copyright © 2004 pearson education, inc. slide 8-1 chapter 8 ec marketing communications modified...

Copyright © 2004 Pearson Education, Inc. Slide 8-1

Chapter 8 EC Marketing Communicationsmodified 2007 - jmd

E-commerce Marketing Communications


Learning Objectives major forms of online marketing Understand the costs and benefits Ways to use a Web as a marketing

communications tool


ESPN Motion: TV Ads to the Internet

ESPN Motion: Leading-edge multimedia form of advertising System sends packets of video at slow bit rate; when entire

video has been downloaded, it is playable Enables delivery of very high quality video over Internet Also delivers 15-20 second advertising clips either before or

after video Higher quality than streaming video, causes less Internet

congestion http://www.imediaconnection.com/content/1163.asp See it: http://espn.go.com/motion/download.html

http://www.imediaconnection.com/content/1163.asp

http://espn.go.com/motion/download.html


ESPN Motion: TV Ads to the Internet41


Marketing Communications

create strong brand expectations Promotional sales communications: Suggest

consumer “buy now” and make offers to encourage immediate purchase

Branding communications: Focus on extolling differentiable benefits of consuming product or service


Online Advertising Advantages:

Ability to target ads to narrow segments and track performance in almost real time

Provide greater opportunity for interactivity Disadvantages:

Concerns about cost versus benefit Concerns about how to adequately measure

results


Forms of Online Advertisements

1. Banners, pop-ups and rich media ads (These can have sponsorship and affiliate relationships.)

2. Website for Marketing: Search engine marketing: Paid search engine inclusion and placement


Banners, Pop-ups and Rich Media Ads Banners: Display promotional message

in a rectangular box at top or bottom of computer screen

Pop-ups: Appear on screen without user calling for them

Pop-unders: Open underneath user’s active browser window and do not appear until user closes active window

Rich media ads: Employ Flash, DHTML, Java, streaming audio and/or video

Interstitials: Provide way of placing a full-page message between current and destination pages of user

Superstitials: Rich media ad that is pre-loaded into browser’s cache and does not play until fully loaded and user clicks to another page

What types of ads does the ESPN site use?


Online Advertising Placement Methods

Banner swapping: Arrangements among firms allow each firm to have its banners displayed on other affiliate sites for no cost

Banner exchanges: Arrange for banner swapping among firms

Advertising networks: Act as brokers between advertisers and publishers, placing ads and tracking all activity related to the ad


Search Engine Marketing: Paid Search Engine Inclusion and Placement

Search engine marketing one of fastest growing and most effective forms of online marketing communications

Paid inclusion – firms pay for inclusion in search engine index Paid placement – firms pay for a guarantee that it will appear

prominently in results of relevant searches Overture.com and Google leaders in this technology


Search Engine Policies on Paid Placement and InclusionTable 8.2, Page 453


Sponsorships and Affiliate Marketing Sponsorship: Paid effort to tie an advertiser’s name to

particular information, event, venue in way that reinforces brand in a positive, yet not overtly commercial manner Advertorial a common form

Affiliate relationship: Permits a firm to put its logo or banner ad on another firm’s Web site from which users of that site can click through to the affiliate’s site Sometimes called tenancy deals Amazon/ToysRUs an example Customer hijacking an issue


Direct E-mail Marketing and the Spam Explosion

Direct e-mail marketing: E-mail marketing messages sent directly to interested consumers who “opt-in” or have not “opted-out”

Spam: Unsolicited commercial e-mail Spam is exploding out of control – March 2003,

45% of all Internet e-mail purportedly was spam Efforts to control spam:

Filtering software (only partly effective) Self-regulation by industry (ineffective) Government regulation (no legislation yet)


Spam CategoriesFigure 8.6, Page 459


Spam at HiM: Type of SpamRef.: 80-20 rule study by Kristian Kristoffersen (2004)

Spam received in week 1 divided into categories (%)

Adult

Racial

Make Money Fast (MMF)

Commercial

Bulk

Other


Spam at HiM: Source of Spam Ref.: 80-20 rule study by Kristian Kristoffersen (2004)

Spam received in week 1

0

50

100

150

200

250

300

350

400

450

aol.c

om

bigf

oot.c

om

busin

ess.u

tah.

edu

com

cast.

net

dmd.

co.k

r

elim

.net

esn.

org

hanm

ail.n

et

hetn

et.n

l

high

land

s.co

mhi

n.ch

hind

a.co

m

hine

t.net

hite

l.net

hiwaa

y.net

hkne

t.com

hotm

ail.c

om

lists.

wxwidg

ets.o

rg

onlin

e.no

ston

es.c

om

yaho

o.co

m

yaho

ogro

ups.

com

Msg spam


Other Forms of Online Marketing Communications

Online catalog: Provide equivalent of paper-based catalog

Online chat: Provides equivalent of help from sales representative

Public relations: Involves communicating with target audiences, or publics, using methods other than advertising


Beval’s Online CatalogFigure 8.8,

Page 461


Mix Online and Offline MarketingFigure 8.9, Page 463


Insight on Business: The Very Rich are Different From You and Me: Neiman Marcus, Nordstrom and Tiffany & Co.

Online luxury retailers have had a difficult time translating their brands and look and feel of luxury shops into Web site that masses will see

Cases in point: Nieman Marcus /Kate Spade and John Hardy Web site boutiques; Tiffany

In contrast, Nordstrom seems to have found right mix

http://www.neimanmarcus.com/

http://www.neimanmarcus.com/

http://www.tiffany.com/

http://shop.nordstrom.com/C/2375500/0~2375500


Marketing Metrics LexiconTable 8.3, Page 467


An Online Consumer Purchasing ModelFigure 8.10, Page 470 – Do Project Question 1. page 495.


Web Site Activity AnalysisFigure 8.13, Page 475


How well does online advertising work?

Table 8.4 – p.474 – how they use tracking data. Table 8.5 very low click-through rates. Figure 8.12 – click-through rates decline over 6 year

study. E-mail is still highest. Table 8.6 – ROI is highest for telephone, e-mail,

other-mail, …respectively. Table 8.13 – JC Penny customers that use multiple

channels spend much more money than other customers.


Clickthrough Rates by FormatFigure 8.12, Page 472


Forms of Online Advertisements

1. Banners, pop-ups and rich media ads

2. Web Site for Marketing: Search engine marketing: Paid search engine inclusion and placement - this is more important – more holistic approach…


Web Site as Marketing Communications Tool Web site can be viewed as an extended online advertisement Domain name: First communication an e-commerce site has with a

prospective customer Search engine optimization:

Register with as many search engines as possible Keywords have been abused – have appropriate words in the

<Title> Sports Management </Title> Page-In Links get you positioned higher. Link site to as many other

sites as possible. http://en.wikipedia.org/wiki/PageRank In early 2005, Google implemented a new value, "nofollow", for the

rel attribute of HTML link and anchor elements, so that website builders and bloggers can make links that Google will not consider for the purposes of PageRank — they are links that no longer constitute a "vote" in the PageRank system. The nofollow relationship was added in an attempt to help combat spamdexing.

http://en.wikipedia.org/wiki/PageRank

http://en.wikipedia.org/wiki/Rel


Spamdexing – to obtain higher page ranking Keyword stuffing: placement of keywords within a page to raise the keyword count, variety,

and density of the page. Older versions of indexing programs simply counted how often a keyword appeared, and used that to determine relevance levels. Most search engines can now determine whether the frequency is consistent with other sites created specifically to attract search engine traffic.

Meta tag stuffing: Repeating keywords in the Meta tags, and using keywords that are unrelated to the site's content, believed to be ineffective as of 2005 onwards.

"Gateway" or doorway pages: Creating low-quality web pages that contain very little content but are instead stuffed with very similar key words and phrases. They are designed to rank highly within the search results, but serve no purpose to visitors looking for information. A doorway page will generally have "click here to enter" in the middle of it.

Scraper sites: Scraper sites, also known as Made for AdSense sites, are created using various programs designed to 'scrape' search engine results pages or other sources of content and create 'content' for a website. The specific presentation of content on these sites is unique, but is merely an amalgamation of content taken from other sources, often without permission. These types of websites are generally full of advertising, or redirect the user to other sites.


Web Site Functionality – a face to your business

Factors affecting effectiveness of a software interface:1. Utility2. Ease of use

Factors in credibility of Web sites:1. Design look2. Information design/structure3. Information focus4. Responsiveness

Visit the JC Penny website: http://www.jcpenney.com/jcp/default.aspx How would you rate this site on the above factors? What web features do they have to support customers? What marketing tools do they use on the website? Which of these do you think is more effective in generating sales?

http://www.jcpenney.com/jcp/default.aspx


Factors in the Credibility of Web SitesTable 8.14, Page 480


Site Design Features that Impact Online PurchasingTable 8.8, Page 482


Case Study: Adware, Spyware, Ad Bombs, Ambush Marketing, Customer Hijacking (p488)

Ad bomb (Ad-ware): Any computer program that is surreptitiously downloaded on a client computer for the purpose of calling for unwanted advertising without the user’s consent or intervention

Ambush advertising: Gator.com’s mini-billboard Customer hijacking: self-executing programs downloaded onto

client computers that permit a company to “hijack” customers of affiliate marketing sites, and redirect affiliate commission to hijacker

Visit http://www.netrn.net/spywareblog/ . According to this page, what are some effective approaches for opposing spyware?

http://www.netrn.net/spywareblog/

copyright © 2004 pearson education, inc. slide 8-1 chapter 8 ec marketing communications modified...

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