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Thesis A.stavinska
Thesis A.stavinska
F a c u l t y o f E c o n o m i c s a n d Ad m i n i s t r a t i o n
DIPLOMA WORK
2013
Thesis Supervisor:
Author:
Anastasia STAVINSKA
Brno, 2013
Masaryk University
Faculty of Economics and Administration
For:
Stavinska Anastasia
Field:
Business Management
Title:
Principles
of
thesis
w r i t i n g:
Ing. Ji Richter
1/11/2012
Department Head
Dean
In Brno on 1/11/2012
N am e a nd Su rna me :
Anastasia Stavinska
De pa rtme nt:
Corporate Economy
Ye a r o f de fe ns e :
2013
Abstract
This work aims to investigate a Primary objective is to analyze the Internet
marketing strategies of international retailer companies and to investigate
modern trends of Internet marketing. The thesis is split into theoretical and
practical parts. This work starts with a theoretical one, by giving an
introduction to the topic and briefly highlighting the modern concepts of
marketing. The main theoretical part is about the website being a main
tool of the online marketing promotion. For this, common literature and
available internet sources were used. The practical part includes the
assessment of the given sample of international retailor companies and an
analysis of a given single website with following recommendation
regarding its future marketing activity online, which is based on the
findings of the theory.
Keywords
Marketing, Internet, Online Marketing, Website Analysis
Authors Statement
I hereby declare that I worked out the Diploma work Analysis of the
Internet marketing activities myself, under the supervision of Ing. Jii
Richter, and that I stated in it all the literary resources and other specialist
sources used according to legislation, internal regulations of Masaryk
University and internal management acts of Masaryk University and the
Faculty of Economics and Administration
Brno, 26.04.2013
Acknowledgments
This thesis would not have been possible without help of many people. I
would like to express my gratitude to my supervisor Ing. Jii Richter, who
offered invaluable assistance and supervision, whilst allowing me the room
to work on my own.
I would also like to thank my friends for great load of encouragement and
countenance.
Above all, I would like to thank my family for their unconditional support,
great patience and care throughout the whole period of studies.
Content
ASSIGNMENT OF DIPLOMA THESIS..............................................5
1 MARKETING......................................................................- 3 1.1 MODERN CONCEPT.............................................................................- 3 1.1.1 Needs, wants and demands....................................................- 4 1.1.2 The market offering.................................................................- 5 1.1.3 Value, satisfaction and quality.................................................- 6 1.1.4 Exchange, transaction and relationships.................................- 6 1.1.5 Markets....................................................................................- 7 1.2 MARKETING
7-
2 INTERNET.........................................................................- 9 2.1 A
2.2 NO
9-
10 -
3 MARKETING STRATEGIES..................................................- 12 3.1 GENERAL PRINCIPLES........................................................................- 12 3.1.1 Indirect approach..................................................................- 13 3.1.2 Differentiation.......................................................................- 13 3.1.3 Concentration........................................................................- 14 3.2 MARKETING
MIX...............................................................................-
14 -
A SUCCESSFUL WEBSITE.......................................................-
17 -
4.2 ANALYZING A WEBSITE......................................................................- 20 4.2.1 First glance............................................................................- 20 4.2.2 Obtainable indicators............................................................- 21 4.2.3 Statistics................................................................................- 22 5 LIMITATIONS OF THE STUDY.............................................- 24 6 WEBSITES ASSESSMENT...................................................- 26 6.1 SAMPLE
OVERVIEW...........................................................................-
6.2 PERSONAL
6.3 VISITORS
26 -
EVALUATION.....................................................................-
27 -
PERCEPTION.......................................................................-
29 -
7.4 FUTURE STRATEGY............................................................................- 41 7.4.1 Gantt chart............................................................................- 43 8 RECOMMENDATIONS FOR THE COMPANIES EXPANDING ONLINE 46 8.1 DESIGN
8.2 SALES
AND USABILITY.....................................................................-
46 -
AND DELIVERY........................................................................-
46 -
8.3 INFORMATION
AND BRANDING.............................................................-
47 -
8.4 INVESTMENTS
AND RETURN................................................................-
47 -
Introduction
Invention of Internet is considered to be a milestone in human history and
the start of the so-called Informational Age. It has changed everything,
from the way of communication to the way of conducting business.
Modern companies are willing to expand online which raises the question
of successful online marketing.
The expected contribution of the work is the result of website investigation
as a main tool of online marketing, alongside discovering the modern ways
of marketing online and revealing methods of websites assessment.
The objectives of the thesis
Primary objective is to analyze the Internet marketing strategies of
international retailor companies and to investigate modern trends of
Internet marketing. Secondary objective is to develop a comprehensive list
of recommendations for the companies expanding online.
Methods of implementation
Theoretical part of the thesis is devoted to the literature review of
marketing modern concepts, Internet as the new emerging market and
website being a core tool of online marketing strategy and promotion.
Practical part illustrates the analysis on a chosen sample of businesses,
summarized
in
synthetic
list of
recommendations
for
the retailor
PART I
1 Marketing
This Chapter is aimed to serve as the general introduction to this thesis,
reviewing the essence and modern concept of marketing and establishing
the connection to online marketing concepts.
