Engage

Selling to B2C
6. E-Business
Consumers Online
CRM
 Web Marketing Strategies- 4Ps

eP 2
 It is a Virtual Shop

• Physical Stores
– Need based Categorization
Example ???
• Digital Stores
– Segment using common characteristics
• Identify subgroups- sub-segments
– Customer-based marketing elements
• Offer alternative shopping paths
– Same product in different categories

Web presence must integrate with image and brand

Web presence
3
 Communicating with Different
Market Segments
• Physical world- building, floor space design
• Online- contact through media and Web site
– Communications media selection: critical

• Challenge- Obtain customer trust without a physical

presence

4
Web presence
 Market Segmentation

• Match messages
• Build sales environment
Trip Advisor

Manageable Segments
Segmentation
Behavior Segmentation

Include elements
appealing to the
segments
8
 E- Segmentation- Basic Model

1. Browsers
– Prompt visitor to stay
– Trigger words to pique visitors’ interest
– Explanations, instructions, related content
2. Shoppers- Motivated to buy
– Looking for more information
– Offer comparison tools, reviews
3. Buyers
– Ready, Offer direct route to cart
– Get buyer to shopping cart as quickly as possible
 E- Segmentation- McKinsey Model

McKinsey & Company’s six behavior-based categories

1. Simplifiers (convenience)
2. Surfers (find information, explore new ideas, shop)
3. Bargainers (search for good deal)
4. Connectors (stay in touch with other people)
5. Routiners (return to same sites over and over)
6. Sportsters (spend time on sports, entertainment sites)
 Building Trust in the Web

• Web communication can offer

– Advantages of personal contact selling
– Cost savings of ~ mass media

11
Web presence
 Complexity Management

• Mass media
– Expensive, uses short messages
– For Simple products- few characteristics
• Highly complex products and services
– 1 on 1 communication

• Web offers various messaging alternative

– Mass media messaging & Personal contact interaction
– Anything in between (virtual groups)

Web presence & Media Choice

 Trust, Complexity, and Media ...

• Challenge/Opportunity
– Resistant to mass media messages
• Use passive consumption
– Web user likely to be in an active state
• Use a trust-based model approach

• Engage Customers
– post thoughts and inviting commentary
– Is web an adjunct communication device?
• Resembling a high-trust personal contact mode
 Traditional Online Marketing and
Advertising Tools
• Search engine marketing and
advertising
• Display ad marketing
• E-mail marketing
• Affiliate marketing
• Viral marketing
• Lead generation marketing
• Social, mobile, and local
marketing and advertising
 Multi-Channel Marketing

• Web site
• Traditional online marketing
– Search engine, display ads, e-mail, affiliate
• Social marketing 1

– Social networks, blogs, video,

game
• Mobile marketing
– Mobile/tablet sites, apps, SMS

• Offline marketing
– Television, radio, newspapers
 Offering Customers a Choice

• One-to-one marketing
– Home page links for each major customer group
– A custom experience

• Target same customers at different times

– Same person- different occasion
– Behavioral segmentation based on things happening
at a specific time or occasion

Manageable Segments
1:1
 Creating advertising messages
Five-stage customer loyalty model
• Awareness stage
– Advertising message should inform
• Exploration stage
– how product, service works
– Encourage switching brands Customer Relationship
Intensity and Life-Cycle
• Familiarity stage Segmentation
– Convince to buy
• Commitment stage
– Reminder messages
• Separation stage
– Not targeted
 The Funnel Model
Clear structure for
evaluating specific strategy
Measure
elements and comparison
across strategies
Acquisition, Conversion, and Retention
of Customers
• Acquisition (visitor)
• Conversion (purchase/subscription/register) Cost
• Retention (return and buy again)
Measure
 New metrics
Banner Ads

• Stationary or moving graphic

– Includes hyperlink
• Animated GIFs & videos

• New strategies
– Ads like mini video game
– Ads like a dialog boxes
• Placing an ad
Advertising agencies
– Banner exchange network create banner ads for
– Directly pay relevant sites online clients
– Banner advertising broker
 Online Ads

• Text Ads
– Simple, Short message
– Very effective due to passive nature
– Example: Google Text Ad (Now labeled)
• Pop-up ad, Pop-behind ad
• Interstitial ad
• Rich media ads (active ads)
• Site Sponsorships
– Full/parts
– Ethical concerns?
 Online Ads- Cost and Effectiveness

• Measuring is complicated
– Web’s interactivity, Value of visitor to an advertiser

Click (click-through)- visitor clicks banner ad

• Ad view- occurs if page contains an ad

• Visit
– Trial visit- First time, Repeat visits
• Page view- each page loaded by a visitor
• Cost per thousand (CPM)
– 1000 Impression- banner ad loads
CPM rates for advertising in various media
 A Challenge:
Effectiveness of Online Advertising
• New metrics to evaluate advertising yield outcomes
• Major problem- Lack of single industry standard
• Solution (2004)- media measurement guidelines
• Used by all online advertisers
• Produce comparable ad view numbers
• Difficulties remain
– Site visitors change Web surfing behaviors, habits
– Web is evolving
 E-Mail/SMS Marketing

• Powerful tool?
– Engage- announce new products or features, sale
• Challenge- customers’ approvals, contextual ads
• Conversion rate 10% - 30%
• Opt-in e-mail (who request information)
Outsourcing
– Permission Marketing E-Mail
– 3rd party services (ConstantContact, Yesmail)
Processing
• Increases acceptance of e-mail
– Combining Content and Advertising
Acceptance
– Using articles, news stories of interest
– Using hyperlinks inserted into e-mail messages
Elements of a typical BI system
 CRM as a Source of Value ...

• Current CRM efforts more successful

– Customer interactions/clickstream data
– Combine with other information gathered
• Customer touchpoint
– Any contact between customer and company
• Data warehouse (large database)
• Data mining (analytical processing)
• Statistical modeling
 CRM/eCRM

• Clickstream
– Track behavior > provide customized experience
• Use CRM information on customer behavior
– Set prices,
– negotiate terms,
– tailor promotions,
– add product features,
– customize customer relationship

Value Creation 29
Implications!
Technology-enabled relationship management 31
and traditional customer relationships
 Creating and Maintaining Brands
on the Web
• Branded products
– Each product >Easier to advertise and promote
• Value of trusted major brands
– Far exceeds cost of creating them
• Three key brand elements
– Product differentiation
– Relevance (utility)
– Perceived value (key element)
• Brands can lose their value (Is this bad?)
– Environment changes
Existing brands to the Web? Or get a new one?
 U.S. Advertising expenditures by medium, 2010
Online is growing and has good potential for growth
34
 How an Advertising Network Works

•
https://eorange.shop/ https://google.com/

http://www.ovidhan.org/

https://www.prothom-alo.com/

https://www.investopedia.com/
 Brand Leveraging Online

• Emotional appeals
– Difficult to convey on Web
• Rational branding
– Relies on cognitive appeal of specific help offered
– Share & get …

Brand Leveraging Strategies

• Yahoo!, Amazon.com

Brand Consolidation Strategies

• Market intermediary
– Daraz acquire KFR.com
 Affiliate Marketing ...

• Affiliate site Includes descriptions, reviews, ratings …

PPC
PPM Cause marketing
(charities)
Affiliate broker
(clearinghouse)
Commissions
 Viral Marketing

Existing customers spread

Across segment- Geo, Age ...
Search Engine Positioning

39
Ranking- Weighting of factors?
Search Engines Ranking
SEO
1. A Secure and Accessible Website
2. Page Speed (Including Mobile Page
Speed)
3. Mobile Friendliness
4. Domain Age, URL, and Authority
5. Optimized Content
6. Technical SEO (html format, tags)
7. User Experience (RankBrain)
8. Links
9. Social Signals
10. Real Business Information

40
Tools
● Google Trends
● Google’s AdWords
● Facebook Pixel

41
 Domain Naming Issues

• Buying, selling, and leasing

• Should reflect company name or reputation
• Troublesome domain names
– www.iflyswa.com changed to www.southwest.com
– www.delta-air.com changed to www.delta.com

• Buy more domain name

– Misspells URL
– different names or
forms of names

E- Business, Ninth Edition 42

???
 Learning Objectives

• When to use • Using advertising on

product-based and the Web
customer-based • E-mail marketing
marketing strategies • Technology-enabled
• Communicating with customer relationship
different market management
segments • Creating and
• Customer relationship maintaining brands on
intensity and the the Web
customer relationship • Search engine
life cycle positioning and domain
E- Business, Ninth Edition 44
• name selection
 Summary

• Achieve Web marketing goals

– Use principles of marketing strategy
– Use the four Ps of marketing
– Product-based marketing strategy
– Customer-based strategy
– Web enables companies to mix strategies
• Market segmentation works well on the Web
• Online advertising
– More intrusive since introduction
• Various types available

E- Business, Ninth Edition 45

 Summary (cont’d.)

• Use Web to manage customer relationships

– Focused CRM efforts
• More successful than earlier comprehensive attempts
• Use rational branding instead of emotional branding
techniques on the Web
• Critical to success
– Successful search engine positioning
– Domain name selection
• Companies must integrate Web marketing tools into
a cohesive and customer-sensitive overall marketing
strategy

E- Business, Ninth Edition 46