Chap. 4 Marketing on the Web

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Chap. 4 Marketing on the Web by Mind Map: Chap. 4 Marketing on the Web

1. Web Marketing Strategies

1.1. Product-Based Marketing Strategy

1.1.1. Strategy based on the thinking the managers do to sell their products/services In this strategy it is all about the products that a company offers, the company offers the products and lays them out in categories, and all the customer has to do is explore a particular category in order to find what he is looking for. Ex: Staples home page

1.2. Customer-Based Strategy

1.2.1. A strategy based on identifying groups of customers who share common characteristics. By finding a common characteristic, a marketer can divide these customers into various sub groups in order to effectively reach their needs. Ex: OC college home page, Sabre home page

2. Definitions

2.1. Marketing mix

2.1.1. the combination of elements that companies use to achieve their goals for selling and promoting their products/services.

2.2. Four P's of Marketing

2.2.1. Price, Product, Promotion, Place

2.3. Market Segmentation

2.3.1. Action that divides the pool of potential customers into segments

2.4. Behavior Segmentation

2.4.1. Creating of separate experiences for customers based on their behavior

2.5. Occasion Segmentation

2.5.1. Based on things that happen at a specific time or occasion

2.6. Aquisition Cost

2.6.1. Total amount of money that a site spends, on average, to draw one visitor to the site

2.7. Conversion

2.7.1. the conversion of turning visitor into customer

2.8. Conversion Cost

2.8.1. Total amount of money that a site spends, on average, to induce one visitor to make a purchase

2.9. Retention Cost

2.9.1. The costs of inducing customers to return to a web site and buy again

2.10. Banner Ad

2.10.1. Small rectangular object on a Web page that displays a stationary or moving graphic that has a hyperlink to the advertiser's site

2.11. Click Stream

2.11.1. Info that a Web site can gather about its visitor

2.12. Marketspace

2.12.1. A market that occurs in the visual world instead of the physical world

2.13. Rational Branding

2.13.1. An advertising strategy that substitutes an offer to help Web users in some way in exchange for their viewing an ad

3. Communicating with Different Market Segments

3.1. Trust and Media Choice

3.1.1. Mass Media Mass Media is an extremely large communication medium. Mass media advertising includes TV ads, radio ads, mass commericalization that is able to reach large audiences. It is the lowest medium in terms of trust, but many companies use it successfully. If used right, it can result in a low costs per viewer.

3.1.2. Personal Contact Personal Contact is the most trustworthy communicating meduim. Personal Contact is the action of person to person communication in business.

3.1.3. The Web Using the Web to communicate with customers has a powerful advantage to it because it offers personal contact selling along with many of the cost savings of mass media. This medium has the ability to reach large audiences through web sites, blogs, and other online mediums

3.2. Market Segmentation

3.2.1. Geographic Creating combinations of marketing efforts for customer groups geographically. Geographically meaning by nation, state, city. Strategies can then be applied to these different geographical groups.

3.2.2. Demographic Creating combinations of marketing efforts for customer groups demographically meaning by age, gender, income, religion, ethnicity. Ex: A family in North Carolina and a family in West Virginia with lower income might find it easier to fly with a certain airline to Florida as opposed to a different family in California with possibly higher income.

3.2.3. Psychographic Customers are grouped in terms of social class, personality, and approach to life. Ex: Nissan may advertise a certain new sports car to an audience that has a take no risk, live dangerously type of approach to life.

3.3. Offering Customers a choice on the Web

3.3.1. Some Web sites like Dell offer a number of different ways to do business with the customer. Things that include Having a US site, and and International site, both of which include customer groups such as home, small business, large business, government, health care, etc. This allows customers to find what is best avaliable to them in terms of giving customers choices.

4. Customer Behavior and Relationship Intensity

4.1. Segmentation using Customer Behavior

4.1.1. Browsers Most visitors to a site are just surfing/browsing. It is the companies intent however to develop ways to turn these potential customers into actual customers that purchase the companies products. Extra content could be used as a trigger, "Trigger words," should also be used, and extra content about products should be avaliable

4.1.2. Buyers These visitors intend to make a purchase and nothing should get in the way that prevents them from doing so. Quick and easy transactions along with shopping service techniques such as an online shopping cart should be present to aid in lists of products that customers intend to buy.

4.1.3. Shoppers These visitors are motivated to buy, but they are looking for more info. before they buy. Therefore, a site should offer comparision options, product review, testimonials, and a list of features the product has to offer.

5. Customer Relationship Intensity

5.1. Customer Loyalty Properties Model

5.1.1. Awareness Customers who recognize the name of a company or one of its products

5.1.2. Exploration Potential customers learn more aobut the company or its products

5.1.3. Familiarity After a couple transactions have been made, the customer begins to become more familiar with credits, return policies, communication methods, and other policies

5.1.4. Commitment After experiencing great satisfaction with the company, the customer will usually commit to buying their products when needed

5.1.5. Separation Over time, conditions that made the relationship valuable may change, a certain condition could be quality. This could anger the customer and he could sever ties and go somewhere else.

6. Advertising on the Web (all about communication

6.1. Banner Ads

6.1.1. Banner Ad Placement Using a banner exchange network coordinates ad sharing so other sites run one companies ad while that companies site runs other exchange members' ads. Exchange requires each member site to accept 2 ads on its site for every one of its adds that appears on another member's site. Using a Banner advertising network, a broker between advertisers and Web sites carry the ads.

6.2. Other Web Ad Formats

6.2.1. Pop-up ads Ad that appears in its own window when a user opens/closes a web page. Many users find these ads nothing but an annoyance

6.2.2. Pop-behind ad Pop up ad that is followed very quickly by a command that returns the focus to original browser window.

6.2.3. Interstitial ad A link that opens an ad on a seperate webpage rather than one the original page that the visitor is on.

6.2.4. Rich media ads These ads generate graphical activity that floats over the web page instead of opening a seperate window.

7. E-mail Marketing

7.1. Permission Marketing

7.1.1. Sending product advertising to customers of a company with their permission can be a great medium to achieve more business. Permission marketing sends specific info only to people that are interested in recieving it.

7.2. Combining Content and Advertising

7.2.1. Sending a message based on content and advertising in one. For example: the Globe and Mail could send customers perscription articles and combine advertising in these articles at the end of the page.

7.3. Outsourcing E-mail Processing

7.3.1. The job of handling mass email lists can outgrow a companies capacity, so outsourcing becomes an option. These email outsourcing companies are able to keep track and store addresses in mass databases for companies that don't have that ability

8. Creating and Maintaining Brands on the Web

8.1. Elements of Branding

8.1.1. Differentiation Company must clearly distinguish its products from others in the market.

8.1.2. Relevance The degree to which the product offersutility to a potential customer.

8.1.3. Perceived Value The Key element in creating a brand that has value.

8.2. Brand Leveraging Strategies

8.2.1. Strategy in which a well established Web site extends its dominant positions to other products and services.

8.3. Costs of Branding

8.3.1. Transferring existing brands to the Web or using the Web to maintain an existing brand is less expensive than creating an entirely new brand. Promoting a company's Web presence should be an integral part of brand development and maintenance.

8.4. Affiliate Strategies

8.4.1. Advertising technique where a web site includes descriptions, reviews, ratings, about products that are sold on another website. The affiliate site inlcudes links to the selling site, which pays the affiliate site a commissionon sales made.

8.5. Viral Marketing Strateiges

8.5.1. Relies on existing customers to tell other people such as the company's prospective customers about the products/services that they havae enjoyed using.