Download Lecture 1 Title: MIS Concept and Definition

Lecture 5
Title: Marketing an E-Business
By: Mr Hashem Alaidaros
MIS 326
Main points
• Introduction to Marketing
• eMarketing Methods
• Advantages of Online Marketing
 Search engines
 SEO
 SEM
 Online Advertising
 Affiliate Marketing
 How it works
 How do affiliates promote merchants
 Different types of commissions
 Affiliate tracking - Cookie
 Affiliate Network
Marketing
• Marketing is the process of planning and
executing the conception, pricing, promotion and
distribution of ideas, goods and services to
satisfy customers
• Marketing is more than sales; it is those set of
activities that
o Grabs a potential customer
o Encourages them to buy your product
o Actually gets them to purchase your product
o Makes them a repeat customer
Brand
• The first step in any e-Marketing strategy is to create
a brand, the message that the company draws in
everything it does.
• It is important to promote your Web site on your
Web site. This can be achieved through:
 The domain name; use the company’s name
 Negotiate reciprocal links, i.e. other Web sites
linking to your site
Web Site Naming
• People with established brands want to name their
Web site after their brand
• Companies other buy more than one domain name,
just in case the person misspells it (e.g. Yahoo.com
owns Yahow.com)
• In some cases the Web site domain is owned by some
one else (e.g. virginatlantic.com -> viginatlantic.com)
• Domain names can be expensive, e.g. Altavista.com
cost $3.3 million
Web Market Segmentation
• The design of the site can immediate appeal to
different market segments, for example:
o For the young fashion-conscious buyer you may have
a site with a wide variety of typefaces, bold graphics
and bright color product photos
o For the older more established buyer you may have a
more muted conservative style
Web Market Segmentation
• Companies can offer a form of one-to-one Marketing
by allowing customers to customize the retailer’s Web
site
• One example of this is Dell.com
o Offers each customer its own Web site
o Allows individual employees of its customers to
create their own personalized pages
How to e-Market a web site?
• Several methods of promotion are in use today:
1. Banner ads
2. Pop-up ads
3. Email Marketing
4. Affiliate Marketing
5. Viral Marketing
6. Search engines and directories
7. Blogging and Podcasting
Cont.
• Traditional media:
• local newspapers,
• radio programs and
• mass mailing campaigns
1. Banner Ads
• Most Web advertising uses banner ads
o It is a small rectangular object normally at the top of
the Web page which displays stationary or moving
graphics
o These ads are created using animated GIFs, or
objects created in Shockwave, Java or Flash
Cont.
Pay a site to display the banner ad
• Use a banner advertising network who acts as
brokers between advertisers and Web sites that
carry ads
• They often broker space on large Web site like
Yahoo, which has high traffic volumes and are
therefore expensive
Measuring Cost for Ads
o Cost per thousand clicks (CPM)
o The cost per one thousand clicks may range from
$1 to $50.
2. Pop-Up ads
• The pop-up ad is an ad that appears in its own window
when the user opens or closes a page
• The pop-behind ad is a pop-up ad that is behind the
existing browser window
o
Ad-blocking software prevents these ads from displaying
3. E-Mail Marketing
• Internet Mailing List:
• A group of people with similar interests who discuss their
favorite topics via email
• Some of the ways that email has been used for
Marketing are:
Permission Marketing is the sending of emails to people
who request further information on a product or service
(for example)
o Combining content (e.g. articles or news stories that are
of interest to the target market) with advertising
messages
o
Cont.
A mass email promotion to an untargeted list is called
spam and is disapproved by the online community
• Email marketing is very cost effective and with good
results, i.e. 5-15% response rate
• What is different between Junk and spam mail?
•
4. Affiliate Marketing
• In affiliate Marketing a Company’s Web site includes
products or services offered for sale by another
company in exchange for a commission
o Example:
o Amazon.com has over 800,000
affiliate sites
5. Viral Marketing
• Viral Marketers rely on non-customers being told
about products or services by existing customers
• An example of a viral Marketing campaign is Blue
Mountain Arts
o When an electronic greeting card is sent to a person,
a link to Blue Mountain is included which they click
on to read the card; they are now more likely to send
a card themselves
6. Search Engine
• Search-engine ad: an advertisement tied to a specific
keywords in a search engine.
• When selected keywords are typed in a search box, an
appropriate ad is displayed.
7. Blogging and podcast
• Blog: Short for web log.
• It is an online digital diary or forum where text,
photos, video, and other material can be posted and
made available to the public.
• Podcast: A recorded audio program available online for
download in a file format that can be easily transferred
to an MP3 player
Benefits of online marketing
Other Benefits of Online Marketing
 Speed of launching advertising campaigns. Advertising
banners or textlinks can be created quickly and placed on
websites within hours. Compare this to creating a magazine,
radio or television ad which could cost thousands and take
weeks to create. This also allows you to change messages on
the fly if you need to. Try doing that on TV or Print
 Tracking. Advertising campaign performance can be tracked
with such precision that one can see exactly how many people
are viewing your ad, responding to it and ultimately buying
your product. This information can be viewed on an hourly
basis if needed. Advertising messages can also be delivered
based on website visitor preferences or behavior.
e-Business, e-Commerce, and eMarketing in the Internet Age
e-Business
Involves
the Use of Intranets, Extranets & the Internet to
Conduct a Company’s Business
e-Commerce
Involves Buying & Selling Processes
Supported by Electronic Means
E-Marketing
“e-selling” side of ecommerce
Search Engines
Search Engines
Introduction
 A search engine helps users find the things they're looking
for online.