N
w
d
m
M
a
(
ff
v
)
,k
g
c
x
E
&
V
u
f
p
h
s
n
io
lt
e
r
Self-actualization
Esteem
Social
Safety and security
Psychological
6
Market offer some combination of products, services, information
or experiences offered to a market to satisfy a need or want (P.
Kotler, 2005 p. 9)
If to look down on the theory of microeconomics, the market demand is
dictated by the market price of the product or the bundle of products a
consumer wants. Therefore, if the price on the desired product goes up,
demand goes down and the other way round. Market offering or supply is
linked to demand inversely, meaning that supply will grow with the growth
of the price on the market, whereas demand will decline. The market price
is set in the equilibrium point between demand and supply.
Not only products are considered as marketing market offering, also
services, activities or benefits that are intangible and do not result in
ownership of anything can be included. So, not making a mistake of just
selling a product or service, a marketer is promoting a complete solution
or experience for customers. (P. Kotler, 2005 p. 9)
1.1.3 Value, satisfaction and quality
Customer value the customers assessment of the products overall
capacity to satisfy his or her needs (P. Kotler, 2005 p. 10)
In other words, customers do not buy products; they are more interested
in the solution the product will bring to an existing problem. For example,
one trend in retail marketing in grocery business is category management,
implying the challenge to manufacturers to prove to the retailers that
brands add to the value of the category. If to put it very simple: the
manufacturer makes potato crisps; the retailer merchandises salty snacks,
when the customer just buys lunch. (G. Hooley, 2004 p. 24)
This leads us to the next point: customer satisfaction the personal
opinion of the products performance in comparison to the expectations. If
the experience from the product is below the stated expectations, a
customer feels dissatisfaction and the other way round. The perceiving of
the product performance is very subjective, but if the customer is satisfied,
he is more likely to repeat the purchase and tell others about the good
experience. (P. Kotler, 2005 p. 10)
7
1.1.4 Exchange, transaction and relationships
Exchange the act of obtaining a desired object from someone by
offering something in return (P. Kotler, 2005 p. 10)
Marketing as a matter occurs when people satisfy their needs through the
process of exchanging a medium of exchange to the object of desire.
1.1.5 Markets
Market the set of all actual and potential buyers of a product or
service (P. Kotler, 2005 p. 11)
This is the finalizing concept, bringing the circle together. From this point
of view, marketing is a working process on or with the market, the main
target of which is to satisfy customers needs and wants.
If the entrepreneur paid enough attention to discovery and investigation of
customers needs, development of the product, settlement of the
appropriate price and establishment of the stable distribution channels,
the sales should conduct. Then where is the main focus? The definition of
marketing stated above implies marketings contribution to organization
and its demands.
Modern successful companies have one common distinctive feature they
are very customer-oriented and strongly committed to marketing. It is
essential, as even the very best, innovative and quality product will not
gain success if it is not bringing superior value and high level of
satisfaction to the customers. Therefore, customers are one of the most
important components of the marketing process creating value and
satisfaction for the customers is considered to be the basis of modern
marketing.
Today, marketing must be understood not in the old sense of making
a sale telling and selling - but in the new sense of satisfying
customer needs. (P. Kotler, 2005 p. 6)
Conclusion
Marketing is not just about sales or advertising, its modern concept implies
a wide range of functions, alongside with sales and advertising, targeted
on a deeper understanding of the cause and gaining of effective result.
Main components of modern marketing concept are needs, wants and
demands, the market offering, value, satisfaction and quality, exchange,
transaction and relationship and the last, but not the least markets. The
technological development of the recent years has changed the way
business is conducted through globalization, and contributed to the
creation of additional online market.
2 Internet
I think in general it's clear that most bad things come from
misunderstanding, and communication is generally the way to resolve
misunderstandings, and the Web's a form of communications, so it
generally should be good. Timothy Berners-Lee
The modern world is changing very quickly under the huge impact and
incredible speed of informational technologies development. This chapter
will briefly reveal the history of the Internet and generally describe the
ways Internet can be used for successful marketing.
10
result, the Internet grew above its research routes and now is including
both broad user community and increased commercial activity.
Development of the commercial products, implementing the Internet
technology turned Internet almost to a commodity service, and
transformed into a mean of supporting online commercial services. It is
important to point out that the popularization of the Internet among users
was accelerated by rapid adoption of browsers and the WWW technology,
allowing easier access to the information online. (B.M. Leiner, 2012)
The evolution of the ways of getting information caused a rapid decline of
the information costs. Moreover, it made it possible for an ordinary user to
have control over the consumer products information and ability to create
their own content. Nowadays, it makes Internet to be a natural
marketplace and a sufficient part of the economics.
Internet is emerging both as an extremely useful tool for business
planning and also as a part of a companys marketing mix. As a
planning tool, the Internet search and resource sites can aid any
discipline by opening a high-speed gateway to the wealth of
information. In addition, the Net is a vehicle for marketing research.
(J. Strauss, 1999 p. preface)
11
As a matter of fact, online business is constantly evolving and improving,
as well as online marketing. The best illustration to the fact is the growing
amount
of
companies
creating
online
presence
and
mass
media
to
understand
under
online
marketing
activities?
Modern
Conclusion
The modern world is changing under the significant impact of technology
and commerce needs to follow the tendencies. Introduction of the
computers
has
become
milestone
of
human
history,
bringing
12
to differentiate businesses and find new customers on the global online
market.
13
3 Marketing strategies
Marketing strategy the marketing logic by which the business unit
hopes to achieve its marketing objectives (P. Kotler, 2005 p. 595)
1 Sir Basil Henry Liddell Hart, usually known before his knighthood as
Captain B. H. Liddell Hart, was an English soldier, military historian and
leading inter-war theorist. He is credited with greatly influencing the
development of armored warfare. (2013)
14
Envelopment attack
This type of attack consists of two major stages:
1. Focus on a specific market (the same way as in indirect attack).
2. Identification of additional segments and development of suitable
offer to envelope the entire market.
Bypass attack
The core meaning of the bypass attack is the expansion of the areas of
interest to the unrelated segments of the market. Thought it is deceiving
the competitor, it may also cause a negative effect of being spread and
dispersing the main focus from any single area.
Guerrilla attack
This strategy involves small, and, on the first glance, chaotic attacks with
the aim to lead the opposing manager into making a strategic mistake. For
example, selective price cuts, promotional bursts, supply interference, etc.
Mainly, it is used for a small company, competing against a large
corporation.
Having those principles in head, it is possible to form them into an
actionable plan (Paley, 2007 pp. 41-42):
3.1.1 Indirect approach
As discussed above, indirect approach strategy implies a company
entering the undeveloped segments of the market. The actions taken
when using this approach include creation of uncertainty among the
competitors, - so they have to guess what the actual strategy really is;
quickly filling up the gaps in the undeveloped segments by targeted
products or services; gaining access to the supply chain by add-on
products or services. All the actions should be sharp, fast and causing
confusion for the competitors.
3.1.2 Differentiation
It is considered to be the most effective way to apply indirect approach by
means of differentiating the components of marketing mix. Differentiation
15
should be considered in such areas as customer service (including faster
delivery, after purchase follow-up, packaging, management training, etc.)
and intangibles as reliability, reputation, prestige and value. Even when
the competitors products may seem identical, differentiation in the areas
stated above will add up to the overall image of the product and the
company in general.
3.1.3 Concentration
Concentration is an important part of the marketing strategy, following up
the indirect approach and differentiation. Its success is determined by the
ability to distract competitor and seek out an opportunity in a developing
segment. But it is important to take into consideration that concentration
is effective only to extend one can successfully differentiate from the
competitors.
16
lasting relationships with customers through timely identifying and
fulfilling their needs and wants.
Constant investigation of opportunities, which can contribute to the longlasting goals, like, for example, new exporting situation, is a must. Timely
investigation of the opportunities may as well result in the identification of
the emerging niche on the market and lead to successful expansion.
(Paley, 2007 pp. 52-53)
In the marketing discipline, the Internet serves as a distribution
channel, communication medium and fertile ground for new products.
It has also lowered marketing costs and put tremendous downward
price pressure on products sold online (P. Kotler, 2005 p. 148)
Established and old-school marketing practices are not rejected with the
technological advancement, they are being adopted. Now they are being
used on a different scale, as globalization has brought a lot more space for
the activities.
Product
Price
Quality
List price
Features
Discounts
Options
Allowances
Style
Brand name
Payment
period
Packaging
Credit terms
Promotion
Advertising:
Channels:
-
Direct sales
force
Personal selling:
Distribution
Incentives
Dealers
Sales aids
Sizes
Samples
Services
Training
Warranties
Customer and
trade
Distribution
Sales promotion:
Returns
Demonstrations
Versatility
Contests
Uniqueness
Premiums
Utility
Coupons
Reliability
Manuals
Durability
Telemarketing
Patent
protection
Internet
Publicity
Market coverage:
-
Warehouse
locations
Inventory
control
systems
Physical
transport
17
Guarantees
Table 1: Creating strategies out of the marketing mix
Conclusion
Marketing strategies take their routes in military and differentiate into
direct, indirect, envelopment, bypass and guerrilla attacks. Having those
five basic military principles in head, it is possible to combine them into an
actionable plan. For example, indirect approach implies using an element
of surprise towards the competitors confusing them with the taken actions
while targeting the low-competitive or emerging segments of the market.
Strategy of differentiation infers excelling the competitor increasing
reliability, prestige and value. Concentration is about distracting a
competitor to seek out an opportunity in undeveloped segment. When
determining a strategy marketing mix elements should be taken into
consideration product, price, place and promotion. Analysis of those
basic components helps to determine a distinctive advantage over the
competitor.
18
19
Initiate plan
Develop
database
Prototype and
test
Build groundwork
Design and
program
Launch
Launch project
Prepare content
Monitor success
If the website is being planned not like everyone else has, but based on
the careful examination of the business and its target audience, the first
step has to be determining the goals. Identification process starts from
identifying current brand and PR problems and proceeds to setting targets
and milestones. A very important part of website planning process is the
conduction of the Internet marketing analysis, seeing usage statistics and
validating ROI1 results of the old website or the competitors ones. The
outcomes of the analysis will help to determine the specifics of the
demand on businesses products or services online.
After reviewing status of assets and current standards, a marketing
concept of the website should be created.
Marketing concept is a philosophy that an organization should try to
provide products that satisfy customers needs through a coordinated
set of activities that also allows the organization to achieve its goals.
Customer satisfaction is the major focus of the marketing concept. To
implement
the
marketing
concept,
an
organization
strives
to
20
Marketing concept is the key factor to determine the interaction tactics
between customer and the selling website, implying the conversion of a
random visitor to a potential customer. Therefore, scrupulous development
of the concept is crucial for high efficiency and high ROI of the website.
Taking into consideration the fact that Internet users do not perceive open,
touting advertisement positively, marketing concept implies unobtrusive
but understandable promotion, as a part of the content, design and overall
idea of the website. The main purpose of this unostentatious promotion is
to give a visitor a clear understanding of the object of advertisement in an
indirect way, without graphical or textual overloading.
Having the concept and the overall image of the website in mind, a
preliminary budget and timeline should be created before the launch of
the project. Again, an important part of the project launch is the definition
of the future ROI measurements. Main question here is how to classify and
measure the return on the invested money if the website is not an ecommerce type, no transactions will be conducted through the Internet,
and therefore gathering statistics about website efficiency is complicated.
Nevertheless, it is possible to estimate ROI by comparing the current
outcome of the website and its ability to fulfill the set goals with the future
results. Attention should be paid to the questions Have the sales
increased?, Is there any feedback from visitors? and, the most
important one Is the increase in traffic followed by the increase of sales?
One of the most important steps in improving your site's ranking in
Google search results is to ensure that it contains plenty of rich
information that includes relevant keywords, used appropriately, that
indicate the subject matter of your content. (Google, 2012)
The best example of good content is daily news. They should be updated
frequently, checked thoroughly and be timely. In addition, the text itself
should be written according to the KISS 1 principle short and simple. The
information should be classified and structured -descriptions are best
perceived in text, accompanied by illustrations if needed, and numbers are
more understandable in tables or graphs.
1 KISS keep it short and simple
21
Moreover, there are specific indicators used to evaluate the quality of the
content as perceived by the search engines, such as page headers
relevance, stop words, words density, outbound links, etc. Those indicators
will be described in more details in the Chapter 5 Tools and methods of
website analysis.
The
designing
and
programming
process
should
start
from
the
22
23
One of the things to look at is the history of the website. It starts from
careful choosing and obtaining the domain name. It is easy to check the
date and the time of the creation, as the general information about the
domain is public and easy obtainable through the Internet.
Though speed of the modern Internet allows not paying attention to the
overall weight of the webpage, or graphics in particular, anymore, it is
however still important to pay attention to the loading speed of the
website. For the estimation of the loading time I have used the Internet
connection provided on Vinarska Halls of Residence by 99 Voice and Data
Services1; the Aneta system website2 claims the speed of Internet to vary
with 100Mbit at most.
The other easy obtainable online indicator is the website ranking among
the other portals in the search results. For example, Google PR is one of
the algorithms of page ranking. Every page is being assigned a numbered
indicator, showing the importance of the webpage in comparison to
others. The more links from other authoritative resources the website
has, the better, the higher the PR ranking is. The number of the assigned
ranking can vary from 0 to 10, but the exact meaning and the algorithms
of the calculation is not spread by Google.
But not all of the pages of the website may be taken to the search engine
index due to various, sometimes not stated, reasons. Therefore, the
amount of indexed pages indicator shows how many pages are taken into
account by Google bots. It does not reveal as much information as other
indicators, but just might indicate the problem with search engine filtering
pages with not unique content, for example.
Links and referrals are also connected to the trustworthy of the website
the more links from big and frequently updated portals with unique
information, the better. This includes referrals from social media websites,
such as Facebook, Twitter, LinkedIn, Google+, and LiveJournal. If the
1
Information
about
the
provider
was
obtained
http://www.speedtest.net/
2 https://www.pks.muni.cz/pripojeni.php#english
on
the
website
24
information on the website goes viral, it is possible to spot it through a
rapid increase of external links and referrals.
4.2.3 Statistics
When creating a website, one can request a creation of the custom
content management system or chose the most suitable for the purposes
of the website available online systems, like WordPress, Drupal or Joomla.
Popular and user-friendly systems usually provide the owner of the website
with statistics that helps to evaluate performance.
In the case an owner wants to use the external system for analysis, he or
she can turn to online services such as Google Analytics. Google Analytics
is a service provided by Google Inc. to help website owners to measuring
sales and conversions, to track how visitors see and use the website, or to
see where did they come from and what they are searching for. Due to the
powerful reporting system, Google Analytics gives a webmaster the ability
to view information in the default mode or customized reports to get only
the information the webmaster needs.
The reporting system gives an insight of which parts of the website are
performing well and achieving the set goals, for providing the best
experience for the visitors. The new feature that was introduced recently
allows tracking success of social media promotion as well, through
monitoring the behavior of the visitors with social networks sharing
buttons. So, as it is clearly seen, Google Analytics can provide some
valuable insights to the performance of the website and revealing its
potential.
Conclusion
First step to the online promotion is building a successful website which is
easy to use, which meets visitors expectations and communicates
visually. To do that nine basic steps should be taken: planning, conducting
groundwork, launching the project, developing databases, designing and
programming, creating content, testing prototype, launching the website
and monitoring success. Every visitor is assessing the website according to
25
his or her expectations and the overall satisfaction is determined by five
basic
elements:
appearance,
content,
functionality,
usability
and
optimization. Users of the website are not the only one assessing its
performance, there are also rankings provided by search engines based on
the previously determined trustworthy of the website. To statistically
analyze performance of the website one can use already built it the
content management system statistics or refer to the outer services like
Google Analytics.
