11 business-to-business marketing online marketing and b2b haas school of business uc berkeley fall...
TRANSCRIPT
![Page 1: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/1.jpg)
11
Business-to-Business MarketingOnline Marketing and B2B
Haas School of BusinessUC Berkeley
Fall 2008Week 14
Zsolt Katona
![Page 2: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/2.jpg)
Today’s Topics
• Online B2B Advertising
- brand advertising
- product advertising
• Social Interactions and B2B Marketing
- online sales (eMarketplaces)
- relationship building/management
• Buying and Selling Eyeballs
- search advertising
- other traffic trade
![Page 3: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/3.jpg)
US Online Advertising Spending
Year B2B Online Total Online Share
2006 $2.8b $16.9b 16.6%
2007 $3.5b $21.4b 16.4%
2008 $4.4b $27.5b 16.0%
2009 $5.3b $32.5b 16.3%
2010 $6.4b $37.5b 17.1%
2011 $8.0b $42.0b 19.0%
![Page 4: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/4.jpg)
B2B Spending Increase Next Year
B2B Product B2B Services
Overall 1.61% 0.30%
Nonsales hires 6.17% 1.44%
Traditional Advertising 1.72% 5.55%
Internet Advertising 12.87% 17.75%
•Online marketing is the second most used vehicle after in-person events
![Page 5: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/5.jpg)
Online B2B Advertising
• Brand Advertising
- Banner Ads: Flash, Video
- Targeted, but wide audience
- Link usually goes to home page
• Product Advertising
- Search Advertising
- Measurable
- Link leads to a page where you can take action
- Searchers are in different phases of buying cycle
- Some words are searched by both businesses and consumers
![Page 6: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/6.jpg)
Where do people in look for information
IT R&D Engineer Purchasing Exec Mgmt
Search engine 69% 67% 62% 63% 67%
Intranet 15% 15% 18% 13% 12%
Physical Library 2% 5% 3% 3% 2%
Colleauge or expert
14% 9% 11% 11% 15%
Vendor Web Site
4% 2% 4% 6% 3%
Source: Outsell Information Markets Survey
![Page 7: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/7.jpg)
Where to advertise?• Brand Advertising
- Economist, Financial Times
- Industry Specific Portals• Product Advertising
- B2B Portals
- Thomas Register (manufacturers and distributors)
- KnowledgeStorm (tech search engine)
- Bitpipe (white papers for IT)
- Business.com (general business search)
- Usually buy search ads themselves
- Offer hybrid deals and service
![Page 8: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/8.jpg)
![Page 9: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/9.jpg)
![Page 10: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/10.jpg)
10
![Page 11: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/11.jpg)
How to do it?
• What do you do with the incoming clicks?
• Series of micro-conversions to sales
- separate different decision makers
- separate decision makers in different stages
- send consumers to retailers
- establish dialog with end consumers
- start blogs to find out what users want
• 47% of users make purchase online after starting to search online (55% for up to 10K, 31% above 100K)
![Page 12: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/12.jpg)
Conclusion – Online B2B Advertising
• Companies spend significant amounts on it• Differences from B2C
– Goal: less emphasis on directly selling products
– More general brand advertising
– Separate B2B traffic
– Separate decision makers in different stages
• Carefully build the website before starting to drive traffic there: Challenges
- Reaching decision makers
- Deepening relationships
- Measuring marketing results
![Page 13: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/13.jpg)
US B2B Online Social Network Advertising
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012
Spending($ millions)
![Page 14: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/14.jpg)
Social Networks and B2B• Existing social networks
- Manage professional relationship- e.g. LinkendIn (alliance with NYTimes.com)- Visa Business Network on Facebook
• Create own social network- to connect customers, partners- vertical industry networks: ITtoolbox, LawLink
• Opportunities- find influencers and target them- conversation mining
![Page 15: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/15.jpg)
The Future
• MMORPG-s (morpegs): massively multi-player online role-playing games
• Games: pre-fabricated, themed fantasy worlds
• Example: World of Warcraft– Introduced by Blizzard Entertainment
– ~15 years old
– Over 10 million subscribers (price: $20/month)
– Theme: ‘Tolkien’-type mythologies
– Defined goal: slaughter monsters and each other
![Page 16: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/16.jpg)
New morpegs: ‘making not slaying’
• Platforms: Virtual worlds entirely generated by users• Example: Second Life
– Owner: Linden Labs– Founded by Philip Rosedale after the novel ‘Snowcrash’.– ~ 8 years old– Explosive growth since summer 2006, but in trouble recently– > 14 million subscribers with ~ 1 million regulars/month– ~ $1 million spent by residents per day– 65k acres of virtual land – No defined goal: people can do whatever they want and own
whatever they build. So what do they do?
![Page 17: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/17.jpg)
They party!
![Page 18: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/18.jpg)
They socialize with stars like Susan Vega and Bob Dylan playing live
![Page 19: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/19.jpg)
They shop!
![Page 20: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/20.jpg)
![Page 21: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/21.jpg)
They build!
![Page 22: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/22.jpg)
![Page 23: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/23.jpg)
They go to church!
![Page 24: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/24.jpg)
And may get married!
![Page 25: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/25.jpg)
They also need a home!
![Page 26: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/26.jpg)
![Page 27: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/27.jpg)
![Page 28: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/28.jpg)
There are cities!
![Page 29: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/29.jpg)
![Page 30: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/30.jpg)
They do everything…and more
• Culture – museums, cinemas, theaters, concerts..• Sports - races, adventures• Entertainment: film festivals, reality shows• Nightlife – gambling, sex, parties…• Shopping, shopping, shopping….• Work – top incomes are ~$200k• Business - thousands of profitable businesses• Crime – gunshots, retail fraud, terrorism• Politics – democracy, independence movements• Currency, real estate, stock markets• …..
![Page 31: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/31.jpg)
Major corporations are present
• Starwood Hotels – showrooms/reservations• Toyota, Nissan – sell virtual cars• American Apparel – setup a virtual store for clothes• U2, Duran Duran, Susan Vega - concerts• IBM – business solutions (owns 15 islands)• Intel – tech conferences, product information• Reuters – permanent correspondent - withdrawn• Sweden has an embassy• Presidential candidates’ headquarters (Mark Warner, Sarkozy)• US congress – investigates taxable income earned• FBI investigates illegal gambling• INSEAD• …
![Page 32: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/32.jpg)
![Page 33: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/33.jpg)
![Page 34: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/34.jpg)
![Page 35: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/35.jpg)
![Page 36: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/36.jpg)
![Page 37: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/37.jpg)
![Page 38: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/38.jpg)
INSEAD’s SL campus
![Page 39: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/39.jpg)
![Page 40: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/40.jpg)
![Page 41: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/41.jpg)
Booming real estate market
• Land prices– ~ $100 for 4000 m2, $1600 for a small island, $10-200 monthly rents
depending on land size– Land prices evolve like in real markets
• Hundreds of real estate agents– David Storey: $26,500 island on Entropia U.– Anshe Chung:, 8 million m2 assets– themed neighborhoods– construction business, retail business– restrictions, privacy, …
• Lawsuits (Bragg against Linden Lab)
![Page 42: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/42.jpg)
Opportunities for Businesses(Internal)
• Virtual office
• Virtual lab – development/collaboration center (Unilever, Xerox)
• E-learning/training – workshops (Intel, IBM)
• Conferences – meetings (IBM…)
• Recruiting – community building (Areva, Cisco, l’Oreal...)
![Page 43: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/43.jpg)
IBM uses virtual worlds to facilitate collaboration between employees
![Page 44: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/44.jpg)
Sun Microsystems’ virtual office
![Page 45: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/45.jpg)
Health-care professionals use virtual worlds to train doctors and nurses
![Page 46: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/46.jpg)
An energy company uses Forterra Systems to train employees to handle hazardous materials on a virtual oil rig
![Page 47: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/47.jpg)
Opportunities for Businesses(External)
• Marketing Communications– Advertising/product placements (series, films, L’Oreal)
• $15 million spent in 2006• Over a dozen metaverse ad agencies
– Corporate identity/image– Demos, show rooms, product trial– Build community of clients – community-based brands– Trade-shows (Cisco, Startus,..)
• Alternative Channel– Sales meetings with customers– Stores (branches, shelf space, assistance)– Procurement interfaces (auctions, markets)
• Market research – Test designs (Sears, Toyota)– Customer focus groups
![Page 48: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/48.jpg)
Xerox researchers explore Second Life for customer demos
![Page 49: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/49.jpg)
Cisco Systems – virtual summit for channel partners
![Page 50: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/50.jpg)
Wisconsin architect John Brouchoud shows model home on Second Life
![Page 51: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/51.jpg)
Challenges
• ID and security – Payment– Transactions– Hackers
• Backbone logistics• Availability of the system
– Servers– Infrastructure (bandwidth)
• Competing platforms – Compatibility – Transferability of avatars– Balcanisation
• Legal issues– Copyright– Ownership rights– Taxation
![Page 52: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/52.jpg)
Uncertain future…
![Page 53: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/53.jpg)
Conclusion – Social Networks and B2B
• Emerging area• Not very significant yet, but could take off
• Virtual Worlds/Environment seems really useful in some areas
![Page 54: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/54.jpg)
Multi-sided markets
MediaConsumers Advertisers
Payment (free content) Payment
Attention Attention
Website 1
Consumers
Website 2
Website 3
Two-sided markets
![Page 55: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/55.jpg)
Buying and Selling Traffic
• Ways to acquire traffic
– Subsidizing your users
– Advertising on other sites
• What to do with your traffic?
– Charge them directly
– Sell advertising
• How do you price
– Your advertising space?
– Your product or service?
![Page 56: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/56.jpg)
A Research Project
• How much advertising should you sell?• How do you price the advertising?• How much advertising should you buy?
• The answer depends on the margin you can make by selling your product or service (commercial margin)
![Page 57: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/57.jpg)
Examples
![Page 58: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/58.jpg)
Examples
![Page 59: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/59.jpg)
Examples
![Page 60: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/60.jpg)
Results
•Sites with a high margin should buy more advertising and•Sell less•Sites with high margin should charge more for advertising space
![Page 61: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/61.jpg)
Pricing Methods
PPV PPAPPC
Publisher Low Medium High
Advertiser High Medium Low
Uncertainty/Risk
•PPC is most common
•PPV is used for branding (flash/video)
•Vertical search engines have combination of PPC and PPV
•PPA works with affiliate programs, but still to take off
![Page 62: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/62.jpg)
Search Advertising
•Online advertising expenditures: 9% of all
•Search advertising 40% (exceeding $10 billion)
•Dominated by Google (77% market share)
•Some keywords cost up to $70/click
•Target to self-selected groups
•Attract consumers with the possibility of search itself
•How to price search advertising?
![Page 63: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/63.jpg)
Another Research Project
![Page 64: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/64.jpg)
Advertising Intermediaries
Website 1
Consumers
Website 2
Website 3DoubleClick
![Page 65: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/65.jpg)
An Alternative Way
• Get Traffic Directly from Domain Owners
• Redirect it to Advertisers– Based on auction – For different keywords
• Example: Sendori.com• Advantages to Publishers
– Each visitor is monetized – Visitors may return to original domain
• Advantages to Advertisers– Higher conversion rates– Users do not see the advertising
![Page 66: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/66.jpg)
Takeaway
• Online Advertising is Important in B2B– Many decision makers use search engines– Be aware of the decision process
• Social Networks and Virtual Worlds are Emerging Areas– Ideal environment for building and managing
relationships
• The Web as an Advertising Medium– Each site is a potential buyer and seller at the same time– These transactions involve B2B interactions
![Page 67: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/67.jpg)
Industrat Final Round
![Page 68: 11 Business-to-Business Marketing Online Marketing and B2B Haas School of Business UC Berkeley Fall 2008 Week 14 Zsolt Katona](https://reader035.vdocuments.net/reader035/viewer/2022070410/56649ebb5503460f94bc34c9/html5/thumbnails/68.jpg)
Presentation Guidelines– 15 minutes, including questions and the following:
• What was your original strategy?
• What went wrong (if any)?
• What was the corrected strategy?
• What is the single biggest strategic mistake you made?
• How did you work together as a team?
• What was your experience in building partnerships?
• Tell us about your competitors
• Provide forecast of your total unit market share for Korex and Lomex after period 10
– I will transfer you all existing market research before running the last period. You can access it in the decision software: “information > Receive extra market research” on the top menu bar. Then, your Decision Support contains all the data and charts.