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Intro to WEB Marketing

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Yahoo! brand extensions provide value added for users. Yahoo! games. Yahoo! clubs. Yahoo! chat ... Yahoo! leverages its brand and ability to draw traffic to ... – PowerPoint PPT presentation

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Title: Intro to WEB Marketing


1
Intro to WEB Marketing
CCE Short Course 14 Feb 2001 Instructor Dr Dav
id Fortin
2
On the Menu
  • Morning
  • What is the Web?
  • Key Issues about Web marketing
  • Various Models of business
  • Afternoon
  • Creating your own web page

3
About the Author
  • David is Senior Lecturer at the University of
    Canterbury, New Zealand and director of the
    Web-L_at_b Consumer Research Project

www.mang.canterbury.ac.nz/weblab
4
What is the World Wide Web?
The World Wide Web (WWW) is a global interactive,
dynamic, cross platform, graphical hypertext
information system that runs on the Internet.
5
Historical Perspective
  • The Internet is the backbone
  • Originally linked universities worldwide after
    the second world war
  • Web is a protocol using HTML to ride the
    Internet
  • A file is sent over to a local computer for
    viewing

6
Some Internet Statistics
  • Conservative estimate of over 500 million users
    worldwide
  • 5.2 million in Australia
  • 800,000 in NZ
  • 80,000 shop online every month
  • 1998 19million in sales
  • 2002 990million projected

7
Online Users Expanding
46,000
8,000
436
1996
8
Internet Statistics
  • Consult www.iconocast.com or
  • www.emarketer.com for resources

9
The Demographics of Web Users
Gender
Education
Key Demographic Variables of Web Users
Income
Computer Ownership
Computer Experience
Computer Expertise
10
Where Are WWW Users Located?
Oceania 4

Other 2
Asia 2
Canada Mexico 8
Europe 11
United States 73
11
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12
Electronic Marketplace
  • New medium - wave of the future
  • Expectations are different
  • Users have time to evaluate
  • Growing and evolving rapidly amidst emerging
    technologies

Information Highway
13
Establishing a Quality Internet Presence with a
Purpose
Internet
My Home Page
Client Server
14
World Wide Web Site
  • Your storefront (Web Site)
  • Doorway to a global marketplace
  • Success depends on its appearance, ease of
    navigation and message conveyed
  • Home Page is a key ingredient and should be
    designed with great care

15
How is Interactive Marketing Different ?
  • Capability to access and control content of
    information by the user
  • Focus on Interactivity

16
Comparing TV and WEB
  • Mass-Media
  • One-to-Many
  • Passive
  • No Feedback
  • Low Selectivity
  • Low Involvement
  • Customized Media
  • Many-to-Many
  • Active
  • Interactive
  • High Selectivity
  • High Involvement

17
Targeting your Market with a Product or Service
18
The Search for Information
  • Search Intensity Trade-off

19
Types of Users
  • BROWSERS
  • random navigation
  • entertainment-based
  • SEEKERS
  • task-oriented
  • information-based

20
Browsers and Seekers
  • Serendipitous navigation
  • Process over content
  • Hedonic component
  • Information goal
  • Minimize time
  • Specific, a priori

21
Priorities For Establishing a Successful Internet
Presence
  • Have a meaningful purpose for being on the
    Internet
  • Think of it as an outlet for further information
    in support of a campaign
  • Encourage Repeat Visits
  • Feedback Mechanism vital

22
The 3D Stance
23
Key Internet Tools for Business
  • World Wide Web
  • E-Mail
  • Search Engines
  • Listservs (Mailing Lists)
  • Newsgroups
  • FTP

Internet Kit of Tools
24
Communication via E-Mail
  • Know how to use it effectively - It can be
    your best friend or worst enemy
  • Proper netiquette
  • Establish Client Relationships
  • Client Feedback and Customer Satisfaction

25
Publicize your Website at Every Opportunity
  • Search Engines - Profile Description, score
  • Internet Yellow Pages, Business Pages
  • Listservs
  • Internet Malls
  • Electronic Bulletin Boards
  • All Print and Broadcast Ads

26
Quality Web Site includes
  • User-friendly Homepage
  • Company profile/ Overview
  • Products and Services
  • Order Form
  • Client feedback form/ surveys
  • Press releases/ Announcements
  • Special Offers
  • Links to other pages or sites

Door to the World
27
Update Your Site Frequently !
  • Remember the Internet is dynamic, competition
    can be fierce and people get bored quickly and
    wont stay long if something doesnt catch their
    eye. If a website isnt updated
    frequently you wont get repeat customers !

