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Slide 1
E-Marketing Communication Tools Instructor: Hanniya Abid
Assistant Professor COMSATS Institute of Information Technology
Lecture 18 E-Marketing
Slide 2
Objectives After this lecture, you will be able to: Know Online
Communication Tools Discuss how marketers use the Internet for
advertising, Know marketing public relations, sales promotions,
direct marketing, and personal selling.
Slide 3
Online communications tools The Internet extends and integrates
all ten online communications tools. This section summarizes the
opportunities and the challenges of online communications. First we
will consider the range of online promotion tools that are
available.
Slide 4
Online communications tools Online promotion is continuing to
grow in importance and gaining an increasing share of marketers
budgets and efforts whether a text message that changes behaviour
immediately or key words that attract more enquiries or contextual
banner ads that change attitudes, or viral marketing that makes
people talk about a brand. Online channels can do things that
offline communications simply cannot, e.g. some web sites can
promote, communicate and create a brand experience which is unique
to the online users.
Slide 5
Online communications tools The complete promotional mix or
communications mix the ten communications tools (advertising,
selling, sales promotion, PR, sponsorship, direct mail,
exhibitions, merchandizing, packaging and word-of-mouth) can be
used to communicate or promote in the online or offline world. They
can all be extended online in new and dynamic ways. Think about
their online equivalents.
Slide 6
Online equivalents of established communications tools.
Although web sites can be considered a separate communications
tool, they are best thought of as an integrator of all ten
tools
Slide 7
Guidelines For Effective Promotion o The online promotional
challenges marketers need to respond to can be summarized by the
six key issues: mix, integration, creativity, interaction,
globalization and resourcing.
Slide 8
Mix the promotional mix E-marketers need to mix the promotional
mix. This involves deciding on the optimum mix for different online
promotional tools. Think about whether you use the full range of
promotional tools and whether you are using the most cost effective
techniques for acquiring your target customers
Slide 9
Integration Support the overall positioning and online value
proposition which the e-marketing strategy defines. A single
consistent message and a single integrated database are needed
which recognizes and remembers customers names and needs regardless
of which access devices are being used (TV, telephone, PC or
hand-held device). Online integration is difficult enough. Online
and offline integration requires even more management skills.
Slide 10
Creativity Next comes the extra layer of creativity
interaction. This enhances the experience and deepens the
communications impact (and can also collect customer data). This is
where the online opportunity can really create some sizzle .
Slide 11
Globalization Then of course there are the added complications
of a global audience. Web sites open your window to the world. When
global audiences look in (to your site) they may not like what they
see.
Slide 12
Resourcing The online communications opportunity is infinite.
However resources to design and maintain the content, interactions
and the database are not infinite. Resources are also needed to
service customer enquiries whether online or offline. Even ensuring
consistent use of the brand requires time, energy and money.
Finally, remember all communications are wasted if the rest of the
mix is wrong, for example a poorly targeted product.
Slide 13
Online Marketing Communication All ten communications tools
should be reviewed for how they can be extended and enriched
online. Online communications challenges include: mix, integration,
creativity, globalization and resourcing. Take advantage of the
characteristics of the new media through promotion that is:
dynamic, carefully targeted, highly relevant and helps build an
ongoing relationship based on the permission and trust of the
customer
Slide 14
Slide 15
Internet Advertising Advertising is non-personal, 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.
Slide 16
Trends 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
Slide 17
U.S. Internet Advertising Expenditures
Slide 18
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.
Slide 19
Advertising Dollars by Format
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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.
Slide 21
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 Googles AdSense program. Contextual ads (keyword search) are
the largest category of online advertising.
Slide 22
E-Mail Advertising E-mail advertising is the least expensive
type of online advertising. Advertisers can purchase space in
another firms e- mail content, such as newsletters. Note that email
messages sent from a firm directly to Internet users are direct
marketing, not advertising.
Slide 23
Sponsorships 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.
Slide 24
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.
Slide 25
Mobile Advertising Venues by Goal
Slide 26
Marketing Public Relations (MPR) 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.
Slide 27
Sales Promotion Offers 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.
Slide 28
Direct Marketing 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.
Slide 29
E-Mail E-mail, used by 89% of Internet users, is the Internets
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.
Slide 30
Metrics for Electronic and Postal Mail
Slide 31
Permission Marketing: Opt-in, Opt-out 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.
Slide 32
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 Kings Subservient
Chicken campaign drew 14 million visitors in the first year.
Slide 33
Text Messaging 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.
Slide 34
Location-based Marketing Location-based marketing includes
promotional offers pushed to mobile devices and based on the users
physical location. Google is on the leading edge with its local
search.
Slide 35
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.
Slide 36
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.
Slide 37
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. Lands End has a live chat feature. The Internet
can also generate leads for salespeople.
Slide 38
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.