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E-Commerce

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Published in: Digital Marketing
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Notes of E-Commerce

Madhavi / Hyderabad

10 years of teaching experience

Qualification: M.Sc (ksou - 2000)

Teaches: Computer Science, IT & Computer Subjects, IT, DBMS & RDBMS, Oracle Training, PL/SQL, BBA Subjects, C / C++, Shell Scripting, Visual Basic, Java Script, PHP And MySQL

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  1. UNIT-V E-MARKETING TECHNIQUES I.Explain about search engines? Search engines are a more popular method of finding sites than the use of directories. Web search engines take user-defines strings and Boolean expressions (such as AND and OR) and return a list of closely matched websites in the order of the closeness of match. When designing a web page, certain features can increase a site's hit rates and ranking. Hit rates are number of matches found between user requests and a web site, while ranking is the assigned relevancy score given by the search engine. This score directly affects the order of the listing of a site relevant to other sites meeting the criteria. The further down the list the site is located, the less likely the user will find the site. Keywords Meta tags and Frequency of Words. Some search engines consider a word to be very important for that site and thus cause its rating to be high for searches using that word if it is repeated frequently throughout the page. Repeating a word only a few times is not generally considered spamming. The occasional repetition of a few words and family activities scattered throughout the keywords section is generally accepted another method of search engine spamming is to repeat a word all over the page using the same color text as the background so the visitor will not see the word, but the search engine will. Location or words: The computed ranking often times depends upon where the word is placed on the web site. The general rule is to place important words as close to the top of the page as possible. Link popularity: Some search engines, such as Excite, place importance on the number of links to the site. The logic is that the site is probably a good site if links to it are made from other sites. Reviewed sites: Many search engine sites perform reviews of sites, and the sites they review are sometimes ranked above non-reviewed sites. The logic is that if the site was good enough or attention-getting enough to review, it must be more relevant. Case sensitive some search engines, such as Alta vista and Info seek are case sensitive, so repetition if words with multiple variations of case may be useful. Since info seek places weight based on meta tags, among other things, variations in the keywords may be useful. 2. Explain about Directories? Directory services on the WWW provide an index that lists and provides links to websites. The sites may be listed in one of many ways: Alphabetically or by subject, category, or region. For those indexes listed by category, the registrant of the site specifies the category. The correct choice of a category is important because the user navigates through the directory and may not find the site if it is categorized differently than expected by the visitor. Unfortunately, many directory services have multiple categories that can accurately depict many businesses.
  2. Currently, web sites can be registered at no charge to a number of directory services, such , as Infoseek, InternetMall, The Yellow Pages, and Yahoo. Other directories, such as Galaxy may charge a fee. Registering with multiple directories is important in order to cast as wide a net as possible and because users are traversing the net using many different directories. Many ISPs that server as web site hosts register the sites with many of these directories as a service. 3. Explain about Registrations? 4. Explain about solicited targeted E-mails? E-mail marketing has become a popular medium because of its relatively low cost and the ability to send HTML messages containing full-color pictures of products, as well as links to order form pages. The transmittal of an e-mail message to a solicited targeted list is a method used to attract visitors to a web site that requires acts by both the web site and the visitor. This mechanism allows a business to maintain regular contact with customers and drive traffic to web sites or other products. These types of arrangements are mutually beneficial and can be a great information source for customers/users and a wonderful advertising mechanism to help businesses unload unwanted inventory or notify interested parties of requested information. These types of relationships are typically initiated by the business offering an information service to its visitor. If the visitor is interested he/she can sign-up for the service. Because the user requests the information, this type of Internet marketing technique is considered to be pulled by the consumer with the help of the web site, it can also be considered to be a soft-push, since the site encourages the distribution of information and provides it. These types of activities include e-mail reminding the user of a family member's birthday, an alert from an online stock broker of a specific stock position, and notification that a specific merchandise item has gone on sale from registered wish list. 5. Explain about Interactive sites? Some sites may exhibit initiative to attract initial and subsequent visitors to their site by providing general information, an interactive fashion, typically with the hope of generating goodwill with the visitor so that he/she may use the site's service either on or offline. An example of this 7 is the ability to visit a website and choose a page from a coloring book to print for one's child. Another example may be an attorney who has a webpage with frequently asked questions about certain kinds of legal services. The attorney may not sell anything tangible on the Internet, but the site may allow visitors to receive "free " legal definitions that may help them to better understand their own situations and determine whether they may or may not need an attorney. 6. Explain about spam mail? Even more aggressive tactics to attract customers is the sending of unsolicited e-mail advertisements to individuals or businesses that have never visited the site. The e-mail addresses may be purchased or traded with another business. Another method of obtaining e-mail addresses is use to software robots to scan the WWW and collect addresses from public sources such as Usenet postings. Direct mail
