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Digital Marketing
Week 4
Online Marketing Mix
Product
Promotion
E-marketing mix
Marketing mix is the tools that are used to apply
marketing strategy of the firm
• Product
• Price
• Place
• Promotion
• Services: People, Process, Physical evidence
2
Digital Marketing
Online Marketing Mix
Product: Customer Solution
The Google Story
10-4
• In 1998, co-founders Brin and Page delivered
an innovative new search strategy that ranked
results on popularity as well as keywords.
• Today, Google performs 10 billion searches a
month, speaks 100 languages and is the
most-visited U.S. Web site.
• Innovative products and strong customer focus
are driving its success and profitability.
The Google Story, cont.
10-5
• Generates revenue from several B2B markets:
– Licensing of its search services.
– Sales of advertising to Web advertisers.
• Google pays close attention to user value,
keeps costs low, and delivers eyeballs to
advertisers.
• Google’s product mix includes 15 search
products, 3 advertising products, 21
applications, 5 enterprise products, and 4
mobile applications.
– What types of products do you think Google will
launch next?
Many Products Capitalize on Internet
Properties
10-6
• A product is a bundle of benefits that satisfies needs of
organizations or consumers.
– Includes tangible goods, services, ideas, people, and
places.
– Products such as search engines are unique to the
internet while others simply use the internet as a new
distribution channel.
Let’s Discuss
10-7
• What other products can you name that are unique to
the Internet?
Many Products Capitalize on Internet
Properties
10-8
• Organizations use research to determine what is
important to customers when creating new products.
• The marketing mix and CRM work together to produce
relational and transactional outcomes with consumers.
Creating Customer Value Online
10-9
• Customer value = benefits - costs
• Product decisions must be made that deliver
benefits to customers.
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Attributes
Branding
Support Services
Labeling
Product Benefits: Attributes
1010
• Attributes include overall quality and specific
features.
• Benefits are the same features from a user
perspective.
• The internet increases customer benefits in many
ways.
• Media, music, software, and other digital products can
be presented on the Web.
• Mass customization is possible.
• User personalization of the shopping experience can be
achieved.
Let’s Discuss
1011
• What is the basic problem that PayPal is
solving?
• What are the specific features of PayPal?
Product Benefits: Branding
1012
• A brand includes a name, symbol, or other
information.
– When a firm registers that information, it becomes
a trademark.
• A brand represents a promise or value
proposition to its customers.
Let’s Discuss
•
•
•
•
What is the promise of Netflix?
What is the promise of Google?
What is the promise of Vodafone?
What is the promise of Lego?
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10-14
Branding Decisions for Web
Products
• Firms can use existing brand names or create
new brands on the internet.
• Some firms may use different names offline
and online to avoid risk if the new product or
channel should fail.
– zara.com.tr vs. morhipo.com.tr
– Sports Illustrated created thriveonline.com.
– Wired Magazine changed its online version name
to Hotwired.
Creating New Brands for
Internet Marketing
10-15
• Good brand names should:
• Suggest something about the product.
• ciceksepeti.com; booking.com
• Differentiate the product from competitors.
• PayPal.com
• Be capable of legal protection.
• On the internet, a good brand name should be
•
•
•
•
short
memorable
easy to spell
translate well into other languages.
Branding on the Web - Internet
Domain Names
10-16
• Picking the right domain name (Web adress)
can make a huge difference.
– Directing people correctly to a site.
– Building consistency in marketing communications.
 More than 97% of words in the dictionary have already been
registered as domain names.
Product Benefits: Labeling
10-17
• Labeling has digital equivalents in the online
world.
– Online “labels” provide information about product
usage, features, and installing software.
– Online “labels” also provide extensive legal
information about the software product.
Customer Codesign
10-18
• Business and consumer collaboration are
possible on the Internet.
• Software developers often seek customer
input about new products.
– They often allow users to download new products,
test them, and provide feedback.
