Web Marketing a collection of strategies used to create, communicate, and deliver information about products and service offerings that have value for clients, partners, and society at large.
Needs and Wants
Needs – a state of felt deprivation.
Wants – is the need shaped by culture and individual personality
Marketers try to figure out what people want and present it as something they need.
A successful marketing campaign will be the one that wins people's business. The approach should start with a plan.
- Understand the market place and customer needs and wants
- This information is obtained through research
- Design a customer driven marketing strategy
- Construct an integrated marketing program that delivers superior value
- Integrated marketing – takes all facets of marketing (print, web, radio, TV, etc)
The Four 'Ps' of Marketing
The goal of any business should be to build profitable relationships and create customer delight.
- Capture value from customers to create profits.
- Perceived value – sets the ceiling for price.
- Cost – Sets the floor of the price
Common Marketing Terms
Customer Relationship Management – Process of building and maintaining profitable customer relationships by delivering superior value and satisfaction
Customer Satisfaction - Meeting expectations. The goal should be to Under Promise and Over Deliver.
Customer Perceived Value – the customer's evaluation of the difference between all the benefits and all of the costs of a market offer relative to the competition.
Customer Lifetime Value – Value of the entire stream of purchases that a customer would make over a lifetime of patronage.
Marketing Segmentation – Dividing the market into distinct groups of buyers who have distinct needs, characteristics, or behaviors and might require separate products or marketing programs.
Market Targeting – Evaluate each segment's attractiveness and select one or more segment and select one or more segment to enter.
Positioning – arranging for a product / service to occupy a clear distinctive and desirable place relative to competing products in the target customer's mind.
Differentiation – Actually differentiating the marketing offering to create supreme customer value.
- Strengths – Internal
- Weaknesses - Internal
- Opportunities - External
- Threats – External
Marketing Environment – the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.
Macro Environment – demographics, ethnic diversity, economic environment, technological environment, natural environment, political, cultural
Micro Environment – suppliers, marketing intermediaries (someone within the chain of distribution), public, competitors,
Marketing Intermediaries – firms that help a company to promote, sell and distribute its goods to final buyers.
- E-commerce – using digital technology to help buy and sell processes
- Online Edvertising – banner ads, pop ups, digital coupon, links to web sites
- Search Engine Marketing – purchasing ads on result page's sponsored links
- User Generated Content – people interacting with your brand online. Consumer created ads. The most common of which are reviews.
- Online Communities – social networking, linkedin, like minded interests, PR and buzz generation
- Personalization – Putting together clusters of products that people buy. 'If you like THIS, than you may like THIS' Website recommendation targeted to your online behavior. Biggest user of this tactic is Amazon.
- Mobile Internet Access – Smart phones, delivery system for Internet advertising
- Local Search Marketing - Google My Business, Yelp, Craigslist
- Online Aggregators – sites that bring together users and information (like Monster)
- E-Business – continuous optimization of a firm's business activities digitally
- E-marketing – use of information technology in the process of communicating and delivering value to customers and customer relationship management
- Internet Opportunities – reduce costs, increase sales, access new markets, target segments, improve efficiency, 24/7 access,
Things to Consider in Today's Marketing Landscape
- The Power Shift has moved from the sellers to the buyers
- Content is king
- Marketing investment is shifting to online
- High broadband at home has helped
- Market and media fragmentation
- Refined metrics (measures) Measure key data about sites (visitor numbers, conversion to sales, return on investment ROI, customer acquisition costs)
Strategic planning – managerial process of developing and maintaining a viable fit between the company's objectives, skills, and resources to changing market opportunities.
Growth – how to grow reasonably and sustain growth over time
Competitive position – how do you position yourself relative to the competition? Example how Hyundai is repositioning themselves in the car market.
Geographic scope – new markets are available to you, but can you provide to them?
Business Begins with:
- Strategic Plan
- Marketing Plan
- E-marketing plan
Specific measures designed to evaluate the effectiveness and efficiency of the business and marketing operations
Strategy – the means to achieve a goal / objective
e-strategy – capitalize on technologies to reach goals and objectives
Business Model – method by which a company sustains itself in the long term and includes its value proposition (value = benefits – cost)
Customer Value – differentiate product or service offering
Scope – Which markets will you serve
Revenue Sources – multiple streams of income
Implementation – systems, resources, capabilities,
E-business Model – information technology to help sustain the value proposition
Strategic Planning – Balanced Scorecard
- Customer perspective – measures value delivered to customers
- Internal Business perspective – meeting customer expectations through internal processes.
- Learning and growth perspective – continuous improvement to existing products and services and innovation.
- Financial Perspective – financial measures including expense, income, return on investment
Developing an E-marketing Plan
Step 1 Situation Analysis
A. SWOT Analysis
Consider Developing a SWOT Matrix
B. Review of the Overall marketing plan
- Traditional Media
C. Establish Goals and Objectives and Measures
- Short Term Goals – 1-2 Years
- Long Term Goals – 3 – 5 Years
- Objectives should be measureable
- Measures (metrics)
E-marketing Strategic Planning
- Segmentation – Size of the target, potential for profitability, sustainability, demographics, accessibility, geographic location, psychographics (lifestyles, attitudes, etc.)
- Look at new markets, current markets, which customers want online,
- B2B (business to business) – Look at different industries, their need, the size.
- Less Customers, more volume.
- What is your competitive advantage?
- What's your value proposition?
- Positioning – how are we relative to the competition?
- Occupy a clear and distinctive and desirable place relative to the competition.
Identifying e-business strategy objectives
- The Task (what you want to accomplish)
- Measureable Quantity (how much you want to do / acquire)
- Time Frame (When do you want this done by)
The Four 'P's' of Marketing (The Marketing Mix)
- Dynamic pricing – different price levels for different customers or situations
- Supply and demand driven
- Online bidding
- Use for inventory optimization
Distribution (Place) – online efficiencies. Selling directly; bypass intermediaries.
- Online, you can act as an agent; bring buyers and sellers together for a fee.
Promotion – Communication Strategies
- Interacting with 'brick and mortar' customers
- Draw people to the store or web
- E-mail, blogs, content, web pages,
Develop plans, policies, tactics, goals, objectives
Who does what?
Costs and expected profits (revenue forecasting)
ROI (return on investment)
Revenue forecast for the short, medium and long term.
Consider history, competition and the economy.
- Internet Access
- Site Maintenance & Domain Name
- Site Design
- Search Engine Optimization
- ROI – Return on investment (tangible)
- brand building
- Customer Satisfaction improves sales
- Buying Behavior
- English Speaking
- Level of economic development
- Literacy Rate
- Use of credit cards
- Package delivery
Digital Divide – The discrepancy between people with technology access and without.
The wealth of a nation creates disparity in the access to technology and information
Legal and Ethical issues
Ethics are concerned with the values and practices of the professionals and to take into account the concerns and values of a society as a whole.
Some major ethical issues:
- Piracy – Stealing software or intellectual property
- Privacy – how data is collected and used
American Marketing Association - information collected from customers should be confidential and used only for expressed purposes.
Cookies – used to collect data like sales information and contact information. Collected from users hard drive.
Cookie Packet – can be transferred between servers for user tracking. Looking for online behavior.
This sets off unsolicited web marketing.
Intelligent agents – make autonomous electronic decisions for you.
Ubiquitous applications – application that functions in the course of an online session without the users control or knowledge.
- Cookies and intelligent agents
Federal Trade Commission (FTC) has minimum requirements regarding the use of consumer information:
- Notice – a user should be aware of a site's information policy before data is collected.
- Content – user should be allowed to choose participation or exclusion from collection.
- Access – user should be able to see their information and correct if necessary.
- Security – policies to ensure the integrity of data and the misuse prevention should be in place.
- Enforcement – Users should have effective means to hold data collectors to their policies.
- Patents – centered on inventions and the ability to reproduce or manufacture an inventors product
- Business Patent – processes for conducting online commerce
- Online auctions
- Credit Card processing
- Click ordering routines
- Overly broad patents were stifling business
- Copyright – The right to publish or duplicate expressions of ideas. Originally for books, print, music and film.
- In 1997 NET was invented (No Electronic Theft act) = copyright protection for computer content.
- Trademarks – concerned with words or images used to identify products in the market
- Cybersquatting, trademark violation to register domains names that resemble or duplicate names of existing companies or other entities.
- Meta Tags – HTML Statements that describe a web's content. Cannot use trademark meta tags.
- Sales transaction
- Sales conversion rates
- If online ads are driving sales
- Customer profitability
- Sales promotion tracking
- Customer activity and behavior
- Customer touch point
- UPC – Universal product code (record in store behavior)
- Track user movement through the site (helps developers organize the site)
- Can track where customers were before your site, and after your site
- All of this information is stored in data warehouses.
- Is collected through research by the company that the company develops on their own
- Focus groups
- On or off line
- Information collected by others (professional market research companies).
- They sell this data.
