Electronic Commerce043002

Chapter 4: Marketing on the WebDr. Jing Zhou

Dr. Jing Zhou - School of Computer Science, Communication University of China, Beijing; email zhoujing@cuc.edu.cn; © 2007

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Learning Objectives

In this chapter, you will learn about:

When to use product-based and customer-based marketing strategies

Communicating with different market segments (市场细分 )

Customer relationship intensity and the customer relationship life cycle

Using advertising on the Web

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Learning Objectives

E-mail marketing

Technology-enabled customer relationship management

Creating and maintaining brands on the Web

Search engine positioning (排位 ) and domain name selection

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Key Terms acquisition cost 客户争取成本 active ad 活动式广告 ad view 广告访问次数 ad-blocking software 广告屏蔽软件 affiliate marketing 关联营销 affiliate program broker 关联营销活动经纪 animated GIF GIF 动画 banner ad 横幅 / 旗帜广告 banner advertising network 横幅广告网络 banner exchange network 横幅广告交换网络 behavioral segmentation 客户行为细分

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Key Terms brand 品牌 brand leveraging 品牌延伸 cause marketing 理想营销 click 点击 clickstream 点击流 click-through 点阅率 contextual advertising 内容广告 conversion 转换 conversion cost 转换成本 conversion rate 转换率 cost per thousand (CPM) 每千人成本

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Key Terms crawler 网络爬虫 customer life cycle 客户生命周期 customer relationship management (CRM) 客户关系管理 customer value 客户价值 demographic segmentation 人口细分 domain name hosting 域名寄存 domain name parking 域名挂靠 electronic customer relationship management (eCRM)

电子客户关系管理 four Ps of marketing营销的 4P geographic segmentation 地理细分

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Key Terms interactive marketing unit (IMU) ad format 互动营销

部广告规格 interstitial ad 插页式广告 life-cycle segmentation 生命周期细分 localized advertising本地广告 market segmentation 市场细分 marketing mix 营销组合 marketing strategy 营销战略 marketspace 虚拟市场 micromarketing 微观营销 occasion segmentation 场合细分

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Key Terms opt-in email 许可电子邮件 page view 页面访问次数 paid placement (sponsorship) 付费放置 （赞助放置） pay-per-click model 点击收费模式 pay-per-conversion model 转换收费模式 permission marketing 许可营销 place (distribution) 渠道（分销） pop-behind ad 弹底式广告 pop-up ad 弹出式广告 psychographic segmentation 心理细分 rational branding 理性品牌创建

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Key Terms retained customer 维系的客户 retention cost 客户维系成本 rich media ad 富媒体广告 rich media object 富媒体对象 robot (bot) 网络机器人 search engine optimization搜索引擎优化 search engine placement broker 搜索引擎放置经纪 search engine positioning 搜索引擎排位 search engine ranking 搜索引擎排序 search term sponsorship 搜索关键词赞助 search utility 检索工具

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Key Terms segment 细分市场 site sponsorship 网站赞助 skyscraper ad 擎天柱广告 touchpoint consistency 接触点一致 trial visit 尝试访问 trigger word 触发词 URL broker 域名经纪公司 usage-based market segmentation 使用率细分 viral marketing 病毒营销

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Marketing Strategies

Most companies use term marketing mix (营销组合 ) to describe combination of elements they use to achieve their goals for selling and advertising products and services

When company decides which elements it will use, it calls the particular marketing mix its marketing strategies ( 营销战略 )

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Essential Issues of Marketing

Four Ps of marketing Product (产品 )

Physical item or service that company is selling Price (价格 )

Amount customer pays for product Promotion (促销 )

Any means of spreading the word about product Place (渠道， also called distribution 分销 )

Need to have products or services available in different locations

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Product-Based Marketing Strategies

When creating a marketing strategy

Managers must consider both the nature of their products and the nature of their potential customers

Most office supply stores on the Web (e.g. office depot in China)

Believe customers organize their needs into product categories

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Customer-Based Marketing Strategies

Good first step in building a customer-based marketing strategy Identify groups of customers who share common

characteristics Customer-based marketing approaches

More common on B2B sites (e.g. Sabre Holdings) than on B2C sites

B2B sellers More aware of the need to customize product and

service offerings to match their customers’ needs

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Communicating with Different Market Segments

Identifying groups of potential customers

The first step in selling to those customers

Media selection

Can be critical for an online firm

Challenge for online businesses

Convince customers to trust them

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Trust and Media Choice The Web

An intermediate step between mass media and personal contact

Cost of mass media advertising Can be spread over its audience

Companies can use the Web To capture some of the benefits of personal

contact, yet avoid some of the costs inherent in that approach

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Trust in Three Information Dissemination Models

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Market Segmentation ( 市场细分 )

Targeting specific portions of the market with advertising messages

Segments (细分市场 )

Usually defined in terms of demographic characteristics (人口统计学特征 )

Micromarketing (微观营销 )

Targeting very small market segments

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Market Segmentation Cont’d

Geographic segmentation (地理细分 )

Creating different combinations of marketing efforts for each geographical group of customers

Demographic segmentation (人口细分 )

Uses age, gender, family size, income, education, religion, or ethnicity (种族 ) to group customers

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Market Segmentation Cont’d

Psychographic segmentation (心理细分 )

Groups customers by variables such as social class, personality, or their approach to life

For example auto car companies may focus sports car advertising to people who have a high need for achievement

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Television Advertising Messages Tailored to Program Audience

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Market Segmentation on the Web

The Web gives companies opportunity to present different store environments online

The design of the site can immediate appeal to different market segments, for example

For the young fashion-conscious buyer you may have a site with a wide variety of typefaces, bold graphics and bright color product photos (Steve Madden home page)

For the older, more established buyer you may have a more muted conservative style (Talbots home page)

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Market Segmentation on the Web Cont’d

In the physical world, smaller retail stores usually choose one image that appeals to most of their customers

On the Web, retailers can provide separate virtual spaces for different market segments

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Offering Customers a Choice on the Web Companies can offer a form of one-to-one marketing (一对一营销 ) by allowing customers to customize the retailer’s Web site

One example of this is Dell.com

Offers each customer in Premier accounts its own Web site

Allows individual employees of its customers to create their own personalized pages within the Premier account

This highly customized approach to offering products and services that match the needs of a particular customer is called one-to-one marketing

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Beyond Market Segmentation: Customer Behavior and Relationship Intensity Behavioral segmentation (行为细分 )

Creation of separate experiences for customers based on their behavior

Occasion segmentation (场合细分 ) When behavioral segmentation is based on things

that happen at a specific time Usage-based market segmentation (用法细分 )

Customizing visitor experiences to match the site usage behavior patterns of each visitor

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Behaviour of a Browser (浏览者 )

A browser enters your Web site to browse or surf

In order to generate and maintain interest Web sites should use trigger words (触发词 ) These words jog the memory of visitors,

reminding them to buy from the site As a result users stay longer at the site

A Web site should include extra content related to the product or service offered

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Behaviour of a Buyer (采购者 )

Buyers arrive at your Web site ready to make a purchase

A good Web site design would prevent anything from getting in the way of the purchase As a result a Web catalog might provide a box on

the home page to enter the catalog number and then allow the user to add the product to a shopping cart

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Behaviour of a Buyer Cont’d

The primary goal is to get the buyer to the shopping cart as quickly as possible

The shopping cart Allows the buyer to create an account Allows the user to log in after placing items into

the cart Logging in should be left to the end so that

barriers are not placed in the shopping process

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Behaviour of a Shopper (购物者 )

Shoppers arrive at a Web site wanting to buy a product or service, but require more information before purchasing, so they will get the best deal and the best-suited product

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Behaviour of a Shopper Cont’d

What is important to shoppers are: Comparison tools Product reviews A list of features Users control level of detail for product/service

One day a user might be a browser, the next a shopper

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Customer Relationship Intensity and Life-Cycle Segmentation One goal of marketing

To create strong relationships between a company and its customers

Good customer experiences Can help create intense feeling of loyalty

Touchpoints (接触点 ) Online and offline customer contact points

Touchpoint consistency (接触点一致性 ) Goal of providing similar levels and quality of

service at all touchpoints

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Five Stages of Customer Loyalty

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Five Stages of Customer Loyalty Awareness (知晓 )

Customers recognized the name of the company or one of its products

Advertising a brand or a company name is a common way to achieve this level of relationship

Exploration (了解 ) Potential customers learn more about the

company or its products A large amount of information interchange can

occur between a company and its potential customers

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Five Stages of Customer Loyalty Cont'd Familiarity (熟悉 )

Customers having completed several transactions are aware of the company’s policies

They are also likely to shop and buy from competitors of the company

Commitment (承诺 ) Customers develop a fierce loyalty or strong

preference for the products or brands And are often willing to tell others about how

happy they are with their interactions

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Five Stages of Customer Loyalty Cont'd Separation (分离 )

Customers might be severely disappointed by changes in the level of service or product quality

Company can evaluate the relationship and conclude that customers are costing too much to maintain

An important goal of any marketing strategy should be to move customers into the commitment stage as rapidly as possible and keep them there as long as possible.

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Acquisition, Conversion, and Retention of Customers

Acquisition cost (争取成本 ) Money a site spends to draw one visitor to site

Conversion Converting first-time visitor into a customer

Conversion cost (转变成本 ) Cost of inducing one visitor to make a purchase,

sign up for a subscription, or register

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Acquisition, Conversion, and Retention of Customers

Retained customers (保留住的客户 ) Customers who return to the site one or more

times after making their first purchases

Retention cost (维系成本 ) The costs of inducing customers to return to a

Web site and buy again

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Customer Acquisition, Conversion, and Retention: The Funnel Model

Marketing managers

Need to have a good sense of how their companies acquire and retain customers

Funnel model (漏斗模型 )

Used as a conceptual tool to understand the overall nature of a marketing strategy

Very similar to the customer life-cycle model

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Advertising on the Web

Banner ad (横幅广告 )

Small rectangular object on a Web page that display a stationary or moving graphic and includes a hyperlink to the advertiser’s Web site

Interactive marketing unit (IMU) ad formats(互动营销部广告规格 ) Standard banner sizes that most Web sites have

voluntarily agreed to use

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Banner Ad Placement ( 投放 )

Banner exchange network (横幅广告交换网络 )

Coordinates ad sharing

Businesses pay sites that appeal to one of the company’s market segments to carry ads

Banner advertising network (横幅广告网络 )

Acts as a broker between advertisers and Web sites that carry ads

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Measuring Banner Ad Cost and Effectiveness

Cost per thousand method (CPM ，每千人成本法 ) Pricing metric used when a company purchases

mass media advertising Trial visit (尝试访问 )

First time a visitor loads a Web site page Repeat visits (重复访问 )

When a visitor loads a page several time

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Measuring Banner Ad Cost and Effectiveness Cont'd

Page view (页面访问 ) Each page loaded by a visitor

Impression (印象 ) Each time the banner ad loads

Click-through (点阅 ) If a visitor clicks on an ad that is displayed on a

Web page

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Disguised (伪装的 ) Banner Ads

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Other Web Ad Formats

Pop-up ad (弹出式广告 ) Appears in its own window when the user opens or

closes a Web page Pop-behind ad (弹底式广告 )

A pop-up ad followed very quickly by command that returns the focus to the original browser window

Ad-blocking (广告屏蔽 ) software Prevents banner ads and pop-up ads from loading

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Other Web Ad Formats Cont’d

Interstitial ad (插页式广告 )

When a user clicks a link to load a page, the interstitial ad opens in its own browser window

Rich media (富媒体 ) ads (active ads ，活动式广告 ) generate graphics that float over the Web page

These ads are attention grabbing, but intrusive (侵扰的 )

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Site Sponsorships ( 网站赞助 )

Give advertisers a chance to promote products, services, or brands in a more subtle way

Helps build brand images and develop reputation rather than generate immediate sales

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Effectiveness of Online Advertising A major problem of measuring the effectiveness of

online advertising is the lack of single industry measuring service

Part of the difficulty in measuring the effectiveness of online advertising arises from the way in which site visitors change Web surfing behaviors and habits

Most marketing analysts agree online advertising is much more effective if properly targeted

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E-Mail Marketing Sending one e-mail message to a customer

Can cost less than one cent if the company already has the customer’s e-mail address

Conversion rate (转换率 ) The percentage of recipients who respond to an

ad or promotion Opt-in (许可 ) e-mail

Practice of sending e-mail messages to people who request information on a particular topic, and is part of permission marketing (许可营销 )

