chapter 6 e-marketing and information distribution e-commerce and information technology in...

Chapter 6Chapter 6

E-marketing And Information E-marketing And Information DistributionDistribution

E-commerce and Information E-commerce and Information Technology in Hospitality and TourismTechnology in Hospitality and Tourism

Copyright 2004 by Zongqing Zhou, PhDNiagara University

Learning ObjectivesLearning Objectives

• After you complete your study of this After you complete your study of this chapter, you should be able to:chapter, you should be able to:– Know how to use e-mail for marketing communications.Know how to use e-mail for marketing communications.– Understand the difference between e-mail and e-Understand the difference between e-mail and e-

newsletters when used for marketing purposes.newsletters when used for marketing purposes.– Know how to use Usenet and mailing lists for marketing.Know how to use Usenet and mailing lists for marketing.– Use chat rooms for marketing.Use chat rooms for marketing.– Build a successful Web site to increase customer loyalty.Build a successful Web site to increase customer loyalty.– Know how to conduct advertising, promotion, and public Know how to conduct advertising, promotion, and public

relations on the Internet.relations on the Internet.– Understand how to combine traditional marketing with Understand how to combine traditional marketing with

e-marketing to increase the effectiveness of a marketing e-marketing to increase the effectiveness of a marketing campaign.campaign.

– Understand push and pull marketing, partnership Understand push and pull marketing, partnership marketing, and Webcasting marketing, and Webcasting

6.1 Introduction6.1 Introduction

• The classic four P’s of marketing are The classic four P’s of marketing are product, place (distribution), price, and product, place (distribution), price, and promotion.promotion.

• Two of the most important elements in Two of the most important elements in marketing are to find out the needs and marketing are to find out the needs and wants of your target consumers and then wants of your target consumers and then find ways to reach them.find ways to reach them.

• The Internet has provided such a vehicle The Internet has provided such a vehicle for accomplishing both tasks.for accomplishing both tasks.

6.2 Internet Marketing Plan6.2 Internet Marketing Plan

• Differences between e-marketing Differences between e-marketing and traditional marketing: and traditional marketing: E-marketing operates in a total new E-marketing operates in a total new

environment in terms of time, speed, environment in terms of time, speed, market segmentation, data-collecting market segmentation, data-collecting means, information distribution and means, information distribution and brand building.brand building.

The Internet has made some marketing The Internet has made some marketing activities much easier while rending activities much easier while rending others more difficult to carry out. others more difficult to carry out.

6.2 Internet Marketing Plan 6.2 Internet Marketing Plan (cont.)(cont.)

• In e-marketing planning, ask the In e-marketing planning, ask the following traditional marketing following traditional marketing questions.questions.Where are you now (your product/service; Where are you now (your product/service;

your market positioning)?your market positioning)?Where are you going to be (marketing Where are you going to be (marketing

objectives, market positioning)?objectives, market positioning)?How are you going to get there (marketing How are you going to get there (marketing

strategies; marketing mix, budgeting)?strategies; marketing mix, budgeting)?How do you make sure you get there How do you make sure you get there

(implementation)?(implementation)?How do you know you get there How do you know you get there

(measurement; evaluation)?(measurement; evaluation)?

6.2 Internet Marketing Plan 6.2 Internet Marketing Plan (cont.)(cont.)

• The Unique Selling PropositionThe Unique Selling Proposition (USP) (USP) USP defines what makes your USP defines what makes your business unique from every other business unique from every other competitor in a particular field and competitor in a particular field and sorts out the precise niche that your sorts out the precise niche that your e-commerce seeks to fill. e-commerce seeks to fill.

6.3 Internet Marketing Tools6.3 Internet Marketing Tools

• E-mail MarketingE-mail Marketing

• E-newsletter MarketingE-newsletter Marketing

• Usenet and Mailing List MarketingUsenet and Mailing List Marketing

• Chat-room MarketingChat-room Marketing

• The Web Site as Marketing ToolThe Web Site as Marketing Tool

• Push MarketingPush Marketing

• Pull MarketingPull Marketing

E-mail MarketingE-mail Marketing• Advantages of e-mail marketing over Advantages of e-mail marketing over

traditional marketing:traditional marketing:1.1. Inexpensive: mailing out a catalog can cost Inexpensive: mailing out a catalog can cost

$1 per customer, while a personalized e-$1 per customer, while a personalized e-mail costs about 5 cents. mail costs about 5 cents.

2.2. Effective: E-mail messages have been Effective: E-mail messages have been found to be more effective than the more found to be more effective than the more expensive banner advertisement. expensive banner advertisement.

3.3. We can be almost certain that as long as We can be almost certain that as long as one can use the Internet, one most likely one can use the Internet, one most likely will own an e-mail account and therefore will own an e-mail account and therefore can be accessible by email marketers. can be accessible by email marketers.

E-mail Marketing (cont.)E-mail Marketing (cont.)

4.4.Personalization and customization: an Personalization and customization: an e-mail message can be personalized e-mail message can be personalized and the content customized.and the content customized.

5.5.Timeliness: e-mail can deliver timely Timeliness: e-mail can deliver timely marketing information to target marketing information to target consumers. In today’s rapidly changing consumers. In today’s rapidly changing world, nothing beats timely information.world, nothing beats timely information.

