Seminar Three: Marketing Series. Jason Perratt Logikal Code September 22 nd, 2010

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1 Seminar Three: Marketing Series Jason Perratt Logikal Code September 22 nd, 2010

2 Agenda Purchasing & selling online Internet auc2ons & virtual malls Online display adver2sing Social networking E- Expor2ng

3 What is E-Commerce? E-commerce refers to the process of buying or selling products or services over the Internet Selling online can help your business reach new markets, increase sales and revenue

4 How E-Commerce can assist your business You can use the Internet to: Find sales leads Announce calls for tender Offer products for sale Search for products and services Comparison shop for best prices Find new suppliers Post buying requests

5 Potential Benefits Increased revenue Increased consumer base Increased cost savings Improved efficiency for your business Improved service for your customers

6 Is E-Commerce right for you? Questions to ask yourself: Is there an online market for your products or services? Think beyond the local market What are your competitors doing? How are your products different?

7 Is E-Commerce right for you? Do your competitors have an online ordering system? How will you market your products? Do you have the type of product or service that warrants an online catalogue? Do you have the inventory and/or capacity to meet increased demands generated by worldwide coverage?

8 How to sell online 1. Transactional Website 2. Integrated Website 3. Use another vendor s transactional website 4. Sell via an online auction 5. Reverse Auction 6. Join an e-marketplace

9 Transactional Website This is a basic type of online store Orders can be placed via Payments are not made via the web It still requires customers to call in their credit card number or send a cheque

10 An online store Integrated Website Ordering and payments can be made online using an Internet Merchant Account or a Third Party Payment processing arrangement

11 Vendor s Transactional website Your product or service is marketed online via a third party the new mail-order This other company does not hold your inventory; they merely take care of all online sales You ship your good or services directly to the customer

12 Online Auction Computerised version of traditional auctions where buyers bidding against each other set prices Internet Auction brings people and/or businesses together on one website to buy & sell products and services Buying and selling processes vary across auction sites

13 Reverse Auction A type of auction in which the role of the buyer and seller is reversed The buyer elicits offers from the seller Review customer requirement and add your product or service to a list Prices in a reverse auction decrease as potential suppliers underbid each other

14 Buy It Now Similar to buying from a Classified Ad or Virtual Mall but a race to buy at a low price Sellers enter their product at a low fixed price and buyers purchase item at the fixed price or hedge their bets and bid lower on the auction price Sellers need to be sure you know if you want to enter your product at a fixed price or allow it to go to auction

15 Internet Classified Sites Allows private individuals (not simply companies or corporate entities) to solicit sales for products & services Hybrid-classified display advertising may often be found, in which categorized advertisements with larger amounts of graphical detail can be found among the text listings of a classified advertising section

16 Internet Classified Sites People and businesses list the products they are selling along with the price and contact information Internet classified ads do not typically use per-line pricing models - they tend to be longer Readily searchable, tend to be local, and may foster a greater sense of urgency as a result of their daily structure & wider audience

17 Virtual Mall Virtual mall is an Internet site that works like a shopping mall People can access a wide variety of sellers and products within one website Many have shared shopping cart and payment system across all sellers Other sites allow sellers more control of e-commerce, payment and shipping functions

18 Benefits of Online Auctions & Classified A good way to increase awareness of your business and hits on your website Can help to reduce business costs Virtual malls may reduce time needed to search for various goods and establish multiple payment accounts

19 E-Market Place A virtual online market operated by an independent third party, or run by some form of industry consortium that has been set up to serve a particular sector or marketplace You register with the marketplace to conduct business-to-business e-commerce

20 Choosing the appropriate strategy How you sell online has a lot to do with the type of business you have. 1. Are you small or medium sized? 2. Do you sell goods or services? 3. Do you have a wide variety of goods to sell? 4. Do you have easy access to inventory? 5. Do you need to track your customer base?

21 Features & Services to Sell Online 1. Product Catalogue 2. Virtual Storefront 3. Shopping Cart 4. Check-Out System 5. Payment Gateway 6. Payment Processing Mechanism 7. Secure Server and Digital Certificate

22 Online Marketing Internet marketing refers to strategies to promote your business online It is important to remember that any Internet marketing strategy should be part of your overall marketing strategy This includes online and traditional offline marketing

23 Methods of Online Marketing 1. Search Engine Op2miza2on 2. Social Media Op2miza2on 3. Marke2ng 4. Directed Links 5. Online Display Adver2sing

24 Online Display Advertising Online display advertising can be defined as using the Internet as an advertising medium Display advertising frequently contain information such as text, logos, photographs or other pictures The images displayed may be static or animated

25 Benefits of Online Display Advertising You can reach a wide audience with a small budget Effective display advertising can produce immediate results Target your advertising campaign to the right audiences by placing your ad on relevant websites and by choosing the right keywords Even if users do not click on your ads, the advertisements can create and increase brand awareness Online advertisements are usually easily tracked and monitored

26 Costs - Display Advertising There is no single or exact figure for determining online advertising cost. This is because there are a wide array of advertising methods and rates which fluctuate depending upon: Service provider Popularity of the particular site at any particular time Placement of the ad on the site Type of ad (word links, pictures, etc) Size of the ad

27 Cost Per Impression (CPM) CPM is the way TV and print prices its ad space Costs are based on estimates of the number of times your ad will be viewed by 1000 potential buyers

28 Pay Per Click Pricing method is based on the number of actual clicks your ad receives In other words, you pay for this ad only if a person clicks on your ad

29 Banner Ads Banners are the most common format used for display advertising Graphic image that announces the name and identity of a website, with a brief description Banner ads may also include audio/video content

30 Pros & Cons of Banner Ads Pros: If used appropriately, this type of advertising can be beneficial in terms of helping to brand your business or product Cons: Banner ads have experienced declining click through rates (typically about.05% or less). This means that people are less likely to click on these ads.

31 Banner Ad Tips Negotiate to decrease the costs on your ad buy and carefully monitor the results of your advertising campaign These ads are most effective when targeted to the right audience Pay attention to the design of the banner ad. A good design should highlight the content in a visually appealing way

32 Banner Ad Tips Complex design involving animation will not be effective if the content is not highlighted Font sizes and colours should optimize your ad s readability Limit the use of banner ads to web pages that are relevant to the ad s content.

33 Text Ads You can find text ads on Search Engine Results Pages If you enter key words into a search engine such as Google or Yahoo you will typically see a number of sponsored links at the top or side of the search engine results page These ads are most effective when targeted to the right keyword

34 Text Ads Pros: Effective in establishing sales leads as the ads are more targeted to what users are looking for Many of the search engine companies also place the ads on other relevant websites based on the key words selected by user

35 Text Ads Cons: Costs for advertisements via search engines are pay per click There is a risk associated with doing Pay Per Click advertising as your competitors can click on your advertisement without purchasing anything

36 Text Ads Tips The amount you pay per click will depend on how targeted the keyword is and the competition for that keyword Ads are ranked based on how much you pay to advertise on each search phrase For advertising via search engines, select a large number of relevant search words or phrases

37 Pop Up Ads An advertisement that loads into a new browser which opens automatically when a web page is active Generally Pop-Up Ads hide part of the content on the web page Pop-up windows can be created in various sizes and formats which will attract attention

38 Pop Up Ads Pros: Attract attention Pop-up and pop-under ads are much more effective than banner ads Advertisers are willing to pay more for pop-up and pop-under ads.

39 Pop Up Ads Cons: These types of ads can create resentment in users Typically, a pop- up ad will pay the website four to 10 2mes more than a banner ad Most desktop sooware can now de- ac2vate pop ups if requested

40 Posting Ads Yourself Talk to friendly/complementary businesses and ask to exchange ad pages Look at websites that are directed to people who might be interested in your products or services Check out the self-serve options that are part of larger ad networks

41 Self-Serve Ad Options Facebook (http://www.facebook.com/ads/) AdReady (www.adready.com) AdBrite (www.adbrite.com) Add It All (www.aditall.com) Google Adwords (www.adwords.google.com) Google AdSence

42 Self-Serve Ad Options Yahoo Search Marketing sem.smallbusiness.yahoo.com/ searchenginemarketing Microsoft adcenter (www.adcenter. microsoft.com Ask.com (http://sponsoredlistings.ask.com/) Looksmart (www.looksmart.com)

43 Monitoring Results It is easy to track. You can measure your success through: Click-through rates Page impressions Cost per sale Search engine companies Conversion tracking Reviewing your sales & value of the sales Statistics packages

44 Popular Tools for Monitoring Results Web Trends (www.webtrends.com) Google Analytics (www.google.com/analytics) Microsoft adcenter (www.adcenter.microsoft.com) AWStats (www.awstats.sourceforge.net) Yahoo Site Explorer (http:// siteexplorer.search.yahoo.com)

45 Social Network Sites Makes visible users social network Connections are made between individuals that would not otherwise have been made Crucial component is the public display of connections Specialized sites for common interested etc.

46

47 Global social networking website Users can create a User Profile or a Facebook Page By default Page will have a wall, info, photos, discussion and reviews tab Search tool and News Feed notification

48 Fan Pages Brand your pages Special content from website Keep information current Facebook Ads

49

50 How businesses can use Share information, gather feed-back and build relationships Opportunity to communicate with customers on their own terms Saved Search feature Generate interest

51 Interconnected network of experienced professionals Allows users to create a profile & form a network of connections Network consists of your connections, your connections connections and the people they know

52 Advantages of using Boost your business Improve Google results Improve industry connections and credibility Get answers Market research

53 Sites of interest Foursquare Tweetdeck

54 Other Forms of Social Networking Blogging A blog is a website (maintained by an individual or organization) where people post entries of commentary, or other material such as graphics or video Web Syndication A form of syndication in which a section of a website is made available for other sites to use Social Bookmarking Refers to saving web links to websites that you want to remember and/or share with other people

55 Advantages & Obstacles

56 What Makes a Good Website Page? Clean and uncluttered appearance Easy to find information Accurate information Products and services are highlighted Content is current and all images, links etc. working

57 E-Exporting Exporting is the practice of sending or carrying goods or services to a foreign country for trade or sale E-exporting is the practice of receiving and processing orders online from customers located in foreign countries

58 Benefits of E-Exporting Increased sales and increased profitability Reduced reliance on domestic markets due to market diversification New opportunities for growth Economies of scale (the more you produce, the less each unit costs to make) Use of excess capacity (through increased sales)

59 Benefits of E-Exporting Rejuvenated sales of existing products Reduced vulnerability to seasonal fluctuations for your product Enhanced domestic reputation Increased awareness of possible foreign competitors Increased domestic and foreign competitiveness

60 Next week s topics Voice over Internet Protocol (VoIP) Integrating back-end systems with e-business Customer relationship management Any additional topics Questions

61 Questions Jason Perratt Software Developer Logikal Code Website: Facebook: logikalcode Phone:

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