Download E-Marketing Communication

E-Marketing
Week 5
E-Marketing
Communication Tools
Objectives
• 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.
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Will it Blend?
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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.
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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.
240,546,983 views in total
Do you think that such campaigns can build awareness?
Can you think of other examples?
http://www.youtube.com/watch?v=qg1ckCkm8YI
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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.
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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.
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IMC GOALS AND STRATEGIES
• The AIDA and “think, feel, do” (hierarchy of
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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.
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E-Marketing Tactics
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Internet 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.
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Trends in Internet Advertising
• Forecasts net global ad growth of US$22bil in
2016, of which digital will comprise 90%
• In Malaysia, digital advertising spending is
expected to grow 28% in 2016, compared to
minus 1% for newspapers, minus 3% for
magazines, minus 0.7% for TV. (“This Year Next
Year” report by GroupM)
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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.
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Advertising Dollars by Format
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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.
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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.
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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.
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Sponsorships
• 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.
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Mobile Advertising
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Mobile Advertising
• Techniques for mobile devices include:
• Display ads
• Messaging
• Location-based ads
• Paid search
• Video
• Advertising on mobile devices is likely to
increase.
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Mobile Advertising Venues by Goal
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Marketing Public Relations (MPR)
• 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.
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Sales Promotion Offers
• 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.
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Direct Marketing
• 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.
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E-Mail
• E-mail, used by 89% of Internet users, is the Internet’s
killer application.
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75% of marketers invest in e-mail campaigns.
• E-mail has advantages over postal direct mail
marketing.
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No postage or printing costs.
Immediacy and convenience.
E-mails can be automatically individualized.
• E-mail also has disadvantages.
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Unsolicited e-mail (spam).
Effective lists are hard to obtain and maintain.
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Metrics for Electronic and Postal
Mail
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Permission Marketing:
Opt-in, Opt-out
• 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.”
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Viral Marketing
• Viral marketing is the online equivalent of “word of
mouth” marketing.
• Gmail is a viral marketing success story.
• Movies such as Blair Witch Project and American
Psycho were promoted using viral marketing
techniques.
• Dove’s "Real Beauty Sketches" campaign is the
new face of viral marketing success. Generated
close to 3.8 million shares in its first month
online and adding 15,000 new subscribers to
Dove's YouTube channel over the following two
months.
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Text Messaging
• 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.
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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.
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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.
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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.
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Personal Selling
• Personal selling involves real time conversation
between a salesperson and customer, face-toface, 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.
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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.
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Best and Worst Performing IMC
Tactics
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