Transcript Chapter2: Understanding E

Chapter 7:
E-Business Promotion
For use with Strategic Electronic Marketing:
Managing E-Business 2e
Copyright 2003 South-Western College Publishing
Chapter 7 Slide: 1
LEARNING OBJECTIVES (1)
1. Gain an understanding of e-business
promotional goals.
2. Explain the AIDA concept and its role in
promotion.
3. Describe a hypermedia’s role in gaining
audience attention.
4. Outline what should be done with a Web site to
gain audience interest and desire.
5. Determine what is important in motivating an
audience to take action.
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Chapter 7 Slide: 2
LEARNING OBJECTIVES (2)
6. Be able to explain loyalty concepts in an
e-business environment.
7. Understand how e-business
communication can be used in industrial
markets.
8. Contrast the strengths and weaknesses of
the Internet as an advertising medium.
9. Be able to design an e-business-based
promotional campaign.
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Chapter 7 Slide: 3
Vignette: Amazing Amazon.com
• Thinking Strategically
– Make a short list of what you know about
Amazon.com.
– Decide how much of that information comes from:
• Paid advertising, publicity, and from interacting with the
Web site.
– Use an Internet search engine to see if there is a
button linking to the Amazon.com Web site.
– Evaluate the design of the Web site.
– What in the Web site design would encourage you
to make a purchase.
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Chapter 7 Slide: 4
What Is Promotion?
• Promotion is a communication
process consisting of advertising,
publicity, sales promotion, and
salesmanship.
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Chapter 7 Slide: 5
The AIDA model
• AIDA model is a framework for understanding how
hypermedia can be used to reach promotional goals.
• The AIDA process indicates that:
–
–
–
–
First the attention of the target audience must be gained
Then interest created in the product or service
Desire generated
Action taken by the targeted audience.
• The AIDA process is based on attitude models in which:
– The audience first thinks about an object (cognition)
– Develops feelings (affect)
– Engages in some type of behavior (conation).
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Chapter 7 Slide: 6
Communication Goals
ATTITUDE AIDA
E-BUSINESS COMMUNICATION STRATEGY
MODEL
PROCESS
Cognition
Awareness Use traditional media to create brand attention. Make the
(thinking)
audience aware (Thinking) of the Web site with offline
media. Employ search engines to allow the Web site to be
found in searches. Have other Web sites serve as media for
advertising the Web site. Send targeted e-mail, which can be
used like direct marketing to gain initial attention.
Interest
Use customization and personalization techniques to meet
the individual’s needs. Use targeted e-mail and permission
Affect
marketing. Use push to send information to the audience.
(feeling)
Desire
Conation
(behavior)
Action
Develop content and a design that appeals to the target
audience. Include relationship development components that
will keep the audience at the site.
Use promotions to entice actions. Design seamless
purchasing systems.
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Chapter 7 Slide: 7
Media and Effects
A promotional mix includes the use of public relations and
publicity, advertising, personal selling, sales promotions, and
hypermedia such as Web sites.
PROMOTIONAL STRATEGY MATRIX
ATTENTION
INTEREST
DESIRE
ACTION
PUBLIC RELATIONS
ADVERTISING
PERSONAL SALES
SALES PROMOTION
HYPERMEDIA
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Chapter 7 Slide: 8
Figure 7.2: Consumer vs.
Industrial Markets
CONSUMER VS INDUSTRIAL
Consumer
Industrial
ADVERTISING
PERSONAL SALES
WEB PAGES
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Chapter 7 Slide: 9
Sales Force Automation
• Sales force automation (SFA) uses the
information power of interactive media to enhance
selling efforts.
– The basis for sales force automation is centered on
using Web based technology to aid in the sales process.
• SFA empowers the sales person by allowing them
to link to vital information from the companies
Web site.
– Provide inventory data, price information, and aiding in
sales presentations.
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Chapter 7 Slide: 10
Gaining Attention (1)
• Traditional media gain attention by designing
messages with enough impact to gain and hold the
audience or the message can be repeated numerous
times.
• A Web site differs from traditional media in that
the receiver must actually use the Internet to link
to Web page content.
• An individual will not be exposed to the message
unless they participate in some active measure to
view a Web site.
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Chapter 7 Slide: 11
Gaining Attention (2)
• Steps to gain the audience's attention:
– Include a site's URL or address in other media.
• The Web address should be included in
advertising copy and layouts, business cards,
banner ads located in other Web sites, direct
email and other directed media.
• The use of URLs in print ads have increased
from around 10 percent of ads in 1995 to over
90 percent by 1998
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Chapter 7 Slide: 12
Search Engines (1)
• Search engines should also be used so the
business and its Web address will appear
when the Web user searches for topics
related to that business.
• Search engines are a cost-effective means of
making people aware of a site, but they do
not guarantee that a viewer will choose or
remember the site.
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Chapter 7 Slide: 13
Search Engines (2)
• Three types:
– Search directories require that Web site be submitted
for cataloging.
– Search engines use Web spiders or web bots to collect
information from sites.
• Web spiders are bots, or software robots, that
“crawl” through the Internet looking at Web sites.
– Metacrawlers use the databases of multiple major
search engines. These are good for power searches, but
combining multiple results can lead to repetitive hits.
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Chapter 7 Slide: 14
Top of the Search
• Search engines rules to place URLs at the top of the search
(beginning of a search list):
–
–
–
–
–
–
Number of key terms
Number of links to that site from other sites
How often a site is updated
The number of times the site has been hit
Matches of certain text
Other criteria known only to the management of the search engine.
• Search engines may index only about 15 percent of sites
and only 1 percent of the estimated 550 billion pages of
Web content.
• Those sites that do make it to the top of searches are often
from large U.S.-based businesses or paid sites.
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Chapter 7 Slide: 15
Hypermedia Hyperlinks (1)
• Gaining attention through Web sites:
– Banner ads
• Banner ads have not been highly effective in
achieving click-through, or having an individual
click on a linked banner to link to other sites.
– Sponsorship (or co-branded ads)
• Integrate a company's brand to the editorial content
of the Web site. For example, a firm may sponsor a
news site or community bulletin board
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Chapter 7 Slide: 16
Hypermedia Hyperlinks (2)
– Interstitials
• Automatically load and display content as Web
site content is brought up. This includes the use
of daughter windows that pop and freely float
to display ad content.
– Affiliate marketing strategies
• Have content sites provide links to other, often
commerce-based, sites. These are usually
performance-based links, where the host site
receives a percentage of sales or some other
type of compensation for the click-through.
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Chapter 7 Slide: 17
Interest
• The home page or the first page that a visitor sees
at a site.
– If a visitor has specifically tried to find the web site, or
they have high involvement with the company or
product, they may wait for the page to load and spend
time watching and interacting with the site.
– If the visitor is only browsing, they may zap the site
and move on if it takes too long to download or is not
interesting.
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Chapter 7 Slide: 18
Key Attributes of
Successful Web Sites
Table 7.3: Reasons For Using Favorite Sites
1) Easy of use: 66%
2) Quick download: 58%
3) Frequently updated: 54%
4) Coupons and incentives: 14%
5) Favorite brands: 13%
6) Cutting-edge technology: 12%
7) Games: 12%
8) Purchasing capabilities: 11%
9) Customizable: 10%
10) Offers chat: 10%
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Chapter 7 Slide: 19
Desire
• The cost of obtaining a new Web customer has
dropped from $45 at the beginning of the year
2000 to only $12 by the end of 2001.
– Less than the cost of getting a new customer through
print ads ($958) and radio ads ($1,457).
– Once this customer is found an e-business has an
incentive to keep that customer’s interest and desire to
come back to a site.
– This can be accomplished by effect message design and
communication strategies.
– Knowledge held by the sales force can be tapped to
outline the site’s information flow.
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Chapter 7 Slide: 20
Push and Personalization
• Hypermedia based promotion allows for
personalized messages and sending
messages to the individual using push
technology.
– Webcasting allows the user to have
information delivered to their "doorway" or
browser without requesting or searching for
information.
• Individuals can customize the homepages.
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Chapter 7 Slide: 21
Cookies and Tracking
• Cookies are linked to databases
– Allow for individualized design and pushing the Web
site for the individual.
• Tracking software:
– Reads the behavior of the visitor by keeping track of
the Web pages the visitor sees, how long they are
viewed, what is passed over, what is placed in a
shopping basket, and what is removed.
– This behavior suggests the type of information the user
may be interested in.
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Chapter 7 Slide: 22
Case 7.1: Interest(ing) Game
• Why would individuals spend time on
online game sites?
• Consider how online games differ from
televised games.
• List reasons why companies would develop
games to hold individuals on their Web
sites.
• Why would a company tie its branding
strategy to games?
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Chapter 7 Slide: 23
Figure 7.4: Using Push Technology
1. Initial permission based
registration with site.
2. Web page
request
Individual
Browser
Cookie #:
132896
3. Cookie
Identification
6. Personalized
Website
Web Page
Server
5.
Dynamic
Data
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4. Customer
Database.
Collection and
segmentation
Chapter 7 Slide: 24
Action
• E-business Action Goals:
– Have individuals visit a Web site
– Provide information for databases
– Obtain information for future
purchases
– Make online purchases.
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Chapter 7 Slide: 25
Table 7.3: Motivating Toward
Action
1) Free Shipping: 20%
2) Online Coupon: 14%
3) Product Search Tool: 11%
4) Online product review: 11%
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Chapter 7 Slide: 26
Loyalty
• Businesses have an incentive to maintain
the loyalty of customers because of the high
value of lifetime customers.
