Website Marketing
and Design
Poitiers, September 23-27
Session 1 - Introduction to the
Internet, Web and eCommerce
1
Introduction to Course
• Tom Leuchtner - Instructor
• Course Topics:
– Web/Internet Marketing
– Practical Aspects of Commerce on the Web
– Web Design
• All information can be found on web:
http://www.leuchtner.com/course2002
• Program for week
• Questions?
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Web Marketing
• The Original WWW
• Web and Marketing
• Stages of Web Publishing
• Break
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The Original WWW
• It‟s 1922
• Radio suddenly transitions from a technology used
primarily by the military and the shipping industry to a
consumer and business phenomenon
• At the end of 1921, there are 5 radio stations
• A year later, there are 575
• Starting radio stations is the height of
entrepreneurship
• Listening to radio is a runaway consumer fad
• “Combing the ether” is the hit of the day
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The Original WWW
• Radio‟s impact on 1920s society
– It changes the way people think about distance and
time
– Simultaneity no longer requires proximity
– Global events are experienced as they happen
– Performances in different cities can be heard in
the neighbor‟s living room
– Fast-breaking world stories and even the local
weather are available at the flip of a switch and
the turn of the dial
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The Original WWW
• Radio changed business, especially marketing
– It accelerated the economy‟s transition to a mass market
– It facilitated the creation of national brands
– Firms could launch national marketing campaigns
simultaneously
– New product store introductions could be synchronized with
ad campaigns to build consumer interest
– Product positioning became more flexible
• Businesses learned to use this new, powerful method
of reaching customers
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The Original WWW
• As an industry, radio struggled with
generating a self-sustaining revenue base
– In 1926, radio stations were failing at a rate of
15% per month
– Consumers still rushed to buy radios
– Ultimately, national networks of stations emerged
– A combination of national and local advertising
made radio profitable
• Internet marketing shows many of these same
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The Real World Wide Web
• The Internet changes the way companies
connect to their customers
• It expands the opportunities for branding,
innovation, pricing, and selling
• It leads to new ways of thinking about time
and distance
• It opens up new distribution channels and
markets
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Virtuous Web Cycle
• Is a business system with positive feedback
• Each element in the business system feeds
off another element in the system and feeds
into yet another element in the system
• If the cycle is strong enough, it can actually
be a self-fulfilling expectation
Huh?
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Virtuous Cycle for Net Growth
Let‟s look at how it works
• It starts with user
fascination
Consumer
and Web Sites • Providers see the
Business and Web
Internet Content
developing opportunity and
Access rush to create new brands
& services, which creates
more hype
• The buzz feeds back into
Popular consumers‟ interest and
Fascination
desire to experiment with
the I
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A Dot Com World
• The virtuous Web cycle leads to rapid
growth of
– Consumer access
– Internet usage
– Content online
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Consumer Access
Figure 1.4
• The past five years have
seen rapid growth in
– Network size Growth of World Wide Web Domains
– Users on networks 50
– Network activity 40
46% growth in 1998
• Between January 1994
Millions
30
and January 1999,
Internet hosts grew from 20
2.2 million to over 43 10
million 0
• A 46% growth rate in
92
93
94
95
96
97
98
99
1998
1/
1/
1/
1/
1/
1/
1/
1/
Online Access Growth in Net
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Consumer Access
Figure 1.5
• The Internet user base has
grown rapidly as well HOW MANY ONLINE?
• Worldwide, the number of
users was estimated to be >
160 million in March, 1999 The art of estimating the
• Over 90% of the users on number of people online
the Net have joined in the throughout the world is
last 5 years inexact. An “educated
• More growth is possible, as 85%
• The Web must become even easier & friendlier
to reach the 98% household penetration of TV
• As Web access devices becomes more
appliance-like, increasing numbers of
consumers will be online
• Internet marketers must understand consumer
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Web Stage and User Challenges
• The easiest type of online Figure 4.6
consumer activity is when loyal
and experienced users perform
simple tasks
• More complicated tasks require
marketers to develop better
user interfaces
• More risky transactions
require marketers to establish
trust and pay attention to
customer needs
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Online Consumer Behavior
The Media Equation
Media = Real Life
Byron Reeves & Cliff Nass
• Users relate to virtual information in many of the
basic social ways they interact with people in their
everyday lives
• Users treat machines and software like people
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Online Consumer Behavior
• The human brain
isn‟t well adapted
to 20th century
media
Why Are There • New media is
Social Responses engaging old brains
to Information
Technology?
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Online Consumer Behavior
• Manners are critical in
online & computer
Simple messages
Technological • Good Manners = positive
Features Can responses
Elicit Strong • Behavior that is
considered rude in real
Social Responses life is considered rude
onscreen
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Online Consumer Behavior
Social Cues
• E-mail lacks the social cues that a phone
conversation or a face-to-face meeting provide
• Misunderstandings develop more easily because
people it‟s harder to judge confusion
– People don‟t get the signals that make them stop and
explain themselves in face-to-face discussion
• People tend to use stronger language and
express themselves more frankly
• And they tend to circulate their thoughts to a
much wider audience
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Online Consumer Behavior
Cognitive Difficulty
• One of the challenges of providing online
information is making it accessible to users
• Providing effective search functionality is key
• Site developers must understand how their
users are likely to search and browse
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Who‟s Online?
