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Electronic Commerce E-Business, Ninth Edition

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Page 1: Electronic Commerce E-Business, Ninth Edition. Chapter 4 Selling to Consumers Online E-Business, Ninth Edition

Electronic Commerce

E-Business, Ninth Edition

Page 2: Electronic Commerce E-Business, Ninth Edition. Chapter 4 Selling to Consumers Online E-Business, Ninth Edition

Chapter 4

Selling to Consumers Online

E-Business, Ninth Edition

Page 3: Electronic Commerce E-Business, Ninth Edition. Chapter 4 Selling to Consumers Online E-Business, Ninth Edition

• Product-based and customer-based marketing

strategies

• Communicating with different market segments

• Customer relationship intensity and the customer

relationship life cycle

• Using advertising on the Web

• E-mail marketing

• Technology-enabled customer relationship management

• Creating and maintaining brands on the Web

• Search engine positioning and domain name selection

Learning Objectives

23/4/19 3Chapter4 Selling to Consumers Online

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4

Two Communicating with Different Market Segment

Three Beyond Market Segmentation

Eight Search Engine and Domain Name

Seven Creating

And Maintaining Brands on the

WebSix Technology- Enable CRM

One Web Marketing Strategies

23/4/19

Contents

Chapter4 Selling to Consumers Online

Four Advertising on the Web

Five E-Mail Marketing

Page 5: Electronic Commerce E-Business, Ninth Edition. Chapter 4 Selling to Consumers Online E-Business, Ninth Edition

4.1Web Marketing

Strategies

23/4/19 5Chapter4 Selling to Consumers Online

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4.1 Web Marketing Strategies

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• Marketing mix 营销组合– The combination of elements that the company use to

achieve their goals for selling and promoting their products and service.

• Marketing strategy 营销战略– When a company decides which elements it will use, the

particular marketing mix they called marketing strategy– A company’s marketing strategy is an important tool that

works with its web presence to get the company’s message across to both its current and prospective customers.

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4.1 Web Marketing Strategies

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• Four Ps of marketing – essential issues of marketing– Product 产品

• Physical item or service that the company is selling• Brand 品牌 : the customer’s perceptions of the product

– Price 价格• Amount a customer pays for the product• Customer value: the total cost is subtracted from the benefits that a

customer derives from the product– Promotion 促销

• Any means of spreading the word about the product– Place: distribution 渠道

• Need to have products or services available in different locations

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4.1 Web Marketing Strategies

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Chapter4 Selling to Consumers Online

4.1.1

Product-Based

Marketing Strategies

4.1.2

Customer-Based

Marketing Strategies.

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4.1.1 Product-Based Marketing Strategies

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• Web presence must integrate with image and brand• When creating a marketing strategy, managers must

consider both the nature of their products and the nature of their potential customers.

• When customers are likely to buy items from particular product categories, or are likely to think of their needs in terms of product categories, this type of product-based organization makes sense

• Example: Most office supply stores on the Web believe customers organize their needs into product categories

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4.1.2 Customer-Based Marketing Strategies

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• Web sites to meet various types of customers’ specific needs– First step: identify customer groups sharing common

characteristics– Second step: identify subgroups

• Example: Sabre Holdings

• Strategy pioneered on B2B sites• B2C sites now adding customer-based marketing

elements

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Communicating with

4.2Different Market

Segments

Chapter4 Selling to Consumers Online

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Different Market Segments

Chapter4 Selling to Consumers Online

4.2.1 Trust, Complexity, and Media Choice

4.2.2 Market Segmentation

4.2.3 Market Segmentation on the Web

4.2.4 Offering Customers a Choice on the Web

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Different Market Segments

Chapter4 Selling to Consumers Online

• Identify groups of potential customers is just the first step in selling to those customers. An equally important component of any marketing strategy is to selection of communication media to carry the marketing message

• Communications media selection to carry message– Physical world

• Uses building construction and floor space design– Online firm

• Communications media selection: critical• No physical presence• Customer contact made through image projected through media and

Web site– Online firm challenge

• Obtain customer trust with no physical presence

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4.2.1 Trust, Complexity, and Media Choice

Chapter4 Selling to Consumers Online

• The Web– Is an intermediate step between mass media and personal

contact

– Using the Web to communicate with potential customers offers many of the advantages of personal contact selling and many of the cost saving mass media

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4.2.1 Trust, Complexity, and Media Choice

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FIGURE 4-2 Trust in three information dissemination models

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4.2.1 Trust, Complexity, and Media Choice

Chapter4 Selling to Consumers Online

• Mass media 大众媒体– Offers the lowest level of trust, many companies continue

to use it successfully

– Cost of mass media advertising can be spread over the many people in its large audiences, and the cost of ad per viewer is very low

– Many people have developed a resistance to the messages conveyed in the mass media

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4.2.1 Trust, Complexity, and Media Choice

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• The level of complexity inherent in the product or service is also an important factor in media choice– Products that have few characteristics or that are easy to

understand can be promoted well using mass media• Because mass media is expensive to produce, most companies use

it to deliver short message

– Highly complex products and services are best promoted through personal contact

• Allows the potential customer to ask clarifying questions during the promotional presentation

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4.2.1 Trust, Complexity, and Media Choice

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• The Web– The Web occupies a wide middle ground and can be used

for delivering short but focused messages that promote, but can also to deliver longer and more complex messages

– The Web can even be used to engage the potential customer in a back and forth dialogue similar to that used in personal contact selling.

