requirement of €100,000 has been included in the financial section of the
report. The rights for NetGenMarketing.com domain name and product names are held by
the two shareholders; Mr Keith Elliott and Polle van Elsacker.
2.4 OFFICES
A virtual office will be set up in conjunction with Regus. This office will have a Dublin 2
address and will therefore provide NetGenmarketing.com with a good start-up base for the
first year of trading. Regus also facilitates a selection of international meeting offices which
include UK based locations. This will facilitate a meeting environment for our UK customers.
In year two, a full-time office will be set up in Dublin city centre. Dublin has excellent links to
all major UK airports and therefore ease of access to both UK and Irish customers will be
facilitated easily.
- 12 -
NETGEN | MARKETING
3. BUSINESS DESCRIPTION
3.1 VISION
To be the leading online marketing service provider to Higher Education Institutes
3.2 OBJECTIVES
NetGenMarketing.com main objectives are:
•
To maximise shareholder value through profitable growth.
•
To be the leading online marketing service provider for Higher Education Institutes.
•
To focus initially on penetration of the Irish and UK Higher Education market with a
view to expand geographic markets within year four.
•
To realise shareholder value by 2012 through sale, merger or acquisition and IPO.
3.3 BUSINESS MODEL
NetGenMarketing.com business model is based on providing consultancy to HEI’s in relation
to their online marketing requirements. NetGenMarketing.com generates revenue through
offering an array of online marketing services adapted specifically for Higher Education
Institute marketing needs. Revenue generation is created through once of payment for online
marketing development and implementation of software and overall online marketing plans.
Additional revenue is generated through monthly management fees for some services.
Training services generate additional cash-flow.
NetGenMarketing.com revenues come from the breakdown of the following services.
•
Online Marketing Audit
•
Tailored Web Development and Redesign services
•
Development and implementation of online marketing strategy
•
Software marketing development
•
Monthly management fees
•
Training modules
- 13 -
NETGEN | MARKETING
Marketing Audit
The General Marketing Audit entails a thorough analysis of current online marketing efforts
undertaken by the client, a scan of the market position and competitive environment, defining
strengths and weaknesses and composition of renewed marketing plan. Audit will take place
on site in a one day meeting with marketing staff of HEI’s and will be done free of charge in
order to build an initial relationship with potential customers.
Web Consultancy and Development
Website redesign and audit will consist of a full functionality and heuristic test on a customers
existing website. This will be offered free of charge. Following a complete audit and report
generation, NetGenmarketing.com offers a full re-branding and redesign of existing Institute
websites upon client’s requests.
Web development services will be divided into three revenue levels:
1. Uniquely designed static website with up to a maximum of 20 pages with basic forms
of interaction.
2. Database driven website with custom front-end design and easy accessible backend. Advanced form of user interaction.
3. Consultancy and Management of a large multi-site project with multiple user levels,
rich media implementations; possible Ecommerce functionality.
Software Marketing Development
NetGenMarketing.com aims to take advantage of emerging trends among HEI customers.
Software Marketing Development is made up of services that include:
•
Virtual world strategy development, management and consultancy.
•
Social Network strategy development, management and consultancy
•
Blog Marketing development, implementation and consultancy
These three services are bespoke based on hourly fees and are complimented by
NetGenMarketing.com unique Decision Support System software tool which aids decisions,
analyses and generates report strategies for clients who avail of the software marketing
services.
- 14 -
NETGEN | MARKETING
Monthly Management Fees
Monthly fees are two fold:
1.
Fees for online advertising campaign maintenance
2.
Fees for Virtual world strategy management and presence
These fees provide a year round steady income from clients and ensure close contact
between NetGenmarketing.com and their customers.
Training Services
These services are non target market specific and provide the business with a steady flow of
cash-flow and a chance to market the companies (clients) other services. The training model
also provides existing clients with a chance to further expand their online marketing
knowledge and thus facilitate NetGenmarketing.com in educating their client as to up sell
current offerings. Training service fees are based on competitive research and contact with
Irish newspaper training service programmes.
Future Models
While NetGenmarketing.com aims to provide a set of core revenue generating services, the
business is open to new opportunities in the form of strategic partnerships and future service
expansion. NetGenmarketing.com will remain aware of new business models for future
revenue generation.
3.4 CORE COMPETENCIES
NetGenmarketing.com core competencies are:
•
The only online marketing agency in the UK and Ireland to provide target specific
online marketing services for HEI’s.
•
A unique, independent and continually updated multi-industry set of Decision Support
Systems.
- 15 -
NETGEN | MARKETING
3.5 LONG TERM STRATEGY OBJECTIVES
•
Gain an 8% market penetration of UK and Ireland Higher Education market in year 3.
•
Establish a NetGenmarketinge.com training facility in year 4.
•
Expand geographic target markets in year four to include central Europe.
•
Develop and research new market segments for Decision support tool, e.g. (Media
Industry)
3.6 CUSTOMER RELATIONSHIPS
To ensure customers maximise their return on investment, NetGenMarketing.com will focus
on providing and ensuring continued service and support. Customer satisfaction will facilitate
NetGenMarketing.com to establish a loyal customer base which will benefit the business
through supply of additional marketing and web services. Increased customer relationships
will help grow new customers through industry networks and also provide
NetGenMarketing.com with valuable feedback.
Strategic activities will include:
1. Liaising, analysing, researching and correcting key customer issues associated with
the use of NetGenmarketing.com services.
2. Using customer feedback to expand our service and software offerings.
3. Establishing relationships with customers and thus building on initial transaction of
services to include full web development and training packages.
4. Providing online support and help for users.
- 16 -
NETGEN | MARKETING
3.7 STRATEGIC RELATIONSHIPS
NetGenMarketing.com will form strategic relationships with partners to:
A)
Extend and support or service offerings.
B)
Enter new markets.
C)
Possible future development of new business models.
PauwR, an online marketing company based in Tilburg, the Netherlands. PauwR has
expressed great interest in a strategic relationship with NetGenMarketing.com. PauwR is
experienced in web development, search engine marketing and currently delivers marketing
services to two Institutes in the Netherlands; University of Tilburg and ROC Brabant. PauwR
will deliver specific expertise when needed and offers great opportunities for international
expansion to the Netherlands, Belgium and Germany.
- 17 -
NETGEN | MARKETING
4. INDUSTRY ANALYSIS
4.1 INTRODUCTION
Marketing can be described as the development and implementation of the marketing mix.
Marketing is the procedure of creating or directing a business to become successful in selling
a product or service that customers not only desire, but are willing to buy. It is about
identifying and satisfying the customers needs5.
Online marketing is marketing efforts that are carried out online through the Internet including
but not limited to website creation and optimization, advertising, electronic catalogues, email
promotion, dynamic communities and social networking6. Online marketing can be used
inter-changeably with internet marketing or interactive online marketing.
Online marketing has boomed in recent years, most companies have used it mainly for
advertising or promoting corporate images7. However, our research and that of academics
suggest that Higher Education Institutes have not fully adapted their marketing strategies to
reflect the growth of online usage and marketing.
The online marketing sector in Europe had revenues of €11.4billion in 20078.
netGenMarketing.com has highlighted a niche in this lucrative market. Unlike the US; at
present in the UK and Ireland there is no one online marketing agency that caters specifically
for Higher Education online marketing services. NetGenMarketing.com has adapted the
successful US business model to the UK and Irish market; and thus has become the first
target specific online marketing agency for HEI’s in the geographic region.
The target market is made up of 343 HEI customers in the UK and Ireland9, however; within
each HEI there are different departments with individual marketing needs thus suggesting
that the total target customer size can be further segmented. These customers are a mix of
private and public; HEI’s.
5
Philip Kotler and Gary Armstrong, Principles of Marketing, 7th edition, Prentice- Hall, Inc., 1996
Cecausa – Web - www.cecausa.com/general_marketing_glossary.htm
7
Melody Y. Kiang , T.S. Raghu , Kevin Huei-Min Shang, Marketing on the Internet — who can benefit from an
online marketing approach?, Decision Support Systems 27_2000.
8 Digital Strategy Consulting & IAB, Digital Europe, Tracking online marketing growth, 2007
9
Universities UK, http://www.universitiesuk.ac.uk/.
6
- 18 -
NETGEN | MARKETING
The HEI market has several key market drivers, NetGenMarketing has highlighted these as:
4. Media consumption of Net-Generation
5. International Student Movement
6. Need for higher return on investment for marketing efforts
4.2 ONLINE MARKETING SERVICES
The International Advertising Bureau has valued the European online marketing sector at
over €11.2billion based on 2007 revenues10. The research conducted in conjunction with
Price Waterhouse Coopers suggests that online marketing spending has increased by 40%
last year. Online marketing services have evolved to satisfy client needs and the expanding
online advertising sector. The key online marketing services offered by agencies are:
1. Search Engine Optimization – Changing the coding, presentation and structure of a
website to increase volume and quality of organic traffic from search engines.
Includes external link management and Search Engine Reputation Management.
2. E-commerce – Development and enhancement of online shopping and trade
solutions including catalogue and payment management.
3. Web Site Services – Development and Auditing of websites, often including redesign
and creation of online branding strategies.
4. Online CRM – Delivery of web based CRM solutions to manage and enhance
customer relationships, aiming to increase customer value. Can be linked to Ecommerce and online marketing activities.
5. Online Marketing – Development, implementation and evaluation of online marketing
strategies using a number of different marketing methods, eg. Pay Per Click, Affiliate
Marketing. Ad Placement and Banner Advertising.
10
Digital Strategy Consulting & IAB, Digital Europe, Tracking online marketing growth, 2007.
- 19 -
NETGEN | MARKETING
The top ten online marketing service agencies in the UK and Ireland represent a majority
share of overall market value in both nations. The table below highlights the top ten
dedicated online marketing agencies and their turnover comparisons for year 2006 and 2007.
The table also includes the business splits based on the percentage of revenue each
business segment creates.
Company
Turnover
Turnover
Company
Business
Name
2007 stg£
2006 stg£
Owner
Split
Lbi
75% services, 21% media, 4%
International
hosting/managed services
Lbi
36,288,000
34,100,000
30% creative, 25% CRM, 25%
AKQA
22,519,833
14,316,643
Independent
ecommerce, 20% user experience
20% creative, 20% ecommerce, 20%
technical, 10% marketing, 10% media
planning/buying, 5% CRM, 5%
managed services, 5% SEO, 5% user
Avenue
A/Razorfish
14,820,000
12,300,000
aQuantive
experience
30% creative, 20% marketing, 20%
technical, 10% user experience, 10%
MRM
Worldwide UK
13,658,400
18,203,000
Interpublic
managed services, 5% CRM, 5%
Group
ecommerce
50% media planning/buying, 25%
TBG London
13,626,000
6,800,000
Independent
creative, 20% marketing, 5% SEO
42% media planning/buying, 15% SEO,
15% technical, 10% ecommerce, 5%
Summit Media
10,355,000
6,200,000
Summit
CRM, 5% creative, 5% managed
Records
services, 3% user experience
25% creative, 25% marketing, 20%
Dare
9,506,000
4,162,402
Cossette
CRM, 20% technical, 10% user
Communications
experience
45% creative, 20% marketing, 15%
Publicis Dialog
9,075,300
6,964,500
Publicis
technical, 10% CRM, 5% SEO, 5%
Groupe
user experience
30% creative, 30% CRM, 20%
marketing, 10% technical, 10% user
RMG Connect
8,036,865
7,068,065
WPP
experience
20% creative, 15% CRM, 15%
marketing, 10% managed services,
10% technical, 10% user experience,
7.5% media planning/buying, 7.5%
Global Beach
7,650,000
6,800,000
Independent
SEO, 5% ecommerce
Figure 4.1 Online Marketing Services Top Ten Companies
Source: NMA: Centaur Media PLC
- 20 -
NETGEN | MARKETING
4.3 MARKET FOR ONLINE MARKETING SERVICES
Price Water House Cooper research valued UK online marketing spending in 2006 at
stg£2.2billion; an increase of 11.4% on the previous year11. Furthermore the IAB research
concludes that online advertising figures in the UK for January to June 2006 equated to
£1.36 billion. This represents an increase of 65.6% from the same period 2005 and 7.8% of
all media spend in 2006. The primary form of advertising placement online (56%) is through
Search Engines8.
Internet penetration in the UK is 62% which equates to 29.3 million internet users; of these
users, 71% of home users have broadband connections. According to research conducted
by the IAB, the UK E-commerce market has over 18 million online stores serving internet
users12. In Ireland, internet penetration is at 55% according to a Forfas study on Irish
broadband13.
UK online adspend is
set to top national
press advertising by
the end of 2006
The massive sustained
growth of online
advertising in the UK
has seen the industry
overtake radio
advertising and
consumer magazines.
During 2006 it look set
to overtake national
press.
Figure 4.2 UK online Advertising Spend growth
11 IAB/PwC UK online adspend figures 2006, Interactive Advertising Bureau: Digital Europe, Tracking the growth
of online marketing spend, Digital Insight Report.
12 Interactive Advertising Bureau: Digital Europe, Tracking the growth of online marketing spend, Digital Insight
Report, July 2006 pg 10.
13 Forfas, annual report 2007
- 21 -
NETGEN | MARKETING
4.4 HIGHER EDUCATION INSTITUTES
There are approximately 170 publicly funded Higher Education Institutes in the United
Kingdom and 104 private institutions14. In 2006 there were 2,336,110 students studying in
Higher Education; 2007 seen an increase to 2,362,815 students15.
Ireland has 37 public funded Higher Education Institutes and 32 privately funded HEI’s16.
According to the Central Statistics Office there are currently 143,546 students studying in
Higher Level Institutions in Ireland. This figure has grown slightly from the previous year
figure of 143,271 students17.
According to Naude et al, HEI’s have historically taken a passive response to marketing18.
Demand for HEI out-weighed the supply of places. However, the increase in new HEI and
greater selection of college courses in the UK has switched the power to the buyers
(students) rather then the suppliers. The same can be said for Ireland where access to
college courses has been made easier for students through the expansion of courses in
existing HEI’s and the growth in new HEI’s. In Ireland, approximately 50% of the current
college population attends a new or non traditional HEI19.
Kotler states; as cited by Schmitt (2003), that ‘the key to achieving organizational goals
consists in determining the needs and wants of customers’20. This would suggest that the key
marketing goal of a Higher Education Institute is to determine the needs of their customers
and thus attract customers. In this case, Kotler and Fox (1995) define a Higher Education
Institutes customers as the ‘students’, current and prospective21.
A 2007 study conducted by Lipman Hearne found that Institutes are spending significantly
more on marketing then in 2000. The study further concluded that those Institutes that
invested confidently in marketing (0.5% of Institute Budget Spending, not including salaries.)
attained a higher quality candidate and larger enrolment yields22.
14
Universities UK, http://www.universitiesuk.ac.uk/.
HESA, Higher Education Statistics Agency annual report 2006/2007.
16
Higher Education Authority, Key facts and Figures 2006/2007.
17
CSO, Education statistics.
18
Naude, Peter, the Marketing Strategies of Universities in the UK, International Journal of Educational
Management, 1999
19
http://www.educationireland.ie/index.php?option=com_content&task=view&id=204
20
Bernd. H. Schmitt, Customer experience management, A revolutionary approach to connecting with your
customer, Wiley and Sons, 2003.
21
Kotler, P., Fox, K. (1995), Strategic Marketing for Educational Institutions , 2nd ed., Prentice-Hall, Englewood
Cliffs, NJ.
22
Lipman Hearne, A report on marketing spending at colleges and universities pg 2-3, 6-8. April 2007
15
- 22 -
NETGEN | MARKETING
Further Lipman research found that while traditional marketing efforts such as print,
traditional media and direct mail all play an important role in the marketing recruitment
process, the most valuable form of student recruitment in the future will be online interactive
marketing19. This research is supported by a study conducted by Edge Interactive Research
on what influences a student in their decision on choosing a University or College. The study
found that one of the most important factors (36.7%) was the Institutes website23. The study
further concluded that a prospective student’s most favoured form of communication with an
Institute was via email (41.1%)20.
In an interview conducted in July 2008 with Deirdre Wynter head of Communication and
Marketing at Dublin City University; we found that while marketing is a key aspect in
recruiting students much of the marketing efforts are based on traditional media forms such
as print, media and radio. Dublin City University at present had no online marketing strategy
for recruitment; implemented or planned24. This contention is in line with research conducted
by NetGenmarketing.com. We found that while many Higher Education Institutes understand
the importance of online marketing, few have implemented a definitive strategy or allocated
the required resources to this medium. See section ‘Market Opportunity’.
4.5 MARKET DRIVERS OF ONLINE MARKETING FOR HEI’S
The key market drivers for HEI’s adopting NetGenMarketing.com online marketing services
are the following:
1. Media consumption of Net-Generation
2. International Student Movement
3. Need for higher ROI on marketing efforts.
23
24
Edge Interactive Research, Factors in Recruiting to students to College and Universities pg3, 6, 2004.
Discussion held with Mrs Wynter at DCU, 15-07-2008
- 23 -
NETGEN | MARKETING
4.5.1 NET-GENERATION
According to Leung, the Net Generation are those born between 1977 and 1997 and thus the
first generation to grow up surrounded by computers, interactive games and the Internet25.
Research conducted by Pew Internet & American Life Project found that in the US, one fifth
of current college students began using computers before they had reached their eight
birthday, furthermore; before current students had reached the age of 16 all had used a
computer and 86% had gone online compared to just 59% of the general US population26.
The UK & Ireland reflects this contention. Research conducted by Nielsen found that 25% of
the UK’s internet population was aged 24 or under27. This figure was 5% higher then any
other age demographic. In Ireland, a study by Amarach research found that 8 out of 10
people aged 15-24 used the internet on a regular basis28.
Based on this research it is therefore prudent for HEI’s to fully develop their online marketing
activities. The current under-development of online marketing by HEI’s suggests that not only
are they not engaging with their target customer (potential student), they are also building a
technological void within their own organisation through not adopting online marketing
services and technologies.
4.5.2 INTERNATIONAL STUDENT MOVEMENT
According to a study conducted by the International Education Board of Ireland, there has
been an increase of 40% in the last decade for education beyond a student’s domestic
market29. UNESCO research suggests that by 2020 there will be over 6 million mobile
students30. Demand for education beyond national boundaries has increased by 40% over
the last decade8. The growth is a reflection of a general increase in tertiary enrolment
worldwide, which during the same period grew by an identical percentage, underscoring the
important point that students are not simply studying abroad in greater numbers, but rather
are increasingly pursuing education in general.
25
Louis Leung, Ph.D. Net-Generation Attributes and Seductive Properties of the Internet as Predictors of Online
Activities and Internet Addiction, Cyber psychology and Behaviour, June 2004
26
Steve Jones, Senior Research Fellow, Pew Internet Project Survey Analysis, Sep 2002.
27
Nielsen online, UK netView, home and work data 2006-2007.
28
Amarach Research report, The daily life of Ireland’s two million online. 2008
29
International Education Board of Ireland, International Students in Higher Education in Ireland 2006/2007,
pg5.
30
UNESCO UIS database, 2006 and Open Doors 2006: Report on International Educational Exchange.
- 24 -
NETGEN | MARKETING
Nonetheless, although delivery methods and favoured regions are changing there is no
reduction in the numbers wishing to pursue some or all of their education experience in
another country and it is anticipated that internationally mobile students will rise to at least 6
million by 20209.
The UK receives 14% world total for international students8. Growth in international students
studying in the UK has remained strong with a 6% increase in students from EU nations
choosing UK institutes and a 7% increase of non-EU students31. This figure equates to
approximately 385,000 international students. Ireland’s growth rates in international students
have slowed in recent years; however growth rates still remain above the UK with an
increase of 8% for academic year 2006/200732.
The total number of international students attending Irish institutions in 2007 was 27,27533.
This number of students equates to an additional €164 million in revenue to institutions from
tuition fees11. Research further suggests that Institutes generate greater revenue per capita
from international students based on higher fees12. Our research has suggested that the
demand for English speaking nations is the key driver for International students choosing
their location.
This is reflected by the large numbers of Asian students who attend UK and Irish institutes.
The International Education Board of Ireland highlights future and current growth rates to be
majority based on Asian countries.
31
Higher Education Statistics Agency- www.hesa.ac.uk
International Education Board of Ireland, International Students in Higher Education in Ireland 2006/2007,
pg6, 11
33
Ireland - IEBI 2008, other countries - Atlas Group Survey 2007.
32
- 25 -
NETGEN | MARKETING
The table below shows the current influx of international students and their origin for the UK
and Ireland.
