Modul 2

Internet Marketing

Trainer : Aleksandar Bojović

Kragujevac 28.01.- 01.02.2008.

• Globalization• Technological progress• Deregulation

• “Behind every problem lies brilliant hidden chance”

• “satisfying needs in a profitable way”• Object of marketing: products, services,

experiences, events, people, destinations, property, organizacije, information and ideas

Product Orientation

Production Orientation

Sales Orientation

Marketing Orientation

Social Responsibility Orientation

End of 17th century - 1930

1950

1970

• Customers will buy every product that is easily accessible and not too expensive

• “Production creates its own demand”• “Give them every colour, as long as it is

black”• Applicable concept in situations when:

– Demand exceeds supply of products– Production costs are high

• Orientation on improvement of quality, performance and innovation of product

• “The Best Mousetrap”• Marketing Myopia• US railways

• After 1930 till 1950• Concept insists on sale and production

efforts to stimulate the interest of customers

• The object is to sell what was produced rather then produce what market needs

• Concept is applicable for less desirable goods

• Identifying the needs of target market and adjusting organization to fulfil these needs more effective and efficient then competition

• push- pull vs. pull - push

Starting point

Focus Means Objectives

(a) (a) Sales cSales conceptoncept

(b) Marketing (b) Marketing cconceptoncept

• Organization that satisfies identified needs of target market better then competition but in the way which protects wealth fare of customers and society

• Market segmentationMarket segmentation – demographics, psychographics, behaviouristic ... and other criteria

• Targeting Targeting is selection of the market segments that organization can serve in the best possible way

• Positioning Positioning is designing of company’s offer in the way that enables company to position its self in the desired place in the mind of customer on the target market

Marketing mix

Target marketProductqualitydesigncharacteristicsbrendpackagesizeservices warrantyreclamation

Prisepricelistdiscountsperiod for paymentterms of payment

Promotionsales promotionadvertisingsales forcePRdirect marketing

Distributiondistribution channelsavailabilityassortmentlocationtransportstocks

• WWW – world wide web – immensely big public network of computers that connects all kind of users to each other from all over the world and with incredibly big “information storage”

• “Incredibly big information Highway” which delivers bits with enormous speed from one location to another

• “Main actor” or “supporting leading role” in all innovations that came up in so called “New age Economy”

The age of the

Internet

The age of the

Internet

Digitalization and Connectivity

Digitalization and Connectivity

Explosion of Internet Usage

Explosion of Internet Usage

New types of mediators

New types of mediators

Customizationand

customerization

Customizationand

customerization

STATISTICS OF INTERNET USAGE AND POPULATION  

RegionPopulation

( 2007 estimation.)Population

% of the worldInternet usage,

last available data% Population( Penetration)

Usage % of the world

Increasing of usage

2000-2007

Africa 941,249,130 14.2 % 44,234,240 4.7 % 3.5 % 879.8 %

Asia 3,733,783,474 56.5 % 461,703,143 12.4 % 36.6 % 303.9 %

Europe 801,821,187 12.1 % 343,787,434 42.9 % 27.2 % 227.1 %

Bliski istok 192,755,045 2.7 % 33,510,500 17.4 % 2.7 % 920.2 %

North America 334,659,631 5.1 % 237,168,545 70.9 % 18.8 % 119.4 %

Latin America, Caribbean Islands

569,133,474 8.6 % 122,384,914 21.5 % 9.7 % 577.3 %

Oceania / Australia 33,568,225 0.5 % 19,243,921 57.3 % 1.5 % 152.6 %

Total 6,606,970,166 100.0 % 1,262,032,697 19.1 % 100.0 % 249.6 %

Over 1 500 000 users!!!