– The Web can offer elements of mass media messaging, personal contact interaction, and anything in between

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4.2.1 Trust, Complexity, and Media Choice

Chapter4 Selling to Consumers Online

• Mass media advertising campaigns that are successful often rely on the passive nature of the media consumption experience

• In contrast, Web users are actively engaged in the medium

• Companies can use the Web to capture some of the benefits of personal contact, yet avoid some of the costs inherent in that approach

• Most experts agree– It is better to make the trust-based model of personal

contact selling work on the web than to adopt the mass marketing approach on the web

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4.2.1 Trust, Complexity, and Media Choice

Chapter4 Selling to Consumers Online

• The Internet has created new communications modalities for individuals and companies– Web log or blog 博客

• Website allowing people to post thoughts and inviting others to add commentary

• Example : Stormhoek ,红酒博友博红酒– RSS ( Really Simple Syndication )简易信息聚合

• Example : Amazon

– 微博• Example : Kogi

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4.2.2 Market Segmentation

Chapter4 Selling to Consumers Online

为什么需要进行市场细分?

市场细分又是为了什么?

为什么能够进行市场细分?

在异质的市场中寻找需求同质的客户群 !

客观基础理论基础

目的性

前提性

外在基础

必要性

企业资源的有限性

客户需求具有相似性

消费者需求差异性的存在

• Market segmentation 市场细分– Divides potential customer pool into segments

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Psychographic segmentation

Demographic segmentation

Geographicsegmentation

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4.2.2 Market Segmentation

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• Geographic segmentation 地理细分

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

– By nation, state (province), city, or even by neighborhood– By urban customer, suburban customer, and rural customer.

• Demographic segmentation 人口细分

– Uses age, gender, family size, income, education, religion, or ethnicity to group customers

• Psychographic segmentation 心理细分

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

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4.2.2 Market Segmentation

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• Television advertisers use all three categories

FIGURE 4-3 Television advertising messages tailored to program audience

• Companies do much more than just match advertising messages to market segments. They also build a sales environment for their product or service that corresponds to the market segment they are trying to reach

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4.2.3 Market Segmentation on the Web

Chapter4 Selling to Consumers Online

• The Web gives companies an opportunity to present different store environments online– Juicy Couture site targets young, fashion-conscious buyers– Talbots site targets older, more established buyers

• Limitations of physical retail stores– Floor and display space– Must convey one particular message

• Web stores– Separate virtual spaces for different market segments– They even allow their customers to create their own stores

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4.2.4 Offering Customers a Choice on the Web

Chapter4 Selling to Consumers Online

• Micromarketing 微观营销– Practice of targeting very small market segments– Hampered by cost increases

• One-to-one marketing 一对一营销– Highly customized approach to offering products, services

matched to needs of a particular customer– The Internet gives the opportunity for highly customized

interactions with customers• Example: Dell

– Offers several different ways to do business with company– Home page links for each major customer group– Dell Premier accounts

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Beyond Market Segmentation: Customer Behavior and Relationship Intensity

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4.3

Chapter4 Selling to Consumers Online

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4.3 Beyond Market Segmentation:Customer Behavior and Relationship Intensity

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Segmentation Using Customer Behavior

Customer Relationship Intensity and Life-Cycle Segmentation

Acquisition, Conversion, and Retention of Customers

Customer Acquisition, Conversion, and Retention: The Funnel Model

4.3.1

4.3.2

4.3.3

4.3.4

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4.3 Beyond Market Segmentation:Customer Behavior and Relationship Intensity

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• Recap– Companies target similar customer groups as market

segments– One-to-one marketing

• Chance to create individually unique Web experiences

• Next step– Beyond market segmentation, even beyond one-to-one

marketing, is when companies use the Web to target specific customers in different ways at different times

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4.3.1 Segmentation Using Customer Behavior

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• Same person– Needs different combinations of products and services

• Depending on the occasion

• Behavioral segmentation 行为细分– Creation of separate customer experiences based on their

behavior– Occasion segmentation 场合细分

• Behavioral segmentation based on things happening at a specific time or occasion

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• Usually, businesses that operate in the physical world can meet only one or a few of a customer’s differing behavioral needs

• In the online world, it is much easier to design a single web site that meets the needs of visitors who arrive in different behavioral modes

• Thus a web site design can include elements that appeal to different behavioral segments

• Marketing researchers study how and why people prefer different combinations of products, services, and Web site features and how these preferences are affected by their modes of interaction with the site

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• Usage-based market segmentation 用法细分

– People want web sites that offer a range of interaction possibilities from which they can select to meet their needs

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

– One set of categories that marketers use today:

Browsers Buyers Shoppers

Three visitor mode

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• Browsers 浏览者

– Visitors just surfing or browsing– Web site: must offer something to pique visitors’

interest– Trigger words 触发词

• Key words included in the web site that are jog the memories of visitors and remind them of something they want to buy on the site

• Prompt visitor to stay and investigate products or services

– Have links to site explanations, instructions for using the site can be helpful to this type of customer

– Include extra content related to product or services the site sells

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• Buyers 采购者

– Ready to make a purchase right away– They best thing a site can offer a buyer is certainty that

nothing will get in the way of the purchase transaction

• Shopping cart – Part of the Web site

• Keeps track of selected items for purchase• Automates purchasing process

– Page offers link back into shopping area

• Primary goal: get buyer to shopping cart as quickly as possible

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• Shoppers 购买者

– Visitors are motivated to buy, but they are looking for more information before they make a purchase decision

– A site should offer comparison tools, product reviews, and features lists

– Remember that a person might visit a Web site one day as a browser, and then return later as a shopper or a buyer

• People do not retain behavioral categories from one visit to the next, Even for the same Web site

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• Alternative models– McKinsey & Company’s six behavior-based categories

Surfers

Simplifiers

Sportsters

Bargainers

Connectors

RoutinersVisitorbehavior

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• Alternative models– McKinsey & Company’s six behavior-based categories

• Simplifiers (Like convenience)

• Surfers (Use the Web to find information and explore new ideas)

• Bargainers (Are in search for good deal)

• Connectors (Use the Web to stay in touch with other people)

• Routiners (Return to same sites over and over again)

• Sportsters (Spend time on sports, entertainment sites)

• The challenge for Web businesses is to identify groups and formulate ways of generating revenue from each segmentation

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4.3.2 Customer Relationship Intensity and Life-Cycle Segmentation

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• One goal of marketing is to create strong relationships between a company and its customers

• One-to-one marketing and usage-based segmentation value– Strengthen companies’ relationships with customers

• Good customer experiences can help create an intense feeling of loyalty toward the company and its products or services

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• Researchers have identified several stages of loyalty as customer relationships develop over time

• A five-stage model of customer loyalty that is typical of these models appears in Figure 4-4

FIGURE 4-4 Five stages of customer loyalty

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• The model shows the increase in intensity of the relationship as the customer moves through– The first four stages: awareness, exploration, familiarity, and

commitment

– In the fifth stages: separation, a decline occurs and the relationship terminates

– Not all customers go through the full five stages

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• Characteristics of the five stages– Awareness 知晓

• Customers recognize company name, product

– Exploration 了解

• Customers learn more about company, products

– Familiarity 熟悉

• Customers have completed several transactions

• Customers aware of returns and credits policies

• Customers aware of pricing flexibility

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• Characteristics of the five stages– Commitment 承诺

• Customer experiences highly satisfactory encounters• Customer develops fierce loyalty or strong preference• To lure customers from the familiarity stage to the commitment

stage, companies sometimes make concessions on prices or terms– Separation 分离

• Conditions that made relationship valuable change• Parties enter separation stage• 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

– Life-cycle segmentation• Customer life cycle (the five stages)• Using stages to create customer groups in each stage

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• 承诺

(新访问者) (新客户) (回头客)

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4.3.3 Acquisition, Conversion, and Retention of Customers

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• One goal of the marketing strategies and tactics– Attract new visitors to a Web site– The benefits of acquiring new visitors are different for web

businesses with different revenue models– Advertising site

• Attracting as many visitors as possible• Keeping those visitors at the site as long as possible

– Site for other revenue models• Turning those visitors into customers

• Acquisition cost 争取成本– The total amount of money site spends drawing one visitor to

site (average)

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4.3.3 Acquisition, Conversion, and Retention of Customers

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• Conversion 转变– Convert first-time visitor into a customer– Advertising site

• Visitor registers at the site• A registered visitor returns to a site several times

– Site for other revenue models• Buy a good or service• Subscribes to the site’s content

• Conversion cost 转变成本– Total amount of money site spends (average) to induce

one visitor to make a purchase, sign up for a subscription, or register

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4.3.3 Acquisition, Conversion, and Retention of Customers

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• Retained customers 保留客户– Customers who return the sites one or more times after

making their first purchases• Retention costs 维系成本

– Costs of inducing customers to return to a web site and buy again

• Most companies are very interested in retaining customers, because the cost of acquiring a new customer is between 3 and 15 times the cost of retaining an existing customer

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4.3.3 Acquisition, Conversion, and Retention of Customers

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• Companies have found that measuring acquisition, conversion, and retention costs is important because it gives them an idea of which advertising and promotion strategies are successful– These measurements are more precise than classifying

customers into the five stages of loyalty in the customer life-cycle model

• Marketing managers need to have a good sense of how their companies acquire and retain customers

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4.3.4 Customer Acquisition, Conversion, and Retention: The Funnel Model

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• Funnel model 漏斗模型

– Conceptual tool• Provides understanding of overall nature of marketing strategy• Clear structure for evaluating specific strategy elements

– Very similar to customer life-cycle model• Less abstract• Better at showing effectiveness of two or more specific strategies

– Provides good analogy for the operation of marketing strategy

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4.3.4 Customer Acquisition, Conversion, and Retention: The Funnel Model

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FIGURE 4-5 Funnel model of customer acquisition, conversion, and retention

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4.3.4 Customer Acquisition, Conversion, and Retention: The Funnel Model

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• The wider the right end of the funnel, the better the strategy.

• The funnel model can be used:– Planning marketing strategies by comparing the projected

results shown in the diagram with the results for alternative strategies shown in separate diagrams.

– Show results that can then be compared with the costs of running the marketing campaign.

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Advertising on the Web

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4.4

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Advertising on the W

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4.4 Advertising on the Web

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4.4.1 Banner Ads4.4.1 Banner Ads

4.4.2 Text Ads4.4.2 Text Ads

4.4.3 Other Web Ad Formats4.4.3 Other Web Ad Formats

4.4.4 Site Sponsorships4.4.4 Site Sponsorships

4.4.5 Online Advertising Cost and Effectiveness4.4.5 Online Advertising Cost and Effectiveness

4.4.6 Effectiveness of Online Advertising4.4.6 Effectiveness of Online Advertising

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4.4 Advertising on the Web

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• Advertising is an attempt to disseminate information in order to affect buyer-seller transactions

• Five-stage customer loyalty model: helpful in creating advertising messages to convey to each audience– Awareness stage

• Advertising message should inform: describe a new product; suggest new uses for existing products; describe specific improvements to a product

– Exploration stage• Message should explain how product or service works and encourage

switching brands

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4.4 Advertising on the Web

Chapter4 Selling to Consumers Online

• Five-stage customer loyalty model: helpful in creating advertising messages to convey to each audience– Familiarity stage

• Message should be persuasive: Convincing customers to purchase specific products

– Commitment stage• Customer sent reminder message

– Separation Stage• Customer not targeted ads

• Most companies that launch electronic commerce initiatives already have advertising programs in place

• Online advertising should always be coordinated with existing advertising efforts

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4.4 Advertising on the Web

Chapter4 Selling to Consumers Online

• Why Internet advertising?– Television viewers are migrating 移动 to the Internet– Cost (cheaper, only about 3 percent of traditional media ) and

more audience (any place) – Richness of format (text, audio, graphics, animation)– Personalization ( one-to-one ad to fit individual viewers)– Timeliness (update anytime)– Participation and interactive (the use of internet itself is

growing)

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4.4 Advertising on the Web

Chapter4 Selling to Consumers Online

网上广告的主要形式

其他广告

网站赞助

活动式广告

插页式广告

横幅广告

文本广告

弹出式广告

弹底式广告

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4.4.1 Banner Ads

Chapter4 Selling to Consumers Online

• Banner ad 横幅广告– Small rectangular object on Web page that displays

stationary or moving graphic– Includes hyperlink to advertiser’s Web site– Can serve both informative and persuasive functions– GIF animated GIFs rich media rotated

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4.4.1 Banner Ads

Chapter4 Selling to Consumers Online

• Interactive marketing unit (IMU) 互动营销部 ad formats– Standard banner sizes that most Web sites have

voluntarily agreed to use

– Endorsed by IAB (Interactive Advertising Bureau ):

– a not-for-profit organization that promotes the use of internet advertising and encourages effective internet advertising.

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4.4.1 Banner Ads

Chapter4 Selling to Consumers Online

• By 2003, using more than 15 different IMU ad formats– 以下其中八种(单位为像素)。

1. 468*60 ,应用最为广泛的广告条尺寸,用于页眉或页脚。2. 120*60 ,这种广告规格主要用于做 LOGO 使用。3. 120*120 ,这种广告规格适用于产品或新闻照片展示。4. 234*60 ,这种规格适用于框架或左右形式主页的广告链接。5. 120*90 ,主要应用于产品演示或大型 LOGO 。6. 125*125 ,这种规格适于表现照片效果的图像广告。7. 392*72 ,主要用于有较多图片展示的广告条,用于页眉或页脚。8. 88*31 ,主要用于网页链接,或网站小型 LOGO 。

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4.4.1 Banner Ads

Chapter4 Selling to Consumers Online

• IAB encourage its members to agree to only 4 standard formats– Medium rectangle 中矩形广告 ( 300*250 )– Rectangle 矩形广告 ( 180*150 )– Leaderboard ad 通栏广告 ( 728*90 )

• A banner ad that is designed to span Web page top or bottom

– Skyscraper ad 擎天柱广告 ( 160*600 )• A banner ad that is designed to be placed on Web page side and

remains visible as user scrolls through the page

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4.4.1 Banner Ads

Chapter4 Selling to Consumers Online

• Banner ad placement 横幅广告投放– Use a banner exchange network

• Coordinates ad sharing• Free, but often difficult to find a group of other web sites that

have formed an exchange or that belong to an exchange that are not direct competitors

– Find Web sites appealing to company’s market segments • Pay sites to carry ad• Take considerable time and effort

– Use a banner advertising network• Acts as broker between advertisers and Web sites that carry ads

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4.4.1 Banner Ads

Chapter4 Selling to Consumers Online

• New strategies for banner ads– When banner ads first appeared on the Web in the mid-

1990s, they were a novelty for Web surfers• As users saw more ads, however, the ads lost ability to attract

attention

– Solutions• Introduce animated GIFs with moving elements• Create ads displaying rich media effects (movie clips)• Add interactive effects (Java programs): respond to user’s click

with some action• Create ads acting like mini video game• Create ads appearing to be dialog boxes

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4.4.2 Text Ads

Chapter4 Selling to Consumers Online

• An ad format that is deceptively simple but very effective is the text ad 文本广告

• Short promotional message– No graphic elements:

• Usually placed along Web page top or right side• Example: Google

– The use of text ads was one of the innovations that helped Google become one of the leading search sites on the Web

– It gave Google an effective way to earn money while providing users with a useful search experience

• Inline text ad– Text in stories displayed as hyperlinks

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4.4.3 Other Web Ad Formats

Chapter4 Selling to Consumers Online

• Pop-up ad 弹出式广告– Appears in its own window when user opens or closes a

Web page– Without usual browser controls– Considered to be extremely annoying

• Must click close button (small) in window of ad

• Pop-behind ad 弹底式广告– A pop-up ad followed by a quick command that returns

focus to original browser window

• Ad-blocking software– Prevents banner ads and pop-up ads from loading

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4.4.3 Other Web Ad Formats

Chapter4 Selling to Consumers Online

• Interstitial ad 插页式广告– When a user clicks link to load page

• Interstitial ad opens in its own browser window• Instead of page user intended to load

– Many close automatically, some required user click on a button

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4.4.3 Other Web Ad Formats

Chapter4 Selling to Consumers Online

• Rich media ads (active ads) 富媒体广告

– Generate graphical activity that “floats” over the Web page itself instead of opening in a separate window

– Always contains moving graphics and usually include audio and video elements

– Example: 30 second ad before television show– No obvious way to dismiss

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4.4.4 Site Sponsorships

Chapter4 Selling to Consumers Online

• Web sites offer advertisers opportunity to sponsor all (or parts) of their sites– These site sponsorships give advertisers a chance to promote

their products, services, or brands in a more subtle way than by placing banner or pop-up ads on the sites

• Companies that buy Web site sponsorships have goals that are similar to those of sporting event sponsors or television program sponsors

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Chapter4 Selling to Consumers Online

4.4 Advertising on the Web

• 关键字广告,或搜索广告• 推荐广告• 视频广告• 分类广告• 电子杂志广告• 声音广告• 新闻式广告

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4.4.5 Online Advertising Cost and Effectiveness

Chapter4 Selling to Consumers Online

• Companies want Web sites to make favorable impression on potential customers

• Raises issue of measuring Web site effectiveness

• Cost per thousand (CPM) 千人成本法

– “M” from Roman numeral for “thousand”

– Dollar amount paid for every thousand people in the estimated audience

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4.4.5 Online Advertising Cost and Effectiveness

Chapter4 Selling to Consumers Online

• Visit 访问– Occurs when visitor requests a page from Web site

• Trial visit 尝试访问– First time a particular visitor loads Web site page

• Repeat visits 重复访问 : subsequent page loads• Page view 页面访问 : each page loaded by a visitor

– Ad view 广告访问 : occurs if page contains an ad

• Impression 印象 : each time banner ad loads• Click (click-through) 点阅广告

– The visitor clicks banner ad to open advertiser’s page

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4.4.5 Online Advertising Cost and Effectiveness

Chapter4 Selling to Consumers Online

• New metrics to evaluate advertising yield outcomes– Measure number of new visitors who buy first time after

arriving at site• By way of click-through

– Calculate advertising cost of acquiring one customer on the Web

• Compare to how much it costs to acquire one customer through traditional channels

– Measuring Web audiences is more complicated because of the Web’s interactivity and because the value of a visitor to an advertiser depends on how much information the site gathers from the visitor

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4.4.6 Effectiveness of Online Advertising

Chapter4 Selling to Consumers Online

• After years of experimenting with a variety of online advertising formats, the effectiveness of online advertising remains difficult to measure

• Major problem– Lack of single industry standard measuring service

• Solution (2004)– Set of media measurement guidelines

• Used by all online advertisers• Produce comparable ad view numbers

• Difficulties remain – Site visitors change Web surfing behaviors, habits– Market segmentation is an important element in online

advertising success

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E-Mail Marketing

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4.5

Chapter4 Selling to Consumers Online

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4.5 E-Mail Marketing

4.5 E-Mail Marketing

Chapter4 Selling to Consumers Online

Permission Marketing4.5.1

4.5.2

4.5.3

Combining Content and Advertising

Outsourcing E-Mail Processing

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4.5 E-Mail Marketing

4.5 E-Mail Marketing

Chapter4 Selling to Consumers Online

• E-mail can be a very powerful element in any company’s advertising strategy

• Many business would like send email messages to their customers and potential customers– To announce new product, new product features, or sales

on existing products

• A key element in any e-mail marketing strategy:– Obtain customers’ approvals

• Before sending them any e-mail that includes a marketing or promotional message

