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The E-Marketing Plunge
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The E-Marketing Plunge

The Internet is changing the future of business marketing, but it remains uncharted water for many companies. How can your firm take advantage of this global marketing tool? FORM dives in.

In just the last five years, the Internet has become a mammoth force used by more than 330 million people worldwide. In July, it reached a population of 2.1 billion unique, publicly available pages, according to a study by Cyveillance®, an Arlington, Va.-based Internet company. What's more, with a daily growth of 7.3 million pages, the Internet hasn't reached its greatest period of growth and will double in size by early 2001.

According to experts, the Internet's reach already surpasses many forms of marketing media. At its current growth rate, it will soon be the undisputed leader. "The medium is essentially taking over the way businesses will communicate in the next three to five years," says Barry Silverstein, CEO of Directech | eMerge, a multimillion-dollar, business-to-business direct and interactive marketing agency based in Lexington, Mass., and the best-selling author of two books on Internet marketing, Business-to-Business Internet Marketing and Internet Marketing for Information Technology. "The implications are just absolutely enormous to business," he says. "You're going to have to adopt it. You're going to have to use it. And from a marketing perspective, you're going to have to understand what to do with it."

Because so many businesses are online, companies that don't act now are at a disadvantage, says Dr. Ralph F. Wilson, director of Wilson Internet Services in Rocklin, Calif., and editor of the email newsletter Web Marketing Today. "[Businesses that aren't online] may not be able to service their customers as well" or meet their expectations, he says.

Expectations, however, can cause trouble for companies that assume once they're online, business will skyrocket. Experts say firms that ignore their previous marketing efforts will be treading rough seas. "I hear about all of these people who are only doing Internet marketing...thinking that that can be enough," says Ilise Benun, author of the quarterly print newsletter The Art of Self Promotion, the bi-weekly email newsletter Quick Online Marketing Tips and the book Self Promotion Online, due out in January 2001. "My perspective is more about integrating certain online marketing tools gradually into the rest of your marketing plan, so that it's just one more tool, one more medium, one more way for people to reach you," she says.

GETTING YOUR FEET WET
One of the keys to a successful Internet presence is building a Web site that will market your company well. "Sometimes one of the questions I get is, 'Do we have to have a Web site?' or, 'When do we have to have a Web site?'" says Benun. "And I often think that the person to answer that is your client." Media hype has given many businesses the impression that they're the only ones not online, but most firms aren't nearly up-to-speed, she says. "If your client is asking you whether or not you have a Web site, then you still have time. If they're asking you for your Web address, then it's too late-you should already have one."

Secure a URL
Getting up-to-speed can be challenging. First, if a business doesn't have a Web address, it has to secure a Uniform Resource Locator. A URL is literally a name for a Web site. But that task may be more difficult than it sounds. "Unbelievably, the market is so hot now that you could search almost any name on the Internet and find that somebody else has it," says Silverstein.

Businesses can visit search engines such as www.checkdomain.com and www.register.com to see if a domain is available. They can then visit www.icann.org to view contact information for all accredited domain name registrars. The Internet Corporation for Assigned Names and Numbers (ICANN) is the non-profit corporation that assumes responsibility for IP addresses (each machine on the Internet has a unique IP address, similar to a Social Security number), domain name system management and other Internet functions.

Experts say businesses should also consider securing similar domain names (mycompany.com and mycompany.net) and common misspellings of the correct name. Another good idea is to secure a domain with the full spelling of the business name because acronyms are difficult to remember. Securing a URL costs approximately $35 for one year.

Consider Your Image and Audience
"Once you secure a URL, you have to really think about what it means to build a Web site," says Silverstein. "You can approach it in-house if you have the internal talent and skill. You can approach it outside, or you can use some combination of those two." Organizations that don't have Web sites but want an online presence can hire a Web development firm or an interactive marketing agency that has business-to-business marketing experience. "First and foremost, [the Web site] has to represent the image of the company, so it does have to be a marketing-oriented site," Silverstein says. "Frankly, the rest of it is approaching [the task] very much like you would any major communications project. It's not unlike approaching a major direct mail campaign."

The New Captain
For the first time email has surpassed the telephone as the most frequently used medium for business, according to an August 2000 study by Stamford, Conn.-based Pitney Bowes Inc., a worldwide leader in mailing systems and technology.

Before designing a Web site, businesses should consider what their target audience will want from the site. Companies often fail to realize that the Internet is one-to-one marketing, not mass marketing, says Gail W. Houck, CEO and president of Houck & Associates, an Internet marketing advisory and Web site solution firm based in Alexandria, Va. But, she says, the Internet is also permission marketing because users self-select what they see. "That's why I [believe] you can never have enough information at a Web site," she says. "People will pick and choose what they want or what they do not want. But for the person who wants a lot of information, if they go [to a Web site] and cannot get it, they are not exactly happy."

Businesses should also be able to succinctly explain what they do, Houck says. "[For] a lot of clients we work with...you ask them that question, and they go dead in the water," she says. "They know what they know, but they do not know how to tell somebody else what they do. And that's probably one of the biggest disaster potentials for a Web site."

Establish Goals
The next step is establishing purposes and goals for the Web site. Whether the business wants a Web site to sell or market its products, it still must consider its users' needs. "Before you begin, you need to carefully think about what you want your site to do for your business," says E. Brooks Warner, director of sales and marketing for Web Graphics, a manufacturer in Glens Falls, N.Y. "To answer that question, you probably need to do a lot of research. There's no better way to learn about the Internet than getting out there and surfing."

Distributors and manufacturers should talk to others who have Web marketing experience and learn from their mistakes, Warner says. They should also consider reading publications and journals on Internet marketing. "The most important thing you need to know about getting on [the Internet] is that what you do today will be different tomorrow," he says. "So you need to plan for change. You need to leave capacity for additions, corrections and changes. You need to realize the requirement of flexibility."

INTO THE DEEP END
Once the planning stage is complete, businesses must undertake the actual design and construction of their Web sites.

Organize a Site Map
One very important step is organizing the site's content layout, which is very similar to the architectural planning needed for a house or commercial building. "How many people do you know who start building a house without an architectural plan?" asks Houck. "You could have some pretty interesting outcomes, and that is exactly what happens with Web sites." With site maps, businesses plan the construction, navigation, content sections and sub-sections for the short, medium and long term. So even if their budgets do not allow for a certain feature in the beginning, the feature has been planned for and can be included later.

Make the Site Stick
Experts say sites should be built in increments, not all at once. "Sites are overwhelming enough as it is," says Houck. "By doing it incrementally...it is a more continuous process, [and] it offers a reason to get in touch with your clients or prospects and say, 'Hey, come take a look at our site. We have got something new.'" An incremental build helps to create a "sticky site"-a site that provides breaking industry news or information, tools such as electronic analysis sheets or calculators, or other valuable information that will keep visitors returning. "When you get a prospect to go to your Web site, they have a reason to go once...they may not have a reason to go twice," says Silverstein. Calculators, tips and breaking news are useful to visitors, leading them to bookmark sites.

Keep Updating
Perhaps most importantly, businesses should realize that once they upload sites, their jobs aren't over. A Web site is a very dynamic medium. "There's nothing worse than an incomplete or incorrect piece of information," says Warner. "It's suicidal....You need to designate clearly somebody or some people within your organization who are responsible for the completeness, correctness and thoroughness of all of your content. It's a terrible business mistake to overlook that."

GETTING CLIENTS TO JUMP IN
Building a Web site and not marketing it is like building a billboard and placing it in your basement, experts say. This statement rings true-but many businesses still neglect marketing their sites. In the ever-growing Internet clutter, it's highly unlikely that a business' site will be found if the company doesn't tout its strokes.

Find Search Engines That Work
"Search engines are still a big part of how people are finding other businesses," says Houck. Five years ago, a few hundred search engines existed. Listing your firm was less of a challenge than it is today, when 6,000 or more search engines exist.

