17. Marginal Costs --> Marginal costs are the costs associated with creating an additional unit of product. This is similar to variable costs, which are the costs that increase directly with the increase in production (unlike fixed costs). Digital products typically have very low marginal costs, when compared with traditional goods (materials, labor etc.) and if the product is distributed via a web site, then the marginal costs can be zero. The consumer is bearing the distribution costs, and there are no packaging costs. This is why companies are able to market their products for free on their web sites, in order to try to entice further purchases at a later time (in the hopes of creating lock-in perhaps).
18. Marketing Mix --> A Marketing Mix is the combination of product offerings used to reach a target market for the organization. The marketing mix comprises the Product (what the actual offering comprises), Price (the value exchanged for that offering), Promotion (the means of communicating that offering to the target audience, promotional mix) and distribution (also known as Place, the means of having the product offering available to the target audience). The marketing mix is also known as the four P's.
19. Opportunity Costs --> Opportunity costs refer to the costs associated with giving up an opportunity. They are relevant in the marketing of digital products when one considers the value lost to the company when giving away a product for free. Since digital goods primarily consist of fixed costs and often have zero marginal costs then marketing strategy often dictates to give-away a version of the product to encourage consumers to upgrade at a later time (assuming lock-in etc.) The only cost incurred here would be the opportunity cost of the lost revenue from the consumers that would have paid for this version of the product in the first place. To avoid this situation, companies typically segment their markets, and offer a free product, with limited functionality (and no customer support or documentation) to a casual user group, and an upgraded version, at a price, with customer support etc. to a more sophisticated customer. The company will hope the casual users will upgrade to the upgraded version as they become more sophisticated users and more reliant on the product. They also assume the sophisticated user will not be satisfied with the free version, due to its lack of functionality. Eg: blogger and jot.
20. Search Engine Marketing (SEM) --> SEM comprises SEO and search engine advertising. Search engine advertising, in its current model, typically uses text-based advertisements that the marketer bids on based on the keywords the marketer wants to associate with the advertisement (contextual advertising). The business model is typically PPC. Goto.com pioneered the PPC model for search engine advertising. Goto.com was purchased by Overture which was ultimately purchased by Yahoo! Google's Google Adwords is the main competitor.
Both these networks supply advertisements for other sites.
21. Search Engine Optimization (SEO) --> SEO refers to the art of designing a web-site for better listings in search engines. This includes ensuring you have the appropriate keywords in the body text of the site, in the title tag and the meta tags. Google's PageRank algorithm also rewards sites that have inbound links, and even considers the anchor text of the inbound links. Search engines also reward sites with fresh content. Regularly updated blogs therefore serve as a good SEO tool.
22. Shopping Cart Abandonment --> Shopping Cart Abandonment refers to the loss of a customer who is going through the check-out process of an online transaction. Some statistics suggest that this can be as high as 75%. It is principally caused by poor usability of the site and the check-out process (too time consuming, too many clicks), and hidden shipping charges.
23. (Web) Spider --> A spider (also known as a crawler) is used by a search engine to
identify web pages in order to be cataloged in the database of the search engine (web site designers can also submit web pages to be cataloged in a search engine). Spiders therefore help search engines to keep up with the evolution of web content by crawling through the web seeking new sites. To control spiders in terms of cataloging a web site, a designer can include a robots.txt file that instructs a spider to exclude pages that are not to be cataloged.
24. Text Advertisements --> Text advertisements are text links that are paid for by the sponsors of the target page of the advertisement. They are a form of advertisement that can be considered more contextual (assuming the text link is relevant to the subject of the web page), and less obtrusive than other forms of advertising on the web. Text advertisements can also be used for affiliate advertising and the emerging search engine advertising programs from Google Adwords and Overture.
25. underdelivery --> delivery of less impressions, visitors, or conversions than contracted for a specified period of time.
26. Viral Marketing --> Is a marketing technique that takes advantage of a marketer's
customers in promoting the product. This technique was pioneered by Hotmail. Hotmail
launched its free web-based e-mail service with the tag line (at the bottom of each e-mail) "Get your free e-mail at Hotmail." As customers used this e-mail service, and were e-mailing others, they were effectively sending an advertisement for the product. This attracted new customers, who repeated the process. Once a critical mass of consumers were using Hotmail, a tipping point was reached, where the number of new users started to increase non-linearly. Hotmail soon became the fastest growing media company in history.
27. Web 2.0 --> Web 2.0 comprises technologies such as blogs, wikis, podcasting and RSS. It is a term that tries to embrace a participatory web; a web where all can now participate in content creation and consumption. It thus presumes that Web 1.0 was a 'static' environment.
28. Web Analytics --> Web Analytics is the field of data mining the data that is generated from those navigating a web-site. Web Analytics allows a site designer to understand the flow of those going through a site, essentially measuring the behavior of the site's users. Which pages are most popular, which are the entry and exit points, and which are the referrer URLs. Metrics used include page views, hits, sessions and impressions. There are a number of software providers who provide web analytics tools, and a host should also provide this service to its clients.
29. Weblog (blog) --> A blog is a website that is updated frequently by its author, in a standard format, with the most recent entry at the top, and older entries archived. Each entry is a unique URL, a permalink. Entries also include trackbacks and the option for allowing comments. Blogging software (such as Blogger.com and typepad.com) allow anyone the opportunity to be a publisher on the web (no need to know html), thus truly democratizing the process of publishing information (a potential threat to traditional media organizations). Blogs are used to annotate and collect news sources across the web; used as personal journals and for sharing experiences; and used by businesses to reach out to their customers and engage in conversations.
30. Word of Mouth Marketing --> Word of Mouth Marketing (WOMM) refers to the marketing that can be gained by actively engaging customers to share insights with each other (create buzz that goes viral). WOMM has clearly been around since the inception of marketing, but has gained more prominence with the evolution of the internet, and the ease with which customers can share their stories. Web 2.0 technologies such as Blogs and News Readers are enabling WOMM. Discussion Boards have helped customers form communities. Good WOMM relies on great products that customers willingly evangelize. Marketers have been prone to try to 'effect' this by incentivizing 'fake' customers to talk about their products. This can backfire.
2 comments:
I need some more information about it to understand it better...
Sky Power
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Bob
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