Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-1 9 Chapter Nine Digital Marketing.

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-1

9 Chapter Nine

Digital Marketing

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-2

• Companies shifting dollars to online communication• Changes consumer communications and interactions

with companies• Pushing to “real-time” communications• http://www.youtube.com/watch?v=3SuNx0UrnEo

Companies now employ individuals to monitor Twitter and social media sites

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-3

E-Commerce• Click-only operations to bricks-and-clicks• B2C and B2B online commerce• Online sales 8 percent of retail activity• Search online for information

• May buy online• May buy in a retail store

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-4

F I G U R E 9 . 1

E-Commerce Web Site Components

• Catalog• Product information• Product navigation

• Shopping cart• Save or wish basket

• Payment system• Easy, quick, convenient checkout

• Store locator• Customization functionality• Customer reviews or feedback options

9-5

E-Commerce Incentives

• Financial incentives• Convenience incentives• Value-based incentives

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

CYBERBAIT

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-6

F I G U R E 9 . 3Top U.S. Online Search Providers

Source: Adapted from “Top 10 U.S. Search Providers, Home & Work,” Nielsen Internet, https://en-us.nielsen.com/rankings/insights/rankings/internet, accessed February 22, 2010.

Google Search; 66.3%

Yahoo Search; 14.5%

MSN/Bing Search; 10.9%

AOL Search; 1.5%

Ask.com Search; 1.9% Others; 4.9%

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-7

• Seller opportunism• Security issues• Privacy issues• Purchasing habits

F I G U R E 9 . 4

Reasons Consumers are Wary of Purchasing Online

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-8

Interactive Marketing

• Two-way communication and involvement• Internet ideal medium• Can track activity• Personalize messages• Emphasizes two primary activities

• Targeting individuals• Engageing consumers

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-9

F I G U R E 9 . 6

Interactive Marketing Objectives

Award

prize

s

Brand

ing

Build

loyalt

y

Build

E-mail

list

Collec

t per

sona

l dat

a

Gen

erat

e lea

ds

Gen

erat

e sa

les

Offe

r inc

entiv

es

Drive

to W

eb s

ite

Gen

erat

e ad

dition

al lea

ds0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

17.1%

58.9%53.2%

49.8%

27.0%

41.1%

55.1%

36.5%

54.4%

30.8%

Per

cent

of T

otal

Source: Based on Larry Jaffee, “Follow the Money,” Promo, 20, No. 11 (November 2007 Sourcebook), pp. 5-10.

Mobile Marketing

• Smartphones (43%)

• Ways people use• Social device• Search product

information• Method of shopping

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 9-10

Figure 9.3Types of Mobile Marketing

• Display ads• Search ads• Video advertising• Text messages• In-app advtg• QR Codes• Geo-targeting

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 9-11

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-12

F I G U R E 9 . 8

US Online Ad Spending by Format

Banners; 22.6%

Classified; 5.7%

Media/Video; 13.6%Search; 49.2%

Other; 8.9%

Source: Based on “Online Ad Spending Consolidates Among Search, Banners, Video,” eMarkter Digital Intelligence, February 3, 2012, www.smarketer.com/articles/print.aspx?R=1008815.

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-13

Search Engine Optimization• Largest category of online expenditures• 80% of Web traffic begins with a search• Results of SEO

• Click rate 5% (0.2% for online ads)

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-14

Online Social Networks

• 75% of Internet users participate in social media• Facebook• Twitter

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-15

Blogs• Online musings• Power of online buzz

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-16

Consumer-Generated Advertising

• Crowdsourcing• Goal is to create consumer buzz

• Consumer-generated ads• Created for television• YouTube• Viewed as more genuine• Contests for consumer-generated ads

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-17

Consumer-GeneratedReviews

• Amazon.com – leader• Best Buy – online reviews of brands• Early adopters• Implications

• Negative reviews• Low-star ratings• Consistent quality products• Information for

• Marketing plans• Product modifications• Service strategies

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-18

E-Mail• E-mail newsletters

• Build brand awareness• Drive Web traffic• Customers sign up for newsletters• Provide value• Free subscription• Tie-in with Web site

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-19

Viral Marketing• Message passed from one consumer to another

• E-mail• Blogs

• Form of advocacy or word-of-mouth endorsement• Viral marketing messages

• Advertisements• Hyperlinked promotions• Online newsletters• Streaming videos• Games

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-20

International Implications

• Shipping issues• Payment methods• Communication issues• Technology issues