6.6.Storage: E-mail messages stays in the Storage: E-mail messages stays in the inbox of consumers until read or inbox of consumers until read or deleted. It is harder to ignore an e-mail deleted. It is harder to ignore an e-mail message than an online banner ad.message than an online banner ad.

E-mail Marketing (cont.)E-mail Marketing (cont.)

7.7.Measurable: Mechanisms can be Measurable: Mechanisms can be built into an e-mail message so that built into an e-mail message so that when the message is opened and when the message is opened and read, it will send back a message to read, it will send back a message to that effect, telling marketers that effect, telling marketers instantly how many targeted instantly how many targeted consumers opened the e-mail.consumers opened the e-mail.

8.8.Shorter response time: e-mail Shorter response time: e-mail marketing has the shortest response marketing has the shortest response time than any other medium.time than any other medium.

E-mail Marketing Cont’dE-mail Marketing Cont’d

•Factors for success of an e-mail Factors for success of an e-mail marketing campaign:marketing campaign:– Correctly identify the target audienceCorrectly identify the target audience– Personalize the emailPersonalize the email– Customize the messageCustomize the message– Deliver only the content that the consumer Deliver only the content that the consumer

needs and wantsneeds and wants– Build consumer trust by providing Build consumer trust by providing

assurance of privacy and the option to stop assurance of privacy and the option to stop receiving the email.receiving the email.


•Online consumers can be Online consumers can be classified into six segments:classified into six segments: – SimpliersSimpliers– SurfersSurfers– BargainersBargainers– ConnectorsConnectors– RoutinersRoutiners– SportstersSportsters. .


• Ways to collect the e-mail addresses:Ways to collect the e-mail addresses:– You can either use the e-mail addresses you You can either use the e-mail addresses you

have already collected through your customer have already collected through your customer database or mail out a letter to ask for e-mail database or mail out a letter to ask for e-mail addresses. addresses.

– You can ask your visitors to sign in or register You can ask your visitors to sign in or register on your Web site in exchange for discounts or on your Web site in exchange for discounts or free e-mail information about products or free e-mail information about products or services they are interested in.services they are interested in.

– You can also go to companies who specialize in You can also go to companies who specialize in so-called so-called opt-in e-mail marketing.opt-in e-mail marketing.


•Steps in email marketing:Steps in email marketing:– Obtained the customer’s e-mail list by market Obtained the customer’s e-mail list by market

segmentationsegmentation– Personalize your message by using the Personalize your message by using the

customer’s name.customer’s name.– The next step is to customize the content, which The next step is to customize the content, which

means to deliver only the information that would means to deliver only the information that would be of interest to consumers to generate a higher be of interest to consumers to generate a higher response rate. response rate.

– Avoid being accused of spamming,Avoid being accused of spamming, or sending or sending mass e-mails to people who have not indicated an mass e-mails to people who have not indicated an interest in receiving e-mail from you.interest in receiving e-mail from you.

E-mail Marketing Cont’dE-mail Marketing Cont’d• Why spamming should be avoided: Why spamming should be avoided:

– Spamming can cause hard feelings against a Spamming can cause hard feelings against a business from the targeted receivers since business from the targeted receivers since they feel their privacy is being violated. they feel their privacy is being violated.

– Spammed messages will not be effective since Spammed messages will not be effective since they most likely are not tailored to the needs they most likely are not tailored to the needs and wants of the targeted receivers. and wants of the targeted receivers.

– Spamming will most likely be outlawed in the Spamming will most likely be outlawed in the future, as the federal government is future, as the federal government is considering introducing legislation, such as the considering introducing legislation, such as the Unsolicited Electronic Mail Act, to protect Unsolicited Electronic Mail Act, to protect legitimate e-mail communication and legitimate e-mail communication and consumer privacy.consumer privacy.


• The increased capability of email The increased capability of email programs:programs:– HTML formatHTML format– Voice capabilityVoice capability– Streaming videoStreaming video– MultimediaMultimedia– No plug-ins required for multimedia No plug-ins required for multimedia

presentation presentation


•Things to do in using opt-in e-Things to do in using opt-in e-mail marketing:mail marketing:– Provide the receiver with an option to Provide the receiver with an option to

opt out. opt out. – For long-term customer relationships, For long-term customer relationships,

building trust in your company should building trust in your company should outweigh any short-term gain in forcing outweigh any short-term gain in forcing exposure to your marketing messages.exposure to your marketing messages.

– Even if you have the permission to send Even if you have the permission to send marketing e-mail messages, you should marketing e-mail messages, you should make sure that you do not overwhelm make sure that you do not overwhelm your customers with excessive e-mail your customers with excessive e-mail messages or unsolicited contents.messages or unsolicited contents.

E-newsletter MarketingE-newsletter Marketing

• An e-newsletter is a special kind of email An e-newsletter is a special kind of email published and sent to the target audience on published and sent to the target audience on a regular basis.a regular basis.

• It has the convenience of the e-mail as well It has the convenience of the e-mail as well as the power of a newsletter in which as the power of a newsletter in which customized information and marketing customized information and marketing message can be presented in an attractive message can be presented in an attractive way.way.