• High income
• Above average education
• Heaviest users: 30-49 years old
– students & kids also online
– seniors & older middle-aged less likely
• Gap between male & female is closing
• US dominates
– wealthiest European & Asian countries
coming online quickly
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As Time Passes
• More people online
• More people connecting at higher speeds
• More people using the Web to shop and
transact business
– >40% of those with 4+ years experience on the
Web regularly shop and conduct Web commerce
– as opposed to only 12% of people who have
been online for <1 year
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eCommerce
• Introduction to eCommerce
• eCommerce Overview
• eCommerce Terminology
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How Companies Organize Net Activities
•Visible to the public
•Managed by marketing
•Visible to suppliers and B-
to-B customers
•Supply chain management
•Managed by marketing and
logistics
•Internal to a company
•Available only to employees
•Often managed by HR
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eCommerce (EC) Definition
• Ecommerce is any form of business
transaction in which the parties interact
electronically rather than by physical
exchanges or direct physical contact
• It is one of those rare cases where
changing needs and new technologies come
together to revolutionise the way in which
business is conducted
European Commission (1997)
http://www.ispo.cec/be/Ecommerce/whatis.htm
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Ecommerce Terminology
E-Business
E-
E-Commerce
Procurement
Business
Extranet Enterprise Internet Customers
Partners
Business-to-Business Business-to-Consumer
Consumer-to-Consumer
Intranet
workers
Associations E-Government Citizens
• ECommerce
– Using Information Technology to support external business
processes (eg marketing/selling products &/or services)
• EBusiness
– Supporting both internal and external business processes
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It includes at least the following
• The exchange of goods & services across an
interactive digital network
• A computer-mediated & virtual market with
new relationships among businesses and
consumers
• A digital means of exchange (digital money,
ecash, secure credit card transactions)
• The increasing importance of digital information
as a commodity
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eBusiness model
• Covers the support of the processes &
relations between business partners, co-
workers and customers by electronic
media
Business Partners Extranet Enterprise Internet Customers
Intranet
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eCommerce
• Is that part of the eBusiness which is
aligned to the negotiation and settlement
of obligatory business transactions.
Information
Agreement Settlement
Knowledge Intention
Informing Goal Definition Negotiating Execution
Example: -http://www.amazon.com/
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Further e-terms
• E-Procurement
– the electronic support of the procurement
processes (purchase) of an enterprise
• E-Marketing
– the electronic support of the sales &
marketing (and services) processes of an
enterprise
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A Revolution?
• Traditional commerce:
– Physical product: a tangible, material object
– Physical process: interactions between
buyers, sellers, producers
– Physical agent: People in a storefront
• eCommerce:
– Digital product: a digital object
– Digital process: interactions between buyers,
sellers, producers online
– Digital agent: web storefront
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An Ecommerce (EC) manifesto:
• Organisations must change to take
advantage of EC opportunities
• Organisations must take EC into account
when developing strategy
• EC is the strategic perspective that all
firms must adopt, now & in future
• An organisation that does not explicitly
consider EC as a strategic imperative is
making a critical error
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EC evolution in waves
First Wave - Second Wave - Third Wave - A New
Traditional EDI Electronic Commerce Electronic Society
place orders Elements in 1st wave Elements in 2nd wave
shipment plus plus
notification electronic shopping cashless transactions
invoicing banking and financial high transaction integrity
examine inventory institutions widespread use of
availability transacting with virtual intelligent agents
pre-established strangers continuous testing
business partners increased information agents
sharing
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EC Could Be Seen As:
Economic Aspects
Ecommerce as Business Model
E-Business- Ecommerce Concept
Relevance
Ecommerce-StrategyVirtual Transaction
Communities
Processes
EC-Platforms Marketing
EC-Applications Pagination
Network Intranet
Extranet Visualizing
Architecture Screens
Dialogs
Technical Aspects: Media Aspects:
User Guides Multimedia-Design
Information and Tele-
Communications and User Interaction
Style and Tone
Programming
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Levels of eCommerce
Company National International
promotion Electronic Electronic
distribution distribution
Pre/post sales National International
support payment payment
Sales/
Electronic Simple Shared business
presence transactions processes
„Standard‟, simple, „Custom‟, complex,
Many instances Few instances
http://www.ispo.cec.be/ecommerce/introduc.htm
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So, EC world is Interdisciplinary
• Consumer behaviour • Management
& psychology • Business law
• Accounting & • Marketing
auditing
• Finance
• Production/Logistic
• Economic
• Information systems
• Computer sciences
• Business ethics
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Producing typical career profiles
• Generalist
– eBusiness-responsible person (integration of
the divisions)
– Project manager eCommerce
– Sales manager eCommerce Products
– Director/conductor of a special product group
(e.g. Smartcards)
• Specialist
– Web designer / Web master
– Web editor
– Internet Service Provider
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Examples
• www.ebay.com – person to person EC
• www.amazon.com - retail
• www.yahoo.com - ecommerce portal
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Website Marketing
and Design
Poitiers, September 23-27
End of Sessions 1-2:
LUNCH!
1