Post on 18-Dec-2015
Creating a Winning E-BusinessSecond Edition
Marketing Your E-Business
Chapter 6
2
Learning Objectives
• Describe the marketing mix
• Explain the importance of branding
• Describe primary and secondary market
research
• Create a marketing plan
• Identify marketing tools
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Marketing
• Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (American Marketing Association, January 2008)
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Marketing
• Creating
• Communicating
• Delivering
• Exchanging
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Marketing
• Customers (i.e., Stakeholders) include…– Customers– Clients– Partners– society at large
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Marketing Mix
• Four Ps in the classical marketing mix– Product– Place– Price– Promotion
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Marketing Mix (continued)
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Marketing Mix (continued)
• Marketing mix from customer’s viewpoint– Four Cs marketing mix model
• Customer needs and wants• Convenience• Communication• Cost to customer
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Marketing Mix (continued)
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Consumer Decision Making Process
• 5 phases of the generic purchase decision model:
1. need identification
2. information search
3. evaluation of alternatives
4. purchase and delivery
5. after-purchase evaluation
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Web Advertising
• Internet advertising terminology– ad views: The number of times users call up a
page that has a banner on it during a specific time period; known as impressions or page views
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Web Advertising
– Click (click-through or ad click): A count made each time a visitor clicks on an advertising banner to access the advertiser‘s Web site
– CPM (cost per thousand impressions): The fee an advertiser pays for each 1,000 times a page with a banner ad is shown
– Hit: Request for data from a Web page or file
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Web Advertising – Visit: A series of requests during one
navigation of a Web site; a pause of request for a certain length of time ends a visit
– Unique Visit: A count of the number of visitors to a site, regardless of how many pages are viewed per visit
– Stickiness Characteristic that influences the average length of time a visitor stays in a site
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Building Your Brand
• A brand– Incorporates customers’ perceptions of and
experiences with a business– Combination of name, logo, and design that
identifies a business’s products and services in consumers’ minds
– Trusted brand can drive sales
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Building Your Brand (continued)• Define how you want products/services
perceived by customers– Understand core elements of e-business– Differentiate core elements from competitors’
core elements– Identify how products/services meet
customers’ needs– Decide how to convince customers that
products/services best meet their needs
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Building Your Brand (continued)• Discover words, phrases, images to put
best public “face” on business
• Brand names– Simple– Easy to remember, spell, and understand– Have “snap”– May be a proper name or use personification
• Coca Cola, Dell Corporation
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Building a Brand
• Oh, don’t forget the domain name (URL)
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Building Your Brand (continued)
• Domain name (URL) and branding– Address associated with a Web page– Can be used to help build a brand– Single- and common-word domain names
largely already taken• Office.com, Business.com• May be too generic for successful branding
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Building Your Brand (continued)
• Use creative “brainstorming” to develop brand name– Create list of words or phrases and combine
them in creative ways– Ask for help from friends, family, advisors
• Pay for professional help in developing brand name– The Namestormers, NameLab
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Building Your Brand (continued)
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Building Your Brand (continued)
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Building Your Brand (continued)
• Domain name (URL) registration– Managed by ICANN for the U.S. Dept. of
Commerce– Top-level domains identify the general
category in which a domain name is registered
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Building Your Brand (continued)
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Building Your Brand (continued)
• Domain name (URL) registration (continued)– ICANN contracts with accredited registrars– Accredited registrars process requests for
new domain names• Network Solutions• GoDaddy• Register.com
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Building Your Brand (continued)
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Building Your Brand (continued)• Tying URL to business name can help build a
brand– amazon.com
– register.com
– bn.com
– ey.com
• Some e-businesses use clever, made-up words for URL– google.com
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Building Your Brand (continued)
• Brand names, domain names, trademarks are becoming more interchangeable– Make certain a URL does not infringe on the
brand or trademark of an existing company
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Market Research
• Collecting and analyzing data to make business decisions– Primary research
• Uses quantitative or qualitative methods to physically collect and analyze data and then publish the results
– Market research company examples• NPD Group
• Forrester
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Market Research
• Secondary research– Collects data from secondary sources who
have already performed the primary research– Resources for secondary research
• Reports published by market research companies• Industry white papers• Government databases• Trade associations• Professional journals
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Creating a Marketing Plan
• Provides the details for the marketplace analysis section of a business plan
• Plan elements– Executive Summary– Situational Analysis– Objectives, Strategies, and Tactics– Budget and Performance Measures
