Transcript Chapter 1

E-Marketing
Communication: Owned Media
Chapter 12 Objectives
 After reading Chapter 12, you will be able to:
 Define integrated marketing communication
(IMC)
 Explain how marketers use the AIDA model
and the hierarchy of effects model.
 List the five traditional marketing
communication tools and distinguish between
traditional media and social media.
 Identify the differences in control and reach
among owned, paid, and earned media.
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Chapter 12 Objectives, Cont.
 Discuss why companies use content
marketing.
 Describe the most commonly used owned
media and their benefits for marketing.
 Explain how and why marketers use search
engine optimization.
 Highlight some of the metrics marketers can
use to evaluate owned media performance.
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Will it Blend?

Blendtec , a supplier of commercial blenders to Starbucks
and others, produced a video in which the CEO blended
unusual products such as a garden rake and a golf club.
 The video, uploaded to YouTube, received 3.9 million
views in an 8-month period and 8.2M views since
2010.
 The Will It Blend? Campaign clearly shows the product
benefits in a humorous and engaging way and the value
of connecting with consumers online.
 Will It Blend? is a favorite of nearly 10,000 registered
YouTube visitors. Is it also one of yours?
 http://www.youtube.com/watch?v=aM94aorYVS4
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E-MARKETING COMMUNICATION

Internet marketing is a powerful way to start and
strengthen relationships with customers.
 Users are in control
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The key to success include
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Can delete unwanted incoming e-mail
Can impatiently click away when website don’t quickly
deliver desired information
Providing relevant, interesting messages
Engaging internet users by attracting them
Marketing communication (MarCom) tools that use
technology to build brands are Important keys to
capturing attention and winning long-term customer
relationships
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Integrated Marketing Communication (IMC)
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IMC is a cross-functional process for planning, executing,
and monitoring brand communications.
The goal is to profitably acquire, retain, and grow
customers.
Why IMC is a cross-functional?
 Because every touch point a customer has with a firm
or its agents helps to form brand images
Profitable customer relationships are key to a firm’s
existence
IMC strategy begins with a thorough understanding of
target markets, the brand, its competition, and other
internal and external factors.
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Integrated Marketing Communication (IMC), Cont.
 Many IMC experts agree that IMC should
 Be more strategic than executional
 Be about more than just advertising and sales
promotion messages
 Include one & two way communication
 Be results driven
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IMC Goals and Strategies

AIDA model “awareness,
interest, desire & action”

Hierarchy of Effects
Model “think, feel, do”
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IMC Goals and Strategies; Cont.
 The AIDA model and hierarchy of effects
model help guide selection of online and offline
MarCom tools to meet their goals.

Both models recognize that consumers first become
aware of a product before they develop feelings and
purchase it.
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Aware & learn / think
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Positive or negative attitude / feel
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Purchase the product / do
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Social Media Strategies & Tactics

hierarchy of effects
model can help
marketers understand
where consumers stand
in relation to the
purchase cycle so the
company can select
appropriate
communication
objectives and strategies,
such as:
 Build brand equity.
 Formulate a direct
response.
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Traditional Marketing Communication Tools
 The five key marketing communication tools are also
called the promotion mix:
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Advertising
Public relations
Sales promotion
Direct marketing
Personal selling
 Marketers often discuss IMC in terms of senders and
recipients, media type, and owned, paid and earned
media.
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Traditional Marketing Communication Tools, Cont.
ADVERTISING
 Advertising is “any paid form of non-personal
presentation and promotion of ideas, goods, or
services by an identified sponsor” (Kotler &
Armstrong, 2011).
 Social Media examples:
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Paid message placed in a YouTube video, Facebook or
LinkedIn
Ad sponsored content delivered to mobile phones
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Traditional Marketing Communication Tools, Cont.
Public Relations

Public relations involves “building good relations with
the company’s various publics by obtaining favorable
publicity, building up a good “corporate image” and
handling or heading off unfavorable rumors, stories and
events” (Kotler & Armstrong, 2011).
 Social Media examples:
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Company-created multimedia content (e.g. online videos,
blogs, wikis, photos…)
Social media press releases,
Social media events
Social media apps for mobile phones
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Traditional Marketing Communication Tools, Cont.
Sales Promotion
 Sales Promotion consists of “short-term incentives
to encourage the immediate purchase or sale of a
product or service” (Kotler & Armstrong, 2011).
 Social Media examples:
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Groupon shared discounts
Free sampling of digital products (e.g. music,
software…)
Games (Advergames are a combination of online
advertising and sales promotion)
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Traditional Marketing Communication Tools, Cont.
Direct Marketing
 Direct Marketing is: "an interactive process of
addressable communication that uses one or more
advertising media to effect, at any location, a
measurable sale, lead, retail purchase or charitable
donation, with this activity analyzed on a database
for the development of ongoing mutually beneficial
relationships between marketers and customers,
prospects or donors."
 Social Media examples, the entire internet & social
media, specifically:
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e-mail and text messaging with offers from companies
Location based systems (Foursquare)
RSS feeds
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Traditional Marketing Communication Tools, Cont.
Personal Selling
 Personal Selling is “personal interactions between a
customer’s and the firm’s sales force for the purpose
of making sales and building customer relationships”
(Kotler & Armstrong, 2011).
 1:1 interaction can also be done online.
 Social Media examples:
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Chat bots (also called virtual agents / assistants), that
allow for conversation on a Website.
Sales lead generation tools.
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Owned, Paid & Earned
Media

Media means only traditional media
 Communication media are communication channels
used to disseminate news, information, entertainment,
and promotional messages.
 In contrast, Social media blend technology and social
interactions for co-creation of content and value.
 Owned media carry communication messages from the
organization to internet users on owned channels.
 Paid media are properties owned by others who are
paid to carry promotional messages.
 Earned media are when individual conversations
become the channel.
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Owned Media
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Includes e-marketing media channels that are fully or
partially controlled by the organizations who create the
lion’s share of the multimedia content.
 This means that company owned media take place on
someone else’s site, so there are more rules and
requirements.
 Primary goals are to
 Engage consumers with positive brand content.
 Entice them to pass along content to others.
 Exercise CRM (customer relationship management).
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Content marketing
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Content marketing is a strategy involving creating and
publishing content offline and online on Web sites and
in social media.
As a result, digital content functions as inbound
marketing to attract customers and prospects, with
appropriate content available when and where users seek
information.
All owned media can be considered content marketing.
Companies become media publishers online
Companies can monetize owned media content by:
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Selling digital content on their media properties
Accepting Google’s Ad Sense or other types of ads
Becoming an affiliate of another Web site
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Web Site