New
28
On the Internet, Nobody Knows Youre A Dog
29
e-Commerce revolution or evolution?
  • Early days of radio and television
  • Novelty vs content

30
e-Commerce revolution or evolution?
  • Is everything Internetable??
  • Do we really need Italiancheese.com,
    Golfballs.com or newmousetrap.co.nz?
  • Filter is this a business that could have
    existed before the Net? If so, deep-six it
    right now!

31
Marketing Processes That Can Be Digitized
32
Business Models
  • Method of doing Business to generate revenue
    streams within the value-chain
  • Are there many models out there?, Yes
  • Is there a clear recipe for choosing one? No!
  • Are e-Business models all new? Of course not!

33
Business Models
  • Many are traditional, inspired by the bazaar
    economy or the mass media model
  • Old world models are rejuvenated
  • Auctions (eBay.com), Reverse Auctions with name
    your price (priceline.com, ewanted.com)

34
Business Models, Net History
  • Model 1 AOLs content business based on
    connect-time revenue splits
  • Model 2 Advertiser-driven build traffic, sell
    eyeballs. Good for portals, bad for all others.
  • Model 3 e-Commerce sell real products for real
    money! Assumes cost economies based on
    disintermediation lets be careful here….

35
Business Models, Net History
  • Model 4 e-Commerce never making a profit out of
    selling real products for real money! Focus here
    is on establishing relationships and estimating
    the lifetime value of a customer.
  • Concept of monetising
  • Freeonline.com.au, free-PC.com

36
Improvement-Based Biz Models
Use the Net to Improve Products and/or Services
Efficiency
Enhancement
  • Reduce costs
  • Free trial
  • Build brand
  • Build category
  • Enhance quality

Effectiveness
  • Support dealers
  • Support suppliers
  • Collect information

37
Revenue-Based Biz Models
Which Company Bears the Risk?
Risk Increases for the Web Site Being Paid
  • Sponsorship least risky fixed payment
  • Banner Ads payment depends on impressions
  • Prospect Fees Sales Commissions depend on
    success of site and advertiser

38
The Pace of E-Commerce
For e-commerce to continue to grow as quickly as
forecasters expect, online selling must excel on
the fundamentals that drive buyers
39
E-Commerce Takes Off
The Personalization/E-commerce Link
  • Concept of Mass-Customisation
  • Greater personalization leads to even more
    purchases and a higher customer lifetime value

40
Do You Yahoo?
  • For 50 of US Web users YES!!!
  • Yahoo! brand extensions provide value added for
    users
  • Yahoo! games
  • Yahoo! clubs
  • Yahoo! chat
  • Yahoo! auctions
  • Yahoo! Stores
  • Yahoo! leverages its brand and ability to draw
    traffic to generate multiple revenue streams
    Portal strategy

41
Successes
  • Worldwide travel, banking, trading the model of
    Buy/Sell Fulfillment
  • Books, CDs volume but not profitable
  • Niche propositions
  • www.sweet-seductions.co.uk
  • www.virtualvineyards.com
  • www.dailygrind.com

42
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43
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44
Successes
  • In New Zealand
  • www.pcdirect.co.nz
  • Woolworths online
  • BankDirect, ASB FAstNet
  • TAB, 20 Million/year
  • www.tuff-as-nuts.com

45
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46
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47
Successes
  • Mass-customisation addressing multiple segments
    of one
  • Dell Computers
  • www.smarterkids.com
  • travel.co.nz
  • Vitamins www.acumins.com

48
Successes
  • Click-and-Mortar
  • Combining existing strengths in physical
    distribution with virtual approach
  • Barnesandnoble.com
  • in Japan, a retailer is experimenting with
    product pick-up in 7/11 shops

49
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50
Fiascos
  • Www.Pets.com, www.mothernature.com (vitamins)
  • www.priceline.com
  • e-Shopping Mall concept (IBM)
  • In New Zealand
  • Flyingpig.co.nz (now re-launched)
  • NBR, The Press

51
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52
Opportunities
  • Find a niche, added-value product
  • Migrate from catalog (Ezibuy)
  • Try to exploit overseas market
  • Minimise shipping constraints and costs
  • Blackball salamis on west coast!!
  • ideas?
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