Download Chapter 14

Electronic Marketing
Chapter 14
Establishing and Promoting a
Virtual Store
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
In Creating the Virtual Store, the
Best Advice is “Go Slow”
• The marketer as the merchant should investigate the pitfalls
before he begins to extol the potentials of e-commerce and
become blinded by its advantages
• To avoid “commerce overconfidence,” the general strategy
of setting up commercial units should not be any different
for e-commerce activities
• Traditional organizational responsibilities for establishing
financial affairs, production concerns and marketing actions
should be determined in the same manner for virtual
commerce companies
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Triad in Action
• The virtual marketer must arrange for financing to purchase
hardware and software material
• Establish an office
• Arrange for personnel and business necessities
• Rounding out the triangle of finance and operations is the
marketing function working to investigate consumer wants
and the proper, highly-exposed delivery process for those
bundles of benefits
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Do It Yourself or Hire a Developer?
• One of the biggest decisions, particularly for the small
company or individual, is how to set up the online store
• The decision usually revolves around the answers to the
following questions:
– How experienced in business is the person responsible for
setting up the online storefront?
– How technology-savvy is this individual?
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Do It Yourself or Hire a Developer?
• Intangible qualities in establishing a virtual storefront
– Finding a niche to fill
– Attracting and training good people
– Creating an attractive company culture
• To establish an electronic presence, it will also require some
tangible equipment to access the Web
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Do It Yourself or Hire a Developer?
• Whether or not the e-marketer employs a developer or does
it herself, the storefront must have reliable access to the
Web as well as these elements:
– Virtual store-building software
– Virtual online information sources
– A 500 MHz or faster PC
– A large hard disk, perhaps 20 gigabytes of storage or larger
– 128 or more megs of ROM memory
– A large color monitor
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Do It Yourself or Hire a Developer?
• Reliable access elements continued…
– Cable or ISDN modems, or a 56.6 Kpbs modem at minimum
– A browser
– Printers
– Scanners
– Telephone service and an Internet Service Provider
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Engaging a Storefront Developer
• Service companies have evolved to produce the entire
virtual storefront in a turnkey fashion
– The marketer supplies the developer with a marketing plan
– He directs the company according to his understanding of the
target market
– The developer should design the site for the most popular
browsers and specify the necessary equipment to implement
the design on the Web
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Engaging a Storefront Developer
• It is easy to be dazzled by graphics; however, the marketer must
ask himself the following questions:
– Does the design and copy fit the objectives for the online
marketing?
– Is the design attractive, memorable, and motivating?
– Does the design ask or require the viewer to do something, such
as click through a site, register for a promotion, or visit a
dealership or retail store?
– Is the site reflective of other company marketing materials?
– Can the site be produced for the budget allotted and within the
time frame allowed?
– Do the site strategies match the corporate strategies of the
company?
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Joining a Cybermall?
• After the site is created and the meta tags are tested, the
next decision for the marketer is how to maintain an optimal
awareness for the site
– Step one - register with a variety of search engines so that the
consumer can locate merchandise and offerings
– Step two - assess maintaining a stand-alone site as opposed to
participating in the “bundling” of cybermall retailers
• The cybermall is a virtual collection of sites, usually
bringing financial, insurance, or automobile sites together
that offer the shopper many hyperlinked addresses to follow
from one page
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Joining a Cybermall?
• The major benefits of signing on with a cybermall
are:
– Expanded exposure over and above the efforts of a
single site
– The selection to be found at the cybermall’s address
– The site maintenance services by the cybermall
operator
• The major disadvantages are:
– The cost of joining and “renting” space monthly
– Heavy competition
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Marketing Duties of a Web Site
Manager
• What are the necessary elements to begin setting up an
online presence?
– A detailed study of the Internet and the Web as well as the
peripheral promotions and communications capabilities nested
on the company desktop
– Proficiency at a word processing program
– An understanding of advertising procedures, graphics, and
copy is also helpful
– Communicating effectively with advertising suppliers
– Being cognizant of technology changes in hardware or
software
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Marketing Duties of a Web Site
Manager
• Elements for setting up online presence continued…
– Being able to judge if new equipment or applications would
improve a site’s performance
– Familiarity with HTML editing, linking hyperlinks, and
acquaintance with frames and tables page construction
– An appreciation of customer service and conflict resolution are
pluses
– A general proficiency in basic communications
• The Web master has many duties in maintaining the ecommerce site, and a sense of organization is absolutely
necessary
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Choosing an Internet Service
Provider
• An ISP is a company that can provide you with a connection to the
Internet as well as Internet-based services
• There are also many types and levels of ISPs:
– ISPs can be part-time hobbyists who are inexpensive but not well
equipped to handle a business Web site
– Some ISPs are small businesses that are quite successful and can be
well equipped to handle a business Web site that receives moderate
traffic
– Large ISPs often provide many services to businesses and can have
in-house technical support
• The downfall to using a large ISP is that they may not be as flexible
• Large providers will most likely have the equipment and the fastest
connections to the Internet
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Choosing an Internet Service
Provider
• A commercial provider such as AOL, CompuServ, MSN, and
Prodigy
– These services may not be flexible enough to run the business
the way the marketer wants and within the approved budget
• To find an ISP:
– Search on the Web
– Ask others in your area
– Look in the yellow pages
– Check an ISP reference service
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Choosing an Internet Service
Provider
• Considerations when investigating which one to use will
depend primarily on why the marketer wants an ISP
– If marketer wants one for personal use, a local small business
might be better as they may be more helpful
– If marketer wants one for business purposes, reliable service is
going to be a major issue
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Choosing an Internet Service
Provider
• Some questions that the marketer might ask when looking
at ISPs:
– Are you able to communicate with the service representative of
the ISP?