• E-newsletter are sent to people who have E-newsletter are sent to people who have given permission first and usually built into given permission first and usually built into the company’s website.the company’s website.

e-newsletter Email

Typically, subscription-based

A collection of email addresses

Publication standards In any formats

Audience highly targeted

Audience not as highly targeted

Readership likely to be higher

Readership low due to spam suspicion

More effective when using personalization and customization

Not as effective when using personalization and customization

Typically, sent out with regular intervals

No preset schedules

Differences between email and e-newsletter

E-newsletter Marketing E-newsletter Marketing (cont.)(cont.)

• Strategies in the use of an e-newsletter: Strategies in the use of an e-newsletter: – The e-newsletter should be interesting and The e-newsletter should be interesting and

valuable when introducing a new product or valuable when introducing a new product or offering special sales and offers. offering special sales and offers.

– An e-newsletter should be well designed and An e-newsletter should be well designed and brief. brief.

– If you want your readers to get more details, If you want your readers to get more details, you can provide a link to your Web site for you can provide a link to your Web site for further information.further information.

– You should always provide a means for them to You should always provide a means for them to opt out in every e-newsletter sent to them. It opt out in every e-newsletter sent to them. It shows that you respect their rights and privacyshows that you respect their rights and privacy. .

E-newsletter Marketing E-newsletter Marketing (cont.)(cont.)

• Companies specialized in e-newsletter are often Companies specialized in e-newsletter are often referred to as application service providers (ASP). referred to as application service providers (ASP).

• Application Service Provider is focused exclusively Application Service Provider is focused exclusively on the full cycle of creating and distributing on the full cycle of creating and distributing newsletters.newsletters.

• An ASP is an information technology company that An ASP is an information technology company that offers a complete access solution over the Internet offers a complete access solution over the Internet to applications and related services that would to applications and related services that would otherwise have to be located in an individual’s or otherwise have to be located in an individual’s or organization’s computers.organization’s computers.

• Two of them are listed below:Two of them are listed below:– iMakeNews (www.imakenews.com) iMakeNews (www.imakenews.com) – YourMailinglistProvider YourMailinglistProvider

(www.yourmailinglistprovider.com) (www.yourmailinglistprovider.com)

Usenet and Mailing List Usenet and Mailing List MarketingMarketing

• Usenet is a distributed bulletin board Usenet is a distributed bulletin board system(BBS), where people can log in, system(BBS), where people can log in, post and read messages, just like we can post and read messages, just like we can use a pin to post a message on a board.use a pin to post a message on a board.

• A company can post information about its A company can post information about its product and service there. But they must product and service there. But they must be honest with their intent.be honest with their intent.

• A company can set up a newsgroup A company can set up a newsgroup specifically for these interested people to specifically for these interested people to share information and exchange views.share information and exchange views.


• Issues in Using Usenet:Issues in Using Usenet:– Ethical issues: should use or not for commercial Ethical issues: should use or not for commercial

purposespurposes– Readers might find it objectionable if they Readers might find it objectionable if they

discover that you are trying to market products or discover that you are trying to market products or services to them in a noncommercial services to them in a noncommercial environment. environment.

– In newsgroup marketing, marketers are taking In newsgroup marketing, marketers are taking some risks since people who are not happy with some risks since people who are not happy with the product or service may use this forum to the product or service may use this forum to express and spread their dissatisfaction and bring express and spread their dissatisfaction and bring an unfavorable impression on the business.an unfavorable impression on the business.


• Ways to overcome these problems:Ways to overcome these problems:– A company should be honest about its purpose A company should be honest about its purpose

and be truthful about its products and services. and be truthful about its products and services. – A company should post only information that is A company should post only information that is

relevant to the interest group. relevant to the interest group. – There are no regulations that prohibit a There are no regulations that prohibit a

company from creating its own newsgroups for company from creating its own newsgroups for the customers of the product or service who the customers of the product or service who are interested in updated news and are interested in updated news and information. information.

– A company canA company can


• Characteristics of Mailing Lists:Characteristics of Mailing Lists:– a subscriber-based two-way e-mail a subscriber-based two-way e-mail

system for message sharing and system for message sharing and communication. communication.

– highly interactive and instant.highly interactive and instant.– Based on the concept that people with Based on the concept that people with

the same interests will want to share the same interests will want to share information with each other.information with each other.


• The three most popular Mailing List The three most popular Mailing List programs are the following:programs are the following:– Listserv (www.lsoft.com)Listserv (www.lsoft.com)– Majordomo Majordomo

(www.greatcircle.com/majordomo)(www.greatcircle.com/majordomo)– ListProc (www.cren.net/listproc)ListProc (www.cren.net/listproc)

Listserv StatisticsListserv Statistics

Number of public listsNumber of public lists 52,54252,542

Number of local listsNumber of local lists 127,173127,173

Total number of listsTotal number of lists 179,715179,715

Total Membership (public + Total Membership (public + local)local)

89,803,30589,803,305

Total Messages delivered todayTotal Messages delivered today 34,259,50034,259,500

Chatroom MarketingChatroom Marketing

• A chatroom is a real-time interactive A chatroom is a real-time interactive Internet communication tool.Internet communication tool.

• Like newsgroups in Usenet, a Like newsgroups in Usenet, a chatroom is often the gathering chatroom is often the gathering place for people with common place for people with common interests, although not as commonly interests, although not as commonly defined as the former.defined as the former.

• Cautions need to be taken as not to Cautions need to be taken as not to provide false or harmful information.provide false or harmful information.