Marketing Public Relations (MPR) includes brandrelated activities and nonpaid, third-party media coverage
to positively influence target markets.
 MPR is the portion of PR directed to the firm’s customer
and prospects in order to build awareness and positive
attitudes about its brands (Will it Blend?).
 There were an estimated 555 million Web sites at the end
of 2011.
 Every organization, company, individual, or brand Web
site is an MPR tool because it serves primarily as an
electronic brochure, including current product and
company information.
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Web Site, Cont.
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Advantages:
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A low-cost alternative to paper brochures or press releases
Product information updated in company databases
The Web can reach new prospects searching for particular
products (inbound marketing)
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The Web site is a door into a company and must provide
inviting, organized, and relevant content.
 Microsites are Web sites designed for a narrow purpose,
with only 3 to 5 pages.
 Objective of company Web sites is to provide information,
entertain, build communities, and serve as a
communication channel with customers.
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Web Site Landing Pages
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Landing pages are closely related to Microsites because
they are often stand-alone Web pages.
A landing page is a unique page that appears after a user
clicks on a link associated with a Web site.
Companies create many different landing pages that
match key words, current offers, ads, and more.
A/B testing is when there are two versions of a Web page
with similar content and images for testing which
performs better.
Companies conduct A/B testing to optimize clickthrough
rates and conversion to purchase.
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Mobile Sites
 The rapid growth of mobile internet access has
marketers scrambling to create mobile versions of
their Web sites.
 Mobile Sites are:
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Quicker to download
Simpler
Focused on the key content
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Web Site Chat
 Some companies provide real-time sales assistance
online.
 Many companies offer a live chat feature.
 Users can open it and ask questions about products
in a real-time chat with a customer service
representative.
 The rep can also push Web pages directly to the
customer so he/she can view the product and take
the order during the chat session.
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Blogs
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Blogs (from the term Web logs) are Web sites where entries are listed
in reverse chronological order and readers can comment on any entry.
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Objective of Blogs id to disseminate views, attract site visitors,
engage in conversations, and support expert standing
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There were more than 181 million blogs at the end of 2011.
There are many types of blogs:
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CEOs blog to put a personal face on their companies.
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Consultants and thought leaders create blogs to disseminate
views, promote books, etc.
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Marketers use blogs to draw users to their Web sites and need to
decide:
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Which platform to use?
Who will do the writing?
How often will they post?
What is the purpose of the blog?
Companies can become involved in blogs without starting their own
(by using RSS feeds)
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Support Forums/Communities
 Companies create spaces for consumers, prospects,
and business customers to:
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Discuss topics of interest,
Provide new product ideas or
Seek company support with technical or product
issues, among other goals.
 For success, marketers should observe, recruit,
evaluate platforms, engage, measure, promote,
and improve their online communities.
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Podcasts
 A podcast is a digital media file available for
download online to computers, music players, tablets
or smartphones.
 Podcasts began with purely audio files for the iPod
and other MP3 players
 Now users can download video podcasts (“vidcasts”
or “videocasts”) for use on many types of receiving
appliances.
 The aim of Podcasts is to support brand-building
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E-Mail
 E-mail remains the most important communication
technique for building customer relationships.
 75.4% of marketers invest in e-mail campaigns.
 E-mail has advantages over postal direct mail.
 No postage or printing charges.
 Immediate and convenient avenue for direct
response using hyperlinks.
 Can be automatically individualized.
 Quicker
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E-Mail, Cont.
 E-mail difficulties include:
 Spam filters and finding
 Maintaining appropriate e-mail lists, which can be
built in any of three ways:
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Web site registration
Rented from a list broker
Harvested from some newsgroup postings or online email directories
E-mails:
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offers the chance for real dialogue with individual
customers
Provides a way to develop broad and deep customer
relationships
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Permission Marketing: Opt-in, Opt-out
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Opt-in: users have voluntarily given permission to receive
commercial e-mail
Marketers messages to opt-in lists can generate response
rates of up to 90%, because these are interested users.
Opt-out is when users have to uncheck the box on a web
page to prevent being put on the e-mail list.
Opt-in techniques are part of a bigger marketing strategy
called permission marketing or “turning strangers into
customers.”
Permission marketing: an opt-in form of marketing in
which advertisers present marketing communication
messages to consumers who agree to receive them.
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Rules for Successful E-Mail Marketing
 Use opt-in to build trust
 Check ISP filters to ensure e-mail reputation
 Use professional email addresses
 Make it easy to unsubscribe
 Use micro-segmentation
 Small improvements can raise response rates
 Give recipients a plenty of opportunities to engage
with the email
 Use metrics to track success
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Spam
 No online users like to receive unsolicited email.
 Now illegal due to the CAN-SPAM Act
 Spammers routinely harvest e-mail addresses
from
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Newsgroup postings
Universities and colleges.
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Privacy
 Databases drive e-mail marketing
 Firms must collect personal information both online
and offline
 Then sending prospects e-mail, customized web
pages, display ads, and more
 Firms must use information to provide value and not
share without permission
 Users don’t mind their behaviors being tracked if
they are for specific purposes
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Text Messaging
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Short Message Services (SMS) are up to 160 characters
of text sent over the Internet usually with a cell phone or
smartphone (Twitter).
 Instant Messaging are short messages sent among users
who are online at the same time
 Multimedia message service (MMS) is not commonly
in use yet because of handheld capability

Marketers can build relationships by sending
permission-based information to customers when and
where they want to receive it.
 To succeed, the messages should be:
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Short, personalized, interactive and relevant
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Online Events
 Designed to generate user interest, build traffic,
or generate revenue with paid admission
 May include
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Online fashion shows,
Seminars (Webinars),
Workshops
Online discussions
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Sales Promotion Offers
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Sales promotions are short-term incentives of gifts or
money that facilitate the movement of products from
producer to end-user.
 Online sales promotions can build brands, databases, and
support sales.
 Most do not build long term customer relationships.
 Online sales promotions works especially to entice
consumers to change their behavior in the short term.
 3-5 higher rates with online promotions than with direct
postal mail.
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Sales Promotion Offers, Cont.
 Sales promotions activities include
1. Coupons
2. Sampling
Free download of a demo version of software (expires in 30
to 60 days)
 Short sample music clip
3. Contests, Sweepstakes
 Draws traffic and keep users returning
 Contests require skill
 Sweepstakes involve a pure chance drawing for the winners
4. Virtual Worlds (to encourage engagement)
 Sites where users take the form of avatars
 Socialize in an online space
 Some companies use their avatars as promotional vehicles
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Sales Promotion Offers, Cont.
Online games (to engage users with product-related
content)
5.
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Played on consoles, PCs, and portable devices
Advergames combine online advertising and gaming, featuring a
company’s product
6. Online Gifting (for revenue)
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7.
Retailers sell group gift cards on their own Web sites and social
networking pages.
The customer can circulate it to many others,
Others can add additional personalized messages and contribute
money via PayPal.
Branded Mobile Apps and widgets
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These support social interactions and user contributions
All but the smallest companies will soon have a mobile presence
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Sales Promotion Offers, Cont.
8. QR Codes and Mobile Tags
 QR codes are barcodes that appear in a white background
 They are an extension of offline paid media
 Use of two-dimensional mobile tags in retail stores is
growing
 Aim: to provide more information
9. Location-Based Marketing
 Involves promotions pushed to mobile devices based on
user location
 Requires a global positioning system (GPS) in a handheld
or automotive device
 Aim: to reach users who are at or near a marketing location
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Sales Promotion Offers, Cont.
10. Social Networks
 Nodes of individuals or organizations that are connected
based on common values, ideas, and friendships.
 They are based on the idea of six degrees of separation—
that each individual is connected to every other individual
in the network by up to six other people.
 Because today’s customer researches brands online and
learns about products from other customers in social
media, businesses want to join in and influence the
conversations.
 Some social networks are called microblogs, which hold
micro content
 Aim: connecting individuals for business or personal
reasons
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Coordinating Internet & Traditional Media IMC Plans

Today, marketers face a mix of owned, paid, and earned
media that can carry the promotional tools of advertising,
sales promotion, direct marketing, public relations, and
personal selling.
 The guiding force for selecting appropriate tools and
media is the communication objectives in desired target
markets.
 Traditional and some internet media carry corporate
monologues, while social media contain dialogs with
target markets: Both play a role, but the dialog is
becoming much more important and is more true to the
well-accepted company goal of customer-driven
marketing.
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Search Marketing
 Search marketing is
marketing via search
engines.
 Complex art and
science to drive
qualified visitors to a
Web site and convert
them to customers.
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Google Leads With Local Search
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Search Engine Optimization (SEO)
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The process of maximizing the number of visitors to a
Web or social media site by ensuring that either:
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the site name and links appear high on a search engine
results page for appropriate key words; or
ads on search engine sites get a high click-through
SEO’s two types:
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Natural Search (Organic Search)
Paid Search
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Search Engine Optimization, Cont.

Natural Search (Organic Search)
 A search marketing strategy involving optimizing a
Web site so it will appear as close to the first search
engine results page as possible
 Natural search strategies depend on tactics such as
site quality, achieving many relevant and high-quality
incoming links or on selecting appropriate keywords.
 When Web sites are optimized for content and meta
tags that hold keywords, search engines know how to
categorize the site.
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Search Engine Optimization, , Cont.
 SEO principles for success
 Spread fresh content all over the Web
 Relevance and popularity
 Optimize content
 Use a vanity URL
 Image search
 Integrate social media and search strategy
 SEO tactics constantly change
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Search Engine Optimization, Cont.
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Vertical Search
 A site-specific search on very specialized topics, such
as travel, online retailers, or books.
 As compared with general search engines, vertical
sites are destinations for fewer users seeking very
specific content.
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Tripadvisor
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LinkedIn
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Owned Media Performance Metrics

Marketers use Web analytics for company-owned Web
sites and blogs such as number of unique visitors, time
on each page, or conversion to sales.
 For owned media, sales promotions, and direct
marketing, there are also appropriate metrics.
 Social media metrics are different from standard
Web site metrics because users interact with branded
media in many different ways.
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Owned Media Performance Metrics, Cont.
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Podcasts: number of downloads and length of time
listening.
Online events: number of questions asked…
Virtual World: number visiting the company
property…
Online games: number playing…
Branded mobile apps: number of downloads,
updates and actions.
QR Codes: number of scans and actions taken at the
site destination.
Web landing pages: exit rate, click-through rate…
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Owned Media Performance Metrics, Cont.
 Sales Promotion Metrics
 Marketers need to know how their sales promotions
contribute to the overall communication goals.
 By measuring how customers use and link from their
promotions, e-marketers can measure what is working
most efficiently.
 Direct Marketing Metrics
 Response rate and ROI are the most appropriate
metrics for any direct marketing campaign.
 Many firms use direct tactics to build databases and
measure success in terms of customer information
growth.
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Publishing as Prentice Hall
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