Download Marketing on Internet

Marketing on Internet
Types of Internet advertising
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banners
Email
selling advertising to consumers
web storefronts
Economic role of advertising
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to inform comsumers
to increase demand
to encrease or lower demand elasticity
to discourage entry by potential
competitors
• to differentiate the firm from existing
competitors
marketing channel
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information
promotion
negotiation
ordering
delivery
payment
trust
information brokerage
virtual community participation
E-Marketing mix
Product
Price
Distribution
Communication
mix
Customer
eCRM
E-Commerce
M-Commerce
Internet
adverising
Selling
Public
relation
Vira marketing
E-mail
marketing
Affiliate
marketing
internet charactertistic for
marketing communication
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24 hours online
multimedia
ubiquity
global avaibility
interactive
one to one marketing
intergration
differences between stages
Unique
Visitor
Visits
Page
Views
Hits
visiting of WWW server
Search Engine Optimization
Search Engines follow the network of links and
index, or re-index, website pages within their
databases as they find them. Links to your
website are how your company website will
continue to be found and indexed, and plays an
important role in how your company site is
ranked within the search Engine
Search Engine Marketing
• Pay Per Click Marketing
• Email Marketing
• Affiliate Marketing
Web Analytics
• Cost per visitor by search engine and by
keyword
• Cost per conversion by search engine and
by keyword
• ROI on pay-per-click buys by search
engine and by keyword
• ROI on natural search results by search
engine and by keyword
Online Marketers and Consumers are in
Conflict
• Online marketers want detailed information
about consumers in order to segment them into
groups for purposes of targeted marketing
efforts and personalized offerings.
• Consumers appear to appreciate
personalization when it suits their needs.
• At the same time, consumers are wary about
just what is being collected, and how and for
what purposes it will be used, largely because
of bad behavior on the part of marketers.
– Spam is contributing enormously to the problem.
Online Marketers and Consumers are in
Conflict
• Consumers want personalization and use those
services:
– Most appreciate the fact that sites remember their
basic info and are willing to give out personal info in
order to gain this experience.
• But, consumers are very concerned about their
privacy and want control over how their
personal info is used:
– Most want a “guarantee” that their data will not be
misused.
Most sites collect personally identifiable
info about their visitors
Data Collection Tools
Consumer Consent?
– Cookies/Clickstream data
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Typically no.
– Web bugs
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Typically no.
– Offline/Online data aggregation
and cross-site data sharing
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May consent, but don’t
expect data will be sold;
often unaware of sharing.
Sometimes no consent
(email addresses from
screen-scrapers)
– Explicit and implicit data
collection via personalization
efforts, digital downloads
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Consent, but wary, due to
lack of full disclosure (how
used? Shared?)
Control is the Key Issue
• Key Privacy Concerns
– Share or sell data to third parties without
permission.
– Who has access?
– What is being collected?
– How is data being used/shared?
– Data not secure
– Hackers could steal the data/identity theft
A Privacy Paradox?
– Consumers own attitudes and behaviors are in
conflict:
• Surveys consistently show that consumers are very
concerned about information privacy on the Internet,
yet they continue to provide personal information
online.
– How to reconcile?
Attitudes and Behaviors Not Really in
Conflict
– Attitudinal studies show diffuse and aggregate
consumer concerns – not site specific!
– Consumers make decisions in real time about the
privacy and security of a particular site.
– Concerns handled case by case if consumer can’t
figure out how personal information will be used:
• Don’t give information.
• Lie.
• Leave the site.
• Not really a paradox, but clearly much more
research is needed to probe this more carefully.
How Do Consumers Evaluate Web Site
Credibility?
• Recent studies show consumers have strong expectations and
perceptions about what makes for a credible Web site.
• Key Findings (Consumer Web Watch Survey 2002):
– Consumers say that a Web site’s credibility is one of the most important
drivers of Web site use.
– Online shopping sites and online recommendation sites are least
credible; news sites and Federal government sites are most credible.
– Consumers say they want Web sites to provide clear, specific and
accurate information to help them gauge credibility (e.g. privacy policies,
contact info, distinguish ad from editorial, etc).
– Consumers also want search engines to reveal paid listings practices
(though most aren’t aware of the practice).
How Do Consumers Evaluate Web Site
Credibility?
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Yet, consumers appear not to use rigorous criteria to
evaluate Web site credibility (Stanford Web Credibility Project 2002):
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Instead, design, usability and content scope overwhelmingly
dominate what consumers notice:
– Overall visual design (layout, typography, font size, color
schemes, white space, images, etc.)
• Finance, search engines, travel
– Information structure (ease of navigation and information
organization):
• Search engines, finance, travel
– Information focus (breadth versus depth):
• Health, news, sports
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Looking good appears to signal being good, and therefore,
credible.
How Do Consumers Evaluate Web Site
Credibility?
• Perhaps most disconcerting, very few
consumers appear to notice objective factors
believed to be important for improving online
credibility:
– identity (8.8%)
– customer service policies (6.4%)
– sponsorships (2.3%)
– and privacy polices (<1%)
– corrections (0%).
What Elements Build Online Trust?
• Web characteristics other than privacy and security
are the primary drivers of trust (Sultan, Urban, Shankar and
Bart 2002):
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Navigation (27%)
Brand name (17%)
Recommendations (14%)
No errors (11%)
Privacy and security (11%)
• Trust also seems to depend on industry categories (e.g.
financial services sites are intrinsically more trustworthy, sports
sites less so).
• Surprisingly, consumer characteristics (e.g. past experience,
ability to assess site quality, education) play only a small role.