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E-commerce and Internet Marketing Basics

E-commerce hosting services

Shopping cart software

Web page creation tools

Domain name services

E-mail accounts

Merchant accounts

E-commerce software applications

Technical support and server security.

Application Service Provider (ASP)

A complete Web hosting service is a solution that can offer you the use of numerous software applications, as well as all of the necessary hardware and software that your business needs to operate efficiently.

Leasing or renting the solution rather than owning it.

Push / Pull Technology

A customer who downloads a web page and views it through a browser is pulling the information to his or her computer.

The traditional pull method is enhanced by push technology that automatically pushes or delivers information-such as news headlines-to the customer's computer.

Using customer databases, you can customize the information and make it relevant.

Using Banner Ads to promote your site:

Banner exchange-Web site banners-often thousands of them-are rotated through other registered Web sites.

While no fee may be charged, each Web site must agree to display the other banners and advertising for the exchange service.

A good banner exchange will:

Target Marketing - you can specify exactly which types of web pages you want your ad displayed on

Eliminate Competition - you can specify which catagories of banners that you don't want displayed on your site.

Provide Statistics - tell the number of ads you have shown, how many impressions your ad has received and how often it was clicked on.

Other ways of using the internet to promote your site:

Search Engines and Directories - understand the technology and submit your site for listings

Trading Links - develop your own partnerships with non competing web sites, ask business partners to trade links

Newsletters - Online information delivered via e-mail on a regular basis to promote your site

Other Web Site Promotion Techniques

Blurbs - What' s your line, use it everywhere!

E-mail blurbs - a tagline added to every e-mail

Displaying the URL on all printed material and packaging.

Developing promotional items and handouts with your URL - coffee mugs, mouse pads (advertising specialties).

Don't forget marketing with traditional media:

Press releases for news papers, magazines and radio

Sponsoring community events, local team sports

Attending trade shows and exhibits.

Making Money from your site:

Above we desribed banner ads in terms of promoting your site. In the context here, we assume your site already has a following, or some traffic, and now you want to get paid for some of that traffic.

Pay-per-impression

Much like "traditional" media advertising, you supply the medium, and someone pays you to advertise on it based on your traffic. You, the webmaster, receive a commission each time a merchant's ad or link is displayed on your site, the visitor merely has to view the ad to earn you a commission.

Generally offers the lowest commissions, as compared to other types below. You are usually paid a negotiated fee per thousand "impressions" of an advertisement banner.

Pay-per-Click

You earn revenue from your web site by displaying banner ads for various online merchants and web sites. However, now you earn a specific amount (usually a few cents) "per click-through" you send to their site.

Revenue from these program dependent on two things: increasing the amount of traffic to your site, and improving click-through ratios by finding ads that fit your visitor's interests.

Pay-per-lead

Receive a commission for each sales lead for a product or service that you refer to a merchant's web site.

Merchant is mainly looking for a way to widely distribute their product or service, they are willing to pay you for each user, subscriber or member you attract.

Affiliate Programs

Potentially more income as you now receive a payment based on actual sales of a product or service. Your commission for each sale of a product or service that you refer to a merchant's web site is usually a few percentage points of the transaction. The key is matching the products or services with the theme of your site.

The Affiliate is the party that promotes the products or services in exchange for a commission. (The sales agent).

The Merchant is the company that has set up an affiliate program and has agreed to share a commission. (The provider of the goods or services).

Global Marketplace Issues -

- Language

- Culture

- Currency (foreign exchange)

Foreign exchange -should be a significant consideration because currency markets fluctuate.

Examine ways of minimizing foreign exchange risk when transacting business over the Internet.

How will customers know the equivalent price in their local currency? How will you receive payment? Will you accept only U.S. orders?

Examples of other International issues

In 1994, the French government adopted a law that banned any business-related communication aimed at the French people in languages other than French.

Sweden has strict laws against the expression of certain kinds of public speech considered discriminatory against racial and ethnic groups.

Lifetime warranties are a common part guaranteeing the quality of many consumer goods in the United States, but in Germany, such a warranty is illegal.

Learn more about technology and business

Marketing concepts are discussed on this page in the context of basic webmastering, and understanding basic terms for taking certification tests. If you have a small business and are looking to learn more about technology and business, be sure to visit Questy's links and lessons for business


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DISCLAIMER: Technology changes very rapidly. The information presented here as a study guide to illustrate concepts. No claim is made that this information is up to date, or that it represents the current technology used today.

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