Page 242 - Electronic Commerce

Marketing on the Web

10. In a paragraph or two, define conversion cost and explain briefly why companies need to
calculate it.
11. Write a paragraph in which you briefly outline the reasons for the decline in the use of ban-
ner adverting online.
12. In about 100 words, summarize the difficulties companies encounter when they attempt to
measure the effectiveness of their online advertising campaigns. 217
13. In a paragraph or two, present the basic ideas that underlie permission marketing.
14. In about 100 words, explain what online businesses can learn from data mining (or analyti-
cal processing) activities.
15. In about 100 words, define and distinguish between emotional and rational branding.
16. In a paragraph or two, define search engine positioning and explain how companies use it.

Exercises

1. Assume you are the marketing director for PerfectSeasons, a new line of cookware
designed by a famous celebrity chef. In about 200 words, describe how you would use the
chef’s reputation to accomplish the differentiation elements of this new product line’s brand.
2. Visit Harry and David Gourmet Gifts to examine how that company implements occasion
segmentation with its individual products and its monthly club services. Write a report in
which you describe two clear examples of occasion segmentation on the site. Also identify
two examples of product segmentation on the site and explain how the company uses its
Web site design to channel customers into the segmentation path that is most appropriate
for them. Your report should be about 300 words.
3. Assume you are a consultant to TopSpin, a tennis equipment manufacturer that sells its
products directly to customers on the Web. TopSpin is considering the use of YouTube
videos to promote its products. Some of the salespeople have suggested that the videos
include detailed reviews of the company’s products and endorsements by top tennis
players. Other marketing staff have suggested including instructional tips and videos of the
equipment being used at famous resorts. Write a 100-word report that outlines the kind of
content that you believe TopSpin should include in the videos.
4. You have been employed by ESPN to sell space on its Web site to advertisers. Create a
memo of approximately 200 words in which you describe the advantages of advertising on
ESPN in a form that the ESPN sales team can use as a resource when they are making
presentations to potential advertisers for space on the main page. ESPN has a permission-
based e-mail marketing system that you can include as part of an advertising package you
sell to advertisers. Be sure to include the benefits to advertisers provided by this e-mail
marketing system in your memo.
Note: Your instructor might assign you to a group to complete this exercise, and might ask you
to prepare a formal sales presentation based on your memo to your class.

5. Marti Baron operates The Cannonball, an online store that sells parts, repair kits, books,
and accessories to hobbyists who restore antique model trains. Many model train hobbyists

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