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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