Transcript MKTG 3331 Chapter 9

E-Active
Marketing
Chapter 9
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Chapter Objectives
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What is e-active marketing?
How can an e-commerce program be utilized
to complement and supplement other selling
and promotional activities?
Why is it important to incorporate incentives
into e-commerce programs?
What is meant by the term interactive
marketing?
How can a marketing department adjust to
the presence of social networks, blogs, and
other new forms of Internet marketing?
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Google
• Google has become part of vocabulary
• Uses a different business model
 Google provides service free
 Sells advertising
 Market leader in search engine advertising
• Search
 Indexing
 Retrieval
• 2004 – sold $1.67 billion in stock
• Google began advertising
• Entering “local search market”
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Chapter Overview
• Internet has changed U.S. culture
• Global customers, competition
• E-active marketing
 e-Commerce + Interactive marketing
• Consumer e-commerce
• Business-to-business e-commerce
• Interactive marketing methods
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E-Commerce
• Selling of goods and services on the Internet
• More than 50% of U.S. households use e-commerce
• Online sales is 7% of total U.S. retail sales
• E-commerce sites also used for information gathering
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E-Commerce Components
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Catalog
Shopping cart
Payment procedure
Customer service
 FAQs
• Public relations
• Optional elements
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E-Commerce Incentives
• Cyberbait
• Financial incentives
• Convenience incentives
• Value incentives
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Financial Incentives
 Attract first-time purchaser
 Effective incentives
 Reduced price
 Free shipping
 E-coupon
 Incentives must be meaningful and changed periodically
 Reduces costs through
 Lower shipping costs
 Lower labor costs
 Lower personnel costs
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Convenience Incentives
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E-commerce available 24/7
Used to obtain product information
Update and change Web site
Easy to locate merchandise
Convenience services
 Wedding registries
 Popular items
 Measurement charts
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Value-Added Incentives
 Change purchasing habits – long term
 Personalized shopping
 Examples
 Merchandise available only online
 Free online courses
 Barnes & Noble, Charles Schwab
 Free information
 Tide – stain removal
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Concerns About E-Commerce
 Seller opportunism
 Security issues
 Information privacy issues
 Brick-and-mortar purchasing habits
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Business-to-Business E-Commerce
• E-commerce is critical
• Websites hits directly related to
advertising and sales promotions
• Requires incentives
 Financial
 Convenience
 Value-added
• Online exchanges and auctions
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Interactive Marketing
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Two-way communications
Customer involvement
Tracking of Internet activities
Personalize targeted information
Engage consumers with company
and products
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Online Interactive Tactics
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E-mail marketing
E-mail newsletter
Banner ads
Online promotions
Blogs
Social networks
Viral campaigns
Search engines
Podcasts
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Interactive
Marketing Objectives
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Branding
Generate sales
Drive individuals to the Web site
Build loyalty
Build e-mail list
Generate leads
Offer incentives
Collect personal data
Award prizes
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Online Advertising
• Increase in online budgets
• Effective method for reaching today’s consumers
• Impact shrinking
 Click-through response rate – 0.27%
• Brand spiraling
• Types of online advertising
• Display or banner ads
• Classified ads
• Search advertising
• Media/video ads
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Blogs
• Online musings
• Power of online buzz
• 47% go to social networks
 Download coupons
 Search for information
• 45% go to social networks
 Upcoming sales
 Discounts
• 22% read or write a product review on a blog
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Company-Sponsored Blogs
• Bluefly.com – Flypaper blog
 Fashion news
 New styles
 Fashion faux pas
• Do they work?
 Blog visitors spend more
 Online 23 hours/week versus 13
• Benefits
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Reassure shoppers
Glimpse of how firm deals with customers
Release company information
Customers can voice opinion
Company controls site
• Must be honest
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Online Social Networks
• Facebook, MySpace, YouTube
• Developing social network presence
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Start profile page
Accept “friend requests”
Specific product page – Sprite
Posting of ads on social networks (Nike)
Generate word-of-mouth buzz
• Consumer-generated advertising
 2007 Super Bowl – Doritos ad
 Viewed as more genuine
 Contests for consumer-generated ads
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Consumer-Generated Reviews
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Amazon-com – leader
Circuit City – online reviews of brands
Early adopters
Implications
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Negative reviews
Low-star ratings
Consistent quality products
Information for
• Marketing plans
• Product modifications
• Service strategies
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E-mail Campaigns
• It essential to:
• Integrate with other marketing channels
• Be based on web analytics
• Combine with future web analytics
• It is beneficial to:
• Integrate with Web site’s content management
• Integrate with a customer relationship program
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Newsletters
• E-mail newsletters
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Build brand awareness
Drive web traffic
Customers sign up for newsletters
Provide value
Free subscription
Tie-in with Web site
• Advertising on other newsletters
 Build brand awareness
 Drive web traffic
 Pick newsletters that are relevant
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Search Engine Optimization
• 80% of all web traffic begins with search engine
• SEO – process of increasing probability of a hit
• Methods of SEO
 Paid search insertion
 Increase identification through organic emergence of site
 Paid search ads
• Future dangers
 Clutter
 Increased costs
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Viral Marketing
• Message passed from one consumer to another
 E-mail
 Blogs
• Form of advocacy or word-of-mouth endorsement
• Viral marketing messages
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Advertisements
Hyperlinked promotions
Online newsletters
Streaming videos
Games
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Web Site Design
• Ensure Web site functions properly
• Cost of acquiring a new customer
 E-commerce company  $100
 Other companies  up to $500
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Design to meet function
Match target market
Front page often skipped
Design every page with complete
information
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International Implications
• Shipping issues
• Payment methods
• Communication issues
• Technology issues
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