E-Business Promotion

What Is Promotion?

• Promotion is a communication process consisting of– advertising– publicity– sales promotion– and salesmanship

The AIDA model• AIDA model is a framework for understanding how

hypermedia can be used to reach promotional goals. • The AIDA process indicates that:

– First the attention of the target audience must be gained– Then interest created in the product or service– Desire generated– Action taken by the targeted audience.

• The AIDA process is based on attitude models in which:– The audience first thinks about an object (cognition)– Develops feelings (affect)– Engages in some type of behavior (conation).

Communication GoalsATTITUDEMODEL

AIDAPROCESS

E-BUSINESS COMMUNICATION STRATEGY

Awareness -use traditional media to create brand attention-make the audience aware (Thinking) of the Web site withoffline media-employ search engines to allow the Web site to be found insearches-have other Web sites serve as media for advertising theWeb site-send targeted e-mail, which can be used like directmarketing to gain initial attention

Cognition(thinking)

Interest -use customization and personalization techniques to meetthe individualÕs needs-use targeted e-mail and permission marketing-use push to send information to the audience

Affect(feeling)

Desire -develop content and a design that appeals to the targetaudience-include relationship development components that willkeep the audience at the site

Conation(behavior)

Action -use promotions to entice actions-design seamless purchasing systems.

• Steps to gain the audience's attention:– Include a site's URL or address in other media.

• should be included in:– advertising copy and layouts– business cards, letterhead and other business

collateral– banner ads located in other Web sites– direct email and other directed media

• The use of URLs in print ads increased from around 10 percent of ads in 1995 to over 90 percent by 1998

Gaining Attention (2)

Hypermedia Hyperlinks

• Gaining attention through Web sites:– Banner ads

• Banner ads have not been highly effective in achieving click-through, or having an individual click on a linked banner to link to other sites.

– Sponsorship (or co-branded ads)• Integrate a company's brand to the editorial content of the Web

site. For example, a firm may sponsor a news site or community bulletin board

-find some sponsored content on the web and add the URL to the class wiki

– Interstitials• Automatically load and display content as Web site

content is brought up. This includes the use of pop-up windows and freely float to display ad content, but more recently run between pages in the same window

– Affiliate marketing strategies • Have content sites provide links to other, often

commerce-based, sites. These are usually performance-based links, where the host site receives a percentage of sales or some other type of compensation for the click-through.

Hypermedia Hyperlinks (2)

Cookies and Tracking

• Cookies are linked to databases– Allow for individualized design and pushing the Web

site for the individual.

• Tracking software: – Reads the behavior of the visitor by keeping track of

the Web pages the visitor sees, how long they are viewed, what is passed over, what is placed in a shopping basket, and what is removed.

– This behavior suggests the type of information the user may be interested in.

Action

• E-business Action Goals:– Have individuals visit a Web site

– Provide information for databases

– Obtain information for future purchases

– Make online purchases.

Table 7.3: Motivating Toward Action

1) Free Shipping: 20%

2) Online Coupon: 14%  

3) Product Search Tool: 11%  

4) Online product review: 11%  

Loyalty

• Businesses have an incentive to maintain the loyalty of customers because of the high value of lifetime customers.

• Brick-and-mortar loyalty can be measured in repeat store visits and product repurchase.

• Customers stay loyal because they believe that the cost of searching for information on new stores and products

Campaigns

• Integrated marketing communication implies that multiple media are used to target audiences.

• Lee Jeans:– Target: Teenage boys– Buddy Lee campaign:

• Web site• Targeted email• Television• Radio• Codes on products• Measured by: site stickiness, attitude change, sales

Anatomy of Buddy Lee’s Campaign

Company Attention Interest Desire Action Loyalty

Lee Jeans Email viral marketing.Websites.Radio.

Online video clips.Websites.TV ads.

Interactive games on website. TV ads.

Game codes on product.Links to offline stores.

Website hosts message boards, interactive games, rich media and giveaways.

Measurement: Stickiness of site. Number of viewers. Pass-along rate. Attitude change. Sales.

Advertising (1)

• The Web allows for: – Direct communication and interaction

with customers.

– Tracking a customer's media use.

– The development of customized ads and placement.

– Facilitates actions such as purchasing.

Advertising (2)

• The Internet is the fasting growing media.– took only 5 years to reach 50 million users compared

to:• radio’s 38 years• television’s 13 years• cable’s 10 years.

– web surfers have shifted media habits away from television watching.

• Problems with the Web media include:– narrow target markets– privacy concerns– limited bandwidth– hard to prove effective measures of success

and returns on investments.

Figure 7.7: Major Web Advertising Types

Or an Interstitial will automatically pop up and float behind a web page.

250 x 250 pixels(Square Pop-up)

Or an Interstitial will automatically pop up and float behind a web page.

250 x 250 pixels(Square Pop-up)

Banner Ad, with Animated JIF, JAVA scripted, or with multimedia.

468 x 60 pixels (Full Banner)

Button Ad120 x 60

pixels(Button 2)

Skyscraper Ad

160 x 600 pixels(Wide

Skyscraper)

Sponsored content

Link to classified ads.

Web Page Content

Site Search

Affiliate Links

Interstitial will automatically pop up and float in front of a web page.

300 x 250 pixels(Medium Rectangle)

Interstitial will automatically pop up and float in front of a web page.

300 x 250 pixels(Medium Rectangle)

Agencies

• Advertising agencies act as intermediaries by providing the talent to help set promotional objectives, create the content, place the promotion in the media, and provide feedback on the results of the campaign to the client.

• Agencies:– DoubleClick (www.doubleclick.com)

– USWeb (www.usweb.com)

– Razorfish (www.razorfish.com)

Timing

• Traditional promotional campaigns use a mix of media to reach all of the AIDA goals. – Using a combination of broadcast and print over

differing time periods.

• The Web allows advertisers to develop sites where the target audience can visit whenever they want and as often as they like. – It is important that Web sites be refreshed to

encourage the users to return.

Measuring Effectiveness• Internet advertising has the potential for allowing

the advertiser to capture information such as who sees which ad and for how long. – Web servers are able to track every time an individual

moves from one linked page to another.

– Dead pages, or pages no one visits, can be updated or deleted.

– This data can be collected from both the sending server and the user's PC.

– Data from cookies may even provide an indication of the profile of the user.

Table 7.3: Measurement of Hypermedia Advertising (1)

MEASUREMENT METHOD

DEFINITION COMMENTS

Ad Impression Measures the number of times an ad has been requested or pulled by an individual or pushed, as with email ads.

Provides no information on users.

Visit orPage View

Tracks the number of individual pages sent to Web viewers without a period of inactivity (a measure to insure actions are attributed to a single browser for a single session).

Give no indication of how many users receive or view pages and no profile data on users.

Click-Through Gives measure of a reaction to an ad. Tracks the number of times an online ad is clicked on.

Gives no information about the customers. Click through may dump a page before it loads. Click-through rates are very small.

Table 7.3: Measurement of Hypermedia Advertising (2)

MEASUREMENT METHOD

DEFINITION COMMENTS

Page View Measures the number of times a page is sent to the user’s browser. Pages can be requested but the ads may not necessarily be seen by the targeted individual.

Hits may be counted for every click of the mouse or page refresh. Records activity regardless without viewer’s information.

Unique Visitors

Allows tracking by the IP address of the viewer or through cookies.

Multiple users may use the same IP address to access a site.

Ad Blocking

• Consumers can filter, or block ads from Web sites. – This shifts power from businesses to the consumers.

• Filters look at the HTML code and checks files and file types against a filter list to block ads, interstitials, or animated banners. – There is a stronger interest in this type of technology

inside of companies where blocking of ads can improve speed and network performance.

Table 7.4: Web Site Ratings IndicatorsPAYMENT METHOD

MEANING COMMENTS

CPM Cost-per-thousand Typical method used to compare across media.

CPC Cost-per-click Cost of clicking through from a hypermedia page.

CPAExamples:

Cost-per-action Cost is based on user taking some specific action such as purchase or some other action.

CPL Cost-per-lead Based on the number of leads that register from an ad.

CPA Cost-per-acquisition Pays only when customer makes purchase or acquisition.

Subscription Delivered

Subscription Delivered

Media UsePage-Through Content to View Ads: Inside Front CoverGatefoldArticle Content/ROP

Media UsePage-Through Content to View Ads: Inside Front CoverGatefoldArticle Content/ROP

Revenue Sources:

PurchaseAdvertising

Revenue Sources:

PurchaseAdvertising

Individual pages to content, exposed to ads

Individual pages to content, exposed to ads

View Cover and Purchase

View Cover and Purchase

Publication Effectiveness:

AuditedSales/Delivery

Publication Effectiveness:

AuditedSales/Delivery

Customer Database:CurrentPotential

Customer Database:CurrentPotential

Figure 7.6: Traditional Magazine Advertising Model

Revenue Sources:

Advertising Click ThroughsPercent SalesAffiliations

Revenue Sources:

Advertising Click ThroughsPercent SalesAffiliations

Visit to Website

Visit to Website

Site UseRead ArticlesCommunity ContentSearch ArchiveLink to Products

Site UseRead ArticlesCommunity ContentSearch ArchiveLink to Products

Individuals can bypass pages to move toward

content through searches

Individuals can bypass pages to move toward

content through searches

Site Statistics:Hit CountsPage ViewClick ThroughsReach

Site Statistics:Hit CountsPage ViewClick ThroughsReach

HTML Email

HTML Email

AdvertisingAdvertising

Online Search

Online Search

Customer Database

Customer Database

Figure 7.7: E-Business Promotional Model

• search engines should also be used so the business and its Web address will appear when the Web user searches for topics related to that business.

• search engines are a cost-effective means of making people aware of a site, but they do not guarantee that a viewer will choose or remember the site.

Search Engines (1)

Search Engines (2)

• Three types: – Search directories require that Web site be submitted for

cataloging.

– Search engines use Web spiders or web bots to collect information from sites.

• Web spiders are bots, or software robots, that “crawl” through the Internet looking at Web sites.

– Metacrawlers use the databases of multiple major search engines. These are good for power searches, but combining multiple results can lead to repetitive hits.

Top of the Search• Search engines rules to place URLs at the top of the search

(beginning of a search list): – Number of links to that site from other sites, especially sites with

similar key words– The number of times the site has been viewed– Matches of certain text– Placing key words and phrases in the title, main content and

hidden keyword and description metatags – Other criteria known only to the management of the search engine.