The Internet as a Marketing Tool
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- Summary
- Oklahoma Help
- References
“Build it and they will come.” You may remember this line from the movie, Field of Dreams. And, as often happens in the movies, that dream did come true. This is often the same philosophy that guides the business owner to develop a web site. Will his or her dream come true also?
With the web so visible to us in writing, advertisements, and casual conversation,
many business owners come to believe that a web site is crucial to business growth.
Indeed, some business owners have had financial success using the web. Examples are
Amazon.com, B-movie.com and Golfballs.com. But the story heard in public is not the
entire story. Amazon Books, for all of its visibility, has yet to make a profit. Sites
like Golfballs and B-Movie have increased sales and are generating profits from web
sales, but to reach that point the companies have invested significant resources in
money, time, and energy.
So what about a web site for your business? Is it necessary? Will it help? How can
it be done? Answers to these questions will be found in this fact sheet along with
some tips to help guide your efforts.
The web market. Micro, home-based, and small business owners, like all business owners,
are interested in tapping into a potentially huge market. A web site allows the business
owner to reach this market using only limited resources. How large is the market?
The numbers vary greatly and change daily, but the Nielson Company estimates there
to be 58 million adults in the United States and Canada. That number increased by
15 percent just during a six- month period in 1998. The typical web user is no longer
just young, upper middle income males, but is rapidly diversifying by age, gender,
income, and ethnicity.
Yet, as a business owner trying to make an informed decision, you are probably more
interested in the number of buyers versus browsers. Here the numbers decrease rapidly.
While companies are reluctant to report sales, estimates suggest only 5 to 20 percent
of on-line browsers actually make a purchase. In addition, the purchases made are
less than $60.
Sales via the web are increasing as more people have access and become more comfortable
with the idea. AOL, for the 1998 Christmas season, reported that per subscriber purchases
on average increased from $8 in 1997 to $82 in 1998. This translates into an increase
from $24 million in 1997 to nearly $500 million in 1998, and this number will only
continue to grow as more people come on-line and begin to use the web as a shopping
source. Estimates indicate that by the year 2000, 67 million Americans will use the
web and 45 percent of those will be buyers (Infoworld, 1999). But remember, a web
site alone will not guarantee an increase in sales. A web site is but one of the tools
available to the business owner. Furthermore, sales represent only one purpose of
a web site. Other purposes include marketing and lead development.
In brief, the advantages and disadvantages of marketing via a web site include:
Advantages
- A growing audience
- World-wide presence and access to buyers
- Your micro, home-based, or small business looks like any other business
- Possible low cost marketing
Disadvantages
- Tremendous competition. As you can be found anywhere in the world, so can your competitors.
- Getting people to come to your site. Over 1 million pages are added per day. Getting found in this maze is difficult.
- Continual need to refresh and update your site
- Business operations need to change to handle web site business
Making the decision to build a web site for your business begins with understanding your market. Do you believe a web site will reach your potential market? Also, do you have the resources necessary to develop and maintain a competitive web site – competitive in terms of sales but also competitive simply in terms of attracting viewers. If you have a niche market product attractive to a geographically diverse audience, then a web site might be a good investment.
If you decide to develop a web site, the following information will then help guide
you in its development.
Site purpose. The first issue is to determine the purpose of your web site. Sites can focus on sales, marketing, or lead development. In the beginning it is recommended that you focus initially on only one purpose for your site. In later development you can expand the site to meet other goals you may have.
Setting up a sales site on the web keeps getting easier with new software available.
You can also work with a web site vendor’s on-line software. Finally you can hire
someone to prepare a customized site for you. Whichever way you choose, you must offer
on-line security to assure the customer’s information security. Sales sites alone
rarely succeed, however, without significant marketing efforts to attract and make
people want to shop.
If you are marketing focused, then you should determine one or two clearly identified
site goals. Typically these are education, customer awareness, and customer service
management. A site devoted to education will focus on promoting a better understanding
of the product and/or service. This site will also increase your company’s image as
a premier provider of the good or service.
Having a good web site can lend credibility to your company. Many web sites are simply
“me-too” sites, copying what another site has done. Sites need to have some originality.
Effective web sites also require continual updates to maintain a fresh image.
Service and customer relations web sites are one of the fastest growing types of sites.
The web offers an excellent way for a business to offer follow-up help. This can be
in the form of frequently asked questions, a self-guided problem solver, and a direct
communication tool with e-mail. One concern about e-mail is that customers may feel
their concerns and complaints are going into a “black hole.” E-mail is often viewed
as less serious communication and may tend to be put aside. As a business owner, you
must realize the importance of e-mail and respond to it as you would any other communication
you receive or even faster.
The final purpose of a web page is to meet potential clients or lead development.
Differing from the educational site, the lead development site may provide sample
information about your product or service. It might also include testimonials from
satisfied customers. The site should help clients contact you for more information.
Make sure to include your physical address, as well as your phone and fax numbers.
Design elements. After deciding on your web site’s purpose, the next step is to design the site.
There are many software programs, books, and consultants who can help with this task.
A crucial design element is to develop the site with the end-user in mind. The design
should facilitate the customer’s ability to use the site and be able to find relevant
information. The most effective designs include the use of graphics, pictures, sound,
and video. However while these touches produce a great-looking site, they also make
sites very slow to load. Many individuals have relatively slow internet connections,
and the customer will tend to click away from the site if they have to wait much longer
than 30 seconds.
To keep customers coming back to your site, you must keep it fresh. This means adding
new information and updating the look. In order to keep up with this task, it is often
best to start out simple and small. Keeping up a sales site is much more intensive
than keeping up with an educational or lead development site.
You want the customer to feel the trip to your site was worth it. The customer must
feel like they are receiving value for their time and effort. Sales via the web are
often done to reduce your costs. Customers should receive some of the savings if that
is the case.