Businesses must be sure they're listing themselves in search engines appropriate to their industry, experts say. Most webmasters submit their pages manually via search engine Web sites, but companies can also purchase software that submits their pages automatically. It's not logical for businesses in the printing industry to list themselves in entertainment search engines. Houck suggests B2B portals relevant to the industry and to prospects. Some portals for the printing industry include www.printbid.com, www.printcities.com, www.printnation.com and www.58k.com.

It's important to design your Web site so it can be found easily by search engines. A Compaq study found that 68 percent of 500 million users of the Internet's top search engines looked only at the first page of results. "A lot of firms are using strategies that actually hamper or literally undo any attempt they are making to seed their site in a search engine," says Houck. "And a lot of people just do not know this. A prime example would be the use of frames. Search engines cannot index words in a frame layout." Frames are multiple, independently controlled sections of a Web page. Pages that use frames are built using separate HTML files with one "master" HTML file identifying all of the sections. Businesses using frames may have very little to show for the money they spent to be listed in search engines.

Advertise Online
Business should also consider purchasing advertising on other Web sites geared toward the same industry or audience. Banner advertising is a good way to attain publicity, but experts downplay its lead-generating ability. Every year, fewer people click on them, Houck says. "There is so much clutter and so much noise out there that...we learn to tune them out," she says.

"You're going to have to adopt
[the Internet].
You're going to have to use it. And from a marketing perspective, you're going to have to
understand what to do with it."

Barry Silverstein
CEO
Directech | eMerge
Lexington, Mass.

Aside from a Web site, businesses can market themselves through other online forums. Email newsletters are so popular right now, it's hard to imagine anyone who doesn't subscribe to a few. Companies should consider offering email newsletters, special offers, or industry updates and tips Web site visitors can receive regularly.

"The advantage of [email] newsletters," says Wilson of Wilson Internet Services, "is that you can go out and send your message to people at your own initiative rather than waiting for them to come back to your Web site. A Web site is essentially passive; email newsletters are essentially active. You want to have both going for you." Use the Web site to pull people in and the email newsletter to push information out, he says. Businesses can send email newsletters and messages to current clients because those messages are not considered spam. Recipients should be able to opt out if they wish, Houck says.

Use Print Collateral
Companies also should market their sites offline. Businesses should list their Web site addresses and email addresses on business cards, invoices and any printed material that leaves their offices. They should also mention the addresses every time they speak with customers or prospects. Direct mail tools such as simple post cards reminding customers of the Web site and its features also prove beneficial.

THE WEB HORIZON
Though building an Internet presence isn't always easy, the Internet offers boundless opportunities distributors and manufacturers cannot afford to ignore. "The Internet has already established itself...as a major communication medium that businesses will have to deal with and have to take seriously if they're going to be considered competitive," Wilson says.

Other Internet marketing experts agree. "The sky's the limit [for Internet marketing]," Houck says. "It will continue to grow, but it will also continue to evolve. So everyone needs to be aware of new trends, stay current and take advantage of these things. You cannot just learn it today and think you've got it, because tomorrow it will be slightly different."

The benefits of using the Internet to market your business are seemingly endless. In fact, reaching prospects through Internet marketing is 60 to 65 percent cheaper than through traditional direct marketing, according to Silverstein. And then there is the concept of reach. "The Internet allows marketers and advertisers to reach particular segments of a market that [previously] might have been unreachable," says Warner. For companies that can sell at a distance, the Internet opens a tremendous marketplace that wasn't affordable or accessible before.

Silverstein stresses that domination of the Internet in the marketing world may come sooner than many people think. "People should understand that we're in a transitional state," he says. "They have to recognize that all of these traditional media are going to be subordinate to the Internet someday. And that someday is probably not more than a few years away. The Internet has too many compelling reasons for why it's going to be better, cheaper, faster and broader. It's going to be widely adopted. Everybody's going to be doing business on it. You're just not going to have a choice."

Kara S. Carpenter is an assistant editor at FORM Magazine. Email her your comments at kcarpenter@dmia.org.