Website as Marketing ToolWebsite as Marketing Tool

• The importance of a Website:The importance of a Website:– It is an online storefront or a branch of a It is an online storefront or a branch of a

company (an office)company (an office)– The quality of a Web site directly reflects the The quality of a Web site directly reflects the

quality and image of the business it quality and image of the business it represents. represents.

– A Web site must be able to not only draw A Web site must be able to not only draw people to visit it but also make them come people to visit it but also make them come back again and again.back again and again.

– A Web site construction planA Web site construction plan ((WCPWCP) defines ) defines the objectives and goals of a business and the objectives and goals of a business and identifies the elements of a Web site and asks identifies the elements of a Web site and asks the following questions. the following questions.

Website as Marketing Tool Website as Marketing Tool (cont.)(cont.)

• Before laying out the plan:Before laying out the plan:– What is the nature of business (product and What is the nature of business (product and

service)?service)?– What is the purpose of the Web site? What is the purpose of the Web site?

Information? Customer service? Selling and Information? Customer service? Selling and buying?buying?

– Who are the existing customers, and who are Who are the existing customers, and who are likely to be the customers?likely to be the customers?

– What are the characteristics of the existing and What are the characteristics of the existing and potential customers? Young? Old? Male? potential customers? Young? Old? Male? Female? Active? Educated? Well off?Female? Active? Educated? Well off?

– Where are these customers (locally, regionally, Where are these customers (locally, regionally, nationally, or internationally)? nationally, or internationally)?


• During the construction of a Web siteDuring the construction of a Web site– Can our Web site’s visitors find the information Can our Web site’s visitors find the information

they want?they want?– How easy can they find the needed information?How easy can they find the needed information?– How fast can they access the information?How fast can they access the information?– What mailing lists or newsgroups do they use? What mailing lists or newsgroups do they use?

Or should we start one for them?Or should we start one for them?– How can we present the information in an How can we present the information in an

attractive and interesting way? How do we attractive and interesting way? How do we define attractiveness and interestingness in the define attractiveness and interestingness in the eyes of my visitors?eyes of my visitors?


– What can we do to make them stay longer in my What can we do to make them stay longer in my Web site?Web site?

– Are we able to answer questions right away Are we able to answer questions right away should they have questions about our services should they have questions about our services and products? What can we do to make this type and products? What can we do to make this type of communication possible? Can we afford to do of communication possible? Can we afford to do that? If not, what can we do to satisfy our that? If not, what can we do to satisfy our customers’ communication needs?customers’ communication needs?

– What will turn our Web site visitors “on” and What will turn our Web site visitors “on” and “off”?“off”?

– What do we have in our Web site to give visitors What do we have in our Web site to give visitors a reason to come back again and again?a reason to come back again and again?


– What can we do to make these visitors always What can we do to make these visitors always use our Web site as a starting point to look for use our Web site as a starting point to look for information they want?information they want?

– Does our Web site enable us to find out who Does our Web site enable us to find out who these visitors are?these visitors are?

– How can we build trust with our visitors? How can we build trust with our visitors? Privacy policy or statement?Privacy policy or statement?

– Security measures?Security measures?– What marketing tools can we use in the Web What marketing tools can we use in the Web

site?site?


• After setting up a Web site:After setting up a Web site:– Can visitors find our Web site?Can visitors find our Web site?– Where and how can visitors find our Web site?Where and how can visitors find our Web site?– How can we increase the probability that How can we increase the probability that

visitors can find our Web site?visitors can find our Web site?– What are the means available for us to market What are the means available for us to market

our Web site? Registering in search engines? our Web site? Registering in search engines? Banner ads? Affiliate programs? Customer Banner ads? Affiliate programs? Customer communication? Traditional media?communication? Traditional media?


• Steps to increase the marketing power of your web siteSteps to increase the marketing power of your web site– The first important step in Web site marketing is to The first important step in Web site marketing is to

register the site with the main Web search engines.register the site with the main Web search engines.– Effective use of titles and Meta Tags in your web Effective use of titles and Meta Tags in your web

document. document. – The quickest way to find out how your competitors The quickest way to find out how your competitors

write their Meta tags is to go to their site and use write their Meta tags is to go to their site and use the browser’s source code feature to check it out. the browser’s source code feature to check it out.

– Another way is to do a search on the product or Another way is to do a search on the product or service that you want to provide through your Web service that you want to provide through your Web site and then see whose site comes up as the top site and then see whose site comes up as the top ranking. You can then examine their Meta tags and ranking. You can then examine their Meta tags and learn from them.learn from them.


• Tips to increase the chances of a Tips to increase the chances of a Web site being found by search Web site being found by search engines:engines:– Write a page title. Write a page title. – List key words. List key words. – Write a page description. Write a page description. – Submit the Web page to search engines. Submit the Web page to search engines. – Submit the page to other directories. Submit the page to other directories.


• Other considerations:Other considerations:– Speed: both your technology capability Speed: both your technology capability

and your customers’ connection speed. and your customers’ connection speed. – PortalPortal: : A Web portalA Web portal is a Web site that is a Web site that

offers a broad range of services, offers a broad range of services, resources, and links for various interests resources, and links for various interests or for a specified area of interest (Table or for a specified area of interest (Table 6.3). 6.3).

Website as Marketing Tool Website as Marketing Tool Cont’dCont’d• A portal is simply a gateway or entrance to A portal is simply a gateway or entrance to

a room or space. A web portal is simply a a room or space. A web portal is simply a web site that offers a broad range of web site that offers a broad range of services, resources and links for various services, resources and links for various interests or for a specified area of interest.interests or for a specified area of interest.

• An affiliate program is a form of An affiliate program is a form of partnership in which a website owner or partnership in which a website owner or business pays or rewards other website business pays or rewards other website owners or business, called affiliates, for owners or business, called affiliates, for clickthroughs on or leads from the clickthroughs on or leads from the advertisements displayed on an affiliate advertisements displayed on an affiliate site.site.

Website as Marketing Tool Website as Marketing Tool Cont’dCont’d

• Some of the things to be included in the Web Some of the things to be included in the Web portal:portal:– Planning of trips to and reservations for Planning of trips to and reservations for

ecotourism destinationsecotourism destinations– Maps and descriptions of the destinationsMaps and descriptions of the destinations– Links to Usenet discussion groups and mailing lists Links to Usenet discussion groups and mailing lists

that focus on ecotourismthat focus on ecotourism– E-mail and e-newsletter on latest ecotourism newsE-mail and e-newsletter on latest ecotourism news– Online subscriptions to e-newsletters and mailing Online subscriptions to e-newsletters and mailing

listslists– Links to other online travel reservation sites (do Links to other online travel reservation sites (do

not be afraid to lose your customers; they will find not be afraid to lose your customers; they will find other sites anyway)other sites anyway)

– Links to other travel servicesLinks to other travel services

Affiliate marketing programAffiliate marketing program

• It is similar to traditional partnership marketing, but It is similar to traditional partnership marketing, but they are very different in practice.they are very different in practice.

• It is quickly becoming the dominant form of Web It is quickly becoming the dominant form of Web marketing and has been shown to have a positive marketing and has been shown to have a positive impact on Web site marketing power.impact on Web site marketing power.

• It can multiply marketing efforts since it acts as an It can multiply marketing efforts since it acts as an extended sales force. extended sales force.

• Make sure that you and your partnered Web sites Make sure that you and your partnered Web sites attract the kind of visitors who are most likely to be attract the kind of visitors who are most likely to be interested in the product or service you are offering.interested in the product or service you are offering.

Viral marketingViral marketing

• It is the Internet version of word-of-mouth It is the Internet version of word-of-mouth marketing.marketing.

• Viral marketing is quickly becoming one of Viral marketing is quickly becoming one of the most important marketing techniques in the most important marketing techniques in e-commerce. e-commerce.

• Viral marketing works under the assumption Viral marketing works under the assumption that people will pass on information to their that people will pass on information to their friends and networked circles either friends and networked circles either conscientiously or unconscientiously if the conscientiously or unconscientiously if the information is of value, interesting, or information is of value, interesting, or entertaining. entertaining.

Viral marketing (cont.)Viral marketing (cont.)

• Reasons for its popularity:Reasons for its popularity:– The Internet has created many virtual communities and The Internet has created many virtual communities and

virtual social networks. Ideas and news pass among virtual social networks. Ideas and news pass among members of these online communities and networks members of these online communities and networks much faster with a click than word-of-mouth. much faster with a click than word-of-mouth.

– It is much easier to spread the news and ideas from one It is much easier to spread the news and ideas from one consumer to another online since there are more consumer to another online since there are more communication tools available on the Internet to communication tools available on the Internet to accomplish this task. accomplish this task.

– The Internet is a network of networks and therefore the The Internet is a network of networks and therefore the more people join the network, the faster the more people join the network, the faster the dissemination of information among the members of the dissemination of information among the members of the network.network.

Viral marketing (cont.)Viral marketing (cont.)

• Different types of viral marketing:Different types of viral marketing:– The consumer does not know that he/she is The consumer does not know that he/she is

doing viral marketing for the company. This doing viral marketing for the company. This type of viral marketing is referred to as type of viral marketing is referred to as incidental dissemination.incidental dissemination.

– Giving a consumer incentives to recruit new Giving a consumer incentives to recruit new customers, so that the benefits to the consumer customers, so that the benefits to the consumer increases with more users signing on to the increases with more users signing on to the service or purchase the product. This type of service or purchase the product. This type of viral marketing is called incentive networking. viral marketing is called incentive networking.

– Companies can pay to have consumers work as Companies can pay to have consumers work as recruiters either on cash or commission bases. recruiters either on cash or commission bases. We refer to this type of viral marketing as paid We refer to this type of viral marketing as paid opinion leadership.opinion leadership.

Push MarketingPush Marketing

• It is a collection of Internet marketing It is a collection of Internet marketing techniques that are used to present and techniques that are used to present and send data to online visitors.send data to online visitors.

• It is not a new concept, but is being It is not a new concept, but is being revived with the advent of the Internet.revived with the advent of the Internet.

• The word ‘push’ means that information is The word ‘push’ means that information is presented in such an attractive and easy-presented in such an attractive and easy-to-access way that consumers will not be to-access way that consumers will not be able to resist the temptation to ask for and able to resist the temptation to ask for and receive them. receive them.

Push Marketing TechniquesPush Marketing Techniques

• Push Marketing TechniquesPush Marketing Techniques• search enginessearch engines• banner adsbanner ads• interstitialsinterstitials• e-promotione-promotion• affiliate marketingaffiliate marketing• e-sponsorshipe-sponsorship• rich mediarich media

Search EnginesSearch Engines

• History of search engines:History of search engines:– In 1990, Archie search engine for anonymous FTP In 1990, Archie search engine for anonymous FTP

sites and Veronica search engine for the Gopher sites and Veronica search engine for the Gopher protocol before the Webprotocol before the Web

– The first Web search engine was created by The first Web search engine was created by Matthew Gray who used an automated computer Matthew Gray who used an automated computer program called program called robot robot to gather URLs and stored to gather URLs and stored them in a Web database.them in a Web database.

– In 1994, the first browseable Web directory and In 1994, the first browseable Web directory and searchable Web index called Galaxy was first searchable Web index called Galaxy was first introduced.introduced.

– The same year witnessed Yahoo to come on the The same year witnessed Yahoo to come on the scene.scene.

– WebCrawler and Lycos in late 1994 WebCrawler and Lycos in late 1994 – Infoseek and Alta Vista in 1995Infoseek and Alta Vista in 1995– HotBot, MetaCrawler in 1996.eHotBot, MetaCrawler in 1996.e– Google in 1998Google in 1998

Search Engines (cont.)Search Engines (cont.)

• Top five search engines in 2002Top five search engines in 2002– GoogleGoogle– YahooYahoo– MSNMSN– AOLAOL– Ask JeevesAsk Jeeves


• Different types of search enginesDifferent types of search engines– One type uses categories or indexes. One type uses categories or indexes.

Yahoo is a good example of this type. Yahoo is a good example of this type. – Another type uses spidering or crawling Another type uses spidering or crawling

technologies. Altavista technologies. Altavista (www.altavista.com), Infoseek (www.altavista.com), Infoseek (www.infoseek.com), and Excite (www.infoseek.com), and Excite (www.excite.com) belong to this group. (www.excite.com) belong to this group.


• Five most widely used criteria Five most widely used criteria employed by top search engines to employed by top search engines to rank a site. They are as follows:rank a site. They are as follows:– 1. Keywords in the title (META tags)1. Keywords in the title (META tags)– 2. Keywords near the top2. Keywords near the top– 3. Frequency of keywords3. Frequency of keywords– 4. Link popularity4. Link popularity– 5. Mechanism for penalty for repeat 5. Mechanism for penalty for repeat

keywordskeywords


• Search engine optimization (SEO)Search engine optimization (SEO)– Choose the 20 keyword phrases that best reflect Choose the 20 keyword phrases that best reflect

the main focus of your site. the main focus of your site. – Use those keywords to optimize your Meta tags Use those keywords to optimize your Meta tags

and build 280 HTML attraction pages designed to and build 280 HTML attraction pages designed to conform to the ranking criteria of the top search conform to the ranking criteria of the top search engines.engines.

– Use systems developed by our programmers to Use systems developed by our programmers to build your link popularity.build your link popularity.

– Manually submit your site to Web directories like Manually submit your site to Web directories like the Open Directory Project. the Open Directory Project.

BannersBanners

• Types of BannersTypes of Banners– stationed banner adstationed banner ad– moving banner admoving banner ad

BannersBanners

• moving banner admoving banner ad– thethe horizontal moving banner adhorizontal moving banner ad– the vertical moving banner ad the vertical moving banner ad – the random moving banner ad that moves the random moving banner ad that moves

around the screen continuously in random around the screen continuously in random directions to draw the attention of online directions to draw the attention of online visitors. visitors.

– the ghost banner ad that follows your screen the ghost banner ad that follows your screen movement and stays visible no matter which movement and stays visible no matter which part of the screen you are scrolling to.part of the screen you are scrolling to.

– the touch-screen banner ad, which is typically the touch-screen banner ad, which is typically half hidden at the lower right corner of the half hidden at the lower right corner of the screen and will rise to show the whole banner ad screen and will rise to show the whole banner ad whenever your mouse happens to move over it.whenever your mouse happens to move over it.

InterstitialsInterstitials

• Pop-ups:Pop-ups: These are special banner These are special banner ads that pop up on the screen to ads that pop up on the screen to catch the attention of the online catch the attention of the online visitor.visitor.

• Pop-unders or invisible interstitialsPop-unders or invisible interstitials

Major Cons for Interstitials Major Cons for Interstitials

• They interfere with the visitor’s They interfere with the visitor’s online experience.online experience.

• They slow down the visitor’s loading They slow down the visitor’s loading speed.speed.

• They give the visitor the impression They give the visitor the impression that something is being pushed into that something is being pushed into his or her view, something that most his or her view, something that most visitors do not like.visitors do not like.

E-promotionE-promotion

• Technically, an e-promotion is a hyperlink special ad Technically, an e-promotion is a hyperlink special ad displayed on the screen.displayed on the screen.

• Offers incentives, such as coupons, discounts, sales, Offers incentives, such as coupons, discounts, sales, and sweepstakes, to attract consumers to get action.and sweepstakes, to attract consumers to get action.

• Has the advantage of bringing the action and the Has the advantage of bringing the action and the incentives much closer to the consumer than incentives much closer to the consumer than traditional promotion. traditional promotion.

