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Welcome!
Workshop 2
Karen Lurati
MMK737 Online Marketing Karen Lurati 1 MMK737 Online Marketing Karen Lurati 2
Assessment Queries????
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See http://www.davechaffey.com/seo-keyword-tools
Figure 2.2 An online marketplace map
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Figure 2.5 Model showing conversion between the digital channel and traditional channels during the buying process
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3. Transact online
Includes different types of transactions, not just sales, e.g. support, forum comments, etc. MMK737 Online Marketing 15
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Figure 2.7 Variation of broadband penetration in different countries Source: OECD (http://www.oecd.org/sti/ict/broadband) MMK737
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Figure 2.9 Information sources used to select retailers Source: EIAA (2008)
MMK737 Online 17 Figure 2.8 Usage of mobile phones in Europe and US (data for 3-month period ending Marketing August 2006) Source: M:Metrics, 2006 Karen Lurati
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Figure 2.10 Percentage (by category) who bought online after researching online Source: EIAA (2008) MMK737 Online
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Aims:
Consumer characteristics
Demographics:
Age, gender, social group
Webographics
Access methods and times
Personas:
Dulux example
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The aim was to position Dulux.co.uk (Figure 2.13) as the online destination for colour scheming and visualisation to help you achieve your individual style from the comfort of your home. Specific outcomes on the site are to browse colours, add colours to a personal scrapbook, use the paint calculator and find a stockist. Further aims were to win the war before the storei.e. to provide colour help tools that can help develop a preference for Dulux before consumers are in-store and to prompt other ideas to sell more than one colour at a time. Specific SMART objectives were to increase the number of Unique Visitors from 1M p.a. in 2003 to 3.5M p.a. in 2006 and Drive 12% of visitors to desired outcome MMK737 Online Marketing 22 (e.g.order swatches). Karen Lurati
Example personas
First time buyer.
Penny Edwards, Age: 27, Partner: Ben, Location: North London, Occupation: Sales Assistant
Single Mum.
Rachel Wilson, Age: 40, Location: Reading, Occupation: Business Analyst
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Individual role
role and responsibility from job title, function or number of staff managed role in buying decision (purchasing influence) department product interest demographics: age,MMK737 sex andOnline possibly social group. Marketing 26
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Figure 2.14 Internet usage by businesses in European countries Source: European Commission, 2008.
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Directed information-seekers. These users will be looking for product, market or leisure information such as details of their football clubs fixtures. They are not typically planning to buy online. Undirected information-seekers. These are the users, usually referred to as surfers, who like to browse and change sites by following hyperlinks. Members of this group tend to be novice users (but not exclusively so) and they may be more likely to click on banner advertisements. Directed buyers. These buyers are online to purchase specific products online. For such users, brokers or cybermediaries that compare product features and prices will be important locations to visit. Bargain hunters. These users (sometimes known as compers) want to find the offers available from sales promotions such as free samples or competitions. For example, the MyOffers site (www.myoffers.co.uk) is used by many brands to generate awareness and interest from consumers. Entertainment seekers. These are users looking to interact with the Web for enjoyment through entering contests such as quizzes, puzzles or interactive multi-player games. MMK737 Online Marketing 30
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Figure 2.15 A summary of how the Internet can impact on the buying process for a new MMK737 Online Marketing 31 purchaser Karen Lurati
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Figure 2.17 Comet product comparison facility (www.comet.co.uk): example page MMK737 Online
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4 Trust-based models
Figure 2.18 A model of the relationship between different aspects of trust MMK737 Online Marketing 35 and consumer response based on the categories of Bart et al. (2005) Karen Lurati
Figure 2.19 Segmentation based on information need and trust Source: Adapted from Forrester (2006) Teleconference Driving Sales With Segmentation Analyst: Benjamin Ensor of Forrester Research, February 27th 2006 MMK737 Online Marketing 36
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Figure 2.21 Performance benchmark example for Canadian banks Source: Gomez (http://www.gomez.com/products/viewbenchmark.php?btype=9) MMK737 Online
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Power of suppliers
The business
Threat of subsitutes
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Figure 2.26 Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model MMK737 Online Marketing 43 Karen Lurati
Figure 2.27 Lonely Planet online shop (http://shop.lonelyplanet.com)
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Disintermediation of a consumer distribution channel showing: (a) the original situation, (b) disintermediation omitting the wholesaler, and (c) disintermediation omitting both wholesaler and retailer
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Countermediation
Creation of a new intermediary Example:
B&Q www.diy.com Opodo www.opodo.com Boots www.wellbeing.com www.handbag.com
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5. Revenue from Sponsorship of site sections or content types (typically fixed fee for a period) 6. Affiliate revenue (typically CPA, but could be CPC)
Affiliate revenue is commission based, for example if you display links to Amazon books on your site, you can receive around 5% of the cover price as a fee from Amazon. Such an arrangement is sometimes known as Cost Per Acquisition (CPA). Amazon, and others offer a tiered scheme where the affiliate is incentivised to gain more revenue, the more they sell.MMK737 This is often called a pay-per-performance ad deal. Online Marketing 51
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Tutorial activities
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Chapter 3
The Internet macro-environment
Learning objectives
Identify the different elements of the Internet macro-environment that impact on an organisations Internet marketing strategy and execution; assess the impact of legal, moral and ethical constraints and opportunities on an organisation and devise solutions to accommodate them; evaluate the significance of other macroeconomic factors such as economics, taxation and legal constraints.
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Ethical issues
Ethical issues concerned with personal information ownership have been usefully summarised by Mason (1986) into four areas: Privacy what information is held about the individual? Accuracy is it correct? Property who owns it and how can ownership be transferred? Accessibility who is allowed to access this information, and under which conditions?
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Legislation Summary
1 Applies to consumer marketing using e-mail or SMS messages 2 Is an opt-in regime (consent required) 3 Requires an opt-out option for all communications 4 Does not apply to existing customers when marketing similar products 5 Requires that contact details must be provided 6 Requires clear From 7 Applies to direct marketing communications 8 Restricts the use of cookies MMK737 Online Marketing 65
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Information flows that need to be understood for compliance with data protection legislation
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Basic home page index.html for The B2B Company in a web browser showing the HTML source in a text editor
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Diffusionadoption curve
Source: Gartner (2005) Gartners Hype Cycle Special Report for 2005
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