Appendix E
Selling on the Internet

• The Internet and the World Wide Web
  A communication conduit and a marketplace Available worldwide 24 hours a day
  Dynamic entrepreneurial environment Changing the nature of marketing On-line marketing channels can be defined as sales and informational links a person can use to reach potential business contacts via computer.
  Internet	is a network of computers originally designed to provide uninterruptable communication in the event of sabotage or attack.
  WWW or Web	a subset of the Internet Multimedia capability Hypertext capability The Web comprises hundreds of thousands of virtual sites Allows picture-based descriptions to aid text-based communications
  Web Site	Sites exist as data in computers. Collection of associated electronic documents called pages, Home Page: First page displayed at a Web site
  Multimedia	Any combination in a single document of text, graphics, sound, or other data formats.
  Hypertext	Involves text-based communication links among documents When a linked word or phrase in one document is selected, another related document is displayed.
  WAIS	Wide Area Information Server Uses keywords to search databases Information returned in full text
  Telnet	The original internet allows you to remotely log on to any computer requires authorization
  FTP	File Transfer Protocol The fastest way to upload and download
  Gopher	Text based Similar to the web Search for documents
  News Groups	Thousands of groups Many news servers People participate in online discussions about specific topics of interest.
  E-mail	The most frequently cited reason for using the Internet. in 1995 9 Million browsed Web 36 Million sent & received e-mail
  Developed in the 1960s by the U.S. military Later used by colleges and universities for research 1991 commercial activity began Tim Berners-Lee originally developed the World Wide Web at the European Particle Physics Laboratories in 1989. Early browsers were text (lynx) Mosaic was the first graphical browser
  KPBS' Understanding and Using the Internet: Discover the Internet at this PBS site It provides a beginner's guide to the Internet Illustrated backgrounders and show transcripts.

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• Resources on the Internet
  Listservs & news groups	Exchange documents conduct dialog
  Subject Databases	Institutions making databases available Technical information about products available
  Community Information	Local information Public notices
  Government Resources	Gopher & www California San Diego City Forms and all kinds of goodies
  Library catalogs	Mainly university libraries Public libraries coming on board
  Commercial and Business	Our main topic Web sites for commercial products Websites for commercial activities

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• Commercial & Business Models for the Internet
  Retail Model	Advantages		Disadvantages
  Electronic Store front An on-line catalog	Easy Inexpensive		Does not generate traffic unless goods are specialized
  The Mall Model	Advantages		Disadvantages
  Heavily advertised site Sells space to retailers	Convent for customers Convenient for Vendors		Must constantly improve and update Must track hits, sales
  The Broker Model	Advantages		Disadvantages
  Bring together buyers and sellers Buyer and seller are anonymous	Good commissions Great data		Must promote Must collect
  The Broadcast Model	Advantages		Disadvantages
  Free content to consumers Paid by advertising	Advertising can be customized by user Used by search engines		Must promote Must change content daily
  The Subscriber Model	Advantages		Disadvantages
  Charge customers to view content May contain advertising as well	Money up front from subscribers Money from advertisers		Low usage Advertisers may balk
  The Cable TV Model	Advantages		Disadvantages
  Free content and Paid content	Free content acts as a sample		Visitors may not want to pay
  The Arcade Model	Advantages		Disadvantages
  Very small charges to use Video games Pay per view
  The Customization Model	Advantages		Disadvantages
  Subscribers are charged for custom content
  Overall internet benefits
  To Customers		To Marketing
  Free Convenient Access to wide variety of information Allows deep searches Efficient		Can change communication quickly Can use as a demonstration tool Low overhead Can track customers Can run market research

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• 	Buyer
  S e l l e r		Business	Consumer
  	Business	Business to Busness: I2.com	Business to consumer: Amazon.com
  	Consumer	Consumer to Business: Ideas.com	Consumer to consumer :ebay.com

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• What has happened?
  Study of 125 dot.coms	44% moved from selling to consumers to retailers 47% of 90 B2C companies moved to B2B 1/3 of 35 B2B companies moved to enterprise customers 16% went to "brick and mortar" 14% expanded offerings 14% narrowed offerings
  .net now number one	Internet Domain Survey

