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Website Marketing and Design

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Website Marketing and Design Poitiers, September 23-27 Session 5: B2B Commerce 1 What is an EC Business Model? The structure & actions by which an org operates within ... – PowerPoint PPT presentation

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Title: Website Marketing and Design


1
Website Marketing and Design
Poitiers, September 23-27
  • Session 5 B2B Commerce

1
2
What is an EC Business Model?
  • The structure actions by which an org operates
    within its marketplace
  • architecture for activities of a business
  • The product, service or information flow
  • Buy-side sell-side refers to payment
    direction
  • With whom is commerce being conducted
  • (suppliers or customers?)
  • In some cases, business is being transacted with
    both

3
Business-to-Business Commerce
  • volume much larger than e-tailing, and more
    rapidly growing
  • Intra extranets provide a seamless link between
    businesses and their suppliers
  • Companies create in-depth Web sites for their
    main customers
  • Special pricing
  • Special configurations
  • Dedicated support
  • This builds loyalty and repeat purchases

4
Internet-enabled B2B eCommerce has
  • Had significant impact on all the key
    organisational processes
  • Sales Marketing (and especially in advertising)
  • Finance Accounting
  • Supply-Chain Management
  • Plus significant use in
  • Human Resource Management
  • Research Development

5
B2B eCommerce
eCommerce Impact on Web Sites
  • E-commerce creates strong incentives for
    companies to enhance their online use of
    personalization
  • Raises the value of users online experience
  • Improves customer loyalty
  • Allows for detailed information gathering
  • The personalization/e-commerce link is especially
    strong for business-to-business marketing

6
B2B eCommerce
The Personalization/E-commerce Link
  • Total company purchases determines the amount of
    personalization Dell provides
  • Greater personalization leads to even more
    purchases and a higher customer lifetime value

7
B2B eCommerce
eCommerce Impact on Web Sites
  • Acquisition costs have gotten higher
  • Pioneering sites like Amazon.com received massive
    amounts of PR, which lowered their costs of
    acquisition
  • As competitors have entered the marketplace,
    acquisition costs have climbed
  • Analysts recommend spending 70 of Year One
    revenues and 30 of Year Two revenues on customer
    acquisition
  • High acquisition costs lead to
  • A search for cheaper acquisition methods
  • A premium on building customer loyalty
  • A drive to expand the total amount of online
    business done with a particular customer

8
What is EC Strategic Planning?
Phase 1 - Goal Setting Define/Diagnose overall Corporate Objectives
Phase 2 - Situation Review Perhaps using SWOT Analysis 5-forces or similar
Phase 3 - Strategy Formulation Complement or Replace? (use dependence flow chart to decide - spending is greater if replace than if complement) select from possibilities
Phase 4 - Resource Allocation Monitoring Estimate demands, produce budget document plan (role of webmaster document layout)
9
Need Strategy not just Technology
The technological imperative is discredited!
Source Wigand, 1997
10
Web Competitive Strategy
  • Offensive strategy usually takes place in an
    established competitors market
  • Frontal Assault attacker must have superior
    resources and willingness to persevere
  • Flanking Manoeuvre attack a part of the market
    where the competitor is weak
  • Bypass Attack cut the market out from under an
    established defender by offering a new type of
    product that makes the competitors product
    unnecessary
  • Encirclement greater product variety and/or
    serves more markets
  • Guerrilla Warfare use of small, intermittent
    assaults on different market segments held by the
    competitor

11
Defensive Strategies
  • Takes place in the firms own current market
    position as a defence against possible attack by
    a rival
  • Lower the probability of attack
  • Divert attacks to less threatening avenues
  • Lessen the intensity of an attack
  • Make competitive advantage more sustainable

12
EC and Industry Attractiveness
  • There will be many new entrants
  • The bargaining power of buyers is likely to
    increase
  • There will be more substitute products and
    services
  • The bargaining power of suppliers may decrease
  • The number of industry competitors in one
    location will increase

13
Also harmful strategic EC effects
  • Changing the basis of competition
  • Can become competitive disadvantage if the firm
    doesnt stay ahead
  • Entry barriers
  • Can lower entry barriers
  • Switching costs
  • Can lead to accusations of unfair trading
    practice
  • Supplier/customer bargaining power
  • EC may provide information for shopping or allow
    integration

14
Value Analysis Questions
  • Representative Questions for Clarifying Creation
    of Value Chain opportunities
  • Can I make gains by consolidating parts of the
    value chain to my customers?
  • Can I make gains for customers by reducing the
    number of entities they have to deal with in the
    value chain?
  • Representative Question for Creating New Values
  • Can I offer additional information of transaction
    service to my existing customer base?
  • Can I use my ability to attract customers to
    generate new sources of revenue, such as
    advertising or sales of complementary products?

