Advertising Mediums

• Internet Advantages– Information available 24/7

– Customers access at their convenience

– Relatively cost effective

– Targetability

– Message can be timely

– Ads can be interactive

– Ability to coupon

– Color

Advertising Mediums

• Internet Disadvantages

– High maintenance necessary

– Not effective as stand alone strategy

– Difficult to gauge impact (getting better)

– Cost of development and maintenance can vary

– Not everyone has access to internet

Advertising Mediums

• Direct Mail Advantages

– Can be personalized

– Can target specific audiences

– Opportunity to educate customer on product/service benefits

– Couponning

Advertising Mediums

• Direct Mail Disadvantages

– Expensive-$1.00-$2.00 per piece

– Difficult to obtain “clean” mailing list

– Perceived as “junkmail”/often discarded

– Long lead time needed for printing and mailing

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Prentice Hall, © 2009

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Internet Advertising Formats

• Banner Ads– “Click through” rates are 1–7%– www.valleyofthegeeks.com

• Skyscrapers– Extra-long, skinny ads down the side

of a Web site; response rates can be 10 times traditional banner ads

• Pop-ups and pop-behinds– Intrusive, annoying, less common

• Minisites– Don’t have to leave current site;

response rates about 5%

• Superstitials– 20-second video commercial

• Widgets– Brand-sponsored news notes,

calculators, and other gadgets

Animation Boosts Click-Throughs

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• Use of technology like Flash and Java script can double click-through rates

• Games, contests, interviews, and music videos

Visit the

Site

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Email Advertising

• It’s inexpensive and easy

• Permission marketing—asking potential consumers permission to send email.

– Opt in and opt out

• Viral marketing—uses email to circulate a message among family and friends.

• Spam—bulk email; unsolicited messages sent to email boxes.

• Can be profitable.

Principle:Opt-in and opt-out strategies make mass email more

acceptable because customers give permission to marketers to contact them.

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Internet Advertising Functions

• E-business/e-commerce– Businesses sell products, manage

their businesses

• Information Role– Online publishing, encyclopedias

• Entertainment Role– Games, fashion, music, videos,

YouTube, SecondLife (avatars)

• Social Role– MySpace Facebook

• Dialogue Role– Create two-way communication

with customers– Create buzz or word of mouth

between customers and potential customers

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Internet Advertising Advantages

• Relatively inexpensive.

• Reaches people who aren’t watching TV or reading

newspapers.

• Internet advertising is easy to track and effective at

reaching highly targeted audiences.

• Advertisers can customize and personalize

messages.

• For B2B, can provide sales leads or actual sales.

• Small companies can easily and economically

―look big‖ and compete with larger companies.

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Internet Advertising Disadvantages

• Strategic and creative experts aren’t able to

consistently produce effective ads and to

measure their effectiveness.

• Clutter may even be worse than in other

media.

Market places

Definition

Virtual online market

Topsites

www.emarketservices.com (select eMarkets Basics)

• are you ready?

• selecting the right market place

www.ebusiness-watch.org (select publications)

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e-mailmarket places

others

E-marketing

E-goals

E-site check

Evaluation

E-@dvice

E-instruments

e-crafts ( / ) e-coffee ( / )1 2intro 1 2

Market places

Findings

• India and Bangledesh

(www.big-world.org/projects/141.asp)

• sales are disappointing

Barriers B2C

1.You can see, but you cannot touch,

feel and smell’

2.Digital photographs are not colour accurate

3.Consumers expect high service standards

4.Trusting the company / brand

5.Financial security

6.Personal data

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e-mailmarket places

others

E-marketing

E-goals

E-site check

Evaluation

E-@dvice

E-instruments

e-crafts ( / ) e-coffee ( / )1 2intro 1 2

Market places

Recommandations B2B

1. On-line catalogues helpful when dealing

in B2B

2. Design input from professional designers

from Europe

3. Email (cost savings, high speed,

cheap marketing tools)

4. Multimedia, new, cost-effective ways

of promoting

5. Market information, e.g. what craft goods are

currently on sale in Europe?

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e-mailmarket places

others

E-marketing

E-goals

E-site check

Evaluation

E-@dvice

E-instruments

e-crafts ( / ) e-coffee ( / )1 2intro 1 2

Market places

E-commerce and Development Report (2003)

http://r0.unctad.org/ecommerce/ecommerce_en/edr03_en.htm

Findings E-markets

Many coffee e-markets are closed

Fail factors

1. have not been able to reach the critical mass

2. actual samples are important

3. buyers and traders prefer to maintain their

long-established personal contacts

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E-marketing

E-goals

E-site check

Evaluation

E-@dvice

E-instruments

e-crafts ( / ) e-coffee ( / )1 2 1 2intro

Market places

Finding E- auctions

Auction Brazil’s Cup of excellence: SUCCES!

www.cupofexcellence.org/DesktopDefault.aspx?tabid=161

Success factors

1. guaranteed minimum prices for the

initial auction

2. jury consists of coffee experts from

several countries

3. sending samples

This model has been followed by other

countries

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e-mailmarket places

others

E-marketing

E-goals

E-site check

Evaluation

E-@dvice

E-instruments

e-crafts ( / ) e-coffee ( / )1 2intro 1 2