Transcript Document

Internet Marketing, 2nd Ed
Mohammed, Fisher, Jaworski, Paddison
Chapter 9 Lecture Slides
Communication
Exhibits and Tables
Copyright © 2003 by Marketspace LLC
Communication — Today’s Objectives
Objectives will be to:

Explore how the Internet affects marketing communications

Examine the marketing levers — offline and online

Discuss the six steps of the communication process

Explore integrated implementation of levers across the four
relationship stages
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Chapter 9:
Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Case Study

Conclusion
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Costumer-Centric Marketing Communications
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Chapter 9:
Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Case Study

Conclusion
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–1: The Effects of the 2Is on Communication
Individualization

Allows more targeted
communications

Individualized
marketing
communications are
more relevant to the
consumer

Individual controls
information flow
Interactivity
Communication

Facilitates relationship
building through twoway communication

Allows tracking of
consumer response to
marketing
communications

Allows consumers to
specify preferences
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–2: The 2Is Streamline Advancement Through the Stages
One Seamless Experience
2Is
Banner Ad
(to promote
awareness)
2Is
Website
User can set up the webpage
according to personal preferences,
register for e-mails, give feedback,
or make a purchase
User clicks on banner
to find out more
Awareness
Personalized
Website
 Individualized
offerings
 Permission emails
Exploration
Commitment
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Chapter 9:
Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Case Study

Conclusion
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–3: Online and Offline Levers
Offline
Outdoor
advertising
(Billboards)
Sales force
/ face-toface
Radio
Yellow
pages
Televisio
n
Brochure
s
Magazine
s
Newspapers
Public
relations
Newsletter
s
Direct
mail
Point-ofpurchase
displays
Sponsorship
s
Websites
Online
Telemarketing
Banner ads
Rich
media
Mass
Personal
websites
Dynamic
ads
Interstitial
s
Search
engines
Customer
service
Classifieds
and
listings
Wireless
devices
E-mail
marketing
Interactive
television
Personal
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–4: Profiles of Online Media Types
Medium
Advantages
Disadvantages
Websites /
personalized
websites
Communicate rich, detailed information that
users can navigate at will; can track users
and customize site accordingly.
Narrow reach
Banner ads
Link directly to buying opportunity; easy to
measure effectiveness; wide reach; potential
for effective targeting
Low attention and click-through rates; short
life; limited “pass-along” audience; very high
clutter; fleeting exposure
Interstitials
Catch users’ attention; link to buying
opportunity
Can annoy users; limited “pass-along”
audience
Rich media
Attention-getting; link to buying opportunity
Can annoy users without broadband access
Dynamic ad
placement
Serves up customized ads to users in real
time
Difficult to execute well; can annoy users,
other advertisers
Search engines
Good credibility; high believability;
guarantee of position available; significant
audience at major sites
High competition; information overload;
limited “pass-along”
Classifieds and
listings
Relatively inexpensive; potential for wide
exposure;qualified audience
Clutter
Opt-in e-mail
High demographic selectivity; high credibility;
significant flexibility; proven high clickthrough rates; absolutely inexpensive; some
pass-along
Requires substantial user base before
effective; high clutter
Mass e-mail
High reach; inexpensive; flexible
Low attention and significant resentment
(spam image)
Customer
service
Interested parties asking for help, thus high
targeting value; generates loyal customers
Very expensive to provide comprehensive
telephone, e-mail, and online support
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Supporting Slide 9–A: Banners Come in Various Shapes and Sizes
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–5: Internet Ad Terms
Ad Clicks

Aggregate number of user clicks on a banner ad.
Ad Views
(Impressions)

Number of times a banner ad is downloaded to a user’s browser and presumably looked
at.
Click-Through

Percentage of ad views that are clicked upon; also called “Ad Click Rate.”
CPC
(Cost-per-click)

Formula used to calculate what an advertiser will pay to an Internet publisher based on
number of click-throughs that a banner generates.

Cost per thousand impressions of a banner ad. A publisher that charges $10,000 per
banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500).

Measurement recorded in server log files that represents each file downloaded to a
browser. Since page design can include multiple files, hits are not a good guide for
measuring traffic at a website.

Number of individuals who visit a website in a specified period of time. Requires the use of
registration or cookies to verify and identify unique users.

