Thesis On New Trends in Internet Marketing - 299522304 PDF

Mendel University in Brno
Faculty of Business Economics
New Trends in Internet Marketing

Diploma Thesis
Supervisor:
Bc. Tomáš Opravil
Ing. František Dařena, Ph.D.
Brno 2011
I would like to thank very much to my supervisor of this Bachelor Thesis,
Ing. František Dařena, Ph.D. for his professional guidance, advices and suggestions.
I really appreciate his valuable help and patience during my creation of this work.
I hereby declare I have worked up my Diploma Thesis “New Trends in Internet
Marketing” independently, using only the sources cited in the list of references.
Brno 1. 5. 2011 ....................................................

4
Abstract
Opravil, T. New Trends in Internet Marketing. Diploma Thesis. Brno, 2011.
This Diploma thesis is dealing with Internet Marketing trends. The theoretical
part comprises some history, current new trends and types of Internet Marketing.
The practical part is devoted to prospect of realization of marketing propagation
for specific marketing project, by using internet marketing tools and it’s consequent
evaluation.
Abstrakt
Opravil, T. Nové trendy v internetovém marketingu. Diplomová práce. Brno, 2011.
Tato diplomová práce se zabývá trendy v oblasti internetového marketingu.

Teoretická část zahrnuje historii, současné nové trendy a typy internetového mar-
ketingu. Praktická část je věnována realizaci marketingové propagace pro konkrétní
marketingový projekt využitím nástrojů internetového marketingu a jejich následná
evaluace.
CONTENTS 5
Contents
1 Introduction 8
2 Objectives and Methodology 10

2.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.2 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3 Current situation 11
3.1 General information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.2 Specificity and strategies of Internet Marketing . . . . . . . . . . . . 14
3.2.1 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.2.2 Strategic Advantages of Internet Marketing . . . . . . . . . . 15
3.3 Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.3.1 Domain name . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.3.2 Keywords . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.3.3 Copywriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.3.4 Microsites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.4 Online Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.4.1 E-mail Marketing . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.4.2 Newsletter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.4.3 Viral Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.5 Online Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.6 Online Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.6.1 Banner Ads . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.6.2 Contextual Advertising . . . . . . . . . . . . . . . . . . . . . . 22
3.7 Search Engine Marketing . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.7.1 SEM - Revenue Models . . . . . . . . . . . . . . . . . . . . . . 24
3.7.2 Google AdWords introduction . . . . . . . . . . . . . . . . . . 25
3.8 Search Engine Optimization . . . . . . . . . . . . . . . . . . . . . . . 25
3.9 Analytical Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.10 New Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
CONTENTS 6
4 Application of specific internet marketing tools to a real marketing

project 29
4.1 Introduction to the project . . . . . . . . . . . . . . . . . . . . . . . . 29
5 Choosing the structure of internet marketing tools for the project 30
6 Search Engine Optimization 35

6.1 On-page Search Engine Optimization . . . . . . . . . . . . . . . . . . 35
6.1.1 Indication of page titles by using title tags . . . . . . . . . . . 35
6.1.2 Using description meta tag . . . . . . . . . . . . . . . . . . . . 35
6.1.3 Using heading texts . . . . . . . . . . . . . . . . . . . . . . . . 36
6.1.4 Friendly URLs . . . . . . . . . . . . . . . . . . . . . . . . . . 36
6.1.5 Making navigation structure on the e-shop easy . . . . . . . . 37
6.1.6 Optimization of description of images . . . . . . . . . . . . . . 37
6.2 Off-page Search Engine Optimization . . . . . . . . . . . . . . . . . . 37
7 Search Engine Marketing 38

7.1 Campaign’s Keywords . . . . . . . . . . . . . . . . . . . . . . . . . . 38
7.2 Campaign’s Ads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
8 Other Internet Marketing Tools Used 40

8.1 Social Media Marketing - Viral marketing . . . . . . . . . . . . . . . 40
8.1.1 Like Button . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
8.1.2 Like Box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
8.2 Microsites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
8.3 Online Video Marketing . . . . . . . . . . . . . . . . . . . . . . . . . 44
8.4 Mobile Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
9 Evaluation of the internet marketing tools used 47
10 Discussion and Conclusion 52
11 References 54
Appendix 57
CONTENTS 7
A Hotstyle.cz Logo 58
B Facebook Social Plugins 59
C Facebook Like Button showed on main page 60
D Preview of AdWords campaign 61
E Preview of the main page of the e-shop 62
F Preview of the microsite’s website 63

1 INTRODUCTION 8
1 Introduction
When speaking about the term ”Internet Marketing”, at first we should clearly
explain both words this term consists of.
The Internet is a global system of interconnected computer networks. It is a
network of networks that consists of millions of private, public, academic, business,
and government networks. “Internet works thanks to combination of a range of
technologies and it is the biggest source of information mankind has ever had for
it’s disposal. Internet also laid the foundations of more information channels than
people has created until the 20th century.” (Phillips, 2003).
The term Marketing has many definitions. One of the most well known definition
says that “Marketing is the social process by which individuals and groups obtain
what they need and want through creating and exchanging products and value with
others.” (Kotler, Keller, 2007).
By connecting these two fields “We can apply marketing principles within the
internet area. This can be done mainly by creating a web pages, internet adverti-
sing, and also marketing research on the internet, electronic commerce etc. However
internet marketing demands a little bit different approach in certain aspects than
traditional marketing.” (Blažková, 2005).
To make a more specific explanation of internet marketing, let us have a look
at one of it’s definition that according to my opinion works very well. “Marketing on
the internet represents the utilization of internet services for executing or supporting
of marketing activities of the company.” (Stuchlík, Dvořáček, 2000).
Having goods and services marketed on the internet seems entirely natural to us
nowadays, but actually internet marketing is a relatively new phenomenon. Internet
itself is a very young medium that allowed us to do things that might never have
been imagined before. Internet developed from purely scientific use as a data and
information exchange tool to public use as a publishing and marketing medium.
When the early public internet first started in the late 1980s, and more of the public
began to access it, many companies began to realize that they could utilize the
internet to provide information to potential customers. The first examples of internet
marketing were simply text web sites. These web sites were very basic and simple
with no pictures nor graphics. As the internet started to develop in 1990s, more and
1 INTRODUCTION 9
more companies realized that they had a global audience of potential customers.
Websites were becoming more complex. They contained pictures of products and
graphics with intention to keep the customer interested.
Compared to our standards today, these first web sites might seem archaic.
However, they served their purpose as people began to turn to the internet for in-
formation about companies and what they had to offer. If customer wanted to buy
something, they would call the company on a phone number provided by the website.
During the 1990s, with the spread of faster internet connections, image availability,
and then video availability, the marketing strategies evolved into more than just sel-
ling information products. Also the technology developed, so that companies could
sell their products right from their website. E-commerce began to grow very quickly
since the time when methods to securely provide credit card numbers became avai-
lable. Consumers could now order products right from their home without a need
to going anywhere.
There was also an increased use of the internet as a tool of advertising. Com-
panies began to place ads on other web sites to promote their products. Nowadays
from pay per click (PPC) advertisements benefit both the company which has go-
ods/services to sell and also webmasters of the websites. Affiliate programs also
started to be very popular. They allow webmasters to advertise products on their
website, and if a customer purchases the item, then the webmaster gets certain
percentage of the sale. (Aranda, 2007).
There are people selling domain names, advertising space, software applications,
web solutions, and many other products and services. “Companies like Google, Ya-
hoo and MSN emerged and then evolved into providing advertising that any size of
website could take advantage of and make money from.” (Internet Marketing Guide,
2009). Companies could reach customers all over the world. Some companies also
use internet as a primary source of advertising. Companies have developed innova-
tive advertising programs, sometimes referred to as viral marketing. Viral marketing
tries to market the product or services through word of mouth. Some viral marketing
plans even use computer games in order to promote a particular product in funny
way.
2 OBJECTIVES AND METHODOLOGY 10
2 Objectives and Methodology
2.1 Objectives
The aim of this work is to create a marketing project for a company with application
of modern internet marketing tools. Theoretical part will deal with evaluation, deve-
lopment of internet marketing, and advertising in general, describing different tools
of internet marketing. The practical part will deal with selecting internet marketing
tools for the real marketing project, application of these tools and techniques for a
real project, and it’s consequent evaluation.
2.2 Methodology
Methods used for elaboration this thesis will be specified in theoretical and practical
parts of this thesis, mainly in chapter 5. In the theoretical part, I will focus mainly
to an analysis of internet marketing trends in general, evaluation of nowadays ap-
proaches to internet marketing and current internet marketing tools. Further we
will discuss different internet marketing tools and approaches in detail, and choose
a structure of internet marketing tools for the project.
The practical part will deal with application of certain selected internet mar-
keting tools on a real marketing project - e-shop.
For analysis of results Google Analytics analytical tool was used, because it has
deep statistics including demographics data, user friendly user interface, can also
track sales, which is very important for electronic store and last but not least is
offered completely free of charge.
3 CURRENT SITUATION 11
3 Current situation
Simply speaking internet marketing, also referred to as online-marketing, web-
marketing, e-marketing, or i-marketing, is the marketing of products or services
over the Internet.
In fact, internet marketing includes the use of a company web site in conjunction
with online promotional techniques, such as banner advertising, search engines, PPC
advertising, e-mail and links or services from other web sites to acquire new custo-
mers.
Many people can think, that internet marketing is just a website with it’s con-
tent, but it is much more complex. Internet marketing is interconnection among the
site portal, search engines, partners sites, blogs, other site linkings, B2B partners,
customers, outsource partners and much more. Simplified process of first time visitor
to the business website is showed on this picture:
Pic. 1: E-Marketing is more than just your website (CPC Computer Consultants, 2008)
For any type of marketing is essential to have as large number of audience

as possible. As long as Internet marketing is concerned, the number of potential
customers goes along with the usage of internet itself.
3.1 General information 12
Tab. 1: World internet usage and population statistics (Internet World Stats, 2010)
World Regions Population Internet Users Internet Users Penetration % Growth Users %
2010 Est. Dec. 31, 2000 Latest Data Population 2000-2010 of Table
Africa 1,013,779,050 4,514,400 110,931,700 10.9 % 2,357 % 5.6 %
Asia 3,834,792,852 114,304,000 825,094,396 21.5 % 621.8 % 42.0 %
Europe 813,319,511 105,096,093 475,069,448 58.4 % 352.0 % 24.2 %
Middle East 212,336,924 3,284,800 63,240,946 29.8 % 1,825.3 % 3.2 %
North America 344,124,450 108,096,800 266,224,500 77.4 % 146.3 % 13.5 %
Lat. America/Caribbean 592,556,972 18,068,919 204,689,836 34.5 % 1,032.8 % 10.4 %
Oceania/Australia 34,700,201 7,620,480 21,263,990 61.3 % 179.0 % 1.1 %
WORLD TOTAL 6,845,609,960 360,985,492 1,966,514,816 28.7 % 444.8 % 100.0 %
From this statistics of global internet usage, we can see that the amount of
internet users increased more than five times since the last decade (from 361 mil. in
2000 to more than 1.9 billions in 2010).
The highest penetration of internet users in population has North America
(77.4%), followed by Australia (61.3% and Europe (58.4%).
It is also interesting to see the total world’s growth of internet users from 2000
to 2010 which is 444.8%. This trend is likely to continue in future.
All these data shows great potential in internet as a media, and as a tool for
marketing strategies and tactics.
We can see from the Tab. 2, that spending for advertisement in all media was
growing in past four years, however in newspapers, magazines, TV, radio, cinema
and outdoor, the growth is not as significant as compared to the internet. Spending
for advertisement on the internet more than doubled in past four years. Internet
advertising overtook radio and also magazines advertising by it’s 11.5% share in
2010 and the trend is still rising.
3.1 General information

The key element of marketing beside the customer is one part of marketing mix
is called promotion. Certainly communication, which is part of promotion, runs
through all the fields of marketing. Flawless communication is absolutely necessary
for successful marketing. Internet makes this communication among customers much
easier, than it ever was before. Traditional marketing uses all the traditional com-
3.1 General information 13
Tab. 2: Global Spending and Share of Ad Send by Medium 2006-2010 (in Millions
of USD) (Marketingcharts, 2010)
2006 2007 2008 2009 2010
Newspapers 123.031 124.047 127.366 130.955 134.829
29.0% 27.8% 26.8% 26.1% 25.4%
Magazines 52.959 54.393 56.427 58.518 60.588
12.5% 12.2% 11.9% 11.7% 11.4%
TV 160.356 168.359 180.335 189.110 198.894
37.8% 37.7% 37.9% 37.7% 37.5%
Radio 35.347 36.472 37.782 39.437 41.032
8.3% 8.2% 7.9% 7.9% 7.7%
Cinema 1.870 1.984 2.180 2.414 2.691
0.4% 0.4% 0.5% 0.5% 0.5%
Outdoor 23.516 25.126 27.145 29.099 31.249
5.5% 5.6% 5.7% 5.8% 5.9%
Internet 27.185 35.999 44.583 51.963 60.888
6.4% 8.1% 9.4% 10.4% 11.5%
munication media such as questionnaires, leaflets, post, telephone, mass media etc.
Internet offers all the possibilities of communication like traditional media, but often
much more effectively. By using internet you can not only address a person, but you
can address thousands of people with the same interest at one time and communicate
with them. Modern and successful marketing has to be familiar with the internet,
calculate with it, and use the possibilities it offers. “Internet can get along without
marketing - modern marketing can not get along without the internet.” (Stuchlík,
Dvořáček, 2000).
We will discuss specific current internet marketing tools more in details later in
this section.
3.2 Specificity and strategies of Internet Marketing 14
3.2 Specificity and strategies of Internet Marketing

3.2.1 Marketing Mix
Marketing mix constitutes all the activities a firm takes to affect its’ products de-
mand. By one of the most well known definitions: “Marketing mix is a set of mar-
keting tools, that firm uses to reach the marketing goals on the specified market.”
(Kotler, Keller, 2007).
Marketing mix consists of 4Ps (sometimes also used 5Ps or 6Ps) which are:
• Product - a tangible object or an intangible service, that is mass produced or
manufactured on a large scale with a specific volume of units.
• Price - is the amount a customer pays for the product. The business may increase
or decrease the price of product if other stores have the same product.
• Place - represents the location, where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store, as well
as virtual stores on the Internet.
• Promotion - represents all of the communications that a marketer may use
in the marketplace. Promotion has four distinct elements: advertising, public
relations, personal selling and sales promotion.
Many elements of traditional marketing easily reflects on Internet marketing.
We can show this reflection on marketing mix of 4Ps. For example in terms of
“promotion” we can show these reflections: (Mohammed et al., 2003).
Tab. 3: Traditional marketing reflection to Internet marketing

Traditional Marketing Internet Marketing
Broadcast advertising Banner ads
Direct mail e-mail
Press releases Web site pressroom
Promotions Online events
Networking Chat rooms/listserv
Word of mouth Viral marketing
Kotler also came with the theory, that the marketing mix should be rather
expressed from the point of view of the customer, and named it 4Cs (also extended
to 7Cs). The concept of looking at the marketing mix from the viewpoint of customer
also suits better for our internet marketing characteristics.
• Consumer Wants and Needs – instead of products first, we need to find what
the customer wants and then create the product, service, or solution.
• Cost to Satisfy – instead of price, we should rather think like the customer does.
Customers ask the question, “What will it cost me to be satisfied and get what
I need.” The customer will pay a fair price for a fair deal.
• Convenience to Buy – instead of place, the more important question is, how and
where does the customer want to purchase? This question is getting tougher
to answer with increasingly segmented consumer markets, the worldwide web,
and the global economy.
• Communication – instead of promotion, we need to ask the customer questions
and listen.
3.2.2 Strategic Advantages of Internet Marketing
Internet changed the way and speed we communicate and brought the greatest stra-
tegic advantage of internet marketing, compared to traditional forms of marketing.
As I mention already in the previous section, it is very important for the company
nowadays to ask questions and listen to the customers.
Pic. 2: Customer integrated into process (CPC Computer Consultants, 2008)

This picture shows the movement from traditional marketing to marketing over
the internet, when customer is more integrated into the communication process, and
there is a better space for feedbacks.
Another strategic advantages of internet marketing:
• Create new sources of competitive advantage.
• More direct distribution model.
• Modify the supply chain.
• Invent new business models.
• Target underserved segments.
• Lower price barrier.
• New delivery methods to reduce capital expenditure and pricing.
• Create more efficient marketplace.
Traditional industry supply chain usually consists of:
• Production.
• Service provider.
• Various resellers.
• End user.
The first item accompains the production value based in creation of the product
by transforming inputs into outputs. The rest two items before reaching the end
consumer of the product are just commerce based value increasers, where every
intermediary in this chain adds some incremental value to the product.
With the usage of internet marketing it is far easier to remove some inefficiencies
and intermediaries from the value chain. For example production factory can have
it’s own online shop used for marketing it’s products to the end users. By omitting
some intermediaries, the producer can benefit from higher income and consumer
from lower price.
Old 4Ps had almost no feedback loop, higher risk of innovation and guessing
market. By integrating internet marketing tools, we get innovative 4Ps that capture
customer interactions, create huge value and reduce risk.
3.3 Website 17
3.3 Website
Nowadays, we can find the link of a corporate web site presentation more often than
a telephone contact or regular address. It can be seen on billboards, TV advertise-
ments, e-mails or discussion forums. Web presentation is thus an indivisible part of
every firm’s marketing activities.
A website (sometimes written as web site) can be perceived as collection of
related web pages, texts, images, videos, and other digital media that can be found
on a specific defined Uniform Resource Locator (URL). This website is hosted on
a webserver, accessible via global network internet, or at least private Local Area
Network (LAN) and showed to guests via so called web browsers. Website is mainly
used for providing information, marketing communication, advertising products and
services, or the company itself.
Website is usually perceived as the main tool of internet marketing. All the
other tools usually try to promote the website and bring more visitors to the web
presentation. That is why the website should contain all the necessary information
for the visitors to convert into customers.
3.3.1 Domain name
Choosing a right domain name is essential part of every successful presentation.

We can imagine the domain name as the address, where customers can find the
corporate web site presentation. Domain name for a company should have the same
name as the company or product presented and be easily memorable.
3.3.2 Keywords
Keywords are the words people type into a search box, when they are looking for
something online. Search engines use these typed keywords to decide which web
pages to deliver in the results pages. That is why the selection of right keywords is
essential part of internet marketing strategy, and building of a web presentation.
If we use the keywords people are searching for within the web presentation,
page titles, descriptions and links, then we will score well in search engine results
and more people will find our site. “The language you use will be appropriate to
your audience. And as any seasoned direct marketer will tell you, speak to people
3.3 Website 18
in their own language and they will be more likely to buy from you.” (McGaffin,
2010).
3.3.3 Copywriting
Term copywriting refers to content writing on websites with main objective of the
achievement of higher rankings in search engines. This practice involves the strategic
placement and right repetition of pre selected keywords, and keyword phrases on
web pages for search engine optimization (SEO), but still writing in a manner that
human readers consider normal and well readable.
Key points of good copywriting according to (McGaffin, 2010):
• From the keyword lists you have chosen for your site, pick a primary and a
secondary keyword that you will want to rank well for with the article.
• Write the title of the article making sure that you include the primary keyword
in the title.
• Write the description tag using both the primary and secondary keywords.
• Write the first paragraph which should be a summary of the overall article and
should include both primary and secondary keywords.
• Map out the structure of the article, writing headings and subheading that each
contain keywords.
• Think about the internal and external links that you might point people to.
The linking text should be keyword rich.
3.3.4 Microsites
“Technically, they’re called microsites—small, self-contained Web destinations that

are separate from a company’s primary site, have their own distinct URLs, and
consist entirely of content focused on a particular product or service.” (Quinton,
2007).
The microsite (sometimes also called minisite) usually contains 1-5 pages, and
its main landing page usually has its own domain name or subdomain. Microsites
may be used for purely commercial purposes to create in-depth information about
a particular product, service, or as editorial support towards a specific product,
such as describing a new technology. The commercial purpose of such microsites,
3.4 Online Direct Marketing 19
(beyond increasing product sales), may include providing editorial content and key-
words allowing for greater chances of higher search engine results by search engine
optimization.
Because of that narrower focus, these small web sites can be used as hubs for a
specific marketing campaign. They are more easily optimized for search engines, and
if their content is good enough, can drive word-of-mouth or viral marketing through
linking and pass-along. (Quinton, 2007)
3.4 Online Direct Marketing

Direct marketing is a form of advertising, that reaches its audience without using
traditional formal channels of advertising, such as TV, newspapers or radio. The
advantage of direct marketing online is that the message is delivered straight to the
customer. In the online world businesses communicate straight to the consumers
with advertising techniques such as e-mail, newsletters, by using viral marketing
techniques, instant messages and also by mobile communication. Online direct mar-
keting requires well prepared copywriting text that is able to sell, and a database of
potential customers.
3.4.1 E-mail Marketing
E-mail marketing is a subsection of direct marketing, which uses e-mail as a com-

munication tool to deliver the commercial message to the potential customers. The
advantage of this marketing method is easily measurable ROI (Return on Invest-
ment), which can be very high, when the e-mail marketing is well done. Another
thing that speaks for the e-mail marketing is the fact that most of internet users
check their e-mail at least several times a week, usually every single day. Important
is also the fact, that if the recipient of the e-mail likes the message, he/she can easily
forward the message to their friends, which already falls within the sphere of viral
marketing that will be explained later. Last but not least the cost for sending one
e-mail is usually much less than sending a propagation leaflet by a regular post mail.
As a disadvantage can be perceived the fact, that people are “flooded” by lot of
spam every day and they get used to not to pay too much attention to such e-mails,
3.4 Online Direct Marketing 20
and also the fact, that even if the message is not a spam, some e-mail servers can
analyze the message as spam and filter it.
List of rules that is good to follow to avoid being called a SPAMer (B2B Lead,
2010):
• Make sure your entire physical address is at the bottom of your marketing
emails.
• Make sure you offer your recipients a way to unsubscribe from your mailing list.
• Ensure HTML content complies with standards.
• Stagger your mailings.
• Choose subject lines carefully.
• Carefully track unsubscribes, bouncebacks and opt-ins.
• Make it easy for the recipient to get in touch with you.
• Use email service provider for more automation.
• Make sure you are not using a spam buzz words.
• Use Capitalization sparingly.
• Minimize use of “click here” or “click below”.
• Watch your punctuation.
• Use simple HTML, No Javascript.
• Use web-safe colors only.
• Reduce use of large fonts and characters.
• Avoid “remove” in unsubscribe language.
• Keep file size under 70K.
3.4.2 Newsletter
Newsletter can be described as requisitioned e-mail that contains information about

new products, special promotions, or news on websites. The difference between direct
marketing via e-mail and newsletter lies in the fact, that newsletter is formerly
requested by the recipient and that the recipient can anytime unsubscribe from
receiving the newsletter any longer. Recipient usually requests the subscription to
the newsletter by checking this option at the end of the first order from the newsletter
publisher’s website, or by filling in form for adding address to the newsletter mailing
list on the publisher’s website. Newsletter has great usage for helping keep customers
loyal to the brand/company for very low extra cost.
3.5 Online Public Relations 21
3.4.3 Viral Marketing
Viral is today’s electronic equivalent of old-fashioned word of mouth. It’s a marketing

strategy that involves creating an online message that’s novel or entertaining enough
to prompt consumers to pass it on to others — spreading the message across the
web like a virus at no cost to the advertiser. “Marketers have caught the bug and
are increasingly weaving viral components into their marketing plans. Not only is
the approach relatively inexpensive, but also it can sometimes be more believable
than standard ads.” (Howard, 2005).
Viral marketing refers to marketing techniques that use social networks such as
Facebook, Twitter or YouTube to achieve marketing objectives like increasing sales
or building brand awareness. The viral marketing deserves it’s name because the
message or advertisement is spread among people like a virus by word of mouth, or
nowadays mainly by internet and social networks.
3.5 Online Public Relations

Public relations is significant part of modern marketing tools. Companies that do
not consider PR can loose customers. The question is how many customers they
can loose? The answer of this question is very difficult, because PR is much more
difficult to measure than for example internet advertising, however correctly realized
PR brings always some benefits to the company.
We can distinguish four major activities within the corporate PR (also called
as PR components) (Stuchlík, Dvořáček, 2000):
• Public relations with media - The aim is to place the appropriate message in
independent media in order to evocate the attention to particular product or the
whole company. The message outside the advertising space is considered much
more trustful and useful than simple advertisement. This activity is sometimes
referred to as publicity.
• Corporate communication - Refers mainly to the external communication with
the objective to establish and keep good relations with both professionals and
non-professional public.
• Building Corporate image - It has connection to the corporate communication
with difference in more complex and long term homogenous approach.
3.6 Online Advertising 22
• Lobbying - making influences and lobbying for support or reduction of legal and
regulatory restrictions.
Within the internet environment can be held mainly first three activities, lobby-
ing will still remain mostly for personal contact. Online PR has advantage over the
traditional PR in the possibility of great and fast two way communication on the
internet.
Companies running an online business can develop online public relations
through publishing PR articles in online PR catalogues, press releases in online
media, by sharing videos or music containing commercial message or advertisement,
or by participating in various discussion forums concerning the related topic or pro-
ducts.
3.6 Online Advertising

The main goal of online advertising as well as regular advertising is to affect the
buying behaviour of customers. The online advertising is however much more inter-
active. (Stuchlík, Dvořáček, 2000). Online advertising uses mainly the internet and
world wide web to deliver marketing messages to attract customers. Examples of
online advertising will be shown in next sections.
3.6.1 Banner Ads
Banner advertising was the first type of advertising ever on the Internet. A banner
can promote a product, service or special offer similar way as a regular billboard. The
advantage of a banner is that after clicking on it, the customer is redirected directly
to the landing page of that product, service or offer where more detail information
is provided, or where the customer can directly make a purchase.
3.6.2 Contextual Advertising
Contextual advertising is subtype of online advertising which is widely used for

content based websites. At first a contextual advertising system, such as Google
Adsense, scans the whole content of a webpage for keywords. Then the system
returns specific targeted ads based on the content, which is currently viewed on the
webpage. These targeted ads are ten viewed on specified places within the webpage
3.7 Search Engine Marketing 23
content. This type of advertising is very popular due to the possibility to target
according to customers interests.
3.7 Search Engine Marketing

Search engine marketing (SEM) is a type of internet marketing that attempts to
promote websites by increasing their visibility in search engine result pages. “Search
engine marketing is ensuring that your brand shows up when people turn to Google,
Yahoo, and other search engines for solutions, services, or products that you pro-
vide.” (Fielding, 2011). The aim of SEM is basically to place a link that promotes a
product, service or a specific offer to the best possible visible place within the page
of returned search results from the search engine.
The most internet marketers try to reach the position on the first page in the
upper area of the page, which is the most lucrative, and usually also most successful
place for commercial projects. SEM is referred to as pull marketing, because when
the user makes a search for a particular key words, the search engine returns what
the user was looking for. On the contrary push marketing refers to a common type of
marketing when we need to convince the customer to buy our product. “While push
marketing utilizes traditional media channels such as television, radio and print to
persuade consumers to buy a product or service, pull marketing speaks to consumers’
new-found personal independence in the market.” (Epower, 2011).
Search engine marketing can be divided to to parts, according the way how we
want to achieve the goal of getting our website at the best possible place. Either we
try to modify and optimize the website content the way, that the search engine itself
place the website high in it’s ranking - this is called search engine optimization, or
we have to pay to search engines for placing our link to a lucrative visible positions.
Ideally, they both work hand-in-hand, just as in the offline world a brand would
use both public relations (natural search engine marketing online) and advertising
(paid search engine marketing online) in an integrated program. “Search engine
optimization (SEO) is like PR - you are providing the “reporter”, the search engine,
with information so that they want to “write” about you. Paid search is advertising,
pure and simple.” (Fielding, 2011).
3.7 Search Engine Marketing 24
3.7.1 SEM - Revenue Models
There are four most common ways how online advertising (regardless of it’s type)
is purchased (Alexandrou, 2007):
• CPI (Cost Per Impression) is when advertisers pay for exposure of their message
to a specific audience.
• CPM (Cost Per Mile) also referred to as Cost Per Thousand (CPT). This means
that the advertisers pay for a thousand impressions.
• CPC (Cost Per Click) is also well known as Pay Per Click (PPC). Advertisers
pay each time a user clicks on their listing, and is redirected to their website.
They do not actually pay for the listing itself, but only when the listing is clicked
on. Under the Pay per click pricing system, advertisers pay for the right to be
listed under a series of target key words, that direct relevant traffic to their
website, and pay only when someone clicks on their listing, which links directly
to the landing page of the project/product/service or special offer. CPC differs
from CPI and CPM that the advertisers pay only when the user clicks on the
advertisement.
• CPA (Cost Per Action) sometimes also called Cost Per Lead (CPL). CPA defines
how much revenue a publisher of advertising receives when a user clicks an
advertisement on his website and then completes a certain action. For example,
a publisher may place a banner or text link from an advertiser on his website.
When a user clicks the link, is then directed to the advertiser’s website. The user
might then be asked to fill out a form or take a survey. If he completes the form
or survey, the action has been completed, and the advertiser pays the publisher
a certain amount based on the CPA. The cost-per-action (CPA) model is at
the other end of the spectrum from the cost per impressions models (CPM),
with the cost per click (CPC) model somewhere in the middle. In a CPA model,
the publisher is taking most of the advertising risk, as their commissions are
dependent on good conversion rates from the advertiser’s creative units and
website.
3.8 Search Engine Optimization 25
3.7.2 Google AdWords introduction
Google AdWords is and automated auction system using the Pay Per Click (PPC)
revenue model, which was described above. Basically you write an Ad and cho-
ose relevant keywords to this ad. These keywords will then be triggered by people
searching these keywords in the Google’s search engine.
All these searches of all people to the relevant keyword and all the ads with this
related keyword or phrase are put into an auction. The order of ads on the search
results page is then calculated according to the quality of the ad, and also on the
maximum amount you are willing to spend for a potential customer’s single click on
this ad. After clicking on the ad, the interested customer is then redirected to the
landing page.
Creating a campaign in AdWords system is pretty easy task, but creating a
successful campaign requires a lot of experimentation, no matter if you are an ex-
perienced marketer or a marketing novice (Google, 2009).
3.8 Search Engine Optimization

Search Engine Optimization (SEO) is a method for building or modifying of web-
sites to be suitable for automated processing by search engines and their “spiders”
which take care of indexing pages. (Wikipedia, 2011). The aim of search engine opti-
mization is getting higher ranking and thus better position for particular key words
in the search engine organic search results. The goal of more lucrative positions
in search engines is then higher amounts of targeted website guests and potential
customers in case of commercial project.
The search engine downloads in particular time periods the content of the web-
site, which is then analyzed, indexed, and stored in it’s database. The exact algo-
rithms for analyzing websites are kept secretly. Simply speaking the search engine
algorithm should sort the results according to the extent of particular website’s
searcher expectation.
Even though the title refers to optimization for search engines, we should still
remember that the web page content is made primarily for people - visitors, who are
the main consumers of the content, and who are just using search engines to find
3.9 Analytical Tools 26
the desired website or information. Thus the optimization should not be tweaked
only for search engines’ robots without thinking of the visitors. (Google, 2010).
SEO can be divided to two basic parts:
• On-page SEO concentrates on page content and a structure of the website (e. g.
menu or navigation). It accompains for example content writing, title tags,
META tags, headlines, sitemap, alt image attributes and keywords placement.
• Off-page SEO focuses more on the site’s relationship with other sites. The focus
of off-page optimization lies in link building. This can be done through directory
submissions, articles writing, direct link exchanges, PR articles etc.
Both on-page and off-page SEO techniques are essential for successful SEO and
achieving a better rank in search engines. When speaking about search engines, in
the Czech environment number 1 is Seznam.cz, number 2 belongs to Google.com
search engine.
3.9 Analytical Tools

When creating marketing efforts for promoting a project, it is essential to get to
know what is working, what is not and what our visitors like the most and what
needs to be changed. The only way how to make effective decisions is to have a good
statistical data from the backgroud. There are many good statistical tools on the
market, this list covers ten of them. (Tansun, 2009).
• AWStats comes pre-installed by many web hosting companies. Additionally, if
you are setting up your own servers, you can download it for your personal use.
AWStats goes deeper into the referring sites’ information than most analytics
packages, and is a perfect tool for monitoring whether someone is hotlinking
files from your site. Besides being a great detective tool for bandwidth thieves,
it offers all of the usual useful tools that you might expect from a statistics
package.
• eLogic provides three levels of service based on your exact needs. If you need
to track only one or two pages, they offer a stat counter that just offers you
the most basic of reports. Their Webstats BASIC package is also free, but gives
you more the usual tools you expect like referring sites, a history, demographics,
and more. Finally if you’re a business or a larger site, you may sign up for their
3.9 Analytical Tools 27
subscription program, Webstats PRO, that will give you a full history and more
extensive tools.
• Google Analytics is arguably the most popular analytics package available for
individual site owners. Google Analytics (or plain old “GA”) allows you to
dig down deep into your stats to see breakdowns of individual regions, sta-
tes/provinces, cities and numerous other items to better identify your site vi-
sitors. The wealth of data available is admirably balanced by a well-executed
user interface, but it can still be overwhelming. The package integrates with
AdWords and has ecommerce-specific tools to track sales.
• ShinyStat was initially designed to monitor visits to Italian web sites. Now it is
available to sites all over the world, and offers software packages for the indivi-
dual user, the professional user who needs to track marketing, and a business
owner who needs to monitor sales and ROI. There is also a level of service for
ISPs to install and include with their hosting accounts.
• SiteMeter has a free version for smaller bloggers with up to 100,000 monthly
visitors that offers all of the usual tools a webmaster can expect such as tracking
referrals, visit durations and so on. If you are launching a larger site and need
more tools, there is a paid version based on your volume of visitors.
• StatCounter might have a rather plain interface, but it deftly handles multi-
author blogs, allowing you to easily assign unique codes to each author. While
it is free and does work, you have to click on a link to see each analytic result
on a separate page. Despite its unpolished looks, the site does offer you clearly
readable stats on things such as keywords, traffic sources, and other useful
information.
• W3Counter comes in a free and paid version. With a free W3Counter account,
you can track up to 5,000 page views a day across 10 websites and see all of
the usual stats. In addition, you get a bonus that you can share your stats with
anyone you like via widgets for your blog or an API that lets you build new
tools. For sites with higher traffic, you can go for the Pro account that allows
you to track up to 1 million views a month.
• W3Perl differs from other analytics packages in that it does not just measure
web traffic, but also can parse the log files of email and RSS to measure just
3.10 New Trends 28
about anything you choose. You can set up the administration interface for web
access and gain real-time stats from there.
• Webalizer is written in C, which means that it is extremely fast and portable,
and is a favorite choice of people who host their own servers. Many web hosts
have this analytics package pre-installed for your use inside of their control
panel. Webalizer does not allow you to dive terribly in-depth into your data
like some other packages, but it provides an excellent overview.
• Woopra is currently in a closed beta test, but it offers you a wealth of data for
those who can get in. Real-time data are streamed from your site that appear on
a map letting you graphically see where readers are coming from, what keywords
brought them in, and referring sites. Woopra offers you a unique ability to open
up a chat window with visitors of your choice as they browse your site. An
unusual feature of this service is that the data is presented to you in a desktop
application. WordPress users can install a plugin that lets them see this data
in the dashboard of their blog.
3.10 New Trends

Thanks to the quick spread of social networks in recent years, new ways of
marketing products/services or brands emerged.
Interesting content can be shared online via social networks like Facebook or
Twitter very quickly and spread awareness of your products/services or brand
name. This new trend is called Social Media Marketing and is also well known
as Social Media Optimization (SMO).
Another modern internet marketing tool is Online Video Marketing. This me-
thod of promotion starts to be very popular for product and services promotions
as well as commercial videos.
Last field which is nowadays also on rise and significant is called Mobile Mar-
keting. This field begun to be important, as the number of smart phone users
rises worldwide, and also mobile broadband internet connection becomes more
spread.
All these new approaches to internet marketing will be described in detail in
next chapters of this paper.
4 APPLICATION OF SPECIFIC INTERNET MARKETING TOOLS TO A REAL MARKETING PRO-
JECT 29
4 Application of specific internet marketing tools to
a real marketing project
Practical part of my diploma thesis shows how to apply specific marketing tools
to a real project. By choosing the right structure of marketing tools I want to
demonstrate, how we can support an internet project or website. The main aim
of such support is increasing website number of visitor and in case of commercial
project also to increase number of sales or profit.
4.1 Introduction to the project

To demonstrate the portfolio of internet marketing tools that can support a web
based project, I have built an e-shop www.hotstyle.cz, which was created during
first half of year 2010 for the reason of this diploma thesis.
Hotstyle is an electronic store which focuses on new trends in fashion and beauty
for modern girls and women of the 21st century. The e-shop offers for it’s customers
mainly so called clip in hair extensions from a real human hair, for extending (pro-
longing) of their former length hair style. Hotstyle offers these special hair extensions
sets in different lengths from fifty to seventy centimeters for extending hair, clip in
fringes for changing a hair style, crazy color locks of hair for hair diversification,
special curl formers for fast curling, etc.
The preview of the main page of the e-shop can be seen in Appendix E of this
work.
Because this method of hair extending is not as well known as the former
methods, part of the e-shop is also detailed information about this method, manuals
how to put the extensions on and how to put off, how to take care about extensions,
how to create specific hair styles from these hair extensions, there are linked video
demonstrations and many demonstrative pictures. Another part belongs to a FAQ
combined with discussion forum.
The main target group of Hotstyle are women from 15 to 45 years, so all of the
marketing efforts will be aimed to this group of audience.
For analysis of how specific marketing tools affected number of website visitors,
customers and sales I will use data from 1st July 2010 to 31. January 2011.
5 CHOOSING THE STRUCTURE OF INTERNET MARKETING TOOLS FOR THE PROJECT 30
5 Choosing the structure of internet marketing tools

for the project
At the very beginning of this project it was necessary to choose appropriate domain
name, choose a platform of an e-shop that is well-arranged, create a graphical design,
logo, etc. When creating a graphical design, it is necessary to take into consideration
the target group. As was mentioned already above, the target group is women 15-45
years, that is why the design is made in fashion style and violet, pink and white
colors are used.
Pic. 3: Hotstyle.cz logo
The first and most important internet marketing tool is a website, in our case an
electronic shop. Without this tool, it would not be possible to realize this marketing
project at all, thus the use of a website is inevitable. When I was creating a website,
the most important factors for me were:
• User friendliness
• Interesting quality content
• Appearance
Although a website itself belongs also among internet marketing tools, I will
focus in this paper primarily on the consequent internet marketing tools used to
promote this web project (e-shop).
First of all search engine optimization was used, because compared to the other
forms of marketing it is widely considered as most efficient tool. This view is suppor-
ted also by multi-business owner James Boulay in his article “All In One SEO: An
Efficient Internet Marketing Tool for Your On-Page SEO Strategy and SEO Blog”
(Boulay, 2011). The effectiveness lies in the fact that creating content respecting
SEO techniques does not cost relatively anything, the user is usually searching for
a specific keyword of a product and last but not least that SEO works in the long
term.
In the first phase of the project after the whole e-shop is prepared and design
created, it needs to be filled by it’s content. Already during this phase it is good
to remember basic SEO techniques that are used for on-page search engine optimi-
zation. These techniques are described in details in following practical part of this
paper.
When the structure and content of electronic store is added and the on-page
SEO factors are successfully used, is the right time to start with off-page optimization
which together with on-page optimization helps us to get better positions in search
results. Catalogue registrations and link exchanges were used, because these are the
simplest and most efficient techniques for building back links.
Many marketers also believe, that the quality of a content of the website itself
together with the appropriate keywords used is the most significant criteria for search
engines to be able to deliver your content to the users who search for it.
It is also good to remember, that SEO is a long term work and you never
precisely know when you see the results.
After finishing basic on-page and off-page optimization, it would be great to
use a marketing tool that can be applied rather quickly and works immediately. For
this reason we have several options:
• Banner advertising
• Context advertising
• Search engine marketing
Banner advertising is one of the oldest types of internet advertising. Compared
to the other possibilities, it is in majority cases more expensive, offers less targeting
options and nowadays is rather substituted by newer forms of advertising. For our
reasons is much more suitable to use both context advertising and search engine
marketing which can be both targeted to relevant keywords, it’s performance can be
exactly measured and PPC model is used, so we pay only for visitors really coming,
not only for impressions.
That is why I suggested to use a targeted campaign in Google Adwords ad-
vertising systems which comprises both SEM and context advertising to start being
visible in search engines immediately, already before the SEO starts to show it’s full
results.
In today’s global world linked by social networks, it is worth to use it’s viral
strength to promote the e-shop products basically for free via it’s network. There is
not only Facebook, but also Twitter, Myspace and another platforms, but Facebook
has the highest number of users among all these servers globally and also in the
Czech Republic. Current number of Czech users as well as age statistics can be seen
on the picture below.
Pic. 4: Czech Republic Facebook audience 1.4.2011 (Checkfacebook.com, 2011)
When there is a content that attracts attention and encourages readers to share
it with their social networks, which I am sure there is on the shop, the message
about our products can be easily shared by people who like it among their friends.
A corporate message spreads from user to user, and most probably even resonates
because it is coming from a trusted source, as opposed to the brand or company
itself.
Social Media Marketing is also known as Social Media Optimization (SMO) and
benefits by providing an additional channel for customer awareness of our products
and reputation online. Key factors that ensure its success are its relevance to the
customer, the value it provides them with and the strength of the foundation on
which it is built. Often i.e. “like” button and a Facebook Page is used for SMO.
Because it is quite time demanding to regularly update a facebook page and
current information are always on the website of e-shop. I decided to use like button
and like box, which both provide viral marketing strength by offering our customers
the chance to share our content on their facebook profiles.
Microsite, also sometimes referred to as Minisite is made as a supplementary
internet marketing tool with the aim to promote the main site of the e-shop. The
reason why microsite was chosen for promoting the main page is, that there is no
other simple tool, that can provide optimized page for a specific topic, that cannot
be covered by the main e-shop page.
The next supplementary internet marketing tool used to promote the project
is Online Video Marketing. This marketing tools belong to the relatively recently
introduced modern approaches and starts to be used more and more for commercial
videos and product promotion. It can be used for increasing awareness of a particular
product, as well as of the whole brand itself. It is said that a picture is worth thousand
words. Video must be then worth even much more words. For the products that I
try to promote by the internet marketing, this tool fits very well, because customers
want to see interactive content, which online video provides in comparison to online
text.
Last marketing tool used for this project is called Mobile Marketing. However
mobile marketing does not belong particularly to internet marketing tools portfolio,
it is very close to it and nowadays, when the spread of smart phones among people
rises, many companies start to invest to be visible on mobile devices. According to
my opinion, the significance of mobile marketing will rise in future several years
many times, thus it is convenient to have the website prepared.
So the final structure of internet marketing tools used for the project is:
• Search Engine Optimization (SEO)
• Search Engine Marketing (SEM)
• Social Media Marketing (Viral Marketing)
• Microsites
• Online Video Marketing
• Mobile Marketing
From variety of analytical tools described in previous chapter, I tested all of
them and chose Google Analytics, because it has all the data statistics that is needed
for the project, very simple and most user friendly interface from all tested tools
according to my opinion, has special analytical tools for tracking sales which is very
useful for e-shops, and what is also important it is completely free. There is no
wonder Google Analytics is the most popular analytical tool worldwide.
6 SEARCH ENGINE OPTIMIZATION 35
6 Search Engine Optimization

