Chapter 8, Internet Marketing Outline 8.1 Introduction 8.2 8.3 8.4

Chapter 8, Internet Marketing Outline 8.1 Introduction 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 Branding Internet Marketing Research E-mail Marketing Promotions E-business Advertising 8.6.1 Banner Advertising 8.6.2 Buying and Selling Banner Advertising 8.6.3 Media-Rich Advertising 8.6.4 Wireless Advertising e-Business Public Relations Business-to-Business (B2B) Marketing on the Web Search Engines 8.9.1 META Tags 8.9.2 Search-Engine Registration 2001 Prentice Hall, Inc. All rights reserved.

8.1 Introduction We explore Internet marketing campaign components – Marketing research, advertising, promotions, public relations, search-engine registration Web-site traffic generation Keeping user profiles Recording visits Analyzing promotional and advertising results Target market is the group of people toward whom it is most profitable to aim your marketing Use Internet marketing with traditional marketing 2001 Prentice Hall, Inc. All rights reserved.

8.2 Branding Brand – Typically defined as a name, logo or symbol that helps one identify a company’s products or services – Customers’ experience can be considered part of its brand Brand equity – Includes the value of tangible and intangible items, such as a brand and its monetary value over time, customer perceptions and customer loyalty to a company and its products or services Internet-only businesses must develop a brand that customers trust and value Brand uniformity will increase brand recognition 2001 Prentice Hall, Inc. All rights reserved.

8.2 Branding The Internet makes it difficult to protect a brand from misuse – Rumors and customer dissatisfaction can spread quickly – It is not difficult for people to use other companies’ logos on their sites or products illegally Companies can attempt to protect their brands – Hiring people to surf the Web and look for news, rumors and other instances of brand abuse – Brand monitoring activities can be outsourced to companies such as eWatch and NetCurrents 2001 Prentice Hall, Inc. All rights reserved.

8.3 Internet Marketing Research Marketing mix includes (4Ps): – – – – Product or service details and development Effective pricing Promotion Distribution Traditional marketing research – Consists of focus groups, interviews, paper and telephone surveys, questionnaires and secondary research Findings based on previously collected data Online marketing research – Faster option for finding and analyzing industry, customer and competitor information – Provides relaxed and anonymous setting to hold focus-group discussions and distribute questionnaires 2001 Prentice Hall, Inc. All rights reserved.

8.3 Internet Marketing Research Demographics – Statistics on human population, including age, sex, marital status and income Psychographics – Can include family lifestyle, cultural differences and values Segmentation – Can be based on age, income, gender, culture and common needs and wants Traditional focus groups can allow customers to touch, smell and experience products or services 2001 Prentice Hall, Inc. All rights reserved.

8.3 Internet Marketing Research Online focus groups – Conducted to allow current or potential consumers to present their opinions about products, services or ideas – Comfortable setting for participants – Leader of the focus group cannot interpret a participant’s body language as a form of communication – SurveySite Online surveys – Conducted from Web site or through e-mail – InsightExpress.com, GoGlobal Technologies and QuickTake – Test your site and marketing campaign on a smaller scale with focus groups and trials Data collected from a company’s Web site 2001 Prentice Hall, Inc. All rights reserved.

8.3 Internet Marketing Research Evaluate campaign results Measure costs and benefits of campaign – Helps with development of a budget for marketing activities – Identify growing and most profitable segments Marketing-research firms – Forrester Research, Adknowledge, Jupiter Communications and Media Metrix Freeware and shareware – Both are no cost software distribution; however, shareware is distributed with the expectation of donations in return 2001 Prentice Hall, Inc. All rights reserved.

8.3 Internet Marketing Research Pricing – Some products priced to reflect competition – High pricing to influence perception of high-value – Can use prices to position products and services on the Internet Positioning includes affecting consumers’ overall views of a company and its products and services as compared to the way those customers view competitors’ products or services Positioning strategies can be based on price, quality, use and competitors’ positions in the market Distribution cost and time contributes to success or failure Fulfillment – Execute orders correctly and ship products promptly 2001 Prentice Hall, Inc. All rights reserved.

8.4 E-mail Marketing Fast, cheap, far-reaching Define the reach – The span of people you would like to target, including geographic locations and demographic profiles Determine the level of personalization – Personalized direct e-mail targets consumers with specific information and offers by using customer names, offering the right products at the right time and sending promotions Response rate – Shows campaign success or failure by measuring the percentage of responses generated from the target market 2001 Prentice Hall, Inc. All rights reserved.

8.4 E-mail Marketing Global businesses send translated e-mails – Logos and AltaVista Outsourcing – Parts of a company’s operations are performed by other companies – Used when unmanageable e-mail volume and inadequate staff or technical support – Messagemedia, Digital Impact, iLux, 24/7 Media and e-Contacts Audio, video and graphics – MindArrow, inChorus and MediaRing.com – Customize based on receivers’ preferences and their readers’ A plug-in is a small application designed to extend the capabilities of another product, such as a Web browser 2001 Prentice Hall, Inc. All rights reserved.

8.4 E-mail Marketing Improve customer service – Add an e-mail link to Web site – E-mail systems set up so that incoming e-mails will be sorted automatically and directed to the appropriate people – Track location of orders, inform customers of when to expect delivery and possible delays and providing information such as the carrier’s name Permission-based marketing – A company can market its products and services to people who have granted permission – Internet mailing lists include contact information for people who have expressed interest in receiving information on certain topics 2001 Prentice Hall, Inc. All rights reserved.

8.4 E-mail Marketing – Opt-in e-mails are sent to people who "opt-in" to receive offers, information and promotions by e-mail PostMasterDirect.com will send your e-mail campaign to those on a list who have expressed interest in your business category Yesmail.com and Xactmail.com create lists of people who have opted-in to receive information about a certain subject Spamming – Mass e-mailing to customers who have not expressed interest – Can give your company a poor reputation 2001 Prentice Hall, Inc. All rights reserved.

8.4 E-mail Marketing Traditional direct marketing – Includes sending information by mail and using telemarketers to contact prospective customers – Used in conjunction with e-mailing to reach largest audience – Direct mailing often more expensive, more difficult to analyze and has lower response rate than direct e-mailing Direct mail specialists: Eletter and MBS/Multimode E-mail can arrive if recipients are busy or away, receivers can read e-mails at their convenience Telemarketing – Can be more expensive than e-mailing – Offers benefit of being interactive – People likely to answer phone whereas can ignore e-mail 2001 Prentice Hall, Inc. All rights reserved.

8.5 Promotions Online and offline e-business promotions – Attract visitors to sites and may influence purchasing – Be sure customers are loyal to company, not reward program – Give away items that display company logo Branders.com, iSwag.com Frequent-flyer miles – Offered to consumers for making online purchases – Increase brand loyalty, offers a reason return visits – ClickRewards allows customers to accumulate ClickMiles Points-based promotion – Customer performs a prespecified action and receives points to be redeemed for products, services, rebates, discounts, etc. MyPoints 2001 Prentice Hall, Inc. All rights reserved.

8.5 Promotions Offer discounts when purchases are made online Offer free trials Online coupons for online shopping – Place coupons on sites to bring visitors to your site – Sites that advertise coupons include DirectCoupons, Coolsavings.com and valupage.com – Offer free promotional items: free.com, free2try.com and freeshop.com Online promotional tutorial containing information on ways to promote your site found at Promotion World 2001 Prentice Hall, Inc. All rights reserved.

8.6 E-business Advertising Traditional – Television, movies, newspapers and magazines Prime-time television slots most expensive times to air commercials – (monster.com advertisement) Establish and continually strengthen branding – Brand is a symbol or name that distinguishes a company and its products or services from its competitors and should be unique, recognizable and easy to remember Publicize URL on direct mailings and business cards Online advertising – Place links on other sites, register with search engines 2001 Prentice Hall, Inc. All rights reserved.

8.6.1 Banner Advertising Banner ads – Located on Web pages, act like small billboards, usually contain graphics and an advertising message – Benefits include: Increased brand recognition, exposure and possible revenue – Side panel ads or skyscraper banners Advertisements that lie vertically on Web sites – Banner advertisements are losing their effectiveness Industry has calculated click-through rates at around .5 percent – Place logo on banners, enhancing brand recognition 2001 Prentice Hall, Inc. All rights reserved.

8.6.1 Banner Advertising Banner Advertisements. (Courtesy of GaryCohn.com Marketing.) 2001 Prentice Hall, Inc. All rights reserved.

8.6.1 Banner Advertising Example of a panel ad. (Courtesy of Venture Capital Online, Inc.) 2001 Prentice Hall, Inc. All rights reserved.

8.6.1 Banner Advertising Inventive color schemes and movement – Flashing, scrolling text, pop-up boxes and color changes Pop-up box is a window containing an advertisement that appears separate from the screen the user is viewing, pops up randomly or as a result of user actions (can have a negative effect due to their intrusive nature) Determine the best position on sites for a banner – Web sites cluttered with ads annoy visitors Space can be more expensive during high traffic Exchanging banners with another site Adbility and BannerTips 2001 Prentice Hall, Inc. All rights reserved.

