Download Marketing Web Site

Marketing in Digital Age
Dony Eko Prasetyo, S.IP.
Amazon.com
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Started in July 1995 selling books
One of the best known names on the Web
Profitability has been a challenge
Customer-driven company which strives
to design the best customer experience on
the Web
• The first to use collaborative filtering
technology for customer
recommendations
• With its slow earning, can its business
model make it the Wal-Mart of the Web?
Major Forces Shaping the
Digital Age
• Digitalization and Connectivity
– The flow of digital information
requires connectivity
• Intranets, Extranets, and the Internet
• The Internet Explosion
– Key driver of the digital age
– Using the Web to find information on
major life decisions
Major Forces Shaping the
Digital Age Cont’d
• New Types of Intermediaries
– The click-and-mortar business model has
been highly successful
• Customization
– Firms are individualizing their products,
services, messages and media
– True customization is when a consumer
designs their own offering or product
Forces Shaping the
Internet Age
Marketing in the Digital Age
• What does this mean for:
– Brochures & catalogs?
– TV & radio advertising?
– Banner ads?
– E-newsletters?
Marketing in the Digital Age
• THE DIGITAL AGE
• New tools = new strategies +
tactics
– Search
– Web 2.0 – user-created content,
feedback loops, blogs, social
networks
– Customer relationship management
(CRM)
Marketing in the Digital Age
• THE DIGITAL AGE
– What becomes possible?
– What becomes unnecessary?
– What trends are emerging?
Marketing in the Digital Age
• THE DIGITAL AGE - trends
– Share of customer, not share of
market
– Smaller markets, higher saturation
– Platforms for open development
– Frictionless economy
• Good-bye to middlemen, agencies
– Disruptive innovation as a way of life
Marketing in the Digital Age
• THE DIGITAL AGE – is the age of
search
– Customers, partners, employers find
you on:
• Google, LinkedIn, Facebook, MySpace
– Social networks put you in control
of your online identity
Marketing in the Digital Age
• THE DIGITAL AGE – is the age of
partnership and collaboration
– Good customers are the advertisers
– Bad customers are partners in quality
control
– Transparency and collaboration make
the digital age a very public place
• Wikipedia, Jigsaw, Yelp!
Marketing in the Digital Age
• THE DIGITAL AGE – is the age of
disruptive innovation as a way of
life
– Platforms for development:
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I-phone apps
Facebook apps
Google apps
Salesforce.com apps (computing cloud)
Marketing in the Digital Age
• THE DIGITAL AGE – is the age of
intense customer focus
– Waning terminology:
• Market share/market segmentation
• Target audience, ratings, demographics
– Digital thinking:
• Share of customer/share of wallet
• Personal, customized, 1:1
Marketing in the Digital Age
• THE DIGITAL AGE – is the age of
intense customer focus
– Focus on meeting customer
needs…as many of them as are
feasible
• ABC Pest & Lawn
• Dell
• Google
– Marketing & Sales are ONE
Marketing Strategy in the
Digital Age
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Requires a new model for
marketing strategy and
practice.
Some suggest that all buying
and selling will eventually be
done electronically.
Companies need to retain old
skills and practices but add new
competencies.
Marketing Strategy in the
Digital Age
• E-business:
– uses
electronic means
and platforms to
conduct business.
Marketing Strategy in the
Digital Age
• E-commerce:
– facilitates the
sale of products
and services by
electronic
means.
E commerce
Includes:
• Online business to business transactions
• Online business to consumer transactions
• Digital delivery of products and services
• Online merchandising
• Automated telephone transactions eg
phone banking
• EFTPOS and other automated transfer
systems
Marketing Strategy in the
Digital Age
• E-marketing:
– Includes efforts that inform, communicate,
promote, and sell products and services over the
Internet.
Buyer Benefits of ECommerce
• Convenience
• Easy and private
• Greater product
access/selection
• Access to comparative
information
• Interactive and immediate
Seller Benefits of ECommerce
• Relationship building
• Reduced costt
• Increased speed and
efficiency
• Flexibility
• Global access
E Commerce Domain
B2C (Business to
Consumer)
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The online selling of goods and
services to final consumers.