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4.5 E-Mail Marketing

4.5.1 Permission Marketing

Chapter4 Selling to Consumers Online

• Opt-in e-mail 许可电子邮件

– Practice of sending e-mail messages to people who request information on a particular topic or about a specific product

• Permission marketing 许可营销

– A kind of marketing strategy that sends specific information only to people who have indicated an interest in receiving information about the product or service being promoted

– should be more successful than a marketing strategy that send general promotional messages through the mass media

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4.5 E-Mail Marketing

4.5.1 Permission Marketing

Chapter4 Selling to Consumers Online

• Conversion rate 转换率– The percentage of recipient who respond to an ad or promotion

– Requested email: 10%-30%

• Companies offering opt-in e-mail services:– PostMasterDirect– Yesmail

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4.5 E-Mail Marketing

4.5.2 Combining Content and Advertising

Chapter4 Selling to Consumers Online

• One strategy for getting email accepted by customers and prospects that many companies have found successful is to combine content with an advertising email message– Articles and news stories that would interest specific market

segments are good ways to increase acceptance of e-mail

• Advertisers send content by:– Using hyperlinks inserted into e-mail messages

• Takes customers to advertiser’s Web site content

• Coordination across media outlets– Important element in any marketing strategy

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Technology-Enabled

Customer Relationship Management

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4.6

Chapter4 Selling to Consumers Online

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4.6 Technology-Enabled Customer Relationship Management

4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

• The nature of the Web, with its two-way communication features and traceable connection technology, allows firms to gather much more information about customer behavior and preferences than they can gather using micromarketing approaches

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4.6 Technology-Enabled Customer Relationship Management

4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

• Clickstream 点击流

– Information that a Web site can gather about its visitors: which pages were viewed, how long each page was viewed, the sequence, and similar data

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4.6 Technology-Enabled Customer Relationship Management

4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

• 点击流( clicksteams)– 网站内容分析

• 网站总页面流量、访问集中时段、访问量最高的月份、关注最少的页面、到达本网站流量最多的外部驱动、页面平均驻留时间、访问流失率较高的页面

– 用户行为分析• 按照地理划分用户群体统计,用户查询商品的方式,用户关注的商品排序

– 销售实施分析• 商品关注度、访问购买转化率、促销效果

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4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

• Data warehouse (large database) 数据仓库

– Contains multiple sources of information about customers, their preferences, their behavior

• Data mining (analytical processing) 数据挖掘

– Technique that examines stored information

– Looks for unknown, unsuspected patterns in the data

• Statistical modeling 统计模型– Technique that tests CRM analysts’ theories about

relationships among customer and sales data elements

4.6 Technology-Enabled Customer Relationship Management

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4.6 Technology-Enabled Customer Relationship Management

4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

• Technology-enabled relationship management– Firm obtains detailed information about a customer behavior,

preferences, needs, and buying patterns and uses that information to set prices, negotiate terms, tailor promotions, add product features, and otherwise customize its entire relationship with that customer

– Most companies currently use these concepts to manage customer relationship

– Also known as:• Customer relationship management (CRM)• Technology-enabled customer relationship management• Electronic customer relationship management (eCRM)

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4.6.1 CRM as a Source of Value in the Marketspace

4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

• Marketplace– Commerce in the physical world

• Marketspace 虚拟市场– Commerce in the information world– Value creation requires different processes– Firms use information to create new value for customers

• Many electronic commerce Web sites today offer customers the convenience of an online order history, recommendations based on previous purchases, and show current information about products in which the customer might be interested.

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FIGURE 4-8 Technology-enabled relationship management and traditional customer relationships

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4.6 Technology-Enabled Customer Relationship Management

4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

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4.6.1 CRM as a Source of Value in the Marketspace

4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

• Successful web marketing approaches all involve – Encourage the customer to buy

• Enabling the potential customer to find information easily• Customizing the depth and nature of that information

– Track and examine the behaviors of their web site visitors– use that information to provide customized, value-added

digital products and services in marketspace

• Companies that use these technology-enabled relationship management tools to improve their contact with customers are more successful on the web.

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Figure 4-9

4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

• Data gathering• Data storage• Data analysis• Recommend actions

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Figure 4-9

4.6 Techonolgoy-Enabled Customer Relationship Management

Chapter4 Selling to Consumers Online

客户分析

• 识别企业的“金牌”客户。 • 哪些客户导致了企业成本的发生? • 企业本年度最想和哪些企业建立商业关系?选择出几个这样

的企业。 • 上年度有哪些大宗客户对企业的产品或服务多次提出了抱怨?

列出这些企业。 • 去年最大的客户是否今年也订了不少的产品?找出这个客户。

• 是否有些客户从你的企业只订购一两种产品,却会从其他地方订购很多种产品?