8.6.2 Buying and Selling Banner Advertising Buy advertising space on sites that receive a large number of hits and target a similar market Selling ad space provides additional income Monthly charges for online advertising rarely used CPM (cost per thousand) – A designated fee for every one thousand people who view the site on which your advertisement is located 2001 Prentice Hall, Inc. All rights reserved.

8.6.2 Buying and Selling Banner Advertising Unique visitors versus total number of hits – Visiting any site registers one unique visit – Hits are recorded for each object that is downloaded – To determine the value of a Web site for advertising purposes, use the number of unique visitors, not total hits Advertising payment options – Pay-per-click: you pay the host according to the number of click-throughs to your site – Pay-per-lead: you pay the host for every lead generated from the advertisement – Pay-per-sale: you pay the host for every sale resulting from a click-through 2001 Prentice Hall, Inc. All rights reserved.

8.6.2 Buying and Selling Banner Advertising Selling advertising space – Provide appropriate contact information on your Web site – Register with organizations that will sell your space for you These companies typically charge a percentage of the revenue you receive from the advertisements placed on your site ValueClick, DoubleClick, AdSmart and LinkExchange 2001 Prentice Hall, Inc. All rights reserved.

8.6.2 ValueClick Feature ValueClick acts as a broker for people who want to buy and sell advertising space Gives you the option of targeting specific markets To buy advertising through ValueClick: – Design a banner – Contact a representative of ValueClick to determine what program best fits your advertising needs – Pre-pay for the service based on the number of visitors you want to receive, a minimum fee is required 2001 Prentice Hall, Inc. All rights reserved.

8.6.2 ValueClick Feature ValueClick’s home page. (Courtesy of ValueClick, Inc.) 2001 Prentice Hall, Inc. All rights reserved.

8.6.2 ValueClick Feature Offers many segmented markets for advertising – Segmented markets are people or companies that are grouped together based on similar characteristics Earnings depend on number of click-throughs resulting from the advertisements Pays host monthly if revenues are greater than certain amount Offers four options for publishing advertisements on your site – ValueClick Affiliate, Premium, AdVantage and AdVantage Plus programs 2001 Prentice Hall, Inc. All rights reserved.

8.6.3 Media-Rich Advertising Webcasting – Involves using streaming media to broadcast an event over the Web – Streaming video simulates television, streaming delivers a flow of data in real time. Resource Marketing, Clear Digital, Navisite, Cyber-Logics, www.streamingmedia.com and Macromedia – Many people have relatively slow Internet access The slower the connection, the more disconnected the video appears – Victoria’s Secret Webcast most popular ever held on Web 2001 Prentice Hall, Inc. All rights reserved.

8.6.3 Media-Rich Advertising Bursting – There is a substantial build up of content at the receiving end, causing a video to appear smoother Burst.com Cross-media advertising or hybrid advertising – Involves using a combination of rich media (such as audio, video, images and animations) and traditional advertising forms (such as print, television and radio advertisements) to execute an advertising campaign – Involve consumers in the advertising process Nike WebRIOT, a game show on MTV H2O Design and Lot21 2001 Prentice Hall, Inc. All rights reserved.

8.6.3 Media-Rich Advertising Interactive television advertising – Allows people viewing television to interact with what they are seeing on the screen – Consumers have the ability to choose to learn more about an offer, make a purchase or even request that customer service representatives contact them – RespondTV 2001 Prentice Hall, Inc. All rights reserved.

8.6.4 Wireless Advertising Wireless Internet in early stages – Advertising companies are preparing to take advantage of this medium SkyGo – Wireless advertising company offering real-time wireless delivery and tracking of permission-based campaigns Adbroadcast – Pays people who opt in to receive advertisements on cell phones GeePS – Offers brick-and-mortar stores wireless advertising targeted toward specific markets – Sends relevant wireless ads to customers as they enter the proximity of a store 2001 Prentice Hall, Inc. All rights reserved.

8.7 e-Business Public Relations Public relations (PR) – Keeps customers and company current on latest information about products, services and internal and external issues such as company promotions and consumer reactions Methods – – – – – Chat sessions Bulletin board Special events or functions on Web site Trade shows and exhibitions Press releases (can be delivered over Web, PR Web) Printing and distribution, MediaMap Add link that connects to all press releases – Video clips PR Newswire and Business Wire 2001 Prentice Hall, Inc. All rights reserved.

8.7 e-Business Public Relations Crisis management – Another responsibility of PR, is conducted in response to problems the company is having – Bridgestore/Firestone, Inc. Outsourcing public relations 2001 Prentice Hall, Inc. All rights reserved.