A series of requests made by an individual at one site. If no information is requested for a
certain period of time, a “time-out” occurs and the next request made counts as a new visit.
A 30 minute time-out is now standard.
CPM
Hit
Unique Users
Visits
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–6: Interstitial Example
Pop-up
interstitial
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–7: Search Engine with Targeted Ad
Banner ad
linked to
keyword
search
Keyword
search
Banner
ad
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–8: Sponsorship Example
Sponsorship
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Supporting Slide 9–B: Targeted E-Mail
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Chapter 9:
Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Case Study

Conclusion
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Supporting Slide 9–C: Six Steps of the Communication Process
Step 1
Identify Target Audience
Step 2
Determine
Communication Objective
Step 3
Develop Media Plan
Step 4
Create the Message
Step 5
Execute the Campaign
Step 6
Evaluate the Effectiveness
of the Campaign
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–9: A Process for Defining Media Choice and Mix
Communication
Criteria

Behavioral
objectives

Available
spending

Customer
segments
Media
Criteria

Ability to further
behavioral
objectives

CPM

Ability to reach
target segments
Choose
Media Mix

Direct mail,
Internet,
broadcast,
print, pointof-sale, etc.
Tie Back To
Overall
Plan
Allocate
Spending

Allocation of
spending
across media
mix elements
and time
periods
based on
relative
priority

Come back 360
and tie media
plan back to
communications
plan (e.g., will this
media plan drive
the trial or
awareness
required to
deliver your
bottom line)
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–10: Media Scheduling Patterns
Ads may run throughout the year or at
selected times:
Year
Constant
Periodic
Within an ad period,
different media
schedules may be
used:
Continuous, same
intensity
Continuous, varying
intensity
Intermittent, same
intensity
Intermittent, varying
intensity
Advertising
period
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–11: Genuity Ads
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–12: Genuity Website
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Supporting Slide 9–D: Point-Counterpoint:
Which Online Performance Measure Is Best?
Point-Counterpoint
The Traditional CPM Model Is Performance-Based Pricing Is
Best
Better than the CPM Model
Consistent with the way traditional
media advertising is structured
Rightly makes firms pay for putting
messages in front of consumers
Even without click-throughs,
exposure to ads has positive
effects such as brand awareness

CPM model does not fit in the
online environment where
consumers have so much control
over information flow
An action model based on clickthroughs or transactions is better
— it makes advertisers
accountable
The capability to track and
measure user behavior online is
one of the Internet’s greatest
strengths for marketing; the way
advertising is measured should
reflect that

Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Chapter 9:
Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship
Stages

EBay Case Study

Conclusion
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–13: Exploring the Levers Across the Relationship Stages
Exploratory /
Expansion
Awareness





Television, iTV
Magazines and
newspapers
Radio
Yellow pages
Billboards / outdoor




Commitment
Television, iTV
Magazines and
newspapers
Radio
Rich media ads and dynamic
ad placement
Website


Banner ads
Search engines
Listings

Classifieds

E-mail

E-mail

Permission e-mail

Direct mail
Telemarketing

Permission direct mail

Direct mail
Telemarketing



Public relations

Customer service

Customer service

Sales force

Sales force



Sales force

Dissolution

Website
Personalized pages

Terminate marketing
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Chapter 9:
Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Case Study

Conclusion
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–14: EBay Sponsored Link
A Google search for
“digital camera” and
“Olympus” brings up
this eBay-sponsored
link
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–15: EBay’s Message Board as Expansion Lever
EBay uses its message
boards to effectively
expand the use of its
platform
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Exhibit 9–16: EBay/Disney Cobranded Site
Clicking on “Disney
Auctions” from Disney.com
takes visitors to this
cobranded site, which
combines eBay’s lookand-feel with Disney’s
well-known brand.
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Chapter 9:
Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship Stages

EBay Case Study

Conclusion
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC
Communication — Conclusion

Effective marketing communications must be integrated and work together
with synergy, and they must be consumer-centric

The communication marketing levers include various communication types
that can be organized into the following categories: mass offline, personal
offline, mass online, personal online

The communication process involves six steps: 1) Identify the target
audience, 2) determine the communication objective, 3) develop the media
plan, 4) create the message, 5) execute the campaign and 6) evaluate the
effectiveness of the campaign

Specific levers can be applied that are appropriate for each relationship
stage
Last Updated: 07/09/03
Copyright  2003 by Marketspace LLC