26
the
Internet
marketing
strategies
of
international
retailer
PART II
26
6 Websites assessment
Profiling of the international retailor companies sample is due to the just
mentioned limitations restricted to the publically available and obtainable
information1. Nevertheless, it gives an opportunity to have an insight on
the general characteristics of the websites.
Acer
10.00
Asus
Dell
8.00
HP
6.00
Lenovo
4.00
Toshiba
2.00
0.00
27
As it is seen on the graphic, Hewlett-Packard is leading in the amount of
personal computer shipment if the first quarter of 2013, closely followed
by Lenovo. The middle place in the amount of shipment is taken by Dell
and Acer, both facing slight decline in the shipments. And the last place is
shared by Toshiba and Asus, slowly increasing their sales.
websites
was
conducted.
For
easier
comprehension
and
comparison, all the obtained information was merged in the table below.
The first glance assessment was done in five steps; each of the
characteristics was assigned a numerical meaning composing 20% at
most.
To assess the appearance of the given websites, attention has been paid
to the conformity of the colors used in the design (distracting or
annoying); to the clarity of the text, presence and variability of illustrative
graphics and simplicity of the page overload.
The main indicators of good content are clarity, simplicity and up-todatedness. As it has been already stated in the previous chapters, content
should not be overloaded with keywords, links or anything else distracting
from the perception of the relevant information. The shorter, more
organized, more updated and more user-friendly content, the more points
were granted.
Maximum points for the functionality were given to fast and error-free
websites, across hyperlinks, contact forms and website internal search.
High scores for usability were assigned in case a website is simple,
consistent and prominent. Meaning not much time is required for getting
to the desired information fast scrolling, descriptive links, and sufficient
local navigation. It is also important that the website is consistent in all the
modern browsers and has a mobile or pad light version.
28
Website gained search engine optimization high scores if it had plenty of
content written in HTML format, used descriptive links and successfully
passed a markup validation test provided by W3C1.
29
Ac
er
Appl Asu
e
s
Del
l
HP
Leno
vo
Son
y
Toshi
ba
First glance
Pleasant
colors
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Text
clarity
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Illustrativ
e graphics
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Total, %
20
20
20
20
20
20
20
20
Clarity
and
organizati
on
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Up-todatedness
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Keyword
overloade
d
No
No
No
No
No
No
No
No
Total, %
20
20
20
20
20
20
20
20
Functional
ity
Error-free
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Total, %
20
20
20
20
20
20
20
20
Usability
Convenie
nt
navigatio
n
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Mobile
version
No
No
No
Yes
No
Yes
No
No
Total, %
10
10
10
20
10
20
10
W3C,
errors
88
86
908
24
60
191
81
Descr.
links
Yes
No
Yes
No
Yes
No
No
No
Total, %
14
10
15
20
84
80
85
80
90
87
70
65
2.8s
1.69
2.28s
Appearan
ce
Content
SEO
Total, %
Obtainable indicators
Loading time
1.58
1.19s
1.47
2.53
2.0
30
s
5s
7/10
9/10
7/10
8/10
9/1
0
7/10
7/10
6/10
Webpages in index
8
530
142k
432k
1390
k
405
k
4 930k
2070
0
20k
consistent,
trustworthy,
time-saving,
useless,
comprehensible,
31
itself. The survey supports the assumption that the perception of the
website can influence the purchasing decision of a potential client.
As illustrated on the figure below, respondents consider a website to be an
influential factor, what makes it a very important part of the marketing
online. 28% of the respondents said that visiting the website will influence
their decision for sure and 40% replied that it will most surely influence it.
No, not at all
Probably not
I don't know
Probably yes
Yes, surely
8%
28%
12%
12%
40%
32
No, not at all
Probably not
26%
I don't know
Probably yes
Yes, surely
11%
11%
22%
30%
Figure 6: "Does your perception of the website correspond to your perception of the
brand?"
So, after figuring out the general tendency, there is one more important
thing to pay attention to. In the questionnaire, the respondents were given
an option to fill in their own opinion on the given website, if the bank of
words was not enough to describe their perception. Omitting the response
Never used it, given by one of the respondents to every single offered
website, some of the comments were revealing the attitude very good.
33
Accessible
User-friendly
Advanced
Useless
Appealing
20
Usable
Business-like
Trustworthy
Clean
10
Time-saving
Clear
Time-consuming
Comprehensive
Slow
Consistent
Simple
Convenient
Organized
Ordinary
Acer
Apple
Asus
Dell
HP
Lenovo
Sony
Toshiba
Distracting
Messy
Frustrating
High quality
Effective
The
colors
and
the
34
confusing
outline
make
it
seem
really
35
Votes on the Lenovo website have split between distracting, ordinary and
usable features. The main reason of confusion was highlighted in the
comments:
Good comparison of models, but no images of products (to see how
they look)
Sony website is considered to be well organized and called by the
respondents to be one of the best-looking websites:
Pertinent information and links made easily available, visually
pleasing and an accessible interface
Sony not only earned praise for the pleasant and convenient usability, but
also for giving the ability to compare different products:
Has photos of products from different sides and different color
variations.
The most confusing website for the respondents was one of Toshiba.
None of the provided characteristics gained the majority of the votes,
allowing getting the main idea of what respondents thought of it.
