University of Benghazi Faculty of Information Technology: Nasser M. AMAITIK

University of Benghazi
Faculty of Information Technology
E-Commerce and E-Marketing (IS475)
Instructor: Nasser M. AMAITIK (MSc IBSE)
Fall 2011/2012
Lecture – 04
Internet Marketing and Web Advertisement

L04 – Internet Marketing and Web Advertisement
The Internet Audience and Consumer Behavior
Around 160 million Americans (56% of total population) have

Internet access, mid-2003.
Growth rate has slowed to less than 10% a year.
Intensity and scope of use both increasing.
1

Demographics and access: some demographic groups have much

higher percentages of online usage than other groups.
Demographics to examine include:
Income
Age
Education
Gender
2
Shoppers: Browsers and Buyers
2003 UCLA Internet Report:
About 40% of online users are “buyers

buyers” who actually purchase
online, while about 40% of online users are just “browsers
browsers.
Significance of online browsing for offline purchasing and vice

versa should not be underestimated.
E-commerce and traditional commerce are coupled and should be

viewed by merchants and researchers as part of a continuum of
consuming behavior.

Online Shoppers
3
What Consumers Shop for and Buy Online
Online sales divided roughly into small ticket and big ticket items.
items
Small ticket items – traditional leaders include apparel, books, health

and beauty aids, office supplies, music, software, videos, toys etc.
Top small ticket categories have similar characteristics – sold by

first movers, small purchase price, physically small, high margin
items, broad selection of products available.
Purchases of big ticket items (airline tickets, hotel rooms, computer

hardware, consumer electronics) expanding.

What Consumers Buy on the Web: Small Ticket Items (Dec. 2002
2002))
4
What Consumers Buy on the Web: Big Ticket Items (Dec. 2002
2002))

How Shoppers Find Vendors Online
Over 85% of shoppers find vendor sites by typing product or

store/brand name into search engine or going directly to the site.
Most (55%) online shoppers plan to purchase product within a

week, either online or at a store.
Most online shoppers (83%) have a specific item in mind.
5
Shoppers’ Intention to Purchase

Most Online Shoppers Are Focused Browsers
6
Basic Marketing Concepts

Marketing: The strategies and actions firms take to establish a relationship
with a consumer and encourage purchases of products and services.
Internet Marketing: Using the Web, as well as traditional channels, to

develop a positive, long-term relationship with customers, thereby creating
competitive advantage for the firm by allowing it to charge a higher price
for products or services than its competitors can charge.
Firms within an industry compete with one another on four dimensions:

Differentiation
Cost
Focus
Scope
Marketing seeks to create unique, highly differentiated products or services

that are produced or supplied by one trusted firm (“little monopolies”).

Brands and the Branding Process

Brand: Typically defined as a name, logo or symbol that distinguishes
a company and its products or services from its competitors and
should be unique, recognizable and easy to remember.
Branding: The process of brand creation.
Closed Loop Marketing: When marketers are able to directly influence

the design of the core product based on market research and feedback.
E-commerce enhances the ability to achieve
achieve..
Brand Strategy: Set of plans for differentiating a product from its

competitor, and communicating these differences to the marketplace.
Brand Equity: estimated value of the premium customers are willing to

pay for a branded product versus unbranded competitor. It also include
customer perceptions and customer loyalty to a company and its
products or services.
7
Brands and the Branding Process
The Internet makes it difficult to protect a brand from misuse
Rumors and customer dissatisfaction can spread quickly.
It is not difficult for people to use other companies’ logos on

their sites or products illegally.
Companies can attempt to protect their brands
Hiring people to surf the Web and look for news, rumors
and other instances of brand abuse.
Brand monitoring activities can be outsourced to companies

such as eWatch and NetCurrents
NetCurrents.