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Creating a Marketing Plan
• Executive Summary section– Summarizes overall plan– One to three pages– Should be written last
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Creating a Marketing Plan
• Situational Analysis section– Explains what is known about the marketplace
• Market size• Market segments• Target market• Competition• Products and services overview
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Creating a Marketing Plan
• Objectives, Strategies, and Tactics section– Objectives describe marketing mission– Strategies identify what is to be accomplished– Tactics detail how it will be done
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Creating a Marketing Plan
• Budget and Performance Measures section– A budget estimates the cost of the plan– Performance measures evaluate the results of
plan implementation
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Marketing Tools
• Search tool submissions– Search engines use spiders to browse the Web
and locate new pages to build indexes– Directories use human submissions of Web page
information to build indexes– Most modern search tools use a combination of
both means to build indexes– E-businesses can submit Web page information
to multiple search tools
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Marketing Tools
• Search engine optimization (SEO)– Build Web pages that are easy to index by
search engines• Write clear and on-topic Web page text• Use descriptive page titles• Avoid frames and dynamic content• Use text navigation links• Arrange for relevant inbound links• Use meta tags
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Marketing Tools
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Marketing Tools
• Online advertising– Banner and sidebar ad
• Rectangular image• Linked to advertiser’s site
– Pop-up or pop-under ads• Appear in own window above or below browser
window• Linked to advertiser’s site
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Marketing Tools
• Online advertising (continued)– Rich media ads
• Interactive elements, Flash technologies, streaming media
• Shoshkele and streaming media ads
• Permission-based marketing– Opt-in e-mail or newsletters– Double opt-in process verifies recipient voluntarily
receives messages
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Marketing Tools
• Online advertising (continued)– Search tool or portal advertising
• Featured placement at other Web sites• Pay-per-click search tool ads
– Featured placement in search results lists– Featured placement on same page as search results list– Based on relevant search keywords– Yahoo!, Search Marketing, and goClick.com
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Marketing Tools
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Marketing Tools• Traditional advertising
– Radio– TV– Print media– Outdoor advertising– Direct mail
• Used together with online advertising to acquire new customers as inexpensively as possible
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Marketing Tools
• Word of mouth– Electronic word of mouth exploits the network
effect and viral marketing– Business blogs
• Put a “human face” on a business• Way to keep tabs on what customers, potential
customers, and competitors are thinking and saying• Provide valuable feedback on products and services
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Marketing Tools
• RSS and Podcasting– Syndication of Web page content or audio
using XML technologies
• Affiliate programs– Arrangement in which an e-business pays a
fee or commission when a customer clicks through from another site and makes a purchase
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Marketing Tools
• Web rings– A group of similar e-businesses linked
together in a circular “chain” – Visitor can click through from site to site in the
chain
• Awards– Can give a startup e-business more credibility
in the marketplace
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The 3R Framework
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Reach• Reach is the degree to which a firm can
manage its value chain activities to connect its customers to an accessible product/service offering.
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Richness
• Richness is the degree to which a firm can facilitate the exchange of information to deliver products/services that match customers’ exact wants and needs.
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Range• Range is the degree to which a firm can
offer its customers a value proposition containing a breadth of products/services.
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E-business strategic positioning along the reach dimension
• key question: Is the product/service produced and distributed online or offline?– Digital products or services can overcome these
limitations and radically extend reach.– Digital products exist when…
• It exists in digital format• it is directly accessible on an interconnected, digital
network
• Why is the nature of the product, physical vs. digital, so important in impacting reach?
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E-business strategic positioning along the richness dimension
• key question: Is the product/service pre-built or customizable?– Pre-built (supply-driven) – Customizable (demand-driven)
• For customizable products, customers not only interact with companies at a very personal level, they can also dictate their exact desires
• Why do you need to know your customers? Is customization dependent on consumer knowledge being held by the company?
• Why is pre-built classified as supply-driven and customizable as being demand-driven?
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E-business strategic positioning along the range dimension
• key question: Is the product/service offering within the value proposition narrow or broad?– Broad offering typically consists of a heterogeneous set of
standardized or generic products and services that cross industry segments
• Narrow offering typically consists of a homogeneous set of specialized or customized products and services that are more tightly focused
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Strategic Guidelines
• Extend reach digitally
• Enhance richness digitally
• Expand range digitally
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Strategic Guidelines
• In other words, max each of the R dimensions.
• Is this really what every firm should do?
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The 5 Pillars of Social Media Marketing
• Social Media Marketing tactics engage in one or more of the following – Declaration of Identity– Identity through Association– User-initiated Conversation– Provider-initiated Conversation– In-Person Interaction
Source: Andy Beal - http://www.marketingpilgrim.com
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The 5 Pillars of Social Media Marketing
• Declaration of Identity: focus on identity-based interaction that shapes and defines the firm’s identity – LinkedIn– Ziki– ClaimID– SuperGlu
Source: Andy Beal - http://www.marketingpilgrim.com
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The 5 Pillars of Social Media Marketing
• Identity through Association: Allowing customers to associate themselves with a firm using social media associations– Del.icio.us– Furl– Blummy– Ma.gnolia– StumbleUpon– BlinkList
Source: Andy Beal - http://www.marketingpilgrim.com
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The 5 Pillars of Social Media Marketing
• User-initiated Conversation: Allowing customers to respond, shout out, and talk back to a firm or to others about a firm– Yahoo Groups – Google Groups – AOL Groups – MSN Groups – Topica EMail Lists – Kaboodle Groups – Eurekster – tribe.net – Ning
Source: Andy Beal - http://www.marketingpilgrim.com
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The 5 Pillars of Social Media Marketing
• Provider-initiated Conversation: Allowing firms to seek out input from customers– User forums– Customer feedback forums– Social networks for focus groups
Source: Andy Beal - http://www.marketingpilgrim.com
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The 5 Pillars of Social Media Marketing
• In-Person Interaction: Get down to face-to-face, over the phone, or synchronous interaction via text or email– Meetup – BarCamp – Evite – Upcoming – Eventful
Source: Andy Beal - http://www.marketingpilgrim.com
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Social Media Marketing Examples
• FACEBOOK Applications– aerie by American Eagle– BlueNile Wishlist– Steep and Cheap– Zappos– Threadless– Threadless Plus
Linda Bustos, 110 Ways Retailers are Using Social Media Marketing, http://www.getelastic.com/social-media-examples/
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Social Media Marketing Examples
– All Posters.com– erie by American Eagle– Apple Students– Champion Fan Zone– Chill with HP Canada– Contiki– Dell Spot– Half.com by Ebay– H&M– JanSport
• Mark.Girl Cosmetics • I Took the Nike Zoom• Challenge• PINK by Victoria’s Secret• Reebok• SouthWest Airlines• Target• TicketMaster• Virgin Mobile• Walmart Roommate Style Match
Linda Bustos, 110 Ways Retailers are Using Social Media Marketing, http://www.getelastic.com/social-media-examples/
FACEBOOK Sponsored Groups
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Social Media Marketing Examples
– I Want One of Those
– CKIN2U Secondlife
– Second Life Apple Store
– Reebok
• 1-800-Flowers• IBM Repair Shop • Xerox• StyleHive (Social Shopping)
• Phillips• Coca Cola Contest
Linda Bustos, 110 Ways Retailers are Using Social Media Marketing, http://www.getelastic.com/social-media-examples/
SECOND LIFE E-STORES
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Social Media Marketing Examples
• 1800Flowers• 2K Sports• BlendTec• Bowflex• Buy.com• Helio• Home Shopping Network• IWOOT• MyTravel.com
• Overstock.com• Quiksilver• RadioShack• Sam Ash Music• Sephora• ShopNBC• ThinkGeek• Tiger Direct• Zappos• Napster
Linda Bustos, 110 Ways Retailers are Using Social Media Marketing, http://www.getelastic.com/social-media-examples/
YOUTUBE / VIDEO PODCASTS
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Social Media Marketing Examples
• ONLINE COMMUNITIES– Calvin Klein Meet friends and submit user
generated videos (contest) – Weber Grills Audio & Video podcasts, interactive
recipes– Threadless Rethreaded– Lucky Magazine– Yub.com (Buy.com’s Social Community)– Kashi
Linda Bustos, 110 Ways Retailers are Using Social Media Marketing, http://www.getelastic.com/social-media-examples/
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Social Media Marketing Examples• FLICKR MARKETING
– EBTM t-shirts– NineTails Store– OwlMovement
• FLICKR USER UPLOADED “FAN” PHOTOS– Chumby– Chumby Flickr Page– FullBleed– Tea and Crumpets– Threadless
Linda Bustos, 110 Ways Retailers are Using Social Media Marketing, http://www.getelastic.com/social-media-examples/
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Social Media Marketing Examples
• Office Max Elf Yourself• Hanes Socks• SumoGlue.com• Career Builder• Guinness• Fruit of the Loom• Dial Soap for Men• I Can’t Believe It’s Not Butter
(Starring Fabio)• HBO• HP ToyRama
• GEICO• GLAD• Jockey• Pet Mustache (Burger King)• Rice Krispies• Dial Soap Manluge Game• Dial for Wussies• Wrigley’s Gum• UPS• Taco Bell
Linda Bustos, 110 Ways Retailers are Using Social Media Marketing, http://www.getelastic.com/social-media-examples/
VIRAL MICROSITES
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Chapter Summary• Marketing is the process of developing
mutually satisfying relationships with customers
• Classic marketing mix model consists of the Four Ps: product, place, promotion, and price
• A brand is a name or logo that identifies a product or service in consumers’ minds
• A domain name (URL) can be a tool for building a brand
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Chapter Summary(continued)
• Market research involves collecting and analyzing data using primary or secondary research
• A marketing plan provides details for the marketplace analysis portion of a business plan– Executive Summary– Situational Analysis– Objectives, Strategies, Tactics– Budget and Performance Measures
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Chapter Summary(continued)
• Online marketing tools– Search engine optimization (SEO)– Online ads and opt-in e-mail/newsletters– Search tool and portal advertising– Link exchanges and online forums– Business blogs, RSS feeds, affiliate programs– Web rings
• Traditional marketing tools– Radio, TV, print ads, public relations