Rank
Ireland
UK
1
USA 16%
China 15%
2
China 13%
USA 6%
3
UK 7%
Greece 6%
4
France 6%
India 5%
5
Germany 5%
Ireland 5%
6
Spain 5%
France 5%
7
Malaysia 5%
Germany 5%
8
Italy 5%
Malaysia 5%
9
India 4%
HK 3%
10
Poland 2%
Spain 3%
Total
27,275
385,000
Figure 4.3 - Influx of international students and their origin for the UK and Ireland
IEBI 2008 - Atlas Group Survey 2007
4.5.3 NEED FOR HIGHER RETURN ON MARKETING EFFORTS
As the Western worlds global economic slowdown begins to affect the UK and Ireland, the
need for higher returns on outputs will be top of the agenda for HEI’s when deciding on their
marketing strategies. This aspect of the current economic landscape will mean Colleges
must now utilise the most cost efficient and effective marketing channels.
Traditional marketing uses demographics and strategic placement in the hope of narrowing
the customer down to the target one. The result of this is a marketing message may get lost
or simply ignored34. Traditional marketing also relies heavily on financial input. Return on
investment is mainly attributed to the amount spent. Online marketing returns are much more
measurable35. The services previously detailed are all measurable through analytics and thus
a clear set of results can be generated to measure the success of online marketing efforts.
34
Scubert et al, Web assessment-measuring the effectiveness of ecommerce sites, changing the traditional
marketing paradigim, Journal of System Sciences, 1999
35
Arun Sharma, Web-based marketing The coming revolution in marketing thought and strategy, Department of
Marketing, University of Miami, 2002
- 26 -
NETGEN | MARKETING
Furthermore, online marketing can be much more target specific and focused. In many
cases, online marketing messages can be directly personalised based on the viewers
attributes. A simple example is provided in the subsequent paragraph.
Research found 34% of students stated that online advertising was a key factor in making
their decision36. A simple Pay per click test of keywords associated with Higher Education
was performed by NetGenMarketing.com. As the table below shows, the average cost for
specific keywords associated with HEI’s in the UK and Ireland is not only cheap but also has
large user search volumes yet only 10% of Colleges in the UK and Ireland currently uses
such marketing means (See section 4.6 research). This form of online marketing could
reduce marketing spending of HEI’s greatly.
Selected
Ad
Cost per
Ad
Average Search
Keywords
Position
Click
Competition
Volume
university
2
€0.86
0.73
160000
college
2
€0.73
1
24900000
study abroad
2
€0.97
1
33100
postgraduate courses
2
€1.10
0.8
22200
international education
2
€1.03
1
5000000
postgraduate course search
2
€1.16
0.26
1700500
postgraduate courses Ireland
2
€0.74
0
48000
study in England
2
€1.07
0.73
1600500
study in UK
2
€0.87
0.73
9900
2
€0.05
0
590550
postgraduate business
courses
Figure 4.4 Keyword analysis HEI search queries
4.6 USE OF ONLINE MARKETING BY HEI’S
In order to analyse the market opportunity for online marketing services targeted specifically
for HEI’s, NetGenMarketing.com conducted a market analysis of current online marketing
strategies used by Institutes. An extensive description of the research methodology can be
found in Appendix 1.
36
Independent Inc, 2006 Online Advertising habits cited in Online Ads Influence Collegiate Set, Feb 2006.
- 27 -
NETGEN | MARKETING
The research and analysis conducted by us included selecting a sample of 42 Higher
Education Institutes in the UK and Ireland that represent a total number of 658,464 students.
This sample size represents approximately 15% of the total market size of 343 HEI’s. The
sample was selected randomly and included both private and publicly funded HEI’s.
Furthermore, the sample was made up of small (less then 1000 students), medium (10005000 students) and large (greater then 5000 students) institutes. Each of the samples set
was analysed based on the following criteria. See Appendix 2 for table.
1. Institute Name
2. Institute Type - Other Higher Education Institute or University
3. City/Town
4. Country - Ireland, Wales, Scotland, England, Northern Ireland
5. URL - Used to analyse page ranking.
6. Number of Students
7. Use of pay per click advertising.
8. Organic Page Ranking (Level of SEO)
9. Blog - Does an HEI have or use a blog.
10. Virtual World - Analysis of Virtual World Presence.
11. Social Network - Use of internal/external social network.
12. Open Day - Does an HEI facilitate an open day.
The research found the following:
4.6.1 PAY PER CLICK ADVERTISING
Of the 42 HEI’s analysed, 10% of HEI’s currently use pay per click advertising. Analysis of
this metric was conducted by imputing several keyword queries associated with each
Institute e.g. University in Dublin, Business College in London,
Post-Graduate courses available in Scotland. Details regarding
the methodology used can be found in Appendix 1. The Search
Engine Marketing Professional Organization (SEMPO) describe
PPC advertising as an online advertising model whereby
advertisers pay only for each click their advertisement receives;
furthermore adverts are directly linked to a users search query
Figure 4.5 HEI PPC Usage
- 28 -
NETGEN | MARKETING
entered in the search engine37. Once the advertisement is clicked the user is directed to the
advertiser’s website. This model allows advertisers to target potential customers based on
keywords and queries thus increasing chances of a direct form of marketing and conversion.
A survey by Burst Media research group found that 76% of respondents aged 18-24 felt that
online advertisement placement content was targeted to them38. A further study by
Experience Inc found that 34% of college students felt that online advertising was the most
important channel of information when researching a product or service39. This suggests that
a key target demographic of Higher Education Institutes is both receptive and engaged by
targeted ad placements.
4.6.2 ORGANIC PAGE RANKING
Institute’s websites have been scanned on an applied level of search engine optimisation.
The URL, Meta Title, Meta Keywords, Meta Description, Domain name, Google PageRank,
presence in Technorati and DMOZ, Alexa TrafficRank and Social Bookmarks have been
taken into account. Additional research has been conducted manually to find out how HEI’s
ranked on relevant search queries. It has been found that 2 HEI's have applied a high level of
Search engine optimisation to their website, 16 HEI's have optimised their websites on a
Medium level, 24 HEI's have applied a low level of search engine optimisation to their
website. This suggests that less then 5% of HEI’s are currently using organic page rank to
their full potential. See Appendix 3 for full analysis.
4.6.3 INSTITUTE BLOGS
Our study found that Blog usage among HEI’s was high with 64% of Institutes represented
by a form of Blog. However, our study found that many of the blogs implemented where
maintained and developed un-officially (by students or
staff). Few Institutes had a full official blog development for
each department and indeed the entire Institute. This
highlights the opportunity for official blog development
among Institutes and Institute departments.
Figure 4.6 HEI Blog Usage
37
SEMPRO, glossary of terms, http://www.sempo.org/learning_center/sem_glossary/.
Burst Media, cited in The ClickZ Network, Do Internet Ads, Content Effectively Reach All Ages? Mar 2008.
39
Independent Inc, 2006 Online Advertising habits cited in Online Ads Influence Collegiate Set, Feb 2006.
38
- 29 -
NETGEN | MARKETING
4.6.4 VIRTUAL WORLDS
Virtual world’s are computer based simulated environments. Users of these environments
can inhabit or indeed interact with each other through various online communication tools.
Users have a graphical representation which is known as an avatar. These avatars are made
up of characteristics chosen by the user. The user may choose characteristics that represent
their real life self or may decide on a more abstract graphical representation. Virtual worlds
allow multiple users to experience; explore and interact at any given time. The essence of a
virtual environment is that it is made available on demand as per the user’s requirements.
Gartner suggests that in the last four years the virtual world market has grown to revenues in
excess of $1.5 billion40. Screen digest a leading analyst of Virtual worlds claims that western
societies Virtual World spending based on subscriptions is in excess of $1 billion41.
Furthermore, a trend forecast by Strategy Analytics suggests that by 2011, Virtual worlds will
mushroom to 1 billion active users with a market value of over $8 billion42. Gartner supports
this prediction and suggests that 80% of internet users and Fortune 500 companies will be
actively involved in Virtual worlds by 201143.
Education and Virtual worlds are on a collision course. As the growth of virtual worlds
continues, one of the largest sectors of early adoption has been higher education institutes.
Gartner highlights that increased computerizations’ impact on higher education will
increasingly influence institutional decision making regarding technology in the campus
community, which will include institutionally owned Technology and personally owned
technology44. Furthermore, Gartner’s study suggests that a key driver for educational
institutions in 2008 and the future will be how higher education institutes develop and
manage a 3D virtual campus. There are currently two key worlds hosting major higher
education institutes. They are Activeworlds (AWEDU) and Second Life. The emergence of
Google’s new virtual world Google Lively will provide another option to HEI’s considering a
Virtual Campus.
40
Gartner Analyst, Virtual Worlds 2008 Forecast, Steve Prentice, Dec 2007.
Screen digest, Western World MMOG Market: 2006 Review and Forecasts to 2011, Mar 2007.
42
Strategy Analytics, Market Forecasts for Virtual World Experiences - From Habbo Hotel to Second Life and
Beyond - 2008 to 2017, Harvey Cohen, June 2008.
43
Gartner Analyst, Virtual Worlds 2008 Forecast, Steve Prentice, Dec 2007.
44
Gartner, Key Issues for Education 2008, March 2008.
41
- 30 -
NETGEN | MARKETING
The table below shows the number of higher educators currently present in Virtual worlds.
Virtual World Name
Number of Educators
Number of UK & Ireland educators
Active Worlds
115
10
Second Life
131
15
Google Lively
1
0
Figure 4.7 HEI’s currently present in virtual worlds
The UK has approximately 25 Higher education institutes present in virtual worlds. Based on
analysis, we have found that their presence is based chiefly on large universities who have
sizeable and well developed virtual locations. There are approximately 170 publicly funded
universities and higher education bodies in the UK and 104 private owned institutes45;
therefore the figure of 25 present in virtual worlds means that there has been a 10.96%
virtual presence up-take by UK higher education institutes over the last four years. The Irish
market has been much slower with only minimal scale project type presence by UCD.
Gartner studies suggest that key drivers of Educators up-take of virtual worlds are two-fold
and both of which increase a student’s vision and interaction with an Institute46. They are:
1. Virtual worlds offer a social context
2. Virtual worlds offer a visual context
Virtual worlds offer a social context for prospective students in that they can communicate
virtually with current students, information-bots or interact with virtual information and
displays associated with an Institute47. The visual context is made up of an interactive 3
dimensional representation of a campus or department where visitors can explore the lay-out
of a campus and generate an appreciation of what the campus offers its students. This
context could be useful to students who may not have the option of visiting a campus prior to
their decision; due to friction of distance and costs i.e. International Students.
A full white-paper developed and researched by us on ‘The benefits of Virtual Worlds on
Businesses’ can be viewed on the NetGenMarketing.com website.
45
Universities UK, http://www.universitiesuk.ac.uk/
Gartner, Findings: Second Life University Classes for Real-Life Credit, March 2007.
47
Sandy Andrews ASU, Chris Collins (Fleep Tuque), co-chairs of the SL Best Practices in Education 2007
conference and IT Analyst at the University of Cincinnati.
46
- 31 -
NETGEN | MARKETING
4.6.5 SOCIAL NETWORKS
The UK has shown increased growth in the use of Social Networking sites. In 2007, 30.4% of
all UK internet users visited or actively used a social network site48. This figure equates to
over 11 million people. In Ireland 87% of internet users aged 15-24 use Bebo on a regular
basis49. However, research conducted by us found that a very small amount of Higher
Education Institutes were active on social networks and those that were opted for an internal
social network. These findings would suggest that the increased popularity and usage of
social networking is not been adequately targeted or utilised as a marketing tool by Higher
Education Institutes. The research found that eight of the sample of 42 had an internal social
networking site. This site was not publicly accessible and therefore prospective or interested
students could not gain access.
4.7 LIMITATIONS OF CURRENT SERVICES
While the online marketing service industry is made up of many players both in the UK and
Ireland, we found that there is no one specific agency that solely targets the online marketing
efforts of HEI’s. NetGenmarketing.com did highlight some online agencies that do represent
a number of Education Institutes in the UK and Ireland. However we found that none of these
agencies provided the same range of services that NetGenmarketing.com does. While there
is the threat of existing marketing firms targeting NetGenmarketing.com customer segment,
online marketing companies traditionally focus mainly on acquiring one large key player in
separate industries rather then multiple players within the same industry50.
48
eMarketer Research, UK Social Network User and Ad Spend Numbers to Continue Growing, 2007.
Amarach Research report, The daily life of Ireland’s two million online. 2008
50
Discussion with Tony Patterson, Head of Online Marketing, Summit Media, 6th largest Marketing firm in the
UK 22-07-2008.
49
- 32 -
NETGEN | MARKETING
4.8 COMPETITOR PROFILES
Digino is an Irish based online marketing company that
www.diginomarketing.com
focuses on providing large sized organisations with an online
brand image and strategy.
Services Include:
Target Customers:
Search Engine Optimization
Large scale businesses in the areas of Travel and Tourism,
•
Pay Per Click Advertising
Property, Automotive, Retail, Finance and Manufacturing.
•
Consultation
Digino also provides online marketing services to five
•
Web Design
Educational Institutes; however, only three of those clients
•
Email Marketing
are Higher Education orientated and none of the three clients
•
Web Analytics
had an online marketing strategy based on our analysis.
New Brand Vision is a London based online marketing
agency that provides web development and online promotion
services.
www.newbrandvision.com
Services Include:
Target Customers:
Online Branding services
High technology companies, Finance, Retail, Tourism and
and strategy
Publishing. New Brand Vision currently represents six English
Web development and
based Universities. Durham University is the largest of those
design
represented; our research on Durham University found a very
Search Engine marketing
low level of online marketing efforts. The University had no
services
search engine marketing, no virtual world presence and a
•
Integrated Marketing
poor search engine optimization ranking which suggests that
•
Blog Development
online marketing efforts have not been fully implemented.
•
•
•
Business Feet are a UK based search engine optimization
www.businessfeet.com
Services Include:
and web design company. They are located in London.
Target Customers:
•
Web design
•
SEO
Business Feet targets medium sized traditionally offline
•
Content Management
businesses in the areas of Banking and Insurance,
•
Ecommerce consultation
Publishing, Health sector, Printing and Legal Services.
Current Higher Education clients include Coventry University.
Figure 4.8 Competitor Profile
- 33 -
NETGEN | MARKETING
5. SERVICES
5.1 SERVICES OVERVIEW
5.1.1 GENERAL MARKETING AUDIT
The General Marketing Audit entails a thorough analysis of current marketing efforts
undertaken by client, a scan of the market position and competitive environment, defining
strengths and weaknesses and composition of renewed marketing plan. Audit will take place
on site in a one day meeting with marketing staff of universities and will be done free of
charge in order to build initial an relationship with potential customers.
General Marketing Audit
Description
Analysis of current online recruitment strategy and efforts
Target Market
HEI’s, individual faculties
Competitive
•
Extensive database of segment specific data for HEI industry
•
Collecting and organisation of information about marketing
Strength
Key Service
Features
efforts and performance.
•
Review of current market position and composition of S.W.O.T.
analysis.
•
Provision of audit report, including recommendation and
guidance for adjustment to improve marketing efforts and help
clients achieve goals more effectively.
Key
•
Online audit form allows for easy processing of information.
Technology
•
Online marketing tools provide information about advertising
Used
options at websites, cost of cpc advertising, website ranking
and a number of other important criteria.
Revenue
•
Foundation for up sell of further services offerings.
Model
•
Analysis provides NetGenMarketing.com with valuable data to
be used in DSS system.
Benefits for
•
Comprehensive analysis of marketing efforts with little effort
Clients
•
Recommendations and suggestions offered without obligation
•
Free of charge
Figure 5.1 General Marketing Audit
- 34 -
NETGEN | MARKETING
5.1.2 WEB DEVELOPMENT SERVICES
Web development services relate to the redesign of existing sites or the development of new
sites based on the clients requirements. Both options first include a free site audit. The audit
processes consists of:
1. A full website audit which will include assessment of site heuristics and functionality
as well as overall design. See Appendix 4 for sample Audit sheet
2. Recommendations will then be made based on the audit report.
3. Clients can then choose a redesign package or a new site development package.
Web Development services can be divided into two categories.
A) Website redesign
Website redesign will consist of changing existing website functionality and design based on
the audit report. The service allows clients to continue using the existing site and its
infrastructure. NetGenMarketing.com provides the client with better user functionality and
overall site design. This service updates older sites or poor functioning websites and thus
makes the HEI’s website design more attractive to the user.
B) Website Development
Mature and reliable Drupal framework will be used in the development websites. Durpal is an
Open Source content management framework, popular in both the educational as the notfor-profit sector because of its flexibility, ease of expansion and maintenance and low costs
for deployment. Web development services will be provided on three levels based on the
Institutes requirements. The Institute can choose :
Level 1 - Uniquely designed static website with up to a maximum of 20 pages with basic
forms of interaction.
Level 2 - Database driven website with custom front-end design and easy accessible
back-end. Advanced form of user interaction.
Level 3 - Large multi-site projects with multiple user levels, rich media implementations;
possible Ecommerce functionality.
- 35 -
NETGEN | MARKETING
Web Development Services
Description
Web Development service offerings include recruitment website
conversion and usability audits and consultancy on and execution of
recruitment website development projects.
Target Market
HEI’s and individual Faculties
Competitive
•
Audits specifically tailored to meet requirements target group
Strenght
•
Experienced website evaluation and audit
Key Service
•
Rapid deployment of projects using standard framework
Features
•
Developed websites are optimised for future online marketing
•
Full service solution including hosting an training
Key
•
Content Management Framework Drupal
Technology
•
Apache Web server and the PHP language
Used
•
Database MySQL or PostgreSQL to store content and settings
Revenue
•
Transaction based revenue model based on service level
Model
required by client.
Benefits for
•
Affordable audits improve ROI of online marketing campaigns
Clients
•
Drupal has proven to be an excellent solution in educational
environments, is flexible, affordable and easy to maintain.
Competition
•
Multiple providers in UK and Ireland, none specific to HEI’s.
Figure 5.2 Web Development
5.1.3 ONLINE ADVERTISING SERVICES
NetGenMarketing.com includes the following online advertising services:
•
Search Engine Marketing
•
Banner Advertising
•
Email Marketing
•
Web Analytics
Search Engine Marketing
Prospective students looking for study courses increasingly use search engines to find the
information they desire. Search Engine Marketing services include Search Engine
Advertising and Search Engine Optimisation, both aimed at improving the volume and quality
of traffic from search engines.
- 36 -
NETGEN | MARKETING
Search Engine Optimisation
Search Engine Optimisation (SEO) can be applied to a website and is aimed at improving the
volume and quality of organic traffic from search engines. Optimising the presentation,
structure and coding of a website are activities included in the internal optimisation process.
Link management, ongoing rank analysis and search engine submissions are external
activities within the field of SEO.
Search Engine Advertising
Search Engine Advertising (SEA) is a pull marketing method aimed at placing
advertisements in search engines and websites included in the advertising network of search
engines. The advertisements are triggered when a user enters a search term matching the
search term defined in the campaign. Advertisers pay per click on each advertisement and
are able to define the maximum amount they are willing to pay for each click. Activities within
SEA are keyword analysis, campaign setup, copywriting for ads, campaign management and
improvement of conversions ratios. A sample intake form for Search Engine Marketing can
be found in Appendix 5.
Banner Advertising
Banner advertising is a form of online advertising using an image, script of rich media file
(Shockwave/Flash) placed on a website, intended to attract traffic to the advertisers website
by stimulating users to click on the banner. Banner Advertising services include creation of
advertising materials, selecting appropriate ad distribution channels, ad placement, tracking
and payment processing.
Online Advertising Services
Description
Marketing services aimed at establishing or improving presence in
search engines through pay per click advertising or optimising of the
client’s website. Marketing services using email advertising and banner
advertising using both static as rich media banner formats.
Target Market
HEI’s and individual Faculties
Competitive
•
Google AdWords Qualified Professional Status
Strength
•
Knowledge of and experience in industry specific vertical
search engine optimisation
Key Service
•
Formulation of online marketing campaign and strategy.
Features
•
Design and implementation of online ads
•
Management of campaigns on a monthly basis with associated
- 37 -
NETGEN | MARKETING
monthly reports.
Key
•
Google AdWords Advertising Program
Technology
•
Adobe Macromedia Flash, Fireworks, Adobe freehand.
•
Once of yearly payment for online advertising package
Used
Revenue
Model
including SEO report and implementation.
•
Monthly management fee for pay per click campaign
management and update of Banners.
Benefits for
•
Target specific marketing based on keyword queries.
Clients
•
Brand recognition through impressions.
•
Higher organic search ranking
•
No specific company targeting HEI’s, multiple indirect
Competition
competitors.
Figure 5.3 Online Advertising
5.1.5 VIRTUAL WORLD SERVICES
Virtual World Services are consultancy services regarding the establishment of a presence in
a Virtual World. Clients will be granted access to a unique web based decision support
software system developed by us; that will allow clients to make an informed decision about
which virtual world is most suitable to meet the defined needs. Following this, a complete
report and strategy will be developed.
