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Website Marketing and Design

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Website Marketing and Design Poitiers, September 23-27 Session 1 - Introduction to the Internet, Web and eCommerce 1 – PowerPoint PPT presentation

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Title: Website Marketing and Design


1
Website Marketing and Design
Poitiers, September 23-27
  • Session 1 - Introduction to the Internet, Web and
    eCommerce

1
2
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?

3
Web Marketing
  • The Original WWW
  • Web and Marketing
  • Stages of Web Publishing
  • Break

4
The Original WWW
  • Its 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

5
The Original WWW
  • Radios 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 neighbors 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

6
The Original WWW
  • Radio changed business, especially marketing
  • It accelerated the economys 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

7
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

8
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

9
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

10
Virtuous Cycle for Net Growth
Lets look at how it works
11
A Dot Com World
  • The virtuous Web cycle leads to rapid growth of
  • Consumer access
  • Internet usage
  • Content online

12
Consumer Access
  • The past five years have seen rapid growth in
  • Network size
  • Users on networks
  • Network activity
  • Between January 1994 and January 1999, Internet
    hosts grew from 2.2 million to over 43 million
  • A 46 growth rate in 1998

13
Consumer Access
  • The Internet user base has grown rapidly as well
  • Worldwide, the number of users was estimated to
    be gt 160 million in March, 1999
  • Over 90 of the users on the Net have joined in
    the last 5 years
  • More growth is possible, as lt 4 of the worlds
    adult population is online
  • 50 of users think the Net is a necessity

14
Consumer Access
  • Spring 1998, the size of the Web was estimated at
    300 million pages
  • Growth rates in content exceed growth rates in
    Web access and the number of users
  • From June 1997 to March 1998, Web content grew at
    120
  • More importantly, the types and creativity of Web
    site content have blossomed

15
Stages (or Generations) of Websites
  • Stage I Publishing sites
  • Stage II Databases and Forms
  • Stage III Personalization

16
Stage I Publishing Site
17
Stage I
What makes this a Stage I Website ?
Organises, Broadcasts andDisseminates Information
18
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
19
Stage II
What Makes this a Stage II Website?
Ability to retrieve information to respond to
user requests
20
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.
21
Stage III
What Makes this a Stage III Website?
More than ask-respondAnticipatesSuggests
22
Website Marketing and Design
Poitiers, September 23-27
  • Session 2 The Web and Marketing, Intro to
    eCommerce

1
23
Web Marketing
  • Marketing Principles on the Web
  • Online Consumer Behavior
  • eCommerce

24
The Dell Triangle Figure 4.1
25
Online Marketing
  • Direct interaction creates customer value and
    sets the stage for relationship building
  • This creates opportunities for
  • personalization
  • community building
  • real-time marketing

26
Online Behavior Interactivity
  • Interactivity depends on
  • Direct communication
  • Individual choice
  • Friendly technology
  • Lets take a look at each of these

27
Direct CommunicationFrom Broadcast to Dialogue
Figure 4.3
  • Dialogue is possible when theres direct
    communication between marketer and customer
  • Intermediaries can filter or block feedback

28
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.
    machine-mediated interaction

29
Comparing Communication Methods
  • The Web is a flexible technology
  • Its evolving into a personal and dynamic
    communication medium

Figure 4.4
30
Individual ChoiceSelection 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

31
Impact on Consumer Choice
32
Friendly Technology
Technology is technology only if it was invented
after you were born
  • Televisions, radios, telephones, and VCRs have
    market penetrations gt 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

33
Web Stage and User Challenges
  • The easiest type of online 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

34
Online Consumer Behavior
  • 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

35
Online Consumer Behavior
  • The human brain isnt well adapted to 20th
    century media
  • New media is engaging old brains

Why Are There Social Responses to Information
Technology?
36
Online Consumer Behavior
Simple Technological Features Can Elicit Strong
Social Responses
  • Manners are critical in online computer
    messages
  • Good Manners positive responses
  • Behavior that is considered rude in real life is
    considered rude onscreen

37
Online Consumer BehaviorSocial Cues
  • E-mail lacks the social cues that a phone
    conversation or a face-to-face meeting provide
  • Misunderstandings develop more easily because
    people its harder to judge confusion
  • People dont 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

38
Online Consumer BehaviorCognitive 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

39
Whos 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

40
As Time Passes
  • More people online
  • More people connecting at higher speeds
  • More people using the Web to shop and transact
    business
  • gt40 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 lt1 year

41
eCommerce
  • Introduction to eCommerce
  • eCommerce Overview
  • eCommerce Terminology

42
How Companies Organize Net Activities
43
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

44
Ecommerce Terminology
  • ECommerce
  • Using Information Technology to support external
    business processes (eg marketing/selling products
    /or services)
  • EBusiness
  • Supporting both internal and external business
    processes

45
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

46
eBusiness model
  • Covers the support of the processes relations
    between business partners, co-workers and
    customers by electronic media

47
eCommerce
  • Is that part of the eBusiness which is aligned to
    the negotiation and settlement of obligatory
    business transactions.

Example http//www.amazon.com/
48
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

49
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

50
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

51
EC evolution in waves
52
EC Could Be Seen As
53
Levels of eCommerce
International Electronic distribution
National Electronic distribution
Company promotion
Pre/post sales support
International payment
National payment
Sales/ Simple transactions
Electronic presence
Shared business processes
Standard, simple, Many instances
Custom, complex, Few instances
http//www.ispo.cec.be/ecommerce/introduc.htm
54
So, EC world is Interdisciplinary
  • Consumer behaviour psychology
  • Accounting auditing
  • Production/Logistic
  • Information systems
  • Business ethics
  • Management
  • Business law
  • Marketing
  • Finance
  • Economic
  • Computer sciences

55
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

56
Examples
  • www.ebay.com person to person EC
  • www.amazon.com - retail
  • www.yahoo.com - ecommerce portal

57
Website Marketing and Design
Poitiers, September 23-27
  • End of Sessions 1-2
  • LUNCH!

1
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