  3. advertisers have used this method for years, flooding the postal mail boxes with what many term "junk mail" the on-line equivalent of junk-mail that is sent out repeatedly is referred to as spam mail. Spam is referred to as "postage due marketing" because the thousands of messages (even millions) sent reside on the recipients host computers until they are detected and the storage of such messages cost business money. Multitudes of software packages exist that allow users to filter out mail from sites known to send spam mail. Other methods of filtering are to filter mail with certain words such as "for only $" or "free" that are typically found in promotions. A legitimate message may contain those words and would be filtered as well. Spam mail is viewed negatively by the public. 7. Explain about E-mail chain Letters? Another low cost, aggressive advertisement technique used on the internet is email chain letters. Although not as prevalent as spam mail, they have emerged as a cheap promotional tool designed to catch attention. E-mail chain letters typically require that a user visit a site and register for something, such as a contest. For every person referring individual gets to visit the site, they get one more entry into the contest. Two internet companies, travelzoo.com and exit 23b .com used this tactic. They both offered registrants a chance to win pre IPO (initial public offering) stock. Travel zoo .com handed out 700000 shares and exit 23b.com promises to handout 100,000 shares. There is a catch, however pre-IPO stock is worthless if the company never goes public .As of the writing of this text, Travelzoo.com had no announcement of an IPO pending and exit23b.com had not yet launched its site. 8. Explain about Banners? The most popular form of on-line advertising used to attract visitors to a site is banner advertising, 53 percent according to the Internet Advertising Bureau (IAB). Typically rectangular in shape, banner advertisements contain text and graphics that are placed on the screen of search engines, web browser software, and web sites to attract the attention of www users. These banners are typically about 60 pixels high and 360 pixels wide (roughly 1, inch by 5-6 inches). They are generally click-through advertisements, meaning they contain hypertext links to the site about which the banner is advertising. The banners can contain static text or animation. Click-through advertising is like no other form of advertisement in that the advertising can lead the potential customer directly to a transaction location close the sale and record the direct link between an advertisement and its resulting sale. Banner advertising is typically measured and priced according to. Two feature. One feature is the cost per thousand impressions called the CPM> an impression refers to each time a page is viewed that is displaying the banner Browsers can be set by their users to filter out graphics, and hence most banner. If a user does this and the banner is not seen by the user although it is technically displayed, it is still counted as an impression. The range of advertising rates quoted per CPM is quite wide, ranging from as law as $10 to. As high as $80. Another feature that is important in advertising rates, is the click-through rate, called the CT R, The click-through rate is considered to be more important by many advertisers it measures the number of users delivered to a site.
  4. Software tracking device are available far tracking such items, but they are very imperfect and imprecise due to the following items: the use of computer sharing by individuals Network servers and ISPs that serve as gateways that make it difficult or impossible to count each individual user; The ability of users to. Disable their cookie features of their browser; and The prevalence of intelligent agents or "bots" and web crawlers to per sue the WWW and update indexes. Banner advertisement may be placed by subscribing to a network, such as that offered by double-click. These types of firms use, cookies to track visitors that visit sites within their network and then target specific types of banner advertisements based an what it has "learned" about each user. Another method is buy advertising time directly from a web site. Some guidelines given by Double-click for designing effective banners are: Target the banner to specific industries, appropriate regions, and user interests.. Pose a question as a teaser to entice people to click-through. Use bright colors. As a general rule, research has shown that blue, green and yellow are most effective, while white, red and black are least effective. Post banners to the most appropriate pages(s) of a site, which may not be its home page. Place the banner at the top of the page. Use animation; this can help increase the click-through rate by as much 25 percent. Use a cryptic message that intrigues; this can help increase the click-through rate by as much as 18 percent. Use phrases that call the user to an action, such as "Enter Here" These types of statements can help increase the click-through rate by as much as 15 percent. Avoid banner burnout; research has shown that people tend to "tune-out" a banner after they have seen it four times. Measure beyond the click-through; fulfillment is also important. Adapted from Double- click c.com. 9. Explain about sponsorships? Sponsorships: Sponsorship are another popular online advertising method (30 percent of online advertising according to the IAB.) Sponsorship are similar to banners in that a business gets to display a message, typically just a logo, on a site and click-through may be allowed. What distinguish a sponsorship from a banner are two features. First, sponsorships typically allow the firm's banner to stay on a site for a longer period of time, perhaps during pre-specified time slots or for a certain number of days. Second, sponsorships send a message that the advertising firm believes in the company behind the web site. Sponsorship are
  5. a good mechanism for generating brand recognition. Firms sponsoring a web site may pay a flat rate but require a minimum number of CPMs or click-through. 10. Explain about Portals? Portals: A portal is referred to a site that serves as the "port of entry" onto the web, Portals are designed to give web users the information they first enter the WWW. Customized pages are an option, as well as customized news items and stock quotes. Further, search indexes and engines are typically available. Portals typically sell advertising space on their sites. Portals are available for business to business applications as well, for example, WIZ net's E Commerce portal is designed "exclusively for business to business 11.Explain about Online coupons? On-line Coupons Another way for firms to advertise is to use on-line coupons. On line coupons may be redeemed online, printed for use in stores, or requested and sent via postal mail for use in stores. A leading drug chain, Long Drug Stores, is using an Internet site to advertise its coupon savings. Once the visitor expresses the products in which they are interested, the "drug store mails the coupons to them. This type of direct targeting can raise redemption rates and lower printing and mailing costs of coupons. Online coupons are also distributed from sites that specialize in distributing such coupons for businesses that subscribe to their services. 12. What are 5p's? Explain its application on internet? The 5p's applied to internet marketing? A customer — oriented value chain that places the customers as the center of attention, with information flows passing from a business to its customer for all facets of its operations, accepts for its own procurement where the firm interfaces with it suppliers. However, to the extent that a procurement process effects production or delivery of a good, information may be shared with the customer. For example, insight's customer requests availability of an item not stocked by insight's ware house, insight checks the inventory availability of its suppliers in real — type. All of this occurs seamlessly to the customer, who merely receives inventory availability data displayed to it insight's computer. The five up's" of marketing— product, pricing, place, promotion and people — are examined and discussed with in the context of the customer — oriented value chain and internet marketing. Product A product is a good or service that a business offers to its customers. Without some sort of viable product to offer, a business cannot survive. The product component frequently mentioned in a
  6. marketing literature is placed in the production section of the customer oriented value chain. Traditional physical goods generally have a physical, tangible presence and include items such as automobiles, grocery items, and printed newspapers. Traditional service products generally involve the performance of a task for the customer. Examples include work performed by doctors, accountants, hairdressers, and actors. Pricing The pricing of a good refers to the processes involved in determining the amount to charge for a specific physical good or service. Pricing models are typically used to determine a firm's price. The firm's strategy typically dictates the type of pricing model chosen, such as a high-volume, low-price penetration strategy. Physical goods are frequently discounted if a large enough quantity is ordered. Because of the development of search engines, customers are easily able to compare prices of many goods offer for sale only internet. On-line auctions are a popular method for selling items on the internet. Low minimum prices are typically set, with bidders typically bidding the prices up to a fair price. And interesting method of pricing goods on the internet through offers made by consumers. Place (distribution) Place is frequently referred to as outbound logistics or distribution. The distribution task entails moving the product from the producers to the customers. The product may travel direct from the producer to the customer or it may be channeled through intermediaries, such as wholesalers, warehouse and / or retailers. Electronic commerce involving the sale of physical goods can be very useful in exchanging information between business and delivery companies. The interfacing of sales or purchasing systems with delivery companies enable faster pick up of goods from warehouses and shop floors for faster delivery to the customer. The physical internet itself is also a delivery channel for digital products. Digital products are goods that are comprised of digitally encoded software, data, or multimedia files. Promotion The sale and marketing function is a separate entity in the customer-oriented value chain, and the activities perform in this capacity fall under the traditional marketing category called promotion the successful promotion of a product requires that, a minimum, a positive message be received by potential customers. This message may communicate in many ways. Paid advertising channels. News stories and press releases. Word of mouth. Consumer's personal experiences. And Packaging.
  7. The first technique, paid advertising channels, is a common method used by companies. Typically a firm will have an advertising budget, and the funds are allocated amongst many competing advertising media, such as news papers, magazine, direct-mail, television, radio, billboards, special events, etc. using the internet to create an awareness products is a relatively low-cost and increasingly effective medium. Internet marketing firms are aggressively selling their services to business. These marketing firms provide the service of attracting WWW users to specific client web sites. The advertising channels in figure above are labeled as either one-way or two-way channels. One-way channels send a message to the potential customer, but do not provide a direct mechanism for communication to the business. Examples of one-way communication included radio, roadside bulletin boats, television, magazines, newspaper, and most direct mail. Two-way channels send the message to the potential customer and provide a direct mechanism for communication from the potential customer to the business. Examples of two-way channels include some direct mail via phone responses and inquire infomercials via phone responses and inquire telemarketing, website advertising via forms-based input, electronic- mail with hypertext links to interactive websites on via a reply function, and web banners that link to interactive websites. Another aspect of promotion is the sharing of information with customers. Personalization-the fifth p The internet is leading marketers to a fundamental paradigm shift from mass marketing to personalized marketing. Database, cookies, and telecommunications technology makes it very easy and cost-efficient to mass market personalize services. Personalization on the internet refers to the ability of customers to receive personalized information (ex: sales advertising or coupons) or visit a web site with a home page customized for them. Personalization crosses the boundaries of two of the marketing ps, product and promotion, because it has the potential to impact and enhance both.

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