In one final comment about design, the owner must consider how a successful web site
will impact existing business operations. Can you respond to orders coming in possibly
every hour of every day and do so in an efficient and timely manner? Proper design
of the web site can help alleviate some of these issues; however, a successful web
site also means the redesign of existing business operations.
Site Production. As you can see from the suggestions, the operation of a web site requires commitment.
It is not something that can be done quickly and then forgotten. Whether or not you
hire someone to produce your site, you, the business owner, must provide clear and
continuous guidance. You should test the site personally when any changes are made.
If your company has several employees, one person must be in charge of this element
of your marketing program, i.e the “Webmaster.”
A common question about web site production is who should do the actual work. Can
you do it yourself, or should you hire someone? It depends on your skills, your desire
to learn web design, and the resources, both time and money, you have available and
want to commit. Remember, not only will you have the initial site development costs,
but constant updating is a necessity.
Today’s sites need to be more sophisticated than before. What once would have been
perfectly adequate as a web site, now would not receive much attention. Creating such
sites takes resources: either your own time to learn more sophisticated tools or monetary
resources to pay for this sophistication. Allowing the client to actually make purchases
on-site will require even more sophistication, thus increasing the cost to build and
to maintain.
Once your site has been developed, you then need to decide where that site will be
stored. Storage means whose computer will host the site. For storage of your web site
you have the same two options as with its production – you can do it yourself or you
can hire a hosting service. Typically the small company will not host their own site
because of the additional technical and hardware necessities. Site hosting means that
your computer network must be on-line 24 hours a day, 7 days a week. That means having
someone constantly handling computer problems.
The selection of a hosting service should be done with care in order to have a service
that will meet your needs. You can hire a simple hosting service or look for a company
that offers consulting on web design. When comparing costs, carefully understand what
each service offers and compare like services to each other. Make sure they have the
speed (bandwidth) to amply handle the traffic plus back-up systems in place. (A note
of caution: Do not rely on just your server’s backups. You should keep a copy of your
entire web site at your location also.) Ask about the amount of time that the system
is up and operating. Finally, make sure your web host can offer secure transactions.
Site or domain registration can be done on-line at http://rs.internic.net/. Perhaps
the most difficult task is finding a name for your domain. It is best if your domain
name is also your business name. By registering your domain, you own the rights to
use that name as long as you continue to pay the fees, which are currently $70 for
the first two years and then $35 per year thereafter.
If your existing business name is not available, you have two options. You can choose
another domain name, or you can go to a company that sells sub-domain names, e.g.
www.somecompany.com/yourname.
Finding Your Site. So now you have your web site developed and listed. You have “built
it,” and now they, the customer, “will come.” Not yet. You are now facing the most
difficult task – getting people to find you. Being “found” in the 800 million web
pages that exist is the next critical step.
What can you do to help people find your page? The first step is to register with
the major search engines. Typically, 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 in your web
site. This is technical language, but basically it allows automatic indexing services
to look at your site and list it in their database. Probably one of the best tips
for getting your page found is to network with web developers and learn their tricks.
If you want, you can hire someone to do your site registration.
You also will want to leverage your current advertising and marketing efforts by placing
your web site address on anything you produce, including all your written materials.
You have probably noticed that practically every advertisement today, whether in printed
form, on a billboard, or on the back of a truck, carries the business’s web address.
While these methods may help the person who knows nothing about your site find you,
the best method, true in any marketing program, is by word of mouth. Encourage your
customers to visit your site and get them to recommend you to others. In addition,
you will want to connect with groups who may be interested in your site. For example,
you may agree to be a speaker at a meeting where you can introduce the audience to
web shopping in general and during the presentation use your site. Another way to
connect is to make agreements to cross-link with other pages.
Summary
Should your business have a web site? Probably. However, the type of site and the
details about the site will vary. Your own knowledge of your business and customers
will help you determine if you need a web site and the specific purposes for your
site.
A web site can be an important part of your marketing plan. Just like any other marketing
tool, a web site requires commitment and resources.
Remember these tips:
- Start simple.
- Make the trip to your site worth it.
- Keep it new and updated.
- Remember your customer when it comes to page design.
- Tell people you are there.
- Integrate your site with your other marketing efforts (Don’t depend on the web site alone).
Oklahoma Help
Oklahoma has a source to help the business owner develop a web site. The Oklahoma Electronic Commerce Connection will evaluate sites and offer consultation as you develop your site. They will also help you find the people you need to produce and store a site. You can contact them at okec@okec.org or at www.okec.org.
References
Bersford, L. & Page. H. (1996, Dec.). Best bets: 1997’s hottest businesses. Entrepreneur, 108-112
Glossbrenner, Alfred & Emily. (1996). Making more money on the internet. New York:
McGraw Hill.
GVU. (1999). WWW user survey. www.cc.gatech.edu/gvu/user_surveys/
Infoworld (1999, Feb. 1) Online malls,.p. 1, 36-38.
McCollum, T. (1996, Dec.). The future is now. Nation’s Business, 84(12), 16-28.
Peck, Richard (1996). Conducting business on the internet. O’Reilly & Associates,
Inc.
Page, H. (1997, Jan.) Tech smart: Fruitful idea. Entrepreneur, 20.
Strategy Alley (1998). White paper on the viability of the internet for businesses.
Willoughby, C., Woods, M. D. & Chaney, D. (1996). The World Wide Web as a Tool for
Rural Economic Development – Fact Sheet AGEC-904. Stillwater, OK: Oklahoma Cooperative
Extension Service.
Glenn Muske, PhD
Former Home-Based & Micro Business Specialist
Nancy Stanforth, PhD
Kent State University
Mike Woods, PhD
Professor, Agriculture Economics