– Customer interaction has been found to increase
product success.
• Amazon seeks customers’ product reviews.
• http://mystarbucksidea.force.com/
Digital Marketing
Online Marketing Mix
Promotion: Communicating the
Online Value
Will it Blend?
• Blendtec supplies commercial blenders to Starbucks
and others.
• Blendtec produced a video in which the CEO blended
unusual products such as a garden rake, iPad, and light
bulbs.
– The video, uploaded to YouTube, received 5.4 million
views in an 8-month period.
– The Will It Blend? Campaign illustrates the potential value
of connecting with consumers through online advertising.
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.
• E-marketers can enhance MarCom by using
innovative technologies, such as e-mail, web
pages, blogs, mobile devices, etc.
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Marketing Communication Tools
• Internet MarCom may include advertising,
sales promotion, public relations, direct
marketing, and personal selling.
• MarCom consists of both planned and
unplanned messages between firms and
customers and among customers.
• Unlock the 007 in you
22
IMC Goals and Strategies
• The AIDA and “think, feel, do” (hierarchy of
effects) models help guide selection of online
and offline MarCom tools.
• The models can help marketers select
appropriate communication objectives and
strategies.
• Yemek sepeti TV ad
23
E-Marketing Tactics for Hierarchy of
Effects Goals
Internet Advertising
• Advertising is nonpersonal communication
about products or ideas paid for by an
identified sponsor.
• All paid space on a Web site or in an email is considered advertising.
Internet Advertising Formats
• Keyword search is the fastest growing and
most important technique.
• Display ads are the second largest.
– Display ads include banners and many others.
– Formats include rectangles, buttons, video and
audio.
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E-Mail Advertising
• E-mail advertising is the least expensive type
of online advertising.
• Advertisers (such as Hotmail) can purchase
space in another firm’s e-mail content.
• E-mail newsletters are another type of e-mail
advertising.
Sponsorships
• Sponsorships integrate editorial content and
advertising.
– Many firms want to build partnerships that provide
useful content.
– Sponsor disclosure is an important issue for emarketers.
Mobile Advertising
• Promising marketing communication
techniques for mobile devices include:
– Free mobile content delivery (marketing public
relations).
– Content-sponsored advertising.
– Location marketing.
– Short message services (SMS).
Marketing Public Relations (MPR)
• Public relations includes activities that
influence public opinion and create goodwill.
• MPR includes brand-related activities, such as
online events, and nonpaid, third-party media
coverage.
– A Web site can serve as an electronic brochure.
– Online events can draw traffic to a site.
– Viral marketing and other techniques can help
companies create buzz online.
Sales Promotion Offers
• Sales promotions are short-term incentives
that facilitate the movement of products to the
end user.
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Coupons
Samples
Contests, sweepstakes, and games
Premiums (free or low cost gifts)
• Marketers report 3-5 times higher response
rates with online promotions than with direct
mail.
E-Mail
• E-mail, used by 92% of internet users, is the internet’s
killer application.
– 94% of marketers invest in e-mail campaigns.
• E-mail has many advantages:
– Average cost is less than $0.01.
– Immediacy and convenience.
– E-mails can be automatically individualized.
• E-mail also has disadvantages.
– Consumer distaste for unsolicited e-mail or spam.
– Effective lists are hard to obtain and maintain.
Permission Marketing:
Opt-in, Opt-out
• When consumers opt-in, they are giving
permission to receive e-mail about topics of
interest to them.
• Opt-in techniques are part of a bigger
marketing strategy called permission
marketing, “turning strangers into customers.”
Viral Marketing
• Viral marketing is the online equivalent of word
of mouth marketing.
– Hotmail is a viral marketing success story.
– Burger King’s Subservient Chicken campaign drew
14 million visitors in the first year.
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.
– Live chat feature.
IMC Metrics
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Traffic Sources
Cost per click
Click through rate
Conversion rate
Bounce rate
Average time on site
ROI