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E-MarketingCommunication Tools
E-MARKETING/6ECHAPTER 12
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-2CHAPTER 12 OBJECTIVES
After reading Chapter 12, you will be able to: Define integrated marketing communication
(IMC) and explain the importance of the hierarchy of effects model.
Discuss how marketers use the Internet for advertising, marketing public relations, sales promotions, direct marketing, and personal selling.
Identify several emerging IMC tools. Describe the most effective online IMC tactics.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-3 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. The Will It Blend? Campaign illustrates the
potential value of viral marketing and connecting with consumers online.
Do you think that such campaigns can build awareness? Can you think of other examples?
Ipad – Will it Blend?; Iphone – Will it Blend?
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-4
INTEGRATED MARKETING
COMMUNICATION (IMC) IMC is a cross-functional process for
planning, executing, and monitoring brand communications.
The goal is to profitably acquire, retain, and grow customers.
IMC strategy requires a thorough understanding of target markets, the brand, its competition, and other internal and external factors.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-5 MARKETING COMMUNICATION TOOLS
MarCom consists of both planned and unplanned messages between firms and customers and among customers.
E-marketers can enhance MarCom by using innovative technologies, such as text and multimedia messages, databases, blogs, digital receiving devices, etc.
Internet MarCom may include advertising, sales promotion, marketing public relations (MPR), direct marketing, and personal selling.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-6
The AIDA and “think, feel, do” (hierarchy of effects) models help guide selection of online and offline MarCom tools to meet their goals. The models recognize that consumers
first become aware of a product before they develop feelings and purchase it.
The models can help marketers select appropriate communication objectives and strategies, such as: Build brand equity. Elicit a direct response.
IMC GOALS AND STRATEGIES12-6
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-7E-MARKETING
TACTICS
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-8INTERNET
ADVERTISING Advertising is nonpersonal, usually
persuasive, communication about products or ideas paid for by an identified sponsor.
All paid space on a website or in an e-mail is considered advertising.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-9TRENDS IN INTERNET
ADVERTISING
Online advertising reached $23.5 billion in 2008, $22.7 billion in 2009.
In 2009, 14.3% of ad dollars were spent online. Most spending came from:
Retail Telecom Financial services Automotive Computing
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-10
U.S. INTERNET ADVERTISING EXPENDITURES
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-11
INTERNET ADVERTISING FORMATS
Keyword search is the fastest growing and most important technique.
Display ads are the second largest.
Display ads include traditional banners and many additional sizes.
Formats include rectangles, pop-ups, banners, buttons, and skyscraper display ads.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-12
ADVERTISING DOLLARS BY FORMAT
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-13 RICH MEDIA ADS
Rich media ads are interactive, at least offering click-through.
Rich media ads often use Flash animation to attract attention.
Many formats can be rich media, including: Banner ads. Interstitial ads. Floating ads. Expanding ads. Polite ads.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-14 CONTEXTUAL ADS
Ad servers serve ads into web sites as appropriate users view pages. Facebook also offers specific ad
targeting based on user profiles. This process is also the basis for
Google’s AdSense program. Contextual ads (keyword search)
are the largest category of online advertising.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-15 E-MAIL ADVERTISING
E-mail advertising is the least expensive type of online advertising.
Advertisers can purchase space in another firm’s e-mail content, such as newsletters.
Note that email messages sent from a firm directly to Internet users are direct marketing, not advertising.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-16
Sponsorships integrate editorial content and advertising.
Sponsorships allow great interactivity and help firms build synergistic partnerships that provide useful content.
Sponsor disclosure is an important issue for e-marketers.
SPONSORSHIPS
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-17 MOBILE ADVERTISING
Mobile Internet usage grew about 25% annually from 2007-2010.
Techniques for mobile devices include: Display ads Messaging Location-based ads Paid search Video
Advertising on mobile devices is likely to increase.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-18
MOBILE ADVERTISING VENUES BY GOAL
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-19
Public relations includes activities that influence public opinion and create goodwill.
MPR includes brand-related activities and nonpaid, third-party media coverage to positively influence target markets. A website can serve as an electronic
brochure. Online events can draw traffic to a site. Users can download video podcasts. Viral marketing can create buzz online.
MARKETING PUBLIC RELATIONS (MPR)
12-19
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-20
Sales promotions are short-term incentives that facilitate the movement of products to the end user. Coupons Rebates Samples Contests, sweepstakes, and games
2010 usage estimates are 6%-75% of Internet users.
Sales promotions do not help build customer relationships in the long term.
SALES PROMOTION OFFERS
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-21
Direct marketing is direct communication designed to generate a response.
Online techniques include: Outgoing e-mail. Targeted online ads that solicit a direct
response. Text messages or Short Message
Services (SMS). Multimedia and instant messages.
DIRECT MARKETING
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-22
E-mail, used by 89% of Internet users, is the Internet’s killer application. 75% of marketers invest in e-mail campaigns.
E-mail has advantages over postal direct mail marketing. No postage or printing costs. Immediacy and convenience. E-mails can be automatically individualized.
E-mail also has disadvantages. Unsolicited e-mail (spam). Effective lists are hard to obtain and maintain.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-23
METRICS FOR ELECTRONIC AND POSTAL MAIL
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-24
When consumers opt-in, they are giving permission to receive commercial e-mail.
Marketers should obtain lists that are guaranteed to be 100% opt-in.
Opt-in techniques are part of a bigger marketing strategy called permission marketing or “turning strangers into customers.”
PERMISSION MARKETING: OPT- IN, OPT-OUT
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-25 VIRAL MARKETING
Viral marketing is the online equivalent of “word of mouth” marketing. Hotmail is a viral marketing success story. Movies such as Blair Witch Project and
American Psycho were promoted using viral marketing techniques.
Burger King’s Subservient Chicken campaign drew 14 million visitors in the first year.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-26
Short Message Services (SMS) are up to 160 characters of text sent over the Internet with a cell phone or smartphone.
Marketers can build relationships by sending permission-based information where consumers want to receive it.
SMS use continues to grow in all industrialized nations.
TEXT MESSAGING
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-27
LOCATION-BASED MARKETING
Location-based marketing includes promotional offers pushed to mobile devices and based on the user’s physical location.
Google is on the leading edge with its local search.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-28
DIRECT MARKETING METRICS
Response rate and ROI are the most appropriate metrics for direct marketing campaigns.
E-mail receives a widely varied and generally low click through rate, but the highest ROI of any direct media.
In a study of SMS campaigns, 94% of messages were read by recipients and 23% showed or forwarded messages to a friend.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-29 SPAM
Spam is unsolicited e-mail.
The CAN-SPAM Act appears to have little ability to stop spam.
Spammers routinely harvest e-mail addresses from newsgroup postings and then spam the members.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-30 PERSONAL SELLING
Personal selling involves real time conversation between a salesperson and customer, face-to-face, by telephone, or by computer.
Some companies provide real time sales assistance online.
Land’s End has a live chat feature.
The Internet can also generate leads for salespeople.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-31 IMC METRICS
Display ads are generally ineffective. Only 0.2% of all users click on them.
Online ads that were bigger or contained rich media delivered greater impact.
There is increasing evidence that online and offline advertising work well together.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-32
BEST AND WORST PERFORMING IMC TACTICS
12-33
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall