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Internet Marketing: Promoting Your Business Online
Pan Western e-Business Initiative
Recent studies indicate that 62% of Western Canadian small businesses are marketing their products and services online using Internet tools such as websites, search engine optimization, banner advertising and email marketing. Internet marketing can be a time and cost saving supplement to your overall marketing processes.
Imagine you are a home-based business owner, living and operating on the Sunshine Coast of British Columbia, yet you are able to tap into a global marketplace without ever leaving your living-room. Imagine reaching a wider audience with your product or service, quickly measuring the results of your marketing efforts, and having the ability to readily and cost-effectively adapt to changes in the marketplace, all with the click of a mouse.
The influence of the Internet on the business of marketing is growing significantly each year, as more small businesses go online, and Internet sales revenues in 2005 are likely to surpass USD $133 billion, worldwide.
In This Guide
- What is Internet Marketing?
- Three Steps to Success
- Aspects of Internet Marketing
- Getting Started: Developing a Plan
- The Importance of Measurement
- More Resources
What is Internet Marketing?
Internet marketing is a component of marketing, which refers to activities where there is communication of a business’ unique value proposition -– that is, the unique collection of benefits attributed to a product or service which create value for the customer or client -- with a goal of increasing revenue. That is to say, that everything you do to promote your business to your target market, partners etc. is marketing. For example, your company’s mission statement and branding are aspects of marketing, as are your advertising strategies and your product descriptions.
Internet marketing refers to the strategies that are used to promote a product or service over the Internet. These strategies include (but are not limited to) web site design and content, search engine optimization, directory submissions, reciprocal linking strategies, online advertising techniques, and email marketing.
The Benefits of Internet Marketing
The time and cost saving benefits of using the Internet to market your product or service are significant. Here are some examples:
- The Internet is the widest channel of communication available to a small business, and is unique in that it can level the playing field for small businesses on limited budgets seeking to compete in larger markets. No other communication medium would allow you to operate a business out of your basement, yet have it appear to the world as though you were a much larger operation, with a number of employees.
- Marketing your product or service online offers the opportunity for increased communication with your target market through techniques such as interactive websites, email newsletters, online surveys and forms, and forums, blogs or discussion groups. The Internet allows you to collect immediate feedback from your client base with little out of pocket expense.
- Print marketing materials and advertising strategies can be expensive to produce and traditionally have a short shelf-life. Internet marketing techniques such as websites, banner ads and email newsletters, can be produced at a reasonable cost, can contain more timely information than print brochures can hold, and can be immediately and cost-effectively updated as your business changes.
Nonetheless, finding success online is no different from finding it offline – in fact, the two work most effectively, together. Choosing the right product or service, and designing an appropriate on and offline marketing mix is the key to successfully marketing your product or service on the Internet.
Three Steps to Sucess
Successful marketing on the Internet is not just about advertising your website in Google, or buying banner ads on other websites. Without a quality product or service, and a well developed website, a banner ad, for example, will do you little good. To succeed online, you must have developed a comprehensive plan that includes all of the following:
1. A solid business model: great product(s) or service(s)
2. An effectively designed website with sales as an objective
3. An online marketing strategy that suits your audience and meets your budget
Beware of get rich quick schemes!
The Internet is not the ‘pot of gold at the end of the rainbow’. It takes time, dedication and skills to be successful online. Without a solid business model, the skill-set to effectively market and sell your product or service, and a carefully planned marketing strategy, you will have little chance of succeeding online.
Aspects of Internet Marketing
No matter what your business, Internet marketing should make up part of your marketing mix -– how large a part will depend on your particular needs and budget. Which tools you use to develop your online presence and drive traffic to your website will also depend on your particular business and target market demographics.
Internet marketing is a fast-changing industry that readily adapts to improvements in technology. Therefore, there are always new marketing tools available to small businesses, and too many to list here. Below, we’ll briefly explain the most common techniques used by beginners. Once you’ve learned the basics, we suggest you consult a professional to assess your business needs and take you to the next level.
Website Development and Search Engine Optimization (SEO)
Designing and building a website is only one aspect of bringing your business online. With billions of websites on the Internet, it’s just as important that you ensure people can find your website. And, since most website traffic still comes from search engines and directories -– 98% of Internet users claim they use search engines regularly -- beginners should start with search engine optimization as a first step to Internet marketing.
Search engines such as Google and Yahoo index billions of web pages and rank them for Internet users according to complex algorithms which relate to a page’s accessibility, how relevant a page appears in relation to topical search terms or keywords, and how many other sites on the Internet deem a page important by linking to it.
Search engine optimization (SEO) refers to the work that is done to a website to ensure it gets noticed and ranked highly by search engines. Ideally, you want to strive for a top ten ranking, because studies have shown that most search engine users don’t scroll past the first page of results.
Keep in mind, SEO is not an exact science, and as such, SEO specialists often use slightly different methods. That said, generally, SEO includes:
- Building a website using ‘search engine friendly’ coding techniques which minimize the use of Flash and frames
- Researching appropriate search terms -- called, keywords or keyword phrases -- that fit the target market
- Incorporating keyword-rich content into a website’s domain name, metatags, titletags, alt tags, headings and overall content, and ensuring that content is updated regularly.
- Submitting the website address to search engines
- Developing a reciprocal linking strategy with other websites to grow quality inbound links to the site
Submitting your Site to Search Engines and Directories
The question is often asked: Do I have to submit my site to engines/directories for the search engines to find me? The answer is, yes and no; some engines will find and list your site on their own, some require you to register, and some offer a combination of both. Further, some registration procedures are free and some require that you to pay to be listed.
In short, there are two kinds of search engines out there.
1. Crawler based search engines, like Google, are those that use automated, computer generated indexing systems. These engines use software to ‘crawl’ your website, read relevant content, keywords and follow links. The software will look for patterns or repetition in your content in order to determine the website’s purpose. At minimum, these engines do not require you to do anything other than upload your well-optimized website to the Internet and wait for them to find it (provided your site has at least one inbound link from another site). Yet, since it may take a few months for the engines to crawl your site naturally, they also offer you the opportunity submit your URL (website address) in the hope of being ranked more quickly. Failing that, you can always purchase paid placement in some engines such as Google and Overture.
2. Human powered directories, like Yahoo’s Directory, are those that use humans to index website listings. These engines are actually called directories and require that you submit your URL, and wait for the directory editors to assess and index your site based on perceived relevancy. Sometimes this procedure is free, and sometimes you have to pay a fee for the privilege of being reviewed.
Here is a list of the most popular search engines and directories you’ll want to consider:
Growing Inbound Links
It should also be emphasized that the more quality inbound links your website has, the more likely it is to be deemed ‘important’ by the search engines. Therefore, a good SEO package includes the development of a quality linking strategy. This is a technique which connects your website to other chosen websites in and around your industry, through the placement of (usually inconspicuous) text-based links.
To begin, consider linking with complementary businesses and industry associations. This is as easy as sending out a personalized email requesting a link on a chosen website. Keep in mind, particularly for those just starting out, linking strategies are usually reciprocal. So, be prepared to offer a link on your own site in exchange for the link you hope to receive.
To learn more about SEO, linking strategies and submitting your site to search engines visit www.searchenginewatch.com.
Online Advertising Models
In addition to optimizing your website and driving traffic through search engines, consider advertising on third party websites and in search engines using a combination of banner advertisements and text links.
- Graphical banner advertisements, pop-ups and text based ads are online ads that are placed on third party websites, linking back to your website. The ads are designed to encourage users to click through to your site to learn more and ultimately, to buy. These ads can be set up for a fee -– pay-per-click, pay-per-lead, pay-per-sale -- or they can be part of a reciprocal ad exchange with an online ‘partner’, where you place your partner’s ad on your website in exchange for your partner doing the same.
- Paid advertising in search engines. Above, we mentioned briefly that some search engines offer marketers the opportunity to buy guaranteed search engine listings through the purchase of keywords. Google, for example, has a paid solution called Adwords -- think of it as pay-per-click advertising in its simplest form. Google allows advertisers to bid for 'sponsored links' -- paid listings across the top and down the right side of Google's search results -- on a per-bid basis. As an advertiser, you decide what keywords you want to 'bid' on, how much you are willing to pay per click back to your website and how much you are willing to pay in total per day –- USD $1? $10? More? Less? It’s completely up to you.
Paid search engine listings are a quick, cost-effective way to get your site into search engines, without the wait associated with ‘natural’ ranking.
Publishing on Third-Party Websites
Another, often overlooked, but cost-saving method of marketing your business online is by publishing editorial in third party ezines, enewsletters and on information-based websites. Just as editorial in offline media can help position you in your field as an expert, and drive readers online to your website, providing articles written (or ghost-written) by you to targeted online media can also drive traffic to your website, often with no out of pocket expense to you. Just remember to include a short biography that outlines what you do, and a link to your website at the bottom of each article you publish.
Permission Marketing using Email
Permission-based email marketing can be a low-cost and very effective supplement to a website marketing strategy. It can help to build a relationship between you (the business) and your target market, and can drive traffic back to your website. Email marketing can consist of direct email blasts and sales letters, personalized auto-responders and/or email newsletters.
If you have the budget and don’t have the time, you can certainly hire a freelancer or a firm to conceptualize, develop and publish your email messages for you. Although, for many small businesses, the costs associated with fully managed solutions are simply too high. The advantage to email marketing is that you can choose a do-it-yourself option, where you do all of the work, or part of it yourself, saving hundreds, even thousands of dollars.
Self-Publishing using Low-Cost Internet Tools
There are a number of very easy to use self-publishing solutions available to small businesses. The costs of these tools are low -– from USD $20 per month and up -- and they are usually offered at a monthly or per 1000 email rate.
The solutions are hosted entirely online, allowing you access from any Internet connected computer. Further, they are designed for small business owners with little technical knowledge. At minimum, they offer a database, where you can house and manage your email addresses, a selection of HTML templates for your email messages or the ability to import your own templates, plain-text options, testing functions, and added extras such as customizable auto-responders and forward-to-a-friend and unsubscribe links.
You may even find an email publishing tool designed specifically for your industry. For example, the real estate industry has a number of do-it-yourself and fully managed email newsletter solutions available, some of which even include ‘canned’ articles which the user can chose to include in his/her own newsletter.
Here are some popular self-publishing solutions to consider:
The Problem with SPAM
It must also be noted that, more and more, email marketers are struggling with SPAM filters, which are designed to protect email users from unscrupulous and unsolicited advertising. The problem arises when SPAM filters do such a good job, they succeed in filtering out legitimate marketing messages that email recipients have requested to receive.
Unfortunately, as SPAM proliferates, as it undoubtedly will, the filters will only become better, causing email marketers to scramble to devise new ways to get their messages out to the public.
Ensuring High Delivery Rates
The easiest way to ensure your emails will be delivered is to get permission from your client base to market to them through email. Getting permission is critical, particularly since new privacy legislation was introduced in 2004, which regulates how businesses collect, store and use their clients/customers personal information. This includes email addresses.
Getting permission may mean asking in advance if you can send emails for a specific purpose, and requesting that your email address be flagged as legitimate in the recipient’s list, to ensure your messages bypass any filters s/he may have installed.
It also seems that currently, graphic emails using HTML are becoming caught in SPAM filters more readily than plain-text emails. This may mean that a simple, plain-text email containing a link to an online message may be the most effective method for getting your message out.
Alternately, you can test your email messages for deliverability using software such as SpamCheck (http://spamcheck.sitesell.com) which checks your emails’ subject lines and body copy for filter triggers.
To learn more about email marketing visit www.emailsherpa.com.
Business Blogs
A blog or weblog is simply a web page that scrolls chronologically like a journal and contains links to other Web sites of interest.
Blogs, as creative online journals, have been used by technical specialists for a number of years, but business blogs, or b-blogs are just now making inroads into the mainstream. As an alternative, very low-cost (or even free) means of electronic communication, blogs can make up a significant part of an overall marketing strategy. Though b-blogs carry an inherent marketing focus not found in creative weblogs, their casual structure provides the opportunity to connect on a more immediate and personal level than traditional websites and newsletters allow.
And, as blogs are generally ‘do-it-yourself’ solutions, they can simplify and speed up the online publishing process, allowing users to disseminate information in the most timely manner available.
Here is a list of websites where you can learn more about blogging:
Affiliate/Referral Programs
Affiliate programs, also known as referral programs or partnership programs work by paying a commission for each transaction a website produces for a third party. Affiliate programs are generally offered by sites selling goods or services. These sites may offer a commission payment based on a percentage of the revenue generated by purchases made by visitors coming from a specific site. Or they may offer a flat fee per sale or lead each time a third party site brings them a customer.
Amazon.com has created one of the most sophisticated and successful affiliate programs on the Internet –- a program that has no doubt contributed to their high level of brand recognition online, and the significant traffic and resulting revenue their site generates.
Costs
Costs to implement Internet marketing strategies can vary widely in the industry. They’ll depend on the particular technique you choose, and the professional you choose to implement it. With a little reading, and a basic understanding of websites and the Internet, you may be able to implement some of these techniques on your own. Or, you may find a freelance marketer or web designer/developer who can implement some of the techniques mentioned above for $25 to $75 per hour, with approximately ten hours required to start.
Alternately, you may find Internet marketing firms who charge ‘project’ rates from $2500 up to $25 000. Therefore, it’s very important to shop around. Also, keep in mind that most Internet marketing techniques require ongoing maintenance, costs of which should be addressed in advance and added into your marketing budget.
The Importance of Offline Marketing to Drive Traffic Online
Never underestimate the value of using low-cost, offline marketing techniques to encourage people to visit your website to learn more about your product or service.
Ensure your website address is clearly listed on all of your marketing materials -– that is, your business card, brochure, published articles, print advertisements, sandwich boards, your vehicle, if you use it for business and so on. And, don’t be afraid to get creative with your offline marketing strategies. Imaginative promotional techniques can be low-cost, yet attention getting ways to drive traffic to your website.
Here are some examples of low-cost offline marketing techniques that can drive traffic to a website:
- A tree topping company uses a sandwich board on site which says: Arborists working above. Ever wonder how we top the trees without killing them… or you? Our methods are safe and environmentally friendly. Visit our website to learn more.
- A retail beachwear company offers a pair of brightly colored flip-flops free with each purchase over $100 during the month of December. The sole of the flip-flops are printed with the company name and website address.
- A baking company includes a coupon in each $30 tin of cookies for 10% off a future purchase and directs readers to their new online menu.
Getting Started: Developing a Plan
Marketing on the Internet doesn’t consist of cookie-cutter strategies that work for everyone. For that reason, planning is an essential step in being successful online. An Internet marketing plan will allow you to develop strategies that meet your needs and fit your budget, map your progress, measure your return on investment (ROI), and mitigate risk and adapt as required.
When developing your plan, you’ll want to consider the following important aspects:
Your buyers. Who are they? What activities do they do online?
Identifying your audience and their needs, allows you to determine how best you can reach them online, thereby getting the most for your marketing dollar.
Your budget. How much should you spend, and more importantly, how much do you have to spend? The amount you budget towards Internet marketing will depend on how integral the Internet is to your business success. Prioritize your needs based on your budget, projecting into the future, growing your plan as your anticipated revenue grows.
Your ability to support and maintain your endeavors. Consider only implementing strategies you can handle. It is possible to do more damage than good to your business if you implement techniques that you do not have the business processes or budget in place to support.
The Importance of Measurement
Any professional marketer will tell you that it’s not worth going to the effort of implementing an Internet marketing strategy (which is going to cost you time and money) without also implementing an effective technique to track your progress and determine what is working for your particular business. By tracking each strategy you implement, you will be able to measure your return on investment (ROI) and, from that, determine whether or not the strategy is effective.
What is ROI? Simply: you invest $500 into an online advertising campaign. The revenue you generate from that campaign is $1500. Your profit (sales minus expenses) or ROI is $1000 or 200%.
Here’s an easy way to track targeted campaigns: First, purchase a good statistics package to measure your website traffic. The statistics generated should tell you where your website visitors are coming from, where they are going, how long they are staying, and from which part of your site they are leaving. Then, use dedicated promotional codes for different campaigns that you test so that you can follow which campaigns are drawing customers to your site.
You may want to measure your progress weekly, monthly and yearly to better determine whether you are achieving your objectives and the targets you have set for your business.
Here are some popular website analytics and statistic packages to consider using:
For more information on measuring your marketing strategies visit www.marketingsherpa.com.
Internet Marketing Plan CHECKLIST
Your completed Internet marketing strategy should address:
What Internet marketing techniques you will use
How you will implement each technique
What kinds of resources you will require
How long you anticipate testing each technique
What you hope to achieve
How you will mitigate problems that may arise
How you will evaluate your progress and measure success
More Resources
Now that you’ve learned the basics behind Internet marketing, you’ll want more details about specific online techniques and some guidance to getting started with your own Internet marketing plan. Here are some online resources to help:
For a glossary of commonly used Internet marketing terms try:
Disclaimer:
This guide was developed by the Pan Western e-Business Initiative. The information presented in this document is intended as a guide only, and while thought to be accurate, is provided strictly "as is" and without warranty of any kind. The Pan-Western E-Business Team’s members, directors, agents, or contractors will not be liable to you for any damages, direct or indirect, or lost profits arising out of your use of information provided within this document, or information provided within the Pan-Western E-Business Team’s or members’ websites.
This material may be used, reproduced, stored or transmitted for non-commercial purposes, however, the Pan-Western E-Business Team’s copyright and domain name (www.e-west.ca) is to be acknowledged. You may not use, reproduce, store or transmit this material for commercial purposes without prior written consent from the Pan-Western E-Business Team.
© 2006 Pan-Western E-Business Team
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