Van Doren 2000

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Promotional strategies on the

World Wide Web
Doris C. Van Doren , Deborah L. Fechner & Kathy Green-
Adelsberger
Published online: 09 Dec 2010.
To cite this article: Doris C. Van Doren , Deborah L. Fechner & Kathy Green-
Adelsberger (2000) Promotional strategies on the World Wide Web, Journal of Marketing
Communications, 6:1, 21-35, DOI: 10.1080/135272600345534
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JOURNAL OF MARKETING COMMUNICATIONS 6 21–35 (2000)
P romotional strategies on the World Wide

Web
DORIS C. VAN DOREN
Department of Strategic and Organizational Studies, Loyola College in Maryland, 4501 North
Charles Street, Baltimore, MD 21210-2699, USA
DEBORAH L. FECHNER
3551 39th Street, NW Apt C513, Washington, DC 20009, USA
KATHY GREEN-ADELSBERGER
124 Bollinger Road, Littlestown, PA 17340, USA
Business managers that use the Internet as a major com ponent of their marketing
com munications strategy face great challenges. The popularity of the Internet with
consum ers and businesses drives thousands of rm s to promote their products and
services using World Wide Web (known hereinafter as the Web) sites. Technology
has created a com petitive arena that enables exposure to consum ers worldwide, who
can now easily com m unicate with each other. This potential for exposure has
dramatic im plications for any business considering the Internet as a promotional
vehicle. The growing popularity of Internet sites, where users may discuss their
feelings about companies and products, allows an increased scrutiny of all aspects of
business. If com panies do not deal effectively with this scrutiny, brand equity is
vulnerable to erosion. Therefore, all contingencies inherent in prom otional efforts
on the Internet m ust be weighed carefully. Businesses which examine the
ramications of on-line exposure are better able to create and maintain a positive
Internet presence which facilitates effective Web site promotion. Planning,
im plementation and control m ust be integrated into the on-line marketing
com munications of businesses, regardless of business size.
KEYWOR DS: Communication; marketing; on-line; World Wide Web; Internet
INTRODUCTION
An examination of some of the most common techniques used in promotional efforts on the
Internet reveals some of the advantages, disadvantages and costs of on-line promotion, and
offers thoughts from those experienced in the industry on how to meet the challenges.
The Internet was developed during the Cold War era of the 1960s by scientists employed
by the US Defense Advanced R esearch Projects Agency as a means of continuing
communications in the event of a nuclear attack or computer failure (Cerf, 1997). From this
Journal of Marketing Communications
ISSN 1352-7266 print/ ISSN 1466-4445 online # 2000 Taylor & Francis Ltd
22 VAN DOREN, FECHNER AND GREEN-ADELSBERGER
original purpose, the Internet has slowly evolved over the last several decades from a
cumbersome tool requiring technical expertise to a sophisticated, quick and user-friendly
network of computers accessed by people all over the world. The emergence of the World
Wide Web (known hereinafter as the Web) in the mid-1990s, with hyperlinks and graphical
browsers, has driven an immense growth of interest in the Internet among businesses and
consumers (Frost and Strauss, 1998).
One major trend emerging from this increased interest is use of the Web as a cost-effective
communications vehicle through which businesses can research, focus and market their
products and services directly to consumers. Businesses can outsource marketing efforts by
taking advantage of the proliferation of Web consulting services which allow them to reach
out to consumers worldwide or by developing their own Web sites. Research has shown a
tremendous shift in attention towards Web marketing by a number of large businesses; these
businesses are allocating higher percentages of their marketing and advertising budgets to the
Internet. Among others, Toyota, Procter & Gamble, IBM, Intel and Bristol-Myers have
reported tremendous success advertising on the Internet. Dell and Cisco are two companies
that have busily networked with their customers through the Internet and Dell offers
customized ordering of computers over the Internet.
The Internet has proven to be a tremendously powerful vehicle for promoting products
and services, whether the business is a small upstart or a global giant. Consumer expectation
has been heavily impacted on by the Internet. Because the Internet enables companies to
focus on and respond quickly to users, customers have grown to expect a heightened level of
service. This translates into timely responses, creative customization and more effective two-
way communication (Krauss, 1998). Some of the early research predicted the potential of the
Internet to outperform print, radio and even television advertising because of one critical
difference—the ability of users to interact with Web advertising. This element of
interactibility is what sets the Internet apart from other advertising media and is the premise
for a claim made nearly 4 years ago that ‘. . .[the] information highway will provide a new
media for reaching the rms’ customers and consumers . . . one that provides us with a cross
between the two of our most effective ways of inuencing customers and consumers: selling
and advertising’ (McCann, 1995, p. 2, www.duke.edu= mccann=mktfront.htm).
This unique feature of interaction on the Internet facilitates a whole new approach to
reaching potential customers. Unlike television, where a consumer turns it on and passively
observes (often ignoring what is on, changing channels or falling asleep), a computer user
turns on the computer with the active intent of going on the Internet and, therefore, he or
she pays attention to what happens next. Not only can the user communicate with others on
the Internet, but others can respond back. This is the utility of interaction and the reason this
new medium is growing faster than television and other types of media. It is a new
methodology by which marketing and sales can take advantage of cyberspace to promote and
sell in cost-effective ways (McCann, 1995, www.duke.edu= mccann=mktfront.htm).
It was noted in a recent Wall Street Journal article that the Internet can service customers in
ways that traditional media cannot, including the possibility of targeting selected customers
(Anders, 1998). The Internet shows great potential for use as a marketing planning tool.
Marketers can use the Internet in much the same way they would use a library because much
of the desired data resides on computers connected to the Internet. This data enables
marketers to gain greater insight into customers, competitors, technology and environmental
factors. This data is up to date, easy to access and cost-effective. Marketing planners can also
use the Internet to collect direct data on current and potential consumers’ preferences by
PROMOTIONAL STRATEGIES ON THE WORLD WIDE WEB 23
using on-line surveys, reviewing Web site registration or observing on-line discussions in chat
rooms (Frost and Strauss, 1998).
Establishing a Web site is not the nal step in the process of promotion on the Internet.
Businesses must be vigilant in differentiating themselves from their competitors and must
engage Internet users to the extent that they return to the Web site and purchase something.
Today, Internet technology offers a business the capability of analysing more than just the
number of visitors; businesses can obtain demographic and psychographic data and use this
information to focus on target markets in their customization efforts. Several techniques are
available for achieving these results, some more effective than others.
FOUR POSSIBLE SCENARIOS

The creation of a well-planned Web site starts with determining the reason why a company
wants to establish its presence on the Internet. A whole spectrum of promotional techniques
exists, depending on the level of commitment a company wants to make. At the simplest end
of this spectrum, companies may want to establish marketing collateral or build brand equity
by mass exposure. This fairly inexpensive, simple approach does not solicit interaction, but
merely facilitates the display of the company’s name in front of as many people as possible.
While this can be accomplished in other types of media, the potential of future development
of the Web site into an interactive site has its advantages. A middle-of-the-road approach
might consist of using banners, buttons and graphics to link the user to the company. At the
complex end of this promotional spectrum, a company may decide to use an elaborate
approach involving the use of interactivity to encourage users to respond in greater depth.
Another complex approach might be to offer some type of distribution channel via a
cyberstore where users can order products or services. Video conferencing over the Internet,
enabling a more personal approach to interacting with consumers, is another rising trend. All
of these techniques can be used for conducting research for marketing purposes. The more
involved methods carry heavier costs, but the potential pay-off is greater.
Figure 1 shows four possible promotional scenarios, ranging from the simplest presence on
the Internet (establishing a Web site) to the most complex (transacting business on the
Internet). The promotional techniques deployed within each of these scenarios range from
simple to complicated. A discussion of costs based on various scenarios in three cities
throughout the USA will be discussed later.
Scenario 1 involves the establishment of a one- or two-page Web site on the Internet. This
is the rst step for any business that has decided to use the Internet. If a business wants
enhanced name recognition but does not need to interact with users or if a business goal is to
provide information about the company and how to order products or services by traditional
channels of distribution, this method is useful and inexpensive. However, this method is
limited in its effectiveness. It does not facilitate the gathering of information in order to focus
on target markets. It is a mass advertisement; without a mechanism for users to interact
through, there is no way of measuring its effectiveness except by counting the number of
visits made to the site. This type of Web site equates to the placement of an advertisement on
a billboard, in a newspaper or in the Yellow Pages. It relies solely on the user’s level of
interest and motivation for any further inquiry into products or services. This type of message
is easily lost in the growing maze of banners, buttons and other enhancements used by
competitors attempting to leverage the benets of interaction to assist them in focusing their
promotional strategy on target markets. Nevertheless, for a start-up business on a limited
1 ê Web site only/information

No interactivity
Mass market approach/no focus
No measurability of Web site
effectiveness
2 Web site for limited interactivity

E-mail set-up for customer inquiry
Minimal market research
Limited measurability of WWW site effectiveness
3 Full interaction capabilities

Off-line transactions
Banners, buttons and other enhancements
Focused market research capabilities

High measurability of Web site effectiveness
4 Extensive interaction
Videoconferencing
Full on-line transaction and distribution channel capabilities
Optimal focused market research capabilities with leverage
Optimal measurability of Web site effectiveness
FIGURE 1. Four possible scenarios for promoting on the Internet.
budget, it can be a fairly inexpensive method of advertising and providing information about
a business to a worldwide audience, depending on the complexity of the Web page. This
level of Web site establishment is low risk, low cost and low pay-off.
Scenario 2 builds on this type of presence on the Internet. This scenario would appeal to a
company that not only wants to establish a presence on the Internet, but also gain user
interest in a way that encourages repeat visits to the site. The company does not want to sell
goods or services directly on-line, but wants users to respond to promotions. By getting users
to respond (whether the response is simple or in depth), the company can gather valuable
data to help it focus its products or services on market segments or niches. The effectiveness
of this approach depends entirely on the user’s motivation to respond to questions and
provide personal information. There is no mechanism by which businesses can force
prospective customers to provide the information. Certain kinds of information may be
obtained from user visits to the site, but it is still up to users to provide additional
information. With the trend moving away from mass marketing towards focused, fragmented
marketing, this approach enables the collection of demographic and psychographic data
(McCann, 1995, p. 4, www.duke.edu/ mccann/ cpg/ cg-chg.htm). Companies can set up
information-gathering windows which users can easily respond to or ignore if they wish; zip
codes from users supply some demographic information to the company. Other companies
want more detailed information and nd creative ways to get users to interact for longer
periods of time to provide more in-depth data about themselves and their buying habits.
Scenario 2 is only one step further along the spectrum of Internet usage than scenario 1,
but it is more effective because it involves at least some level of interaction. Companies are
able to obtain information from users; while this information may be limited, it could be
enough to make a big difference to companies. It could enable businesses to expand their sites
to include extensive product and service information, obtain actual responses from users and
handle any inquiries via return e-mail. This type of Internet usage can range from fairly
inexpensive to expensive, depending on the actual promotional techniques used and the
complexity of the Web sites. Scenario 2 accomplishes two purposes: it builds business brand
equity and gathers as much information as users are willing to provide.
Scenario 3 is even more involved; it offers detailed customer service tools such as on-line
help, product instructions, warranty information, on-line customer feedback forms and
questionnaires and interactive sessions or chat groups made up of other customers. The degree
of promotional techniques used can range from fairly simple banners that direct users to Web
sites containing promotional strategies, to interactive games that sustain users’ attention for
longer periods of time. During these periods of interaction, greater levels of information may
be obtained about users and companies can build customer loyalty. In scenario 3, companies
interact with users on many different levels, but the Web sites still do not act as direct on-line
distribution channels for products. Instead, these sites refer users to product retailers or service
agents or facilitate initial contact for users. The main difference between scenarios 2 and 3 is
that scenario 3 provides a higher degree of measurability of Web site effectiveness, depending
on how well the site motivates users to respond to questions. This type of Web site is fully
interactive, with the potential for a high degree of responsiveness on the part of users, thereby
providing a high degree of measurability of effectiveness. This level of interactivity is
necessary for focused promotional efforts. According to surveys conducted by Yankelovich
Partners, Inc., 76% of on-line customers are willing to provide personal information if it will
help them obtain a more customized product or service, 92% are willing to talk about their
hobbies and interests, 77% are willing to endure short surveys, 73% are willing to provide
demographic information about themselves and 67% are willing to provide their names
(Marketing News, 1998). These statistics improve even more if some type of helpful service is
provided gratis; for instance, some Web sites offer valuable consumer information or helpful
tips in exchange for consumer response.
Scenario 4 represents a complex situation where businesses expand Web sites to include
on-line ordering of products and services. In other words, the Web site becomes a
distribution channel for the business. There are two means by which the Internet acts as part
of businesses’ distribution channels. First, it can serve as a direct channel where digital
products are sent from the business to the user on-line (Frost and Strauss, 1998). For example,
a travel agency can download travel reservations over the Internet or a software company can
download software applications in digital form to customers. Some record companies provide
information about recording artists or provide users with the option of downloading songs
from the company’s repository of compact discs.
In the second means, the Internet can be used by businesses as an indirect distribution
channel (Frost and Strauss, 1998); examples include the increasingly popular cybermall and
shopping centre. These shopping sites can range from a fairly simple catalogue of on-line
products to very sophisticated sites where users can mix and match products. Eddie Bauer is
one example of a retail clothing company that uses this approach of giving on-line shoppers
hands-on experience (Weimer, 1998). Shoppers can combine garments on-line to see how
they look before purchasing them. Users must provide certain kinds of information in order
to complete the sale on-line and it is this feature that makes scenario 4 the most effective for
focusing promotions and measuring Web site effectiveness. If a question is asked by a business
and the user does not ll in the space, a message appears that states that the order form must
be completed in its entirety or the order cannot be fullled. Even though the user has the
option of cancelling the order at this point, he or she has shown an active interest in the
product and is more likely to provide the information requested to complete the order.
Offering free consumer shopping tips has proven to be an effective means of motivating
consumers to share information that they may otherwise be hesitant to provide. It is at this
level of interactivity that businesses have the greatest leverage to obtain demographic and
psychographic data directly from users. At this stage, businesses can develop fast, reliable and
comprehensive marketing information. In addition, businesses can ascertain the true make-up
of visitors to their Web sites, allowing them to improve their effectiveness. These types of
Web sites are the fastest growing sites on the Internet, along with those that accommodate
users by offering chat rooms, messaging centres, useful information and free merchandise
(Marketing News, 1998).
Scenario 4 also represents a Web site that uses multimedia to interact with users. A
company’s market researchers might use video clips to assist them in conducting on-line
product surveys. Samples of video games, lms or other products that lend themselves to
multimedia presentations may be displayed. This trend in multimedia videoconferencing is
growing in popularity as a Web promotion; it enables a more personal, one-on-one approach
with the Internet user. In addition, it enables the extension of interaction time between on-
line marketers and consumers, setting a strong foundation for a business relationship that will
lead to a sale.
While each of these four scenarios presents a sequence towards greater commitment on the
part of businesses desiring to establish an Internet presence, a business may use any
combination of these scenarios with varying levels of promotional techniques. The actual
Web site at any of these scenarios can vary from simple to extremely complex, the
complexity of which will be reected in the cost of the site. A Web site established at the
level that scenario 4 represents can be quite costly because it requires interactivity, is designed
to motivate users to respond by ordering products or services and most often contains a high
degree of sophisticated promotional techniques. These promotional techniques can range from
simple to complicated and inexpensive to costly.
THE COMPETITIVE EDGE

Internet users control which Web sites they visit, how long they remain at a site and whether
or not they plan to visit the site on an ongoing basis or purchase a product or service. Unlike
television, where viewers have no say in what is aired on their screens, the Internet user is in
complete charge (Neuborne and Hof, 1998). Banner advertisements and interstitial pop-up
advertisements have grown less effective on the Internet and consumers now tend to ignore
them (Neuborne and Hof, 1998). Television tactics do not work well in cyberspace. The
effectiveness of a cyberspace advertisement is determined by how well the business manages to
persuade consumers to participate actively in their marketing efforts (Neuborne and Hof,
1998). The most successful of the new approaches involves brand marketing with something
of value given in exchange for information; that item can be anything from a free sample or a
time-saving hint to valuable consumer information. Known as ‘rational branding’, this method
rewards the consumer for listening or responding to an advertisement; General Motors takes
this idea to great heights with its Saturn Web site, where on-line customers can access a
lease-price calculator to assess costs and use an interactive design shop to view motor vehicle
options (Neuborne and Hof, 1998). Like traditional advertising, the Web advertisement can
be emotionally laden, but for it to work in cyberspace with an audience that controls the
outcome, something has to be provided. The general motto ‘more help and less hype’ is
indeed wise to remember in the world of on-line promoting.
Because competition for the user’s attention is more vigorous in this arena, advertisers have
to be more creative than their competitors. On-line shoppers do not necessarily have the
tools for discerning the advantages and disadvantages of thousands of advertisers, with the
exception of brand name recognition. On-line brand name creation is difcult to accomplish,
but is absolutely necessary to gain an edge. An on-line strategy backed by traditional
marketing methods is necessary to establish and raise a brand on-line. If familiarity for a brand
name is established in a consumer’s mind before he or she goes on-line, seeing that brand
name in cyberspace among hundreds of other brand names may make the critical difference.
One example of this is the Martha Stewart Living web site that has succeeded in attracting
millions of visitors by promoting an online supplement to the daily television show. By

offering useful tips, this web site provides a benet to users. It is this win-win approach that
most often succeeds in persuading users to provide personal information about their
preferences.
THE COMMUNICATION FACTOR

Consumers dene themselves by the Web sites they frequent on the Internet. The Internet
provides the perfect means of targeting specic customer segments and focusing marketing
efforts on those segments (Chase, 1996, www.chaseonline.com.). The Internet is both
interactive and consumer driven. This interactivity is what makes the Internet a unique tool
for implementing a new marketing communications strategy. The Internet offers the potential
for marketers and consumers to communicate directly with each other.
How communications are implemented with on-line users impacts on how successful
businesses are at marketing on-line. With the diminished effectiveness of banners, buttons and
pop-ups, businesses are starting to solicit on-line consumers for feedback. Instead of offending
or annoying potential customers with ineffective methods, it would behove advertisers to
discover ways of engaging the on-line consumer so that a win–win exchange occurs. Lessons
have been learned by some of the biggest and best in business. Procter & Gamble’s full-
screen, in-your-face drink advertisements for Sunny Delight quickly became controversial
because of their intrusive nature of appearing before the user got to the desired Web site
(Himelstein et al., 1997). AT&T found out the hard way that its well-intended advertisement
featuring a noisy woman knocking at a door to talk about communication services backred
by annoying customers. AT&T nally stopped the advertisement and went back to the
drawing board (Himelstein et al., 1997). Using the rational branding approach, Dell
Computer, General Motors, Disney and Mastercard are just a few who have discovered the
secret to success with Web sites that offer concrete services in exchange for consumer
response (Neuborne and Hof, 1998).
Marketing strategists for the Internet can greatly increase their chances of success by
carefully planning and implementing their communications approaches. Ideally, the direct
contact with users enabled by the Internet provides information critical for the marketing
communications manager in determining what customers want or need. Through the
Internet, businesses can engage customers in one-on-one conversations, obtain valuable
demographic and psychographic data and nurture ongoing relationships (Marketing News,
1998). Furthermore, by capturing feedback from customers, businesses can build databases for
future direct mailings. This strategy provides businesses with additional opportunities of
rening and enhancing their entire communications strategies, including but not limited to
the Internet.
TECHNIQUES FOR PROMOTING A WEB SITE

