Website Marketing and Design Session 1 - Introduction to the Internet, Web and eCommerce 1 Poitiers, September 23-27.

Website Marketing and DesignSession 1 - Introduction to the Internet, Web and eCommerce1Poitiers, September 23-27

Part 1 - Introduction to Ecommerce I Perry & W Robson

Introduction to CourseTom Leuchtner - InstructorCourse Topics:Web/Internet MarketingPractical Aspects of Commerce on the WebWeb DesignAll information can be found on web: http://www.leuchtner.com/course2002Program for weekQuestions?


Web MarketingThe Original WWWWeb and MarketingStages of Web PublishingBreak


The Original WWWIts 1922Radio suddenly transitions from a technology used primarily by the military and the shipping industry to a consumer and business phenomenonAt the end of 1921, there are 5 radio stationsA year later, there are 575Starting radio stations is the height of entrepreneurshipListening to radio is a runaway consumer fadCombing the ether is the hit of the day


The Original WWWRadios impact on 1920s societyIt changes the way people think about distance and timeSimultaneity no longer requires proximityGlobal events are experienced as they happenPerformances in different cities can be heard in the neighbors living roomFast-breaking world stories and even the local weather are available at the flip of a switch and the turn of the dial


The Original WWWRadio changed business, especially marketingIt accelerated the economys transition to a mass marketIt facilitated the creation of national brandsFirms could launch national marketing campaigns simultaneouslyNew product store introductions could be synchronized with ad campaigns to build consumer interestProduct positioning became more flexibleBusinesses learned to use this new, powerful method of reaching customers


The Original WWWAs an industry, radio struggled with generating a self-sustaining revenue baseIn 1926, radio stations were failing at a rate of 15% per monthConsumers still rushed to buy radiosUltimately, national networks of stations emergedA combination of national and local advertising made radio profitableInternet marketing shows many of these same uncertainties


The Real World Wide WebThe Internet changes the way companies connect to their customersIt expands the opportunities for branding, innovation, pricing, and sellingIt leads to new ways of thinking about time and distanceIt opens up new distribution channels and markets


Virtuous Web CycleIs a business system with positive feedbackEach element in the business system feeds off another element in the system and feeds into yet another element in the systemIf the cycle is strong enough, it can actually be a self-fulfilling expectation


Virtuous Cycle for Net GrowthLets look at how it works


A Dot Com WorldThe virtuous Web cycle leads to rapid growth of Consumer accessInternet usageContent online


Consumer AccessThe past five years have seen rapid growth in Network sizeUsers on networksNetwork activityBetween January 1994 and January 1999, Internet hosts grew from 2.2 million to over 43 millionA 46% growth rate in 1998


Consumer AccessThe Internet user base has grown rapidly as wellWorldwide, the number of users was estimated to be > 160 million in March, 1999Over 90% of the users on the Net have joined in the last 5 yearsMore growth is possible, as < 4% of the worlds adult population is online50% of users think the Net is a necessity


Consumer AccessSpring 1998, the size of the Web was estimated at 300 million pagesGrowth rates in content exceed growth rates in Web access and the number of usersFrom June 1997 to March 1998, Web content grew at 120%More importantly, the types and creativity of Web site content have blossomed


Stages (or Generations) of WebsitesStage I: Publishing sites

Stage II: Databases and Forms

Stage III: Personalization


Stage I: Publishing Site


Stage IWhat makes this a Stage I Website ? Organises, Broadcasts andDisseminates Information


Stage II: Databases and FormsTo find out the travel distances between the host cities:Select your starting pointSelect your destinationBordeauxParisToulouseMarseillesToulouse Marseille 404km


Stage IIWhat Makes this a Stage II Website?Ability to retrieve information to respond to user requests


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


Stage IIIWhat Makes this a Stage III Website?More than ask-respondAnticipatesSuggests


Website Marketing and DesignSession 2 The Web and Marketing, Intro to eCommerce1Poitiers, September 23-27


Web MarketingMarketing Principles on the WebOnline Consumer BehavioreCommerce


The Dell Triangle: Figure 4.1


Online MarketingDirect interaction creates customer value and sets the stage for relationship buildingThis creates opportunities forpersonalizationcommunity buildingreal-time marketing


Online Behavior & InteractivityInteractivity depends onDirect communicationIndividual choiceFriendly technologyLets take a look at each of these


Direct CommunicationFrom Broadcast to DialogueDialogue is possible when theres direct communication between marketer and customerIntermediaries can filter or block feedbackFigure 4.3


Comparing Communication MethodsHoffman & Novak (1996): Compared traditional and online communication methodsThey looked atCommunication model: one-to-many one-to oneMedia symmetry: is the information flow symmetric?Media content: use of text, images, audio, videoDiversity of information: the number of information sources available through the medium (billboards vs. cable TV or the Web)Communication timing: synchronous vs. asynchronousPersonal interactivity: person-to-person vs. machine-mediated interaction


Comparing Communication MethodsFigure 4.4The Web is a flexible technologyIts evolving into a personal and dynamic communication medium


Individual ChoiceSelection + Suggestion = ValueThe modern economy presents a staggering amount of varietyTypical supermarkets contain 25,000 different itemsVariety expands even further without the physical constraints of inventory and shelf spaceChoice is confusing without a way to compare, evaluate & select among the huge number of possibilitiesNew technologies combine selection and suggestionEnable consumers to make more effective choices


Impact on Consumer Choice


Selection

Suggestion

( Shopping on demand

( Greater value

consciousness

( Power shift to

consumers

( Personalization

( Customization

( Automation of

consumption

"Friction-Free Capitalism"

"Captive Consumers"

Friendly TechnologyTelevisions, radios, telephones, and VCRs have market penetrations > 85% The Web must become even easier & friendlier to reach the 98% household penetration of TVAs Web access devices becomes more appliance-like, increasing numbers of consumers will be onlineInternet marketers must understand consumer behavior onlineTechnology is technology only if it was invented after you were born


Web Stage and User ChallengesThe easiest type of online consumer activity is when loyal and experienced users perform simple tasksMore complicated tasks require marketers to develop better user interfacesMore risky transactions require marketers to establish trust and pay attention to customer needs


Online Consumer BehaviorUsers relate to virtual information in many of the basic social ways they interact with people in their everyday livesUsers treat machines and software like people


Online Consumer BehaviorThe human brain isnt well adapted to 20th century mediaNew media is engaging old brainsWhy Are There Social Responses to Information Technology?


Online Consumer BehaviorManners are critical in online & computer messagesGood Manners = positive responsesBehavior that is considered rude in real life is considered rude onscreenSimple Technological Features Can Elicit Strong Social Responses


Online Consumer BehaviorSocial CuesE-mail lacks the social cues that a phone conversation or a face-to-face meeting provideMisunderstandings develop more easily because people its harder to judge confusionPeople dont get the signals that make them stop and explain themselves in face-to-face discussionPeople tend to use stronger language and express themselves more franklyAnd they tend to circulate their thoughts to a much wider audience


Online Consumer BehaviorCognitive DifficultyOne of the challenges of providing online information is making it accessible to usersProviding effective search functionality is keySite developers must understand how their users are likely to search and browse


Whos Online?High incomeAbove average educationHeaviest users: 30-49 years oldstudents & kids also onlineseniors & older middle-aged less likelyGap between male & female is closingUS dominateswealthiest European & Asian countries coming online quickly


As Time PassesMore people onlineMore people connecting at higher speedsMore people using the Web to shop and transact business>40% of those with 4+ years experience on the Web regularly shop and conduct Web commerceas opposed to only 12% of people who have been online for

eCommerceIntroduction to eCommerceeCommerce OvervieweCommerce Terminology


How Companies Organize Net Activities


eCommerce (EC) DefinitionEcommerce is any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact It is one of those rare cases where changing needs and new technologies come together to revolutionise the way in which business is conductedEuropean Commission (1997)http://www.ispo.cec/be/Ecommerce/whatis.htm


Ecommerce TerminologyECommerceUsing Information Technology to support external business processes (eg marketing/selling products &/or services)EBusinessSupporting both internal and external business processes


It includes at least the followingThe exchange of goods & services across an interactive digital networkA computer-mediated & virtual market with new relationships among businesses and consumersA digital means of exchange (digital money, ecash, secure credit card transactions)The increasing importance of digital information as a commodity


eBusiness model Covers the support of the processes & relations between business partners, co-workers and customers by electronic media


eCommerceIs that part of the eBusiness which is aligned to the negotiation and settlement of obligatory business transactions. Example: http://www.amazon.com/


Further e-terms E-Procurementthe electronic support of the procurement processes (purchase) of an enterprise E-Marketingthe electronic support of the sales & marketing (and services) processes of an enterprise


A Revolution?Traditional commerce:Physical product: a tangible, material objectPhysical process: interactions between buyers, sellers, producersPhysical agent: People in a storefronteCommerce:Digital product: a digital objectDigital process: interactions between buyers, sellers, producers onlineDigital agent: web storefront


An Ecommerce (EC) manifesto:Organisations must change to take advantage of EC opportunities Organisations must take EC into account when developing strategyEC is the strategic perspective that all firms must adopt, now & in futureAn organisation that does not explicitly consider EC as a strategic imperative is making a critical error


EC evolution in waves


EC Could Be Seen As:


Levels of eCommerceCompanypromotionElectronicpresencePre/post salessupportNationalElectronicdistributionSales/SimpletransactionsShared business processesInternationalpaymentNationalpaymentInternationalElectronicdistributionStandard, simple,Many instancesCustom, complex,Few instanceshttp://www.ispo.cec.be/ecommerce/introduc.htm


So, EC world is InterdisciplinaryConsumer behaviour & psychologyAccounting & auditingProduction/LogisticInformation systemsBusiness ethics

ManagementBusiness lawMarketing Finance EconomicComputer sciences


Producing typical career profiles GeneralisteBusiness-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 masterWeb editorInternet Service Provider


Exampleswww.ebay.com person to person ECwww.amazon.com - retailwww.yahoo.com - ecommerce portal


Website Marketing and DesignEnd of Sessions 1-2:LUNCH!1Poitiers, September 23-27


E-Business betrachtet die elektronische Untersttzung der Geschftsbeziehungen aus der Sicht eines Unternehmens (U.). Meist wird der Begriff E-Business mit dem Einsatz Neuer Medien bzw. mit Internettechnologie verbunden.Die elektronische Untersttzung von Geschftsbeziehungen gab es auch schon frher (z.B. EDI, IOS, Telebanking auf Videotex, etc.). Internettechnologie hat ihr durch die vielen Vorteile zum Durchbruch verholfen (kostengnstiger, Infrastruktur auf breiter Basis vorhanden, auch Schnittstelle zu Haushalten (alles auf einer Plattform), etc.)Die meisten (vor allem grosse) U. haben bereits Legacy Systeme, welche in die neue Infrastruktur integriert werden mssen (Buchhaltung, ERP, PPS, Spezialapplikationen z.B. von Banken und Versicherungen).Drei Hauptbeziehungen aus U-Sicht:zum Kunden (Verkauf, E-Sales, E-Commerce)zum Lieferanten, Geschftspartner (E-Procurement, E-Purchasing, Virtual Organisation)zwischen den Mitarbeitern (Intranet, Groupware, Dokumentenmangement Systeme, Knowledge Mangement), Ziel: Die richtige Information zur richtigen Zeit am richtigen OrtE-Government ist ein verwandter BereichElektronische Schnittstelle zwischen Brger/Unternehmen und Staat (z.B. Steuererklrung, Patentanmeldungen)Wenn Verwaltung Geschfte ttigt (z.B. Einkauf Bromaterialien) ist das auch E-BusinessNew Public Management, Effizienzberlegungen von Unternehmen werden heute auch im ffentlichen Sektor angestellt, Management nach privatwirtschaftlichen Prinzipien, E-Business in Verwaltungen und BehrdenE-Business-SchlsselaspekteNeue Medien (heute spezifisch das Internet)Beziehungen der Unternehmung mit Partnern/MitarbeiternIntegration der Prozesse und InformationssystemeKooperation mit PartnernE-Business fokussiert auf ... (Neue Medien) ... das Internet und seine Protokolle als kostengnstiges, weitverbreitetes Trgermedium. Die entstehenden Systeme sind sogenannte elektronische Geschftsmedien.(Beziehungen) ... den Austausch von Geschftsdokumenten, Kommunikation und Transaktionen zwischen Geschftspartnern und Mitarbeitern.(Integration) ... die Schaffung von (elektronischen) Schnittstellen zwischen bestehenden Systemen (Legacy Systemen) und neuen, Internet-basierten E-Business-Applikationen, die fr die Partner direkt zugnglich sind. Dadurch sind in der Regel Anpassungen der unternehmensinternen Prozesse notwendig (Business Process Reengineering - BPR).(Kooperation) ... die Zusammenarbeit mit Partnern, die im E-Business als Leverage Effekt wirkt. Komplementre Gter, die in E-Commerce-Applikationen angeboten werden, ergnzen das eigene Angebot zum maximalen Kundennutzen. Es entstehen sogenannte Leistungssysteme. Die (manchmal durchaus notwendige) Kooperation mit Konkurrenten wird auch als Co-opetition bezeichnet.

Website Marketing and Design Session 1 - Introduction to the Internet, Web and eCommerce 1 Poitiers, September 23-27.

Documents

perry w robsonintroduction

perry w robsonvirtuous

starting radio stations

business system

radio stationsa year

business phenomenonat

runaway consumer fadcombing

website marketing