• ComfortComfort– shops that work 24/7, 365 days during the year• SavingsSavings– enormous number of suppliers just “click” away

from customers• ChoiceChoice– the world is the limit when it comes to web,

virtual stores can offer almost unlimited assortment • PersonalizationPersonalization– creation of profiles according to

personal needs and preferences over the great number of web portals

• InformationInformation– even though human interaction is missing, it is almost impossible to find sales force that can provide you so much information like internet is providing

• Improving of relations with customersImproving of relations with customers –1-1 relation, interactive relation, companies could have feedback about needs and wants of the customers

• Cost savingsCost savings – companies could save by restriction of rent, maintenance and insurance costs

• Increasing of business efficiencyIncreasing of business efficiency – due to direct negotiations, transactions are faster and there is no information gap

• FlexibilityFlexibility– internet provide to the companies possibility to update catalogues in every moment in order to respond to volatile market conditions

• GlobalGlobal medium medium – just “click” away stands possibility to pass from one country to another

• SegmentationSegmentation– “data warehose”, “data mining”• TargetingTargeting– od “broadcastinga” do “narowcastinga”• PositioningPositioning– faster feedbacka about results• Price Price – internet will continue to push prices

downwards and decrease margin, buy.com, priceline.com

• DistributionDistribution– classical companies vs. on-line distributors

• PromotionPromotion– enormous media fragmentation, new communication channels and mediums

• ProductProduct– customization of the product according to feedback and comments of customers

Internet Marketing 2.day

• Market relations after Internet introduction• Business relations after Internet explosion• Internet marketing plan

B2C (business-to-consumer) B2B (business-to-business) C2C (consumer-to-consumer) C2B (consumer-to-business)

Customer Oriented Business Oriented

Initiated by company

Initiated by customer

• Sale of products and services to final customers by the Internet

• Purchase over the Internet makes growth year after year - $ 428 billions in 2004.

• Products usually purchased over the internet: travel services, clothes, travel services, clothes, hardware hardware andand softwear softwear for for computerscomputers, , electronic devices, books, music and electronic devices, books, music and movies, sports equipment, flowers and gifts, toys, movies, sports equipment, flowers and gifts, toys, healthcare products, house and garden keeping healthcare products, house and garden keeping productsproducts

• www.calyxandcorolla.com

• Realization of business between partners by Internet usage

• Net worth of transactions during 2003 was $4 billions• One third of overall transactions between business

partners in 2006 was conducted over the Internet• B2B Forms:

– Web portals design for business partners – www.sun.com– Exchanges on electronic virtual markets www.covisint.com – trade

networks where meet each other enormous number of sellers and buyers

– Private business networks – trade networks between one seller and one buyer

• Exchange of goods and information between customers over the Internet

• eBay – in 2005. more then 42 millions of registered users, worth of conducting transactions was more then $15 billions, 16 millions items in 27000 categories

• Forums – discussion groups that meet each other on the servers. They could be commercial or non commercial character www.elitesecurity.org

• “worth of mouth” gets bigger dimensions and becomes “worth of web”

• Exchange over the Internet in which customers are searching for producers, collecting information about offers, initiate transactions, even dictating transaction terms

• www.priceline.com – potential buyers offer price for flight tickets, tourist trips

producerproducer

producerproducer

producerproducer

Electronic distribution channels

Electronic distribution channels

Classical distribution channels

Classical distribution channels

Classical distribution channels

Classical distribution channels

Electronic distribution channels

Electronic distribution channels

customers

customers

customers

customers

customers

customersa)

b)

c)

Internet marketing

e-mailing

Web site developme

nt

Advertising and promotion over

the Internet

Creation of web

communities

Content of marketing plan

I Resume and content Short overview of marketing plan

II Market analysis Analysis of sales, costs, profit, competition

III Analysis of opportunities and KSF

SWOT analysis and critical factors about the product

IV Objectives Defining of objectives in terms of sales scale, market share and profit

V Marketing strategy Presentation of integrated overall marketing approach used for fulfilling of aims

VI Action plan Presentation of more detailed plans and time frames for meeting the objectives

VII Planned income statement

Foreseeing of financial results

VIII Control Indicators and procedures for keeping track with plans

Basic management knowledge and skills are prerequisite before developing your business web presentation

Successful web marketing is a combination of different marketing methods

Customer is the only criteria when you make decisions about web business, from which design to which method

If you have already in a business, probably you will have to change your current marketing mix

How can you find your current customers on the internet

How can you find your new clients on the web• Sniper vs. Shotgun

Three main criteria for checking of your marketing plan:• Do your plans follow the needs and wants of

target markets• Is your plan financially acceptable• Are you capable and do you have capacities to

implement and realize your plans

• Which strategy will you use after starting your business over the internet:

• Serving your current customers at a cheaper rate

• Penetrate on the new markets• Diversify assortment of your products and

services

• Numbers without you can’t measure your internet business success:– Break even point

– Return on investments (ROI)

– Costs of new potential customer acquisition

goodssoldoftsrevenuessales

siteainingmaoftsFixedBEP

___cos_

_int__cos_

profit

sinvestmentROI

customerspotentialgnewcoofnumber

tsmarketingcustomerpotentialoftsaqusition

__min__

cos____cos_

• Specifying objectives for your web site:– Providing customer service through information– Branding your company or product– Generating leads or qualifying prospects– Generating revenue through sales– Generating revenue through advertising– Attracting of business partners, investors... – Introducing innovations in your business

• Defining your target market: segmentation– demographic, behavioural, geographic, industrial... Choose markets that you can serve the best

• Marketing Tag: It takes hard man to breath soft chicken – Frank Perdue (1971)

• Competitors: if you don’t know, ask Google!!

• 4Ps: Place, Price, Promotion & Product• Understanding why people buy: Maslow’s

triangle

• Fishing where the fish are• Marketing online is part of overall marketing so

called Integrated marketing communication (IMC)

Internet Marketing 3. day

• Deciding who will design your website • Izrada web prezentacije • Structure of web presentation

• Are you familiar with HTML, PHP, JavaScript?• Are you an experienced photographer? • Be objective about your skills • Would you let someone without experiences to

design your web site?– time is money!!!• Deciding who will design your web site is

STRATEGIC DECISIONSTRATEGIC DECISION

• You can create your site with professionally designed templates– Strengths:

• Can save you significant money while maintaining graphic identity• Can be quickly launched and fully operative• Since the design is already prepared you can focus on content• Use a template as a strategic placeholder and build web presence

– Weaknesses:• Not flexible for updating• Not representing your business exactly in a way you wanted to be

– You can choose templates at three different levels: costs, customizability and skills required

• Right web designer – agency for you– See who designed your favourite sites– See who designed your competitors site– Ask others in your local trade association for

names of providers they use.– Look at Web sites for regional or statewide

associations of Web professionals

• A preliminary site index helps you gather your ideas in one place

• Organize your site index strategically, with the most important information at the top

• Take enough time in preparation of this tool• Site index must represents marketing goals

that have to be attained by web site• Your site index is an important document of

Request for Proposal

• RFP is a convenient way to get bids from service providers on the same set of tasks

• Elements of good Request for Proposal:– A summary of the goals, objectives, and target

market for the site– A list of desired features, site size, and other details– A draft site index– A list of special services needed– A timeline for development– Information on how and when proposals will be

evaluated

• A good domain name is:– Easy to say in person – www.petar-77.com– Easy to understand over the radio or on the phone –

www.redasp.com – Easy to spell– Easy to type – Your domain name can be as long as

59 characters– Easy to read in print and on line ads– Easy to read in address toolbar– mrnrm, ililill– Easy to remember - www.redasp.com

• You have 4 seconds to make first impression!!!• Font, pictures, activities ... everything on your

site must appeal to the target audience • Stickiness is what you want from your site• Give them reason to come back for more –

picture of the day, no comment, weather forecast...

• “What’s on this site for me?!”• Use the direct narration - You• Imperative verbs – choose, apply

• The easier you can make it for visitors to achieve what they want, the more likely for your site is to succeed

• Use AIDA technique for your site:– Attention - you have 4 seconds!!! – put some interesting graphics

or headline that grabs– Interest – build interest with site design and navigation that will

give you time to present the content of your site– Desire – create a desire and a sense of urgency as visitors move

them selves toward taking an action – buy now for free shipping– Action – right from the beginning make it obvious what you want

visitors to do, then ensure visitors that is extremely easy for them to take those actions

Company Logo

The most important part

of the site

Main graphic – showing the purpose of the site

Important text and other important things must not fall below visitors view, he must not scroll down in order to

come to them

Company contacts and main site navigation

• The main menu of options appears consistently on every page in the same place

• The footer of each page include links to the main pages• Secondary menus cue users with a glimpse of what they will find

within section• A linkable sitemap or index offers the overall layout of a a site at

a glance• The appearance of links changes to let users know where they

are• An onsite search engine should be available for large web sites.

On site search has a high marketing value. • Navigation should have words, non nameless icons that visitors

have to remember• You should check all links and navigations before launching web

presentation

• In developing of your web content you should follow next rules :– Use inverted pyramid– Grab readers with head lines Koristite upečatljive

naslove, write strong leads– Stay above fold– Avoid long, scrolling pages– Emphasize second person– Stay informal keep it short– Include text links– Have others read what you write– Proofread your text

• You should use rich media for your web site:– If the media adds marketing value– It makes it easier to use or otherwise enhance the

user experience– The gold for your web site demands it– Your target audience wants it or expects it– You need to use it to stay even with, or ahead of,

your competition

• If you can’t afford to do it right, don’t do it at all!!!

The conversion funnel

People who see your URL

Visitor s to site

Prospects

Qualified Leads

Buyers

2-4%

Internet Marketing 4. day

• E-mailing as a promotion tool • Creating of web communities and forums• On line advertising – banners i pay per click

•2.5 trillion e-mails flood inboxes every day • 70% of this e-mails are spam• how can you reach target market?

•“Marketing je deo biznisa, ali celokupan biznis je marketing”

• Branding with signature blocks• Letting autoresponders do the work•Speeding response time with packaged blurbs• Sending bulk or group e-mail

Jan ZimmermanAuthor, Web Marketing For DummiesStrategic Web Marketing & Site ManWatermelon Mountain Web Marketin4614 Sixth St. NWAlbuquerque, NM 87107t: 505.344.4230f: 505.345.4128e: info@watermelonweb.comw: http://www.watermelonweb.com

• fairly high percentage of CTR compared to other forms of online advertising• Key success factor is to find right audience• If you are aiming at a demographic older then 25 years old newsletter is right thing for your

• How to improve efficiency of your newsletter? Measuring Bounce rate Measuring of Open rateMeasuring Unsubscribe rate CTR=number of links to your site/number of opened newsletters A/B testing

• How to create an effective newsletter?

Don’t forget branding Entice the subscriber Create a sense of urgency Ne preterujte sa “!!!” u naslovu pisma Use small photos Accommodate newsletter to subscribers who use slow connections

• How can you find new names for your newsletter list

You can collect new e-mail addresses offline at:• Networking events• Fairs• Whenever you have live customer contact• In your store

You can collect new e-mail addresses online when:• Offering something free for subscribers• Place a newsletter opt-in check box on the same form

customers fill out when purchasing online• Put a newsletter opt-in check box on any submission

form on your web site

- An affiliate program is an online referral system that offers a commission to the source of the lead

- Forms of affiliate programs: banners and sponsored links

- Affiliate programs don’t have to be always paid, there can be arranged exchange of banners and links without any payments

• Several questions to think about: How will you define a transactions? How much will you pay for transactions? How many affiliates do you want? Will you establish and enforce policies about affiliates’ competing with your site for PPC of e-mail advertisingDo you have support staff to communicate with affiliates on regular basis? When you figure the commission and implementation expenses into your cost of sales, what happens with BEP?

• Guerrilla marketing employs somewhat unconventional promotion methods (online or offline) to reach your audience, usually at low cost• The most common used technics:

• Chat rooms, • Message boards, • Blogs, • Social networks

4 simple rules

• Follow your fish• Seven is your lucky number• Plan your work and work your plan• Keep track of your results

• By participating in existing chat rooms or massage boards you can spread the word subtly • Pick 1-2 rooms, think rifle not shotgun• Rules:

• Use your job title to create credibility• Rather then pontificate, leave your posts open• Always conclude with a signature block

• Blogs represents form of electronic journal•With absolute numbers growing rapidly, blogs are not for everyone. You care about blogs only if your target audience uses them• Getting the most out of blogs:

• Comment on an article written by the blogger• E-mail blog owner to ask for a mention in his blog• Note blogs that accept paid advertising for future use

Social Networks

• Social networks sites, wheatear business or personal, encourage participants to interact with others who share their interests or mutual objectives•Contrary to newsletters this method is suitable for demographic audience from 15 – 34 years old• This technique is very useful for those in the entertainment, fashion and music industry