- Competitive Analysis
- Alexa.com (look up your competitors)
- Consumer Behavior
- Technological Advances in that field / area
- Syndicated research – generally for a specific industry, can apply but maybe not exactly what you need. Still cheaper than doing yourself.
Knowledge Management - The process of managing the creation, use and dissemination of knowledge.
Monitoring social media
- You cannot control your brand online
Online Reputation Specialist – Public relations, but regarding social networking.
Monitoring system – e-mail alerts. Google has a system that sends you an e-mail if certain keywords are used
RSS Feed – Really Simple Syndication. XML format designed to share headlines and web content.
Most companies follow influential bloggers
Special software to monitor social media conversations – Buzz Monitor
Client Side Data Collection - Collecting information about consumer click behavior right at the users PC (cookies)
Server Side Data Collection - Logs the number of users who view each page, locations of prior sites visited, what users buy, browsing patterns,
Real Time profiling – track user movements and make instantaneous changes, adjustments to promotions, pricing,. Very expensive.
Spidering – Robots that enter targeted web sites and obtain data for the use of its owner. Mostly from search engines.
Points to Consider
- Technological Context
- 70% of consumers are online
- Increased connection speeds
- Smart Phones
- 'People are using what device for what?'
- Social and Cultural Context
- People do not watch as much television; they want to get information when they want it.
- Word of Mouth
- More sophisticated consumers (knowledge is power)
- Information Overload
- Multi Tasking – lowers your attention level to each item.
- Home and work boundaries are dissolving
- Anytime, Anywhere convenience. 24/7 access
- People expect a response within 24 hours
- Online Access – People crave online access
- Self Service Required
- Privacy and Data Security
- Legal Context – Still issues over piracy
- Individual Characteristics
- Demographics – Age, Race, Religion, Occupation
- Attitude Towards Technology
- Online skill and experience
- Online shopping is goal oriented more than experience oriented.
- Consumer resources
- Perceived value = Benefit – cost
- Monetary Cost – income, access to credit,
- Time Cost – Time poverty. People are very busy
- Exchange Outcomes:
- Connect – E-mail, IM, Texting, Skype, Social Network, Blog
- Create – Content Creation, Videos, avatar game,
- Enjoy – Audio, Visual entertainment,
- Learn – News, direction, job postings, Weather, online classes/tutorials
- Trade – Buy/Sell element, reservations, auctions, online classifieds
Segmentation and Targeting Strategies
Market Segmentation – aggregating people with similar characteristics that pertain to use, consumption, and benefit of a product.
Market Targeting – selecting attractive markets for your company.
- Business Market – B2B is huge online. Increase efficiencies.
- Most businesses place their orders online
- Greater competition (more global)
- Changing the supply chain structure – More direct selling
- Government Market – US Government is the world's largest buyer
- Bidding Process – complicated to become a vendor to the government
- Become an approved supplier
- Consumer Market – end users
- Vast and diverse market
4 Segmentation Bases are:
Geographics – Companies target regions
- Based on language, accessibility, ability to provide service.
- Predominantly younger crowd
- Higher income
- Higher education
- Born in 1979 – 1994, called Millennial
- 90% use the Internet
- Kids under 16 are increasing online power
- Social networking
- Playing Games
- Watching Videos
- Opinion Leaders regarding the use of the web
- Lifestyle / Activities
- Social Networking AKA Word of Mouth on Steroids
- Building a community on a social networking site is very effective
- Benefits sought (addressed needs)
- Why are people going to a web site?
- Travel web sites: 55% to check flights, 47% check destination, 48% visit for promotions
- Usage level: Light, medium, heavy user
- Online engagement –
- How are they accessing the Internet?
- Smart phone
- Internet Speed.
Differentiation and Positioning
Differentiation - Adding a set of meaningful and valued differences to distinguish the company's offering from competitors offering.
Product Differentiation – Create a unique product. With online, a unique service element. Find the right combination of benefits. Bundle and price.
Service Differentiation – If you have a generic product, then you need to differentiate with service.
Online service enhances the consumption experience.
Personnel Differentiation – Having personal selling relationships because online is creating a more anonymous experience.
Channel Differentiation – online 24/7; is this an asset?
Image Differentiation – Branding and unique customer service builds customer loyalty. Fine tune your target.
Nice environment, easy navigation, easy downloads, good information, and home page is very important.
Efficient and Timely Order Processing
Ease. Delivery timeliness. Follow through. Automated e-mails.
Is it the same, more than, or less than the competition? Discount to process online?
