Transcript Ch.8 - modified

Chapter 8
EC Marketing Communications
modified 2007 - jmd
E-commerce Marketing Communications
Copyright © 2004 Pearson Education, Inc.
Slide 8-1
Learning Objectives
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major forms of online marketing
Understand the costs and benefits
Ways to use a Web as a marketing
communications tool
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Slide 8-2
ESPN Motion: TV Ads to the Internet
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ESPN Motion: Leading-edge multimedia form of advertising
System sends packets of video at slow bit rate; when entire
video has been downloaded, it is playable
Enables delivery of very high quality video over Internet
Also delivers 15-20 second advertising clips either before or
after video
Higher quality than streaming video, causes less Internet
congestion
http://www.imediaconnection.com/content/1163.asp
See it: http://espn.go.com/motion/download.html
Copyright © 2004 Pearson Education, Inc.
Slide 8-3
ESPN Motion: TV Ads to the Internet
Page 441
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Slide 8-4
Marketing Communications
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create strong brand expectations
Promotional sales communications: Suggest
consumer “buy now” and make offers to
encourage immediate purchase
Branding communications: Focus on
extolling differentiable benefits of consuming
product or service
Copyright © 2004 Pearson Education, Inc.
Slide 8-5
Online Advertising
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Advantages:
 Ability to target ads to narrow segments and track
performance in almost real time
 Provide greater opportunity for interactivity
Disadvantages:
 Concerns about cost versus benefit
 Concerns about how to adequately measure
results
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Slide 8-6
Forms of Online Advertisements
1.
Banners, pop-ups and rich media ads (These
can have sponsorship and affiliate relationships.)
2.
Website for Marketing: Search engine
marketing: Paid search engine inclusion and
placement
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Slide 8-7
Banners, Pop-ups and Rich Media Ads
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Banners: Display promotional message
in a rectangular box at top or bottom of
computer screen
Pop-ups: Appear on screen without user
calling for them
Pop-unders: Open underneath user’s
active browser window and do not
appear until user closes active window
Rich media ads: Employ Flash, DHTML,
Java, streaming audio and/or video
Interstitials: Provide way of placing a
full-page message between current and
destination pages of user
Superstitials: Rich media ad that is preloaded into browser’s cache and does
not play until fully loaded and user clicks
to another page
What types of ads does the ESPN site
use?
Copyright © 2004 Pearson Education, Inc.
Slide 8-8
Online Advertising Placement Methods
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Banner swapping: Arrangements among firms allow
each firm to have its banners displayed on other
affiliate sites for no cost
Banner exchanges: Arrange for banner swapping
among firms
Advertising networks: Act as brokers between
advertisers and publishers, placing ads and tracking
all activity related to the ad
Copyright © 2004 Pearson Education, Inc.
Slide 8-9
Search Engine Marketing: Paid Search
Engine Inclusion and Placement
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Search engine marketing one of fastest growing and most
effective forms of online marketing communications
Paid inclusion – firms pay for inclusion in search engine index
Paid placement – firms pay for a guarantee that it will appear
prominently in results of relevant searches
Overture.com and Google leaders in this technology
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Slide 8-10
Search Engine Policies on Paid Placement
and Inclusion
Table 8.2, Page 453
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Slide 8-11
Sponsorships and Affiliate Marketing
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Sponsorship: Paid effort to tie an advertiser’s name
to particular information, event, venue in way that
reinforces brand in a positive, yet not overtly
commercial manner
 Advertorial a common form
Affiliate relationship: Permits a firm to put its logo or
banner ad on another firm’s Web site from which
users of that site can click through to the affiliate’s
site
 Sometimes called tenancy deals
 Amazon/ToysRUs an example
 Customer hijacking an issue
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Slide 8-12
Direct E-mail Marketing and the
Spam Explosion
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Direct e-mail marketing: E-mail marketing messages
sent directly to interested consumers who “opt-in” or
have not “opted-out”
Spam: Unsolicited commercial e-mail
 Spam is exploding out of control – March 2003,
45% of all Internet e-mail purportedly was spam
 Efforts to control spam:
 Filtering software (only partly effective)
 Self-regulation by industry (ineffective)
 Government regulation (no legislation yet)
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Slide 8-13
Spam Categories
Figure 8.6, Page 459
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Slide 8-14
Spam at HiM: Type of Spam
Ref.: 80-20 rule study by Kristian Kristoffersen (2004)
Spam received in week 1 divided into categories (%)
Adult
Racial
Make Money Fast (MMF)
Commercial
Bulk
Other
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Slide 8-15
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Ref.: 80-20 rule study by Kristian Kristoffersen (2004)
Spam received in week 1
450
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Slide 8-16
Other Forms of Online Marketing
Communications
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Online catalog: Provide equivalent of paperbased catalog
Online chat: Provides equivalent of help from
sales representative
Public relations: Involves communicating with
target audiences, or publics, using methods
other than advertising
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Slide 8-17
Beval’s Online Catalog
Figure 8.8,
Page 461
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Slide 8-18
Mix Online and Offline Marketing
Figure 8.9, Page 463
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Slide 8-19
Insight on Business: The Very Rich are Different From
You and Me: Neiman Marcus, Nordstrom and Tiffany &
Co.