Virtual World Services also incorporates project management services related to building a
presence in the virtual world. NetGenMarketing.com can offer valuable advice and guidance
and act as a representative of the client in communicating with chosen virtual world
developers. Last, NetGenMarketing.com offers virtual property management and marketing
services, aimed at moderating the environment of and attracting traffic to the established
virtual property.
- 38 -
NETGEN | MARKETING
Virtual World Services
Description
A decision support service for HEI’s wishing to develop a presence in a
virtual world. Marketing consultancy regarding establishing the
development of a presence in a virtual world. Managing and marketing
the established presence on a monthly basis.
Target Market
HEI’s and individual Faculties
Competitive
- First mover advantage in Ireland
Strength
-
Key Service
Decision support tool provides reliable advice based on budget,
Features
organisation characteristics and
Key
•
Adobe Flex for GUI of Decision Support System
Technology
•
Database MySQL to store data
•
Service priced per hour based on customers need and level of
Used
Revenue
Model
virtual world presence required.
•
Monthly management fee for Virtual world maintenance and
marketing.
Benefits for
•
Clients
Competition
Up to date information needed to make an informed decision
instantly available
•
Competitive scan can be performed repeatedly
•
Improvement of Return of Investment in virtual property
•
None in the UK and Ireland
Figure 5.4 Virtual World services
5.1.6 INSTITUTE BLOG MARKETING
Institute Blog Marketing services offered are a hosted web based blogging solution, standard
support and additional training. A customised version of Open Source blog management
system Wordpress will be used. Wordpress has a proven to be a reliable and successful
blogging solution, featuring all the options and extensions to offer clients a powerful way to
tell their story. All blogs will be internally optimised for search engines by default.
Additionally consultancy and training services will be offered. Consultancy will be aimed at
implementation of a blogging strategy and marketing of the blog. Training will focus on using
Wordpress on an expert level and obtaining writing skills both appreciated by users as
search engines.
- 39 -
NETGEN | MARKETING
Institute Blog Marketing
Description
Hosted blogging solution matching HEI’s online branding.
Target Market
HEI’s and individual Faculties
Competitive
•
Strenght
Standardised framework leads to low costs of blog
development and deployment
Key Service
Easy to use blogging solution, unlimited number of post, user
Features
interaction through comments and pings, strengthens web presence
Key
•
Wordpress 2.6, requiring PHP 4.3, MySQL 4. Apache
Revenue
•
Transaction based on hourly rate and requirements of client
Model
•
Possibility of up-sell of training module in Blog Marketing
Benefits for
•
Hosted solution doesn’t require installation or maintenance
Clients
•
Fully customised to match HEI’s online branding
•
Interface is straightforward and easy to use
•
RSS enabled to attract maximum traffic from return visitors
Technology
Used
Figure 5.5 Blog Services
5.1.7 TRAINING SERVICES
Email Marketing
Despite the reality of spam, challenges of deliverability and out to date member lists, Email
has proven to be an effective marketing tool in the educational sector. Clients will learn to
minimise the impact of spam filter to improve delivery and view rates.
We will show how to increase the engagement of the client’s audience by creating unique
content, varying mail frequency and making irresistible offers. After completion on this
workshop, clients will be able to review clientsr student newsletter and come up with a plan
to improve performance of mail campaigns
Web Analytics
Websites of universities are often the most important communication channels for both
current as prospective students. Opposite to traditional media TV and print, the
- 40 -
NETGEN | MARKETING
internet offers unique possibilities to measure client interaction using advanced web analytics
to enhance web presence and capture the desired audience.
This course will introduce clients to tools, techniques and best practices using case studies
and practical examples. Clients will learn to analyse visitors behaviour, set Key Performance
Indicators, measure Conversions and communicate web analytics through clients
organisation to improve the overall online marketing strategy.
Search Engine Advertising
Advertising in search engines is an effective pull marketing method; clients pay for
performance, have great control over budget and insight in results. This course will introduce
clients to Pay Per Click advertising programs Google AdWords and Yahoo Search Marketing
and its terminology.
Clients will learn how to recruit students using search engines and be taught how to setup an
effective PPC marketing campaign, write Ad copies, target desired audience, improve
landing pages, measure success and enhance campaign performance.
Search Engine Optimisation
More then 97% of internet users search for information using search engines like Google and
Yahoo51. This training course will teach clients how to can improve the ranking of the
organisation’s website and capture the attention of interested internet surfers.
After this course, clients will be able to determine their current ranking, select important
keywords, optimise the website, create content that both users as search engines find
interesting and develop a link strategy that works.
Blog Marketing
Frequently updated blogs offering short articles containing relevant hyperlinks and images, in
an informal, personal style and easy ways of interacting have proven to be a popular medium
among the NetGeneration. This course will teach clients how a blog can be beneficial to their
organisation. They will be introduced to the characteristics of a blog, blog terminology and
software.They will learn how to write effectively, how to promote the blog and how to involve
colleagues and students in their blog to make it an effective instrument for marketing and PR.
51
http://searchenginewatch.com/showPage.html?page=3357771
- 41 -
NETGEN | MARKETING
Writing for Search Engines
Publishing content that’s interesting to visitors is nowadays not enough to attract attention.
Text needs to be optimised for search engines to be indexed quickly and retrieved when
users search for information.
This course will introduce clients to terminology, spiders and methods of indexing, effective
structuring and formatting of text, improving linking and navigation on a website and will learn
them how to analyse their own content and improve it to reach a larger number of interested
visitors.
Training Services
Description
Practical internet marking on a variety of topics.
Target Market
HEI’s, individual Faculties, Marketing Managers, SME’s
Revenue
•
Once off customer payment.
Model
•
Partnership with newspapers for advertising and provision of
training facilities in return for a 20% commission based fee as
per training session revenues.
Benefits for
•
Clients
Cheap and effective way of gaining tool sets required for online
marketing analysis
•
Practical guidance towards starting own online marketing
advertising.
•
Bridging the technology and online void.
Figure 5.6 Training Services
- 42 -
NETGEN | MARKETING
6. SALES AND MARKETING
6.1 INTRODUCTION
This section details the strategy NetGenMarketing.com will take to market and generate
sales of the businesses service offerings.
NetGenmarketing.com will focus on the UK and Ireland market segment of Higher Education
Institutes. HEI’s will not be segmented by size, location or type i.e. Private and Public. The
reason for this is based on NetGenMarketing.com diverse service offerings which can be
tailored to meet an Institutes specific marketing requirements.
It is anticipated that NetGenmarketing.com will expand its service offerings and use agent
services for other European geographical areas in 2012. Partnerships such as the one with
PauwR will allow access to central European markets and current PauwR business network
channels and will help remove barriers to entry such as set up costs, language barriers and
local market knowledge.
NetGenmarketing.com will need to generate strong relationships and high levels of customer
involvement with HEI’s. The key revenue driver of our business will be our service offerings
and as these offerings will differ from customer to customer. Client relationship management
and need satisfaction will play a vital role in both current sale generation and future customer
loyalty.
6.2 CUSTOMER PROPOSITION
During the first three years of trading, the customer proposition will be based on the elements
set out below:
•
The company’s USP
•
The NetGenMarketing.com quality assurance
•
Free service offerings
NetGenMarketing.com USP
NetGenMarketing.com services will be deployed by experienced business and technical
experts with a history of working with online marketing service activities.
- 43 -
NETGEN | MARKETING
The services provided by NetGenMarketing.com are:
•
Specific to Higher Education Institute needs
•
Designed to provide the most effective online marketing results
•
Up to date with current online marketing trends and requirements
•
Designed to compliment offline marketing strategies
•
Backed by the NetGenMarketing.com quality assurance
•
Customizable based on client requirements
NetGenMarketing.com DSS software facilitates up to date decision support processes for
HEI considering emerging forms of online marketing such as Virtual Worlds and Social
Networking. The benefits include:
•
Unique decision results based on the clients input parameters
•
Reduced time efforts for clients in making the most informed decision
•
Reduced costs related to trailing and implementing new forms of online marketing
The NetGenMarketing.com Quality Assurance
The NetGenMarketing.com quality assurance aims to satisfy any issues clients may have in
dealing with a new company that targets a specific market.
•
Service development on the researched needs of HEI’s
•
Continued development and updating of DSS databases
•
Customer and Technical support
Incentive Schemes
A number of customer incentives will be offered. These may include:
•
Free Online Marketing audit
•
Free website and online branding audit
•
Discounts linked to customer referalls e.g. Other departments within a HEI opting for
NetGenMarketing.com services.
•
Free access to research and white papers made available on NetGenMarketing.com
Maximum publicity should be sought for these incentives.
- 44 -
NETGEN | MARKETING
6.3 INFORMING THE CUSTOMERS DECISION
Interested customers acquire service information from a number of possible choices. In order
to establish the NetGenMarketing.com brand it is important that a range of strategies is used
to inform the customers decisions. These include:
Information in print
•
NetGenmarketing.com corporate brochure. This method of marketing will enable
potential customers to become informed of our services and the present and future
value of online marketing recruitment of students. Follow up calls will be conducted
once the brochure has been sent out and meetings will be set up with clients who
wish to avail of our free marketing audit and engage in discussion about current and
future marketing activities. Potential customers will be informed about the value of
online marketing services in current and more importantly future recruitment process
strategies.
Electronic Information
•
Online advertising of NetGenmarketing.com will include marketing in search engines
using Google Adwords. Using Pay Per Click pull marketing will allow
NetGenmarketing.com to use selected keywords which will drive targeted traffic the
website. Campaigns will be geographically targeted at the UK and Ireland.
•
Site-related targeted advertising will take place additionally. Websites frequently
visited by defined target group will be used for placements of ads as well. An example
of such a website is Marketingteacher.com, which is popular with university staff and
marketing teachers, often indirectly involved in marketing undertaken by HEI’s.
•
NetGenMarketing.com will provide full details of services and will allow interested
customers to sign up for free and download research and white papers developed by
the NetGenMarketing.com team. This point of contact will also allow for the display of
service offerings through demonstrations and images.
•
Linking with affiliate websites through providing them with research and white papers
will inform potential customers about the NetGenMarketing.com brand and service
offerings. An example would be the inclusion of NetGenMarketing.com virtual world
white paper on Virtualworldnews.com.
- 45 -
NETGEN | MARKETING
Face to Face dissemination of information
•
Face to face meetings with clients interested in our services and the provision of free
audit assessments on site will provide a valuable direct selling method.
•
Attending and displaying at education conferences and exhibitions. The table below
details the proposed types of conferences and exhibitions targeted for the first three
years. Direct contact with marketing and communication employees of Higher
Education Institutes will be made at such events.
Conference
Location
Date
Year 1
Year 2
Year 3
Name
Annual
Cost
Universities UK (UUK)
Annual Conference
London
Dec
Attendee
Attendee
€900
52
€175
53
€580
54
€700
55
Speaker
Technology Supported
Learning in the 21st
Century
Stoke
June
Attendee
Speaker
Speaker
SOLSTICE 2008 Elearning & Higher
Education
GRAD Ireland
Lancashire
June
Attendee
Attendee
Speaker
Dublin
Feb
Attendee
Attendee
Attendee
Total
€4,755
Figure 6.1 Conference Breakdown
Press
•
Press releases offline and online
•
Reviews of services in industry publications
Service placement
•
Participation and support for charitable events and organisations
52
http://www.universitiesuk.ac.uk/events/, Discussed with; contact name: Catriona Coyle.
http://www.staffs.ac.uk/tsl08conference/bookingform/index.php Accessed on 21/07/2008
54
http://www.allconferences.com/conferences/20071218063025/ Accessed on 21/07/2008
55
http://gradireland.com/Advice/View.asp?intCat=6&intArticleID=50 Accessed on 21/07/2008
53
- 46 -
NETGEN | MARKETING
6.4 MARKET SPENDING
The table below details marketing spending for the first three years. Included in the spending
graph are figures for direct contact and meetings. As NetGenmarketing.com most important
sale converter will be face to face meetings and discussions with HEI marketing managers;
we felt it poignant to detail the relative costs for such activities. Included in the figure is travel
expenditure and expenses. As face to face meetings will be a primary marketing function,
travel costs have been factored as a marketing expense. Full marketing budget finances can
be viewed in Appendix 15
Figure 6.2 – Marketing Spending
Training services will boot-strap NetGenmarketing.com overall strategy and generate cashflow for the business. Marketing efforts and facilities for this service will be delivered through
the Irish Times; in return they require a 20% commission fee of total training service
revenues.
6.5 SALES
NetGenMarketing.com anticipates the following customer uptake and market share. The
customer breakdown is based on whole institute up take and hence institutes are not further
segmented by individual departments.
Year 1
Year 2
Year 3
3
7
17
10
27
2.91%
7.87%
New Customers
Total Customers
Market Share (HEI)
0.90%
Figure 6.3 Customer Penetration
- 47 -
NETGEN | MARKETING
NetGenmarketing.com anticipates part service adoption by three customers in year one. This
figure equates to a 0.9% market share of all private and public Higher Institutes in the UK
and Ireland. This figure is 5% customer up take relative to the amount of free marketing
audits NetGenMarketing.com will provide to interested customers. The full breakdown of
sales services can be seen below.
Year 1
Service Type
Unit Cost
Customers
Total
Free
3
€0
Level 1
€ 5,000
1
€ 5,000
Level 2
€ 12,500
0
€0
Level 3
€ 25000
0
€0
Redesign & Audit
€ 8,000
3
€ 24,000
Banner Advertising
€ 250
3
€ 750
Pay Per click Advertsing
€ 800
3
€ 2,400
Web Analytics
Free
3
€0
Email Marketing
€ 900
3
€ 2,700
€ 1,100
3
€ 3,300
Virtual World strategy (per hour, 30hr average)
€ 75
2
€ 4,500
Social Networks (per hour, 25hr average)
€ 75
3
€ 5,625
Blog Development (per hour, 26hr average)
€ 75
2
€ 3,900
Management Fees (per month)
€ 900
3
€ 34,200
Training Fees (per person)
€ 525
110
€ 57,500
Marketing Audit
Web Development
Online Advertising
Search Engine Optimisation
Software Development
€ 144,125
Total Sales
Figure 6.4 Year 1 Sales breakdown
Anticipated attainment of new customers is expected to represent a total market share of
2.91% of all HEI in the UK and Ireland. This equates to gaining seven new customers and
retaining all year one customers. Year two sales will grow at this rate based on year one
marketing efforts and increased customer awareness of NetGenMarketing.com services
through industry channels and word of mouth. Year two services up take by customers is
expected to increase also based on previous year testimonials and results.
- 48 -
NETGEN | MARKETING
Year 2
Service Type
Unit Cost
Customers
Total
Free
7
€0
Level 1
€ 5,000
1
€ 5,000
Level 2
€ 12,500
1
€ 12,500
Level 3
€ 25000
1
€ 25,000
Redesign & Audit
€ 8,000
6
€ 48,000
Banner Advertising
€ 250
10
€ 2,500
Pay Per click Advertsing
€ 800
10
€ 8,000
Web Analytics
Free
10
€0
Email Marketing
€ 900
10
€ 9,000
€ 1,100
10
€ 11,000
Virtual World strategy (30hr average)
€ 75
4
€ 9,000
Social Networks (per hour, 25hr average)
€ 75
5
€ 9,375
Blog Development (per hour, 26hr average)
€ 75
5
€ 7,800
Management Fees (per month)
€ 900
10
€ 118,800
Training Fees (per person)
€ 525
180
€ 94,500
Marketing Audit
Web Development
Online Advertising
Search Engine Optimisation
Software Development
€ 360,475
Total Sales
Figure 6.5 Year 2 Sales breakdown
Year three sales will be driven by increased marketing spending and NetGenmarketing.com
establishment as the primary online marketing service provider for Higher Education
Institutes. NetGenmarketing.com aims to gain a 7.87% total market share of all HEI’s in the
UK and Ireland. A key driver of NetGenmarketing.com sales revenue in year three will be
increased expansion of web development services.
These services are estimated to grow based on year one and two project successes as well
as the anticipated increased requirement by HEI’s to expand their website and incorporate
new programme types such as internal social networks, Institute blogs and website
embedded virtual world access.
- 49 -
NETGEN | MARKETING
Furthermore, the move by Higher Education Institutes to adopt new forms of technology for
marketing such as Virtual Worlds will allow NetGenMarketing.com to leverage the target
specific DSS tools and extensive virtual world knowledge to attract new customers. This
assumption is based on research conducted by us and in line with Gartner’s Hype Cycle that
suggests businesses and internet users will have mass up take of Virtual worlds by 201156.
Year 3
Service Type
Unit Cost
Customers
Total
Free
17
€0
Level 1
€ 5,000
2
€ 10,000
Level 2
€ 12,500
2
€ 25,000
Level 3
€ 25000
4
€ 100,000
Redesign & Audit
€ 8,000
15
€ 120,000
Banner Advertising
€ 250
27
€ 6,750
Pay Per click Advertsing
€ 800
27
€ 21,600
Web Analytics
Free
27
€0
Email Marketing
€ 900
27
€ 24,300
€ 1,100
27
€ 29,700
Virtual World strategy (per hour, 30hr average)
€ 75
12
€ 27,000
Social Network (per hour, 25hr average)
€ 75
10
€ 18,750
Blog Development (per hour, 26hr average)
€ 75
8
€ 15,600
Management Fees (per month)
€ 900
27
€ 454,500
Training Fees (per person)
€ 525
500
€ 157,500
Marketing Audit
Web Development
Online Advertising Package
Search Engine Optimisation
Software Development
€ 1,010,700
Total Sales
Figure 6.7 Year 3 Sales breakdown
56
Gartner Analyst, Virtual Worlds 2008 Forecast, Steve Prentice, Dec 2007.
- 50 -
NETGEN | MARKETING
7. FINANCIAL OVERVIEW
7.1 INTRODUCTION
NetGenMarketing.com is a service based business and therefore the primary financial issues
will be operating costs and growing sales revenues quickly. Figures in the financial data of
this report are based on our research, industry standards and strategic links with our partner
in the Netherlands; PauwR marketing agency. These figures help to calculate realistic sales
values and expenses. This allows NetGenMarketing.com to derive rational profitability
analysis.
NetGenMarketing.com will offer training services through a strategic partnership with national
newspaper training programmes. These training services will help to generate cash flow
quickly and thus boot-strap the primary business objective of providing online marketing
services to Higher Education Institutes. Initial operating challenges will be securing revenues
to leverage against fixed assets, salary and marketing costs therefore it is crucial to secure
customers quickly and convert customer interest into a multi service up-take agreement.
NetGenmarketing.com aims to offer initial customers a full range of service offerings in order
to provide a diversified service set but also to ensure greater customer choice is converted
into larger sales. Certain services such as the Marketing Audit and Web Analytics will be
provided free of charge with the hope of engaging customers instantly. Customer up-take of
services that require a monthly management fee will be crucial for ensuring constant year
round cash flow incomes.
7.2 Funding
This document is presented to whom it concerns in order to generate and secure initial
capital investment of €100,000. This capital is based on the peak cash flow requirement
projections set out in the companies finances. This capital will enable NetGenMarketing.com
to establish the business and begin trading. NetGenMarketing.com will generate a small loss
of €11,874in year one. This is due to initial investment costs and the purchasing of fixed
assets. Year two will see profits of €22,116 as customers grow and the business begins to
gain a foundation in the market. Year three profit will be €507,972 based on increased
market penetration and year one and two customer retention.
- 51 -
NETGEN | MARKETING
The funding requirements are as follows.
Source of Capital
Funding Amount
Number of Shares
Management & Board
€50,000
80%
External Investors
€50,000
20%
Figure 7.1 Sources of Capital
7.3 MANAGEMENT AND BOARD
Senior management will provide €50,000 funding through personal wealth, family and
friends. This equates to €25,000 per person equating to 40% share capital for each of the
two senior managers.
7.4 EXTERNAL INVESTORS
Additional funding will be generated from external investment. NetGenmarketing.com hopes
to secure €50,000 from investors in exchange for 20% equity. This investment would most
likely show a return in year four based on sale growths.
7.5 REVENUES
7.5.1 DISTRIBUTION OF SALES BY SERVICE CATEGORY
Year one sales are relatively evenly distributed across services. Management fees are driven
by new customer up take of Software Development and Online Advertising services. Training
services provide a year round cash flow which helps maintain business operations in year
one.
In year two, Management fees sees an expansion of revenues based on year one retention
of customers and the up take of new customers in the second half of the year. Web
development moves from mainly small scale site development to larger scale projects. This
is part due to the growing needs of existing customers and the expansion of web based
offerings such as internal social network and embedded virtual worlds.
