Download Promotion Management

Chapter Objectives
• To explore the different ways the internet is used
to communicate.
• To understand the role of the internet and
interactive media in an IMC program.
• To review the strengths and limitations of the
internet.
• To evaluate the effectiveness of communications
through the internet.
Chapter 15 : Internet Marketing and Interactive Media
Internet Terms
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Ad clicks
Ad click rate
Ad views (impressions)
Banner
Button
CPC
CPM
Domain name
Hit
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Interstitial
Link
Opt-in-e-mail
Page views
Rich media
Sponsorships
Unique users
Valid hits
Visits
Chapter 15 : Internet Marketing and Interactive Media
Elements of the Internet
• Electronic mail (e-mail)
– Allows users to send electronic mail
• Usenet
– Discussion groups, newsgroups, bulletin boards
• Telnet
– Databases, library catalogs, and electronic journals
Chapter 15 : Internet Marketing and Interactive Media
Elements of the Internet
• Hypertext transfer protocol (http)
– Software protocol for transferring hypertext language
files
• Client server
– Computer system for transferring files between
computers
• Gopher
– Document retrieval system used to search for
information
Chapter 15 : Internet Marketing and Interactive Media
Web Participants
• Users: consumer market
– Internet users continue to grow in numbers
– Higher education and income are more likely to use the
internet
– 81% of households with income over $80 000 use the
internet
Chapter 15 : Internet Marketing and Interactive Media
Web Participants
• Shoppers
– Internet shoppers clearly evidence a rich, active, and
diverse lifestyle.
– These people are happy with the convenience of the
internet.
– Expected that consumer internet spending will reach
$184 billion by 2004.
Chapter 15 : Internet Marketing and Interactive Media
Web Participants
• Users: business to business
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Approximately 90% of all businesses have websites.
B2B sites generate much higher revenues than B2C.
Revenue expected to reach $2.7 trillion by 2004.
Major advantage is finding information about products
and services.
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Build brand image
– Brand loyalty still the most important aspect of any
marketing strategy
• I.E. “I AM CANADIAN” pride commercial
– Well designed websites are an excellent way to relay
product and service information
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Disseminate information
– Primary objective for using the web is to provide indepth information about the company.
– Having a website has become a necessity in B2B
markets.
– B2C websites are used to communicate information
about firm’s products and services.
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Create awareness
– Even with limited budgets, the web creates opportunity
to expand awareness.
• Gather research information
– Web is used to gain audience profile information
• I.E. Use of cookies, internet surveys
– Critical that consumers are aware that their information
may be kept in a database.
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Stimulate Trial and Re-Buy
– Some websites offer E-coupons
– Links to your site from other sites
• Improve Customer Service
– Providing information, answering inquiries, taking
complaints, email response sections, FAQs.
– Available personnel on 24/7 basis.
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Increase distribution
– Internet being used to distribute coupons and samples.
– Affiliations - relationships among websites in which
companies cross-promote one another’s products.
Chapter 15 : Internet Marketing and Interactive Media
Developing & Maintaining a Website
• Requires significant time and effort.
– Creativity, effective marketing, and continual updating
of the site.
• Some sites are used for information purposes.
• Other sites market more aggressively.
– I.E. Www.kimberlyclark.Com.
Chapter 15 : Internet Marketing and Interactive Media
Advertising on the Internet
• Variety of forms of advertising on the internet
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Banners
Sponsorships
Text ads
Pop ups
Interstitials
Push technologies
Link ads
Chapter 15 : Internet Marketing and Interactive Media
Sales Promotion on the Internet
• Has become most frequently use method of
encouraging repeat visits.
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“Free stuff.”
Sweepstakes.
Marketing alliances.
Coupons.
• 30% of web user respondents had used online
coupons.
Chapter 15 : Internet Marketing and Interactive Media
Personal Selling on the Internet
• High-cost and poor-reach disadvantages of
personal selling can now be cut back.
• Provides excellent selling support.
• Provides more information in a more timely
manner.
• Internet and personal selling are designed to be
complementary tools in a good IMC program.
Chapter 15 : Internet Marketing and Interactive Media
PR on the Internet
• Many sites devote a portion of their content to PR
activities.
• Web offers many opportunities to PR
practitioners:
– Development of media relations websites.
– Provide customized information dissemination.
– Development of positive e-mail relationships.
Chapter 15 : Internet Marketing and Interactive Media
Direct Marketing on the Internet
• Direct mail
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Highly targeted
Relies on e-mail lists
Attempts to reach those with specific needs
Often used by catalogers
• Marketing databases on the net
– Companies build or acquire a database
– The database is sold to subscribers
– Delivery may be on- or off-line
Chapter 15 : Internet Marketing and Interactive Media
Direct Marketing on the Internet
• Infomercials
– Program content similar to television, cable or satellite
– Web provides for greater audience interaction
• E-commerce
– Rapid growth rates likely to continue
– CDs, books, travel are main categories
– Clothing, cars, financial services are all gaining ground
Chapter 15 : Internet Marketing and Interactive Media
Strengths of Internet Marketing
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Target marketing
Message tailoring
Interactive capabilities
Information access
Sales potential
Creativity
Exposure
Speed
Chapter 15 : Internet Marketing and Interactive Media
Limitations of Internet Marketing
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Measurement problems
Audience characteristics
Websnarl
Clutter
Potential for deception
Costs
Limited production quality
Poor reach
Chapter 15 : Internet Marketing and Interactive Media