Download Marketing Lecture Presentation - Chapter 14 (Online

Online Marketing
Bluefield College
November 23, 2010
Online Marketing
Company efforts to market products and services
and build customer relationships over the
Internet.
 Marketing and the Internet:
– Usage continues to grow with Internet
household penetration equaling 72.5%.
– 33% of American consumers chose the Internet
as the second-most-essential medium in their
lives.
– Online marketing efforts are expanding.
Online Marketing
 Click-only companies:
– So-called dot-coms, which operate only online without any brickand-mortar presence.
– Types of click-only firms:
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E-tailers (Amazon).
Search engines and portals (Google).
Transaction sites (eBay).
Content sites (ESPN).
 Click-and-mortar companies:
– Traditional brick-and-mortar companies that have added online
marketing to their operations.
 Click-and-mortar business trends:
– Almost all traditional companies have set up their own online
sales and communication presence.
– Many click-and-mortar firms are having more online success than
their click-only competitors.
Online Marketing Domains
Online Marketing
 Business-to-consumer (B2C) online marketing:
– Businesses selling goods and services to consumers.
– Trends:
• Online buying continues to grow.
• The Internet influences 35% of total retail sales; 50% of US shops
online.
• B2C consumers differ from off-line consumers because customers
initiate and control the Internet exchange process.
 Business-to-business (B2B) online marketing:
– Use of B2B Web sites, e-mail, online catalogs, online
trading networks, etc. to reach new customers, serve
current customers more effectively, and obtain buying
efficiencies and better prices.
– Most major B2B marketers offer online product
information, purchasing, and support.
Online Marketing
 Consumer-to-consumer (C2C) online marketing:
– Online exchanges of goods and information between
final consumers.
– Auction sites such as eBay offer marketplaces to buy
or exchange goods.
– Blogs and forums facilitate information interchanges.
• Marketers are tapping into blogs as a medium for reaching
carefully targeted consumers.
• Firms should monitor blogs for what is being said.
 Consumer-to-business (C2B) online marketing:
– Online exchanges in which consumers search out
sellers, learn about their offers, and initiate purchases,
sometimes even driving transaction terms.
Marketing in Action
GetSatisfaction.com has created a userdriven customer-service community where
can discuss product and service problems.
Online Marketing
 Corporate web sites:  Marketing web sites:
– Designed to build
customer goodwill,
collect customer
feedback, and
supplement other
sales channels,
rather than to sell
the company’s
products directly.
– A web site that
engages consumers
in interactions that
move them closer
to a direct
purchase or other
marketing
outcome.
Setting Up for Online Marketing
Online Marketing
 Online marketers should pay careful attention to
the seven Cs of effective Web site design:
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Context.
Content.
Community.
Customization.
Communication.
Connection.
Commerce.
 Constant change helps encourage repeat visits.
Fuel For Thought
Visit the www.nps.gov web site.
How well does this web site fulfill the 7 “C’s” of
effective web site design?
Online Marketing
 Placing ads and promotions online:
– Forms of online advertising (follow link for
examples):
• Banner ads.
• Interstitials.
• Pop-up or pop-under ads.
• Rich media ads.
• Search-related ads (contextual advertising).
Online Marketing
 Placing ads and promotions online:
– Other forms of online promotion:
• Content sponsorships (sponsoring special content).
• Alliances and affiliate programs (work with firms to
promote each other).
• Viral marketing (Internet version of word-ofmouth).
– Burger King’s Subservient Chicken campaign was a huge
success.
OfficeMax’s ElfYourself.com viral web
site logged 193 million visits with no
promotion at all. One-third of the
site’s visitors were influenced to shop
at OfficeMax.
Online Marketing
 Creating or participating in online social networks:
– Also called web communities. e.g., Facebook, YouTube.
– Marketers can participate in existing online communities
or set-up their own.
– More focused niche social networks are emerging which
can be used to target special interest groups.
 Using e-mail:
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79% of all direct marketing campaigns employ e-mail.
Enriched e-mail messages can grab attention.
Spam accounts for 90% of all e-mail sent.
Permission-based e-mail marketing is key.
Public Policy and Ethical Issues in
Direct Marketing
 Irritation, unfairness, deception, and fraud:
– Direct marketing excesses may offend
consumers.
– Direct marketing has been accused of taking
unfair advantage of impulsive or less
sophisticated buyers.
– Internet fraud and phishing are growing
concerns.
– Internet shoppers have online security
concerns.
– Marketers often find it difficult to restrict
access by vulnerable or unauthorized groups.
Marketing in Action
Internet fraud has
increased
dramatically in
recent years. The
FBI’s Internet
Crime Center
provides
consumers with a
convenient way to
alert authorities
to suspected
violations.
Public Policy and Ethical Issues in
Direct Marketing
 Invasion of privacy:
– Database marketing allows customers to
receive offers closely matched to their
interests.
– Critics worry whether marketers know TOO
much about consumers.
– Online privacy (particularly for children) is of
particular concern.
– If marketers don’t prevent privacy abuse,
legislators may step in.