Transcript Online Advertising Models

Integrated Marketing
Communications
Brought to you in association with
What is IMC?
A new buzzword?
A new pitch for clients?
A new spin on the same old plan?
OR: A whole new approach that involves all aspects of a
company’s business?
Brought to you in association with
Brief history
B-to-b agencies have traditionally been doing more IMC-oriented
efforts than consumer.
IMC is an evolutionary step in b-to-b marketing
New tools are fueling interest in IMC as
marketers realize they are just that: tools
Brought to you in association with
How widespread is IMC?
According to our OutFront study:
57.5% of companies DO NOT have an IMC program
Of the 39.1% that do, the leading companies are
computer companies
82.1% of computer software companies say they have
an IMC program in place
Brought to you in association with
How widespread is IMC?
In the manufacturing sector:
29.2% of all companies in this area have an IMC
program
The category with the lowest IMC penetration is
furniture & fixtures at 4.9%
Highest is computer hardware at 60.2%, followed by instrument &
related products, 59.4%
Brought to you in association with
What are marketers spending?
In Business Marketing’s OutFront survey, we
found that:
B-to-b marcomm spending: $73 billion
Overall spending was up 14.5%
Online spending grew 143%
On average, companies devoted 1.2% of total
annual sales to b-to-b marcomm
Brought to you in association with
Breaking it down
Advertising: $17.7B
Sales Promo. : $13.6B
Trade shows: $12.6B
Sales force management: $8B*




Direct mktg.: $5.7B
Online: $4.2B
Market rsrch.: $3B
Premiums/incentives: $2.7B
*excludes compensation &
commission
Brought to you in association with
Interactive and IMC


How has interactive affected
marketing methods?
What have marketers learned so far?
Brought to you in association with
1994 – The Internet
Browsers=Mosaic, Cello
 Only a couple hundred .com Web sites
 9600 modems
 Moving to 14.4

Brought to you in association with
1996 – The Internet



AOL
Amazon.com
14.4 modems

Search engines

Netiquette

Build me a web site!
How to make money from consumers?
Brought to you in association with
1997 – The Internet




Surfing is dead
Failed models
Stalled IPO’s
Where’s the money?
Brought to you in association with
1994 – B to B makes its mark




Firms see Web’s unique advantage
Real revenue and ROI
Have made initial commitment: The CEO/CFO listens!
E-commerce is exploding
Brought to you in association with
1999 – Real Maturation


Marketers develop Internet’s unique
potential for reaching customers
They’re abandoning its copycat uses
Brought to you in association with
The sales reality

Cisco Systems
 $ 3 million / day

Dell Computer


GE Information Systems


$ 2 million / day
$ 4 billion / year
Grainger

$ 35 million / year
Brought to you in association with
The 1998 Top Ten










Marshall Industries
Cisco Systems
Bay Networks
Dell Computer
Compaq Computer
Federal Express
IBM
W.W. Grainger
3Com Corp.
First Union
www.marshall.com
www.cisco.com
www.baynetworks.com
www.dell.com
www.compaq.com
www.fedex.com
www.ibm.com
www.grainger.com
www.3com.com
www.firstunion.com
Brought to you in association with
NM200 – Then and Now
November 1997


August 2000
Dell Web revenues: $2
million a day
Cisco: 26% of its business
online


Dell Web revenues: $5
million+ a day
Cisco: 57% of its business
online
Brought to you in association with
What’s changed


The NM Top 10 are shifting from an order-taker
mentality to a customer-centric focus.
B-to-b Web sites are moving from a marketing and
transaction focus to knowledge management and
customer service.
Brought to you in association with
A look at the Top 50
60% accept orders and payments

Up from 46% in our first survey
86% use their sites to distribute product

Up from 78%
96% for customer service and support

Down from 100%
Brought to you in association with
A look at the Top 50
88% distribute e-mail notices/newsletters
71% are part of intranet or extranet

Up from 42%
76% use their Web sites to recruit staff
Brought to you in association with
A look at the Top 50
Other findings:
These sites have undergone anywhere from 0 to 9
redesigns.
Web staff sizes range from 1 to 125.
Cisco has been doing Web marketing the longest, with
more than 5 years of experience.
 Average
site age: 31 months
Brought to you in association with
What we learned
 The
leading Web marketers are moving quickly as the
Net hits its third phase as a business tool.
Phase
1: Technophiles pester boss until they get the
go-ahead to build a Web site.
Phase 2: Marketing wrestles control of Web site from
IT. Site is digital replica of marketing department. Most
companies still here.
Brought to you in association with
Phase 3: The move to IMC
 Sites
are making the shift from vertical to horizontal
Instead of being vertical slices down the marketing
stovepipe, smart companies are transforming their
Web sites into horizontal cross-sections of their entire
business operation.
Marketing shouldn’t lose control, but rather should
lead this enterprise-wide transition to a customercentric focus.
Brought to you in association with
IMC Online


Offline marketing is a passive medium that tells customers
what the brand is
Online marketing is an interactive medium that allows
customers to experience the brand
Brought to you in association with
IMC Online



Fed Ex: Allows customers to track their packages on its
Web site
Dell: The Configurator lets users build their own computer
system
MasterCard: Extends its offline “priceless” campaign to an
online Seal of Approval for e-commerce sites to continue
its trust/security message
Brought to you in association with
The Future



As the stakes become larger, more companies will be
turning to marketing to sell their goods and services
Interactive is a powerful tool when used well, but it is just
one more tool
Marketing will continue to tie together all the tools in its
arsenal through well-organized IMC programs
Brought to you in association with
Reasons to join
To get FREE marketing content
To get free downloads
To get discounts on our services
To get access to our resource centre
Many other Powerpoints in this series
in the members area
Brought to you in association with