Year three is driven by the new customer acquisition and hence management fees have
grown accordingly. Web development continues to remain a strong revenue generator as
previous projects are leveraged in the acquisition of larger scale site developments.
- 52 -
NETGEN | MARKETING
Figure 7.2 Distribution of Sales by service
7.6 LIST OF ASSUMPTIONS
7.6.1 COST OF SALES
Cost of sales primarily consists of commission fees for training alliances with national
newspapers. These costs are 20% of total training revenues based on analysis conducted by
the business57. Expenses associated with travel are included in the expenses section.
7.6.2 GROSS MARGIN
Gross margin remains relatively constant over the first three years as there is no direct cost
of sales for any other services other then training. Gross margin for the first three years of
trading ranges from 91%-97%.
7.6.3 SALARIES
The salaries detailed in the financial statements represent the total compensation figure for
each employee. There has been an allowance of 12.5% for Employers PRSI. Growth in
salaries is driven by business needs in year two and three. Growth in salaries in year three is
driven by the expansion of web development offerings and the need for further research into
new forms of DSS adaptation i.e. Social Networking and other future models.
57
Discussion with Julie T Brady, Marketing Manager, The Irish Times.
- 53 -
NETGEN | MARKETING
7.6.4 RENTS, RATES, INSURANCE AND OTHER OFFICE COSTS
The company will use home offices in year one and a virtual office base in conjunction with
Regus. Year two will see a fully serviced office space come online. This office will be located
in Dublin city centre. Other office costs are derived from telecommunications, printing,
stationary and other expenses. These costs are valued per employee head count.
7.6.5 PROFESSIONAL FEES
Professional fees include accounting, audit, payroll and legal fees. These fees will increase
year on year as the business expands. Figures are derived from Kent Carthy Solicitors
Dublin and discussions with director peers.
7.6.6 MARKETING
Marketing consists of advertising, conference costs, direct mail, travelling expenses and
other costs. The business marketing budget is driven by the need for face to face meetings
with customers and hence travelling expenses make up the majority of marketing
expenditure. Online advertising is an effective and cost efficient way of reaching the target
customer and will grow each year accordingly. Conferences enable direct promotion and
networking. Marketing costs increase year on year driven primarily by the expansion of the
business and thus the need for increases in travel to liaise and consult with clients. This form
of marketing ensures good customer relationship building and a higher conversion rate and
hence is a necessity for the business.
7.6.7 FIXED ASSETS AND DEPRECIATION
Fixed assets are made up of hardware and software and office requirements. Hardware and
Software are driven by increases in employee’s year on year. Office equipment includes
furniture, fixtures and fittings. Hardware and software are depreciated on a straight line basis
at a rate of 33% per annum. Office equipment is depreciated at a rate of 10% per annum and
is also done on a straight line basis.
7.6.8 BANK INTEREST AND CHARGES
This is calculated by cash outflow and based on bank interest and charges of 10% p.a.
7.6.9 CURRENCY
The currency is Euros
- 54 -
NETGEN | MARKETING
7.7 FINANCIAL STATEMENTS
Profit and Loss Account for year ending 31st
December
Year 1
Revenues
Web Development
Level 1
Level 2
Level 3
Advertising Services
Software Services
Training Services
Management Fees
Year 2
Year 3
24,000
5,000
9,150
14,025
57,750
34,200
48,000
5,000
12,500
25,000
30,500
26,175
94,500
118,800
120,000
10,000
25,000
100,000
82,350
61,350
157,500
454,500
144,125
360,475
1,010,700
Cost of Sales
12,600
12,600
18,900
18,900
31,500
31,500
Gross Profit
Gross Margin
131,525
91%
341,575
95%
979,200
97%
60,000
6,450
66,450
171,329
18,418
189,747
295,996
31,820
327,816
Rent, Rates and Insurance
Other Office Costs
Professional Fees
Marketing
Depreciation
Bank Interest and Charges
Total
2,940
9,360
33,000
22,355
6,597
2,697
143,399
18,000
27,300
27,000
29,955
12,073
3,510
307,585
21,000
42,240
31,000
50,655
23,799
(3,165)
493,345
Net Profit/(Loss)
(11,874)
33,990
485,855
Cumulative Profit/(Loss
(11,874)
22,116
507,972
Expenditure
Salaries
Employers PRSI
Figure 7.3 Profit and Loss Account
- 55 -
NETGEN | MARKETING
Cash Flow Statement for the year ending 31st
December
Year 1
Year 2
Year3
Inflows
Debtors
30 Days
60 Days
Total
64,210
77,925
142,135
138,850
200,265
339,115
386,640
553,500
940,140
Outflows
Fixed Assets
Data Transfer, Licensing Fees and Commissions
Salaries
Employers PRSI
Rent, Rates & Insurance
Other Office Costs
Professional Fees
Marketing
Bank Interest and Charges
Total
21,950
12,600
60,000
6,450
2,940
9,360
33,000
22,355
2,697
171,352
44,680
18,900
171,329
18,418
18,000
27,300
27,000
29,955
3,510
359,092
25,970
31,500
295,996
31,820
21,000
42,240
31,000
50,655
(3,165)
527,016
Period Inflow/(Outflow)
(29,217)
(19,977)
413,124
Cumulative Inflow/(Outflow)
(29,217)
(49,194)
363,931
Figure 7.4 Cash Flow Statement
- 56 -
NETGEN | MARKETING
Balance Sheet as at 31st December
Year 1
Fixed Assets
- Hardware and Software
- Office Equipment
- Accum. Depreciation
- Net Book Value
Year 2
Year 3
19,140
2,810
6,597
15,353
57,900
8,730
18,670
47,960
80,160
12,440
42,469
50,131
1,990
1,990
23,350
23,350
93,910
93,910
29,217
29,217
49,194
49,194
(363,931)
(363,931)
Net Current Assets/(Liabilities)
(27,227)
(25,844)
457,841
Total Assets
(11,874)
22,116
507,972
Total Net Assets/(Liabilities)
(11,874)
22,116
507,972
Capital Reserves
- Share Capital
- Profit and Loss A/C
(11,874)
22,116
507,972
(11,874)
22,116
507,972
Current Assets
- Debtors
- Cash at Bank
Creditors (Due within 1 yr.)
- Creditors
- Bank Overdraft
Creditors (Due after 1 yr.)
Loan Capital
Trade Creditors
Figure 7.5 Balance Sheet
- 57 -
NETGEN | MARKETING
8. APPENDICES
- 58 -
NETGEN | MARKETING
Practicum Technology Report
NETGEN | MARKETING
CONTENTS
CONTENTS _______________________________________________________ 2
1. WEBSITE DEVELOPMENT _________________________________________
1.1 SELECTION OF CMS __________________________________________
1.2 INSTALLATION OF THE CMS ____________________________________
1.3 COMPONENTS, MODULES AND TEMPLATE________________________
3
3
4
6
2.0 THE DECISION SUPPORT SYSTEM ________________________________ 8
2.1ROLE OF DSS IN DECISION MAKING PROCESS_____________________ 9
2.1.1 PHASES IN DECISION MAKING _______________________________ 9
2.1.2 BENEFITS A DSS TO ORGANISATIONS _______________________ 10
2.3 DSS USER INTERFACE DESIGN REQUIREMENTS _________________ 11
2.4 DEVELOPMENT OF THE VIRTUAL WORLD DSS ___________________ 13
2.5 CONCEPTUAL DSS ARCHITECTURE ____________________________ 14
2.6 FOUR VIEWS ________________________________________________ 16
2.6.1 USER PROFILE ___________________________________________ 17
2.6.2 FUNCTIONAL VIEW________________________________________ 17
2.6.3 PEER VIEW ______________________________________________ 18
2.6.4 TARGET VIEW ____________________________________________ 19
2.6.5 BUDGET VIEW____________________________________________ 19
2.6.5 DSS USER SCENARIO _____________________________________ 20
2.7 INTERFACE CONCEPTUALISATION _____________________________ 22
3. APPENDICES___________________________________________________ 24
List of Appendices
Appendix 1 – Virtual World Evaluation Criteria
Appendix 2 – Database Structure and Relationships
List of Figures
Figure 1.1 – CMS Comparison
Figure 1.2 - Joomla Tiered Architecture
Figure 1.3.1 – Usage of Module, Component and Template
Figure 1.3.2 – Module and component positions on front page template
Figure 2.1.1 – DSS Characteristics
Figure 2.5.1 – Conceptual DSS Architecture
Figure 2.6.1 – Four Views
Figure 2.6.5.1 – User Scenario
Figure 2.7.1 – DSS Concept Interface, Target View
Figure 2.7.2 – User Input Fields
-2-
NETGEN | MARKETING
1. WEBSITE DEVELOPMENT
The website needed to meet requirements related to ease of installation and maintenance,
navigation, content creation, speed of deployment and appeal. The requirement regarding
maintenance and speed of deployment made us decide to use a Content Management
System (CMS). Using a CMS, a dynamic website can be created, which could be updated
online by users, with the content stored in a database. We have evaluated four different CMS
systems, all distributed under a Open Source license, allowing for free usage, modification
and in some case commercialisation of the software.
1.1 SELECTION OF CMS
Demo versions of four different CMSs have been evaluated. Both back and front end of the
MiaCMS, Typolight, Joomla and SilverStripe have been tested, using default installations of
each CMS found at www.opensourcecms.com. Additionally user communities,
documentation, availability of extensions and live websites running the particular CMS have
been reviewed. Content management platform Drupal CMS has been excluded from this
analysis; The NetGenMarketing.com website does not require the level of functionality and
scalability offered by Drupal.
CMS
MiaCMS
Typolight
Joomla
SilverStripe
Ease of Installation
3
4
5
3
Ease of Maintenance
3
3
4
3
Level of Extensibility
2
3
4
2
Quality of Templates
3
4
5
1
Level of Support
3
3
4
2
Documentation
3
4
4
2
Maturity
3
5
5
2
Total Score
20
27
31
16
Figure 1.1 – CMS Comparison
-3-
NETGEN | MARKETING
From this Open Source CMS Evaluation, Joomla has come forward as CMS of choice, for
the following reasons:
•
CMS is template driven allowing us to focus on content and looks the website
•
CMS seemed to offer the most easy to use and intuitive back end of all
•
A large and active user community could provide valuable help when required
•
A great number of extensions are available to expand the website when desired
After deciding on which CMS to use, we advanced to the next phase, installation of the CMS
on a web server.
1.2 INSTALLATION OF THE CMS
The domain www.netgenmarketing.com has been registered at Dutch web hoster Webreus.
Before registering the domain and signing up for hosting at Webreus, the system
requirements of Joomla have been checked for compatibility with the Webreus web servers.
Joomla requires PHP 4.2.x, MySQL 3.23.x and Apache 1.13.19. Using Filezilla, a free File
Transfer Protocol application, the downloaded Joomla software has been transferred and
decompiled at the web server. A MySQL database has been created on the server through
the PLESK configuration panel, part of the hosting package delivered by Webreus.
Launching the Installer Package, a package containing classes that manage the installation
of Joomla1, the Joomla Framework, as shown in Figure 1.1has been installed at the web
server.
Extension Tier
Components
Application Tier
Framework Tier
Modules
JApplication
Joomla Framework
Figure 1.2 - Joomla Tiered Architecture
1
Templates
Joomla Developer Website, http://dev.joomla.org/content/view/31/58/
-4-
Plugins
NETGEN | MARKETING
The installation process inserted 35 tables in the MySQL database. An overview of the
Joomla database structure can be found in Appendix 2. The Joomla Framework, Plugins and
JApplication are all part of the back end management functions of the CMS.
The JApplication Tier consists of three applications, JInstallation, JAdministrator and JSite.
The JInstallation application is used once to install the Joomla CMS, after that the application
can be used to install Components, Modules and Templates. The JAdministrator application
is used to run the back end of the website. The JSite application provides the front end of the
website, merging data from the database with the selected template, shaping the website as
defined in the template files.
-5-
NETGEN | MARKETING
1.3 COMPONENTS, MODULES AND TEMPLATE
The extension tier of the Joomla CMS consists of Components, Modules and Templates. All
three can be managed through the back end of the system. Components are always shown
in the main body of the template used and an important element of Joomla functionality.
Modules can be described as small content boxes added to a Joomla website, providing new
functionality. Modules are placed on fixed positions. The Template is used to provide mark
up to the stored from the Joomla database. The template has fixed positions for content
items. The website developed for NetGenMarketing.com uses the following components,
modules and template.
Name
Position Function
Main Menu Module
Left
Displays the main menu in vertical navigation bar
User Menu Module
Left
Displays User Menu after user logs in
Our Partners Module
Left
Displays the logo’s of our partners
Our Staff Module
Right
Displays staff of the company
Testimonials Module
Right
Displays Testimonials of future customers
JA Login Module
Top
Provides login capabilities for registered users
JA Slide Show Module
Body
Displays slide show of three fading pictures
Top Menu Module
Menu
Displays the main menu in horizontal navigation bar
Search Module
Menu
Add search field and functionality to navigation bar
DSS Tool Module
User1
Displays box of content in bottom of website
We Provide Module
User 2
Displays box of promotional content in bottom of website
Recruit Module
User 3
Displays box of promotional content in bottom of website
Request Audit Module
User 4
Displays box of promotional content in bottom of website
Audit Banner Module
User 5
Displays box of promotional content in bottom of website
Template
Customised version used as a main template for website
JA Edenite
Contact Component
Body
Displays a contact form in the main content body
Figure 1.3.1 – Usage of Module, Component and Template
Figure 1.3.2 shows the template, components and modules implemented in the front page
design of the NetGenMarketing.com website.
-6-
NETGEN | MARKETING
Left
User1
Menu
User2
Body
User3
Top
User4
Figure 1.3.2 – Module and component positions on front page template
-7-
Right
User5
NETGEN | MARKETING
2.0 THE DECISION SUPPORT SYSTEM
Extensive research into virtual worlds and organisations has been undertaken during the
practicum. In line with the composed business plan and using the data collected, a virtual
world Decision Support System (DSS) will be developed. The DSS will provide decision
support for the problem of finding a virtual world that is most suitable for the organisation
using the DSS.DSS are computer-based information systems designed to support human
users in decision making activities2. DSS are designed to offer help to users in identifying
and solving problems by providing relevant information, sometimes presented graphically,
extracted from raw data, documents and personal knowledge. Examples of information that a
DSS might collect and present to the user are3:
•
A comparison of sales figures between last and current month
•
Projections of revenue based on new service sales assumptions
•
Consequences of different decision alternatives, taking into consideration past
experience in a particular context
The characteristics of the DSS are outlined in the table below, compared to other information
system characteristics.
System
Characteristics
Transaction
Processing Systems
Information
Reporting Systems
Decision Support
Systems
User Community
Clerical and
supervisory
High
Some reading, heavy
updating
Thrid-generation
languages
Low
Supervisory and
middle management
Moderate
Read Only
Individual knowledge
workers
Moderate to low
Primarily read only
3rd and 4 generation
languages
Moderate
Specialized
languages, packages
High
High
Moderate
Low
Cost savings,
customer service
Reporting
requirements, basic
information for
decision making
Improved Decision
making effectiveness
Usage Volume
Database Usage
Typical Software Base
Emphasis on Ease of
Use
Emphasis on
Processing Efficiency
Reason for
Development
Figure 2.1.1 – DSS Characteristics
th
4
2
Wikipedia.org – Decision Support System, http://en.wikipedia.org/wiki/Decision_support_system
SearchCIO.com – Decision Support system http://searchcio.techtarget.com/sDefinition/0,,sid182_gci213888,00.html
4
E. G. Mallach, Understanding Decision Support Systems and Expert Systems, P42, 1994
3
-8-
NETGEN | MARKETING
2.1ROLE OF DSS IN DECISION MAKING PROCESS
DSS are created to help users make decisions. A DSS does not make the decision for the
user, but provides support to human users. It’s therefore important that they are adapted to fit
into the style human work and make decisions; otherwise they will probably not be used. A
decision is defined by Mallach as a reasoned choice among alternatives5. Decisions are
made in the process of problem solving. Problem solving can be described as the process of
closing the gap between a current situation existing in reality and a more desired future
situation. A decision consists of three components6;
1. a decision statement
2. a set of available alternatives
3. a set of decision making criteria
The decision statement is a carefully composed description of what the users is trying to
decide. The alternatives are the possible decisions that can be made. The set of decision
making criteria are the factors needed to be optimised in a decision. As usual with decisions,
it’s not unlikely that compromises are needed to be made.
2.1.1 PHASES IN DECISION MAKING
The decision process consist of three phases; Intelligence, Design and Choice. The DSS
system will have to provide different information depending on the decision phase the user is
in. The intelligence phase consists of finding, identifying and formulating the problem or
situation that calls for a decision; basically, deciding on what to decide on. The end result of
the intelligence phase is a decision statement.
The design phase is where alternatives are developed. Also, objectives for the decision are
formulated. When objectives are formulated, expectations are raised and need to be met. In
the choice phases the selected alternatives from the design phase will be evaluated. One of
the alternatives will be chosen. The end phase of this phase is a decision.
5
6
E. G. Mallach, Understanding Decision Support Systems and Expert Systems, P53, 1994
E. G. Mallach, Understanding Decision Support Systems and Expert Systems, P62, 1994
-9-
NETGEN | MARKETING
2.1.2 BENEFITS A DSS TO ORGANISATIONS
Usage of the DSS will be of value to the organisation in the following ways:
•
Improve personal efficiency
The DSS will support the user in completing tasks that would otherwise be more time
consuming or impossible to do, with less chance of error.
•
Better problem solving
The DSS can make it possible to solve the problem better, through objectively improved
decision quality or increased consistency of decisions. The DSS can also provide
decision makers with competitive information about similar decisions made in the past.
•
Facilitating Interpersonal Communication
The DSS can be used as a tool for persuasion; that a particular action should be taken in
the future or that a particular action was taken properly in the past. The DSS will also
provide a common basic for decision making, including standardisation of concepts,
mechanics and vocabulary, increasing efficiency of group discussions.
•
Promoting learning
The DDS will include an interface facility that allows users to review detailed information
regarding available input options. Using the system the users will also receive feedback
why the DSS made a particular recommendation.
- 10 -
NETGEN | MARKETING
2.3 DSS USER INTERFACE DESIGN REQUIREMENTS
James Larson7 points out that the following ten factors should be taken into consideration
when designing the DSS user interface;
1. Time
6. Help
2. Learning
7. Adaptability
3. Recall
8. Concentration
4. Versatility
9. Fatigue
5. Errors
10. Uniformity
Applied to the development of the NetGenMarketing.com DSS, the following interface design
considerations and decisions have been made and applied in making the DSS interface
prototype.
1. Time - The DSS system will require a fraction of the total time that the user spends
working with the system to execute commands and retrieve information. This time can’t be
influenced by the interface design. Proper user interface design however can minimise
wasted time on the user’s part. Distracting items and clutter of the screen should be avoided.
2. Learning - Using the DSS system, the user will be confronted with a number of questions
and request for information. The user should be able to focus on these items; using the
system itself should be as easy to use as possible. Learning to use the system should not
require any effort or energy, clear buttons and labels will help in navigation though the DSS,
also, feedback for
3. Recall - The system will store information entered by the user. At any time, this
information should be displayed to the user when requested. According to Larson, the user
interface should facilitate recall to enable user to get familiar with the system again after not
using it for some time. The DSS will therefore need to have an option to store the session.
4. Versatility - It’s very likely for the DSS system to be expanded over time, requiring new
development work. The existing user interface should allow new functionality and content to
be integrated easily.
5. Errors - User errors should naturally be avoided as much as possible. The user interface
should minimize the occurrence of user errors. Possibly a log of user errors made should be
kept, enabling detection of often made mistakes. In such scenarios, offering additional
7
Larson, James A. End User Facilities in the Nineteen Eighties, IEEE Computer Society, Los Alamitos, California
- 11 -
NETGEN | MARKETING
information or support could be a solution, best solution however would be to change the
system and remove the point of error to accommodate the user.
6. Help - The system should provide help when the user experiences problems. This help
system should be context sensitive; it should offer information and assistance related to what
the user is trying to do or currently viewing on the screen; the interface should be related to
support offered by the system. The system should also explain to users why a specific
question is being asked or particular input is needed.
7. Adaptability - It’s important that check if the system tailors itself to different styles and
habits of users. Implementation of the interface to become individually and truly “self
tailoring” might be difficult; development of an “expert mode” could however prove to be a
suitable solution. Additionally, navigation with solely keyboard should be taken into
consideration, since this has proven to be the input method of preference by expert users.
8. Concentration - Most people find it difficult to memorize more then six or seven active
facts at the same time. Memory load for the user should always be reduced. This can be
done by implementing a section in the interface that offers an overview of decisions
taken/input given. The DSS will also feature an option to save and load sessions.
