Transcript E-Active Marketing Chapter 9 Chapter Overview Internet has

E-Active
Marketing
Chapter 9
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
E-Commerce
• Selling of goods/services on the Internet
• >50% of U.S. households use e-commerce
• Online sales is 12% of total U.S. retail sales
• E-commerce sites also used for info
gathering
E-Commerce Components
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Catalog
Shopping cart
Payment procedure
Customer service
 FAQs
• Public relations
• Optional elements
Cyber Shopping Categories
•Travel
•Office, home, and garden
•Computers & accessories
•Apparel
$53B
$16B
$12B
$12B
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
Convenience Incentives
• E-commerce available 24/7
• Used to obtain product information
• Update and change Web site
• Easy to locate merchandise
• Convenience services
 Event registries
 Popular items
 Measurement charts
Concerns About E-Commerce
• Seller opportunism
• Security issues
• Information privacy issues
• Brick-and-mortar purchasing habits
Value-Added Incentives
• Change purchasing habits – long term
• Personalized shopping
• Examples
 Merchandise available only online
 Free online courses
 Free information, household tips
Interactive Marketing
• Two-way communications
• Customer involvement
• Tracking of Internet
activities
• Personalize targeted
Online Interactive Tactics
80%
Percent of Total
70%
60%
50%
40%
30%
20%
10%
0%
Online Advertising
• Increase in online budgets
• Effective method for reaching
today’s consumers
• Becoming “standard”
 Click-through response rate – 0.27%
• Traditional integration - Brand
spiraling
Types of Online Advertising
Online
Advertising
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Display or banner ad
Classified ads
Search advertising
Media/video ads
F ig. 9. 8
Banner Advertising
• First online advertising
• Accounts for 32% of online
advertising
• Can embed videos and widgets
• Targeted display ads
Auction exchanges
Matches audience
Online Advertising - Rates
• CPMs will rise more than 75% over
next 5 years
• Overall growth of online advertising
will grow more slowly.
• Average CPM will rise from ~$2.66 in
2012 to $4.68 by 2017.
• Largely due to “Visible Impression
Standard”
Source: Advertising Age, October 9, 2012, “Forrester Reduces Its Forecast for Online Spending”
Online Advertising - Rates
Visible Impression Standard:
• Advertisers pay only for ads that are
visible on the screen.
• May mean fewer impressions;
offsetting CPM gains.
• Online growth rate overall for 2012
~17%, down from 20% in 2011.
Classified and Media/Video
Advertising
• Online classified ad popular
• Media/video ads fastest-growing
format
• Mobile phones and hand-held
devices
• Dwell time, rate higher for video ads
Blogs
• Online musings
• Power of online buzz
• 50% go to social networks
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Download coupons
Search for information
Upcoming sales
Discounts
• 22% read or write a product review on
a blog
Company-Sponsored Blogs
• Effective?
 Blog visitors spend more
 Online 23 hours/week versus 13
• Benefits
 Communicate! Let customers see who you are.
 Reassure shoppers
 Customers can voice opinion
 Company controls site
• Must be honest
 Identify your company if you contribute
significantly to a site.
Online Social Networks
• Facebook, YouTube, etc.
• Developing social network presence
 Specific product page – Sprite
 Posting of ads on social networks (Nike)
 Possible privacy issues
• Consumer-generated advertising
 “Crowdsourcing”
Consumer-Generated Reviews
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Amazon-com – leader
Retailers – online reviews of brands
Early adopters
Implications
 Negative reviews, Low ratings
 Consistent quality products
 Information for
• Marketing plans
• Product modifications
• Service strategies
E-mail Campaigns
It is 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
Newsletters
• E-mail newsletters
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Build brand awareness
Tie-in and drive web traffic
Customers newsletters, subscriptions
Provide value
• Advertising on other newsletters
 Build brand awareness
 Drive web traffic
 Pick newsletters that are relevant
Web Site Design
• Ensure Web site functions properly
• Cost of acquiring a new customer
 E-commerce company  $100
 Other companies  up to $500
• Design to meet function, match target
market
• Front page often skipped
• Design every page with complete
information