Popular in Course
verified elite notetaker
Popular in Business
This 4 page Document was uploaded by an elite notetaker on Sunday December 20, 2015. The Document belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 6 views.
Reviews for internet-market
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 12/20/15
Oklahoma Cooperative Extension Service AGEC-566 The Internet as a Marketing Tool Glenn Muske, PhD Home-Based & Micro Business Specialist Oklahoma Cooperative Extension Fact Sheets are also available on our website at: Nancy Stanforth, PhD http://osufacts.okstate.edu Kent State University Mike Woods, PhD Professor, Agriculture Economics nearly$500millionin1998,andthisnumberwillonlycontinue to grow as more people come on-line and begin to use the “Build it and they will come.”You may remember this line webasashoppingsource.Estimatesindicatethatbytheyear from the movie, Field of Dreams. And, as often happens in 2000, 67 million Americans will use the web and 45 percent of those will be buyers (Infoworld, 1999). But remember, a the movies, that dream did come true. This is often the same websitealonewillnotguaranteeanincreaseinsales.Aweb philosophy that guides the business owner to develop a web site. Will his or her dream come true also? site is but one of the tools available to the business owner. With the web so visible to us in writing, advertisements, Furthermore, sales represent only one purpose of a web site. and casual conversation, many business owners come to Other purposes include marketing and lead development. believe that a web site is crucial to business growth. Indeed, Inbrief,theadvantagesanddisadvantagesofmarketing some business owners have had financial success using via a web site include: the web. Examples are Amazon.com, B-movie.com and Golfballs.com. But the story heard in public is not the entireAdvantages story.Amazon Books, for all of its visibility, has yet to make a A growing audience profit. Sites like Golfballs and B-Movie have increased sales • World-wide presence and access to buyers and are generating profits from web sales, but to reach that • Your micro, home-based, or small business looks like point the companies have invested significant resources in any other business money, time, and energy. • Possible low cost marketing So what about a web site for your business? Is it neces- sary? Will it help? How can it be done? Answers to these Disadvantages questions will be found in this fact sheet along with some tips• Tremendouscompetition.Asyoucanbefoundanywhere to help guide your efforts. in the world, so can your competitors. Thewebmarket.Micro,home-based,andsmallbusiness • Getting people to come to your site. Over 1 million owners,likeallbusinessowners,areinterestedintappinginto pages are added per day. Getting found in this maze is difficult. apotentiallyhugemarket.Awebsiteallowsthebusinessowner toreachthismarketusingonlylimitedresources.Howlargeis • Continual need to refresh and update your site the market? The numbers vary greatly and change daily, but • Business operations need to change to handle web site the Nielson Company estimates there to be 58 million adults business in the United States and Canada. That number increased by 15 percent just during a six- month period in 1998. The typi- Making the decision to build a web site for your business cal web user is no longer just young, upper middle income beginswithunderstandingyourmarket.Doyoubelieveaweb site will reach your potential market? Also, do you have the males, but is rapidly diversifying by age, gender, income, and ethnicity. resources necessary to develop and maintain a competitive Yet, as a business owner trying to make an informed web site - competitive in terms of sales but also competitive decision, you are probably more interested in the number of simplyintermsofattractingviewers.Ifyouhaveanichemarket buyers versus browsers. Here the numbers decrease rapidly. product attractive to a geographically diverse audience, then Whilecompaniesarereluctanttoreportsales,estimatessug- a web site might be a good investment. Ifyoudecidetodevelopawebsite,thefollowinginforma- gest only 5 to 20 percent of on-line browsers actually make tion will then help guide you in its development. a purchase. In addition, the purchases made are less than $60. Sitepurpose.Thefirstissueistodeterminethepurpose Sales via the web are increasing as more people have of your web site. Sites can focus on sales, marketing, or lead access and become more comfortable with the idea.AOL, for development. In the beginning it is recommended that you the1998Christmas season, reported that per subscriber pur- focus initially on only one purpose for your site. In later de- chases on average increased from $8 in 1997 to $82 in 1998. velopment you can expand the site to meet other goals you may have. This translates into an increase from $24 million in 1997 to Division of Agricultural Sciences and Natural Resources • Oklahoma State University Setting up a sales site on the web keeps getting easier In one final comment about design, the owner must con- with new software available. You can also work with a web sider how a successful web site will impact existing business site vendor’s on-line software. Finally you can hire someone operations. Can you respond to orders coming in possibly to prepare a customized site for you. Whichever way you every hour of every day and do so in an efficient and timely choose,youmustofferon-linesecuritytoassurethecustomer’s manner? Proper design of the web site can help alleviate information security. Sales sites alone rarely succeed, how- some of these issues; however, a successful web site also ever, without significant marketing efforts to attract and make means the redesign of existing business operations. people want to shop. Site Production.As you can see from the suggestions, Ifyouaremarketing focused, then you should determine the operation of a web site requires commitment. It is not one or two clearly identified site goals. Typically these are somethingthatcanbedonequicklyandthenforgotten.Whether education, customer awareness, and customer service man- or not you hire some- agement.Asite devoted to education will focus on promoting one to produce your abetterunderstandingoftheproductand/orservice.Thissite site, you, the business willalsoincreaseyourcompany’simageasapremierprovider owner, must provide of the good or service. clear and continuous Having a good web site can lend credibility to your com- guidance. You should pany.Manywebsitesaresimply“me-too”sites,copyingwhat test the site personally another site has done. Sites need to have some originality. when any changes are Effectivewebsitesalsorequirecontinualupdatestomaintain made. If your company a fresh image. hasseveralemployees, Service and customer relations web sites are one of the one person must be in fastestgrowingtypesofsites.Theweboffersanexcellentway charge of this element for a business to offer follow-up help. This can be in the form of your marketing pro- of frequently asked questions, a self-guided problem solver, gram, i.e the “Webmas- and a direct communication tool with e-mail. One concern ter.” about e-mail is that customers may feel their concerns and A common ques- complaintsaregoingintoa“blackhole.”E-mailisoftenviewed tion about web site pro- as less serious communication and may tend to be put aside. duction is who should As a business owner, you must realize the importance of e- do the actual work. mailandrespondtoitasyouwouldanyothercommunication Can you do it yourself, you receive or even faster. or should you hire someone? It depends on your skills, your Thefinalpurposeofawebpageistomeetpotentialclients desire to learn web design, and the resources, both time and or lead development. Differing from the educational site, the money, you have available and want to commit. Remember, leaddevelopmentsitemayprovidesampleinformationabout not only will you have the initial site development costs, but yourproductorservice.Itmightalsoincludetestimonialsfrom constant updating is a necessity. satisfied customers. The site should help clients contact you Today’ssitesneedtobemoresophisticatedthanbefore. for more information. Make sure to include your physical ad- What once would have been perfectly adequate as a web dress, as well as your phone and fax numbers. site, now would not receive much attention. Creating such Design elements. After deciding on your web site’s sites takes resources: either your own time to learn more purpose, the next step is to design the site. There are many sophisticated tools or monetary resources to pay for this software programs, books, and consultants who can help sophistication.Allowingtheclienttoactuallymakepurchases with this task. A crucial design element is to develop the site on-site will require even more sophistication, thus increasing with the end-user in mind. The design should facilitate the the cost to build and to maintain. customer’s ability to use the site and be able to find relevant Once your site has been developed, you then need to information. The most effective designs include the use of decide where that site will be stored. Storage means whose graphics, pictures, sound, and video. However while these computer will host the site. For storage of your web site you touchesproduceagreat-lookingsite,theyalsomakesitesvery have the same two options as with its production – you can slow to load. Many individuals have relatively slow internet do it yourself or you can hire a hosting service. Typically the connections, and the customer will tend to click away from small company will not host their own site because of the the site if they have to wait much longer than 30 seconds. additional technical and hardware necessities. Site hosting To keep customers coming back to your site, you must means that your computer network must be on-line 24 hours keepitfresh.Thismeansaddingnewinformationandupdating aday,7daysaweek.Thatmeanshavingsomeoneconstantly the look. In order to keep up with this task, it is often best to handling computer problems. start out simple and small. Keeping up a sales site is much The selection of a hosting service should be done with more intensive than keeping up with an educational or lead care in order to have a service that will meet your needs. development site. You can hire a simple hosting service or look for a company You want the customer to feel the trip to your site was that offers consulting on web design. When comparing costs, worth it. The customer must feel like they are receiving value carefully understand what each service offers and compare for their time and effort. Sales via the web are often done to like services to each other. Make sure they have the speed reduce your costs. Customers should receive some of the (bandwidth) to amply handle the traffic plus back-up systems savings if that is the case. in place. (A note of caution: Do not rely on just your server’s AGEC-566-2 backups. You should keep a copy of your entire web site at A web site can be an important part of your marketing your location also.) Ask about the amount of time that the plan. Just like any other marketing tool, a web site requires system is up and operating. Finally, make sure your web host commitment and resources. can offer secure transactions. Site or domain registration can be done on-line at http:// Remember these tips: rs.internic.net/. Perhaps the most difficult task is finding a • Start simple. name for your domain. It is best if your domain name is also • Make the trip to your site worth it. yourbusinessname.Byregisteringyourdomain,youownthe • Keep it new and updated. rights to use that name as long as you continue to pay the • Remember your customer when it comes to page de- fees, which are currently $70 for the first two years and then sign. $35 per year thereafter. • Tell people you are there. If your existing business name is not available, you have • Integrateyoursitewithyourothermarketingefforts(Don’t two options. You can choose another domain name, or you depend on the web site alone). can go to a company that sells sub-domain names, e.g. www. somecompany.com/yourname. Oklahoma Help Finding Your Site. So now you have your web site Oklahomahasasourcetohelpthebusinessowner