Week 16 - Internet

High creativity Short lead time to

change ads Simplicity of

segmentation High audience interest Easy to directly

measure impact

Clutter Difficult to buy ad

space Reach only computer

users Low intrusion value Hard to retain interest

of surfers

Advantages Disadvantages

Direct mail

Lands in hands of person who opens the mail and makes the purchase decisions.

Response rate averages 2.5%. Disadvantages are clutter and costs. Used heavily in business-to-business

Alternative media

Leaflets and brochures Ads on carry-home bags Ads on clothing and caps Ads on movie trailers Yellow pages Ads sent by fax Video replay and signage at sporting events Ads on walls in airports, subway, etc. Guerilla marketing Product placements

Internet marketing

Huge Internet growth in last decade Daily Internet access Communication Voice over Internet Protocol (VoIP) Web blogs Internet retail sales

$144 billion 7% of global retail sales

Functions of the Internet Advertising Sales support Customer service Public relations E-commerce

E-Commerce

Selling products over the Internet Entry into e-commerce

Trend of future Fad Alternative mode of shopping

Source of information for shoppers

Top cyber categories

Travel Office, home, garden Computer hardware/software Apparel Automotive Consumer electronics Food & beverages

E-Commerce components

Catalog Shopping cart Payment procedure

Online purchases

Security concerns False credit card charges Fraud Identity theft History & advertising

Purchase habits Incentives

E-Commerce incentives

Financial incentives Convenience incentives Value incentives

Online financial incentives

First-time purchases Repeat purchases Cyberbait Effective incentives

Free shipping & handling Dollar discounts Free gifts

Must be meaningful Change periodically

Convenience incentives

Time Update and change website Easy to locate merchandise Convenience services

Value incentives

Change long-term purchase habits Personalize shopping Examples

Available only online Free online courses Free information

Business-to-Business E-Commerce Re-buy situations Brand name recognition Requires incentives

Financial Convenience Value

Online exchanges and auctions Store or warehouse locator

International E-Commerce

Global sales capabilities Areas to address

Communication barriers Cultural differences Shipping Internet capabilities Payment procedures Security

Websites in different languages Call centers in different countries

IMC and the Internet

Important component of IMC Communication between departments

Marketing Human resources Production Information technology Call centers Shipping departments

Drivers to new websites

Internet search engines Word-of-mouth Internet banners Television ads Print ads Cross-references

Product packaging POP

IMC and the Internet

Search engine key words Online advertising E-mail advertising Blogs Off-line advertising

Branding and the Internet

Brand image Website support of image Cyberbranding Brand spiraling Halo brand effect

Brand loyalty and the Internet Brand loyal consumers Communication is key

Make shopping pleasurable Establish one-to-one communications Personalized information Niche customers

Sales support and the Internet Information for sales staff

Client information Product information Company information

Information for customers Prospecting Qualifying prospects Gathering information

Customer service and the Internet Cost-effective method Easy-to-use website Alternative communication

Discussion groups Chat rooms Blogs

Access by businesses Access by manufacturers Response time