– Are personal and business goals understood?
– What type of reputation do they have?
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Choosing an Internet Service
Provider
• More Questions…
– Are you able to do everything that you want with this ISP?
• E-mail access
• Host Web sites
• News groups
• Scripting
– What is the pricing structure?
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Choosing an Internet Service
Provider
• More Questions…
– What type of connection does the ISP provide?
– What software is provided by the ISP?
– What type of technical support is available?
• Make sure support is available when and how it is needed
• See if they offer on-site support
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Choosing an Internet Service
Provider
• Once the marketer has chosen an ISP to host the Web
pages, there are still a few things the marketer needs to be
aware of:
– What are the limitations set by the ISP on the size of the Web
site?
– If the site is accessed often, check for limitations and
additional fees for excess hits on your pages
– How will the files be transferred to the ISP and what type of
access will you have for editing those pages once they are in
place?
– See if scripts are allowed, or if they are provided by the ISP
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Choosing an Internet Service
Provider
• Things to be aware of continued…
– Is the provider capable of handling the security necessary for
your type of site?
– What statistics are available from your ISP, how easy are they
to obtain and in what form will they be provided?
– Make sure that you have ownership of the design and content
of your pages and that you have thoroughly read the contract
your ISP should happily provide you
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Promoting the Web Site
• The twist in online promotion is that no one has a long
history doing it right and doing it well, so much
experimentation in promotion is ongoing
• The confusion in promotions is that the Web:
– “Reads” like a newspaper, but it is not.
– The Web is like television, but where are the programs?
– It has sound like the radio, but where is the music?
– Promoters of Web advertising speak of billboards, but try to
find one of the huge structures along the information highway.
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Planning and Organization
• Prepare a solid marketing plan focusing on the promotional
element to expose the product and display the discipline to
follow
• What are the elements of the online communications
marketing plan (your road map to marketing on the Web)?
– Online marketing plan
– Online promotional program
• Identify your consumer or business-to-business targets
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Tactical Online Targeting
• The means which the marketer will use to communicate with
his primary targets are established online vehicles such as
e-mail and discussion groups
– Search engine optimization
– Mail servers and e-mail
– Electronic or virtual storefronts
– Advertising
– Electronic publishing
– Hard copy publishing
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Tactical Online Targeting
• Means of communication continued..
– Conferences venues
– “Cookies”
– Sig files
– FAQs
– Usenet newsgroups
– “Cross fertilization” between your Web site and your traditional
marketing media to increase the success of your Web presence
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Tactical Online Targeting
• The marketer can increase visibility through the following
actions:
– Register your site with Web search engines, listings, and
catalogs
– Participate in discussion lists and Usenet newsgroups and the
use of informative .sig files
– Make online announcements and use news releases
– Study FAQs
– Use cross-linking of your page to other relevant pages
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
How Can the Marketer Get Web
Surfers Hooked?
• After the initial visit, activity and interactivity will encourage
your visitor to return to your site
– Curiosity
– Item turnover
– Indispensable tool or resource
– Unique event or resource
– Stickiness
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
How Can the Marketer Get Web
Surfers Hooked?
• The Internet gives advertising and marketing professionals
many resources that are very dynamic, helpful, and
informative.
– NetPlus Marketing Inc.
http://www.netplusmarketing.com/resources.cfm
– Advantage Solutions
– Dataquest
– NetMarket Group
– Modem Media Poppe Tyson Advertising
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Present State of Online
Commerce
• What are the dynamics of consumers actually buying
online?
– 89.3% of the GVU tenth WWW User Survey respondents
reported that they have “ordered a product or service by filling
out a form on the Web”
– Respondents were usually U.S. males familiar with Internet
activities
– Technology consumers are most comfortable in the online
environment
– The internet population is homogenizing and the purchase
patterns are changing
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Present State of Online
Commerce
• What are the trends in consumer purchases that ebusinesses selling online should be aware of for the
immediate future?
– Computer and accessories
– Entertainment
– Securities trading services
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Present State of Online
Commerce
• E-commerce markets with the best growth potential are
those closely tied to shifting demographics such as
– Financial instruments
– Health
– Travel
– Gardening for aging Boomers
– Apparel, music and entertainment for GenXers
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo