Review architecture and content. Marketing Launch new products/services Launch new functionality

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1 1. Customer acquisition you don t exist until there are customers 2. Customer conversion, proposition and experience development create a website for people to traffic to. This is the backbone. Once they re at the destination you convert them from visitors to customers 3. Customer retention and growth Customer acquisition: Display advertising e.g. banners SEO search engine optimisation. The process that gets websites listed prominently within search engines organic results (MANDATORY) Search engine marketing (price per contact): amount paid by advertiser per click on sponsored listing Blogs drive traffic and build credibility Video Google views your webpage as higher quality if you have a video and lists you higher. Social media MUST be present on all those sites. Pick tools customer base uses the most. Start with one then once its running do another Customer conversion, proposition and experience development Enhance useability/functionality: when someone lands on site can they find stuff Research path analysis: where they go in the site/where they leave Shopping cart usage and security: is cart simple and payment secure Ease of navigation: should never have to click back button Ease of product selection: Search functionality: Video demonstration/virtual displays: do they render on all computers? Review architecture and content Marketing Launch new products/services Launch new functionality User generated content: Others also bought capability requires data analysis Customer reviews and rating - trip advisor etc. Customer retention and growth Use personalised communications such as welcomes and E-CRM (customer relationship model) which help spend simulation, build relationships and enhance customer value Blogs and social media to encourage repeat visitation must be ACTIVE on these otherwise they serve no point. Unlike other mediums, you do not necessarily use a campaign schedule, more so are ever present Introducing participation with community Forums, reviews, ratings, Recommendations Support for functionality improvement The underlying website s technology/functionality CMS (Content management system) or not? Cost reduction tool Revenue generator?

2 THE INTERNET AND MARKETING MIX PRODUCT Core The problem solving benefit the customer is purchasing Actual Brand name - more important in online environment because you cannot interact with product. Branding is your trust connection in the online relationship Quality quality standard must be delivered at the level promised Styling/design Features Packaging is part of the experience. Consumers are excited for package to arrive Extended or Augmented Warranty After-sales service - can they contact you (phone, etc.) give availability of options so they can reach you. easy to find Delivery advise delivery time and get it by that time Payment options Installation Training/support Product Suitability for E-commerce! [KNOW OPTIONS FOR VARYING PRODUCT] OPTIONS FOR VARYING THE CORE PRODUCT Additional services and information: TRIPADVISOR: started doing only reviews, now does trips, recommendations, photos, activities, guides, flights etc. Personalisation of products: CONVERSE: means people can buy what they actually want Podcasting: video attracts more people to your page (and Google displays higher). Adds personal connection to products and content and lets customers control how they interact with the brand Attract new segments by repackaging Create new propositions to diversify: Use database capability to bundle products: VIRGIN: you need a flight accommodation and car rental and can book all through the one site without having to exit the site and driving traffic to another. OPTIONS FOR OFFERING DIGITAL PRODUCTS Pay per view e.g. on Itunes you can watch a movie once and pay to see Ad supported content: setting up pay walls around things we used to have for free. Some newspapers are doing this. Get some stuff free must pay for rest Subscriptions e.g. Spotify/Pandora as we get more digitally subscriptions are growing. Can bundle different channels or content offered as individual or grouped

3 OPTIONS FOR CHANGING THE EXTENDED PRODUCT Testimonials Tools for product selection assistance: using data you can facilitate increasing purchase volume e.g. suggestions of other things you may be interested in based on data from other transactions New product development: Can harness consumer feedback for product development. DELL has done this with ideastorm. Consumers know product strengths and weaknesses so this is a good way to improve or create new products. Starbucks have introduced voting on things before they re rolled out. C Communication must be two-way. You need to become apart of the online community Velocity of new product diffusion Consumers move in sync and this is known as tribal movement. It is extremely difficult to predict what will be cool next. Connectors spread the world. Most people wont buy the first version of a product but will wait till the second PRICE Think about: Positioning Discounts Credit Payment methods Free or value added elements KEY IMPLICATIONS Price and price transparency is extremely important online its easy to search and find products cheaper elsewhere (aggregators make price comparison simple and highlight features like brand, quality, customer service etc.) Demand is more elastic and factors in more than price. People buy online because: cheaper, more convenient and can get products you cant get elsewhere Downward pressure on pricing: no bricks and mortar cost structure to support. Price transparency creates additional competition. Suck prices into your site and help consumers decide which places to purchase. You can then charge advertising space. Traditional pricing methods still apply Cost-plus pricing: cost of product + markup Target profit pricing: what your target market is willing to pay Competition based pricing: what are competitors charging. Do you want to position yourself higher lower or the same. Value perception is important Market orientated pricing e.g. premium pricing (above), penetration pricing (low for start) Alternatives: Basic pricing Discounts Add-ons and extra products/services Refund and order cancellation terms refunds part of price. If you don t offer refunds trust is degraded. Must be seamless and timely.

4 TYPES OF WEBSITES PEOPLE BEHIND A WEBSITE Site/brand owners: the client. They have the initial idea for the site and corporate and campaign content. Client side marketers: typically sit in the marketing department. They brief the agency on requirements and work with the agency to increase site exposure and drive traffic to site Account service and interactive producers: develop strategy the site (approved by the client), develop site schematic (map), oversee development, manage timelines and deadlines, handle all quality control, testing and processing of issues logs, interface with internal team and outside vendors. They have technical and analytical skills and ideas for considering timeframe and budget. They are responsible for day-to-day contact with client. Logistical management is crucial. Programmers: involved in strategy development, ensuring functionality capabilities. They must approve and buy into the timing of the plan. They build, test and deploy the site and sit in the IT department Creative/art directors: responsible for creative vision and concept of the site: look and feel, layout, mood and message. Must know how brand is portrayed online and plan videos, colour schemes, photos. They manage the visual to text ratio humans don t like to read a lot in screen environment Graphic designers: artistically interpret concepts e.g. detail like weighting of fonts and fine-tuning work. They work closely with programmers to provide correctly formatted graphics Copywriters: writes site content. You can t have lots of text on pages so the text we do have is highly important and must cut to the point. Put text into language that sells. Works with the creative directors to interpret the message. Writing must flow around imagery and functionality. TYPES OF SITES Portals: Help users to locate information dispersed throughout the web (have search engine incorporated). They provide information from other sites not just their own. They generate revenue through selling advertising space because their site drives a lot of traffic. Often a starting point for users e.g. ninemsn, Google plus offer services such as and news headlines Distributed portals: pull information from other sites based on a central theme such as employment e.g. seek has jobs, online courses, volunteerings, businesses for sale etc. Niche portals: concentrated on a specific topic and create most of their own content e.g. seek used to be niche when it was only job postings. Business to business (B2B) Business to business sales take longer as decisions are made by committee, they have higher financial risk and purchase value and enterprise implementation requires project planning. In B2B as there is more emphasis on relationships between buyer and sales person. Design: simple and professional, which is corporate in nature and usability, creates impression of professionalism. Copy heavy content vs. imagery businesses are there to find information so visuals are less important that business to consumer websites. The site MUST tell you what it is about and information but be quick and easy to get to Business to consumer (B2C) Most often done through e-commerce. B2C companies typically try to reach a wide audience and are therefore less personal with interaction between company and customer. HOWEVER: databases are becoming much more sophisticated and can transactional and geographically map. Shorter sales cycles than B2B

5 Design: heavy imagery is used with less content. The goal is to reduce the number of clicks for people to get to where they want. Shopping cart must be simple and clean. Heavy price orientated visuals are effective as consumers are motivated by catalogue specials catalogues drive traffic. Incorporate customised product suggestions based on transactional data Consumer to consumer (C2C) Sites that sell products or pass information on from consumer to consumer e.g. ebay, gumtree etc. business also use these sites to drive traffic to their own sites. Benefits: lower prices due to little if any mark-up, practically limitless selection Drawbacks: rely on consumers trusting other consumers, increased chance the purchased items wont be in good shape on delivery Design: incorporate ratings and seller reviews to build consumer trust. Business to employee (intranet) Facilitate consistent corporate communication to a large number of employees across may locations. This information is readily updated. It provides a central location for corporate announcements, online training and access to personal info including benefits, insurance, information etc. Social networking Connections based on common interest. Advertising is the revenue model or by selling memberships. E.g. on NING you can create your own social website, Jomsocial, etc. Informational Provide information. Sells advertising space based on number of visitation numbers. Traffic generation depends on content that is interesting to market, attractive layout with easy navigation, updated content and aggressive and ongoing marketing campaigns. E.g. webmd hard to diagnose self it creates great traffic for advertising revenue Entertainment: Provide an entertainment outlet for visitors such as games and videos. Significant area of popularity growth e.g. YouTube. Content must be updated regularly. Can use entertainment sites to relay messages and promote their name e.g. YouTube channel. Micro-site: small structure (5-10 pages) only used for short term (e.g. campaign focussed.) traffic prospects to specific content, avoiding distraction of full site content. In microsite it s easier to control and measure what they re looking at.

6 E-COMMERCE AND E-TAILING E-COMMERCE: Conduct business involving the sale and purchase of products and services through the use of technology by the way of the medium of the Internet. Growing everywhere, especially china. Big growth in mobile commerce and traffic being driven through mobile devices (11% /year) Money goes through e-commerce much faster than retail Demographic of online audience: higher annual income, higher education level. Motivated by more than just price i.e. convenience, reliability and services, time saving. Ages who spend the most are Majority falling between 35 and 44. Trust: As we get accustomed to products we are becoming more comfortable shopping online. More trusting of sellers within Australia: shipping, time etc. SITE SELECTION Positive experiences online result in return visits and positive work of mouth. Build good WOM by meeting expectations or doing better. Ecommerce is an online retail presence to use techniques like in a bricks and mortar store e.g. deals, posters etc. Benefits of e-commerce Not being bothered Easy comparison shopping Wider selection (could be bad too many additional choices can overwhelm Convenience Less expensive Personalised selection Order history PRICING CONSIDERATIONS Factors: Overall cost Volume of business Overall demand Competitors pricing Target market willingness Brand history Discounts loyalty discounts, purchase discounts etc Drawbacks of ecommerce Shipping payments Delivery wait time (consumers want instant gratification) Non-cash payment options only Inability to experience can overcome using augmented reality Lack of trust show trust certificates Unsocial share on social networks Lack of customer assistance include FAQ s and live chat REVENUE STREAM Can be either direct or indirect Direct sales: The largest and most important revenue stream. Revenue = N o units x price. Reasons to purchase