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Online luxury retailers have had a difficult
time translating their brands and look and feel
of luxury shops into Web site that masses will
see
Cases in point: Nieman Marcus /Kate Spade
and John Hardy Web site boutiques; Tiffany
In contrast, Nordstrom seems to have found
right mix
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Slide 8-20
Marketing Metrics Lexicon
Table 8.3, Page 467
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Slide 8-21
An Online Consumer Purchasing Model
Figure 8.10, Page 470 – Do
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Project Question 1. page 495.
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Web Site Activity Analysis
Figure 8.13, Page 475
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Slide 8-23
How well does online advertising work?
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Table 8.4 – p.474 – how they use tracking data.
Table 8.5 very low click-through rates.
Figure 8.12 – click-through rates decline over 6 year
study. E-mail is still highest.
Table 8.6 – ROI is highest for telephone, e-mail,
other-mail, …respectively.
Table 8.13 – JC Penny customers that use multiple
channels spend much more money than other
customers.
Copyright © 2004 Pearson Education, Inc.
Slide 8-24
Clickthrough Rates by Format
Figure 8.12, Page 472
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Slide 8-25
Forms of Online Advertisements
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Banners, pop-ups and rich media ads
Web Site for Marketing: Search engine
marketing: Paid search engine inclusion and
placement - this is more important – more holistic
approach…
Copyright © 2004 Pearson Education, Inc.
Slide 8-26
Web Site as Marketing Communications Tool
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Web site can be viewed as an extended online advertisement
Domain name: First communication an e-commerce site has with a
prospective customer
Search engine optimization:
 Register with as many search engines as possible
 Keywords have been abused – have appropriate words in the
<Title> Sports Management </Title>
 Page-In Links get you positioned higher. Link site to as many other
sites as possible.
 http://en.wikipedia.org/wiki/PageRank
 In early 2005, Google implemented a new value, "nofollow", for the
rel attribute of HTML link and anchor elements, so that website
builders and bloggers can make links that Google will not consider
for the purposes of PageRank — they are links that no longer
constitute a "vote" in the PageRank system. The nofollow
relationship was added in an attempt to help combat spamdexing.
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Slide 8-27
Spamdexing – to obtain higher page ranking
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Keyword stuffing: placement of keywords within a page to raise the keyword count, variety,
and density of the page. Older versions of indexing programs simply counted how often a
keyword appeared, and used that to determine relevance levels. Most search engines can
now determine whether the frequency is consistent with other sites created specifically to
attract search engine traffic.
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Meta tag stuffing: Repeating keywords in the Meta tags, and using keywords that are
unrelated to the site's content, believed to be ineffective as of 2005 onwards.
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"Gateway" or doorway pages: Creating low-quality web pages that contain very little content
but are instead stuffed with very similar key words and phrases. They are designed to rank
highly within the search results, but serve no purpose to visitors looking for information. A
doorway page will generally have "click here to enter" in the middle of it.
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Scraper sites: Scraper sites, also known as Made for AdSense sites, are created using
various programs designed to 'scrape' search engine results pages or other sources of
content and create 'content' for a website. The specific presentation of content on these
sites is unique, but is merely an amalgamation of content taken from other sources, often
without permission. These types of websites are generally full of advertising, or redirect the
user to other sites.
Copyright © 2004 Pearson Education, Inc.
Slide 8-28
Web Site Functionality – a face to your
business
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Factors affecting effectiveness of a software interface:
1. Utility
2. Ease of use
Factors in credibility of Web sites:
1. Design look
2. Information design/structure
3. Information focus
4. Responsiveness
Visit the JC Penny website: http://www.jcpenney.com/jcp/default.aspx
 How would you rate this site on the above factors?
 What web features do they have to support customers?
 What marketing tools do they use on the website?
 Which of these do you think is more effective in generating sales?
Copyright © 2004 Pearson Education, Inc.
Slide 8-29
Factors in the Credibility of Web Sites
Table 8.14, Page 480
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Slide 8-30
Site Design Features that Impact Online Purchasing
Table 8.8, Page 482
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Slide 8-31
Case Study: Adware, Spyware, Ad Bombs, Ambush
Marketing, Customer Hijacking (p488)
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Ad bomb (Ad-ware): Any computer program that is
surreptitiously downloaded on a client computer for the purpose
of calling for unwanted advertising without the user’s consent or
intervention
Ambush advertising: Gator.com’s mini-billboard
Customer hijacking: self-executing programs downloaded onto
client computers that permit a company to “hijack” customers of
affiliate marketing sites, and redirect affiliate commission to
hijacker
Visit http://www.netrn.net/spywareblog/ .
According to this page, what are some effective
approaches for opposing spyware?
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Slide 8-32