• For advertisers, it provides a great way to track For advertisers, it provides a great way to track advertising instantly. Today, it is relatively easy to advertising instantly. Today, it is relatively easy to build or find a program to track the use of the e-build or find a program to track the use of the e-promotion.promotion.

• Widely used by hospitality and tourism companies.Widely used by hospitality and tourism companies.

Affiliate marketing programsAffiliate marketing programs

• A type of promotion or advertising A type of promotion or advertising that sells or distributes products or that sells or distributes products or services through allied partnerships. services through allied partnerships.

• It is particularly relevant for the It is particularly relevant for the hospitality and tourism industry since hospitality and tourism industry since the industry consists of a group of the industry consists of a group of interrelated businesses. interrelated businesses.

E-sponsorshipE-sponsorship

• It seeks to associate the advertiser to It seeks to associate the advertiser to a brand name. a brand name.

• In e-sponsorship, the advertiser In e-sponsorship, the advertiser identifies a Web site, an event, or a identifies a Web site, an event, or a virtual community hosted by a Web virtual community hosted by a Web site that attracts the audience the site that attracts the audience the sponsors wish to reach. sponsors wish to reach.

The Benefits of E-The Benefits of E-sponsorshipsponsorship

• It can provide a more directly targeted It can provide a more directly targeted audience.audience.

• It gives more exposure than banner ads It gives more exposure than banner ads since the fee structures are based on a since the fee structures are based on a period of time rather than on per click.period of time rather than on per click.

• It appears less commercialized than outright It appears less commercialized than outright ads and may be more acceptable to the ads and may be more acceptable to the online visitors.online visitors.

• It is less intrusive.It is less intrusive.

Rich MediaRich Media (media-rich (media-rich advertising)advertising)

• Rich media refers to any online ad that Rich media refers to any online ad that allows for transactions, streaming media, allows for transactions, streaming media, and interactive communication directly in and interactive communication directly in the ad space without leaving the home the ad space without leaving the home page where the ad is being placed. page where the ad is being placed.

• It is interactive. It is interactive. • It is a less interruptive communication It is a less interruptive communication

channel in terms of clicks channel in terms of clicks

Pull MarketingPull Marketing• Also called opt-in marketing or permission Also called opt-in marketing or permission

marketing.marketing.• Virtual communitiesVirtual communities• Explicitly request information from the Explicitly request information from the

Internet marketers through e-mail, e-Internet marketers through e-mail, e-newsletters, or other Internet communication newsletters, or other Internet communication tools for targeted information or advertising tools for targeted information or advertising from businesses. from businesses.

• Two of the most popular opt-in marketing Two of the most popular opt-in marketing tools are e-mail and e-newsletters.tools are e-mail and e-newsletters.

• Opt-in e-mail marketing is based on the Opt-in e-mail marketing is based on the notion that Internet users with an e-mail notion that Internet users with an e-mail address will be interested in selected address will be interested in selected information at the user’s discretion.information at the user’s discretion.

Guidelines for successful opt-in Guidelines for successful opt-in marketing:marketing:

• Obtain the target audience’s e-mail addressesObtain the target audience’s e-mail addresses

• Provide valuable information that the target Provide valuable information that the target audience wantsaudience wants

• Offer incentives, if necessary, to add benefitsOffer incentives, if necessary, to add benefits

• Provide convenient ways for the potential Provide convenient ways for the potential audience to sign upaudience to sign up

• Provide an option for the receiver to opt out of Provide an option for the receiver to opt out of the programthe program

Privacy issue in opt-in Privacy issue in opt-in marketingmarketing

• Cookies: A cookie is a tiny program Cookies: A cookie is a tiny program that a Web site places on your hard that a Web site places on your hard drive to collect information about you drive to collect information about you when you are visiting the site so that when you are visiting the site so that it can recognize you while you are it can recognize you while you are visiting the site or when you return to visiting the site or when you return to the same site later.the same site later.

• Sharing or selling of information Sharing or selling of information collected from the readers. collected from the readers.

PORTALSPORTALS

• A portal is a Web site that serves as an A portal is a Web site that serves as an opening page and main source of opening page and main source of information for Web users.information for Web users.

• A portal holds a virtual community, which A portal holds a virtual community, which in turn is built by the members of the in turn is built by the members of the community.community.

• Portals are highly targeted and interactive. Portals are highly targeted and interactive.

• It provides you with a platform for It provides you with a platform for marketing and for distributing information marketing and for distributing information

Examples of portalsExamples of portals

• Geocities (Geocities (http://http://geocities.yahoo.comgeocities.yahoo.com))

• Travelocity (Travelocity (www.travelocity.comwww.travelocity.com))

• Monster.com (Monster.com (www.monster.comwww.monster.com))

• sina.com (sina.com (www.sina.comwww.sina.com))

• sohu.com (sohu.com (www.sohu.comwww.sohu.com))

• 163.com (163.com (www.163.comwww.163.com))

http://geocities.yahoo.com/

http://geocities.yahoo.com/

http://www.travelocity.com/

http://www.monster.com/

http://www.sina.com/

http://www.sohu.com/

http://www.163.com/

E-newslettersE-newsletters

• opt-in newsletters have come to be opt-in newsletters have come to be recognized as one of the most recognized as one of the most effective Internet marketing tools.effective Internet marketing tools.

