Strategies for Marketing, Sales,

and Promotion
Key points
Creating an effective Web presence
Indentifying and Reaching Customer
Creating and Maintaining Brands on the Web
Business models for Selling on the Web

Creating an effective Web presence

Identifying Web Presence Goals
Achieving Web Presence Goals
Meeting the Needs of Web Site Visitors
Usability Testing

Indentifying and Reaching

Customer
The Nature of Communication on the Web
New marketing approaches for the Web
Technology Enabled Relationship

Management

Creating and Maintaining Brands on

the Web
Elements of Branding
Emotional Branding vs. Rational Branding
Other Web Branding strategies
Coasts of Branding
Web Site Naming Issues

Business models for Selling on the

Web
Selling Goods and Services
Selling information or other Digital content
Advertising-Supported Model
Advertising-Subscription Mixed Model
Fee-for-Transaction Models

Creating an effective Web presence

Businesses have always created a presence in the physical

world by building stores, factories, warehouses, and office

buildings.
An Organizations presence is the public image it conveys

to its stakeholders
The stakeholders of a firm include its customers, suppliers,

employees, stockholders, neighbors, and the general

public.
Creating an effective web presence can be critical even

for the smallest and newest firm operating on the web.

Creating an effective Web presence

Identifying Web Presence Goals
Physical space focuses on specific objectives
like
Location convenient for customer to find
Sufficient floor space and features to allow the
selling activity to occur
Balance the need for room to store inventory and
provide employees working space with the costs of
obtaining that space

It is more on satisfying these other objectives

than a designing the space.

Creating an effective Web presence

Whereas On the WebWe have the luxury of intentionally creating a space that
creates a distinctive presence
Can perform many image-creation and image-enhancing
tasks effectively. It can serve as
a sales broacher,
a product showroom,
a financial report,
an employment ad, or
a customer contact point

Each entity that establishes a web presence should decide

which tasks the web site must accomplish and
which are the most important to include

Creating an effective Web presence

Achieving Web Presence Goals
An effective site is one that creates an attractive
presence that meets the objectives of the business or
other organization
These objectives includes
Attracting visitors to the web site
Making the site interesting enough that visitor stay and explore
Convincing visitors to follow the sites links to obtain
information
Creating an impression consistent with the organizations
desired image
Reinforcing positive images that the visitor might already have
about the organization

Creating an effective Web presence

How the web is different
Most of the sites are designed to create an
organizations presence in the web medium
include links to standard information set
The site should give visitor easy access to
A history
Statement of objectives or mission statement
Information about products and services
Financial information and
A way to communicate with organization
Success of the site is largely depends upon how they
offer this information

Creating an effective Web presence

Visitors arrive for many reasons
Learning about products or services that the company offers
Buying the products or services that the company offers
Obtaining information about warranties or service and repair
policies for products they have purchased
Obtaining general information about the company or
organization
Obtaining financial information for making an investment or
credit granting decision
Identifying the people who manage the company or
organization
Obtaining contact information for a person or department in
the organization

Creating an effective Web presence

Meeting the needs of the Web site visitors
Businesses should try to meet the goals summarized below
Convey an integrated image of the organization
Offer easily accessible facts about the organization
Allow visitors to experience the site in different ways and at
different levels
Provide visitors with a meaningful, two-way (interactive)
communication link with the organization
Sustain visitor attention and encourage return visits
Offer easily accessible information about products and
services, and how to use them

Creating an effective Web presence

Usability Testing usability hints
Design the web site around how visitors will navigate the links, not
around the companys organizational structure
Allow visitors to access information quickly
Avoid using inflated marketing statements of product or service
description
Avoid using business jargon and terms that visitors might not
understand
Build the site to work for visitors using the oldest browser software
on the oldest computer connected through the lowest bandwidth
connection- means creating multiple versions of web pages
Be consistent in use of design features and colors
Make sure that navigation controls are clearly labeled or otherwise
recognizable
Test text visibility on smaller monitors
Check the color combinations do not impair viewing clarity for
colorblind visitors

Indentifying and Reaching

Customer
The Nature of Communication on the Web
New marketing approaches for the Web
Technology Enabled Relationship

Management

Indentifying and Reaching Customer

The Nature of Communication on the Web
Two general ways of identifying and reaching customers:
Personal contact and
Mass media

Personal contact model

The firms employees individually search for , qualify and
contact potential customers
Also called as prospecting
Mass media model

Firms prepare advertizing and promotional materials about the

firms and products and services
Delivered through

broadcasting

through radio/ TV,

printing them in newspaper and magazines,
Posting them on highway billboards or
mailing them

Types of interactions
One-to-many
Mass media
Seller sends out carefully produced messages

to a large audience.
Seller is active; buyer is passive.
One-to-one
Personal contact
Salesperson interacts with customer directly.
Trust building is important.
Both seller and buyer participate actively.

The Web
Many-to-one
Many active potential customers seek out

information from resources produced by the

seller. Example: Book review sites, fan sites
One-to-one
E-mail contact with a seller
Many-to-many
Newsgroups and interactive Web sites
Primary characteristic: The buyer is active and
controls the length, depth, and scope of the
search.

Effectiveness of mass
media
Mass media efforts are measured by estimates of
audience size, circulation, or number of

addresses.
Money spent on mass media is in dollars per

each thousand people in the estimated

audience.
This pricing metric is called cost per thousand and

is often abbreviated CPM.

Micromarketing
As mass media lost its effectiveness (new and

improved!), one approach was to divide a pool of

potential customers into segments. This is called
market segmentation.
Targeting very small market segments is called

micromarketing. Micromarketing is expensive

using traditional means, but more cost effective
on the Web.

