Transcript Week 7 - Buzzword Inc.

Class Discussion Notes
MKT 390 - 401
February 27, 2001
E-Marketing Communication
• What is Integrated Marketing Communication (IMC)?
– A comprehensive plan of communication that includes
advertising, sales promotion, public relations, direct
marketing, personal selling etc. to provide maximum
communication impact with stakeholders
• How is IMC different than one-way communications?
– All the elements of the marketing mix work together to build
consistent brand images
– Relies heavily on databases
– Includes many stakeholders
– Interacts with stakeholders
– Uses a variety of media
E-Marketing Communication
• Hierarchy of Effects Model
High Involvement
Low Involvement
Awareness
Knowledge
Cognitive
(think)
Awareness
Knowledge
Cognitive
(think)
Liking
Preference
Attitude
(feel)
Liking
Preference
Behavior
(do)
Conviction
Purchase
Behavior
(do)
Conviction
Purchase
Attitude
(feel)
E-Marketing Communication
• Hierarchy of Effects Model – cont’d
– To build brand and inform
• Use MarCom tools that operate at the cognitive and
attitude level
– To generate online transactions
• Use MarCom tools that persuade and facilitate the
completion of the sale
• Marketing Communication
– Consists of planned and unplanned messages between
• Firms and customers
• Customers themselves
– Should provide content value
– Internet is different than other channels because of nonlinearity
E-Marketing Communication
– Internet advertising
• Creates awareness
• Provides information
• Creates positive image
• Remind users about product
• Builds brand equity
• Solicits response
E-Marketing Communication
– Two categories of Internet advertising
• Brand advertising
– CPM (cost per thousand)
– Impression advertising
• Direct-response advertising
– Focuses on building sales
– Leverages Internet 2 way communication
– Allows for impulse buying
E-Marketing Communication
– Two Internet advertising methods
• Email
– Least expensive
– Usually text, but can include graphics
• Web site
– Banners and buttons
» Occupy designated space for rent
» Stages of banner ads
First – trained user to click thru
Second – contained animated GIF
Either continuous or fixed animation
Third – interactive banners
» Most banner ads operate by click thru
Banner ad can become interactive point of sale
» Keyword buys
» Ad networks
E-Marketing Communication
• Web site advertising – cont’d
– Sponsorships
» Integrate editorial content and advertising
» Provides additional exposure
» Creates an impression of product endorsement
» Cut through banner clutter
» Provide opportunities for partnership
» Sponsor should be clearly identified
E-Marketing Communication
– Interstitials
» Java-based ads that appear while the content is
loading
» Hard to execute
» Increased waiting time
» Superstitials
Mini-video like ads timed to mouse movement
Loads behind the scenes
» Daughter windows (pop-ups)
Separate window that overlays current browser
window
Annoyance factor
» Most are visual
E-Marketing Communication
– Public relations
• Content that is not advertising, sales promotion or
transactional
• Informs, persuades or entertains
• Internet vs traditional PR
– Speed of information updates
– Interactive, multimedia format
• Brochureware
– Informs customers about products
– Press releases
– Employment information
– Employee information
– Content must be constantly updated
E-Marketing Communication
– Public relations – cont’d
• Interactive Web site
– Entertain
» Free games
– Provide communication channel with customer
– Provide information
» Retail locator
– Assist in site navigation
» Search buttons, drop down menus, checkboxes
– More expensive to maintain than brochureware
• Building community
– Chat rooms, discussion groups
– Usenet and LISTSERV
E-Marketing Communication
– Public relations – cont’d
• Online events
– Generate interest and site traffic
– Corporate uses include seminars, workshops,
discussions
• Online customer service
– Allows for feedback via email
– Timely response is critical
– More sophisticated tools
E-Marketing Communication
– Sales promotion
• Includes coupons, rebates, product sampling, contests,
sweepstakes, premiums
• 3 – 5 times higher response rates on the Internet
• E-coupons
– Sometimes combined with direct mail
– Customer doesn’t have to clip and send in
– Coupon houses
• Sampling
– Digital products such as software and music
• Contests
– Require skill
• Sweepstakes
– Involve chance
E-Marketing Communication
– Personal selling
• Internet can generate sales leads
– Direct marketing
• Communication through non-personal media to target
individuals for the purpose of generating immediate
response
• E-mail
– 3 advantages over direct mail
» No postage
» Convenient avenue for response
» Customized
– Disadvantages over direct mail
» Appropriate lists
» Spam
E-Marketing Communication
• E-mail – cont’d
– May contain graphics or embedded links
– Announcements
– Promotional offers
– Other communication
– E-mail newsletters
– Should always offer reader option to decline future emails
– Lists can be generated
» Web site registrations
» Subscriptions
» Product purchases
– Lists can be purchased
E-Marketing Communication
• E-mail – cont’d
– Opt-in, Opt-out
» List brokers
Guaranteed opt-in
Higher response rate than regular lists
Users are paid to respond
Opt-out
Unchecking the e-mail box on a Web page
– Permission marketing
» Offers consumers incentives to accept ads and
e-mail
E-Marketing Communication
• E-mail – cont’d
– Viral marketing
» Forwarding e-mail to family and friends
– Bulletin boards
– LISTSERV
– E-postcards
– Spam
» Unsolicited e-mail
» Spam filters