15
Coherent Strategic EC and Website Plan
  • Documenting the strategy
  • must show how you are going to match technology,
    external resources your firms strengths to
    market opportunities you have identified. Make
    clear your stance on 3 issues
  • Customer needs - What is being satisfied
  • Customer groups - Who is being satisfied
  • Technologies functions - How customer needs are
    satisfied

16
What Should Strategy and Plan Address?
  • How is Electronic Commerce going to change our
    business?
  • How do we uncover new types of business
    opportunities?
  • How can we take advantage of new electronic
    linkages with customers and trading partners?
  • Will intermediaries be eliminated in the process?
    Or do we become intermediaries ourselves?
  • How do we bring more buyers together
    electronically (and keep them there)?
  • How do we change the nature of our products and
    services?
  • Why is the Internet affecting other companies
    more than ours?
  • How do we manage and measure the evolution of our
    strategy?

17
Define Implementation Sequence
  • Start with organising a project team
  • Undertake a few pilot projects (discover problems
    early)
  • Sequence in Implementing EC
  • Redesigning existing business processes
  • Back-end processes must be automated as much as
    possible
  • Company must set up workflow applications by
    integrating EC into existing accounting and
    financial back-ends

18
Who should handle producing plan?
  • Should focus EC efforts in separate Ecommerce
    Group
  • If IT drives, will underestimate customer focus
  • If marketing drives, will underestimate effort to
    build maintain the presence
  • EC group needs maintain strong links to other
    corporate functions
  • needs to manage intermediaries involved
  • Group will become central source for best
    practices will help propagate knowledge

19
And What next
  • Ecommerce is inevitably incremental
  • And success grows in unexpected ways
  • Successful Ecommerce venture then prompts next
    question
  • grow vertically or horizontally?
  • Unsuccessful Ecommerce then prompts to ask why?
    Perhaps
  • The goals were unrealistic
  • The web server was inadequate to handle traffic
  • The actual cost savings were not as much as
    expected
  • The time was just not right for this idea

20
After Strategy - Tactics
  • Who will we reach with this site?
  • Who is the audience
  • What kind of information wants to be presented to
    them
  • When will this venture make money?
  • What tasks technology will make it a success?
  • Where will the resources for it come from?

21
Level of dependence on EC
Start
Replacement means more costs than complementing,
and implies more dependence!
22
Method to do Situation Analysis
  • Tied together with SWOT analysis
  • Strengths - muscle of the firm
  • Weaknesses - that limit its power
  • Internal factors in relation to the external
    factors of
  • Opportunities - potential for good
  • Threats - must counter/remove
  • way of judging strategic fit of firm
  • Understand the O T by considering the structure
    of the industry (Porters 5-forces)
  • Understand the S W by considering the creation
    of value chain

23
SWOT Analysis Forms Strategy
  • Basically, priorities are both
  • fix W/T segment (business survival)
  • but also chase S/O segment (business growth)

24
SWOT Summary
25
5 Competitive Forces that Determine Industry
Competition Porter
How can we use all those Ecommerce possibilities
looked at in last section to CHANGE the situation
to our advantage?
Tools such as this useful in EC Strategy choices
26
EC and the Competitive Environment
27
Website Marketing and Design
Poitiers, September 23-27
  • End of Session 5 Break

1
28
Website Marketing and Design
Poitiers, September 23-27
  • Session 6 Website Design Principles

1
29
Website Tasks
  • To ensure the design implementation, of a
    successful Website there is a need for someone
    (or several people?) to master the following
    tasks
  • Look Feel
  • Navigation Structure
  • Content
  • Implementation
  • Site Promotion
  • Site Management


Web-site Design
30
What makes an Effective eCommerce Site?
  • Effective?
  • one that suits the need
  • What you want your site to
  • Be and Do
  • Know your Business Goals
  • Driven by chosen ecommerce possibilities (as
    covered earlier)
  • Be clear why you are creating this site

31
Know your Audience
  • Lots of questions to ask, e.g.
  • who?
  • how many?
  • how long?
  • how often?
  • from where?
  • etc.
  • The above questions ALL need answers!
  • Informed by market analysis?