 The user types a word or phrase, called a query, into the
search engine, which then displays a set of results that
are relevant to the query.
 Most search engines provide two types of results listings
in response to the same user query:
 organic (also called "natural" or "free") listings, and
 paid listings (i.e., advertisements and adwords)
How search engines rank the results?
 Most search engines rank the results within each type of
listing
 in other words, they determine in what order to show the
listings on the results page -- according to how relevant the
result is to the user's query, with the most relevant
appearing at the top of the page.
 Each search engine calculates relevancy in a different way
for each type of result (organic and paid). This is one of
the main differences between one search engine and
another, and it's a factor in many users' decisions about
which search engine to use.
Search engine optimization
 Search engine optimization (SEO) involves building new
websites, or changing existing websites, so that they rank
highly in a search engine's organic listings when users
search on terms that are related to the site's content.
Search engine marketing
 Search engine marketing (SEM) is the process of
promoting and marketing a website through paid listings
(advertisements)
on
search
engines.
 In order to create an ad for a given search engine, you
need to create an account with the advertising product or
branch of that search engine.
 For Google, this product is AdWords.
 After creating an account, you then create your ad and
enter a list of user search queries -- called "keywords" -that can trigger your ad to be shown.
Cont.
 Ads on most search engines operate on some common
pricing models:
 pay-per-click (PPC) model, meaning that you pay only when
a user clicks your ad, and not for the ad impression (the
instance in which the ad appears on the page).
 cost-per-thousand impressions (CPM), in which you pay per
impression, not for any clicks on your ad.
 Cost-per-action. How?
 ?????
How Online Advertising Works
 Although SEM refers to placing ads just on search
engines, online advertising as a whole is much broader.
 The possibilities of online advertising include placing ads
on nearly any type of website or page a user might
browse, such as news, blogs, reviews, entertainment,
online magazines, and marketplaces.
Cont.
 Ads on online advertising can be in a number of formats,
such as basic text ads, graphical image ads in a variety of
sizes, audio streams, or interactive and video ads.
 You can also choose many different targeting options for
your ads: whether defining the user's device (a computer
or a mobile phone) you'd like your ad to show on, or
specifying the user's location, language, or demographic.
Online advertising goal
 Online advertising goals generally fall into one of two
categories:
 direct response or
 branding
Direct response
 If your goal is direct response, you'd like a user to perform
an action after clicking through your ad to your website:
make a purchase, sign up to a newsletter, or request a
quote, for instance. The completion of your desired
action by the user is called a conversion
 To manage your online advertising strategy and costs, it's
useful to define a cost-per-acquisition (CPA) that you'd
like to achieve per conversion. You'll then be able to
monitor the performance of your ads to ensure that
they're meeting your CPA goals.
Branding
 If your advertising goal is branding, your main reason for
advertising online is to raise awareness and visibility of
your product, service, or cause.
 To achieve this, you'll want to aim to place your ads in
front of as many people as possible within your target
audience
Affiliate Marketing
What is Affiliate Marketing?
 Affiliate marketing: is a marketing practice in which a
business rewards one or more affiliates for each visitor
or customer brought about by the affiliate's marketing
efforts.
How it works
1. An
affiliate refers potential
customers to a merchant's
website
2. Some of those customers
performs a desired action
3. The merchant rewards the
affiliate for each desired action
resulting from the affiliate’s
referral
How do affiliates promote merchants?
 The basic aim of an affiliate is to send targeted traffic (that
means customers who are very likely to perform the desired
action) to a particular merchant’s web site.
 Affiliates may promote as many merchants in as many
industries with as many tactics as they wish, but usually
affiliates will start to specialize.
Cont.
 Affiliates use a number of means to promote
merchants. These include:
• Personal web sites,
• Content and niche sites,
• Email lists,
• Loyalty sites (points or cash back or charitable donations),
• Coupon and promotions sites,
• Comparison shopping (see also PPC advertising), and
• Search affiliates (search arbitrage)
Different type of Commissions
 There are different types of commission, based on
the merchant’s industry:
• CPA: Cost per Action. Paid when a certain action is
performed by a user.
• Revenue Share: Commission structure where the
affiliate earns a percentage of a sale.
• CPC: Cost per Click. Paid when a link is clicked
upon.
Tracking
 The most essential element to affiliate marketing is tracking.
 Tracking software places a cookie on a user’s browser when
that user clicks on an affiliate link. Affiliate tracking software
collects information even if no action is completed.
 This is vital to the affiliates and to the merchants to see where
they can optimize their campaign.
Information collected includes:
 Impressions
 Clicks
 Conversions
Cookies
 A cookie is a small text file that is sent to your computer via
your web browser when you visit some websites.
 These cookies are used to store information about you for the
next time you visit that site - information like where you went
on the site and what you did.
 Cookie files are a great way for a website to remember you
when you next visit, but if you want to surf the net without
worrying about your privacy or security being threatened, you
might want to stop them being sent.
Cookies
What they do?
Cookies have a variety of different functions:
 remembering purchasing information
 recording your viewing preferences
 storing scores for online quizzes.
 All of which can be useful if you repeatedly visit the same sites
time and again.
 A cookie from a particular website will sit on the hard drive of
your computer and wait until the next time you visit that site.
Affiliate Networks
 As well as the affiliate and the merchant, there is a generally a
very important third party in the affiliate marketing mix – the
affiliate network.
- Affiliate networks are often used as an intermediary between
affiliates and merchants.
 Affiliate networks provide tracking solutions, reporting and
support to both affiliates and merchants.
Affiliate Networks