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									         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?

             Part 1 - Introduction to Ecommerce I   2
                       Perry & W Robson
     Web Marketing

•   The Original WWW
•   Web and Marketing
•   Stages of Web Publishing
•   Break




       Part 1 - Introduction to Ecommerce I   3
                 Perry & W Robson
        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
                    Part 1 - Introduction to Ecommerce I   4
                              Perry & W Robson
      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
                 Part 1 - Introduction to Ecommerce I   5
                           Perry & W Robson
      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
                    Part 1 - Introduction to Ecommerce I   6
                              Perry & W Robson
       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
  uncertainties Part 1 - Introduction to Ecommerce I 7
                      Perry & W Robson
     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
                Part 1 - Introduction to Ecommerce I   8
                          Perry & W Robson
           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?
                Part 1 - Introduction to Ecommerce I   9
                          Perry & W Robson
      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
                          Part 1 - Introduction to Ecommerce new technology 10
                                    Perry & W Robson
          A Dot Com World

• The virtuous Web cycle leads to rapid
  growth of
  – Consumer access
  – Internet usage
  – Content online




              Part 1 - Introduction to Ecommerce I   11
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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
                         Part 1 - Introduction to Ecommerce I              12
                                   Perry & W Robson             Hosts
                  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 <            guess” as of May 1999 is
  4% of the world‟s adult
                                           165 million.
  population is online
                                           Source: NUA
• 50% of users think the Net
  is a “necessity”
                                          Worldwide Online Population
                      Part 1 - Introduction to Ecommerce I      13
                                           – Continuing Fascination
                                Perry & W Robson
                  Consumer Access

                                                 Figure 1.6
• Spring 1998, the size of the
  Web was estimated at 300                            Size in millions of distinct static pages

  million pages                                                0        50    100         150         200    250      300


• Growth rates in content
                                        Pages found in all 4   1
                                                               2
                                             engines           2

  exceed growth rates in Web                       Infoseek
                                                                   16
                                                                     25

  access and the number of
                                                                       35
                                                                                                               1997

  users
                                                                     28
                                                     Excite          30                                        1998
                                                                      33                                       1999

• From June 1997 to March                            HotBot
                                                                        42
                                                                             80

  1998, Web content grew at
                                                                                  100

                                                                      35

  120%
                                                  Alta Vista                      100
                                                                                    110


• More importantly, the types        Pages found in at least                  90
                                                                                                160
                                     one of the four engines                                           195

  and creativity of Web site                                                            125

  content have blossomed
                                          Size of static web                                           200
                                                                                                                   275




                                                       Rapid Growth in Web
                      Part 1 - Introduction to Ecommerce I               14
                                Perry & W Robson             Content
 Stages (or Generations) of
         Websites

• Stage I: Publishing sites

• Stage II: Databases and Forms

• Stage III: Personalization




           Part 1 - Introduction to Ecommerce I   15
                     Perry & W Robson
      Stage I: Publishing Site




                                        Pictures/Information
Info Links

     http://www.france98.com/french/index.html
              Part 1 - Introduction to Ecommerce I         16
                        Perry & W Robson
             Stage I



What makes this a Stage                       I
       Website ?


 Organises, Broadcasts and
 Disseminates Information
       Part 1 - Introduction to Ecommerce I       17
                 Perry & W Robson
      Stage II: Databases and Forms


To find out the travel distances between the host cities:

      Select your starting point

      Select your destination

      Bordeaux
      Paris
      Toulouse
      Marseilles


      Toulouse      Marseille – 404km
                    Part 1 - Introduction to Ecommerce I   18
                              Perry & W Robson
              Stage II



 What Makes this a Stage                         II
         Website?



Ability to retrieve information to
     respond to user requests
          Part 1 - Introduction to Ecommerce I        19
                    Perry & W Robson
Stage III: Personalization



                               If you area team WC98
                               member and are using a
                               computer other than the
                               one you originally joined
                               WC98, enter your
                               nickname and password
                               now.



       Part 1 - Introduction to Ecommerce I         20
                 Perry & W Robson
          Stage III



What Makes this a Stage                        III
         Website?


   More than ask-respond
        Anticipates
         Suggests
        Part 1 - Introduction to Ecommerce I         21
                  Perry & W Robson
         Website Marketing
         and Design

           Poitiers, September 23-27


  Session 2 – The Web and
Marketing, Intro to eCommerce
                                       1
    Web Marketing

• Marketing Principles on the Web
• Online Consumer Behavior
• eCommerce




      Part 1 - Introduction to Ecommerce I   23
                Perry & W Robson
The Dell Triangle: Figure 4.1




        Part 1 - Introduction to Ecommerce I   24
                  Perry & W Robson
                Online Marketing
                                           Figure 4.2
• Direct interaction            Communication Drives Usage
  creates customer value
  and sets the stage for
  relationship building




                                 Customer Contacts
• This creates
  opportunities for
  – personalization
  – community building
  – real-time marketing
                                                     Interactivity
                                             Customers use sites more
                                               as companies add more
                    Part 1 - Introduction to Ecommerce I          25
                              Perry & W Robson interactive content
 Online Behavior & Interactivity

• Interactivity depends on
  – Direct communication
  – Individual choice
  – Friendly technology
• Let‟s take a look at each of these




              Part 1 - Introduction to Ecommerce I   26
                        Perry & W Robson
                   Direct Communication
                         From Broadcast to Dialogue

Figure 4.3




                                                                  One-to-One Interactive
 One-to-Many Broadcast      Direct Targeting (one
                                                                  (unique messages to
 (same message to all)      direction, different messages)
                                                                  individuals)