8.8 Business-to-Business (B2B) Marketing on the Web (B2B) marketing – Consider distributors, resellers, retailers and partners – Selling to someone who is not the direct user – Usually more than one person involved in purchasing process – Businesses making large purchases depend on suppliers and expect reliability and delivery of quality products and services on time – Personalization Intranets and extranets Industry marketplaces – Construction.com, Worldwideretailexchange.com – Connect Inc, Concur Technologies and Ariba 2001 Prentice Hall, Inc. All rights reserved.

8.9 Search Engines Search-engine ranking important to bring consumers to a site – Method used by search engines to rank your Web site will determine how "high" your site appears in search results Make sure all Web pages have been published on the Web and linked correctly By registering with search engines a company will increase traffic to its site 2001 Prentice Hall, Inc. All rights reserved.

8.9.1 META Tags META tag – An HTML tag that contains information about a Web page – Does not change how Web page is displayed – Can contain description of page, keywords and title of page Most search engines rank your site by sending out a spider to inspect the site – The spider reads the META tags, determines the relevance of the Web page’s information and keywords and ranks the site according to that visit’s findings Examine competitors’ sites to see what META tags they are using Top ten results 2001 Prentice Hall, Inc. All rights reserved.

8.9.2 Search-Engine Registration Submit keywords and a description of business Search engine will add information to its database Registering will increase the possibility that a site will make an appearance in search-engine results Many search engines do not charge a fee for registering – AltaVista, Yahoo!, Lycos, Excite, Google and Ask Jeeves Ask Jeeves uses natural-language technology that allows people to enter their search subjects in the form of questions Metasearch engines – Aggregate results from a variety of search engines – Metacrawler and FrameSearch.net 2001 Prentice Hall, Inc. All rights reserved.

8.9.2 Search-Engine Registration Search Engine AltaVista www.altavista.com Registration Requirements and Details In theory, you should not have to register with AltaVista. The search engine should be able to find your site on its own, because it sends out crawlers that find sites and add them to AltaVista’s index. The crawler follows links from other pages it finds, and that is how AltaVista adds more URLs to its index. So, if many pages are linked to your site, your site is more likely to be found. If not, it will never be found. To register, enter your URL in the form located at www.altavista.com/cgi-bin/query?pg addurl. After this process is complete, AltaVista sends out crawlers to find the site, learn what is included in the content and add the URL to the index. Submission is free. Lycos www.lycos.com Lycos requires you to submit a URL for each page of your site, as well as your email address. Lycos then sends a spider to your site. In approximately two to three weeks, your site will be entered into Lycos’s catalog. Registration is free. If your site is not live for a certain amount of time, the spider cannot connect to it. Your site then gets deleted from the catalog. Ask Jeeves www.ask.com To submit a URL to Ask Jeeves’ knowledge base, you send an e-mail including your URL and a short description of your site to Ask Jeeves. Human editors then review your request by visiting your site and checking if your site matches certain guidelines including quick loading time, regular updating of content and free features without the requirement of user registration. Ask Jeeves also uses its patented popularity search technology to determine which sites have provided the best answers to Ask Jeeves users. In addition to the previous guidelines, e-commerce sites should meet additional guidelines including security requirements, customer service and credibility as an e-commerce site. Fig. 8.4 Search engines and their registration processes. 2001 Prentice Hall, Inc. All rights reserved.

8.9.2 Search-Engine Registration Search Engine Yahoo! www.yahoo.com Registration Requirements and Details Before registering with Yahoo!, you should first check if your site is already in Yahoo!’s database. It is possible that your site has been suggested to Yahoo! by another user. If your site is in a foreign language, it may be located in an International Yahoo!. If it is in an International Yahoo! it will not be added to www.yahoo.com. Once you have determined that your site is not in Yahoo!, you should find an appropriate category in the Yahoo! directory to list your site. You can do this by going to the bottom of the category page and clicking on the link for suggesting a site. Yahoo! provides suggestions to help you determine where your site should be placed. Suggesting sites is free. To suggest a site using the normal process, you are only required to provide the name, URL and short description of the site. When using the Business Express you are required to pay a fee, guaranteeing that your site will be reviewed within seven business days. GoogleSM www.google.com Visit www.google.com/addurl.html to add a URL to Google. This search engine requests your URL and comments about your site (for Google’s information), however it does not use the comments submitted for indexing purposes. Google does not index every site submitted. The engine only requires the submission of a site’s main page because its crawler, Googlebot, will be able to find the rest of your pages as it searches all possible links. Google ranks pages by the number of connections between Web sites, with the theory that the more connections to a site, the more popular and useful the site. 28 This is different compared to other search engines that use META tags and site descriptions as a method of ranking. Fig. 8.4 Search engines and their registration processes. 2001 Prentice Hall, Inc. All rights reserved.