Digital Marketing Project
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InternetMarketingGoals5.pptxInternet Marketing Goals
Dr. Ofer Mintz
Fun Fact of the Day
Amazon sold 636 items PER SECOND on Prime Day, 2016! (Inc.com)
Amazon sold 426 items PER SECOND during the 2013 holiday shopping season! (TheVerge)
AliPay had around 1.5 billion payments made on SINGLE’S Day in 2017! (Forbes)
Everything That's Wrong with HealthCare.gov
Why is this such a big issue (ignore the politics)
Outline of Today’s Class
Identifying Internet Marketing Goals
Decision Board Activity
Google Analytics Demo
Pricing
Class Approach to Digital Marketing
Understand customers, competitors, and company
Develop a goal based on this understanding
Select the appropriate marketing mediums and mix to accomplish goal
Measure, evaluate, and possibly reformulate
Recap of Understanding Customers
Flow Strategies Online
4 Shopping Strategies
Directed buying
Search/deliberation
Hedonic browsing
Knowledge building
Visual Information & Website Design
What are your Internet Marketing Goals?
Get consumers to purchase?
Spread a message?
Obtain consumer information?
Increase consumer loyalty?
Decrease distribution costs?
Internet Marketing Goals: Getting Consumers to Purchase
Pros:
Lots of money to be made
Relatively small up-front costs
Easier to target specific consumers
Cons:
Consumers don’t just come to your website and purchase from nowhere
Conversion rate has never exceed 4%
Very large shopping cart abandonment rate
Therefore need to understand the processes consumers make to purchase
Consumer Decision Processes on Automobile Website
30% of visitors to the site completed task (1)
20% of those visitors then went on to complete task (2)
34% of those visitors then completed the task (3)
Source: Bucklin and Sismeiro (2003)
Typical Consumer Decision Process
Consumers process product information by one of two processing patterns:
Alternative-based processing patterns
Attribute-based processing patterns
Processing by Alternatives
Processing by Attributes
10
Alternative-Based Website Designs
Qualitative Version Quantitative Version
11
Alternative-Based or Attribute-Based Website Design
12
Decision Board Activity
Decision Board Activity
Go to www.decisionboard.org
If don’t have laptop, partner with your neighbor
Click on subject tab
Enter information
Scenario id: 5478
Click on cells to see more information (the information will show up as pop-up)
Click on final choice!
How to Shift Consumer Processing towards more Alternative-based Patterns?
Marketing specific products that users would distinguish and focus their search on
Make sure the website is not too complex
How to Increase Likelihood of Purchasing?
Simplify!!!
Engage users
Action points
How to Measure and Evaluate: Get Consumers to Purchase
What to measure?
What to use to evaluate?
Example: Class Choice of Charities
Internet Marketing Goals: Spreading a Message
Pros:
Easier, cheap method to get the word out
Relatively easy to analyze efforts
Provides new avenues to get consumers
Cons:
Trying to decide on which type of audience are you trying to attract?
How will your target customers hear about the message?
Which type of audience are you trying to attract?
Buyers, browsers, or knowledge builders?
General, niche, or mixed?
How will your target customers hear about the message?
Traditional Media
Online Advertisements
Search Engines
Emails
Word-of-Mouth / Social Media
How to Measure and Evaluate: Spreading a Message
What to measure?
What to use to evaluate?
Example: UTS Advanced MBA
Internet Marketing Goals: Obtaining Customer Info
WHERE JOE SHOULD HAVE BEEN DURING JUSTIN BIEBER CONCERT IF WE HAD A COMPLETE CUSTOMER PROFILE (AND FOUND OUT ABOUT HIS TWO GIRLS)
JOE AT A BON JOVI CONCERT
IF WE WOULD HAVE A PROFILE ON JOE, WE WOULD HAVE
KNOWN ABOUT JOE’S 2 GIRLS
JOE AT HOME DURING JUSTIN BIEBER CONCERT
Why is Collecting Data Important?
25
Internet Marketing Goals: Obtaining Customer Info
Pros:
Better individualized service leads to better sales
Cheaper market research
Cons
Information Overload
Privacy Concerns!!!
Article: “Data Mining”
What do you think about the amount of your personal data businesses have on you?
Why do you think Facebook and Google are worth so much?
What does this mean for advertisers?
What about privacy concerns?
If you get enough value, do you care?
Tracking Behavior Examples
Data on 10,000K+ hotel searches conducted Oct 1-15, 2009
Travel Dates
Time/Date of Search
Number of Rooms
Number of Travelers
Free Text Associated with Search
Region/Distinct Keyword Assigned to that Text
Number of Kids (important for if family or not)
29
For Each Search We Observe Most Details
Hotels Displayed
Price Displayed for Each Hotel
Was the Price a Promo?
Expedia Star Rating
Traveler Review Rating
Number of Traveler Reviews
Order Appearing on Page
Detailed Hotel Information
Hotel Name
Room Capacity
Structure Type (i.e., hotel, motel, B&B, etc.)
Star Rating
Closest Airport
Regions (13-102) / Type of Region
Location via latitude and longitude
52 SubMarket Names
(i.e., Eiffel Tower, etc.)
Brand Name
(112 names)
Parent Chain Name
(61 names)
City of Hotel
(280 cities)
Primary Booking Source
31
| Market | Budapest | Cancun | Paris | Manhattan |
| Hotels | 321 | 115 | 1674 | 328 |
| Regions / Distinct Keywords | 17 | 13 | 102 | 30 |
| # of Searches | 14835 | 12211 | 13329 | 15242 |
| Observed users (cookie-based) | 5175 | 4985 | 4737 | 4778 |
| Data Points | 422616 | 315822 | 433523 | 374331 |
| Details Viewed | 8395 | 5958 | 5249 | 5346 |
| Pricing Viewed | 1566 | 1751 | 741 | 980 |
| Purchases | 274 | 86 | 112 | 116 |
| Average number of hotel details viewed for each search | 0.566 | 0.488 | 0.394 | 0.351 |
| Average number of purchases for each search | 0.053 | 0.017 | 0.024 | 0.024 |
Interesting Data Differences between Cities
Google Analytics (Intro Video)
Google Analytics Examples
More Generic Examples
Behavioural Flow Example
Google Analytics Example
Demo Account Providing Information from the Google Merchandise Store
Includes:
Traffic source data including information about organic traffic, paid search traffic, and display traffic
Content data about the behaviour of users on the site
Transactional data
How to Measure and Evaluate: Obtaining Customer Info
What to measure?
What to use to evaluate?
Internet Marketing Goals: Increasing Loyalty
Pros:
Provides more detail about your products/policies
Improve customer service
Leads to purchases
Cons:
Will your customers enjoy your website?
At what cost? (also think about the continual upkeep)
How will you design your webpage?
Increasing Loyalty ESPN Example
Fox News Example
Internet Marketing Goals: Decrease Distribution Costs
Pros:
Direct to consumer
Cheaper
Potential increase in brand awareness
Cons:
Potential harm with current distributers
Need continual up-keep
Decrease Distribution Costs Examples
How to Measure and Evaluate: Decrease Distribution Costs
What to measure?
What to use to evaluate?
Online Pricing
Determine what is profitable for your business
Figure out what is reasonable for your customers
Find out how your competition is pricing
USE VALUE-BASED PRICING BASED ON CUSTOMERS!!!
Pricing Digital Information
Costs
Relatively expensive upfront
Relatively cheap to reproduce
Strategy with information
Differentiation
Cost Leaders
Analyzers and Prospectors
Personalizing your information
Personalize and differentiate pricing
Fully personalizing
Versioning
Group pricing
Know thy consumer
Utilize ease of analyzing digital information to measure the effects of marketing mix actions on consumer behavior
Article: Buyer Beware, Online Shopping Prices vary User to User
Do you agree with practice?
As a customer?
As a business?
Would you incorporate this in your business?
How would you segment prices?
How to mitigate potential problems?
Actual Variations in Price on Amazon (via Camel Camel Camel)
Context Effects in Pricing
Types of Context Effects:
Substitution Effect
Compromise Effect
Asymmetric Decoy (or Attraction) Effect
Mental Accounting
Let’s Play a Game:
Samsung1
$699.99
Samsung2
$749.99
Samsung3
$749.99
You want to buy a TV
Which one would you buy?
52
Let’s Play a Game:
Samsung4
$799.99
Samsung5
$749.99
Samsung6
$749.99
You want to buy a TV
Which one would you buy?
53
Let’s Play a Game:
Samsung7
60” Screen
$799.99
Samsung8
55” Screen
$749.99
Samsung9
50” Screen
$699.99
You want to buy a TV
Which one would you buy?
54
Let’s Play a Game:
Samsung10
60” Screen
$799.99
Samsung11
55” Screen
$789.99
Samsung12
50” Screen
$699.99
You want to buy a TV
Which one would you buy?
55
Substitution Effect:
Samsung1
$699.99
Samsung2
$749.99
Samsung3
$749.99
You want to buy a TV
Which one would you buy?
56
Compromise Effect
Samsung7
60” Screen
$799.99
Samsung8
55” Screen
$749.99
Samsung9
50” Screen
$699.99
You want to buy a TV
Which one would you buy?
57
Asymmetric Decoy (or Attraction) Effect
Samsung10
60” Screen
$799.99
Samsung11
55” Screen
$789.99
Samsung12
50” Screen
$699.99
You want to buy a TV
Which one would you buy?
58
Mental Accounting
Group Priced = $6.36
Individually Priced
Context Effects Strategies
Can you use context effects to increase sales of certain items?
Are context effects negatively impacting sales of certain items?
Recap of Internet Marketing (so far)
Understand how the decision making process consumers need to use to accomplish your goals
Consider what are your main internet marketing goals for your webpage
Ad methods (next week we will discuss more)
Measure and evaluate based on your goals and methods employed
Next Class
DUE:
BY WED. at 5pm: Group Live-Case Roster (5-6 members)
BY WED. at 5pm: Personal Bio
Next Tutorial
Continue working on Live-Case
Learn to use Google AdWords (bring laptops if possible)