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• General Framework for Operation
  Attraction	Banners Other media
  Engagement	Get their attention right away Get them to participate right away Creative visuals User generated content Interactive content Transaction capabilities
  Five Levels of Web Engagement Surfer Impression Looks only at the home page Browser Clicks Navigates through pages of the Web site Visitor Download Saves information from the Web site Registered Guest Upload Provides personal information for the Web sites database Subscriber Subscription Establishes an ongoing relationship with the Web site
  Retention	Make them come back Dynamic content Digital communities Unique content
  Learning	Learn about their preferences Capture data and track each customer
  Relating	Customer interaction and value delivery Personalize the site for each customer Real time interactions

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• Selling on the Internet
  Designing your web site
  catch and retain customers learn HTML Learn Java, JavaScript, CGI, PERL Using plugins Marketing success on the WWW requires the use of exciting and original content and images Some are launching Web sites without any additional investment. Some spend hundreds of thousands of dollars on expensive equipment and high-priced development services. Any of the sites on the right will give you a free web-site	Anglefire Hometown AOL Homestead theglobe Tripod http://www.freehomepages.com/ Xoom Yahoo! Geocities Free Website Providers
  Web Page Essentials
  Logo Index Menus for navigation Photos Neilson's Website about Usability
  Connecting to the Internet
  Rent Space (subdomain)
  Register your domain www.yourname.com	Each site differs in cost and user-friendliness, so click around a few of them to decide which one best suits your needs.
  	Direct NIC Joker.com Parthe.net Register.com Domain It.com 1 Domain.com Site Names.com Easy Space.com 101 Domain.com	Register.com.sg Domain Valet.com 4 Domain Names.com Instant-Domain.com Name Secure Lycos.com Name Registrations.co.uk Internic Domain Names.com New Domain Registrations.com
  Use an ISP
  Get in an internet mall
  Create your own server	Can be done on a PC Modem DSL Cable T1
  Publicizing your site
  Include Web address in all advertisements and stationery Make sure the phone number is also available Contests Entertainment Free services Register with search engines Consider directories Newsgroups (Be careful)
  Nettiquette
  Don't advertise where you shouldn't Unsolicited e-mail Commercial postings
  Global Concerns
  Different rules about what is "fit to print" Sweepstakes may be illegal Disclosure laws Rescission laws Credit and currencies

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• Funding the Site
  New Plan	Existing Business
  Garage.com: Business plans are published for investors Nvst.com: Posts internet investment opportunities The Elevator: Uses the "Elevator Pitch" to sell investors	Edie-online: Hooks existing businesses up with investors. Compareitall: Creating a network of vertical sites. Each site will spin off as a separate business. Looking for businesses and managers to run the sites.
  Other sites to check out before startup	Startupzone: databases and information about startups central: Microsoft's site with great research tools. E-loan: Collect and present loans from many providers Live Capital: Networks of lending and leasing partners. The Patent Office: See if your product or idea qualifies. Get a Trademark Registered: This is easy and cheap Easy DNS: Get your domain name registered

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• Myths of Selling on the Internet
  You can advertise to millions	No one really has an accurate count Getting millions to your site might be too expensive
  You must get on the net NOW or loose out	Some of the pioneers will (already have) gone broke It is virtually impossible to get a proprietary position
  You can't advertise on the net	There are pleanty of ligitimate ways
  If you advertise then you get flamed	Not always true only in newsgroups and e-mail and then there are exceptions
  You can make quick bucks	Only by following the same marketing principles Some pioneers made out For the rest of us, it will be work
  Nobody is making money on the net	Not true at all The net can also be used to lower costs To manage a sales force
  Nobody will find you You can't find anything	It takes time to learn to search Register and promote
  Leave it to the "techies	Only mechanics can have cars Only plumbers can have running water Etc.
  Your web page must be radical	It should be integrated with your other promotions
  Counting hits is the best measure of effectiveness	It is just the beginning Have them fill out a form Get some data
  The internet changes everything	The internet changes a few things
  Anything can be sold on the internet (the products on the right have had slow exceptance)	Sensory & experience products (high touch) Products that are hard to transport Products with delivery problems. Services where face-to-face is important
  No consumer switching costs	Competitor is not just a click away Switching e-tailors may involve a lot of work
  Disintermediation	Many still need imtermediaries
  The web covers the world	Most of the web content is in English

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• Summary

  Internet surveys Line56

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