• Brick-and-mortar loyalty can be measured
in repeat store visits and product
repurchase.
• Customers stay loyal because they believe
that the cost of searching for information on
new stores and products
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Chapter 7 Slide: 27
Campaigns
• Integrated marketing communication implies that
multiple media are used to target audiences.
• Lee Jeans:
– Target: Teenage boys
– Buddy Lee campaign:
•
•
•
•
•
•
Web site
Targeted email
Television
Radio
Codes on products
Measured by: site stickiness, attitude change, sales
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Chapter 7 Slide: 28
Table 7.4 : Anatomy of Buddy
Lee’s Campaign
Company
Attention
Interest
Desire
Action
Loyalty
Lee Jeans
Email
viral
marketing.
Websites.
Radio.
Online
video
clips.
Websites.
TV ads.
Interactive
games on
website.
TV ads.
Game codes
on product.
Links to
offline
stores.
Website hosts
message
boards,
interactive
games, rich
media and
giveaways.
Measurement:
Stickiness of site. Number of viewers. Pass-along rate. Attitude
change. Sales.
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Chapter 7 Slide: 29
Advertising (1)
• The Web allows for:
– Direct communication and interaction
with customers.
– Tracking a customer's media use.
– The development of customized ads and
placement.
– Facilitates actions such as purchasing.
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Chapter 7 Slide: 30
Advertising (2)
• The Internet is the fasting growing media.
– Taking only 5 years to reach 50 million users compared
to radio’s 38 years, television’s 13 years, and cable’s 10
years.
– Web surfers have shifted media habits away from
television watching.
• Problems with the Web media include:
– Narrow target markets, privacy concerns, limited
bandwidth, no effective measures of success, and hard
to prove returns on investments.
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Chapter 7 Slide: 31
Figure 7.6: Advertising Formats
E-Mail
Rich Media
Keyword Search
Q4 2000
Q2 2001
Interstitials
Q3 2001
Classifieds
Sponsorships
Banners
0%
10%
20%
30%
40%
50%
Data Source: Michael Pastore, “Internet Ads Still Feeling Industry Woes,” CyberAtlas, December 4, 2001,
<http://cyberatlas.internet.com/markets/advertising/article/0,,5941_933861,00.html#table>.
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Chapter 7 Slide: 32
Figure 7.7: Major Web
Advertising Types
Banner Ad, with Animated
JIF, JAVA scripted, or with multimedia.
468 x 60 pixels (Full Banner)
Site Search
Link to
classified
ads.
Web Page
Content
Affiliate
Links
Interstitial will
automatically pop up
and float in front of a
web page.
300 x 250 pixels
Skyscraper
(Medium Rectangle)
Ad
160 x 600
pixels
(Wide
Or an Interstitial will
Skyscraper) automatically pop up
and float behind a
web page.
250 x 250 pixels
(Square Pop-up)
Button Ad
120 x 60
pixels
(Button 2)
Sponsored content
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Chapter 7 Slide: 33
Agencies
• Advertising agencies act as intermediaries by
providing the talent to help set promotional
objectives, create the content, place the promotion
in the media, and provide feedback on the results
of the campaign to the client.
• Agencies:
– DoubleClick (www.doubleclick.com)
– USWeb (www.usweb.com)
– Razorfish (www.razorfish.com)
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Chapter 7 Slide: 34
Timing
• Traditional promotional campaigns use a mix of
media to reach all of the AIDA goals.
– Using a combination of broadcast and print over
differing time periods.
• The Web allows advertisers to develop sites where
the target audience can visit whenever they want
and as often as they like.
– It is important that Web sites be refreshed to
encourage the users to return.
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Chapter 7 Slide: 35
Measuring Effectiveness
• Internet advertising has the potential for allowing
the advertiser to capture information such as who
sees which ad and for how long.
– Web servers are able to track every time an individual
moves from one linked page to another.
– Dead pages, or pages no one visits, can be updated or
deleted.
– This data can be collected from both the sending server
and the user's PC.
– Data from cookies may even provide an indication of
the profile of the user.
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Chapter 7 Slide: 36
Table 7.3: Measurement of
Hypermedia Advertising (1)
MEASUREMENT
METHOD
DEFINITION
COMMENTS
Ad Impression
Measures the number of times an
ad has been requested or pulled by
an individual or pushed, as with
email ads.
Provides no information on
users.
Visit or
Page View
Tracks the number of individual
pages sent to Web viewers without
a period of inactivity (a measure to
insure actions are attributed to a
single browser for a single
session).
Give no indication of how
many users receive or view
pages and no profile data on
users.
Click-Through
Gives measure of a reaction to an
ad. Tracks the number of times an
online ad is clicked on.
Gives no information about the
customers. Click through may
dump a page before it loads.
Click-through rates are very
small.
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Chapter 7 Slide: 37
Table 7.3: Measurement of
Hypermedia Advertising (2)
MEASUREMENT
METHOD
DEFINITION
COMMENTS
Page
Impression
(Hit Counts)
Measures the number of times a
page is sent to the user’s browser.
Pages can be requested but the ads
may not necessarily be seen by the
targeted individual.
Hits may be counted for every
click of the mouse or page
refresh. Records activity
regardless without viewer’s
information.
Unique
Visitors
Allows tracking by the IP address
of the viewer or through cookies.
Multiple users may use the
same IP address to access a site.
Reach
Measures sampled group’s visits (if
25% of sample has visited site,
reach obtained 25%)
Requires the use of panels or
surveys. This can pair
information on the individual’s
background with individual
behavior.
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Chapter 7 Slide: 38
Ad Blocking
• Consumers can filter, or block ads from Web sites.
– This shifts power from businesses to the consumers.
• Filters look at the HTML code and checks files
and file types against a filter list to block ads,
interstitials, or animated banners.
– There is a stronger interest in this type of technology
inside of companies where blocking of ads can improve
speed and network performance.
• Some companies have retaliated by blocking users
who use ad blocking software
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Chapter 7 Slide: 39
Table 7.4: Web Site Ratings Indicators
PAYMENT
METHOD
MEANING
COMMENTS
CPM
Cost-per-thousand
Typical method used to compare
across media.
CPC
Cost-per-click
Cost of clicking through from a
hypermedia page.
CPA
Examples:
Cost-per-action
Cost is based on user taking some
specific action such as purchase
or some other action.
CPL Cost-per-lead
Based on the number of leads that
register from an ad.
CPA Cost-per-acquisition Pays only when customer makes
purchase or acquisition.
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Chapter 7 Slide: 40
Figure 7.6: Traditional Magazine
Advertising Model
Customer
Database:
Current
Potential
Subscription
Delivered
View Cover
and Purchase
Publication
Effectiveness:
Audited
Starch/Other
Sales/Delivery
Revenue
Sources:
Purchase
Advertising
Media Use
Page-Through
Content to View
Ads:
Inside Front Cover
Gatefold
Article Content/ROP
Individual pages to
content, exposed to ads
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Chapter 7 Slide: 41
Figure 7.7: E-Business Promotional
Model
Advertising
Visit to
Website
Online
Search
Customer
Database
HTML
Email
Revenue
Sources:
Advertising
Click Throughs
Percent Sales
Affiliations
Site Use
Read Articles
Community Content
Search Archive
Link to Products
Site Statistics:
Hit Counts
Page View
Click Throughs
Reach
Individuals can bypass
pages to move toward
content through searches
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Chapter 7 Slide: 42
Exercise 7.1: Evaluate Web Sites
AIDA
PROCESS
E-BUSINESS COMMUNICATION STRATEGY
Attention
Describe how offline media make the audience aware of the Web site.
Use a search engine to see which search terms allow the Web site
to be found. How far is this business from the top of the list?
Determine if other Web sites are used as media advertising this
Web site.
Interest
Decide whether this site uses customization and/or personalization
techniques to meet an individual’s needs.
Desire
Describe how content is designed to appeal to the target audience.
How does this site attempt to develop relationships with its
audience?
Action
Decide which types of actions the site attempts to achieve. Determine
if the site uses promotions to entice actions.
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Chapter 7 Slide: 43
Exercise 7.2: Determining
Advertising Rates
• It is relatively easy to find pricing information on
advertising rates from media kits at Web sites.
• Go to a Web site with an advertising rate card and
evaluate how it assigns its charges.
• Visit another site and find its advertising rates.
• How do these compare?
• Compare the target markets of the two Web sites.
• Which Web site is the better value?
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Chapter 7 Slide: 44
Exercise 7.3 Devising an EBusiness Promotional Campaign
• Refer to Figures 7.8 and 7.9. How do other
traditional media such as television,
newspapers, and radio compare to ebusiness-based promotional media?
• Explain why you would prefer to use an ebusiness-based promotional model instead
of the traditional models.
• Indicate the relative strengths and
weaknesses of the various models.
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Chapter 7 Slide: 45
Competitive Exercise 7.4 Devising an
E-Business Promotional Campaign
• Use the Buddy Lee campaign table as a model for
developing an e-business-based promotional
campaign.
• Choose a company and target market. How will
you gain attention, develop interest, foster desire,
and encourage action?
• Also include how you will maintain loyalty.
• Devise a number of metrics to measure the success
of the campaign.
• Justify why your company should adopt your plan.
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Chapter 7 Slide: 46