Meh. Its all over the place. Doesn't exactly scream High End
Computer Manufacturer. I'd skip this one.
This is the perfect illustration of the websites negative influence on the
respondent to the extent of unwillingness to evaluate it. None of the
comments left by the visitors were positive, indicating that the overall
impression of the website was negative. Another testimony to illustrate it:
Inconsistent, when choosing product category (e.g. laptop) moves to
other web-page http://www.toshibadirect.com/. This is inconvenient if
one would like to check products in different divisions (e.g. home,
business products, etc.)
The overall conclusion about the results of the poll can be stated as
follows. It is a well-known fact, that the brand is one of the most important
things a company should invest in. It works approximately the same as
income from the deposit account in the bank, with the only difference that
a return from the investment comes in the form of positive long-term
36
attitude of the customers. And if to take into consideration, that brand is
having a big influence on the purchasing behavior of the potential client,
trust to the brand is very important.
The result of the survey have given a short insight on the behavior of the
website visitors, that can be summarized, as positive impact of the
website influences not only the one-time purchase decision in most of
cases, but also the overall image of the companys brand.
Conclusion
Websites of the top 8 personal computers producers were taken for the
investigation. Due to the lack of information, investigation was conducted
in two major steps: personal evaluation according to the criteria discussed
in theoretical part and survey conducted among the potential users of
those websites. Respondents ranged from 18 to 25 years old, both sexes,
majority of international students studying abroad. The main conclusion
made according to the results of the survey stated that a website is an
influential factor that can potentially change the purchase decision upon
visiting.
37
7 Blogs assessment
According to the research of Technorati Media, consumers consider
product description and blogs to be the top factors in influencing their
purchase decision. In fact, the result of the research concludes that blogs
overviews tend to mean more for the potential customers, that word of
mouth from a friend. 28% of more than 1200 respondents consider a
positive review in a blog to be the deciding factor, leaving friends
recommendation on the second place with 17% of votes. (2013)
It suggests that customers tend to trust online testimonies of bloggers
who have used the product more, than to the information on the official
websites. It put blogs to the very influential position and therefore, I offer
focus and statistically analyze the blog, as the medium of the modern
internet.
7.1 Overview
For the purpose of investigation, I have selected a website Living in Brno |
Where to go in Brno, clubs, pubs, restaurants, and any other places that
you should take a look at it. It is a non-commercial English language blog
with a sufficient potential, describing places foreign students can visit in
Brno.
It is a popular website among the students of Vinarska Halls of Residence,
giving an exhaustive overview of the places of interest in Brno, currently
promoted mainly through the Facebook social network. The updates are
posted regularly, including not only the overview of the places, but also
the description of the events.
The owner of the website, Jomar Bustamante, has kindly given me a
permission to look into the websites statistics to evaluate its performance
and suggest online marketing strategy, if possible.
38
Information
obtained
from
http://www.webpagetest.org/result/130417_X3_RJV/
2
http://www.google.ru/search?q=site
%3Alivingbrno.wordpress.com&filter=0&ie=UTF-8&oe=UTF-8
39
management system. The navigation is clear and convenient, with the
sufficient mobile version of the blog.
7.2 Statistics
600
500
400
300
200
100
0
September October November December
January
February
March
April
features
of
target
audience,
that
should
be
taken
into
40
70
60
50
40
30
20
10
0
September October November December
January
February
March
April
41
For the given website, the location map shows the most activity for Czech
Republic 1 359 visits. That result is followed by Norway, Spain, United
Kingdom, Hungary, Poland, Portugal, Germany and Greece. The chart
illustrates the share of each country in particular, excluding Czech
Republic, to make the illustration more comprehensive. Multinational
audience is also one of the distinctive features of the website putting
political and interracial restriction on its content.
100
90
80
70
60
50
40
30
20
10
0
7.3 Marketing
Statistical overview gives an opportunity to assess the performance of the
website and its impact on overall business result. In the case with the blog
I am reviewing, the impact on the business activities can be only
hypothetical and formed as a prognosis for the future monetization, as the
website is non-profit.
For the current moment, the blog is following the marketing strategy of
differentiation, offering a differentiation in reviewing the places to visit in
more precise matter and according to the needs of the target audience. If
to take into consideration the main competitors of the blog, as Brno Now
and Czechmate Diary, the differentiation is easily spotted.
42
Brno Now website has more trust from the Google search engine,
illustrated by 5/10 page rank indicator. Having 1520 indexed pages and
uptime since November 30, 2010, high page rank indicator can be
explained by frequent updates of content and longer website availability
online. Nevertheless, major difference between Brno Now and Living in
Brno is the content and targeted audience.
Czechmate Diary appeared online on May 11, 2005 and has earned 4/10
PR trust indicator, having 2260 pages indexed. The interesting feature of
this resource is that it is updated on both, Czech and English languages,
and is supported by a Czech living in United States. Czechmate Diary is
an indirect competitor of Living in Brno.
So far, the only marketing activity applied to the Living in Brno was the
promotion through the social networking, Facebook in particular. It has
engaged 437 subscribers with the low involvement ratio. By the
involvement ratio the active participation in discussions and offered
activities is understood.
The next sub-chapter is devoted solely to the creation of the future
marketing strategy and list of recommended activities to enhance the
performance of the investigated blog.