Customer Relationship Marketing (CRM)
As you move away from price, you have to be more focused on services and personalization. Describe special things you're doing with web site.
Invite User Generated Content
Provide a place for users to post comments, or other content. The key is to trust customers, listen, and learn. You should respond to online comments.
Creating an image and market view of the brand by consumers positioned in their mind relative to the competition. Goal is to build a strong and defensible position on one or more bases that are relevant to consumers.
- Product / service - Features, ingredients, size, color
- Technology – Cutting edge applications
- Benefit – What benefits do consumers perceive from your features?
- User Category – Customer segments that have unique qualities that they want.
- Competitor positioning – Market your benefits that are better than the rest.
- Integrator – Providing everything a consumer needs in a particular category
- Repositioning - Creating a new or modified brand
Creating Customer Value
Marketing Mix (known as the 4 P's)
- IMC (integrated marketing communication) Advertising / Promotion
- Distribution Channel (online sales VS brick and mortar)
- Price / Value
- Product / Service / Offer
80/20 Rule: 20% of your customers will generate 80% of your profit
Customer Value = Benefits – Costs
Every time a customer contacts your business it should be a 'fabulous' experience.
1. Product experience
- Create awareness
- Customer Touch Points
- In Person
- Actual Product Usage
- Post Purchase Service
2. Mental Beliefs and Attitudes
- Customer Perception determines value
3. Customer Expectations
- The 'actual experience' needs to meet or exceed the initial expectation
4. Product Benefits
- What are the product attributes?
- These things must be consistent
Mass Customization – The ability to bundle features at rock bottom prices.
Branding – Slogan, symbol, logo, it's a promise. When you deliver on your promises, you build trust.
Brand Equity – Intangible value of a brand measured in dollars.
Brand Relationships – try to build a 'cult like' following
- Examples: Harley Davidson, Apple,
Branding Decisions for Web Products:
Do you use an existing name on the web?
- Strong brands usually will if it is a safe bet.
- Online and Offline brand image need to be even, coherent
Domain names are generally the brand name.
Support Services – critical to the value proposition.
- Before and after purchase
- Think about the customer experience
- Labeling and Packaging – influences behavior at point of sale.
- Communicates the brand
Customer Relationship Management (CRM)
- Customer Care Life Cycle
- Targeting the right customers
- Who are your best customers
- Differentiate the needs of your customers
- Acquire customers
- Customize the marketing mix to satisfy needs
- Transaction – Easy, convenient, fast
- Retain Customers – data analysis, evaluate, improve
Information Gathering Strategy
What you want to collect from your customers and how you want to use it.
- Broadcast – Mass media, to a mass audience. Highest level is network TV.
- Narrowcasting – Smaller audience. Cable TV, Newspapers, magazines, radio,
- Pointcast – Individuals. Direct mail or direct e-mail. Text. Personalized message. Phone calls.
Advantages of digital media
- Selective targeting
- Track advertising effectiveness
- Flexible message length and delivery timing
- Ability to reach global markets
- Self paced
Disadvantages of Digital media
- Unable to reach a mass audience
- Unable to reach people that are not online
- Slow delivery if there is no broadband
The key digital media is
- Web sites
- Social Media
- Purchased advertising
The definition of social media: Online tools and platforms that allow Internet users to collaborate on content, share insights and experiences, and connect for business or pleasure.
Reputation aggregators – Search engines (google)
- Rank web sites, products, retailers, according to some ranking system/method.
- Rely on input for the rankings; including how popular a page is.
- Look at relevant links from quality sites
Search Marketing – Umbrella term for marketing a web site via search engines
- Improve your ranking
- Purchasing paid listings
Natural search / organic search – Optimizing web site so that it will appear on the first few search results pages using search engine optimization.
Search Engine Optimization – Altering a web site and incoming links so it does well with crawler based listings through search engines.
- What are the best keywords?
- Design a site for users, not for search engines.
- Register web site with search engines.
- Site Quality – content should be updated
- Having more than one site with subdomains w/relevant content.
- Separate web site for support
- Frequently updated blogs
- Content on visible sites like Facebook and YouTube
- Pay a fee to reputation aggregators (Google) for directory inclusion.
- Most effective form of online advertising
- Bidding Process for ranking appearance
Directory Submission –
- Pay to be listed in a searchable directory
- Yahoo shopping pages
Site specific search on very specialized topics, such as travel sites, online retailers
Example: Trip advisor. Registered members that basically recommend and network with one another. Vendors that are in that industry will pay to appear on that site.
Online community, very high volume of clicks and return visitors