Transcript Week 16 - Internet

Week 16 - Internet
Advantages
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High creativity
Short lead time to
change ads
Simplicity of
segmentation
High audience interest
Easy to directly
measure impact
Disadvantages
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Clutter
Difficult to buy ad
space
Reach only computer
users
Low intrusion value
Hard to retain interest
of surfers
Direct mail
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Lands in hands of person who opens the
mail and makes the purchase decisions.
Response rate averages 2.5%.
Disadvantages are clutter and costs.
Used heavily in business-to-business
Alternative media
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Leaflets and brochures
Ads on carry-home bags
Ads on clothing and caps
Ads on movie trailers
Yellow pages
Ads sent by fax
Video replay and signage at sporting events
Ads on walls in airports, subway, etc.
Guerilla marketing
Product placements
Internet marketing
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Huge Internet growth in last decade
Daily Internet access
 Communication
 Voice over Internet Protocol (VoIP)
 Web blogs
 Internet retail sales
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$144 billion
 7% of global retail sales
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Functions of the Internet
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Advertising
Sales support
Customer service
Public relations
E-commerce
E-Commerce
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Selling products over the Internet
Entry into e-commerce
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Trend of future
Fad
Alternative mode of shopping
Source of information for shoppers
Top cyber categories
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Travel
Office, home, garden
Computer hardware/software
Apparel
Automotive
Consumer electronics
Food & beverages
E-Commerce components
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Catalog
Shopping cart
Payment procedure
Online purchases
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Security concerns
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False credit card charges
Fraud
Identity theft
History & advertising
Purchase habits
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Incentives
E-Commerce incentives
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Financial incentives
Convenience incentives
Value incentives
Online financial incentives
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First-time purchases
Repeat purchases
Cyberbait
Effective incentives
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Free shipping & handling
Dollar discounts
Free gifts
Must be meaningful
Change periodically
Convenience incentives
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Time
Update and change website
Easy to locate merchandise
Convenience services
Value incentives
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Change long-term purchase habits
Personalize shopping
Examples
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Available only online
Free online courses
Free information
Business-to-Business E-Commerce
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Re-buy situations
Brand name recognition
Requires incentives
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Financial
Convenience
Value
Online exchanges and auctions
Store or warehouse locator
International E-Commerce
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Global sales capabilities
Areas to address
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Communication barriers
Cultural differences
Shipping
Internet capabilities
Payment procedures
Security
Websites in different languages
Call centers in different countries
IMC and the Internet
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Important component of IMC
Communication between departments
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Marketing
Human resources
Production
Information technology
Call centers
Shipping departments
Drivers to new websites
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Internet search engines
Word-of-mouth
Internet banners
Television ads
Print ads
Cross-references
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Product packaging
POP
IMC and the Internet
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Search engine key words
Online advertising
E-mail advertising
Blogs
Off-line advertising
Branding and the Internet
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Brand image
Website support of image
Cyberbranding
Brand spiraling
Halo brand effect
Brand loyalty and the Internet
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Brand loyal consumers
Communication is key
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Make shopping pleasurable
Establish one-to-one communications
Personalized information
Niche customers
Sales support and the Internet
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Information for sales staff
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Client information
Product information
Company information
Information for customers
Prospecting
Qualifying prospects
Gathering information
Customer service and the Internet
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Cost-effective method
Easy-to-use website
Alternative communication
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Discussion groups
Chat rooms
Blogs
Access by businesses
Access by manufacturers
Response time