• 根据客户对于本企业的价值(如市场花费、销售收入、与本公司有业务交往的年限等),把客户(包括上述 5% 与 20%的客户)分为 A 、 B 、 C三类。

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4.7

Chapter4 Selling to Consumers Online

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4.7 Creating and Maintaining Brands on the Web

4.7 Creating and Maintaining Brands on the Web

Chapter4 Selling to Consumers Online

4.7.1 Elements of Branding4.7.1 Elements of Branding

4.7.2 Emotional Branding vs. Rational Branding4.7.2 Emotional Branding vs. Rational Branding

4.7.3 Brand Leveraging Strategies4.7.3 Brand Leveraging Strategies

4.7.4 Brand Consolidation Strategies4.7.4 Brand Consolidation Strategies

4.7.5 Cost of Branding4.7.5 Cost of Branding

4.7.6 Affiliate Marketing Strategies4.7.6 Affiliate Marketing Strategies

4.7.7 Viral Markting Strategies4.7.7 Viral Markting Strategies

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4.7 Creating and Maintaining Brands on the Web

4.7 Creating and Maintaining Brands on the Web

Chapter4 Selling to Consumers Online

• 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.

• Branded products are easier to advertise and promote, because each product carries the reputation of the brand name

• Many famous brand have been developed over many years with the expenditure of tremendous amounts of money.– Walt Disney, Ford auto, CocaCola

– However, the value of these and other trusted major brands far exceeds the cost of creating them.

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4.7 Creating and Maintaining Brands on the Web

4.7 Creating and Maintaining Brands on the Web

Chapter4 Selling to Consumers Online

品牌要素

品牌创建与维系策略

品牌延伸策略

品牌整合策略

elementsCreating & maintaining

Leveraging Consolidation

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4.7 Creating and Maintaining Brands on the Web

4.7.1 Elements of Branding

Chapter4 Selling to Consumers Online

• Three key brand elements – Product differentiation 产品差异化

• Company must Clearly distinguish its product from all others in the market

– Relevance 相关性• Degree to which product offers utility to a potential customer

– Perceived value (key element) 感知价值• Key element in creating a brand that has value• Customer perceives a value in buying product

• Brands can lose their value if the environment in which they have become successful changes

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4.7 Creating and Maintaining Brands on the Web

4.7.1 Elements of Branding

Chapter4 Selling to Consumers Online

FIGURE 4-10 Elements of a brand

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4.7 Creating and Maintaining Brands on the Web

4.7.2 Emotional Branding vs. Rational Branding

Chapter4 Selling to Consumers Online

• Emotional Branding 感性品牌创建

• Emotional appeals 感性诉求

– Work well on television, radio, billboards, and in print media, because the ad targets are in passive mode of information acceptance

– Difficult to convey on Web • Active medium controlled by customer

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4.7 Creating and Maintaining Brands on the Web

4.7.2 Emotional Branding vs. Rational Branding

Chapter4 Selling to Consumers Online

• Rational branding 理性品牌• Rational appeal 理性诉求– Offer to help Web users in some way In exchange for

viewing an ad– Relies on cognitive appeal of the specific help offered, not

on a broad emotional appeal– Example: hotmail, excite mail, yahoo mail

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4.7 Creating and Maintaining Brands on the Web

4.7.3 Brand Leveraging Strategies

Chapter4 Selling to Consumers Online

• Brand leveraging 品牌延伸– The strategy of extend dominant positions to other

products and services– Rational branding is not the only way to build brands on

the Web. One method that is working for well-established Web sites is to extend their dominant positions to other products and services

– Examples• Google:搜索引擎、电子邮箱、地图、浏览器、拼音输入法、翻译、安卓、 Picasa 、 Docs

• 腾讯: QQ即时通讯、游戏、邮箱、微博、空间、拍拍网、 SOSO搜索、视频、音乐

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4.7 Creating and Maintaining Brands on the Web

4.7.4 Brand Consolidation Strategies

Chapter4 Selling to Consumers Online

• Market intermediary• Example

– Della & James: online bridal registry• Now WeddingChannel.com

– Created single registry connecting to several local and national department, gift stores

– Logo and branding of each participating store• Featured prominently on WeddingChannel.com site

– Provides valuable consolidating activity for registering couples and guests that no store operating alone could provide

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4.7 Creating and Maintaining Brands on the Web

4.7.5 Costs of Branding

Chapter4 Selling to Consumers Online

• Transferring existing brands to the Web or using the web to maintain an existing brand is much easier and less expensive than creating an entirely new brand

• 1998– A large number of companies began spending significant

amounts of money to build new brands on the web– Top 100 e-commerce sites each spent $8 million (average)

• March 2000: money supply began drying up– Resulting in smaller advertising expenditures

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4.7 Creating and Maintaining Brands on the Web

4.7.5 Costs of Branding

Chapter4 Selling to Consumers Online

• Promoting any company’s Web presence should be an integral part of brand development and maintenance– The company’s URL should always be included on product

packaging and mass media advertising on radio, television, and in print

– Search engine

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4.7 Creating and Maintaining Brands on the Web

4.7.6 Affiliate Marketing Strategies

Chapter4 Selling to Consumers Online

• Affiliate marketing 关联营销– One firm’s Web site (affiliate site) includes descriptions,

reviews, ratings, other information about a product linked to another firm’s site that offers item for sale

• Affiliate site– Obtains the benefit of the selling site’s brand in exchange for

the referral• Cause marketing 公益营销

– Affiliate marketing program benefiting charitable organization

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4.7 Creating and Maintaining Brands on the Web

4.7.6 Affiliate Marketing Strategies

Chapter4 Selling to Consumers Online

• Affiliate commissions– Pay-per-click model

• The affiliate earns a commission each time a site visitor clicks the link and loads the seller’s page

– Pay-per-conversion model• The affiliate earns a commission each time a site visitor is converted

from a visitor into either a qualified prospect or a customer

– Combination of these methods

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4.7 Creating and Maintaining Brands on the Web

4.7.7 Viral Marketing Strategies

Chapter4 Selling to Consumers Online

• Viral marketing 病毒营销

– Relies on existing customers tell other people (prospective customers) about products or service they have enjoyed using

– By customer-to-customer communication– Affiliate marketing uses websites to spread the word

about a company, whereas viral marketing approaches use individual customers to do the same thing

– Example: Hotmail

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Search Engine PositioningAnd Domain Names

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4.8

Chapter4 Selling to Consumers Online

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4.8 Search Engine Positioning and Domain Names

4.8 Search Engine Positioning and Domain Names

Chapter4 Selling to Consumers Online

Search Engines and Web Directories

4.8.1

4.8.2

4.8.3

Paid Search Engine Inclusion and Placement

Web Site Naming Issues

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4.8 Search Engine Positioning and Domain Names

4.8 Search Engine Positioning and Domain Names

Chapter4 Selling to Consumers Online

• Ways that potential customers find Web sites – Referred by friend– Click a link on a referring Web site– Referred by affiliate marketing partner – See site’s URL in print advertisement, television– Arrive unintentionally after mistyping similar URL– Use a search engine or directory Web site

• Many site visitors are directed to the site by a search engine or directory Web site

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4.8 Search Engine Positioning and Domain Names

4.8.1 Search Engines and Web Directories

Chapter4 Selling to Consumers Online

• Search engine 搜索引擎– Web site that helps people find things on the Web

• Search engine have three major parts– Spider 网络蜘蛛 (crawler, robot, bot)

• Program that automatically searches Web to find potentially interesting Web pages for people

– Index (database)• Storage element of search engine

– Search utility• A program that creates a web page that is a list of links to URLs that the

search engine has found in its index that match the site visitor’s search terms

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4.8 Search Engine Positioning and Domain Names

4.8.1 Search Engines and Web Directories

Chapter4 Selling to Consumers Online

• Search engine ranking 搜索引擎排序– Weighting of factors used by search engines to decide which

URLs appear first on searches for a particular search term

• Search engine positioning 搜索引擎排位 (search engine optimization, search engine placement) – The combined art and science of having a particular URL

listed near the top of search engine

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4.8 Search Engine Positioning and Domain Names

4.8.2 Paid Search Engine Inclusion and Placement

Chapter4 Selling to Consumers Online

• Paid placement (sponsorship, search term sponsorship)

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

– Another option for companies is to buy banner ad space at the top of search results pages that include certain terms.

– Search engine placement brokers• Companies that aggregate inclusion and placement rights on

multiple search engines and then sell those combination packages to advertisers

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4.8 Search Engine Positioning and Domain Names

4.8.3 Web Site Naming Issues

Chapter4 Selling to Consumers Online

• URLs should reflect company name or reputation• Obtaining identifiable names to use on the Web can

be an important part of establishing a Web presence that is consistent with the company’s existing image in the physical world

• Troublesome domain names– Purchase more suitable domain names– Examples:

• www.iflyswa.com changed to www.southwest.com• www.delta-air.com changed to www.delta.com

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4.8 Search Engine Positioning and Domain Names

4.8.3 Web Site Naming Issues

Chapter4 Selling to Consumers Online

• Companies often buy more than one domain name– Reason for additional domain names is to ensure that

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

– Examples:• Yahoo! Owns the name Yahow. Com• General Motors: GM. Com, GeneralMotors.com, Chevrolet.com,

Chevy.com, GMC.com– Have different names or forms of names

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4.8 Search Engine Positioning and Domain Names

4.8.3 Web Site Naming Issues

Chapter4 Selling to Consumers Online

• URL Brokers and Registrars– URL brokers

• Sell, lease, or auction domain names

– ICANN 互联网域名与地址分配中心

• Maintains a list of accredited registrars

– Domain name parking 域名寄存

• Domain name hosting 域名挂靠

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• 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– Pop-ups, pop-behinds, and interstitials

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• Firms on the Web can use rational branding instead of emotional branding techniques

• Technology-enabled customer relationship management can provide better returns for Web businesses

• Critical for many businesses is successful search engine positioning and domain name selection

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