4 Marketing on the Web

marketing mix

The combination of elements that companies use to achieve their goals for selling and promoting their products and services.

marketing strategy

A particular marketing mix that is used to promote a company or product.

four Ps of marketing

The essential issues of marketing: product, price, promotion, and place.

Product

The physical item or service that a company is selling.

brand

Customers’ perceptions of the attributes of a product or service, including name, history, and reputation.

price

The amount a customer pays for a product.

customer value

The cost that a customer pays for a product, minus the benefits the customer gains from the product.

Promotion

Any means of spreading the word about a product.

place

The need to have products or services available in many different locations.

distribution

The need to have products or services available in many different locations.

product-based marketing strategy

A logical way to think of a business because companies spend a great deal of effort, time, and money to design and create those products and services.

customer-based marketing strategy

An approach to Web site design that accommodates the differing needs of various types of customers.

demographic

A group of customers who share common characteristics.

Web log (Blog)

A Web site on which people post their thoughts and invite others to add commentary. Synonymous with blog.

Social media

Web sites that allow participants to exchange ideas and report news and information updates to each other.

market segmentation

The identification by advertisers of specific subsets of their markets that have common characteristics.

segments

Also called a market segment; a subset of a company’s potential customer pool that has common demographic characteristics.

micromarketing

The practice of targeting very small and well-defined market segments.

geographic segmentation

The grouping of customers by location of home or workplace.

demographic segmentation

The grouping of customers by characteristics such as age, gender, family size, income, education, religion, or ethnicity.

psychographic segmentation

The grouping of customers by variables such as social class, personality, or their approach to life.

one-to-one marketing

A highly customized approach to offering products and services that match the needs of a particular customer.

behavioral segmentation

The creation of a separate experience for customers based on their behavior.

occasion segmentation

occasion segmentation

usage-based market segmentation

Customizing visitor experiences to match the site usage behavior patterns of each visitor or type of visitor.

trigger words

A key word used to jog the memory of visitors and remind them of something they want to buy on the site.

shopping cart

An electronic commerce utility that keeps track of items selected for purchase and automates the purchasing process.

touchpoints

Online and offline customer contact points.

touchpoint consistency

The provision of similar levels and quality of service in all of a company’s interactions with its customers, whether those interactions occur in person, on the telephone, or online.

customer life cycle

The five stages of customer loyalty.

life-cycle segmentation

The use of customer life cycle stages to identify groups of customers that are in each stage.

funnel model of customer acquisition

A method of evaluating specific marketing strategy elements.

acquisition cost

The total amount of money that a site spends, on average, to draw one visitor to the site.

conversion

The transition of a first-time visitor to a customer.

conversion cost

The total amount of money that a site spends, on average, to induce one visitor to make a purchase, sign up for a subscription, or (on an advertising-supported site) register.

retained customers

A customer who returns to a site one or more times after making his or her first purchase.

retention costs

The costs of inducing customers to return to a Web site and buy again.

display ad

A small rectangular object on a Web page that displays a stationary or moving graphic and includes a hyperlink to the advertiser’s Web site.

banner ad

A small rectangular object on a Web page that displays a stationary or moving graphic and includes a hyperlink to the advertiser’s Web site.

interactive marketing unit (IMU) ad formats

The standard banner sizes that most Web sites have voluntarily agreed to use.

universal ad package (UAP)

The four most common standard Web ad formats.

leaderboard ad

Web site banner ad that is designed to span the top or bottom of a Web page.

skyscraper ad

A large banner ad on the side of a Web page that remains visible as the user scrolls down through the page.

rectangle ad

A banner ad rectangle in shape.

ad exchange network

A network that coordinates ad sharing so that other sites run one company’s ad while that company’s site runs other exchange members’ ads.

display advertising network

A broker between advertisers and Web sites that carry ads.

animated GIFs

Animated Web ad graphics that grab a visitor’s attention.

pop-up ad

An ad that appears in its own window when the user opens or closes a Web page.

ad-blocking software

A program that prevents banner ads and pop-up ads from loading.

interstitial ad

An intrusive Web ad that opens in its own browser window, instead of the page that the user intended to load.

Rich media ads

The ads that generate graphical activity that “floats” over the Web page itself instead of opening in a separate window.

video ads

The video ads that can be either free standing or integrated into videos that the site visitor selects to watch.

pre-roll video ad

A form of rich media ads is used on Web sites that deliver video.

text ad

A short promotional message that does not use any graphic elements and is usually placed along the top or right side of a Web page.

funnel model of customer acquisition

A method of evaluating specific marketing strategy elements.

acquisition cost

The total amount of money that a site spends, on average, to draw one visitor to the site.

conversion cost

The total amount of money that a site spends, on average, to induce one visitor to make a purchase, sign up for a subscription, or (on an advertising-supported site) register.

retained customers

A customer who returns to a site one or more times after making his or her first purchase.

retention costs

The costs of inducing customers to return to a Web site and buy again.