A clear promotional strategy is critical in justifying a Web site. Although setting up a simple
Web site can be inexpensive, establishing and maintaining a fully interactive Web site can
become costly. As with any successful marketing strategy, the maintenance of a fully
interactive Web site involves thorough background planning. The costs of creating
promotional strategies to draw visitors to Web sites effectively, interest them in making
purchases and keep them interested enough to visit repeatedly, can be signicant. Without a
strong promotional strategy, it is difcult to justify the costs of establishing and maintaining an
effective Web site. Competitors who spend the time and effort designing well thought-out
Web sites will most likely gain from the mistakes made by businesses that proceed without
planning.
Globalization in the information age is changing the focus of marketing from one of
homogeneity requiring mass marketing to one of heterogeneity demanding carefully focused,
niche marketing (McCann, 1995, www.duke.edu= mccann=mktfront.htm). Microprocessors
enable businesses to measure the quantity and quality of marketing data and increase
communications with consumers. Microprocessors also allow managers to contact retailers,
sales representatives and suppliers instantly. The market-place has grown fragmented, making
traditional mass marketing techniques ineffective (McCann, 1995, www.duke.edu= mccann=
cpg=cg-chg.htm).
Marketing on the Internet is akin to event marketing, where people are drawn in by the
promotion of a specic event such as a contest or an opportunity to obtain something free
(Chase, 1996, www.chaseonline.com.). Many businesses think that if their Web site looks
cutting-edge, they have done enough. The problem, however, is that there are thousands of
cutting-edge Web sites. Successful businesses have to stand out in some meaningful way,
differentiating themselves from the rest.
Jupiter Communications has predicted that, by the year 2002, Internet advertising revenues
will approach US$8 billion (£ 4.805 billion or 6.859 ecu)—some 4.1% of total advertising
budgets (Himelstein et al., 1997). Marc L. Andreesen, co-founder of Netscape Communica-
tions Corporation, stated that ‘Whatever the growth is this year [1997], it’ll be twice or three
times that next year’ (Himelstein et al., 1997, p. 137). Netscape, the leading browser, had
advertisements totalling US$24.1 million (£ 14.475 million or 20.665 million ecu) during the
second quarter of 1997 and Yahoo! (a subject-based search engine) had revenues totalling
US$23 million (£ 13.815 million or 19.722 million ecu) in the last two quarters of 1997
(Himelstein et al., 1997). What drives this increase in on-line advertising is the tremendous
increase in Internet usage. According to Forrester Research, it was estimated that there were
at least 24 million Internet users as of the third quarter of 1997, and that number is expected
to double to 52 million by 2000 (Himelstein et al., 1997). Even with these statistics, the
current Internet household penetration has only reached 20%, but is estimated to reach 67%
by 2000. While revenues reect the increases in price per advertisement, these revenues are
possible because Web sites have evolved to the point where search engine companies such as
Yahoo! can command more dollars for their services. In addition, Internet advertising is more
customer focused, which lends itself to the trend in niche marketing.
THE TECHNOLOGY
Over the last few years, many new Internet communications and promotion strategies have
been developed. Accompanying these new developments is a wide array of services which
offer varying levels of technology to help businesses accomplish their marketing commu-
nications objectives. The following paragraphs outline some of the specic services and
technologies available on the Internet which businesses can use to expand their awareness of
their Web sites or conduct business transactions.
At the very least, a Web site can be established where little or no interactivity is
implemented. An Internet address, called a uniform resource locator (URL), should be
displayed on all business communication materials, including business cards, brochures and
pamphlets, all tangible media such as diskettes or compact discs, all multimedia such as
television and radio commercials and the Web site itself. The Web site might include a
mechanism whereby users can quickly copy URLs to a bookmark or virtual address book for
easy reference and entry to the site. If a site is not interactive, it is imperative that it be cross-
promoted through every possible avenue. Customer awareness through mass advertising is the
goal of this type of Web site, not niche advertising. Therefore, all feasible means must be
used to distribute the Internet address to as many potential customers as possible.
This simple, relatively inexpensive type of Web site enables businesses to develop or
reinforce customer awareness of their businesses and Web sites. Techniques for measuring
visits are limited to counting the number of visits to the Web site or surveying customers off-
line. Businesses may set up e-mail accounts for customer enquiries, but these types of Web
site are not geared for customer surveys, sophisticated promotional efforts or any signicant
level of interaction. This level of technology requires very little capital investment, but it is
the least effective approach to marketing on the Internet, given the decline in mass marketing
and the trend towards niche marketing.
Another type of technology involves establishing a Web site and registering it with a search
engine. A search engine is a large repository of URLs or Web site addresses located on the
Internet. Some examples of search engines are Yahoo!, Excite and Infoseek. From the
perspective of Internet users, the search engine categorizes Web sites so that users can search
for specic topics by entering a keyword. The search engine responds by listing all registered
Web sites related to that topic. From the perspective of businesses that register with a search
engine, they purchase the right to have their URLs appear with a brief explanation about the
products and services or topics discussed, along with a list of other sites related to the same
topic. This information appears each time users enter a keyword. Many businesses can buy
the same keyword from the search engine so that their Web site URLs are listed among those
of competitors.
These keywords are effective means of businesses gaining exposure in particular industries
or categories. Businesses already compete to buy keywords that are easy to remember and
which increase the chances that Internet users will visit their Web sites. For instance, Toyota
might buy the word ‘car’ from a search engine operator such as Yahoo! so that, every time an
Internet user enters the keyword car, Toyota’s Web site address is listed as one of the possible
sites a user can visit. Some businesses buy keywords that have nothing to do with their
business, but provide them with exposure to a particular market-place segment. IBM has
purchased around 200 keywords and once bought the word ‘Microsoft’ during one of its
marketing campaigns (Himelstein et al., 1997).
The objective of registering with a search engine is to provide users who are actively
seeking information about a particular topic with the opportunity of uncovering related sites,
selecting from them and visiting however many they wish to explore. Similarly, a person may
remember that a business has a Web site, having heard it mentioned on television or seen it
in the newspaper. However, a person may not remember the full name of the business or its
exact UR L, as these can be quite long and cryptic. Once the person enters all or part of the
business name into the search window, the search engine will return the names and URLs of
all businesses registered that match the name or partial name entered by the user.
This technique is easy to implement and some search engine operators allow companies to
register at little or no cost. However, with increased competition and demand, other search
engine operators are starting to command higher prices. Generally, search engine operators
charge a rate per 1000 times an advertisement is displayed for a business, currently around
US$10–40 (£ 6–24 or 8.57–34.28 ecu) (Anders, 1998). Internet advertisements can be just as
costly as television advertisements, causing some marketers to question their justication.
However, the interactive nature of the Internet makes this media a stronger candidate for
engaging the Internet surfer. Therefore, it is important that a business registers with a search
engine as this provides an excellent opportunity for the business of introducing its name and
delivering it to potential customers seeking information about a related topic, product or
service.
Registering a business Web site with a search engine is fairly straightforward and takes little
time. The critical action lies in describing a business’ products or services effectively in the
limited space provided. This description might be the only exposure a prospective customer
receives of a business. Therefore, it is imperative that this brief description be as effective as
possible. Should the business change its focus or become larger, it is crucial that the business
update the description at the search engine and that the Web site be correctly categorized on
the search engine. R eviewing and updating search engine data are critical in maintaining this
type of promotion.
Another method of advertising a Web site is by enlisting with an Internet Yellow Pages
service. GTE’s Super Pages is one of many growing on-line directory services where an
Internet user can enter a business name or category and obtain the exact URL. This method
is similar to registering with a search engine in that it nds the Web site if users do not have
the URLs. Yellow Page registration costs range from free to inexpensive. The use of
hyperlinks in the form of banners which may transfer visitors from one site to another is an
effective tool; Amazon.com and barnesandnoble.com have had tremendous success with their
Web site hyperlinks. While banners have not proven to be effective in many areas of
advertising, they have proven effective in providing this type of service.
Businesses can also participate in the growing plethora of sponsored chat groups on the
Internet. Industry-oriented chat groups have been created where users can discuss hobbies and
likes and dislikes about certain businesses and obtain advice from fellow users on how to
handle problems. Some businesses sponsor chat groups to establish one-on-one contact with
existing and potential customers. This service can provide a tremendous tool in gathering data
from chat group participants and enhancing customer contact. A chat group might be a
homogeneous group of enthusiasts for a business’ products or it might include disgruntled
customers who welcome the opportunity to vent their frustrations over a company’s products
or services. Because of this growing trend towards corporate chat rooms on the Internet,
businesses are learning to respond effectively with high visibility; however, this often translates
into a loss of control of corporate image (Dyson, 1997).
The Internet not only allows a company to speak with customers, but it also allows anyone
to reach and discuss a company with chat group participants. Every detail about a company,
including mistakes, moves into the public domain. Companies using the Internet must learn
how to use this free ow of information to their advantage, responding to feedback rather
than ignoring or suppressing it. Companies must learn to inuence that which, in reality, they
no longer control (Dyson, 1997).
The Internet wields a double-edged sword over businesses that advertise on-line
worldwide. Businesses can work proactively with these opportunities and exploit them to
their advantage or they can react to them negatively and run the risk of losing ground in an
excruciatingly visible arena. While on-line chat groups can enhance direct communications
with existing and potential customers, this communication cannot be accomplished without
cautious and diplomatic planning, implementation and control.
The establishment of chat groups on the Internet involves a high level of technology; a
simple Web site does not accommodate this level of interactivity. As mentioned earlier, the
creation of a Web site can range from simple to complex, depending on the attributes of the
site and its functions. Web browsers such as Netscape and Microsoft Internet Explorer can
search out Web sites because their pages of text and graphics are written in codes called
hypertext mark-up language (HTML) which browsers recognize. Hypertext is a word or
group of words contained on a Web page which, when selected, transports the user to
another Web site; it links one Web site to another. Hypertext is not limited to words and
phrases; it can be applied to pictures, images, buttons, banners, multimedia, video
conferencing or any type of advertising that can be created on a Web page.
Banners are simply graphic images with HTML codes which link to another Web site.
Buttons are graphic images as well, but smaller and usually less decorative than banners.
Banners have been referred to as the ‘billboards of cyberspace’. They can appear anywhere on
a Web page and their purpose is to transport the user from one Web site to another by
clicking the mouse on the banner. Toyota is one example of a business which enjoys a
powerful response to its banners. Toyota reported that, for the year ending May 1997,
152 000 Web users entered their name, address and personal information on the Toyota Web
site to request brochures or videos about cars (Himelstein et al., 1997). These banner
advertisements resulted in the sale of 7329 cars according to Jon Bucci, national interactive
communications manager for Toyota. He stated that ‘The Internet is the No. 1 lead generator
for Toyota’ (Himelstein et al., 1997, p. 137).
Advertisers try to place their banners strategically in case the on-line user wishes to obtain
additional information about the advertisement on the banner. If the banner is strategically
placed on another Web site and is enticing enough, users will click on the banner and visit
the site. Advertising which uses HTML can become very expensive depending on the
complexity of the advertisement and the number of sites or hyperlinks where it appears.
While advertising agencies which specialize in Web site design can be costly, many businesses
consider the benets of outsourcing these services to be a welcome trade-off, because the
work is handled by professionals who understand Internet communication.
While banners have produced outstanding results for many companies advertising on the
Internet, it appears that they have declined somewhat in popularity. It is expected that
companies will spend less on banner advertisements in 1999 (Neuborne and Hof, 1998). On-
line customers have become bored with banners and irritated with interstitial pop-ups; they
prefer opportunities of being more active on-line (Neuborne and Hof, 1998). The transition
towards helping the on-line consumer by providing some kind of service or information is
another example of rational branding.
A similar method of using HTML involves placing a hyperline for a business site on the
Web site of another business. Some businesses provide this service to each other in a
reciprocal arrangement. For example, a hotel with a Web site might place the hyperlinked
logo for a travel agency on its Web site in exchange for the placement of its hyperlinked logo
on the travel agency’s site. This type of marketing is referred to as afnity marketing and
serves to broaden users’ exposure to other related businesses. This communications technique
can be extremely effective; a user’s search is simplied to clicking on the logo of a business to
nd a related site. This arrangement creates a win–win situation for businesses that engage in
this type of reciprocal agreement and provides additional exposure at no additional cost. A
variation on afnity marketing occurs when businesses sponsor a Web site and sell their
advertisement space to other businesses.
Having described the more prominent types of technologies available to businesses that
want to create a presence on the Internet, it may be useful to include a discussion on the
costs of building a Web site. Crain Communications (1997, www.abundant.com=
webpriceindex.html) has published information concerning the median prices of Web sites
in cities across the USA, based on services ranging from basic to sophisticated. Table 1
displays the costs for three scenarios in three cities representing different regions of the USA.
Table 1 presents hypothetical businesses that have varying objectives for marketing their
products or services on the Web. The prices vary according to specic services, which can
uctuate within any one package; however, these prices serve as a guideline for businesses
considering establishing a Web site and conducting transactions on the Internet. Crain
Communications have provided greater detail about these services on their NetMarketing Web
site (http:==www.abundant.com=webpriceindex.html), as well as survey ndings related to a
comprehensive list of other Web site technologies (Crain Communications, 1997, www.
abundant.com=webpriceindex.html).
QUALITY VERSUS QUANTITY IN MEASURING EFFECTIVENESS

Microprocessors have made it possible to quantify the number of visits made to a Web site by
click-through rates which measure the number of times an on-line user clicks on an
advertisement for additional information. The challenge arises in measuring the quality of
promotional efforts. If it is effective, a Web site will encourage consumers to visit and explore
the Web site until they purchase products or services. R epeat visits can be encouraged in a
variety of ways, including sponsoring contests with prizes, giving away merchandise in
exchange for visiting the site and providing practical information to on-line shoppers. While
some businesses only obtain a count of the number of hits made to their Web site each day,
other businesses want meaningful information about their Web site visitors such as
demographics or psychographics. Counting hits alone can be misleading; the number of
hits could give the impression that the site is effective in attracting a large number of users,
when in reality many of those numbers might represent return visits from the same user.
Counting the number of hits only provides one kind of information—the number of hits to
the banner. It does not effectively measure the success of the banner because it cannot
differentiate between repeat visitors, nor does it provide meaningful marketing data for
subsequent marketing efforts.
TABLE 1. Costs of Internet services in three US cities

Services (September 1997) New York City Chicago Los Angeles
Design=Web site mapping (20 pages) US$85 000 US$18 900 US$28 300
Server and domain registration £51 945 £11 352 £16 998
Web-based publishing forms 72 886 ecu 16 206 ecu 24 267 ecu
E-mail=Fax software
Training of employees
Internet service (dial up for ve users)
Design=Web site mapping (100 pages) US$185 000 US$89 150 US$104 000
Server and domain registration £111 118 £53 547 £62 466
Web-based publishing forms 158 634 ecu 76 177 ecu 89 179 ecu
Training of employees
Internet service (dial up for 25 users)
Custom programming (Java)
Search engine
Password-protected directories
Database services
Design=Web site mapping US$425 000 US$175 000 US$275 000
Server hosting and maintenance £255 271 £105 111 £165 175
Training of employees 364 432 ecu 150 060 ecu 235 809 ecu
Custom programming (Java)
Search engine
Password-protected directories
Database software and implementation
Chat software and implementation
Dynamic page generation
Digitization and integration of sound=video
Secure transaction capability
Consulting for the media buy=advertisement
banners
Six advertisement banners
Crain Communications (1997) (www.abundant.com=webpriceindex.html).
Effective market research involves much more than counting and Internet market research
has tremendous advantages. The elimination of interviewer bias and error, potential for
multimedia interviews, cleaner data editing, randomization of brands, speed in conducting
surveys and minimal cost in conducting on-line surveys are some of the major advantages on-
line market research provides compared to traditional market research (McCullough, 1998).
Surveys conducted over the Internet allow researchers a greater degree of control concerning
the quality of data. Market research conducted over the Web will broaden the customer
feedback used to make business decisions. Approximately 78 million people use the Web
from their homes; by 2000, it is estimated that 163 million users worldwide will use the
Internet, greatly increasing Web access over the coming years. In summary, Internet market
research is good, fast and cheap (McCullough, 1998).
As the Internet evolves into a more sophisticated environment for marketing, clearer
standards for measuring Web site effectiveness will also evolve. The Internet is still in its early
stages of growth and no ofcial standards are currently in place. A great deal of debate is
ongoing concerning on-line industry standards. In 1996 the Coalition for Advertising
Supporting Information and Entertainment (CASIE), a group of advertising organizations,
published the CASIE Guiding Principles of Interactive Media Audience Measurement (www.
commercepark.com=AAAA=bc=casie.guide.htmo). The objective of this report was to provide
some type of standard by which responses to interactive media can be quantied. While the
report is not a measuring device in itself, it does provide some guidelines for businesses to
follow in measuring the various techniques they deploy in their on-line marketing
communications strategies.
Advances are being made in efforts to understand the usefulness of the Internet as a critical
component in marketing communications strategies. On 6 March 1996, the Internet
Advertising Bureau (IAB) was formed with a mission to ‘promote the use and effectiveness of
online advertising’ (IAB Home Page, www2.vnu.co.uk=ib=news=9608=iab.htm). The IAB
and other similar organizations will help shape standards for measuring the effectiveness of the
various advertising and promotional technologies used on-line. Their Web site (www2.vnu.
co.uk=ib=news=9608=iab.htm) includes topics such as ‘Online Media Strategies for Internet