43
attention of potential clients. On the example of the blog, I would like to
create a plan for online promotion and illustrate the flow of the activities
with the Gantt chart.
The first step to take is to define goals of the website. In the case of the
blog, the ultimate goals are to become the primary source of information
about Brno and activities in Brno for students and international visitors,
through the increase of target audience flow and increase of popularity
of the website. As for the long-term goal, it is to obtain the sufficient
amount of audience for monetization the traffic through paid reviews or
context advertising. But for now, the blog is non-profit and the main
target is the primary source of information.
When the goals are formulated, the next step would be to find out the
semantic core of the website. This means finding most suitable keywords
and search queries. It is very important to understand the target audience
at this point, its interests, age and gender, to view the website from the
point of view of view of the visitor. For example, a target audience for the
Living in Brno blog is international student and visiting foreigners at the
age from 18 to 25, males and females.
Taking it as a starting point, it is possible to figure out the current most
common search queries1 for the blog, as places to get food delivered or
food delivery. It is important to pick the key phrases with medium or low
competition to have more chances to appear on the first pages of search
results. In this case, the most suitable key phrases to target would be:
takeout food places, theme pubs, film clubs, clubs in Brno. To
expand the area of the influence, I would also suggest targeting:
exchange students, clubs in Brno, restaurants in Brno and pubs in
Brno.
When the semantic core of the website is ready, it is useful to take a look
on the competitors, assess their websites and promotion strategy, position
and tendencies. The indirect competitors of Living in Brno blog are Brno
Now and Chechmate Diary. Direct competitors in the niche of
1
Information
taken
https://adwords.google.com/
from
AdWords
service:
44
informative blog for international students, reviewing places of interest are
not present. Therefore, the correction of the previous set goals and chosen
search queries is not needed.
At this point the analysis of the website usually takes place, but I have
conducted an analysis in the previous sub-chapter. It is important to get
rid of all the mistakes found out with the help of W3C markup validation,
increase the amount of the pages indexed by search engine and also
increase the involvement of the visitors on the website.
To index the fallen out pages in the search engine an owner must submit a
sitemap to the Google directory. Any pages that are not indexed yet will be
included to the search engine, as stated in the Google support
documentation. The sitemap is also useful in helping determining which
web pages are important and it is essential not to prevent Google bots
from indexing the website with robots.txt file or meta tags.
For the involvement of the visitors on the website, I offer to create a form
for the visitors to be able to submit places they think should be reviewed,
options to rate already reviewed places and a chart of most popular places
among students, based on visitors voting. In addition to that, I would also
recommend paying more attention to the uniqueness of the review articles
content ideally it should be 95.5% authentic. All together these
measures will increase the trust of the search engines to the website and
regular posting of the fresh information will encourage web-crawlers visit
and index the blog more often.
It is important to devote time to the online marketing of the website.
Optimizing the website once and leaving it as it is will not get sufficient
results in the long-run. To follow the strategy of differentiation for the
given blog, one has to constantly improve the experience a visitor is
getting from the website, introduce new features, and upgrade the old
ones. It is useful to involve the visitors to help building the blog they like
by asking their opinion and responding to their requests.
Promotion of the website online is not limited by just following the
indicators and responding to their change, it may be, as well, a well-placed
45
link, bringing lots of potential customers or grateful readers. For example,
asking a fellow-blogger for a positive review is a very good beginning of
gaining visitors that would want to come back later. Or discussing a matter
on the forum, or involving people from social networks, as marketing in
the modern Internet is a process of the communication.
7.4.1 Gantt chart
To graphically illustrate the plan of Living in Brno website improvement
from the current condition to the defined by goals amount of popularity,
refer to the Gantt chart below.
As the first step to be taken is the definition of goals, it is planned on the
upcoming month. The thorough assessment of the competition should
start at the same time as goals definition, as according to the theory of
differentiation, one should take into consideration and surpass the
advantages of competitors. Analysis of the website overlaps the creation
of the sitemap. As it was pointed out in the analysis of general indicators,
to increase the amount of pages in the search engine index, the owner
should submit a sitemap of the website. It is an important step to increase
trust to the website from a search engine.
Define goals
Assess competition
Analyze website
Create sitemap
Update content
Encourage
involvement
Monitor success
Task / Time
May
June
July
August
Septem
ber
46
Content update is scheduled on the time with the estimated least activity
of visitors. As have been stated before, the target audience has its
features that need to be paid attention to, for example, as international
students visitors would be least interested in the website during summer
holidays. Along with the content updates comes encouragement of visitors
to take part in the development of the website by suggesting places for a
review,
rating
and
interacting
on
the
page.
In
August
Conclusion
Living in Brno blog was taken for the overview of website analysis
process. Alongside with monitoring visitors of the blog, general obtainable
indicators were taken into consideration. Analysis has revealed that
interest to the website is totally dependent upon the holidays schedule, as
main visitors are international students. Overview gave an opportunity to
create a list of recommendations for the improvement of the blog,
illustrated by the Gantt chart spreading the tasks for the next five month.
47
8 Recommendations
for
the
companies
expanding online
In the previous chapters it has been discussed how to build a successful
website, how to analyze it from the visitors point of view and a short
overlook was given on how to promote a website on the example of a blog.
This chapter is devoted to the outlining the recommendation for the
retailor companies expanding online, pointing on the specifics of ecommerce websites.