9. Fatigue - Physical fatigue or repetitive strain injuries don’t seem to apply to the virtual
world DSS. The system won’t be used intensively, at least not at a frequency on which these
problems normally arise. Mental fatigue can be avoided by implanting the features mentioned
earlier, in an attempt to reduce memory load and requesting input in a way that makes
natural sense the user.
10. Uniformity - The commands used in the DSS system should be equal to common
commands used in mainstream applications and more specifically, web browsers.
- 12 -
NETGEN | MARKETING
2.4 DEVELOPMENT OF THE VIRTUAL WORLD DSS
The virtual world DSS will be a web based information system whose primary purpose is to
provide members of organisations with information on which an informed decision can be
made. The DSS will support user in their decision which virtual worlds would suit the
organisation’s goals best.
The main reason for development of the DSS is improved decision making effectiveness.
The tool will provide information about:
•
Demographic groups that might be addressed through virtual worlds
•
Peer group activity in virtual worlds
•
Options for virtual world activity
The DSS will be a suggestion system; the decisions will be highly structured and the system
will mimic the reasoning process a human expert would use in reaching a decision. The
collected research and expert knowledge will be translated into a reasonable number of
rules.
Updating of the databases used in the DSS is of great importance to guarantee reliable
decision support. The data will be updated manually, by NetGenMarketing.com or, after
careful consideration, outsourced to third parties. Using the Amazon Mechanical Turk, a
Amazon Web Service, could proof to be a cost effective way of keeping the DSS databases
up to date.
The DSS will be used by a user community consisting of individual knowledge workers on all
management levels. The usage volume will be moderate to low. The database usage will
primarily be read-only. The emphasis on ease of use of the DSS will be high; the emphasis
on processing efficiency will be low.
- 13 -
NETGEN | MARKETING
2.5 CONCEPTUAL DSS ARCHITECTURE
The DSS Architecture will consist of different components, shown in Figure 2.5.1.
Figure 2.5.1 – Conceptual DSS Architecture
Table Virtual Worlds - The final virtual worlds database table will be set up as an
evaluation of 66 virtual worlds on 72 characteristics grouped in 10 categories.
Table Competitive Landscape - The database table competitive landscape includes
information about 245 HEI’s with a presence in a virtual world, estimated costs of presence,
level of development and traffic.
Virtual Worlds Database - The virtual world database contains the tables Virtual World
Ranking and Competitive landscape.
- 14 -
NETGEN | MARKETING
DBMS - The Data Base Management System controls the organization, storage,
management, and retrieval of data in a database.8 The DBMS will contribute in the ease of
which the DSS can be expanded in the future.
End-User Query Tools - Provide users with the opportunity to analyze data and do queries.
The DSS will offer options to do queries without specific knowledge of databases to allow for
easy data retrieval.
User Interface - The User Interface allows the user to input data into the DSS and the
system to present data and show the effects of user input.
Hardware, Operating System Platform - The DSS will run on a web server. Technical
specifications will have to be discussed with contracted developer.
Networking and Communication Facilities – The DSS will be web based, making it
platform independent and easy accessible for users. Facilities for networking and
communication will have to be in place to realise this vision.
External Data – External data will be collected and fed to databases through the database
management system. The databases will have to be updated regularly to be able to
guarantee reliable decision support to users of the DSS.
Users – Users of the system will be clients of NetGenMarketing.com
8
http://en.wikipedia.org/wiki/Database_management_system
- 15 -
NETGEN | MARKETING
2.6 FOUR VIEWS
As described before, the intelligence phase consists of finding, identifying and formulating
the problem or situation that calls for a decision. To offer the user clear guidance through the
decision making process and ensure the problem is well defined, the demo system will
feature four viewpoints, all focussed on different aspects that needed to be taken into
consideration when composing a decision. The four viewpoints are:
Functional View - Defines desired
characteristics of the virtual world.
Peer View - Looks at the decision from the
organisation’s perspective.
Target View - Based on characteristics of
the desired target group.
Budget View - The Budget view evaluates
available options with defined budget.
Figure 2.6.1 – Four Views
Each view will request the user to make a choice of provide input. After completing all four
views, the user will receive an advice on which virtual world would best suit the defined
requirements. Before the user can advance to the four views, completing a user profile will
be required.
- 16 -
NETGEN | MARKETING
2.6.1 USER PROFILE
Next to the information provided by the user when going through the four viewpoints, the
user will be asked to enter information which will be used to compose a User Profile.
Fieldname
Description
Name HEI
Name of HEI
First Name
First name of the user
Surname
Surname of the user
Position
Position of user in organisation
Email Address
Email address of user
Phone number
Phone number of user
All information in these fields will be stored. Input will also be checked for duplicates, to avoid
confusion caused by organisations using the DSS with different user profiles.
2.6.2 FUNCTIONAL VIEW
Objective of the Functional View is to let the user define characteristics the virtual world
should comply to. The following questions will be presented to the user of the DSS.
Fieldname
Description
Question 1
To define the methods of communication the virtual world
should offer
Question 2
To define the importance of the ability for the virtual world user
to create, share and or trade content
Question 3
To define the desired level of control over virtual world user
movement and communication
Possible communication methods offered by virtual worlds are Live Local Text Chat, Instant
Messaging, Emotes, Video, Voice over IP, Group Messaging, Friends Lists, and Email. The
deeper the level of user-to-user interaction, the more invested users will be in the world, but
the more potential there is for abuse of communication methods. From the 66 worlds
evaluated, 82% of worlds provide Live Local Chat and Emotes, 41% provide Voice over IP
and 12% support video communication.
- 17 -
NETGEN | MARKETING
User generated content provides users with a sense of ownership and investment. Trading
and sharing content can serve as a resource for other users to enjoy. Currently
65% of virtual worlds allow users to generate content, 40% of virtual worlds offer
opportunities to trade or share content. Some virtual worlds, for example the recently
launched Google Lively, require the user to install external software to enable the
development and design of content. Language Filters applied to user communication, Age
Verification and Private Servers are examples of tools used to control users in virtual worlds.
An example of the demand for a more controlled environment can be found in Linden Lab
developing Teen Second Life, a version of Second Life appropriate for underage users.
2.6.3 PEER VIEW
The Peer View looks at the decision from the organisation’s perspective. Information
obtained will be used to compare the organisation with other organisations which already
established a presence in a virtual world and are listed in the database table Competitive
Landscape. Requests for the following information will be presented to the user.
Fieldname
Description
Continent
To choose the continent where the organisation is based
Country
To choose the country location of the organisation
Educator Type
To define the type of education provided by HEI
Curriculum
To define the curriculum to be presented in virtual world
Purpose
To define the purpose of presence in a virtual world
The database table Competitive Landscape currently has 245 HEI’s. 56% of the HEI’s in the
database are based in North America, 37% is based in Europe. 40% of HEI’s is a Higher
Education body; the majority of 53% is a University. Most HEI’s use virtual worlds for the full
curriculum; Only Multimedia studies (12%) are specifically well represented.
- 18 -
NETGEN | MARKETING
2.6.4 TARGET VIEW
The objective of the Target View is to define characteristics of the desired target group, to be
reached in a virtual world.
Fieldname
Description
Age group
To define the age of the desired target group
Geographic Location
To define the location of desired target group
Language
To define the native language of desired target group
Sex
To define the sex of the desired target group
Target group characteristics will be compared to user demographics of virtual worlds
included in the virtual worlds database table to find the most suitable world for the user
depending on target audience. Every virtual world is available in English. However, Hipihi is
an example of a virtual world where the majority of users prefer to speak a different
language, namely Chinese. An example of a virtual worlds targeting a particular sex is
Stardoll.com, where teenage girls come together to talk about friends and fashion.
2.6.5 BUDGET VIEW
The Budget view evaluates available options with defined budget.
Fieldname
Description
Budget
To define the total budget available for virtual world project
Development
To define if the development of the presence in the virtual
world will be undertaken by HEI or outsourced
Users HEI
To define the number of accounts in virtual world needed for
HEI staff or students
Input at the Budget field will be used to provide an indication of the possibilities for
establishment of a presence in a virtual world. The database virtual worlds features a column
with prices per user account per month, multiplied by the required number of Field Users HEI
usage costs per month can be calculated. The remaining budget will be used to compare the
costs of running a virtual presence. The database table Competitive Landscape offers insight
in the money other HEI’s have spent to purchase land or a room in a virtual world.
- 19 -
NETGEN | MARKETING
2.6.5 DSS USER SCENARIO
To demonstrate the desired functioning of the Virtual World DSS, a user scenario has been
created.
Jan Bakker, Head of Multimedia studies at Avans University in the Netherlands is interested
in setting up a virtual world presence. He would like to promote his Multimedia course in a
new and attractive way and is looking into virtual worlds. He would like to invite prospective
students into a virtual environment to show them around in a gallery of videos and artwork
produced by current students.
After completing the User Profile and the Functional, Peer, Target and Budget view, he
would be recommended by the DSS to have a look at Active Worlds, listed at the top of the
filter. This world would meet all outlined requirements. Clicking on the world could provide
Jan with budget information. In this case, purchasing a virtual world presence would cost at
maximum $1219.95 yearly, minus a 15% discount for educational institutes9. The required
number of user accounts would costs $139 per month in total.
From the Competitive Landscape database table, Dutch HEI’s with a presence in a virtual
world and other HEI’s using Active Worlds in their Multimedia curriculum could be displayed.
This information is currently already available in the database, although expansion of the
number of records in the database is required.
9
http://www.activeworlds.com/products/worlds_pricing.asp
- 20 -
Budget View
Profile
View
View
View
Target
Peer
Functional
User
NETGEN | MARKETING
Fieldname
Description
Name HEI
Avans University
First Name
Jan
Surname
Bakker
Position
Head of Multimedia Studies
Email Address
[email protected]
Phone number
+0031118464215
Fieldname
Description
Question 1
Live Chat, Video
Question 2
User Generated Content Allowed
Question 3
Private Server
Fieldname
Description
Continent
Europe
Country
Netherlands
Educator Type
University
Curriculum
Multimedia
Purpose
Showcase
Fieldname
Description
Age group
17-23
Geographic Location
Netherlands
Language
English, Dutch
Sex
Male, Female
Fieldname
Description
Budget
5000
Development
Inhouse
Users HEI
25
Figure 2.6.5.1 – User Scenario
- 21 -
NETGEN | MARKETING
2.7 INTERFACE CONCEPTUALISATION
Having taken into consideration the ten factors outlined a concept user interface has been
developed using SwishMax Pro.
3
5
6
4
1
2
7
Figure 2.7.1 – DSS Concept Interface, Target View
The concept user interface contains the following items:
1. User Profile - Displays the Name and Organisation of the user.
2. Session – Buttons to save and load sessions.
3. Views - The four different views are being displayed in tabs. The active view is
highlighted. Users can switch to views any time to change parameters.
4. Content - Requested user input is being displayed in the centre of the application.
5. Help – Button allows user to browse through help files when needed.
- 22 -
NETGEN | MARKETING
6. Live Filter – Depending on input of user, the filter will display virtual worlds that suit
the given parameters.
7. Save and Continue – Button to save input and continue to the next view.
In this interface concept design, the following User Input fields have been used:
Item
Visualisation Description
Text Box
Allows for input of characters.
Drop Down Menu
Provides choice of set parameters in a menu.
Tick Box
Allows user to indicate choice by ticking a box.
Figure 2.7.2 – User Input Fields
A demo of the DSS will be presented during the practicum presentation.
- 23 -
NETGEN | MARKETING
3. APPENDICES
- 24 -
NETGEN | MARKETING
Appendix 1 – Virtual World Evaluation Criteria
Hardware Requirements
Hardware requirements include requirements of system configuration, internet connection
and security for each virtual world. The availability of a web based version of a virtual world is
an especially important factor; In general, a web based version has lower system and
broadband requirements, a small size of download required and no need for firewall
configuration. Hardware requirements criteria include:
•
Broadband requirements
•
User System requirements
•
Size of Download Required
•
Firewall Configuration Required
•
Web Based
Avatar Options
Relevant options related to avatars have been evaluated for each virtual world. In general,
the higher the level of sophistication of the virtual world, the more advanced avatar graphics,
animations and interaction options are. Avatar Options criteria include:
•
User can create avatar from sketch
•
Number of available avatars to choose from
•
User can dress up avatar choosing items from library
•
User can design own clothing for avatar
•
Avatar is animated
•
Custom animations can be implemented
•
Avatar can shows expressions
- 25 -
NETGEN | MARKETING
User Experience Level
Virtual worlds have been evaluated on taking into account different User Experience Levels.
Availability of expert/novice modes, support of different types of navigation and available
search options are examples of criteria used to evaluate the virtual world on User Experience
Level. User Experience Level criteria include:
•
Taking into account user experience
•
Support user with varying degrees of domain knowledge
•
Provides the ability to undo in navigation or creation
•
Support appropriate types of user navigation
•
Provides an easy way to answers to question "Where am I".
Content Creation
User generated content (UGC) gives users a sense of ownership and investment and can
serve as a free resource for other users to enjoy, whereas developer generated content can
more finely control the look, feel, and standards of the world. Content Creation criteria
include:
•
Allows content creation by user
•
Allows content manipulation by user
•
Ease of creation and manipulation by user
•
Allows Content Trade by user
•
User has a Personal Content Library
•
User has a Public Content Library
- 26 -
NETGEN | MARKETING
User-to-User Interaction
Meaning the methods by which users communicate, influence, and express themselves to
other users. The deeper the level of user-to-user interaction, the more invested users will be
in the world, but the more potential there is for abuse of communication methods.
User to User Interaction criteria include:
•
Live Local Text Chat
•
Instant Messaging
•
Chat Gestures/Emotes
•
Video over IP
•
Voice over IP
•
Group messaging
•
Friends Lists
•
Email
Operating System Compatibility
Virtual worlds are applications ran on a host. The operating system acts as this host. The
columns Operating Systems Compatibility evaluate the compatibility of the virtual worlds on
different operating systems.
Operating System Compatibility criteria include:
•
Windows
•
Mac OS
•
Linux
•
Symbian OS
•
Windows Mobile
•
Other
Perspective
Perspective involves the visual presentation of the virtual world to the user. Options include:
•
2D
•
2.5D
•
3D
- 27 -
NETGEN | MARKETING
User Accounts
Describes different types of accounts and options related to user accounts. Language filter,
private servers and age limit are important factors when the users of the virtual world are
underage.
User Accounts criteria include:
•
Free Trial
•
Free Account Type
•
Price per Month
•
Language Filter
•
Private Servers
•
Age Limit
Collaborative Interaction
Tools and functionality offered in virtual world to increase the productivity of collaborative
meetings and allow for efficient and secure meetings.
Collaborative Interaction criteria include:
•
Meeting management system
•
Cooperative word processing
•
Whiteboard
•
Secure meeting
•
Session replay
•
File storing
•
File sharing
- 28 -
NETGEN | MARKETING
Purpose
Organisations can have different reasons for establishing a presence in a virtual world.
Purpose criteria include:
•
First movers advantage
•
Competitive Necessity
•
R&D Experimentation
•
Showcase
•
Advertising
•
Virtual Commerce
•
Customer Service
•
Customer Community Building
•
Collaboration
- 29 -
NETGEN | MARKETING
Appendix 2 – Database Structure and Relationships
Source: Torkil Johnsen, http://docs.joomla.org/Database_structure
- 30 -
NETGEN | MARKETING
Appendix 1: Methodology
This methodology describes the research methods undertaken to:
•
HEI’s using Pay Per Click advertising to recruit students
•
HEI’s using Social Networks as marketing platforms to recruit students
•
HEI’s using Blog Marketing to recruit students
•
HEI’s website level of Search Engine Optimisation
Pay per Click Advertising (PPC)
The Google search engine has by far the greatest market share in the UK and Ireland,
87.34%1, search engine marketing research has therefore focussed on Google’s PCC
advertising program Google AdWords and the Google search engine.
To research if Institutes currently make use of Google AdWords to recruit students,
queries have been entered in the Google.ie and Google.co.uk search engines. These
localised versions of Google.com are available though the Google AdWords Tools in
Google AdWords Pro accounts.
Keywords selected are broad and include in two occasions a custom term, namely name
of the university and city where university is located. These keywords are very likely to
be included in any PPC campaign and should therefore trigger an Ad to be displayed.
Search queries Ireland
Search queries United Kingdom
#name university#
#name university
university #city#
university #location
university ireland
university uk
college ireland
college uk
academic courses
academic courses
study in ireland
study in england
studying abroad
studying abroad
undergraduate courses
undergraduate courses
Ads won’t show up any time of the day, Ad timing and Budget settings could prevent Ads
from showing on certain days or times. Research has therefore been held on four
1
Source – Hitwise.co.uk - June, 2008 - based on volume of searches.
59
NETGEN | MARKETING
different occasions and times: Wednesday 16th July 11.00 AM, Friday 18th July 20.00
PM, Sunday 20th July 14.00 PM, Monday 21th July 90.00 AM. Whenever an Ad aimed
at recruitment of students was shown after entering a search query, the adverting HEI
was noted as a user of Pay Per Click marketing.
Blogs and Blogmarketing
To find out if HEI’s used a blog and blog marketing tools to recruit students, the websites
of selected HEI’s where checked for the availability of a blog. Additionally,
http://blogsearch.google.com has been used, searching for name of HEI.
Social Networks and marketing on Social Networks
Usage of internal social networks by HEI’s has been researched by visiting HEI’s
website. External use of social networks to recruit students has been researched on
networks Bebo.com, Facebook.com and MSN Groups. Searches were conducted on
name of selected universities to locate communities in these social networking platforms.
Ad Placement on social networks has not been included in this research.
Search Engine Optimisation Research
Using an automated solution found on www.seoranktool.com, Institute’s websites have
been scanned on a basic level of search engine optimisation. The URL, Meta Title, Meta
Keywords, Meta Description, Domain name, Google PageRank, presence in Technorati
and DMOZ, Alexa TrafficRank and Social Bookmarks have been checked.
Additional SEO research has been conducted manually to find out how HEI’s ranked on
relevant keywords. A number of keywords have been selected and entered in the
Google search engine. Next presence of HEI’s on Search Engine Result Page (SERP)
took place.
To improve speed of scanning and reliability of results, variables have been added to the
URL of the Google Search Engine after conducting a search. Execution of search query
had to be repeated after variables were added to apply them to results shown on SERP.
60
NETGEN | MARKETING
Variables used are:
•
&gl=GB / &gl=IE
To reflect the SERP as seen by user in respective countries Ireland and United
Kingdom, the ISO variable for each country has been added.
•
&num=200
SERP has been extended to 200 results using the variable above. This enabled
quick scanning the first 200 positions for chosen keywords.
Search Terms
Search Terms
Points
SERP
Ireland
UK
Awared
Position
university ireland,
university uk,
10
Position 1-3
universities
universities uk,
9
Position 4-6
ireland,
english
8
Position 7-9
english
universities,
7
Position 10-12
universities,
post grad study,
6
Position 13-15
post grad study,
study abroad in
5
Position 16-18
study abroad in
english, English
4
Position 19-21
english, english
master studies
3
Position 22-24
2
Position 25-27
1
Position 27-30
master studies
61
Institute Name
Institute Type City/Town
DCU
University
Dublin
UCD
University
Dublin
Trinity College
University
Dublin
D.I.T.
University
Dublin
Dublin Business School
HEI
Dublin
UCC
University
Cork
Durham University
University
Durham
Bath University
University
Bath
University of Bedfordshire
University
Luton
University of Bournemouth
University
Dorset
Cardiff University
University
Cardiff
Cumbria Inuiversity
University
Lancaster
Cambridge University
University
Cambridge
Dartington College of Arts
HEI
Devon
Dundee, University of
University
Dundee
University of Edinburgh
University
Edinburgh
University of Exeter
University
Exeter
Leeds Metropolitan University
University
Leeds
Liverpool Hope University
University
Liverpool
London Business School
HEI
London
London South Bank University
University
London
King's College London
HEI
London
Glasgow School of Art
HEI
Glasgow
Goldsmiths, University of London University
London
Imperial College London
HEI
London
Harper Adams University College University
Shropshire
Keele University
University
Keele
Huddersfield University
University
Yorkshire
Nottingham Trent University
University
Nottingham
Oxford University
University
Oxford
Queen Margaret University
University
Edinburgh
University of Reading
University
Reading
Royal college of Art
HEI
London
Royal Northern College of Music HEI
Manchester
Queen's University Belfast
University
Belfast
Southampton Solent University University
Southampton
Sheffield Hallam University
University
Sheffield
Anglia Ruskin University
University
Cambridge
St. Mary's University College
University
Twickenham
St. Mary's University College
University
Belfast
University College Birmingham University
Birmingham
Thames Valley University
University
Reading
Country
Ireland
Ireland
Ireland
Ireland
Ireland
Ireland
England
England
England
England
Wales
England
England
England
Scotland
Scotland
England
England
England
England
England
England
Scotland
England
England
England
England
England
England
England
Scotland
England
England
England
Northern Ireland
England
England
England
England
Northern Ireland
England
England
Appendix 2 HEI Current Marketing Efforts
NETGEN | MARKETING
62
Url
Number of Students
Adwords
www.dcu.ie
10,000 No
www.ucd.ie
22,528 Yes
www.tcd.ie
15,492 No
www.dit.ie
22,000 No
www.dbs.ie
9,000 Yes
www.ucc.ie
14,500 No
www.dur.ac.uk
17,410 No
www.bath.ac.uk
14,225 No
www.beds.ac.uk
14,550 Yes
www.bournemouth.ac.uk
17,870 No
www.cardiff.ac.uk
30,930 No
www.cumbria.ac.uk
9,583 No
www.cam.ac.uk
18,396 No
www.dartington.ac.uk
610 No
www.dundee.ac.uk
18,610 No
www.ed.ac.uk
25,591 No
www.exeter.ac.uk
15,720 No
www.leedsmet.ac.uk
39,310 No
www.hope.ac.uk
7,885 No
www.london.edu
1,495 Yes
www.lsbu.ac.uk
23,200 No
www.kcl.ac.uk
21,252 No
www.gsa.ac.uk
1,740 No
www.goldsmiths.ac.uk
7,615 No
www.imperial.ac.uk
13,410 No
www.harper-adams.ac.uk
2,755 No
www.keele.ac.uk
12,345 No
www.hud.ac.uk
19,740 No
www.ntu.ac.uk
24,225 No
www.ox.ac.uk
19,486 No
www.qmu.ac.uk
5,410 No
www.rdg.ac.uk
14,680 No
www.rca.ac.uk
920 No
www.rncm.ac.uk
696 No
www.qub.ac.uk
24,560 No
www.solent.ac.uk
24,735 No
www.shu.ac.uk
30,009 No
www.anglia.ac.uk
20,300 No
www.smuct.ac.uk/
3,161 No
www.smucb.ac.uk/
1,120 No
http://www.ucb.ac.uk
13,970 No
www.tvu.ac.uk
47,430 No
Blog
No
Yes
Yes
No
No
No
Yes
Yes
Yes
Yes
Yes
No
Yes
No
No
Yes
Yes
Yes
No
Yes
Yes
No
Yes
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
No
Yes
Yes
No
Yes
Yes
Virtual world
No
Yes
Yes
No
No
No
No
No
Yes
Yes
No
No
Yes
No
No
Yes
No
No
No
No
No
No
No
No
No
No
No
Yes
No
Yes
Yes
No
No
No
No
No
No
Yes
No
No
No
No
Social Network
None
None
None
None
None
None
Internal
Internal
None
None
None
None
None
None
Internal
Internal
None
None
None
None
None
None
None
None
Internal
None
None
None
None
None
None
None
None
None
Internal
None
None
Internal
None
None
None
Internal
Open Day
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
NETGEN | MARKETING
Appendix 3 Search Engine Optimisation Analysis
HEI: Durham University
HEI: Dublin City University
Domain: www.dur.ac.uk
Domain: www.dcu.ie
63
NETGEN | MARKETING
HEI: University College Dublin
Domain: www.ucd.ie
HEI: Trinity College Dublin
Domain: www.tcd.ie
64
NETGEN | MARKETING
HEI: Dublin Institute of Technology
Domain: www.dit.ie
HEI: Dublin Business School
Domain: www.dbs.ie
65
NETGEN | MARKETING
HEI: University College Cork
Domain: www.ucc.ie
HEI: Bath University
Domain: www.bath.ac.uk
66
NETGEN | MARKETING
HEI: University of Bedfordshire
Domain: www.beds.ac.uk
HEI: University of Bournemouth
Domain: www.bournemouth.ac.uk
67
NETGEN | MARKETING
HEI: Cardiff University
Domain: www.cardiff.ac.uk
HEI: Cumbria University
Domain: www.cumbria.ac.uk
68
NETGEN | MARKETING
HEI: Cambridge University
Domain: www.cam.ac.uk
HEI: Dartington College of Arts
Domain: www.dartington.ac.uk
69
NETGEN | MARKETING
HEI: University of Dundee
Domain: www.dundee.ac.uk
HEI: University of Edinburgh
Domain: www.ed.ac.uk
70
NETGEN | MARKETING
HEI: University of Exeter
Domain: www.exeter.ac.uk
HEI: Leeds Metropolitan University
Domain: www.leedsmet.ac.uk
71
NETGEN | MARKETING
HEI: Liverpool Hope University
Domain: www.hope.ac.uk
HEI: London Business School
Domain: www.london.edu
72
NETGEN | MARKETING
HEI: London South Bank University
Domain: www.lsbu.ac.uk
HEI: King's College London
Domain: www.kcl.ac.uk
73
NETGEN | MARKETING
HEI: Glasgow School of Art
Domain: www.gsa.ac.uk
HEI: Goldsmiths, University of London
Domain: www.goldsmiths.ac.uk
74
NETGEN | MARKETING
HEI: Imperial College London
Domain: www.imperial.ac.uk
HEI: Harper Adams University College
Domain: www.harper-adams.ac.uk
75
NETGEN | MARKETING
HEI: Keele University
Domain: www.keele.ac.uk
HEI: Huddersfield University
Domain: www.hud.ac.uk
76
NETGEN | MARKETING
HEI: Nottingham Trent University
Domain: www.ntu.ac.uk
HEI: Oxford University
Domain: www.ox.ac.uk
77
NETGEN | MARKETING
HEI: Queen Margaret University
Domain: www.qmu.ac.uk
HEI: University of Reading
Domain: www.rdg.ac.uk
78
NETGEN | MARKETING
HEI: Royal college of Art
Domain: www.rca.ac.uk
HEI: Royal Northern College of Music
Domain: www.rncm.ac.uk
79
NETGEN | MARKETING
HEI: Queen's University Belfast
Domain: www.qub.ac.uk
HEI: Southampton Solent University
Domain: www.solent.ac.uk
80
NETGEN | MARKETING
HEI: Sheffield Hallam University
Domain: www.shu.ac.uk
HEI: Anglia Ruskin University
Domain: www.anglia.ac.uk
81
NETGEN | MARKETING
HEI: University College Birmingham
Domain: www.ucb.ac.uk
HEI: Thames Valley University
Domain: www.tvu.ac.uk
Appendix 4 Online Marketing Audit Report
82
NETGEN | MARKETING
Online Marketing Needs Analysis
NETGEN | MARKETING
NetGenMarketing.com
Marketing to the Net Generation
DATE: JULY 30, 2008
[email protected]
GENERAL
•
•
•
•
•
•
•
•
•
Could you provide more details on your business and your project?
What current online marketing channels are you using?
What are your results?
Have you ever used an online marketing/SEO company before?
What were the results?
What demographics are you trying to target?
Who are your main competitors?
What do they do better than you?
What do you do better then them?
•
•
•
•
How happy are you with your current search engine rankings?
What keywords would you like your site ranked for?
What keywords do you currently rank for?
In 4 months time, what 5 keywords would you like to be in the number
one position for?
•
•
•
•
•
Are you running a Pay Per Click campaign currently?
What return are you getting on your advertising spend?
Do you have conversion tracking set up?
What is your monthly PPC advertising Budget?
What is your monthly online marketing budget including agency fees?
•
What online marketing channels have you considered using for your
project? (Blogs, Viral marketing, Video etc.)
Do you currently blog for your organisation?
If not, do you have the time to dedicate to posting on a set schedule?
What role do you see NetGenMarketing.com playing in your online
marketing efforts?
SEO
PPC
Other
•
•
•
Misc
83
NETGEN | MARKETING
•
Please add any additional information you think is relevant to your
project below.
84
NETGEN | MARKETING
Appendix 5 Pay Per Click Report
Sample Monthly Google AdWords Campaign Management Report
Hi,
The Google AdWords campaign for College.com has been running from the 14th of July,
in this email I'll talk you through the results and actions undertaken last month. I will end
with proposed improvements and future strategies. I've attached a number of reports
within this email, which will provide you with more detailed statistics. You can access the
account anytime yourself to generate additional reports as well.
Account results
The account generated 333 clicks in the past month. Average position on which the
triggered Ads were displayed was 3.4. This means the Ads were displayed on the first
page of the Google Search Engine Results Page and above the fold, users could see
them without having to scroll. This resulted in a total number of 126507 Ad Impressions,
an additional form of free advertising which will most likely have a positive impact on
brand recognition of the College.com brand name.
Price per Click and Content Network
The average Cost Per Click was € 0.60. This is 35% lower then estimated and can be
considered low for your branch, where leads are valuable, budgets big and competition
high. The Click Through Rate last month was 0.26%, not particularly high but explainable
since the Content Network is set to display Ads from the Business School campaign.
I'm using the Content Network for the Business School campaign to reach a greater
number of prospects and exploit the recent change in Google's Trademark Policy. Ads in
the Content Network are being triggered by the content of the page they're displayed on.
I've decided to enable this option since search volume for brand names isn't extremely
high, but there is a huge number of articles (being) published online about Business and
College. We are currently displaying Ads at these pages.
Financial Reporting
We've spent € 198.52 last month, the majority (€ 153.38) was spend on the Business
85
NETGEN | MARKETING
School campaign, in line with the outlined campaign strategy. More information on
campaign level regarding Impressions, Click, CTR, Cost and Position can be found in
the attached Campaign Report.
Increasing the Quality Score
Minimum bids for relevant keywords in other campaigns are much higher then in the
Business School campaign, averaging about € 1.80 CPC. We are currently not bidding
this amount, the Business School campaign is attracting significant traffic already for a
reasonable price. However, I can decrease the minimum bids for the more mainstream
and competitive keywords by increasing the Quality Score of each keyword and include
them in the current campaign as well. I'll expand a little bit on this matter to clarify
Quality Score is a dynamic variable assigned to each of the keywords. It's calculated
using a variety of factors and measures how relevant the keyword is to the Ad text and to
a user's search query. Quality Score influences the Ads' position on Google and the
Google Network. It also determines the keywords' minimum bids. In general, the higher
the Quality Score, the better the Ad position and the lower the minimum bids. The
landing page (page on which the users arrives after clicking on an Ad) is an important
component of the Quality Score calculation.
We can improve the landing page quality by optimising the website per the Google
guidelines. These guidelines emphasise:
•
Relevant and Original Content
•
Transparency into the nature of the business, how the site interacts with a
visitor's computer and how you intend to use a visitor's personal information
•
Navigability, i.e. providing a short and easy path for a user to purchase or receive
the product or offer in the Ad
Especially in the area of "Relevant and Original Content" great improvements can be
made. For example, currently the "Services" page lists all the bank logos from which you
offer services. We use this page to land users clicking on any Ad in the Business School
campaign. This is working out fine for the moment, but could be refined to offer more
detailed and relevant information for the users, increasing conversions, improving the
86
NETGEN | MARKETING
Quality Score and therefore resulting in lower bids. E.g. A visitor clicking on a Post
Graduate course Ad could be landed on a page called "MECB", offering additional
information about this course, services offered and a clear point of conversion.
Keyword Report
I've attached a Keyword Report, offering insight in popular keywords. I will add more
keywords to the campaign like the ones found in the list below:
Computer corse
MBA
Masters course in Business
Marketing postgrad
A large number of people type in these web addresses in the Google search box, we
use this to our advantage by including these keywords in the campaign in an attempt to
capture clicks that would normally have gone to the organic search results. In my
experience, it's worth bidding for position 1 (that's the upper left Ad position, just above
the organic search results) for these "URL keywords", as long as you have a relevant
landing page available.
Further Action
I understood from Keith that there's an issue regarding colleagues in your industry and
our marketing services offered. I will meet with Keith tomorrow to discuss this matter in
detail. We would actually like to propose to meet with you once again. This would give us
the opportunity to answer any question related to the current campaign, discuss further
optimisation of the campaign and refine the marketing strategy together and come to an
agreement on the "industry issue".I hope the results reported meet your expectations.
Don't hesitate to get back to me in case of any questions! I'm looking forward to meet
with you again, please contact Keith to agree on a suitable date.
Best regards, NetGenMarketing.com
87
(12,912)
Cumulative P & L
245
780
2,750
2,000
550
11,862
5,000
538
5,538
(12,912)
6
7
8
9
10
4
5
(1,050)
1,050
1,050
Period P & L
Rent, Rates and Insurance
Other Office Costs
Professional Fees
Marketing
Depreciation
Bank Interest and Charges
Expenditure
Salaries
Employers PRSI
Gross Profit
Gross Margin
3
-
Total Sales
Training Fees and Commissions
-
1
M1
Sales
Web Development and Audit
Level 1
Level 2
Level 3
Online Advertising
Software services
Training Services
Monthly Fees
Projected Profit and Loss Account - Year 1 Notes
(20,460)
(7,548)
245
780
2,750
1,600
550
286
11,748
5,000
538
5,538
4,200
80%
1,050
1,050
5,250
5,250
-
M2
(4,111)
16,350
245
780
2,750
1,600
550
388
11,850
5,000
538
5,538
28,200
96%
1,050
1,050
29,250
24,000
5,250
-
M3
Appendix 6 Profit and Loss accounts by month
NETGEN | MARKETING
3,267
7,378
245
780
2,750
1,600
550
360
11,822
5,000
538
5,538
19,200
95%
1,050
1,050
20,250
5,000
6,100
5,250
-
M4
6,341
3,074
245
780
2,750
2,300
550
339
12,501
5,000
538
5,538
15,575
94%
1,050
1,050
16,625
3,050
5,250
2,700
M5
88
6,690
349
245
780
2,750
2,755
550
234
12,851
5,000
538
5,538
13,200
93%
1,050
1,050
14,250
5,250
4,500
M6
3,740
(2,950)
245
780
2,750
1,600
550
188
11,650
5,000
538
5,538
8,700
89%
1,050
1,050
9,750
5,250
4,500
M7
819
(2,921)
245
780
2,750
1,600
550
159
11,621
5,000
538
5,538
8,700
89%
1,050
1,050
9,750
5,250
4,500
M8
(2,100)
(2,918)
245
780
2,750
1,600
550
156
11,618
5,000
538
5,538
8,700
89%
1,050
1,050
9,750
5,250
4,500
M9
(5,038)
(2,938)
245
780
2,750
1,600
550
176
11,638
5,000
538
5,538
8,700
89%
1,050
1,050
9,750
5,250
4,500
M10
(7,996)
(2,958)
245
780
2,750
1,600
550
196
11,658
5,000
538
5,538
8,700
89%
1,050
1,050
9,750
5,250
4,500
M11
(11,874)
(3,878)
245
780
2,750
2,500
550
216
12,578
5,000
538
5,538
8,700
89%
1,050
1,050
9,750
5,250
4,500
M12
(11,874)
(11,874)
2,940
9,360
33,000
22,355
6,597
2,697
143,399
60,000
6,450
66,450
131,525
91%
12,600
12,600
144,125
24,000
5,000
9,150
57,750
34,200
Total
(4,621)
Cumulative P & L
1,500
1,950
2,250
2,600
895
243
23,097
12,333
1,326
13,659
30,350
97%
1,050
1,050
7,253
6
7
8
9
10
4
5
3
Period P & L
Rent, Rates and Insurance
Other Office Costs
Professional Fees
Marketing
Depreciation
Bank Interest and Charges
Expenditure
Salaries
Employers PRSI
Gross Profit
Gross Margin
Training Commissions
31,400
Total Sales
M13
12,500
9,150
5,250
4,500
1
Notes
Sales
Web Development
Level 1
Level 2
Level 3
Online Advertising Services
Software Services
Training Services
Management Services
Projected Profit and Loss Account - Year 2
NETGEN | MARKETING
5,130
9,751
1,500
1,950
2,250
2,200
895
495
22,949
12,333
1,326
13,659
32,700
97%
1,050
1,050
39,541
34,411
1,500
2,340
2,250
2,200
822
534
25,889
14,666
1,577
16,243
60,300
98%
1,050
1,050
61,350
6,100
4,500
5,250
4,500
5,250
4,500
33,750
16,000
-
M15
24,000
-
M14
55,153
15,613
1,500
2,340
2,250
2,200
822
482
25,837
14,666
1,577
16,243
41,450
98%
1,050
1,050
42,500
6,100
10,050
5,250
8,100
8,000
5,000
-
M16
-
49,647
(5,506)
1,500
2,340
2,250
3,300
822
326
26,781
14,666
1,577
16,243
21,275
95%
1,050
1,050
22,325
3,050
4,125
5,250
9,900
M17
89
-
45,859
(3,788)
1,500
2,340
2,250
2,955
1,097
103
26,488
14,666
1,577
16,243
22,700
96%
1,050
1,050
23,750
3,050
3,750
5,250
11,700
M18
-
47,689
1,830
1,500
2,340
2,250
2,200
1,317
120
25,970
14,666
1,577
16,243
27,800
93%
2,100
2,100
29,900
3,050
3,750
10,500
12,600
M19
-
42,620
(5,069)
1,500
2,340
2,250
2,200
1,317
218
26,069
14,666
1,577
16,243
21,000
91%
2,100
2,100
23,100
10,500
12,600
M20
-
37,546
(5,074)
1,500
2,340
2,250
2,200
1,317
224
26,074
14,666
1,577
16,243
21,000
91%
2,100
2,100
23,100
10,500
12,600
M21
-
32,075
(5,471)
1,500
2,340
2,250
2,600
1,317
221
26,471
14,666
1,577
16,243
21,000
91%
2,100
2,100
23,100
10,500
12,600
M22
-
26,969
(5,106)
1,500
2,340
2,250
2,200
1,317
256
26,106
14,666
1,577
16,243
21,000
91%
2,100
2,100
23,100
10,500
12,600
M23
-
22,116
(4,853)
1,500
2,340
2,250
3,100
133
287
25,853
14,666
1,577
16,243
21,000
91%
2,100
2,100
23,100
10,500
12,600
M24
22,116
33,990
18,000
27,300
27,000
29,955
12,073
3,510
307,585
171,329
18,418
189,747
341,575
95%
18,900
18,900
360,475
30,500
26,175
94,500
118,800
48,000
5,000
12,500
Total
72,525
Cumulative P & L
1,750
3,520
2,583
4,400
1,960
410
41,942
24,666
2,652
27,318
92,350
98%
2,100
2,100
50,408
6
7
8
9
10
4
5
3
Period P & L
Rent, Rates and Insurance
Other Office Costs
Professional Fees
Marketing
Depreciation
Bank Interest and Charges
Expenditure
Salaries
Employers PRSI
Gross Profit
Gross Margin
Training Commissions
94,450
Total Sales
M25
16,000
5,000
12,500
25,000
6,100
6,750
10,500
12,600
1
Notes
Sales
Web Development and Audit
Level 1
Level 2
Level 3
Online Advertising
Software Services
Training Services
Management Fee
Projected Profit and Loss Account - Year 3
139,792
67,267
1,750
3,520
2,583
3,900
1,960
701
41,733
24,666
2,652
27,318
109,000
98%
2,100
2,100
111,100
24,000
12,500
25,000
15,250
6,750
10,500
17,100
M26
NETGEN | MARKETING
190,840
51,049
1,750
3,520
2,583
3,900
1,960
620
41,651
24,666
2,652
27,318
92,700
98%
2,100
2,100
94,800
8,000
5,000
25,000
15,250
6,750
10,500
24,300
M27
276,583
85,743
1,750
3,520
2,583
3,900
1,960
125
41,157
24,666
2,652
27,318
126,900
98%
2,100
2,100
129,000
40,000
25,000
15,250
6,750
10,500
31,500
M28
338,904
62,320
1,750
3,520
2,583
5,100
1,960
(402)
41,830
24,666
2,652
27,318
104,150
98%
2,100
2,100
106,250
32,000
18,300
6,750
10,500
38,700
M29
90
368,773
29,870
1,750
3,520
2,583
4,655
1,960
(956)
40,830
24,666
2,652
27,318
70,700
97%
2,100
2,100
72,800
12,200
6,000
10,500
44,100
M30
393,030
24,257
1,750
3,520
2,583
3,900
1,960
(1,614)
39,418
24,666
2,652
27,318
63,675
95%
3,150
3,150
66,825
3,375
15,750
47,700
M31
417,573
24,543
1,750
3,520
2,583
3,900
1,960
(2,049)
38,982
24,666
2,652
27,318
63,525
95%
3,150
3,150
66,675
3,225
15,750
47,700
M32
440,592
23,018
1,750
3,520
2,583
3,900
1,960
41,032
24,666
2,652
27,318
64,050
95%
3,150
3,150
67,200
3,750
15,750
47,700
M33
463,110
22,518
1,750
3,520
2,583
4,400
1,960
41,532
24,666
2,652
27,318
64,050
95%
3,150
3,150
67,200
3,750
15,750
47,700
M34
486,128
23,018
1,750
3,520
2,583
3,900
1,960
41,032
24,666
2,652
27,318
64,050
95%
3,150
3,150
67,200
3,750
15,750
47,700
M35
507,972
21,843
1,750
3,520
2,583
4,800
2,235
42,207
24,666
2,652
27,318
64,050
95%
3,150
3,150
67,200
3,750
15,750
47,700
M36
507,972
485,855
21,000
42,240
31,000
50,655
23,799
(3,165)
493,345
295,996
31,820
327,816
979,200
97%
31,500
31,500
1,010,700
120,000
10,000
25,000
100,000
82,350
61,350
157,500
454,500
Total
-
(34,313)
Cumulative Inflow/(Outflow)
21,950
1,050
5,000
538
245
780
2,750
2,000
34,313
M1
(34,313)
11
3
4
5
6
7
8
9
1
40%
60%
Notes
Period Inflow/Outflow)
Outflows
Fixed Assets
Licensing Fees and Commissions
Salaries
Employers PRSI
Rent, Rates & Insurance
Other Office Costs
Professional Fees
Marketing
Bank Interest and Charges
Total
Inflows
Debtors
30 Days
60 Days
Total
Cash Flow Projected - 2009
-
(46,561)
(12,248)
1,050
5,000
538
245
780
2,750
1,600
286
12,248
M2
(43,201)
3,359
1,050
5,000
538
245
780
2,750
1,600
388
12,351
12,560
3,150
15,710
M3
Appendix 7 Projected Cash-Flow by month
NETGEN | MARKETING
(40,674)
2,527
1,050
5,000
538
245
780
2,750
1,600
360
12,323
11,700
3,150
14,850
M4
(28,025)
12,649
1,050
5,000
538
245
780
2,750
2,300
339
13,001
8,100
17,550
25,650
M5
91
(22,576)
5,449
1,050
5,000
538
245
780
2,750
2,755
234
13,351
6,650
12,150
18,800
M6
(19,052)
3,524
1,050
5,000
538
245
780
2,750
1,600
188
12,151
5,700
9,975
15,675
M7
(18,723)
329
1,050
5,000
538
245
780
2,750
1,600
159
12,121
3,900
8,550
12,450
M8
(21,092)
(2,369)
1,050
5,000
538
245
780
2,750
1,600
156
12,119
3,900
5,850
9,750
M9
(23,480)
(2,388)
1,050
5,000
538
245
780
2,750
1,600
176
12,138
3,900
5,850
9,750
M10
(25,888)
(2,408)
1,050
5,000
538
245
780
2,750
1,600
196
12,158
3,900
5,850
9,750
M11
(29,217)
(3,328)
1,050
5,000
538
245
780
2,750
2,500
216
13,078
3,900
5,850
9,750
M12
(29,217)
(29,217)
21,950
12,600
60,000
6,450
2,940
9,360
33,000
22,355
2,697
171,352
64,210
77,925
142,135
Total
(84,145)
Cumulative Inflow/(Outflow)
15,970
2,100
24,666
2,652
1,750
3,520
2,583
4,400
410
58,051
9,240
13,860
23,100
(34,951)
11
3
4
5
6
7
8
9
1
40%
60%
Period Inflow/Outflow)
Outflows
Fixed Assets
Licensing Fees and Commissions
Salaries
Employers PRSI
Rent, Rates & Insurance
Other Office Costs
Professional Fees
Marketing
Bank Interest and Charges
Total
Inflows
Debtors
30 Days
60 Days
Total
M25
Cash Flow Projected - 2011
Notes
(59,399)
Cumulative Inflow/(Outflow)
16,680
1,050
12,333
1,326
1,500
1,950
2,250
2,600
243
39,932
3,900
5,850
9,750
M13
(30,182)
11
3
4
5
6
7
8
9
1
40%
60%
Notes
Period Inflow/Outflow)
Outflows
Fixed Assets
Licensing Fees and Commissions
Salaries
Employers PRSI
Rent, Rates & Insurance
Other Office Costs
Professional Fees
Marketing
Bank Interest and Charges
Total
Inflows
Debtors
30 Days
60 Days
Total
Cash Flow Projected - 2010
(74,377)
9,767
2,100
24,666
2,652
1,750
3,520
2,583
3,900
701
41,873
37,780
13,860
51,640
M26
(64,093)
(4,694)
1,050
12,333
1,326
1,500
1,950
2,250
2,200
495
23,104
12,560
5,850
18,410
M14
NETGEN | MARKETING
(15,058)
59,319
2,100
24,666
2,652
1,750
3,520
2,583
3,900
620
41,791
44,440
56,670
101,110
M27
(57,870)
6,223
1,050
14,666
1,577
1,500
2,340
2,250
2,200
534
26,117
13,500
18,840
32,340
M15
48,225
63,283
2,100
24,666
2,652
1,750
3,520
2,583
3,900
125
41,297
37,920
66,660
104,580
M28
(39,145)
18,725
1,050
14,666
1,577
1,500
2,340
2,250
2,200
482
26,065
24,540
20,250
44,790
M16
114,735
66,511
2,100
24,666
2,652
1,750
3,520
2,583
5,100
(402)
41,969
51,600
56,880
108,480
M29
(12,344)
26,801
1,050
14,666
1,577
1,500
2,340
2,250
3,300
326
27,009
17,000
36,810
53,810
M17
92
193,665
78,930
2,100
24,666
2,652
1,750
3,520
2,583
4,655
(956)
40,970
42,500
77,400
119,900
M30
(14,355)
(2,011)
10,000
1,050
14,666
1,577
1,500
2,340
2,250
2,955
103
36,441
8,930
25,500
34,430
M18
245,928
52,263
3,150
24,666
2,652
1,750
3,520
2,583
3,900
(1,614)
40,607
29,120
63,750
92,870
M31
(26,212)
(11,858)
8,000
2,100
14,666
1,577
1,500
2,340
2,250
2,200
120
34,753
9,500
13,395
22,895
M19
276,166
30,238
3,150
24,666
2,652
1,750
3,520
2,583
3,900
(2,049)
40,172
26,730
43,680
70,410
M32
(26,854)
(641)
2,100
14,666
1,577
1,500
2,340
2,250
2,200
218
26,851
11,960
14,250
26,210
M20
300,710
24,544
3,150
24,666
2,652
1,750
3,520
2,583
3,900
42,221
26,670
40,095
66,765
M33
(26,531)
323
2,100
14,666
1,577
1,500
2,340
2,250
2,200
224
26,857
9,240
17,940
27,180
M21
324,873
24,164
3,150
24,666
2,652
1,750
3,520
2,583
4,400
42,721
26,880
40,005
66,885
M34
(30,685)
(4,154)
2,100
14,666
1,577
1,500
2,340
2,250
2,600
221
27,254
9,240
13,860
23,100
M22
349,852
24,979
3,150
24,666
2,652
1,750
3,520
2,583
3,900
42,221
26,880
40,320
67,200
M35
(34,473)
(3,789)
2,100
14,666
1,577
1,500
2,340
2,250
2,200
256
26,889
9,240
13,860
23,100
M23
363,931
14,079
10,000
3,150
24,666
2,652
1,750
3,520
2,583
4,800
53,121
26,880
40,320
67,200
M36
(49,194)
(14,720)
10,000
2,100
14,666
1,577
1,500
2,340
2,250
3,100
287
37,820
9,240
13,860
23,100
M24
363,931
413,124
25,970
31,500
295,996
31,820
21,000
42,240
31,000
50,655
(3,165)
527,016
386,640
553,500
940,140
Total
(49,194)
(19,977)
44,680
18,900
171,329
18,418
18,000
27,300
27,000
29,955
3,510
359,092
138,850
200,265
339,115
Total
Capital Reserves
- Share Capital
- Profit and Loss A/C
(20,460)
(20,460)
(12,912)
(20,460)
(41,311)
46,561
46,561
5,250
5,250
19,140
2,810
1,100
20,850
M2
(12,912)
(12,912)
Total Assets
Creditors (Due after 1 yr.)
Loan Capital
Trade Creditors
(34,313)
34,313
34,313
-
19,140
2,810
550
21,400
M1
Net Current Assets
Creditors (Due within 1 yr.)
- Creditors
- Bank Overdraft
Current Assets
- Debtors
- Cash at Bank
11
Fixed Assets
- Hardware and Software
- Office Equipment
- Accum. Depreciation
- Net Book Value
10
Notes
Balance Sheet - Year 1
Appendix 8 Balance Sheet by Month
NETGEN | MARKETING
(4,111)
(4,111)
(4,111)
(24,411)
43,201
43,201
18,790
18,790
19,140
2,810
1,649
20,301
M3
3,267
3,267
3,267
(16,484)
40,674
40,674
24,190
24,190
19,140
2,810
2,199
19,751
M4
6,341
6,341
6,341
(12,860)
28,025
28,025
15,165
15,165
19,140
2,810
2,749
19,201
M5
93
6,690
6,690
6,690
(11,961)
22,576
22,576
10,615
10,615
19,140
2,810
3,299
18,651
M6
3,740
3,740
3,740
(14,362)
19,052
19,052
4,690
4,690
19,140
2,810
3,848
18,102
M7
819
819
819
(16,733)
18,723
18,723
1,990
1,990
19,140
2,810
4,398
17,552
M8
(2,100)
(2,100)
(2,100)
(19,102)
21,092
21,092
1,990
1,990
19,140
2,810
4,948
17,002
M9
(5,038)
(5,038)
(5,038)
(21,490)
23,480
23,480
1,990
1,990
19,140
2,810
5,498
16,452
M10
(7,996)
(7,996)
(7,996)
(23,898)
25,888
25,888
1,990
1,990
19,140
2,810
6,047
15,903
M11
(11,874)
(11,874)
(11,874)
(27,227)
29,217
29,217
1,990
1,990
19,140
2,810
6,597
15,353
M12
(11,874)
(11,874)
(11,874)
(27,227)
29,217
29,217
1,990
1,990
19,140
2,810
6,597
15,353
Total
Capital Reserves
- Share Capital
- Profit and Loss A/C
Creditors (Due after 1 yr.)
Loan Capital
Trade Creditors
Total Assets
Net Current Assets
Creditors (Due within 1 yr.)
- Creditors
- Bank Overdraft
Current Assets
- Debtors
- Cash at Bank
11
Fixed Assets
- Hardware and Software
- Office Equipment
- Accum. Depreciation
- Net Book Value
10
Notes
Balance Sheet - Year 2
5,130
5,130
(4,621)
5,130
(4,621)
(4,621)
(25,113)
64,093
64,093
38,980
38,980
29,900
8,730
8,387
30,243
M14
(35,759)
59,399
59,399
23,640
23,640
29,900
8,730
7,492
31,138
M13
NETGEN | MARKETING
39,541
39,541
39,541
10,120
57,870
57,870
67,990
67,990
29,900
8,730
9,209
29,421
M15
55,153
55,153
55,153
26,555
39,145
39,145
65,700
65,700
29,900
8,730
10,032
28,598
M16
49,647
49,647
49,647
21,871
12,344
12,344
34,215
34,215
29,900
8,730
10,854
27,776
M17
94
45,859
45,859
45,859
9,180
14,355
14,355
23,535
23,535
39,900
8,730
11,951
36,679
M18
47,689
47,689
47,689
4,328
26,212
26,212
30,540
30,540
47,900
8,730
13,268
43,362
M19
42,620
42,620
42,620
576
26,854
26,854
27,430
27,430
47,900
8,730
14,586
42,044
M20
37,546
37,546
37,546
(3,181)
26,531
26,531
23,350
23,350
47,900
8,730
15,903
40,727
M21
32,075
32,075
32,075
(7,335)
30,685
30,685
23,350
23,350
47,900
8,730
17,220
39,410
M22
26,969
26,969
26,969
(11,123)
34,473
34,473
23,350
23,350
47,900
8,730
18,537
38,093
M23
22,116
22,116
22,116
(25,844)
49,194
49,194
23,350
23,350
57,900
8,730
18,670
47,960
M24
22,116
22,116
22,116
(25,844)
49,194
49,194
23,350
23,350
57,900
8,730
18,670
47,960
Total
Capital Reserves
- Share Capital
- Profit and Loss A/C
Creditors (Due after 1 yr.)
Loan Capital
Trade Creditors
72,525
Total Assets
139,792
139,792
72,525
72,525
139,792
79,783
10,555
Net Current Assets
154,160
154,160
70,160
12,440
22,591
60,009
M26
74,377
74,377
94,700
94,700
70,160
12,440
20,630
61,970
M25
84,145
84,145
Creditors (Due within 1 yr.)
- Creditors
- Bank Overdraft
Current Assets
- Debtors
- Cash at Bank
11
Fixed Assets
- Hardware and Software
- Office Equipment
- Accum. Depreciation
- Net Book Value
10
Notes
Balance Sheet - Year 3
NETGEN | MARKETING
190,840
190,840
190,840
132,792
15,058
15,058
147,850
147,850
70,160
12,440
24,551
58,049
M27
276,583
276,583
276,583
220,495
(48,225)
(48,225)
172,270
172,270
70,160
12,440
26,511
56,089
M28
338,904
338,904
338,904
284,775
(114,735)
(114,735)
170,040
170,040
70,160
12,440
28,472
54,128
M29
95
368,773
368,773
368,773
316,605
(193,665)
(193,665)
122,940
122,940
70,160
12,440
30,432
52,168
M30
393,030
393,030
393,030
342,823
(245,928)
(245,928)
96,895
96,895
70,160
12,440
32,392
50,208
M31
417,573
417,573
417,573
369,326
(276,166)
(276,166)
93,160
93,160
70,160
12,440
34,353
48,247
M32
440,592
440,592
440,592
394,305
(300,710)
(300,710)
93,595
93,595
70,160
12,440
36,313
46,287
M33
463,110
463,110
463,110
418,783
(324,873)
(324,873)
93,910
93,910
70,160
12,440
38,273
44,327
M34
486,128
486,128
486,128
443,762
(349,852)
(349,852)
93,910
93,910
70,160
12,440
40,234
42,366
M35
507,972
507,972
507,972
457,841
(363,931)
(363,931)
93,910
93,910
80,160
12,440
42,469
50,131
M36
507,972
507,972
507,972
457,841
(363,931)
(363,931)
93,910
93,910
80,160
12,440
42,469
50,131
Total
8,000
5,000
12,500
25,000
-
M2
900
Monthly Management Fees
Total
525
75
3,050
Training Programes Per Person
Software Services Per Hour
Online Advertising
-
-
-
-
-
-
-
Web Development & Audit
Level 1
Level 2
Level 3
-
Customers
Training Programes (10 customers per class)
Monthly Management Fees
Hrs
Software Development Services Per Hour
5,250
-
5,250
-
-
-
-
10
-
M1
Online Advertising Package
Unit
-
Notes
Web Development & Audit
Level 1
Level 2
Level 3
Sales Estimates Year 1
Appendix 9 Projected Sales by Month
NETGEN | MARKETING
-
10
-
3
29,250
-
5,250
-
-
24,000
M3
-
10
52
2
-
20,250
-
5,250
3,900
6,100
5,000
M4
-
3
10
75
1
-
96
16,625
2,700
5,250
5,625
3,050
M5
-
-
5
10
60
-
-
14,250
4,500
5,250
4,500
M6
-
-
-
5
10
-
-
-
9,750
4,500
5,250
M7
-
-
-
5
10
-
-
9,750
4,500
5,250
M8
-
-
-
5
10
-
-
9,750
4,500
5,250
M9
-
-
-
5
10
-
-
-
9,750
4,500
5,250
M10
-
-
-
5
10
-
-
-
9,750
4,500
5,250
M11
-
-
-
5
10
-
-
-
9,750
4,500
5,250
M12
3
3
144,125
34,200
57,750
14,025
9,150
24,000
5,000
38
110
187
Total
8,000
5,000
12,500
25,000
2
900
Monthly Management Fees
Total
525
75
3,050
Training Programes per person
Software Services Per Hour
Online Advertising
31,400
4,500
5,250
-
9,150
12,500
-
Web Development & Audit
Level 1
Level 2
Level 3
10
5
Customers
Training Programes (10 customers per class)
Monthly Management Fees
Hours
Software Development Services Per Hour
33,750
4,500
5,250
-
-
24,000
5
10
-
61,350
4,500
5,250
4,500
6,100
25,000
16,000
5
10
60
2
M3
-
3
M2
Online Advertising Package
M1
1
Unit
3
Notes
Web Development & Audit
Level 1
Level 2
Level 3
Sales Estimates Year 2
NETGEN | MARKETING
9
10
134
2
1
1
42,500
8,100
5,250
10,050
6,100
8,000
5,000
M4
-
11
10
55
1
2
97
22,325
9,900
5,250
4,125
3,050
M5
-
13
10
50
1
1
23,750
11,700
5,250
3,750
3,050
M6
-
14
20
50
1
-
29,900
12,600
10,500
3,750
3,050
M7
-
-
-
14
20
-
-
23,100
12,600
10,500
M8
-
-
-
14
20
-
-
23,100
12,600
10,500
M9
-
-
-
14
20
-
-
-
23,100
12,600
10,500
M10
-
-
-
14
20
-
-
-
23,100
12,600
10,500
M11
-
-
-
14
20
-
-
-
23,100
12,600
10,500
M12
132
180
349
10
9
360,475
118,800
94,500
26,175
30,500
48,000
5,000
12,500
25,000
Total
8,000
5,000
12,500
25,000
900
Monthly Management Fees
Total
525
75
Training Programes Per Person
Software Services Per Hour
3,050
94,450
12,600
10,500
6,750
6,100
16,000
5,000
12,500
25,000
Web Development & Audit
Level 1
Level 2
Level 3
Online Advertising
14
20
90
Monthly Management Fees
Hours
Customers
Software Development Services Per Hour
Training Programes (10 customers per class)
2
M1
Online Advertising Customers
Unit
2
2
1
1
Notes
Web Development & Audit
Level 1
Level 2
Level 3
Sales Estimates Year 3
NETGEN | MARKETING
19
20
90
5
2
1
3
111,100
17,100
10,500
6,750
15,250
12,500
25,000
24,000
M2
27
20
90
5
1
1
1
94,800
24,300
10,500
6,750
15,250
25,000
8,000
5,000
M3
35
20
90
5
1
5
129,000
31,500
10,500
6,750
15,250
25,000
40,000
M4
43
20
90
6
4
98
106,250
38,700
10,500
6,750
18,300
32,000
M5
-
49
20
80
4
-
72,800
44,100
10,500
6,000
12,200
M6
-
-
53
30
45
-
-
66,825
47,700
15,750
3,375
M7
-
-
53
30
43
-
-
66,675
47,700
15,750
3,225
M8
-
-
53
30
50
-
-
67,200
47,700
15,750
3,750
M9
-
-
53
30
50
-
-
67,200
47,700
15,750
3,750
M10
-
-
53
30
50
-
-
67,200
47,700
15,750
3,750
M11
-
-
53
30
50
-
-
67,200
47,700
15,750
3,750
M12
505
300
818
27
15
1,010,700
454,500
157,500
61,350
82,350
120,000
10,000
25,000
100,000
Total
Total
Training Fees
Cost of Sales Year 3
Total
Training Fees
Cost of Sales Year 2
Total
Training Fees
Cost of Sales Year 1
Note 3 - Cost of Sales
20%
Rate
20%
Rate
20%
Rate
31,500
31,500
Total
18,900
18,900
Total
11,550
11,550
Total
Appendix 10 Cost of Sales
2,100
2,100
M25
1,050
1,050
M13
1,050
1,050
M1
NETGEN | MARKETING
2,100
2,100
M26
1,050
1,050
M14
1,050
1,050
M2
2,100
2,100
M27
1,050
1,050
M15
1,050
1,050
M3
2,100
2,100
M28
1,050
1,050
M16
1,050
1,050
M4
99
2,100
2,100
M29
1,050
1,050
M17
1,050
1,050
M5
2,100
2,100
M30
1,050
1,050
M18
1,050
1,050
M6
3,150
3,150
M31
2,100
2,100
M19
1,050
1,050
M7
3,150
3,150
M32
2,100
2,100
M20
1,050
1,050
M8
3,150
3,150
M33
2,100
2,100
M21
1,050
1,050
M9
3,150
3,150
M34
2,100
2,100
M22
1,050
1,050
M10
3,150
3,150
M35
2,100
2,100
M23
1,050
1,050
M11
3,150
3,150
M36
2,100
2,100
M24
1,050
1,050
M12
Total Headcount
Headcount
Director (Managing)
Director (Technical)
Marketing Executives
Researcher
Software Engineer/Web Developer
Customer Support/Admin
Salaries 2005
Total Headcount
Headcount
Director (Managing) Keith
Director (Technical) Polle
Marketing Executives
Researcher
Software Engineer/Web Developer
Customer Support/Admin
Salaries Year 1
30,000
30,000
-
Gross p.a.
