Internet Marketing - Poitiers 2003 1 Session 12: Website Building Workshop.

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Session 12:

Website Building Workshop

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End Session 12:

Website Building Workshop

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Session 13:

Functional developmentof the website

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• Information• Transaction• Interaction

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Stages (or Generations) of Websites

• Stage I: Publishing sites - Information

• Stage II: Databases and Forms - Transaction

• Stage III: Personalization - Interaction

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Stage I: Information

Info Links

http://www.france98.com/french/index.html

Pictures/Information

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Stage I

What makes this a Stage I Website ?

Organises, Broadcasts andDisseminates Information

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Stage II: TransactionDatabases and Forms

To find out the travel distances between the host cities:

Select your starting point

Select your destination

Bordeaux

Paris

Toulouse

Marseilles

Toulouse Marseille – 404km

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Stage II

What Makes this a Stage II Website?

The ability to retrieve information to respond to user requests

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Stage III: Personalization and Interaction

If you area team WC98 member and are using a computer other than the one you originally joined WC98, enter your nickname and password now.

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Stage III

What Makes this a Stage III Website?

More than ask-respond…AnticipatesSuggests

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Usage of this information

• The website success factors will be used by you and your team in order to:– Design the site accordingly– Evaluate your own site step by step

• We will use the website success factors to evaluate your site too!

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Website Organisational Aspects

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Cost and Performance

Table 5.5

One of the best uses of Web chain analysis is to compare alternative methods of acquiring

customers

Site Impressions Cost

Cost per

Impression CTR

Cost per

Prospect

Time to

Reach

4000

Prospects

Ad

Network 75,772 $2,075 $0.03 2.70% $1.01

About 2

weeks

Search

Engine 16,670 $1,133 $0.07 5.50% $1.24

About 4.5

weeks

Special

Type 1,887 $52 $0.03 9.50% $0.28

About 23

weeks

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End Session 13:

Functional developmentof the website

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Session 14:

Drivers of internet success How to evaluate your site

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End Session 14

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Session 15:Website Promotion

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Promotion

Two ways to think about this topic:1. Online communication

– The URL– Search engine positioning– Webvertising– Affiliate marketing– Viral marketing– Email marketing– Community marketing

2. Role of the website in the customer contact/communication mix

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Promotion: Comparison of communication

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Do You Yahoo?

• For 50% of US Web users: Yes!!• A phenomenal eCommerce success story• Yahoo! brand extensions provide value add for users

– Yahoo! games– Yahoo! clubs– Yahoo! chat– Yahoo! auctions– Yahoo! Stores

• Yahoo! leverages its brand and ability to draw traffic to generate multiple revenue streams

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Most Popular Web SitesYahoo! Leads

Figure 5.1Most Popular Web Sites

51% 50%

35% 34% 33% 32%28% 27% 26% 24%

0%

10%

20%

30%

40%

50%

60%

yahoo.com

aol.com

msn.com

go.com

geocities.com

netscape.com

excite.com

lycos.com

microsoft.com

tripod.com

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Yahoo! Brand ExtensionsThe Success of the Yahoo! Brand

Figure 5.2

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Web Benefits to Firms

• The range of Web benefits– Business models can be based on improvements in product

or service– Business models can be based directly on generating

revenue• Let’s take a closer look at these broad classes of business

models

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• Sponsorship• Alliances• Banner advertising• Prospect fees• Sales commissions

Revenue-Based Biz ModelsUse the Net to Make Money

Provider Pays

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• Sponsorship• Alliances• Banner advertising• Prospect fees• Sales commissions

• Product sales• Pay-per-use• Subscriptions• Bundle sales

Revenue-Based Biz ModelsUse the Net to Make Money

Provider Pays Customer Pays

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Closed Loop Marketing

• Marketing is closed loop when specific customer responses to specific marketing actions can be tracked– For example: if an online ad encourages Web site

registration, the campaign is closed loop if users can be tracked from ad exposure to the decision to register

• Closed loop marketing leads to rapid learning– Marketers can experiment with prices, ad copy, and

product features on selected samples of consumers

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The Impact of Closed Loop Marketing

• Marketers want two results from user responses– They want consumers to make a choice that leads to

• information• improved customer satisfaction• a transaction

– Marketers want to learn about visitors to their site

On the InternetNobody KnowsYou’re A Dog…

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Web Chains

• A Web chain is a click sequence– Can be as short as a single click– Can be as long as all possible choices on a Web site

• Decision points = event nodes• Ending point = result node

• Common Web chain starting points– Company homepage– Search engine or portal– Banner ads

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Web Chain of EventsFigure 5.12

R1: Doesn’t Notice Ad = $0 benefit

Offline Induced Buyer (OIB)

R3: Offline Purchase = (Ad brand + Web Site brand + Offline profit)

No Notice Rate (NNR)

E1: Views Page with Paid

Link

(1-CTR-NNR)

Click-through Rate (CTR)

R2: Notices Ad but doesn’t click

= Ad brand impact

E2: Clicks Through to

Company Web Site = Prospects

BEGIN

(1-PCR) Prospect Conversion Rate (PCR)

E3: Views Web Site but Doesn’t Buy

E4: Visits Web Site and Buys

New Customer (1-RR)

(1-OIB)

R4: No Immediate Purchase = (Ad brand + Web Site brand impact)

Repeat Buyer (RR)

R5: New Customer = (Ad

brand + Web Site brand + Online profit + Future lifetime value)

E5: Loyal Customer

EN

D

Offline Buy Rate (OBR) Online Only (1-OBR)R7: Only buy online = (Ad brand + Web Site brand + Online

profit)

R6: Would have bought offline anyway = (Ad brand + Web Site brand + Online

profit – Offline profit)

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Virtuous Web Cycle

Huh?

• Is a business system with positive feedback• Each element in the business system feeds off another

element in the system and feeds into yet another element in the system

• If the cycle is strong enough, it can actually be a self-fulfilling expectation

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Virtuous Cycle for Net Growth

Let’s look at how it works

Popular Fascinati

on

• It starts with user fascination

Web Sites and

Web Content

• Providers see the developing opportunity and rush to create new brands & services, which creates more hype

Consumer and

Business Internet Access

• The buzz feeds back into consumers’ interest and desire to experiment with the new technology

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A Dot Com World

• The virtuous Web cycle leads to rapid growth of – Consumer access– Internet usage– Content online

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Evaluating Web Chains

• Enables marketers to evaluate a wide range of Web strategies and tactics

• Calculate– expected value of an impression– expected value of a prospect– expected value of a new customer– expected value of a repeat buyer

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Web Chain Benefits and ProbabilitiesFive Main Benefits Occur in the Chain

• Online contribution: the incremental profit from an online sale• Offline contribution: incremental profit from the sale of products

through the standard channel• Ad-brand impact: value to a visitor, who sees the ad but doesn’t

click through• Web site brand impact: value of a visit to the Web site that results

in benefits, but not a sale• Lifetime customer value: future value of profits from a new

customer

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Evaluating Web Chains

Behavior Rates Impact Values

Variable Level Variable Level

Click- through rate 2.7% Ad- brand impact $0.00

No- notice rate 70% Web site brandimpact

$.0.30

Prospect conversionrate

15% Offline profit $15.00

Repeat buying rate 90% Offline profit $23.00

Offline- induced buyrate

0.05 New customer LTV $125.00

Offline buy rate 0.30

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From Web Chains to Closed Loops

• There’s a strong connection between Web chains and closed-loop marketing

• A Web chain is closed loop if– the chain extends from the marketing offer to

the desired marketing response– Each step is trackable

• The Internet can be used to close the loop on traditional media advertising if unique identifiers are included with the ad– Dell newspaper ads contain a unique code

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Further Reading/Research

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End Session 15:

Web Site Promotion

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Session 16: Final Course Review

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Typical career profiles

• Generalist– eBusiness-responsible person (integration of the

divisions) – Project manager eCommerce – Sales manager eCommerce Products – Director/conductor of a special product group (e.g.

Smartcards) • Specialist

– Web designer / Web master– Web editor– Internet Service Provider

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What did we learn?

• Course objectives and performance expectation review

• Knowledge Review

• Project Feedback and Planning

• Course Evaluation

• Internship Opportunities

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End Session 16:

Final Course Review

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END OF COURSE (whew, that was fast!)