Creating an Electronic Storefront

In opening an electronic storefront, a company has,two choices: it can buy space on a commercial online service or it can open its own Web site. Buying a location on a commercial online service involves either renting storage space on the online service's computer or establishing a link from the company's own computer to (he online service's shopping mall. A retailer, for example, can link to America Online, CompuServe and Prodigy, gaining access to the millions of consumers who subscribe to these services. The online services typically design the storefront for the company and introduce it to their subscribers. For these services, the company pays the online service an annual fee plus a small percentage of the company's online sales,

In addition to buying a location on an online service, or as an alternative, thousands of companies have now created their own Web sites. These sites vary greatly in purpose and content. The most basic type is a corporate Web site.-'1 These sites are designed to handle interactive communication initiated by the consumer. They seek to build customer good will and to supplement other sales channels rather than to sell the company's products directly. Corporate Web sites typically offer a rich variety of information and other features in an effort to answer customer questions, build closer customer relationships and generate excitement about the company. Corporate Web sites generally provide information about the company's history, its mission and philosophy, and the products and services that it offers. They might also tell about current events, company personnel, financial performance and employment opportunities. Many corporate Web sites also provide exciting entertainment features to attract and hold visitors. Finally, the site might also provide opportunities for customers to ask questions or make comments through e-mail before leaving the site.

Other companies create a marketing Web site. These sites are designed to engage consumers in an interaction that will move them closer to a purchase or corporate Web site

A site set up by a company on the Web, which carries information and other features designed to answer customer questions, build customer relationships and generate excitement about the company, rather than to sell the company's products or services directly. The site handles interactive communication initiated by the consumer.

marketing Web site

A site on the Web created by a company to interact with consumers for the purpose of moving them closer to a purchase or other rnarketing outcome. The site is designed to handle interactive commun ica tion initiated by the company.

other marketing outcome. With a marketing Web site, communication and interaction are initiated by the marketer. Such a site might include a catalogue, shopping" tips and promotional features such as coupons, sales events or contests. Companies aggressively promote their marketing" Websites in print and broadcast advertising, and through 'banner-to-sire' ads that pop up on other Web sites.

For example, Toyota operates a marketing Web site fit www.toyota.com. Once a potential customer elieks in, the car maker wastes no time trying to turn the enquiry into a sale. The site offers plenty of entertainment and useful information, from cross-country trip guides and tips for driving with kids, to golf and outdoor events. But the site is also loaded with more serious selling" features, such as detailed descriptions of current Toyota models and information on dealer locations and services, complete with maps and dealer Web links, Visitors who want to go further can fill out an online order form (supplying" name, address, phone number and e-mail address) for brochures and a free interactive CD-ROM that shows off the features of Toyota models. The chances are good that before the CD-ROM arrives, a local dealer will call to invite the prospect in for a test drive.32

online advertising Placing advertisements on the Internet in special sections offered by commi-rcial online services, as banner <irfs (hat pop up while computer subscribers are surfing online services or Web sites, or in Internet news groups tha(have been set up for commercial purposes.

Business-to-business marketers also make good use of marketing" Web sites. For example, corporate buyers can visit Sun Microsystems' Web site (www.sun.eom), select detailed descriptions of Sun's products and solutions, request sales and service information and interact with staff members. Customers visitingGK Plastics'Web site can draw'on more than 1,500 pages ofinformation to get answers about the company's products any time and from anywhere in the world. And FedEx's Web site (www.fedex.com) allows customers to schedule their own shipments, request a courier and track their packages in transit.

Creating a Web site is one thing"; getting people to visit the site is another. The key is to create enough value and excitement to get consumers to come to the site, stick around and come back again. This means that companies must constantly update their sites to keep them fresh and exciting. Doing" so involves time and expense, but the expense is necessary if the online marketer wishes to cut through the increasing online clutter.

For some types of product, attracting visitors is easy. Consumers buying new' cars, computers or financial services will be open to information and marketing initiatives from sellers. Marketers oflower-involvement products, however, may face a difficult challenge in attracting Web-site visitors. As one veteran notes: 'IS you're shopping for a computer and you see a banner that says, "We've ranked the top 12 computers to purchase", you're going to click on the banner. [But] what kind of banner could encourage any consumer to visit dentalfloss.com?'-'11 For such low-interest products, the company should create a corporate Web site to answer customer questions and build good will, using it only to supplement selling efforts through other marketing" channels.

Next, let us take a look ,-jt how advertisements are placed online.

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