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Technology-Enabled Customer Relationship Management Clickstream (点击流 )

Information that a Web site can gather about its visitors

Technology-enabled relationship management

Firm obtains detailed information about a customer’s behavior, buying patterns, etc. and uses it to set prices and negotiate terms

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Creating and Maintaining Brands on the Web Key elements of a brand (品牌 )

Differentiation (差异化 ) Company must clearly distinguish its product from all

others

Relevance (相关性 ) Degree to which product offers utility to a potential

customer

Perceived value (认知价值 ) Key element in creating a brand that has value

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Elements of a Brand

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Emotional Branding vs. Rational Branding Brands

Can lose value if environment in which they have become successful changes

Emotional appeals (感性诉求 ) Difficult to convey on the Web

Rational branding (理性品牌创建 ) Relies on the cognitive appeal of the specific help

offered, not on a broad emotional appeal

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Brand Leveraging Strategies (品牌延伸策略 )

One method for well-established Web sites is to extend their dominant positions to other products and services, called brand leveraging

Yahoo! is an excellent example added search engine function early in its development

acquired GeoCities and Broadcast.com and entered into extensive cross-promotion (交叉营销 ) partnership with Fox entertainment and media companies

added features that Web users find useful and that increase the site’s value to advertisers

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Affiliate Marketing (关联营销 ) Strategies

Affiliate marketing One firm’s Web site includes descriptions, reviews,

ratings, or other information about a product that is linked to another firm’s site

Affiliate site Obtains the benefit of the selling site’s brand in

exchange for the referral Cause (理想 ) marketing

Affiliate marketing program that benefits a charitable organization

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Affiliate Commissions

Affiliate commissions can be based on several variables

In the pay-per-click (点击收费 ) model, the affiliate earns a commission each time a site visitor clicks the link and loads the seller’s page

In the pay-per-conversion (转换收费 ) model, the affiliate earns a commission each time a site visitor is converted into a customer

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Viral Marketing ( 病毒营销 ) Strategies Relie on existing customers

To tell other people about products or services they have enjoyed using

Example

Blue Mountain Arts

Electronic greeting card company

Purchases very little advertising, but is one of the most-visited sites on the Web

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Search Engine Positioning ( 排位 ) and Domain Names

Search engine Web site that helps people find things on the

Web Spider, crawler, or robot

Program that automatically searches the Web Index or database

Storage element of a search engine Search utility (检索工具 )

Uses terms provided to find Web pages that match

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Search Engine Positioning and Domain Names Cont’d

Nielsen//NetRatings

Frequently issues press releases (新闻公报 ) that list most frequently visited Web sites

Search engine ranking ( 排序 )

Weighting factors used by search engines to decide which URLs appear first on searches for a particular search term

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Search Engine Positioning and Domain Names Cont’d

Search engine positioning (排位 ) or search engine optimization (优化 )

Combined art and science of having a particular URL listed near the top of search engine results

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Paid Search Engine Inclusion and Placement

Paid placement (付费放置 )

Option of purchasing a top listing on results pages for a particular set of search terms

Rates vary

Search engine placement brokers (经纪人 )

Companies that aggregate inclusion and placement rights on multiple search engines

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Web Site Naming Issues

Domain names

Companies often buy more than one

Reason for additional domain names

To ensure that potential site visitors who misspell the URL will still be redirected to intended site

Example: Yahoo! owns the name Yahow.com

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URL Brokers and Registrars (注册机构 )

URL brokers (经纪公司 )

Sell, lease, or auction domain names that they believe others will find valuable

ICANN (互联网域名与地址分配中心 )

Maintains a list of accredited registrars

Domain name parking (挂靠 )

Permits purchaser of a domain name to maintain a simple Web site so that domain name remains in use

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Summary

Four Ps of marketing Product, price, promotion, and place

Market segmentation Using geographic, demographic, and

psychographic information can work well on the Web

Types of online ads Banner ads, pop-ups, pop-behinds, interstitials,

and rich media ads

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Summary

Technology-enabled customer relationship management Can provide better returns for businesses on the

Web Firms on the Web

Can use rational branding instead of emotional branding techniques

Critical for many businesses Successful search engine positioning and

domain name selection

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