Three main functions of markets

E-Marketing Market, Consumers, Advertising, Search Engine

  Hidra Amnur, SE, M.Kom

  2 Agenda

• Markets and e-marketspace
• E-marketing strategies
• Product development strategy

  Pricing on the Internet • Branding and traffic building •

• Web site promotion and advertising
• Types of e-Markets (product, pricing)
• Advertising (placement, promotion)
• Search engine positioning (example)

  Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

  3 Categories of consumers

• Impulsive buyers: purchase quickly
• Patient buyers: make some comparisons first
• Analytical buyers: do substantial research before buying

  Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

Functions of markets Three main functions of markets

  4 Functions of markets

  Matching buyers and sellers • Facilitating the exchange of information, goods, • services, and payments associated with market transactions Providing an institutional infrastructure, such as a legal • and regulatory framework, that enables the efficient functioning of the market

  5 E-Marketspace A marketplace in which sellers and buyers exchange goods and services for money (or for other goods and services), but do so electronically.

Components

  Customers Back end • •

• Sellers • Intermediaries

  Products • Other business partners • Support services • • Infrastructure Digital products • • Front end

  6 E-Marketing Strategies

The essential issues of marketing are also referred to as the four Ps of marketing mix:

  Product: Physical item or service that a company is selling • Pricing: Amount the customer pays for the product • Placement: How the product/service gets to the customer, • sometimes called “place” referring to “where” a product/service is sold

• Promotion: Any means of spreading the word about the _{Regional Training Workshop for Enterprise Support Agencies to Promote E-business for}

  product _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

  7 E-Marketing Strategies (cont.)

There are extra tree Ps as the extended marketing mix:

• People: Right person, trained well, motivated
• Process: Providing services to customers
• Physical evidence: Case studies, testimonials

  Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

  8 Types of E-Markets A single or company Web

• E-storefront:

  site where products and services are sold An online

• E-mall (online mall):

  shopping center where many stores are located

• some are merely directories
• some are actually large click-and-mortar retailers (e.g., shopping.
• some are virtual retailers (e.g., buy.com)

  9 Types of E-Markets (cont.) An online market, usually B2B, in which

• E-marketplace:

  buyers and sellers exchange goods or services; the three types of e-marketplaces are private, public, and consortia Private e-marketplaces: Online markets owned by a single • company; can be either sell-side or buy-side marketplaces

  Sell-side e-marketplace: A private e-market in which a company • sells either standard or customized products to qualified companies Buy-side e-marketplace: A private e-market in which a company • makes purchases from invited suppliers

• Public e-marketplaces: B2B markets, usually owned and/or

  managed by an independent third party, that include many sellers and many buyers; also known as exchanges Consortia: E-marketplaces owned by a small group of large • vendors, usually in a single industry

  10 Market segmentation

• The identification of specific portions of a

  market and targeting them with specific advertising messages

• Divides the pool of potential customers into

  segments

• The practice of targeting very small market

  segments - micromarketing Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

  11 Market segmentation (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

Marketers have traditionally used three categories of variables to identify market segments

• Geographic segmentation: location
• Demographic segmentation: age, gender, family size,

  income, education, religion, or ethnicity

• Psychographic segmentation: social class, personality,

  or their approach to life

  12 Acquisition, conversion, retention Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

• The first step in doing business on the web is to acquire or draw visitors to the site itself
• The second step is converting those first time visitors into customers by persuading them to make a purchase or register with the site, etc.
• Customers who return to the site one or more times after making their first purchases are retained customers

  13 Advertising Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

• Advertising is all about communication

  between:

• a company/organization and its current customers
• a company/organization and potential customers
• a company/organization and its former customers
• To be effective, firms should send different messages to each of these audiences

  14

  15 Types of Internet advertising/marketing

• E-mail marketing: powerful, economical, legal implications, spam
• Affiliate marketing: commission-based, benefit of the selling site’s brand in exchange for the referral

  Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

  16 Example: Affiliate Marketing

  Google Inc. ,an internet search engine, sells search related ads • targeted at internet users.

• Google sells ads on behalf of thousands of web sites other

  than its own to attract more big-name advertisers. Advertisers specify websites & can run animated display ads. Google w ill begin auct ioning ad placem ent s for Google w ill begin auct ioning ad placem ent s for it s part ner sit es based on it s part ner sit es based on Cost Pe r I m pr e ssion Cost Pe r I m pr e ssion ( based on how m any people see t he ad) , as w ell ( based on how m any people see t he ad) , as w ell as it s t radit ional as it s t radit ional cost cost - - pe r pe r - - click click m et hod. m et hod.

  17 Reactions Reactions

• The new ad features “provide more control to us” are effectively

  cheaper with cost-per-impression pricing. (Julie Roehm, Dir. of Mktg. Communications, DaimlerChrysler).

• (Less waste of ad budget)

  18 Online Ad Monitoring Online Ad Monitoring

• Online advertisers are monitoring web

  surfing to better target their advertisements towards potential buyers.

• Current: auto advertisers place ads on auto related sites.
• Using behavioral targeting, advertisers are able to place more ads to target audiences (auto enthusiasts) based on their surfing behavior.

  19 “ Improved ” Ad Strategy

  “ Improved ” Ad Strategy

• For example, someone who reads personal finance articles

  on a news site could be served ads for a stock broker when he visits an automotive web site

• Ad companies are trying to get website owners to form an

  advertising network to serve ads based on the content that the surfer reads on another company’s website.

  20 Who ’ s using the Ads

Who ’ s using the Ads

  Starwood Hotels & Resorts utilizes behavioral targeting • by delivering ads to people who might have browsed related articles on the internet, or surfed the website of any Starwood branded hotel. Ford likes the chance to reach customers who appear • from their web surfing to be interested in “a certain type of vehicle, and even down to a certain model”

  21 Search Engine Positioning Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

• Potential customers find web sites in many

  different ways

• Some site visitors will be referred by a friend,

  others by affiliates, some will see the site’s URL in a print advertisement or on television

• Many site visitors will be directed to the site by

  a search engine

  22 Search Engine Positioning (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

• A search engine helps people find things on

  the web

• A search engine has three major parts:

  1. A spider, a crawler, or a robot

  2. Index or database

  3. Search utility

• Search engine positioning is also called:>Search engine optimization
• Search engine placement

  23 Search Engine Positioning (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

  24 Search Engine Positioning (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

  25 Search Engine Positioning (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

  26 Search Engine Positioning (cont.) Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}

  27 Q & A Conclusion

  Regional Training Workshop for Enterprise Support Agencies to Promote E-business for _{SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok}