Marketing Single-Product Websites vs. Multi-Product Stores; Marketing and Sales Dynamics Differ

by Dr. Ralph F. Wilson
Web Commerce Today, Issue 7, February 15, 1998

---

You've got a great product you'd like to sell over the Internet. It's unique, meets a widely felt need, and allows a generous mark-up. All you need is a Web page or two and a secure order form. But how do you get people to see this wonder product?

The mail order industry has long recognized four different types of direct sales approaches:

1. One-shot promotes a single offer with no follow-up product.
2. Inquiry and follow-up, where the initial inquiry prompts follow-up, often used for more expensive products.
3. Repeat methods, such as film developers and book-of-the-month club offers, invite return shoppers. After purchasing a replica Civil War belt buckle, you might suggest by e-mail an offer of a similar or related product (called a "bounce-back"), such as the video of an Antietam battle reenactment.
4. Catalog sales provide a variety of related products for purchase, and invite repeat visits and repeat sales.

Single-product sites generally fall into the first two categories: "one-shot" and "inquiry and follow-up." Marketing single-product websites is different from multi-product stores in several ways:

	Single Product Sites	Multi-Product Niche Stores
Market	Market must be created. Product must be seen to be appreciated	Market exists. Class of products is already valued.
Sense of need	Not aware of product capabilities	Interest in products of this type
Search Engine Keywords	No one searches for a product they don't know about. Use search words for product class and lifestyle	Search words for product class, lifestyle, brand name
Search Engine Potential	Low potential. Only one or two pages may be searched	Moderate potential. Many pages may be able to be searched, though store software may stop search spiders.
Customer sales	One shot sale	Desire repeat sales
Product Display pages	One or two	Several to many
Order Taking Software	Simple form with SSL secure server	Store Software, shopping cart, with SSL secure server
Chance of purchase on website	Low to moderate	Moderate to good, since more products to select from
Typical Mark-up	3:1 to 4:1	2:1 (similar to retail)
Marketing Costs	Must be carried by single product	May be spread over many products

 

 Too often the Internet is seen as an inexpensive way to do direct marketing. Let's just say it is less expensive. Three big advantages of Web sales over traditional are: (1) low website development and hosting costs, (2) freedom to give as much information as necessary about the product without expensive mail-outs, and (3) the ability to take a credit card and consummate the sale easily and immediately. But, just like traditional mail order, you still have to get the initial information about the product to the consumer.

Mail order has traditionally done well with single products. Four methods are commonly used:

1. Classified ads that are carefully tested and then placed in targeted periodicals
2. Display ads in targeted periodicals
3. Direct mailings to targeted lists
4. Infomercials for higher-ticket items

Advertising costs (except classified ads) are often high, but since there is an adequate mark-up, these costs can be borne and a profit still be made.

But the Internet is significantly different from traditional media:

Traditional Media	Internet Equivalent	Relative Cost of Internet to Traditional
Classified ads in targeted periodicals	Classified ad networks	Similar
Display ads	Banner ads	Similar or more
Direct mailings	Spam or opt-in targeted lists	Minimal (spam) or similar (targeted opt-in lists)
Infomercial	N/A	N/A

Many small business people get frustrated trying to generate enough traffic to single-product websites. Since the appeal of single-product sites tends to be very focused, they don't attract a general audience. Nor can you count on repeat traffic.

I want to suggest several approaches:

• Explore classified ad networks (Web Marketing Today will be discussing this in the March 1, 1998 issue.)
• Become a regular contributor to news groups and mailing lists, but resist the temptation for the hard sell; let your carefully designed e-mail "signature" do the promoting.
• Place ads in the "business opportunities" type of news groups (though I'm not sure anyone actually reads them)
• Employ a list broker to send e-mail to a carefully targeted list. Expect to pay a similar amount per name as you would for traditional lists, though your actual mailing costs are very low.
• Design some unique banner ads that pique curiosity and place them on sites that attract your prospective buyer profile.
• Use traditional media in tandem with your website. Drive people to see the product and make a purchase using tried-and-true traditional media.

Related articles:

"What is the "Ideal" Internet Product? How to Select Products to Sell on Your Website," Web Commerce Today, Issue 7, February 15, 1998. http://www.wilsonweb.com/wct1/980215select.cfm

"Niche Marketing," Web Marketing Today, Issue 12, April 27, 1996. http://www.wilsonweb.com/articles/niche.htm

---

You may read other articles from this issue