There is increasing diversity in
buyers.
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This provides increasing
opportunities for targeting
markets.
Is customer initiated and
controlled.
B2B (Business to
Business)
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By 2005, more than 500,000
enterprises will participate as buyers,
sellers, or both.
Most major B2B marketers offer
product information, purchasing, and
support services online.
Open trading exchanges—huge
specialty e-marketspaces to conduct
transactions.
More private trading networks being
developed.
C2C (Consumer to
Consumer)
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Occurs on the Web and
includes a wide range of
products and services.
Forums: discussion groups
located on commercial
online services.
Newsgroups: the Internet
version of forums.
C2B (Consumer to
Business)
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Consumers can search out
sellers, view offers, initiate
purchases, and give
feedback.
– Example: on priceline.com
one can bid for airline tickets,
hotel rooms, etc. and decide
whether to accept company
offers.
Click-Only Companies
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E-tailers
Search engines and portals
Internet service providers
Transaction sites
Content sites
Enabler sites
Reasons for dot.com
Failures
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Poor research or planning.
Relied on spin and hype
instead of marketing
strategies.
Spent too heavily on brand
identities.
Devoted too much effort to
acquiring new customers
instead of building loyalty.
Click-and-Mortar
Companies
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Most established companies resisted
adding Web sites because of the
potential for channel conflict and
cannibalization.
Many are now doing better than clickonly companies.
Reasons:
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Trusted brand names and more resources
Large customer bases
More knowledge and experience
Good relationships with suppliers
Can offer customers more options
Setting up for
E-Marketing
•Creating websites
•Placing online ads and promotions
•Creating or using Web communities
•Using E-mail
Creating websites
•Corporate websites
– Build goodwill and relationships; generate
excitement
•Marketing websites
– Engage consumers
and attempt to influence purchase
•Website design
– 7 C’s of effective website design
Types of Web Sites
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Corporate Web Site:
Designed to build
customer goodwill and
supplement other sales
channels.
Offers information to
customers.
Builds closer customer
relationships.
Generates excitement
about the company.
Types of Web Sites
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Marketing Web Site:
Engages consumers in an interaction that
moves them closer to a direct purchase.
Provides information about the products.
Seven C’s of Website
Design
•Context
•Content
•Community
•Communication
•Connection
•Commerce
Customization
Placing online ads and
promotions
•Online forms of ads and promotions
•Future of online ads
Online Ads and
Promotion
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Forms of online advertising & promotion:
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Banner ads & tickers (move across the screen)
Skyscrapers (tall, skinny ads at the side of a page)
Rectangles (boxes that are larger than a banner)
Interstitials (pop up between changes on Web site)
Content sponsorships (sponsoring special content)
Microsites (limited areas paid for by an external
company)
Viral marketing (Internet version of word-of-mouth)
The Future of Online
Advertising
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Web communities:
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Allows members to congregate
online and exchange views on issues
of common interest
E-mail:
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Use of “enriched”
e-mail messages
Backlash against
spam can be problem
Allow people to
opt-out of promotions
Creating or using Web
communities
•Web communities allow members
with special interests to exchange
views
– Social communities
– Work-related communities
•Marketers find well-defined
demographics and shared interests
useful when marketing
Using E-mail
•E-mail marketing
– Key tool for B2B and B2C marketing
– Clutter is a problem
– Enriched forms of
e-mail attempt to break through
clutter
– Spam is a problem
Promise and Challenges of
E-Commerce
• The Promise of E-Commerce
– Online marketing will become a successful
business model for some companies
– The question is “how,” not “whether,” to deploy
Internet technology
– The Internet should be used as one approach or
tool in the fully integrated marketing mix
Legal and Ethical Issues
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Online privacy
Online security
Internet fraud
Segmentation and
discrimination
Access by vulnerable or
unauthorized groups