Advertisers’ and ‘Online Advertising Effectiveness Study’.
In the meantime, continued efforts to make a Web site an interactive medium where
customers and businesses communicate directly becomes a higher priority for more businesses
every day. Efforts to improve methods that not only measure the number of visits to a Web
site but also the effectiveness of the Web site in attracting and retaining visitors to obtain
meaningful information are becoming priorities with businesses and on-line advertising
consultants. CNET offers its clients monthly statements showing demographics about the
visitors to their sites. Yahoo!, Excite, AOL and other Web-based businesses are considering
offering these services. Independent measurements of Web site effectiveness are collected by
accounting rms such as Ernst & Young, Coopers & Lybrand and Price Waterhouse.
Microsoft has started providing audited quarterly reports to its advertisers (Himelstein et al.,
1997). As the Internet grows into an advertising Mecca, the number of rms offering
objective methods of measuring Web site effectiveness will grow as well.
What businesses must understand at this point is that the incorporation of the potential of
the Internet into their overall marketing and communications strategy requires the same
careful planning, implementation and control required by any component of a marketing and
communications programme. Unless businesses understand and apply marketing principles as
they relate to the uniqueness of the Internet, Web sites may not provide the returns hoped
for. Marketing managers must be able to understand the full impact technology has (and the
Internet can have) on their business and how the Web will impact on their customers’ needs.
Managers must be able to communicate these elements to upper management and be prepared
to take action (Krauss, 1998). Once a marketing manager is prepared to deal with the
transition from a more traditional approach to marketing to one in cyberspace, that manager
will be empowered to act as the change agent for the rest of the organization.
In addition, marketing managers must address the issue of how to deal with the high level
of exposure on the Internet and the resultant vulnerability. How businesses choose to respond
to positive and negative exposure will determine how well they succeed on the Internet. In
the meantime, on-line consumers still opt for familiar brand names because they have no way
of testing new names; this situation creates a tremendous challenge for new brands. Rational
branding is how many new companies are establishing brand recognition (Neuborne and Hof,
1998). Amazon.com, America Online and Netscape Communications are three examples of
how rational branding has worked successfully in moving them from being unknown
businesses created on the Internet to the on-line giants they are today. This trend towards
offering useful information and services in exchange for consumer response is the key to
gaining the attention of on-line consumers and transforming them into repeat customers. It is
critical to understand that the Internet possesses both the potential to build and enhance brand
equity and the ability to erode or destroy it. While this may not be new in the world of
traditional marketing, the full impact of such exposure in cyberspace can be staggering.
REFERENCES
Anders, G. (1998) Internet advertising, just like its medium, is pushing boundaries. Wall Street Journal,
CCXXXII(106, 30 November), A1.
Cerf, V. (1997) The history of the Internet, An interview with Vinton Cerf. Mediamente, World Wide
Web, 13 September.
Dyson, E. (1997) Mirror, mirror on the wall. Harvard Business Review, 75(5), 24–6.
Frost, R.D. and Strauss, J. (1998) The Internet: A New Marketing ToolÐ 1998. Upper Saddle River, NJ:
Prentice Hall.
Himelstein, L., Neuborne, E. and Eng, P. (1997) Web ads start to click. Business Week 6 October,
128–38.
Krauss, M. (1998) The Web and the company must work together. Marketing News 14 September, 8.
McCullough, D. (1998) Web-based market research ushers in new age. Marketing News, 27–30.
Marketing News (1998) Interactive marketing. Marketing News 14 September, 9.
Neuborne, E. and Hof, R.D. (1998) Branding on the Net. Business Week 9 November, 74–86.
Weimar, D. (1998) Can I try (click) that blouse (drag) in blue? Business Week 9 November, 86.
BIOGRAPHIES
Doris C. Van Doren is a professor of marketing at the Sellinger School of Business and
Management, Loyola College in Maryland. She publishes regularly in the areas of services
marketing, health care marketing and the marketing of high-tech products. She consults with
businesses in the Baltimore–Washington corridor and teaches marketing strategy in the
Executive MBA programme.
Deborah Fechner received her masters of business administration at the Sellinger School of
Business and Management, Loyola College in Maryland. She currently works as an Internet
marketing manager for General Electric Information Services.
Kathy Green-Adelsberger is completing her last semester in the Loyola College MBA
program with a concentration in Management Information Systems. She specializes in the
design and facilitation of all aspects of technological in-house training and documentation
needs of the business enterprise.

Van Doren 2000

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Promotional strategies on the

To link to this article: http://dx.doi.org/10.1080/135272600345534

PLEASE SCROLL DOWN FOR ARTICLE

P romotional strategies on the World Wide

FOUR POSSIBLE SCENARIOS

1 ê Web site only/information

2 Web site for limited interactivity

3 Full interaction capabilities

Focused market research capabilities

FIGURE 1. Four possible scenarios for promoting on the Internet.

THE COMPETITIVE EDGE

millions of visitors by promoting an online supplement to the daily television show. By

THE COMMUNICATION FACTOR

TECHNIQUES FOR PROMOTING A WEB SITE

QUALITY VERSUS QUANTITY IN MEASURING EFFECTIVENESS

TABLE 1. Costs of Internet services in three US cities

co.uk=ib=news=9608=iab.htm) includes topics such as ‘Online Media Strategies for Internet

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