Comparisons
The Web has:
Better effectiveness than mass media
More trust than mass media
Lower cost than personal contact
Less trust than personal contact
It is believed that a move toward the side
of personal contact is more effective.
Increase the trust level
Increase the personalization

Indentifying and Reaching Customer

New marketing approaches for the Web
The Web is an intermediate step between mass
media and personal contact
High
level
trust
Personal
contact
The web
Mass
media
Low
level
trust

Technology and
marketing
Technology-enabled relationship

management is when a firm obtains detailed

information about customer preferences, needs,
behavior and buying patterns and uses that
information to:
set prices
negotiate terms
tailor promotions
add product features
customize its relationship with the customer.

Seven customer
interaction dimensions

Dimensions

Technology-enabled
relationship management

Traditional
relationships with
customers

Advertising

Provide information in
response to specific customer
inquiries

Push and sell a

uniform message to all
customers

Targeting

Indentifying and responding to Market segmentation

specific customer behaviors
and preferences

Promotions and
discount offered

Individually tailored to
customer

Same for all customers

Distribution
channels

Direct or through
intermediaries; customers
choice

Through intermediaries
chosen by seller

Pricing of products
or services

Negotiated with each

customer

Set by seller for all

customers

New product
features

Created in response to
customer demands

Determined by seller
based on research and
development

Measurements
used to manage
the customer
relationship

Customer retentions; total

value of the individual
customer relationship

Market share; profit

Creating and Maintaining Brands

on the Web
Elements of Branding
Emotional Branding vs. Rational Branding
Other Web Branding strategies
Coasts of Branding
Web Site Naming Issues

Creating and Maintaining Brands

on the Web
A known and respected brand name can present to

potential customers a powerful statement of

quality,
value and
other desirable qualities in one recognizable element

It is easy to advertise and promote because each

product carries a reputation of the brand name

Companies have developed and nurtured their
branding programs in physical marketplace for
many years.

Creating and Maintaining Brands

on the Web
The key elements of Branding are
Differentiation
Relevance
Perceived value

This makes branding for commodity

products like salt or plywood more difficult

Differentiation
A characteristic that sets the product apart from
similar products.
Examples:
Ivory soap: It floats
Dove soap: 1/4 moisturizing crme
Palmolive dish soap: Mild on your hands
Dawn dish soap: Takes grease out of your way

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Relevance
The degree to which the product offer utility to a
potential customer.
The customer must be able to see themselves
purchasing and using the product.
Examples:
Cadillac
Hyundai
Minivans
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Perceived value
The product must have some identified
value.
Products can be different than others and
people
can see themselves using it, but it may
not have
values that they desire.
Example: Subway sandwich ads
comparing fat
values of their product to those found in

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Emotional branding
Ted Leonhardt: Brand is an emotional shortcut
between a company and its customer
Emotional appeals work well on television, radio,
billboards, and print media since the viewer is a
passive recipient of information.

On the Web it is easy to click away from emotiona

appeals.

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Rational branding
Rational branding offers to help Web users
in some
way in exchange for their viewing an ad.
Functional assistance replaces emotional
appeals.
Examples:
Free e-mail services such as HotMail
Free Web hosting such as HyperMart
ShopSmart! program from Mastercard
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Other branding
strategies

Leverage success in one area into another area.

Example: Yahoo!
Affiliate marketing: Descriptions, reviews or other
information about a product on one site are linke
to pages on another site allowing you to purcha
that item.
Example: Amazon.com
Serving as a market intermediary between buyer
and sellers.
Example: Wedding Channel
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Costs of branding

Transferring existing brands to the Web or using

the Web to maintain an existing brand is easier
and less expensive than creating a new brand.
Example: Catalog sales companies
Attempting to create a brand on the Web may
involve spending on traditional mass media
such as television, print, and radio.
Example: In 1998 Amazon.com spent $133
million and BarnesandNoble.com spent $70
million, much of it on traditional advertising.
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Web Site naming issue.

Business models for the

Web
Selling goods and services
Based on the mail order catalog business
Selling information or other digital content
Can be used to expand markets and cut costs
Advertising supported
Used by American network television
Advertising-subscription mixed
Supported via both fees and advertising
Fee-for-transaction
The use of information filtering for profit
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Selling goods and

services

Used for apparel, computers, electronics, and gifts.

The printed catalog is replaced or supplemented by
information on the Web site.
Customers may purchase via phone. (Why?)
Fabric swatches are usually available. (Why?)
Examples:
Dell computers: Flexibility
Lands End: Overstocks
FTD Florists: Traditional advertising
Buy.com: Discounting
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Selling digital content

The Web is an efficient means for selling informatio

Legal research: Lexis Publishing
Digital copies of documents: ProQuest
Electronic versions of journals: ACM Digital Library
Reference materials: Encyclopedia Britannica

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Advertising supported

The success of Web advertising has been hampered

by two major problems:
There is no consensus on how to measure and
charge for site visitor views.
Examples: Number of visitors, number of unique
visitors, number of click-throughs.
Very few Web sites have sufficient number of hits
to interest large advertisers.
Targeted advertising requires that demographics
be collected, a sensitive privacy issue.
One success: Employment advertising
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Advertising-subscription mixed

Subscribers are subject to less advertising and have

greater access to the resources of the site.
Popular with online newspapers.
Examples
The New York Times
The Wall Street Journal
Reuters
ESPN

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Fee-for-transaction
Value-added services are sold in exchange for a
commission.
Travel agencies
Travelocity
Expedia
Automobile sales
Autobytel: An example of disintermediation
Stockbrokers
Insurance companies

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