• Today, most Web sites offer Today, most Web sites offer convenient ways for their visitors to convenient ways for their visitors to sign up for e-newsletters.sign up for e-newsletters.

Benefits of E-newsletter for a Benefits of E-newsletter for a businessbusiness

• An excellent way to provide customer service, as they An excellent way to provide customer service, as they keep customers or potential customers informed. keep customers or potential customers informed.

• An inexpensive way to reach a target audience.An inexpensive way to reach a target audience.• Users can respond to information or advertising Users can respond to information or advertising

messages instantlymessages instantly• Users feel in more control of the process since e-Users feel in more control of the process since e-

newsletters are more predictable and more easily newsletters are more predictable and more easily organized by users, increasing the chances that users organized by users, increasing the chances that users will keep and read them instead of delete them.will keep and read them instead of delete them.

• E-newsletters can be a source of revenue or a type of E-newsletters can be a source of revenue or a type of e-commerce since they can be sponsored by related e-commerce since they can be sponsored by related businesses that seek to reach their target audience or businesses that seek to reach their target audience or can carry advertising messages that generate can carry advertising messages that generate revenue revenue

Advertising NetworksAdvertising Networks

• They are Internet companies that allow They are Internet companies that allow businesses to place an ad with all the businesses to place an ad with all the target Web sites in their networked or target Web sites in their networked or partnership companies.partnership companies.

• They act as ad agents those sites that are They act as ad agents those sites that are either too busy or too small to sell their either too busy or too small to sell their own advertising for such sites. own advertising for such sites.

• An ad network could help find all those An ad network could help find all those sites for a business’s potential target sites for a business’s potential target markets and place an ad for the business.markets and place an ad for the business.

• An ad network also specializes in tracking An ad network also specializes in tracking the use of an ad by Internet users.the use of an ad by Internet users.

Pros and Cons of an Ad Pros and Cons of an Ad NetworkNetwork

• PROSPROS– One-stop shopping: You deal with only One-stop shopping: You deal with only

one marketing agent.one marketing agent.– Economy of scale: You pay more if you Economy of scale: You pay more if you

have to buy ads with individual Web sites.have to buy ads with individual Web sites.– Market research: Ad networks can Market research: Ad networks can

optimize, serve, and track online optimize, serve, and track online advertising campaigns more effectively. advertising campaigns more effectively.

Pros and Cons of an Ad Pros and Cons of an Ad NetworkNetwork

• CONSCONS– Expensive: If you do not need to Expensive: If you do not need to

advertise on many Web sites, you may advertise on many Web sites, you may end up paying more than necessary.end up paying more than necessary.

– Less control: You have less control of Less control: You have less control of your marketing campaign.your marketing campaign.

– Customer database: You lose the Customer database: You lose the opportunity to collect your own opportunity to collect your own customers’ information and build your customers’ information and build your customer database.customer database.

WebcastingWebcasting

• Webcasting Webcasting is another online pull marketing is another online pull marketing tool.tool.

• It may be argued that it is a push marketing It may be argued that it is a push marketing technique rather than a pull one since it technique rather than a pull one since it “pushes” the message to the audience.“pushes” the message to the audience.

• The reason it is called a pull marketing The reason it is called a pull marketing technique here is to be consistent with our technique here is to be consistent with our notion of pull marketing.notion of pull marketing.– First, Webcasting often is done with pre-sign-ups First, Webcasting often is done with pre-sign-ups

online, so it is an event that online visitors agree to online, so it is an event that online visitors agree to participate in and hence is permission based.participate in and hence is permission based.

– Second, Webcasting presents the message in an Second, Webcasting presents the message in an attractive way so that visitors are “pulled” to view it. attractive way so that visitors are “pulled” to view it.

WebcastingWebcasting• It uses It uses streaming media streaming media to broadcast an event to broadcast an event

over the Web. over the Web. • Webcasting resembles the traditional television Webcasting resembles the traditional television

broadcast in that it uses live visual images to broadcast in that it uses live visual images to present information and marketing messages.present information and marketing messages.

• It differs from the traditional television broadcast It differs from the traditional television broadcast in that it offers the capability of two-way in that it offers the capability of two-way communication and interaction rather than one-communication and interaction rather than one-way communication.way communication.

• Great for introducing new products and educating Great for introducing new products and educating consumers about products and services.consumers about products and services.

• They are also great for products or services that They are also great for products or services that require more visual appeal than text information require more visual appeal than text information

Pros and Cons of WebcastingPros and Cons of Webcasting

• PROSPROS– Good for introducing new products and services Good for introducing new products and services

and educating users about themand educating users about them– Good for products and services that require Good for products and services that require

more visual appeal than text Information more visual appeal than text Information Interesting and attractive to potential Interesting and attractive to potential audiencesaudiences

• CONSCONS– Requires more sophisticated Internet users to Requires more sophisticated Internet users to

use and appreciate ituse and appreciate it– Can slow down the download speed of the Can slow down the download speed of the

users, thus annoying themusers, thus annoying them– Not yet a common feature for most users, so Not yet a common feature for most users, so

the audience is presently limitedthe audience is presently limited

chapter 6 e-marketing and information distribution e-commerce and information technology in...

Documents

e marketing

ps of marketing

partnership marketing

marketing activities

marketing campaign

marketing purposes

marketing communications

emarketing planning