e-marketing communication tools e-m arketing /6e c hapter 12

E-MarketingCommunication Tools

E-MARKETING/6ECHAPTER 12

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

12-2CHAPTER 12 OBJECTIVES

After reading Chapter 12, you will be able to: Define integrated marketing communication

(IMC) and explain the importance of the hierarchy of effects model.

Discuss how marketers use the Internet for advertising, marketing public relations, sales promotions, direct marketing, and personal selling.

Identify several emerging IMC tools. Describe the most effective online IMC tactics.


12-3 WILL IT BLEND?

Blendtec , a supplier of commercial blenders to Starbucks and others, produced a video in which the CEO blended unusual products such as a garden rake and a golf club. The video, uploaded to YouTube, received 3.9

million views in an 8-month period. The Will It Blend? Campaign illustrates the

potential value of viral marketing and connecting with consumers online.

Do you think that such campaigns can build awareness? Can you think of other examples?

Ipad – Will it Blend?; Iphone – Will it Blend?

http://www.youtube.com/watch?v=lAl28d6tbko

http://www.youtube.com/watch?v=DLxq90xmYUs&feature=related


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INTEGRATED MARKETING

COMMUNICATION (IMC) IMC is a cross-functional process for

planning, executing, and monitoring brand communications.

The goal is to profitably acquire, retain, and grow customers.

IMC strategy requires a thorough understanding of target markets, the brand, its competition, and other internal and external factors.


12-5 MARKETING COMMUNICATION TOOLS

MarCom consists of both planned and unplanned messages between firms and customers and among customers.

E-marketers can enhance MarCom by using innovative technologies, such as text and multimedia messages, databases, blogs, digital receiving devices, etc.

Internet MarCom may include advertising, sales promotion, marketing public relations (MPR), direct marketing, and personal selling.


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The AIDA and “think, feel, do” (hierarchy of effects) models help guide selection of online and offline MarCom tools to meet their goals. The models recognize that consumers

first become aware of a product before they develop feelings and purchase it.

The models can help marketers select appropriate communication objectives and strategies, such as: Build brand equity. Elicit a direct response.

IMC GOALS AND STRATEGIES12-6


12-7E-MARKETING

TACTICS


12-8INTERNET

ADVERTISING Advertising is nonpersonal, usually

persuasive, communication about products or ideas paid for by an identified sponsor.

All paid space on a website or in an e-mail is considered advertising.


12-9TRENDS IN INTERNET

ADVERTISING

Online advertising reached $23.5 billion in 2008, $22.7 billion in 2009.

In 2009, 14.3% of ad dollars were spent online. Most spending came from:

Retail Telecom Financial services Automotive Computing


12-10

U.S. INTERNET ADVERTISING EXPENDITURES


12-11

INTERNET ADVERTISING FORMATS

Keyword search is the fastest growing and most important technique.

Display ads are the second largest.

Display ads include traditional banners and many additional sizes.

Formats include rectangles, pop-ups, banners, buttons, and skyscraper display ads.


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ADVERTISING DOLLARS BY FORMAT


12-13 RICH MEDIA ADS

Rich media ads are interactive, at least offering click-through.

Rich media ads often use Flash animation to attract attention.

Many formats can be rich media, including: Banner ads. Interstitial ads. Floating ads. Expanding ads. Polite ads.


12-14 CONTEXTUAL ADS

Ad servers serve ads into web sites as appropriate users view pages. Facebook also offers specific ad

targeting based on user profiles. This process is also the basis for

Google’s AdSense program. Contextual ads (keyword search)

are the largest category of online advertising.


12-15 E-MAIL ADVERTISING

E-mail advertising is the least expensive type of online advertising.

Advertisers can purchase space in another firm’s e-mail content, such as newsletters.

Note that email messages sent from a firm directly to Internet users are direct marketing, not advertising.


12-16

Sponsorships integrate editorial content and advertising.

Sponsorships allow great interactivity and help firms build synergistic partnerships that provide useful content.

Sponsor disclosure is an important issue for e-marketers.

SPONSORSHIPS


12-17 MOBILE ADVERTISING

Mobile Internet usage grew about 25% annually from 2007-2010.

Techniques for mobile devices include: Display ads Messaging Location-based ads Paid search Video

Advertising on mobile devices is likely to increase.


12-18

MOBILE ADVERTISING VENUES BY GOAL


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Public relations includes activities that influence public opinion and create goodwill.

MPR includes brand-related activities and nonpaid, third-party media coverage to positively influence target markets. A website can serve as an electronic

brochure. Online events can draw traffic to a site. Users can download video podcasts. Viral marketing can create buzz online.

MARKETING PUBLIC RELATIONS (MPR)

12-19


12-20

Sales promotions are short-term incentives that facilitate the movement of products to the end user. Coupons Rebates Samples Contests, sweepstakes, and games

2010 usage estimates are 6%-75% of Internet users.

Sales promotions do not help build customer relationships in the long term.

SALES PROMOTION OFFERS


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Direct marketing is direct communication designed to generate a response.

Online techniques include: Outgoing e-mail. Targeted online ads that solicit a direct

response. Text messages or Short Message

Services (SMS). Multimedia and instant messages.

DIRECT MARKETING


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E-mail, used by 89% of Internet users, is the Internet’s killer application. 75% of marketers invest in e-mail campaigns.

E-mail has advantages over postal direct mail marketing. No postage or printing costs. Immediacy and convenience. E-mails can be automatically individualized.

E-mail also has disadvantages. Unsolicited e-mail (spam). Effective lists are hard to obtain and maintain.

E-MAIL


12-23

METRICS FOR ELECTRONIC AND POSTAL MAIL


12-24

When consumers opt-in, they are giving permission to receive commercial e-mail.

Marketers should obtain lists that are guaranteed to be 100% opt-in.

Opt-in techniques are part of a bigger marketing strategy called permission marketing or “turning strangers into customers.”

PERMISSION MARKETING: OPT- IN, OPT-OUT


12-25 VIRAL MARKETING

Viral marketing is the online equivalent of “word of mouth” marketing. Hotmail is a viral marketing success story. Movies such as Blair Witch Project and

American Psycho were promoted using viral marketing techniques.

Burger King’s Subservient Chicken campaign drew 14 million visitors in the first year.


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Short Message Services (SMS) are up to 160 characters of text sent over the Internet with a cell phone or smartphone.

Marketers can build relationships by sending permission-based information where consumers want to receive it.

SMS use continues to grow in all industrialized nations.

TEXT MESSAGING


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LOCATION-BASED MARKETING

Location-based marketing includes promotional offers pushed to mobile devices and based on the user’s physical location.

Google is on the leading edge with its local search.


12-28

DIRECT MARKETING METRICS

Response rate and ROI are the most appropriate metrics for direct marketing campaigns.

E-mail receives a widely varied and generally low click through rate, but the highest ROI of any direct media.

In a study of SMS campaigns, 94% of messages were read by recipients and 23% showed or forwarded messages to a friend.


12-29 SPAM

Spam is unsolicited e-mail.

The CAN-SPAM Act appears to have little ability to stop spam.

Spammers routinely harvest e-mail addresses from newsgroup postings and then spam the members.


12-30 PERSONAL SELLING

Personal selling involves real time conversation between a salesperson and customer, face-to-face, by telephone, or by computer.

Some companies provide real time sales assistance online.

Land’s End has a live chat feature.

The Internet can also generate leads for salespeople.


12-31 IMC METRICS

Display ads are generally ineffective. Only 0.2% of all users click on them.

Online ads that were bigger or contained rich media delivered greater impact.

There is increasing evidence that online and offline advertising work well together.


12-32

BEST AND WORST PERFORMING IMC TACTICS

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recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

e-marketing communication tools e-m arketing /6e c hapter 12

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