   • Dialogue is possible when there‟s direct
     communication between marketer and customer
        – Intermediaries can filter or block feedback

                           Part 1 - Introduction to Ecommerce I                            27
                                     Perry & W Robson
   Comparing Communication Methods
• Hoffman & Novak (1996): Compared traditional
  and online communication methods
• They looked at
   – Communication model: one-to-many  one-to one
  – Media symmetry: is the information flow symmetric?
  – Media content: use of text, images, audio, video
  – Diversity of information: the number of information
    sources available through the medium (billboards vs.
    cable TV or the Web)
  – Communication timing: synchronous vs. asynchronous
  – Personal interactivity: person-to-person vs.
                          interaction
    machine-mediated- Introduction to Ecommerce I
                   Part 1                          28
                      Perry & W Robson
    Comparing Communication Methods

• The Web is a
  flexible
  technology
• It‟s evolving into
  a personal and
  dynamic
  communication
  medium



                       Part 1 - Introduction to Ecommerce I       29
                                 Perry & W Robson             Figure 4.4
               Individual Choice
            Selection + Suggestion = Value

• The modern economy presents a staggering
  amount of variety
  – Typical supermarkets contain 25,000 different
    items
  – Variety expands even further without the physical
    constraints of inventory and shelf space
• Choice is confusing without a way to compare,
  evaluate & select among the huge number of
  possibilities
  – New technologies combine selection and suggestion
  – Enable consumers to make more effective choices
                  Part 1 - Introduction to Ecommerce I 30
                            Perry & W Robson
      Impact on Consumer Choice

Selection                          Suggestion
 Shopping on demand                Personalization
 Greater value                     Customization
  consciousness
 Power shift to                    Automation of
  consumers                          consumption
"Friction-Free Capitalism"                "Captive Consumers"


                 Part 1 - Introduction to Ecommerce I           31
                           Perry & W Robson
             Friendly Technology
  Technology is technology only if it was
      invented after you were born
• Televisions, radios, telephones, and VCRs have
  market penetrations > 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
  behavior online Part 1 - Introduction to Ecommerce I 32
                       Perry & W Robson
     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




                       Part 1 - Introduction to Ecommerce I        33
                                 Perry & W Robson
         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

                   Part 1 - Introduction to Ecommerce I               34
                             Perry & W Robson
    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?
           Part 1 - Introduction to Ecommerce I      35
                     Perry & W Robson
     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
            Part 1 - Introduction to Ecommerce I   36
                      Perry & W Robson
          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
                 Part 1 - Introduction to Ecommerce I 37
                        Perry & W Robson
        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




                 Part 1 - Introduction to Ecommerce I   38
                           Perry & W Robson
               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
                Part 1 - Introduction to Ecommerce I   39
                          Perry & W Robson
            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


               Part 1 - Introduction to Ecommerce I   40
                         Perry & W Robson
      eCommerce

• Introduction to eCommerce
• eCommerce Overview
• eCommerce Terminology




     Part 1 - Introduction to Ecommerce I   41
               Perry & W Robson
        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
                         Part 1 - Introduction to Ecommerce I   42
                                   Perry & W Robson
       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

                    Part 1 - Introduction to Ecommerce I   43
                              Perry & W Robson
          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
                  Part 1 - Introduction to Ecommerce I    44
                                Perry & W Robson
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


                Part 1 - Introduction to Ecommerce I   45
                          Perry & W Robson
                      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



                       Part 1 - Introduction to Ecommerce I                      46
                                 Perry & W Robson
                                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/
                          Part 1 Introduction to Ecommerce I             47
                                  Perry & W Robson
           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




               Part 1 - Introduction to Ecommerce I   48
                         Perry & W Robson
              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
               Part 1 - Introduction to Ecommerce I   49
                         Perry & W Robson
  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

              Part 1 - Introduction to Ecommerce I   50
                        Perry & W Robson
       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




               Part 1 - Introduction to Ecommerce I                       51
                         Perry & W Robson
          EC Could Be Seen As:


                       Economic Aspects
                   Ecommerce as Business Model
                   E-Business- Ecommerce Concept
                   Relevance                 Virtual Transaction
                           Ecommerce-Strategy
                                                Communities
                             Processes
                     EC-Platforms               Marketing
                                EC-Applications                      Pagination
     Network                       Intranet
                                   Extranet                          Visualizing
Architecture                                              Screens
                                   Dialogs
 Technical Aspects:                                            Media Aspects:
                                      User Guides
Information and Tele-                                         Multimedia-Design
  Communications                                             and User Interaction
                                                    Style and Tone
               Programming


                      Part 1 - Introduction to Ecommerce I                          52
                                Perry & W Robson
         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
                  Part 1 - Introduction to Ecommerce I                53
                            Perry & W Robson
   So, EC world is Interdisciplinary

• Consumer behaviour                    •    Management
  & psychology                          •    Business law
• Accounting &                          •    Marketing
  auditing
                                        •    Finance
• Production/Logistic
                                        •    Economic
• Information systems
                                        •    Computer sciences
• Business ethics


              Part 1 - Introduction to Ecommerce I         54
                        Perry & W Robson
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
               Part 1 - Introduction to Ecommerce I   55
                         Perry & W Robson
                Examples


• www.ebay.com – person to person EC
• www.amazon.com - retail
• www.yahoo.com - ecommerce portal




            Part 1 - Introduction to Ecommerce I   56
                      Perry & W Robson
    Website Marketing
    and Design

      Poitiers, September 23-27


End of Sessions 1-2:
      LUNCH!
                                  1

								
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