32
Audience Analysis
  • Who do you want to reach
  • Why might they come?
  • Where would they be in the sales cycle?
  • Based on your business goals
  • What action do you want them to take?
  • Web-site design is very different for
  • a daily visit site
  • a newsletter site
  • a technical support site

33
Why might they come?
  • To.
  • read a product description with detailed
    up-to-date information
  • complete a reader survey
  • request a subscription to a service, or an
    introductory meeting, or a phone call
  • participate in an on-line discussion
  • add your URL to their list of favourites
  • select your site as their browsers default
    home page
  • visit your site weekly, twice a week, daily or
    infrequently
  • purchase a product or service
  • Etc.

34
Where do they come from?
  • Any number of technical constraints might apply,
    e.g
  • Bandwidth (connection speed)
  • Browser type
  • Screen Size Colour Depth (resolution)
  • Video Sound Capacity
  • All too often
  • designers High Specification PC, with a Fast
    connection, on a Network
  • customers Low Specification PC, with a Slow
    dial-in connection, using a 56k (or slower?) modem

35
Web-Site Design
  • Three Major Tasks to Produce Website
  • Look Feel
  • Structure Navigation
  • Content
  • Difficult to separate these, and there is
    considerable disagreement over which is most
    important, however all agree
  • should be easy to find your way around
  • should be uniformity in the presentation of the
    whole web-site, within sections, and of
    individual pages
  • should keep the content of the site up-to-date

36
Look Feel Requires a number of design decisions
  • What are your assumptions about user
    communication learning preferences?
  • Will information be consumed on screen or printed
    for later?
  • How patient will your audience be?
  • Simple, clean designs will be fast and clear, but
    can seem dull
  • Complex multimedia sites may be more
    interesting, but might be slow confusing

37
Look Feel Is created by design decisions about
  • Design Graphic Style
  • Award winning, avant-garde, friendly
    reassuring, in your face, etc.
  • Ambiance playfulness
  • Colour Palette
  • Earth tones, psychedelic colours, soothing
    pastels, etc.
  • try to use contrasting, not conflicting, colours!
  • Logos Branding
  • Style, location frequency

38
Look Feel Is created by design decisions about
  • Media Mix
  • text, static graphics, animations, sound, video,
    etc.
  • Balance of Text Graphics
  • lots of text with few graphics
  • lots of graphics with brief captions
  • balance might change in different sections of the
    Web-site
  • Typography
  • big bold, ornamental, youthful, elegant
    restrained, etc.

39
Look Feel - Examples
  • The ESCEM Group
  • http//www.escem.fr/
  • PC World Magazine
  • http//www.pcworld.com/
  • Amazon
  • http//www.amazon.com/
  • Disney Corporation
  • http//disney.go.com/
  • Yahoo
  • my.yahoo.com

40
Web Accessibility Initiative
  • On April 7, 1997, the World Wide Web Consortium
    (W3C) launched the Web Accessibility Initiative
    (WAI )
  • An attempt to make the Web more accessible
  • Accessibility
  • Refers to the level of usability of a Web-site
    for people with disabilities
  • The vast majority of Web-sites are considered
    inaccessible to people with visual, learning or
    mobility impairments
  • A high level of accessibility is difficult to
    achieve.
  • People with a low specification PC may also
    suffer from poor accessibility

41
Structure Navigation
  • Web-site Structure
  • Narrow Deep
  • Wide Shallow
  • Elements that define the site structure
  • Menus (Text-based and/or Graphical)
  • In-content Hyperlinks
  • Page Structure approaches
  • Plain, Framed, Table-based, Graphical
  • Site Maps (Text-based and/or Graphical)
  • Help you plan user understand

42
Things NOT to do!
  • Don't have too much information on a single
    Web-page.
  • Too much information(?)
  • becomes data i.e. may not be read, or
    understood.
  • Keep it short snappy
  • break things up into a number of shorter,
    hyperlinked, pages.

43
Things NOT to do!
  • Don't leave the important stuff for the bottom
  • Say what needs to be said at the top of each Web
    page
  • someone may not make it down to the bottom of the
    page
  • Another reason to keep it short snappy
  • Web-pages are meant to be read on a computer
    screen, a totally different shape to an A4 paper
    document

44
Keep it Simple
  • And your Web-site will be
  • easier to build consistent structure easy
    navigation, common look feel, easy to
    understand content, etc.
  • easier to maintain no Web-site is ever complete,
    they are always under construction, so NEVER
    say so!
  • And remember that less is definitely more
  • except when it comes to testing!

45
Web Design Principles
Start here http//www.starlingweb.com/wai/wcag/gi
d1-0.htm Guidelines from W3C http//www.w3.org/T
R/WAI-WEBCONTENT/
46
Website Marketing and Design
Poitiers, September 23-27
  • End of Sessions 5-6
  • Lunch!

1
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