Download Chapter 1 - Marketing Club UMT

E-M ARKETING /6E
C HAPTER 12
C HAPTER 12 O BJECTIVES
13-2

After reading Chapter 12, you will be able to:

Define integrated marketing communication
(IMC) and explain the importance of hierarchy of
effects models.

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.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
W ILL
IT
B LEND ?
13-3

Blendtec supplies commercial blenders to Starbucks and
others.

Blendtec produced a video in which the CEO blended unusual
products such as a garden rake, a golf club, and light bulbs.


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
connecting with consumers online versus traditional advertising.
Do you think that this type of campaign can build awareness
for new products? Can you think of other examples?
©2009 Pearson Education, Inc. Publishing as Prentice Hall
I NTEGRATED M ARKETING C OMMUNICATION
(IMC)
13-4

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
factors.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
M ARKETING C OMMUNICATION TOOLS
13-5

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.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
IMC G OALS
AND
S TRATEGIES
13-6


The AIDA and “think, feel, do” (hierarchy of effects) models
help guide selection of online and offline MarCom tools.

The models recognize that consumers first become
aware of a product before they develop feelings and
purchase it.

Application depends on whether the product purchasing
decision is high- or low- involvement.
The models can help marketers select appropriate
communication objectives and strategies, such as:

Build brand equity – tv still the best

Elicit a direct
response – the internet most effective
©2009 Pearson Education, Inc. Publishing as Prentice Hall
E-M ARKETING TACTICS
13-7

H IERARCHY OF
E FFECTS G OALS
FOR
Ex. 13.2
©2009 Pearson Education, Inc. Publishing as Prentice Hall
I NTERNET A DVERTISING
13-8

Advertising is nonpersonal, usually
persuasive, 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.

Online advertising reached $21.1 billion
in 2007.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
U.S. I NTERNET A DVERTISING E XPENDITURES
1996-2007
13-9

Ex. 13.4
©2009 Pearson Education, Inc. Publishing as Prentice Hall
T RENDS IN I NTERNET
A DVERTISING
12-10
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
 Use of user-generated advertising

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
l
11
I think the only surprise here is that it took so long for this to happen. Consumers have
been spending far more time online gathering news and information about the world and
doing research for products and retail outlets for years. It’s about time the advertising
dollars have finally shifted to reflect time spent by consumers.
There are several reasons that this has taken so long. The first has to be that online
advertising is a moving target. What worked yesterday may still work today but be
trumped by the newest thing. Search engine marketing maybe the best example as
early on search engines didn’t even exist and now a retailer can use the Google ad
network to buy a “local” ad on the New York Times site that will only be seen by
consumers in his market. Buying a local ad on a national site is still beyond the
comprehension of most local retailers.
Another reason the spending for online took so long to pass print spending is that so
much can be done on the Internet for so little money. The local ad on a national site
program from Google costs a fraction of what a 3 col. x 10″ ad costs in a local paper. A
mere fraction. Social sites are effective marketing tools for local advertisers and there is
no publication costs at reason tall.
The third his has taken so long relates to the second, it’s cheap. Because it’s so
inexpensive it’s hard for traditional agencies both large and small to make money on
such low cost efforts. So we don’t have anyone, especially in local markets representing
the value of the Internet to local retailers. The Internet is a self-serve business model
and local retailers just don’t have the time to keep up with all that is happening.
The lesson for national brand managers in charge of local advertising is to provide local
retailers with the insights, assets and capability to promote themselves online. Thank
goodness there are marketing platforms that can help with print and the Internet making
life much easier for retailers and deliver better ROIs for brand managers.
©
12
12-13
U.S. INTERNET ADVERTISING
EXPENDITURES
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
©
14
I NTERNET A DVERTISING VS
B ROADCAST AND C ABLE TV
I NTERNET A DVERTISING F ORMATS
13-15

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.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
I NTERNET A D R EVENUE BY
MAJOR F ORMAT 2004-2008

Tremendous growth of search ads
12-17
A DVERTISING D OLLARS
BY F ORMAT
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
R ICH M EDIA A DS
13-18

Rich media ads are interactive, at least offering clickthrough.

Rich media ads often use Flash animation to attract
attention.

Many formats can be rich media:

Banner ads

Interstitial ads

Floating ads

Expanding ads
Pearson Education, Inc. Publishing as Prentice Hall
 ©2009
Polite
ads
T RANSITION
AND
F LOATER A DS
13-19

Transition ads appear while other content is loading.