developed and listed. You have “built it,” and now they, the developawebsite.TheOklahomaElectronicCommerce customer, “will come.” Not yet. You are now facing the most Connection will evaluate sites and offer consultation as difficult task – getting people to find you. Being “found” in the you develop your site. They will also help you find the 800 million web pages that exist is the next critical step. people you need to produce and store a site. You can What can you do to help people find your page? The first contact them at firstname.lastname@example.org or at www.okec.org. step is to register with the major search engines. Typically, Contact: you can go to the search engine’s home page to learn how to add your site. Also be sure to use key words and meta tags Glenn Muske, Ph.D. in your web site. This is technical language, but basically it Home-Based and Micro Business Specialist allows automatic indexing services to look at your site and list Oklahoma Cooperative Extension Service it in their database. Probably one of the best tips for getting 135 HES Oklahoma State University your page found is to network with web developers and learn 405-744-5776 their tricks. If you want, you can hire someone to do your site fax 405-744-5506 registration. www.okstate.edu/hes/fci/mbro/frm You also will want to leverage your current advertising and marketing efforts by placing your web site address on References anythingyouproduce,includingallyourwrittenmaterials.You have probably noticed that practically every advertisement Bersford,L.&Page.H.(1996,Dec.).Bestbets:1997’shottest today, whether in printed form, on a billboard, or on the back businesses. Entrepreneur, 108-112 of a truck, carries the business’s web address. Glossbrenner,Alfred&Emily.(1996).Makingmoremoneyon the internet. New York: McGraw Hill. While these methods may help the person who knows GVU. (1999). WWW user survey. www.cc.gatech.edu/gvu/ nothing about your site find you, the best method, true in any marketing program, is by word of mouth. Encourage your user_surveys/ customers to visit your site and get them to recommend you Infoworld (1999, Feb. 1) Online malls,.p. 1, 36-38. toothers.Inaddition,youwillwanttoconnectwithgroupswho McCollum, T. (1996, Dec.). The future is now. Nation’s Busi- ness, 84(12), 16-28. maybeinterestedinyoursite.Forexample,youmayagreeto Peck, Richard (1996). Conducting business on the internet. be a speaker at a meeting where you can introduce the audi- ence to web shopping in general and during the presentation O’Reilly & Associates, Inc. www.ora.com/www/research/ use your site.Another way to connect is to make agreements netcraft/exec_sum_inet.html to cross-link with other pages. Page, H. (1997, Jan.)Tech smart: Fruitful idea. Entrepreneur, 20. StrategyAlley(1998).Whitepaperontheviabilityoftheinternet Summary for businesses. www.strategyalley.com/articles/inet1.htm Shouldyourbusinesshaveawebsite?Probably.However, Willoughby,C.,Woods,M.D.&Chaney,D.(1996).TheWorld the type of site and the details about the site will vary. Your WideWebasaToolforRuralEconomicDevelopment–Fact own knowledge of your business and customers will help you Sheet AGEC-904. Stillwater, OK: Oklahoma Cooperative determine if you need a web site and the specific purposes Extension Service. for your site. AGEC-566-3 The Oklahoma Cooperative Extension Service Bringing the University toYou! The Cooperative Extension Service is the largest, • Itprovidespractical,problem-orientededucation most successful informal educational organization for people of all ages. It is designated to take the in the world. It is a nationwide system funded and knowledge of the university to those persons guided by a partnership of federal, state, and local who do not or cannot participate in the formal governmentsthatdeliversinformationtohelppeople classroom instruction of the university. help themselves through the land-grant university • It utilizes research from university, government, system. andothersourcestohelppeoplemaketheirown Extension carries out programs in the broad catego- decisions. riesofagriculture,naturalresourcesandenvironment; family and consumer sciences; 4-H and other youth; • More than a million volunteers help multiply the impact of the Extension professional staff. and community resource development. Extension staff members live and work among the people they • It dispenses no funds to the public. serve to help stimulate and educate Americans to plan ahead and cope with their problems. • It is not a regulatory agency, but it does inform peopleofregulationsandoftheiroptionsinmeet- Some characteristics of the Cooperative Extension ing them. system are: • Localprogramsaredevelopedandcarriedoutin • The federal, state, and local governments co- full recognition of national problems and goals. operatively share in its financial support and program direction. • The Extension staff educates people through personal contacts, meetings, demonstrations, • It is administered by the land-grant university as and the mass media. designated by the state legislature through an • Extension has the built-in flexibility to adjust its Extension director. programsandsubjectmattertomeetnewneeds. • Extension programs are nonpolitical, objective, Activitiesshiftfromyeartoyearascitizengroups and research-based information. and Extension workers close to the problems advise changes. with Disabilities Act of 1990, and other federal laws and regulations, does not discriminate on the basis of race, color, national origin, gender, age, religion, disability, or status as a veteran in any of its policies, practices, or procedures. This includes but is not limited to admissions, employment, financial ▯aid, and educational services. Issued in furtherance of Cooperative Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department ofAgriculture, Robert E. Whitson, Director of Cooperative Exten- the Division of Agricultural Sciences and Natural Resources and has been prepared and di▯stributed at a cost of 20 cents per copy. 0507uthorized by the Vice President, Dean, and Director of AGEC-566-4
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'