Chapter 4:Marketing on the Web

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How do you reach customers?• Identify groups of potential customers

• Select the appropriate media

• Build the right message (write to your reader)

– Content (e.g., product presentation)

– Context (e.g., trust)

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Product-Based Marketing Strategies• The product-based strategy views the world from

the perspective of the firm and its products

– For example, stores believe customers organize their needs into product categories and they organize their sites accordingly

– Graduation gift vs something specific

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Customer-Based Marketing Strategies

• How do you build a customer-based marketing strategy?– Basic approaches start by identifying groups

of customers who share common characteristics*

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Market Segmentation• Market segmentation is dividing the pool of

potential customers into segments and targeting specific portions of the market with advertising messages– Segments are usually defined in terms of

demographic characteristics– Micromarketing is a term suggesting that we can

target very small market segments

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Market Segmentation• Geographic segmentation: Where are they?

• Demographic segmentation: Income, race, education, etc.

• Psychographic segmentation: variables such as social class, personality, or lifestyle

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Geographic Segmentation

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Trust and Media Choice• The Web is an intermediate step between mass

media and personal, FTF, contact– Companies can use the Web to capture some of the

benefits of personal contact, yet avoid some of the costs inherent in FTF customer management

– Trust is often related to proximity

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• Banner ad– Small rectangular ad

• Interactive marketing unit (IMU) ad formats– Standard banner sizes

• Banner exchange network– Coordinates ad sharing

• Banner advertising network – Acts as a broker between advertisers and Web sites

that carry ads

Advertising on the WebTerms and Concepts

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Advertising on the WebTerms and Concepts

• Cost per thousand (CPM)– Pricing metric used when a company purchases mass

media advertising• Trial visit

– First time a visitor loads a Web site page• Page view

– Each page loaded by a visitor• Impression

– Each time the banner ad loads

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• Pop-up ad – Appears in its own window when the user opens or closes a

Web page• Ad-blocking software

– Prevents banner ads and pop-up ads from loading• Interstitial ad

– When a user clicks a link to load a page, the interstitial ad opens in its own browser window

• Clickstream– Information (e.g., page visits, duration, etc.) that a Web site can

gather about its visitors

Advertising on the WebTerms and Concepts

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Site Sponsorships• Advertisers are given an opportunity to

sponsor all or part of a website. – Helpdesk.com

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E-Mail Marketing• Dangerous Territory or Priceless

Opportunity?– Email is cheap! But, customers hate spam

• How should a firm use email?– Opt-in e-mail is should be the rule.

• Conversion rates are higher and complaints are fewer

– Combine email content with appropriate, targeted ads

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Technology-Enabled Customer Relationship Management

• Customer relationship management (CRM): processes and technologies used to manage relationships with clients– Relationship management: collecting, managing, and

analyzing information about a customer’s behavior, buying patterns, etc., and using it to customize the interactions with the customers

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Search Engine Positioning and Domain Names

• Search engines have 3 major parts:– Spiders, crawlers, or robots

• Programs that automatically searches the Web

– Index or database• Storage element of a search engine

– Search utility• Uses terms provided to find Web pages that match

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Search Engine Positioning and Domain Names

• Search engine positioning or search engine optimization is the process of tuning a site so that it is listed in the top 10 of results

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Paid Search Engine Inclusion and Placement

• Paid placements involve purchasing a top listing on the results pages for a particular set of search terms– e.g., Google Adwords

• Search engine placement brokers are companies that aggregate inclusion and placement rights on multiple search engines

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Web Site Naming Issues• Domain names

– An important part of selling online can be the domain name for the site.

• If you want a car, might you give cars.com a try?

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URL Brokers and Registrars• URL brokers

– Sell, lease, or auction domain names

• ICANN– Maintains a list of accredited registrars

• Domain name parking– Permits the purchaser of a domain name to maintain a

simple Web site so that the domain name remains in use