Interstitials are Java-based ads that appear while content
is loading.

Represent 2% of all Web advertising expenditures.

Superstitials are video-like ads that appear when a user
moves their mouse.

Shoshkeles are 5-8 second Flash animations that run
through a Web page.

Capture user attention and can be entertaining.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
C ONTEXTUAL A DS
12-20
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
E-M AIL A DVERTISING
13-21

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.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
S PONSORSHIPS
13-22

Sponsorships integrate editorial content and advertising.

Many firms want to build partnerships that provide useful
content.

Sponsorships allow great interactivity and help firms build
synergistic partnerships that provide useful content.

Sponsor disclosure is an important issue for e-marketers.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
M OBILE A DVERTISING
12-23
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
12-24
M OBILE A DVERTISING
V ENUES BY G OAL
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
M OBILE A DVERTISING I SSUES
12-25

Small bandwith – ads can cause page
downloads to slow significantlt

Small screen – limits the ad size

Techniques of tracking ad effectiveness
not fully developed

Phone users made to pay for the time it
takes the ada to download
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
M ARKETING P UBLIC R ELATIONS
(MPR)
13-26

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.

Users can download video podcasts on many types of
receiving appliances.

Viral marketing and other techniques can help
companies create buzz online.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
S ALES P ROMOTION O FFERS
13-27

Sales promotions are short-term incentives that facilitate
the movement of products to the end user.

Coupons

Rebates

Samples – free versions; free trys

Contests, sweepstakes, and game

2010 usage estimates are 6% - 75% of internet users

Sales promotions do not help build customer relationship for
the long term.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
D IRECT M ARKETING
13-28

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 message services (MMS) and instant
messages.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
E-M AIL
13-29

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.

Consumer distaste for unsolicited e-mail or spam.

Effective lists are hard to obtain and maintain.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
12-30
M ETRICS FOR E LECTRONIC AND
P OSTAL M AIL
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
P ERMISSION M ARKETING :
O PT - IN , O PT - OUT
13-31

When consumers opt-in, they are giving permission to
receive commercial e-mail.

Opt-in techniques are part of a bigger marketing strategy
called permission marketing, “turning strangers into
customers.”

Marketers should obtain lists that are guaranteed to be
100% opt-in.

Lists with opt-in members get much higher response than
other lists.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
V IRAL M ARKETING
13-32

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.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
H OTMAIL – VIRAL MARKETING
12-33
PIONEER

It is generally recognized that Hotmail was the first
successful viral marketer. Started in 1996 by two
visionaries of Internet marketing, the plan was simply to
provide free e-mail addresses to anyone who wanted
them. Whenever someone signed up for an account and
began sending e-mails there was a message at the
bottom of the e-mail inviting the recipient to get a free
e-mail address. The more people who used the service
the more Hotmail received free advertising and the more
people signed up to use the service. It was an overnight
phenomenon
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
T EXT M ESSAGING
13-34

Short message services (SMS) are up to 160 characters of text
sent over the internet with a cell phone or smartphone.

Instant messages are sent among users who are online at the
same time.

Marketers can build relationships by sending permission-based
information where consumers want to receive it.


Flight delays

Music and movie schedules
SMS use continues to grow in all nations
©2009 Pearson Education, Inc. Publishing as Prentice Hall
L OCATION - BASED M ARKETING
12-35

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
D IRECT M ARKETING M ETRICS
13-36

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.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
S PAM
13-37

Spam is unsolicited e-mail.

Spammers routinely harvest e-mail addresses from
newsgroup postings and then spam the members.

Many moderated groups filter spam and most email programs can filter spam.

The CAN-SPAM Act appears to have little ability to
stop spam.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
P ERSONAL S ELLING
13-38

Personal selling involves real time conversation
between a salesperson and customer, face-to-face,
by telephone, or by computer. Not much being
used currently.

Some companies provide real time sales assistance
online.


Land’s End has a live chat feature.
The internet can also generate leads for
salespeople.
©2009 Pearson Education, Inc. Publishing as Prentice Hall
IMC M ETRICS
13-39

Display ads are 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
©2009 Pearson Education, Inc. Publishing as Prentice Hall
B EST AND W ORST P ERFORMING IMC
TACTICS
13-40

Ex. 13.23
©2009 Pearson Education, Inc. Publishing as Prentice Hall