30,000
30,000
-
Gross p.a.
Appendix 11 Salaries by Year
60,000
30,000
30,000
-
2,500
2,500
-
60,000
30,000
30,000
-
Gross p.m. Total Costs
2,500
2,500
-
Gross p.m. Total Costs
NETGEN | MARKETING
5,000
-
-
5,000
2,500
2,500
-
4
1
-
1
-
4
1
1
1
1
1
1
M2
M2
2,500
2,500
-
M1
M1
4
1
-
1
1
1
100
5,000
-
2,500
2,500
-
M3
M3
4
1
-
1.0
1.0
1
5,000
-
2,500
2,500
-
M4
M4
5,000
-
2,500
2,500
-
M5
4
1
-
1.0
1.0
1
M5
5,000
-
2,500
2,500
-
M6
4
1
-
1.0
1.0
1
M6
4
1
-
1
1
1
5,000
-
2,500
2,500
-
M7
M7
4
1
-
1
1
1
5,000
-
2,500
2,500
-
M8
M8
4
1
-
1
1
1
5,000
-
2,500
2,500
-
M9
M9
5,000
-
2,500
2,500
-
M10
4
1
-
1
1
1
M10
4
1
-
1
1
1
5,000
-
2,500
2,500
-
M11
M11
4
1
-
1
1
1
5,000
-
2,500
2,500
-
M12
M12
Total Headcount
Headcount
Director (Managing)
Director (Technical)
Marketing Executives
Researcher
Software Engineer/Web Developer
Customer Support/Admin
Salaries 2006
Total Headcount
Headcount
Director (Managing)
Director (Technical)
Marketing Executives
Researcher
Software Engineer/Web Developer
Customer Support/Admin
Salaries Year 2
35,000
35,000
28,000
25,000
25,000
-
Gross p.a.
35,000
35,000
28,000
25,000
25,000
-
Gross p.a.
2,917
2,917
2,333
2,083
2,083
-
Gross p.m.
2,917
2,917
2,333
2,083
2,083
-
Gross p.m.
NETGEN | MARKETING
171,333
35,000
35,000
51,333
25,000
25,000
-
Total Costs
171,333
35,000
35,000
51,333
25,000
25,000
-
Total Costs
5
1
1
1
1
1
-
12,333
2,917
2,917
2,333
2,083
2,083
-
M1
M13
5
1
1
1
1
1
-
12,333
2,917
2,917
2,333
2,083
2,083
-
M2
M14
6
1
1
2
1
1
-
101
14,666
2,917
2,917
4,667
2,083
2,083
-
M3
M15
6
1
1
2
1
1
-
14,666
2,917
2,917
4,667
2,083
2,083
-
M4
M16
6
1
1
2
1
1
-
14,666
2,917
2,917
4,667
2,083
2,083
-
M5
M17
6
1
1
2
1
1
-
14,666
2,917
2,917
4,667
2,083
2,083
-
M6
M18
6
1
1
2
1
1
-
14,666
2,917
2,917
4,667
2,083
2,083
-
M7
M19
6
1
1
2
1
1
-
14,666
2,917
2,917
4,667
2,083
2,083
-
M8
M20
6
1
1
2
1
1
-
14,666
2,917
2,917
4,667
2,083
2,083
-
M9
M21
6
1
1
2
1
1
-
14,666
2,917
2,917
4,667
2,083
2,083
-
M10
M22
6
1
1
2
1
1
-
14,666
2,917
2,917
4,667
2,083
2,083
-
M11
M23
6
1
1
2
1
1
-
14,666
2,917
2,917
4,667
2,083
2,083
-
M12
M24
3,333
3,333
2,667
2,667
2,667
2,000
264,000
40,000
40,000
64,000
32,000
64,000
24,000
40,000
40,000
32,000
32,000
32,000
24,000
3,333
3,333
2,667
2,667
2,667
2,000
264,000
40,000
40,000
64,000
32,000
64,000
24,000
Gross p.a.Gross p.m. Total Costs
40,000
40,000
32,000
32,000
32,000
24,000
Gross p.a.Gross p.m. Total Costs
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M25
M25
Appendix 12 Rents, Rates and Insurance by Month
Total Headcount
Headcount
Director (Managing)
Director (Technical)
Marketing Executives
Researcher
Software Engineer/Web Developer
Customer Support/Admin
Salaries 2006
Total Headcount
Headcount
Director (Managing) Keith
Director (Technical) Polle
Marketing Executives
Researcher
Software Engineer/Web Developer
Customer Support/Admin
Salaries Year 3
NETGEN | MARKETING
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M26
M26
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M27
M27
8
1
1
2
1
2
1
102
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M28
M28
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M29
M29
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M30
M30
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M31
M31
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M32
M32
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M33
M33
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M34
M34
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M35
M35
8
1
1
2
1
2
1
24,666
3,333
3,333
5,333
5,333
5,333
2,000
M36
M36
21,000
10%
Insurance (as a % of Rent)
Total Rent, Rates & Insurance
15%
Rates (as a % of Rent)
1,400
Notes
Rent & Rates & Insurance Year 3
Rent
Virtual Office Rent
18,000
10%
Insurance (as a % of Rent)
Total Rent, Rates & Insurance
15%
1,200
Notes
2,940
Rates (as a % of Rent)
Rent (Dublin 2)
Virtual Office Rent
Rent & Rates & Insurance Year 2
Total Rent, Rates & Insurance
10%
Insurance (as a % of Rent)
-
15%
Notes
Rates (as a % of Rent)
Rent (Home office)
Virtual Office Rent (Dublin 2)
Rent, Rates & Insurance Year 1
1,750
140
210
1,400
1,400
M25
1,500
120
180
1,200
1,200
M13
245
-
-
245
245
M1
NETGEN | MARKETING
1,750
140
210
1,400
1,400
M26
1,500
120
180
1,200
1,200
M14
245
-
-
245
245
M2
1,750
140
210
1,400
1,400
M27
1,500
120
180
1,200
1,200
M15
245
-
-
245
245
M3
1,750
140
210
1,400
1,400
M28
1,500
120
180
1,200
1,200
M16
245
-
-
245
245
M4
1,750
140
210
1,400
1,400
M30
1,500
120
180
1,200
1,200
M18
245
-
-
245
245
M6
103
1,750
140
210
1,400
1,400
M29
1,500
120
180
1,200
1,200
M17
245
-
-
245
245
M5
1,750
140
210
1,400
1,400
M31
1,500
120
180
1,200
1,200
M19
245
-
-
245
245
M7
1,750
140
210
1,400
1,400
M32
1,500
120
180
1,200
1,200
M20
245
-
-
245
245
M8
245
-
-
245
245
1,750
140
210
1,400
1,400
M33
1,500
120
180
1,200
1,200
M21
M9
1,750
140
210
1,400
1,400
M34
1,500
120
180
1,200
1,200
M22
245
-
-
245
245
M10
1,750
140
210
1,400
1,400
M35
1,500
120
180
1,200
1,200
M23
245
-
-
245
245
M11
1,750
140
210
1,400
1,400
M36
1,500
120
180
1,200
1,200
M24
245
-
-
245
245
M12
Total
Telephone & Fax
Printing & Stationery
Sundry
Other Office Costs Per Head Year 3
Total
Telephone & Fax
Printing & Stationery
Sundry
Other Office Costs Per Head Year 2
Total
Telephone & Fax
Printing & Stationery
Sundry
Other Office Costs Per Head Year 1
Appendix 13 Office Costs
250
150
40
Per Month
Per Person
210
150
30
Per Month
Per Person
100
75
20
Per Month
Per Person
42,240
24,000
14,400
3,840
Total
27,300
14,700
10,500
2,100
Total
9,360
4,800
3,600
960
Total
NETGEN | MARKETING
3,520
2,000
1,200
320
M25
1,950
1,050
750
150
M13
780
400
300
80
M1
3,520
2,000
1,200
320
M26
1,950
1,050
750
150
M14
780
400
300
80
M2
3,520
2,000
1,200
320
M27
2,340
1,260
900
180
M15
780
400
300
80
M3
104
3,520
2,000
1,200
320
M28
2,340
1,260
900
180
M16
780
400
300
80
M4
3,520
2,000
1,200
320
M29
2,340
1,260
900
180
M17
780
400
300
80
M5
3,520
2,000
1,200
320
M30
2,340
1,260
900
180
M18
780
400
300
80
M6
3,520
2,000
1,200
320
M31
2,340
1,260
900
180
M19
780
400
300
80
M7
3,520
2,000
1,200
320
M32
2,340
1,260
900
180
M20
780
400
300
80
M8
3,520
2,000
1,200
320
M33
2,340
1,260
900
180
M21
780
400
300
80
M9
3,520
2,000
1,200
320
M34
2,340
1,260
900
180
M22
780
400
300
80
M10
3,520
2,000
1,200
320
M35
2,340
1,260
900
180
M23
780
400
300
80
M11
3,520
2,000
1,200
320
M36
2,340
1,260
900
180
M24
780
400
300
80
M12
M2
M3
M4
M5
50,655
Total Marketing Cost
Total Cost
9,600
2,355
1,500
32,400
4,800
Notes
Online Advertising
Conferences
Direct Mail
Travel and Accommodation
Other Costs
Marketing Year 3
29,955
Total Marketing Cost
Total Cost
6,000
2,355
1,200
18,000
2,400
Notes
Online Advertising
Conference (UUK, GradIre, GRAD)
Direct Mail
Travel and Accommodation
Other Costs
Marketing Year 2
22,355
Total Marketing Cost
Total Cost
3,600
2,355
800
14,400
1,200
Notes
Online Advertising (Adwords/Banner)
Conferences
Direct Mail
Travel & Accommodation
Other Costs
Marketing Year 1
4,400
800
500
2,700
400
M25
2,600
500
400
1,500
200
M13
2,000
300
400
1,200
100
M1
3,900
800
2,700
400
M26
2,200
500
1,500
200
M14
1,600
300
1,200
100
3,900
800
2,700
400
M27
2,200
500
1,500
200
M15
1,600
300
1,200
100
105
3,900
800
2,700
400
M28
2,200
500
1,500
200
M16
1,600
300
1,200
100
5,100
800
700
500
2,700
400
M29
3,300
500
700
400
1,500
200
M17
2,300
300
700
1,200
100
4,655
800
755
2,700
400
M30
2,955
500
755
1,500
200
M18
2,755
300
755
400
1,200
100
M6
15,000
18,000
33,000
DSS Development
Professional Fees
Total
Appendix 15 Marketing Costs By Month
Year 1
Professional Fees
Appendix 14 Professional Fees
NETGEN | MARKETING
3,900
800
2,700
400
M31
2,200
500
1,500
200
M19
1,600
300
1,200
100
M7
3,900
800
2,700
400
M32
2,200
500
1,500
200
M20
1,600
300
1,200
100
M8
5,000
22,000
27,000
Year 2
3,900
800
2,700
400
M33
2,200
500
1,500
200
M21
1,600
300
1,200
100
M9
4,400
800
500
2,700
400
M34
2,600
500
400
1,500
200
M22
1,600
300
1,200
100
M10
5,000
26,000
31,000
Year 3
3,900
800
2,700
400
M35
2,200
500
1,500
200
M23
1,600
300
1,200
100
M11
4,800
800
900
2,700
400
M36
3,100
500
900
1,500
200
M24
2,500
300
900
1,200
100
M12
Straight Line
Office Equipment
Depreciation
Total
Straight Line
Hardware and Software
Depreciation
10%
33%
Depreciation Rate
23,799
44,520
371
851,920
23,428
Total
Depreciation Method
17,460
146
Summary of Fixed Assets Year 3
10%
486,800
13,387
Total
6,597
33,720
281
229,680
6,316
Total
13,533
Straight Line
Office Equipment
Depreciation
33%
Depreciation Rate
10%
33%
Depreciation Rate
Total
Straight Line
Hardware and Software
Depreciation
Summary of Fixed Assets Year 2
Depreciation Method
Straight Line
Office Equipment
Depreciation
Total
Straight Line
Depreciation Method
Hardware and Software
Depreciation
Summary of Fixed Assets Year 1
Appendix 16 Fixed Assets by Month
NETGEN | MARKETING
1,960
3,710
31
70,160
1,929
M25
895
8,730
73
29,900
822
M13
550
2,810
23
19,140
526
M1
1,960
3,710
31
70,160
1,929
M26
895
8,730
73
29,900
822
M14
550
2,810
23
19,140
526
M2
106
1,960
3,710
31
70,160
1,929
M27
822
-
29,900
822
M15
550
2,810
23
19,140
526
M3
1,960
3,710
31
70,160
1,929
M28
822
-
29,900
822
M16
550
2,810
23
19,140
526
M4
1,960
3,710
31
70,160
1,929
M29
822
-
29,900
822
M17
550
2,810
23
19,140
526
M5
1,960
3,710
31
70,160
1,929
M30
1,097
-
39,900
1,097
M18
550
2,810
23
19,140
526
M6
1,960
3,710
31
70,160
1,929
M31
1,317
-
47,900
1,317
M19
550
2,810
23
19,140
526
M7
1,960
3,710
31
70,160
1,929
M32
1,317
-
47,900
1,317
M20
550
2,810
23
19,140
526
M8
1,960
3,710
31
70,160
1,929
M33
1,317
-
47,900
1,317
M21
550
2,810
23
19,140
526
M9
1,960
3,710
31
70,160
1,929
M34
1,317
-
47,900
1,317
M22
550
2,810
23
19,140
526
M10
1,960
3,710
31
70,160
1,929
M35
1,317
-
47,900
1,317
M23
550
2,810
23
19,140
526
M11
2,235
3,710
31
80,160
2,204
M36
133
-
57,900
1,592
M24
550
2,810
23
19,140
526
M12
-
1
3
1
1
1
1
1
2
1
1
19,140
Total
19,140
2,810
21,950
Fixed Assets
Hardware and Software
Office Equipment
Total
5,000
5,000
3,640
1,500
4,000
Total
2,810
300
1,500
900
-
Total
Total
Total
5,000
5,000
1,820
1,200
4,000
External Servers
Redundant Servers
Laptops and PCs
Printers
Email Marketing Software/Other Software
Cost Per Unit
1,000
150
500
110
100
1,500
900
1,000
Cost Per Unit
1,000
150
500
110
100
1,500
900
1,000
Cost Per Unit
5,000
5,000
1,820
1,200
4,000
Notes
Notes
Notes
External Servers (Webworld.ie)
Redundant Servers (Webworld.ie)
Laptops and PCs (Mac Pro)
Printers (Canon)
Email Marketing Software/Other Software
Hardware & Software
Total
Boardroom Table
Boardroom Chairs
Office Kit
Filing Cabinets
Office Shelves
Telephone/Internal Transfers
Fax/Printer/Photocopier
Other Additional Office Equipment
Office Equipment
Boardroom Table
Boardroom Chairs
Office Kit
Filing Cabinets
Office Shelves
Telephone/Internal Transfers
Fax/Printer/Photocopier
Other Additional Office Equipment
Office Equipment
NETGEN | MARKETING
1
3
1
1
-
1
1
2
1
1
21,950
19,140
2,810
M1
19,140
5,000
5,000
3,640
1,500
4,000
M1
2,810
110
300
1,500
900
-
M1
M1
M2
M2
M2
M2
-
-
-
-
-
-
-
-
M3
M3
M3
M3
M4
M4
M4
107
-
-
-
-
-
-
-
-
M4
-
-
-
-
-
-
-
-
M5
M5
M5
M5
-
-
-
-
-
-
-
-
M6
M6
M6
M6
-
-
-
-
-
-
-
-
M7
M7
M7
M7
-
-
-
-
-
-
-
-
-
-
-
M8
M8
M8
M8
-
-
-
-
-
-
-
-
M9
M9
M9
M9
-
-
-
-
-
-
-
-
M10
M10
M10
M10
-
-
-
-
-
-
-
-
M11
M11
M11
M11
-
-
-
-
-
-
-
-
M12
M12
M12
M12
-
-
-
-
-
-
-
-
1
4
1
2
2
1
1
1
4
1
38,760
5,920
44,680
Total
Total
10,760
6,760
4,000
Total
5,920
1,000
600
500
220
200
1,500
900
1,000
Total
Total
Hardware and Software
Office Equipment
Fixed Assets
Total
5,000
5,000
1,690
1,500
4,000
External Servers
Redundant Servers
Laptops and PCs
Printers
Email Marketing Software/Other Software
Cost Per Unit
1,000
150
500
110
100
1,500
900
1,000
Cost Per Unit
1,000
150
500
110
100
1,500
900
1,000
Cost Per Unit
5,000
5,000
1,690
1,500
4,000
Notes
Notes
Notes
External Servers
Redundant Servers
Laptops and PCs
Printers
Email Marketing Software/Other Software
Hardware & Software
Total
Boardroom Table
Boardroom Chairs
Office Kit
Filing Cabinets
Office Shelves
Telephone/Internal Transfers
Fax/Printer/Photocopier
Other Additional Office Equipment
Office Equipment
Boardroom Table
Boardroom Chairs
Office Kit
Filing Cabinets
Office Shelves
Telephone/Internal Transfers
Fax/Printer/Photocopier
Other Additional Office Equipment
Office Equipment
NETGEN | MARKETING
1
4
1
2
2
1
1
1
4
1
16,680
10,760
5,920
M13
10,760
6,760
4,000
M13
5,920
1,000
600
500
220
200
1,500
900
1,000
M13
M13
M14
M14
M14
M14
-
-
-
-
-
-
-
-
-
108
M15
M15
M15
M15
-
-
-
-
-
-
-
-
-
M16
M16
M16
M16
-
-
-
-
-
-
-
-
M17
M17
M17
M17
-
-
-
-
-
-
-
-
1
1
-
-
-
-
10,000
10,000
-
M18
10,000
5,000
5,000
-
M18
M18
M18
2
-
-
-
8,000
8,000
-
M19
8,000
8,000
M19
M19
M19
M20
M20
M20
M20
-
-
-
-
-
-
-
-
M21
M21
M21
M21
-
-
-
-
-
-
-
-
M22
M22
M22
M22
-
-
-
-
-
-
-
-
M23
M23
M23
M23
-
-
-
-
-
-
-
-
1
1
-
-
-
-
10,000
10,000
-
M24
10,000
5,000
5,000
-
M24
M24
M24
1
2
1
1
1
4
1
1
22,260
3,710
25,970
Total
Total
12,260
6,760
1,500
4,000
Total
3,710
110
200
1,500
900
1,000
Total
Total
Hardware and Software
Office Equipment
Fixed Assets
Total
5,000
5,000
1,690
1,500
4,000
External Servers
Redundant Servers
Laptops and PCs
Printers
Email Marketing Software/Other Software
Cost Per Unit
1,000
150
500
110
100
1,500
900
1,000
Cost Per Unit
1,000
150
500
110
100
1,500
900
1,000
Cost Per Unit
5,000
5,000
1,690
1,500
4,000
Notes
Notes
Notes
External Servers
Redundant Servers
Laptops and PCs
Printers
Email Marketing Software/Other Software
Hardware & Software
Total
Boardroom Table
Boardroom Chairs
Office Kit
Filing Cabinets
Office Shelves
Telephone/Internal Transfers
Fax/Printer/Photocopier
Other Additional Office Equipment
Office Equipment
Boardroom Table
Boardroom Chairs
Office Kit
Filing Cabinets
Office Shelves
Telephone/Internal Transfers
Fax/Printer/Photocopier
Other Additional Office Equipment
Office Equipment
NETGEN | MARKETING
1
2
1
1
1
4
1
1
15,970
12,260
3,710
M1
12,260
6,760
1,500
4,000
M25
3,710
110
200
1,500
900
1,000
M25
M25
M2
M26
M26
M26
-
-
-
-
-
-
-
-
-
M3
M27
M27
M27
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
109
M4
M28
M28
M28
M5
M29
M29
M29
-
-
-
-
-
-
-
-
M6
M30
M30
M30
-
-
-
-
-
-
-
-
M7
M31
M31
M31
-
-
-
-
-
-
-
-
M8
M32
M32
M32
-
-
-
-
-
-
-
-
M9
M33
M33
M33
-
-
-
-
-
-
-
-
M10
M34
M34
M34
-
-
-
-
-
-
-
-
M11
M35
M35
M35
-
-
-
-
-
-
-
-
1
1
-
-
-
-
10,000
10,000
-
M12
10,000
5,000
5,000
-
M36
M36
M36