Transcript EC358-CH7l

E-commerce
business. technology. society.
Third Edition
Kenneth C. Laudon
Carol Guercio Traver
Copyright © 2007 Pearson Education, Inc.
Slide 8-1
Chapter 7
E-commerce Marketing Communications
Copyright © 2007 Pearson Education, Inc.
Slide 8-2
Marketing Communications
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Online marketing communications: Methods
used by online firms to communicate with
consumer and 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 © 2007 Pearson Education, Inc.
Slide 8-3
Online Advertising
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Paid message on a Web site, online service or other
interactive medium, such as interactive messaging
2005: $12.9 billion spent, expected to grow to $24.7
billion by 2010
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
Copyright © 2007 Pearson Education, Inc.
Slide 8-4
Online Advertising from 2000-2010
Figure 8.1, Page 441
SOURCE: Based on data from Pricewaterhouse Coopers, 2005; eMarketer, Inc., 2005a;
Universal McCann, 2005; authors’ estimates.
Copyright © 2007 Pearson Education, Inc.
Slide 8-5
How Well Does Online Advertising Work?
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Click-through rates may be low, but these are
just one measure of effectiveness
Research indicates that most powerful
marketing campaigns include both online and
offline advertising
Copyright © 2007 Pearson Education, Inc.
Slide 8-6
The Costs of Online Advertising
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Cost per thousand (CPM): Advertiser pays for
impressions in 1,000 unit lots
Cost per click (CPC): Advertiser pays prenegotiated fee for each click ad receives
Cost per action (CPA): Advertiser pays prenegotiated amount only when user performs
a specific action
Hybrid: Two or more of the above models
used together
Copyright © 2007 Pearson Education, Inc.
Slide 8-7
Software for Measuring Online
Marketing Results
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WebTrends: Software program that
automatically calculates activities at site, such
as abandonment rate, conversion rate, etc.
WebSideStory: Web service that assists
marketing managers
Copyright © 2007 Pearson Education, Inc.
Slide 8-8
Web Site Activity Analysis
Figure 8.14, Page 480
Copyright © 2007 Pearson Education, Inc.
Slide 8-9
The Web Site as a 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
 Ensure that keywords used in Web site description
match keywords likely to be used as search terms
by user
 Link site to as many other sites as possible
 Get professional help
Copyright © 2007 Pearson Education, Inc.
Slide 8-10
Web Site Functionality
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Factors affecting effectiveness of a software
interface:
 Utility
 Ease of use
Factors in credibility of Web sites:
 Design look
 Information design/structure
 Information focus
 Responsiveness
Copyright © 2007 Pearson Education, Inc.
Slide 8-11
Factors in the
Credibility of
Web Sites
Figure 8.15, Page 486
SOURCE: Based on data from Fogg, et al, 2002.
Copyright © 2007 Pearson Education, Inc.
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