Internet Marketing Technologies
E-Mail
Promotions
E-Business Advertising
Banner Advertising
Media-Rich Advertising
Wireless Advertising
Web transaction logs
Cookies
8

E-Mail
Fast, cheap, far-reaching
Determine the level of personalization:

Personalized direct e-mail targets consumers with specific
information and offers by using customer names, offering the
right products at the right time and sending promotions.
Response rate:
Shows campaign success or failure by measuring the percentage
of responses generated from the target market.
Global businesses send translated e-mails
Audio, video and graphics


E-Mail
Outsourcing:
Parts of a company’s operations are performed by other companies.
Used when unmanageable e-mail volume and inadequate staff or

technical support.
Improve customer service:

Add an e-mail link to Web site.
E-mail systems set up so that incoming e-mails will be sorted

automatically and directed to the appropriate people.
Track location of orders, inform customers of when to expect

delivery and possible delays and providing information such as the
carrier’s name.
9

E-Mail
Permission-based marketing:
A company can market its products and services to people
who have granted permission.
Internet mailing lists include contact information for people
who have expressed interest in receiving information on
certain topics.
Opt--in e-mails are sent to people who "opt-in" to receive
Opt
offers, information and promotions by e-mail.
Spamming:
Mass e-mailing to customers who have not expressed interest.
Can give your company a poor reputation.


E-Mail
E-mail can arrive if recipients are busy or away, receivers can

read e-mails at their convenience.
Telemarketing:
Can be more expensive than e-mailing.
Offers benefit of being interactive.
People likely to answer phone whereas can ignore e-mail.
10
Promotions
Online and offline e-business promotions:
Attract visitors to sites and may influence purchasing.
Be sure customers are loyal to company, not reward program.
Frequent-flyer miles:
Offered to consumers for making online purchases.
Increase brand loyalty, offers a reason return visits.
Allows customers to accumulate Miles.
Points-based promotion:
Customer performs a prespecified action and receives points to
be redeemed for products, services, rebates, discounts, etc.
Offer discounts when purchases are made online

E-Business Advertising
Traditional:
Television, movies, newspapers and magazines.
Prime-time television slots most expensive times to air commercials.
Publicize URL on direct mailings and business cards.
Online advertising:
Place links on other sites, register with search engines.
11
Banner Advertising
Banner ads:
Located on Web pages, act like small billboards, usually contain
graphics and an advertising message.
Benefits include
include::
Increased brand recognition, exposure and possible revenue.
Side panel ads or skyscraper banners

Advertisements that lie vertically on Web sites.
Banner advertisements are losing their effectiveness.
Place logo on banners, enhancing brand recognition.

Banner Advertising
12
Banner Advertising
Example of a panel ad.

(Venture Capital Online, Inc.)

Banner Advertising
Inventive color schemes and movement

Flashing, scrolling text, pop
pop--up boxes and color changes
Pop-up box is a window containing an advertisement that appears
Pop-
separate from the screen the user is viewing, pops up randomly or
as a result of user actions (can have a negative effect due to their
intrusive nature).
Determine the best position on sites for a banner

Web sites cluttered with ads annoy visitors
Space can be more expensive during high traffic
Exchanging banners with another site
13
ValueClick Feature
ValueClick: Acts as a broker for people who want to buy and sell
advertising space.
Gives you the option of targeting specific markets.
To buy advertising through ValueClick
ValueClick:
Design a banner.
Contact a representative of ValueClick to determine what program best fits
your advertising needs.
Pre-pay for the service based on the number of visitors you want to receive.
Offers many segmented markets for advertising

Segmented markets are people or companies that are grouped together based
on similar characteristics.
Earnings depend on number of click-throughs resulting from the

advertisements.

ValueClick’s
Home Page
14
Media--Rich Advertising
Media
Webcasting:
Involves using streaming media to broadcast an event over

the Web.
Streaming video simulates television, streaming delivers a

flow of data in real time.
Many people have relatively slow Internet access
The slower the connection, the more disconnected the video

appears

Media--Rich Advertising
Media
Cross-media advertising or hybrid advertising:
Involves using a combination of rich media (such as audio, video,
images and animations) and traditional advertising forms (such as print,
television and radio advertisements) to execute an advertising campaign.
Interactive television advertising:

Allows people viewing television to interact with what they are seeing
on the screen.
Consumers have the ability to choose to learn more about an offer, make
a purchase or even request that customer service representatives contact
them.
RespondTV
15
Wireless Advertising
Wireless Internet in early stages:
Advertising companies are preparing to take advantage of this medium.
SkyGo
Wireless advertising company offering real-time wireless delivery and tracking
of permission-based campaigns.
Adbroadcast
Pays people who opt in to receive advertisements on cell phones.
GeePS
Offers brick-and-mortar stores wireless advertising targeted toward specific
markets.
Sends relevant wireless ads to customers as they enter the proximity of a store.

Web Transactions Logs
Built into Web server software.
Records user activity at a Web site.
Can provide treasure trove of marketing information, particularly

when combined with:
Registration forms – used to gather personal data.
Shopping cart database – captures all item selection, purchase and

payment data.
16
Internet Marketing Technologies: Web Transactions Logs
Four Seconds from the Web

Transaction Log of
Azimuth--Interactive.com
Azimuth

Internet Marketing Technologies: Web Transactions Logs
Marketing Uses of Data

from
Web Transaction Logs
17
Cookies
Cookies: small text file that Web sites place on a visitor’s client
computer every time they visit, and during the visit as specific
pages are accessed.
Cookies provide Web marketers with a very quick means of

identifying the customer and understanding his or her prior
behavior.
Location of cookie files on computer depends on browser version.

Internet Marketing Technologies: Cookies
A Typical Netscape Cookie File
18
Search Engines
Search--engine ranking important to bring consumers to a site;

Search
Method used by search engines to rank your Web site will determine
how "high" your site appears in search results.
Make sure all Web pages have been published on the Web and
linked correctly.
By registering with search engines a company will increase traffic

to its site.

Search-Engine Registration
Submit keywords and a description of business.
Search engine will add information to its database.
Registering will increase the possibility that a site will make an

appearance in search-engine results.
Many search engines do not charge a fee for registering;

AltaVista, Yahoo!, Lycos, Excite,
Excite and Google
19
Search Engine Registration Requirements and Details
In theory, you should not have to register with AltaVista. The search engine
should be able to find your site on its own, because it sends out crawlers that
find sites and add them to AltaVista’s index. The crawler follows links from
other pages it finds, and that is how AltaVista adds more URLs to its index.
AltaVista So, if many pages are linked to your site, your site is more likely to be
www.altavista.com found. If not, it will never be found.
To register, enter your URL in the form located at
www.altavista.com/cgi-bin/query?pg=addurl. After this process is
complete, AltaVista sends out crawlers to find the site, learn what is
included in the content and add the URL to the index. Submission is free.
Lycos requires you to submit a URL for each page of your site, as well as
Lycos your e-mail address. Lycos then sends a spider to your site. In approximately
www.lycos.com two to three weeks, your site will be entered into Lycos’s catalog.
Registration is free. If your site is not live for a certain amount of time, the
spider cannot connect to it. Your site then gets deleted from the catalog.

Search Engine Registration Requirements and Details
Before registering with Yahoo!, you should first check if your site is
already in Yahoo!’s database. It is possible that your site has been
suggested to Yahoo! by another user. If your site is in a foreign
language, it may be located in an International Yahoo!. If it is in an
International Yahoo! it will not be added to www.yahoo.com.
Once you have determined that your site is not in Yahoo!, you should
Yahoo! find an appropriate category in the Yahoo! directory to list your site. You
www.yahoo.com can do this by going to the bottom of the category page and clicking on
the link for suggesting a site. Yahoo! provides suggestions to help you
determine where your site should be placed. Suggesting sites is free. To
suggest a site using the normal process, you are only required to provide
the name, URL and short description of the site. When using the
Business Express you are required to pay a fee, guaranteeing that your
site will be reviewed within seven business days.
Visit www.google.com/addurl.html to add a URL to Google. This

search engine requests your URL and comments about your site (for
Google’s information), however it does not use the comments submitted
for indexing purposes. Google does not index every site submitted. The
GoogleSM engine only requires the submission of a site’s main page because its
www.google.com crawler, Googlebot, will be able to find the rest of your pages as it
searches all possible links.
Google ranks pages by the number of connections between Web sites,
with the theory28that the more connections to a site, the more popular and
useful the site. This is different compared to other search engines that
use META tags and site descriptions as a method of ranking.
20
Online Market Research
Market research: Involves gathering information that will help a

firm identify potential products and customers.
Two general types:
Primary research – involves gathering first-hand information

using techniques such as surveys and personal interviews.
Secondary research – relies on existing, published information as

basis for analyzing market.

Online Market Research
21
Thank you for your attention …
Any Question ?
22

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University of Benghazi

Faculty of Information Technology

E-Commerce and E-Marketing (IS475)

Instructor: Nasser M. AMAITIK (MSc IBSE)

Internet Marketing and Web Advertisement

E-Commerce and E-Marketing (IS475)

The Internet Audience and Consumer Behavior

Around 160 million Americans (56% of total population) have

Growth rate has slowed to less than 10% a year.

Intensity and scope of use both increasing.

The Internet Audience and Consumer Behavior

E-Commerce and E-Marketing (IS475)

The Internet Audience and Consumer Behavior

Demographics and access: some demographic groups have much

Demographics to examine include:

Shoppers: Browsers and Buyers

2003 UCLA Internet Report:

About 40% of online users are “buyers

Significance of online browsing for offline purchasing and vice

E-commerce and traditional commerce are coupled and should be

E-Commerce and E-Marketing (IS475)

What Consumers Shop for and Buy Online

Small ticket items – traditional leaders include apparel, books, health

Top small ticket categories have similar characteristics – sold by

Purchases of big ticket items (airline tickets, hotel rooms, computer

E-Commerce and E-Marketing (IS475)

E-Commerce and E-Marketing (IS475)

How Shoppers Find Vendors Online

Over 85% of shoppers find vendor sites by typing product or

Most (55%) online shoppers plan to purchase product within a

Most online shoppers (83%) have a specific item in mind.

Shoppers’ Intention to Purchase

E-Commerce and E-Marketing (IS475)

Most Online Shoppers Are Focused Browsers

Basic Marketing Concepts

Internet Marketing: Using the Web, as well as traditional channels, to

Firms within an industry compete with one another on four dimensions:

Marketing seeks to create unique, highly differentiated products or services

E-Commerce and E-Marketing (IS475)

Brands and the Branding Process

Branding: The process of brand creation.

Closed Loop Marketing: When marketers are able to directly influence

Brand Strategy: Set of plans for differentiating a product from its

Brand Equity: estimated value of the premium customers are willing to

Brands and the Branding Process

The Internet makes it difficult to protect a brand from misuse

Rumors and customer dissatisfaction can spread quickly.

It is not difficult for people to use other companies’ logos on

Companies can attempt to protect their brands

Brand monitoring activities can be outsourced to companies

E-Commerce and E-Marketing (IS475)

Internet Marketing Technologies

Web transaction logs

Internet Marketing Technologies

Determine the level of personalization:

Global businesses send translated e-mails

Audio, video and graphics

E-Commerce and E-Marketing (IS475)

Internet Marketing Technologies

Used when unmanageable e-mail volume and inadequate staff or

Improve customer service:

E-mail systems set up so that incoming e-mails will be sorted

Track location of orders, inform customers of when to expect