Search engine optimization is often about making small modifications and changes
of the website, which might seem like just a very little improvements, but when they
are combined with another optimizations, it could have a noticeable impact on the
website performance in organic search engine results. In following sections I want to
demonstrate what factors were optimized in case of on-page SEO and off-page SEO
within the marketing project.
It is important to mention that SEO affects only organic search results and
not sponsored (paid) results such as Google AdWords or Sklik. The affection of
sponsored search results will be covered in next chapter.
6.1 On-page Search Engine Optimization

The following sections will show specific methods that were used on this project
when talking about on-page SEO.
6.1.1 Indication of page titles by using title tags
The <title> tag should be placed within the head part of the HTML document.
Optimally it should be created for each page of the project websites. The title must
be written in a way that effectively displays the topic of the content of the page.
This title tag displays both users and search engines’ robots what is the topic of
particular page and what they can expect. The title content will usually show in the
first line in search results page, thus it is very important. For a main landing page
with product of hair extensions of 70cm length, the page title will look like:
<title>Clip hair extensions 70cm</title>
6.1.2 Using description meta tag
As well as the <title> tag, also meta tag was placed within the head part of the
HTML document. Ideal situation is again, when we create a meta tag description
for each web page of the project. This description gives search engines a summary
of what the page is about. As a title tag we used only few most relevant words or a
phrase, but for a description it is good to use a whole sentence, or a short paragraph
6.1 On-page Search Engine Optimization 36
of text. The page description should be written in a way that informs, and also
makes users interested when they see this description in the search engine results
page. A good practice is also to use unique meta description of every single page.
<meta name=”description=” content=”Clip hair extension is an easy and fast
way how to extend your hair style. We offer a variety of colors for a discount
price.”>
6.1.3 Using heading texts
Heading tags have six sizes based on their hierarchical order. Text that is within tags
<h1>heading1</h1> is the most important text, which is also usually depicted by
highest size within the visible website while text within tags <h6>heading6</h6>
has least importance from all six headings. These multiple headings are used to
create a natural hierarchical structure of the website content, and again makes it
easier for the visitors to navigate through the webpage content.
The most important information using the relevant keywords should be tagged
within <h1> for getting the best result for SEO. We should avoid swapping from
one heading tag size to another in the wrong hierarchical order. It will be better
shown on an example how the hierarchical structure of heading was used within the
scope of the project.
<h1>Hair extensions</h1>
<h2>Length 50cm</h2>
<h3>Light colors</h3>
<h3>Dark colors</h3>
6.1.4 Friendly URLs
Creating descriptive categories and product pages can not only help keeping the
website better organized, but can also result in better ranking of the website by
search engines robots. It is much better to use friendly URLs than strange looking
URLs, that show unrecognizable parameters that a visitor nor search engine robot
can provide better insight, what the specific website is about. If the URL contains
relevant words, it provides users and search engines with more relevant information
about the page. URLs are also displayed as a part of search result in most of search
engines.
6.2 Off-page Search Engine Optimization 37
http://www.hotstyle.cz/slozka3/102548/45/m/zikddk.html =⇒
http://www.hotstyle.cz/kartac-na-prodlouzene-vlasy/
6.1.5 Making navigation structure on the e-shop easy
The navigation on the website was done as naturally flowing hierarchy. That makes
it easier for users to go from general content and topics to more specific content and
topics they want to find on the website. For navigation rather text should be used,
because text is easier for search engines to index than a Flash or JavaScript drop
down menus, animations or pictures would be.
Here is an example of simple navigation structure following the natural hierar-
chy of websites:
http://www.hotstyle.cz/clip-in-ofiny-100-lidske-vlasy/ =⇒
http://www.hotstyle.cz/clip-in-ofina-100-lidske-vlasy/svetle-odstiny/
6.1.6 Optimization of description of images
To optimize the use of images within the project it a good to use descriptive filename
and alt attribute of each image. The alt attribute allows us to define alternative text
if the image cannot be displayed for any reason. Optimizing filenames of images
makes it easier for image search project like Google Image Search or Seznam Image
Search, to better understand and classify these images.
6.2 Off-page Search Engine Optimization

As far as talking about methods that were used on this project for off-page SEO, I
can say that all the off-page efforts were basically put into increasing backlinks with
an incentive to increase the value of the e-shop website itself.
Effective promoting the content of this project leads to faster discovery by
search engines, visitors and in long term it might increase the rating or the website
in search engine result pages. For getting a relevant backlings I used exchange of
backlings with partner websites, e-shops and sites covering similar topics who agreed
on this both party beneficial aid. The e-shop was also registered manually into cca
300 free catalogues and around 100 PR article pages for getting another backlinks.
7 SEARCH ENGINE MARKETING 38
7 Search Engine Marketing

In this chapter I would like to describe how the internet marketing tool SEM was
used to promote the Hotstyle project. There was created a campaign in Google’s
AdWords.
Google’s AdWords system was chosen, because Google is the leader on the
market with online advertising and it has sophisticated statistical and best analytical
tools for webmasters that can be utilized.
7.1 Campaign’s Keywords

Choosing the right keywords is the root of the whole campaign. It depends mainly
on keywords chosen if we reach the right target group of customers or not. If the
potential customer is making search for our product, she will find us more quickly if
the right keywords are chosen for the advertising campaign. The keywords should be
well themed and relevant to the product we sell. For Hotstyle project were chosen
main keywords:
hair extensions, extending hair, clip in hair, clip in hair extensions, hair ex-
tensions sale, clip in, hair for prolonging, long hair, hair, human hair.
For keywords there are two categories which can be used to put the keyword in
and utilize the matching style of the specific keyword.
• Broad Match, which shows the ad whenever the keyword or relevant variation
of the keyword is searched for. This is the default option for each keyword.
• Negative Match, which prevents from showing ad when this specific keyword or
phrase is searched for.
It will be better explained by example. When the product I am creating a
marketing campaign for is made from human hair, I want to prevent the ad showing
when somebody is searching for synthetic hair extensions, thus I use negative match
for a keyword synthetic hair.
7.2 Campaign’s Ads

To get the best results from the campaign, the ad should be directly related to the
keywords chosen in previous part. It is more likely that a customer searching for
7.2 Campaign’s Ads 39
particular product will click on the ad that is directly related to this product. The
customers choose just according to the text in the ad on which they click, and thus
which website they visit, so there should be paid an extra emphasis to the text of
the ad.
When creating an ad, it is sometimes convenient to create several versions
and test which version is more successful and choose this version for the ongoing
campaign. The most successful campaign can be found in campaign’s statistics by
the value of Clickthrough Rate (CTR). It is a ration of number of clicks over all the
impressions. Basically the higher the better.
Components of an ad are:
• Headline - The first line on the ad, which works as a link to the website.
• Lines of text - These lines are used for description of the product, service or
benefits of the offer.
• Display URL - The URL of the promoting website.
• Destination URL - This URL is not shown in the ad. It is a landing page, where
will the visitor arrive after clicking the ad.
There was an ad created to promote the Hotstyle e-shop:
• Headline: Long Hair within 5 minutes
• Lines of text: 100% pure clip in human hair. Special offer 50cm extensions for
1590CZK
• Display URL: www.hotstyle.cz
• Destination URL: http://www.hotstyle.cz/clipin50/
Pic. 5: Depiction of created ad in Google search engine
The preview of the AdWords campaing is shown in appendix D.

8 OTHER INTERNET MARKETING TOOLS USED 40
8 Other Internet Marketing Tools Used

The technology and changes in consumer online behavior is changing so quickly, so
the internet marketers need to update and improve their marketing skills all the
time. What can be called current trend one day can become archaic within few
years, sometimes even months. Until now I was speaking about the current internet
marketing tools like SEM, SEO, internet advertising, etc. In this chapter I would like
to show how the new trends in internet marketing can be utilized, and demonstrate,
that they can gain even more value in the very near future.
The two main internet marketing tools used for promotion the Hotstyle e-shop
were covered in previous chapters. Now let us have a look at additional supplemen-
tary tools that were used for marketing of the e-shop and it’s products.
I want to discuss mainly social media marketing features used, microsite that
was created, online video spots and mobile version of the website.
8.1 Social Media Marketing - Viral marketing

Social media marketing also known as social media optimization (SMO) provides an
additional customer support channel and easy and trusted customer feedback chan-
nel. Social media marketing usually tries to create content that attracts attention
and encourages readers to share it through their social networks. It also servers as
a relatively inexpensive platform for companies to implement their marketing cam-
paigns. Popular social media platforms are: Facebook, LinkedIn, Twitter, YouTube,
MySpace etc.
Creating interesting and useful content will most likely influence the website
more than any of the other factors. Users interested in specific topic are able to
recognize good content when they see it. These users might want to share this
content also with their friends. This could be done through:
• Blog posts
• Emails
• Forums
• Social Media Services
• Other means
8.1 Social Media Marketing - Viral marketing 41
Organic or word-of-mouth recommendations helps build the website’s repu-

tation among users. That is why I want to show how we can use some of social
media marketing techniques to provide users the chance to share the content with
their friends, and which can also increase the reputation of the e-shop itself.
The most efficient and simple method how to promote the website and let users
share the content with other users is by using Facebook Social Plugins. Social plugins
let you see what your friends have liked, commented on, or shared on sites across
the web. (Facebook, 2011)
Here is a list of current Facebook’s social media plugins:
• Like Button
• Activity Feed
• Recommendations
• Like Box
• Login Button
• Registration
• Facepile
• Comments
• Live Stream
The whole list including pictures and descriptions is attached in appendix B of
this paper.
For this project I have chosen Like button and Like box, that suits the best our
needs and can significantly help to improve the performance of the e-shop.
8.1.1 Like Button
The Like button will be used for the main page of the e-shop for giving users an
opportunity to share the content with their friends on Facebook. When the user
clicks on the like button on the main page of the e-shop, a message appears in the
user’s friends’ news feed with a link back to the Hotstyle e-shop.
For creating the like button, the Facebook’s configurator was used. The URL
was chosen to the main page http://www.hotstyle.cz, layout style chosen to boxcount
without showing faces under the button.
Here is the HTML source code that is used for input to the upper right part of
the Hotstyle e-shop website:
8.1 Social Media Marketing - Viral marketing 42
Pic. 6: HTML source code of the Like Button
The result is then interpreted and depicted on the website in such form:
Pic. 7: Facebook Like Button created
How the like button looks on the main page of the website is depicted in ap-
pendix C.
8.1.2 Like Box
The Like Box is another social plugin, that will help us to attract customers to
share their like experience and stay informed from the news feed. It is actually very
similar tool to like box with the different look and with possibility to show a little
bit of news feed from the Facebook page.
HTML source code of Like Box created for the project website can be seen here:
Pic. 8: HTML source code of the Like Box
The result of like box for Hotstyle e-shop is depicted on Pic. 9:

8.2 Microsites 43
Pic. 9: Facebook Like Box created
8.2 Microsites
There was created a special microsite (sometimes also referred to as minisite) for
promotional reasons. The aim of this microsite is to focus on one specific topic, that
is not that well covered by the main e-shop, which is hair extending.
This microsite comprises information primarily about hair extending and it
has a link to the main e-shop for potential customers, who want to know more
information about the products. There was created a special subdomain with used
relevant keywords on the URL: http://prodluzovani-vlasu.hotstyle.cz/
It is much easier to target customers to a website which focuses on one topic
only, by SEO, than to a site that is more general. Thus microsite is a great marketing
tool that will do this job. Preview of the microsite website is depicted in Appendix
F.
8.3 Online Video Marketing 44
8.3 Online Video Marketing

It is said that picture is worth a thousand words, how many words does a 30-second
online video worth? Until recently, spreading your message with video was limited to
the television screen. Online video presents a great opportunity for small business
marketing. The main advantage of using online video is that it is interactive, so
creates more impact on the viewer and makes it easily memorable. It can be easily
shared with anyone and it is not expensive also to create. All these features of online
video make it widely accessible. As YouTube is becoming the easiest way to generate
targeted and continuous traffic to a corporate website, it is a good idea to invest
some time in low cost video marketing in the upcoming years.
Online Video Marketing is a sphere which is definitely on rise. The consumption
of online video has is still increasing. In November 2008, 146 million Americans
watched videos online, streaming a total of 12.6 billion video clips, or nearly double
the number they streamed just 20 months ago. (Helft, 2009).
Making a simple video and placing it online is rather inexpensive and it has the
advantage, that the video will stay online forever. When once posted, people can
find the video also in several years. That is why I created a simple video presenting
the e-shop’s products and e-shop itself, stressing the main advantages and showing
a backlink to the main page of the e-shop.
This video presentation was then uploaded to two main online video servers
(from point of view in the Czech Republic) Youtube and Stream.
Pic. 10: Online Video Hotstyle in Youtube’s search results

8.4 Mobile Marketing 45
Pic. 11: Online Video presentation on youtube.com
8.4 Mobile Marketing

Mobile marketing is all about marketing to people through their mobile phones and
smart phone devices. Small businesses have not penetrated this market with mobile
customers much yet, which brings the great opportunity to take advantage of it in
the near future.
Demand is increasing dramatically for mobile applications and mobile web
browsing due to wider adoption of devices like the iPhone and other smart pho-
nes with Google Android OS. As more people adopt these phones and features in
the near future, the potential for small business start providing location-based mar-
keting services and applications, mobile e-mail marketing, mobile websites etc. will
increase rapidly.
Like I already mentioned, smartphones are getting much more spread among
the people and they all want to remain connected to their favourite websites even on
the go. Thus there emerges a need to adjust the website design to a so called “mobile
version of website”. Although in the Czech Republic the percentage of people using
smartphones with broadband internet is definitely much less than for example in
the United States, it is slowly increasing and it is handy to be prepared. Mobile
interfaces are usually smaller so there must be adjusted dimensions of the website.
8.4 Mobile Marketing 46
The picture below depicts the mobile version of the e-shop Hotstyle how it is shown
on iPhone.
Pic. 12: Mobile Version of Hotstyle website on iPhone 4

9 EVALUATION OF THE INTERNET MARKETING TOOLS USED 47
9 Evaluation of the internet marketing tools used

For the evaluation of how successfully internet marketing tools were used for promo-
ting the e-shop Hotstyle, I will use data from 1st of July 2010 when fist marketing
tools were used until 31st of January 2011. This means there will be used data of 7
months.
The success will be measured in respect to the number of visitors and also
number of sales at the beginning of the period, then during application of internet
marketing tools and at the end of surveyed period. The numbers will be always
grouped and displayed by whole months.
As I mentioned already during the describing of SEO in previous chapters of
this paper, the search engine optimization (mainly optimization of off-page factors)
is a long term process which does not show it’s full strength immediately, but during
the time.
This can be proved by the statistics of number of visits from search engines in
each month from Pic. 13. We can see, that at the beginning of optimization phase,
there were only 4,836 visits in July 2010. The trend was then each month rising
of visits from search engines. The only exception was surprisingly December, which
can be explained by higher consumer sensitivity to advertisements than to organic
search. The traced trend continued then again in January 2011 with over 18,000
visits from search engines. When we compare situation at the beginning in July
to the situation in January, we can see almost four times increase in organic visits
thanks mainly to search engine optimization used. The total number of visitors from
search engines in examined period was 69,774.
Another interesting thing we can see from the statistics is a pie chart showing
percentage share of search engines used by visitors. Seznam was used by 50.23% of
visitors, while Google was used just by 48.94% of visitors. Percentage share of the
rest of search engines is insignificant.
From the next graph on Pic. 14, we can see how many visitors were brought
to the landing page from the AdWords campaign in each month. The average trend
of success of the ad campaign is also upward coming from 2,069 visits in July 2010
to 7,558 visits in January 2011. The overall number of visitors from campaign was
28,912.
Pic. 13: Number of visits through search engines July 1 - Jan 31
The number of “likes” obtained by Like Button and Like Box also grew from 5
in July 2010 to the total of 186 in January 2011 by increasing trend. However it is
not possible to measure the exact number of visitors that came from Facebook walls
of users, where was the link to the e-shop showed by “liking” the page, the trend
can be estimated from the direct traffic to the website.
From Pic. 15 we can see that the direct traffic at the beginning of examining
period was 794 visitors and at the end of examining period it reached 1,969 visitor.
This makes 2.5 times increase in direct traffic. The overall direct traffic was 11,051
visits.
There is also no statistical data for measuring the exact impact of online video
marketing technique, but as well as in the case of like button, we can assume from
Pic. 14: Number of visits from AdWords campaign July 1 - Jan 31
the trend of direct traffic, that also online video marketing affected the growth of
the number of visits, that went directly to the main website. This hypothesis can
be supported by the exact counts of how many times was the video watched. In
case of online video stored at Youtube it was 3,223 and Stream 1,961 on the date of
January 31.
Pic. 15: Number of visits from direct traffic July 1 - Jan 31
The microsite brought altogether 799 visits in the examined period as we can
see from Pic. 16. Started at 64 visits in July 2010 and ending with 179 visits in
January 2011 with increasing trend. In 7 months the monthly number of visitors
from this referral site has almost tripled.
Very interesting is also to see the rapid growth of using mobile devices to access
the e-shop’s website, which is displayed on Pic. 17. From 19 visits in July 2010 to
179 visits in January 2011 makes unbelievable growth of more than 9 times within
7 months time period and it makes 565 visits in total for the whole period.
Pic. 16: Number of visits from microsite July 1 - Jan 31
Under the graph we can also see individual shares of variety of mobile devices
used.
Regarding number of sales for each month can be seen on Pic. 18. There were
170 sales in July 2010 slowly growing up to 366 sales in January 2011. Total increase
in sales in examined period was little bit over 215%.
Summed up there was an overall growth of visits from 7,782 in July 2010 to
28,129 in January 2011, which makes over 360% growth in number of visits in 7
month using internet marketing techniques.
Pic. 17: Number of visits from mobile devices July 1 - Jan 31
Pic. 18: Number of sales July 1 - Jan 31

10 DISCUSSION AND CONCLUSION 52
10 Discussion and Conclusion

At the beginning of this work we discussed the relatively new medium of internet,
which allowed us to do things that would never be imagined before. One of such
things was having goods and services marketed on the world wide web. In those
times the start of internet marketing began by simple text web sites. This paper
shows the huge recent development of internet marketing in comparison with the
beginning of internet utilization of marketing just few decades ago.
Fast development in the sphere of internet marketing can be explained by the
very fast increasing number of internet users. In last decade the internet population
increased more than five times.
Nowadays, companies are able to reach customers all over the world. There
emerged new trends in internet marketing such as viral marketing or online video
marketing. Many companies utilize internet as the primary source of advertising.
First part of this work was devoted to internet marketing in general. Second
part of this work dealt with internet marketing tools such as online direct marke-
ting, online advertising, online public relations, or search engine optimization. Each
marketing tool was described and main strengths showed.
The main goal of this work was to apply modern internet marketing approaches
to a real marketing project. There was created an electronic store which has target
group of modern girls and women interesting in beauty and fashion.
Internet marketing tools used to promote the e-shop were mainly search engine
optimization and search engine marketing, supported by social media marketing,
microsite, online video marketing and mobile marketing.
I wanted to show, how selected marketing tools can help to promote specific web-
based project. For evaluation of how successful the promotion by internet marketing
techniques was, the data from July 1 2010 till January 31 2011 were used.
All the accurate data from evaluation can be seen on the graphs and tables in
previous part of this work. We can see the increasing number of both generic visits
from search engines, direct traffic supported by viral and online video marketing,
and accesses from mobile devices, as well as from non-generic created campaign.
The overall growth of visits in monitored period was over 360% and the total
number of sales growth reached 215%
10 DISCUSSION AND CONCLUSION 53
From the data, we can see the positive impact of internet marketing tools used
for this project, in respect to both number of visits of the website, as well as the
total number of sales. Some of the internet marketing techniques used develop over
the time, and from the positive trend in graphs we can assume the upward slope of
trend will continue even further.
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Appendix
A HOTSTYLE.CZ LOGO 58
A Hotstyle.cz Logo
Pic. 19: Hotstyle.cz logo

B FACEBOOK SOCIAL PLUGINS 59
B Facebook Social Plugins
Pic. 20: Facebook Social Plugins (Facebook, 2011)

C FACEBOOK LIKE BUTTON SHOWED ON MAIN PAGE 60
C Facebook Like Button showed on main page
Pic. 21: Facebook Like Button showed on main page

D PREVIEW OF ADWORDS CAMPAIGN 61
D Preview of AdWords campaign
Pic. 22: Preview of AdWords campaign

E PREVIEW OF THE MAIN PAGE OF THE E-SHOP 62
E Preview of the main page of the e-shop
Pic. 23: Preview of the main page of the e-shop

F PREVIEW OF THE MICROSITE’S WEBSITE 63
F Preview of the microsite’s website
Pic. 24: Preview of the microsite’s website

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Mendel University in Brno

Faculty of Business Economics

New Trends in Internet Marketing

Brno 1. 5. 2011 ....................................................

Opravil, T. New Trends in Internet Marketing. Diploma Thesis. Brno, 2011.

Opravil, T. Nové trendy v internetovém marketingu. Diplomová práce. Brno, 2011.

Tato diplomová práce se zabývá trendy v oblasti internetového marketingu.

2 Objectives and Methodology 10

4 Application of specific internet marketing tools to a real marketing

5 Choosing the structure of internet marketing tools for the project 30

6 Search Engine Optimization 35

7 Search Engine Marketing 38

8 Other Internet Marketing Tools Used 40

9 Evaluation of the internet marketing tools used 47

10 Discussion and Conclusion 52

B Facebook Social Plugins 59

C Facebook Like Button showed on main page 60

D Preview of AdWords campaign 61

E Preview of the main page of the e-shop 62

F Preview of the microsite’s website 63

2 Objectives and Methodology

For any type of marketing is essential to have as large number of audience

3.1 General information

3.2 Speciﬁcity and strategies of Internet Marketing

Tab. 3: Traditional marketing reﬂection to Internet marketing

3.2.2 Strategic Advantages of Internet Marketing

Pic. 2: Customer integrated into process (CPC Computer Consultants, 2008)

3.3.1 Domain name

Choosing a right domain name is essential part of every successful presentation.

“Technically, they’re called microsites—small, self-contained Web destinations that

3.4 Online Direct Marketing

3.4.1 E-mail Marketing

E-mail marketing is a subsection of direct marketing, which uses e-mail as a com-

Newsletter can be described as requisitioned e-mail that contains information about

3.4.3 Viral Marketing

Viral is today’s electronic equivalent of old-fashioned word of mouth. It’s a marketing

3.5 Online Public Relations

3.6 Online Advertising

3.6.1 Banner Ads

3.6.2 Contextual Advertising

Contextual advertising is subtype of online advertising which is widely used for

3.7 Search Engine Marketing

3.7.1 SEM - Revenue Models

3.7.2 Google AdWords introduction

3.8 Search Engine Optimization

3.9 Analytical Tools

3.10 New Trends

4.1 Introduction to the project

5 Choosing the structure of internet marketing tools

Pic. 3: Hotstyle.cz logo

Pic. 4: Czech Republic Facebook audience 1.4.2011 (Checkfacebook.com, 2011)

6 Search Engine Optimization

6.1 On-page Search Engine Optimization

6.1.1 Indication of page titles by using title tags

6.1.2 Using description meta tag

6.1.3 Using heading texts

6.1.4 Friendly URLs

6.1.5 Making navigation structure on the e-shop easy

6.1.6 Optimization of description of images

6.2 Oﬀ-page Search Engine Optimization

7 Search Engine Marketing

7.1 Campaign’s Keywords