Caution: Possible Rough Waters Ahead!
For businesses new to the Internet, establishing a Web presence often takes a lot of time, money, effort and patience. Best Business Systems, a distributorship in Bowling Green, Ky., began building a Web site last fall and began working on the site in earnest when it hired a full-time Web designer in January.

"My thinking was, 'If we can find a way to sell products over the Web, the world is our oyster,'" says Paul Keith, the distributorship's CEO. The Web designer worked with meta tags (special HTML tags that provide information and key words about a page's content, often used by search engines to build their indexes) and registered the site with search engines. Keith linked his page with DMIA's Web site (www.dmia.org) and his town newspaper's site. He ran ads about the site in the local newspaper; featured the Web address on his business cards, letterhead and other printed material; bought a new awning for the front of his building that read "Best Business Systems.com"; purchased banner ads on other sites; and told customers to visit the site.

The venture cost Best Business Systems approximately $20,000 and resulted in only 75 to 100 hits a month for the first six months, Keith says. Most of those hits came from competitors and manufacturers. "Bottom line is that it's worse than bad," he says. "It's as if we had never done anything. It's worse than if we had never done anything because I've spent thousands of dollars to try to make it happen-and nothing has happened."

The problem? Like many other business professionals venturing online, Keith's expectations for the Web site may have been for too much, too fast. "[Building a Web site] takes twice as long as you think it's going to take to create," says Ilise Benun, author of the print newsletter The Art of Self Promotion, the bi-weekly email newsletter Quick Online Marketing Tips and the book Self Promotion Online, due out in January 2001. "And then the process of getting the word out and stimulating traffic is a very cumulative, molasses-slow, snowball process....You really have to be actively promoting the site on a regular basis."

Experts say most businesses can expect to wait two months to more than a year before seeing results. "Things have gotten a lot harder in some ways in the last three or four years because there are so many Web pages up," says Dr. Ralph F. Wilson, director of Wilson Internet Services in Rocklin, Calif., and editor of the email newsletter Web Marketing Today.

Benun says many businesses also make the mistake of marketing their Web sites without targeting an audience. "Targeted would be choosing a very specific group of people, getting a snail-mail list [and] an email list, and creating a very focused marketing plan toward that one group of people."

Another major problem for businesses is failing to keep Web sites fresh and current. When many businesses launch sites, experts say, they think the task is finished and simply walk away. "[Building a Web site] is almost like...birthing a baby," says Gail W. Houck, CEO and president of Houck & Associates, an Internet marketing advisory and Web site solution firm based in Alexandria, Va. "You have the pain, but you also have the gain. As with a baby, you do not just 'birth it' and walk away. You must 'feed' it and nurture it in order for it to grow."

Many businesses also mistakenly exclude traditional media from their marketing efforts once they're online. "Today, we are in a state where business and marketing is transitioning to the Internet-but it's not [exclusively] on the Internet," says Barry Silverstein, CEO of Directech | eMerge, a multimillion dollar, business-to-business direct and interactive marketing agency based in Lexington, Mass., and the best-selling author of two books on Internet marketing, Business-to-Business Internet Marketing and Internet Marketing for Information Technology. "[Don't] abandon all of the traditional media, but rather understand how to make online and offline work well together," he says.

Benun says faulty expectations are still the biggest problem for businesses trying to establish a Web presence. "People complain about no traffic. They complain about trying to get listed in the search engines and not getting anything from them. They complain about trying to create links with other Web sites, and nothing happens," she says. "And all of it is based on false expectations of what [a Web site] is all about."



Defining Web Jargon

  • B2B: (Business-to-Business) Sites that only allow other businesses to access pages or buy products

  • Brochure-ware: A simple Web site that consists of a collection of data sheets, press releases and other materials that have been converted directly from print
  • Click-through: The number of times viewers click on a banner ad on a particular site
  • Cookie: Small data files written to hard drives by some Web sites that are viewed in browsers. These data files contain information the site can use to track Internet activity, such as passwords, lists of pages visited and the date a user last viewed a certain page.
  • CRM (Customer Relationship Management): Action taken to build relationships with customers, reach them, engage them and keep them returning to a site. See "Sticky sites."
  • Domain name: The "address" or URL of a particular Web site; the description of the name to the right of the "@" symbol in an Internet address
  • Flame: A heated and often abusive response to unsolicited email or, more often, a posting on a bulletin board or community area. (When a flamer is flamed back, the exchange is called a "flame war.")
  • Flash: A Web browser plug-in that displays Web application front ends, high-impact Web site user interfaces, interactive online advertising and short- to medium-form animation
  • Frames: A Web page designed with multiple, independently controlled sections. This effect is achieved by building each section as a separate HTML file and having one "master" HTML file identify all of the sections.
  • Meta tag: An optional HTML tag that is used to specify information, including the contents, about a Web page. Some search engines use "spiders" that read the information contained within a page's meta tag to index Web pages.
  • PDF (Portable Document Format): The file format of documents viewed and created by Adobe products. This format retains the original document's characteristics.
  • Plug-in: Software that "plugs in" to a Web browser and allows a user to view a QuickTime movie or listen to sound files
  • Portal: A Web site that is intended to be the first place people see when using the Web. Typically, a "Portal site" has a catalog of Web sites, a search engine or both. A Portal site may also offer email and other services to entice people to use that site as their main "point of entry" (or "portal") to the Web.
  • Shockwave: A Web browser plug-in that allows Web viewing of Macromedia Director movies
  • Spam: Unsolicited, often mass-sent commercial email
  • Spider: A program that prowls the Internet, attempting to locate new, publicly accessible resources such as Web pages. The information the spiders gather is added to a database, which Internet users can search by using an Internet-accessible search engine. (These programs are necessary because the rate at which the Internet is expanding greatly exceeds manual indexing capacity.)
  • Sticky sites: Web sites that provide enticements such as free Web-based email, chat message boards, weather information and breaking news bulletins to get visitors to stay or "stick" to their sites and return frequently
Do's and Don't's of Web Site Design

Do keep it simple. Overloading your site with images, animations, colors and different text sizes will slow your site's download time and confuse and annoy your visitors.

Don't use too many frames. Search engines can only index about 16 percent of what's on the Web, according to Dr. Ralph F. Wilson, director of Wilson Internet Services in Rocklin, Calif., and editor of the email newsletter Web Marketing Today. Using frames hampers your business's ability to be found easily in search engines.

Do keep the content fresh. Your visitors may have a reason to come to your site once, but why should they return? Updating your site frequently with special offers, breaking industry news, and your latest products and services will give your site value and credibility.

Don't let inexperienced people build your Web site. "It's kind of like getting somebody to paint the physical sign over your business who's not a sign painter," says Wilson. "They can do a pretty good job, but one glance at the sign is going to tell you that it isn't a professional job, and that reflects [poorly] on your company."

Do market your Web site offline. List your Web site and email addresses on all printed material that leaves your office. Mention them in phone conversations to customers and prospects, send out direct mail pieces that announce and remind customers and prospects about your site, and include your site address on your voice mail message.

Don't begin with unreasonable expectations. Creating and promoting a Web site can be a slow, ongoing process. Don't expect to receive a wave of hits overnight. "Err on the side of negative expectations," says Ilise Benun, author of the print newsletter The Art of Self Promotion, the bi-weekly email newsletter Quick Online Marketing Tips and the book Self Promotion Online, due out in January 2001. "If you expect to get no traffic, you'll be happy with what you get."

Do include your contact information on the site. "The Web site should list all of the traditional information like phone, fax, email and physical addresses in an easy-to-access site location," says Gail W. Houck, CEO and president of Houck & Associates, an Internet marketing advisory and Web site solution firm based in Alexandria, Va. "People want options on how to get to you."

Do collect email addresses of visitors. A Web site is passive marketing, but email is active marketing. You need both working for you.

Do offer downloadable PDF files and/or text-only formatted files. Give viewing options. Prospects can gain easy access to your sales brochures, and salespeople on out-of-house visits would not have to carry as much material with them. "Let's say [your salespeople] run out of marketing material when they are out on the road," says Houck. "They could go to a Kinko's...download a PDF file and have some things printed on the spot."

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