48
when purchasing a product and how a retailor can protect his customer. All
the terms and conditions on the return of the product should be stated in a
clear and comprehensive way as well.
Good service is not the only thing that will make customers return to the
website. It is important to keep the visitor updated and encourage him or
her to return with appreciation systems. As for the retailor website, it can
be reward points, discounts or pleasant small presents. One additional
brick in building successful long-term relationship with visitors of the
website is keeping them updates on new events on the website or sales
proposals through weekly or monthly newsletters.
49
money spent on creation, filling with the content and promotion are spent
meaningless.
Returns from the website can be perceived either as a profit or as an
economy, in any way it is participating in the overall performance of the
company. It is useful to keep track on the returns from the commercial
website to adequately estimate the effort put in the website. A formula of
Return on Investment (ROI) can be used for the estimation of website
returns.
Gain
(investment Cost of investment )
ROI=
Cost of investment
Where return from investment is consisting from the determined amount
of direct sales from the website, potential brought by the new partnership
or future contribution of perspective employee. And cost of investment
includes amount of money spent on the development and launch of the
website and its promotion. It is important to remember that a website is
bearing monthly technical maintenance and update and promotion costs.
It is obvious that the website is bringing profit when the monthly income
from it is higher than the cost of maintenance, the difference can be called
website net income. This ratio should be very carefully considered,
taking into consideration that costs of promotion and updating are
bringing new visitors, thus, potential clients. Therefore, it is necessary to
balance between optimal amount of investments and optimal amount of
visitors.
Conclusion
Based on the previous chapters where analysis of visitors attitude towards
the international retailors websites and analysis of the blog, as the major
force forming opinion in the Internet were investigates, a list of
recommendations for the companies expanding online was created.
Recommendations include a practical guide for enhancing design and
usability
of
the
website,
managing
sales
and
delivery,
providing
50
information for partners and visitors, branding and calculating return on
investments.
Conclusion
Introduction of the Internet has changed the way people communicate and
conduct business due to globalization. Modern companies understand the
advantages brought by online market and are willing to expand online.
Creation of online representation or website has become an ordinary
practice, and the amount of the websites is increasing every minute. It
raises the question of marketing on the Internet, its strategies and
methods of implementation.
In the thesis, website had been investigated as the core tool of online
marketing, as a customer oriented platform used for providing no-pressure
sales environment and a thoughtful choice making process. To determine
the return from the website, be it increase in visitors, brand strengthening
or direct sales boost, a website should undergo a thorough assessment,
methods of which were also previously discussed in the thesis.
Nevertheless, the primary objective was to analyze the Internet marketing
strategies of international retailor companies and to investigate modern
trends of Internet marketing, which was impossible to perform due to the
limitations of studies. The risk of international retailor companies
unwillingness of revealing the information about their performance online
actually became true. This allowed only partial fulfillment of the primary
thesis objective, as the analysis of Internet marketing strategies of
international retailor companies was substituted by the analysis of users
perception of the website as the core item of the marketing strategy.
Secondary objective, that was to develop a comprehensive list of
recommendations for the companies expanding online, was fulfilled with
design and usability, sales and delivery, information and branding and
return on investments comprehensive suggestions.
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List of figures
Figure 1: "Core marketing concepts"- 4 Figure 2: "Maslow's Hierarchy of Needs".................................................- 5 Figure 3: "Process: Online Branding Site"..............................................- 17 Figure 4: "Global market share held by leading PC vendors".................- 26 Figure 5: "May visiting retailor' website influence your purchase decision?" 30 Figure 6: "Does your perception of the website correspond to your
perception of the brand?"......................................................................- 31 Figure 7: "Comparison of the websites' characteristics"........................- 32 Figure 8:"Living in Brno"........................................................................- 37 Figure 9: "Visitors per month"................................................................- 38 Figure 10: "Average visitors per day"....................................................- 39 Figure 11: "Location map".....................................................................- 39 Figure 12: "Location share"....................................................................- 40 Figure 13: "Brno Now"............................................................................- 41 Figure 14: "Czechmate Diary"................................................................- 41 -
List of tables
Table 1: Creating strategies out of the marketing mix...........................- 15 Table 2: "Sample profile".......................................................................- 29 Table 3: "Gantt chart"............................................................................- 44 -
http://support.google.com/webmasters/bin/answer.py?
hl=en&answer=156184&from=40318&rd=1
2 http://www.investopedia.com/terms/r/returnoninvestment.asp
Appendix
Questions to measure the satisfaction with the websites1:
Respondents were asked to visit websites one-at-a-time and choose the
most appropriate, according to their own opinion, adjective to
characterize the website. There were 24 adjectives listed, more than
one were available to be chosen. List of the adjectives was shuffled for
every question to avoid clicking through responses. The list was as
follows:
High-quality, business-like, messy, distracting, convenient, accessible,
slow, consistent, trustworthy, time-saving, useless, comprehensible,
organized, appealing, clean, clear, time-consuming, simple, frustrating,
advanced, ordinary, effective and user-friendly.
The questions asked were as follows:
1.
2.
3.
4.
5.
6.
7.
8.
9.
What
What
What
What
What
What
What
What
Does
influence
your
purchase
The
original
used
questionnaire
http://www.surveymonkey.com/s/HHHWLV5
can
be
found
here: