* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Chapter2: Understanding E
Search engine optimization wikipedia , lookup
Social media marketing wikipedia , lookup
Audience measurement wikipedia , lookup
Affiliate marketing wikipedia , lookup
Target audience wikipedia , lookup
Marketing communications wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Targeted advertising wikipedia , lookup
Marketing strategy wikipedia , lookup
Marketing plan wikipedia , lookup
Multicultural marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Green marketing wikipedia , lookup
Ambush marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Viral marketing wikipedia , lookup
Ad blocking wikipedia , lookup
Global marketing wikipedia , lookup
Street marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Advertising campaign wikipedia , lookup
Chapter 7: E-Business Promotion For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 1 LEARNING OBJECTIVES (1) 1. Gain an understanding of e-business promotional goals. 2. Explain the AIDA concept and its role in promotion. 3. Describe a hypermedia’s role in gaining audience attention. 4. Outline what should be done with a Web site to gain audience interest and desire. 5. Determine what is important in motivating an audience to take action. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 2 LEARNING OBJECTIVES (2) 6. Be able to explain loyalty concepts in an e-business environment. 7. Understand how e-business communication can be used in industrial markets. 8. Contrast the strengths and weaknesses of the Internet as an advertising medium. 9. Be able to design an e-business-based promotional campaign. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 3 Vignette: Amazing Amazon.com • Thinking Strategically – Make a short list of what you know about Amazon.com. – Decide how much of that information comes from: • Paid advertising, publicity, and from interacting with the Web site. – Use an Internet search engine to see if there is a button linking to the Amazon.com Web site. – Evaluate the design of the Web site. – What in the Web site design would encourage you to make a purchase. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 4 What Is Promotion? • Promotion is a communication process consisting of advertising, publicity, sales promotion, and salesmanship. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 5 The AIDA model • AIDA model is a framework for understanding how hypermedia can be used to reach promotional goals. • The AIDA process indicates that: – – – – First the attention of the target audience must be gained Then interest created in the product or service Desire generated Action taken by the targeted audience. • The AIDA process is based on attitude models in which: – The audience first thinks about an object (cognition) – Develops feelings (affect) – Engages in some type of behavior (conation). For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 6 Communication Goals ATTITUDE AIDA E-BUSINESS COMMUNICATION STRATEGY MODEL PROCESS Cognition Awareness Use traditional media to create brand attention. Make the (thinking) audience aware (Thinking) of the Web site with offline media. Employ search engines to allow the Web site to be found in searches. Have other Web sites serve as media for advertising the Web site. Send targeted e-mail, which can be used like direct marketing to gain initial attention. Interest Use customization and personalization techniques to meet the individual’s needs. Use targeted e-mail and permission Affect marketing. Use push to send information to the audience. (feeling) Desire Conation (behavior) Action Develop content and a design that appeals to the target audience. Include relationship development components that will keep the audience at the site. Use promotions to entice actions. Design seamless purchasing systems. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 7 Media and Effects A promotional mix includes the use of public relations and publicity, advertising, personal selling, sales promotions, and hypermedia such as Web sites. PROMOTIONAL STRATEGY MATRIX ATTENTION INTEREST DESIRE ACTION PUBLIC RELATIONS ADVERTISING PERSONAL SALES SALES PROMOTION HYPERMEDIA For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 8 Figure 7.2: Consumer vs. Industrial Markets CONSUMER VS INDUSTRIAL Consumer Industrial ADVERTISING PERSONAL SALES WEB PAGES For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 9 Sales Force Automation • Sales force automation (SFA) uses the information power of interactive media to enhance selling efforts. – The basis for sales force automation is centered on using Web based technology to aid in the sales process. • SFA empowers the sales person by allowing them to link to vital information from the companies Web site. – Provide inventory data, price information, and aiding in sales presentations. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 10 Gaining Attention (1) • Traditional media gain attention by designing messages with enough impact to gain and hold the audience or the message can be repeated numerous times. • A Web site differs from traditional media in that the receiver must actually use the Internet to link to Web page content. • An individual will not be exposed to the message unless they participate in some active measure to view a Web site. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 11 Gaining Attention (2) • Steps to gain the audience's attention: – Include a site's URL or address in other media. • The Web address should be included in advertising copy and layouts, business cards, banner ads located in other Web sites, direct email and other directed media. • The use of URLs in print ads have increased from around 10 percent of ads in 1995 to over 90 percent by 1998 For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 12 Search Engines (1) • Search engines should also be used so the business and its Web address will appear when the Web user searches for topics related to that business. • Search engines are a cost-effective means of making people aware of a site, but they do not guarantee that a viewer will choose or remember the site. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 13 Search Engines (2) • Three types: – Search directories require that Web site be submitted for cataloging. – Search engines use Web spiders or web bots to collect information from sites. • Web spiders are bots, or software robots, that “crawl” through the Internet looking at Web sites. – Metacrawlers use the databases of multiple major search engines. These are good for power searches, but combining multiple results can lead to repetitive hits. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 14 Top of the Search • Search engines rules to place URLs at the top of the search (beginning of a search list): – – – – – – Number of key terms Number of links to that site from other sites How often a site is updated The number of times the site has been hit Matches of certain text Other criteria known only to the management of the search engine. • Search engines may index only about 15 percent of sites and only 1 percent of the estimated 550 billion pages of Web content. • Those sites that do make it to the top of searches are often from large U.S.-based businesses or paid sites. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 15 Hypermedia Hyperlinks (1) • Gaining attention through Web sites: – Banner ads • Banner ads have not been highly effective in achieving click-through, or having an individual click on a linked banner to link to other sites. – Sponsorship (or co-branded ads) • Integrate a company's brand to the editorial content of the Web site. For example, a firm may sponsor a news site or community bulletin board For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 16 Hypermedia Hyperlinks (2) – Interstitials • Automatically load and display content as Web site content is brought up. This includes the use of daughter windows that pop and freely float to display ad content. – Affiliate marketing strategies • Have content sites provide links to other, often commerce-based, sites. These are usually performance-based links, where the host site receives a percentage of sales or some other type of compensation for the click-through. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 17 Interest • The home page or the first page that a visitor sees at a site. – If a visitor has specifically tried to find the web site, or they have high involvement with the company or product, they may wait for the page to load and spend time watching and interacting with the site. – If the visitor is only browsing, they may zap the site and move on if it takes too long to download or is not interesting. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 18 Key Attributes of Successful Web Sites Table 7.3: Reasons For Using Favorite Sites 1) Easy of use: 66% 2) Quick download: 58% 3) Frequently updated: 54% 4) Coupons and incentives: 14% 5) Favorite brands: 13% 6) Cutting-edge technology: 12% 7) Games: 12% 8) Purchasing capabilities: 11% 9) Customizable: 10% 10) Offers chat: 10% For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 19 Desire • The cost of obtaining a new Web customer has dropped from $45 at the beginning of the year 2000 to only $12 by the end of 2001. – Less than the cost of getting a new customer through print ads ($958) and radio ads ($1,457). – Once this customer is found an e-business has an incentive to keep that customer’s interest and desire to come back to a site. – This can be accomplished by effect message design and communication strategies. – Knowledge held by the sales force can be tapped to outline the site’s information flow. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 20 Push and Personalization • Hypermedia based promotion allows for personalized messages and sending messages to the individual using push technology. – Webcasting allows the user to have information delivered to their "doorway" or browser without requesting or searching for information. • Individuals can customize the homepages. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 21 Cookies and Tracking • Cookies are linked to databases – Allow for individualized design and pushing the Web site for the individual. • Tracking software: – Reads the behavior of the visitor by keeping track of the Web pages the visitor sees, how long they are viewed, what is passed over, what is placed in a shopping basket, and what is removed. – This behavior suggests the type of information the user may be interested in. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 22 Case 7.1: Interest(ing) Game • Why would individuals spend time on online game sites? • Consider how online games differ from televised games. • List reasons why companies would develop games to hold individuals on their Web sites. • Why would a company tie its branding strategy to games? For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 23 Figure 7.4: Using Push Technology 1. Initial permission based registration with site. 2. Web page request Individual Browser Cookie #: 132896 3. Cookie Identification 6. Personalized Website Web Page Server 5. Dynamic Data For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing 4. Customer Database. Collection and segmentation Chapter 7 Slide: 24 Action • E-business Action Goals: – Have individuals visit a Web site – Provide information for databases – Obtain information for future purchases – Make online purchases. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 25 Table 7.3: Motivating Toward Action 1) Free Shipping: 20% 2) Online Coupon: 14% 3) Product Search Tool: 11% 4) Online product review: 11% For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 26 Loyalty • Businesses have an incentive to maintain the loyalty of customers because of the high value of lifetime customers. • Brick-and-mortar loyalty can be measured in repeat store visits and product repurchase. • Customers stay loyal because they believe that the cost of searching for information on new stores and products For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 27 Campaigns • Integrated marketing communication implies that multiple media are used to target audiences. • Lee Jeans: – Target: Teenage boys – Buddy Lee campaign: • • • • • • Web site Targeted email Television Radio Codes on products Measured by: site stickiness, attitude change, sales For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 28 Table 7.4 : Anatomy of Buddy Lee’s Campaign Company Attention Interest Desire Action Loyalty Lee Jeans Email viral marketing. Websites. Radio. Online video clips. Websites. TV ads. Interactive games on website. TV ads. Game codes on product. Links to offline stores. Website hosts message boards, interactive games, rich media and giveaways. Measurement: Stickiness of site. Number of viewers. Pass-along rate. Attitude change. Sales. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 29 Advertising (1) • The Web allows for: – Direct communication and interaction with customers. – Tracking a customer's media use. – The development of customized ads and placement. – Facilitates actions such as purchasing. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 30 Advertising (2) • The Internet is the fasting growing media. – Taking only 5 years to reach 50 million users compared to radio’s 38 years, television’s 13 years, and cable’s 10 years. – Web surfers have shifted media habits away from television watching. • Problems with the Web media include: – Narrow target markets, privacy concerns, limited bandwidth, no effective measures of success, and hard to prove returns on investments. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 31 Figure 7.6: Advertising Formats E-Mail Rich Media Keyword Search Q4 2000 Q2 2001 Q3 2001 Interstitials Classifieds Sponsorships Banners 0% 10% 20% 30% 40% 50% Data Source: Michael Pastore, “Internet Ads Still Feeling Industry Woes,” CyberAtlas, December 4, 2001, <http://cyberatlas.internet.com/markets/advertising/article/0,,5941_933861,00.html#table>. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 32 Figure 7.7: Major Web Advertising Types Banner Ad, with Animated JIF, JAVA scripted, or with multimedia. 468 x 60 pixels (Full Banner) Site Search Link to classified ads. Web Page Content Affiliate Links Interstitial will automatically pop up and float in front of a web page. 300 x 250 pixels Skyscraper (Medium Rectangle) Ad 160 x 600 pixels (Wide Or an Interstitial will Skyscraper) automatically pop up and float behind a web page. 250 x 250 pixels (Square Pop-up) Button Ad 120 x 60 pixels (Button 2) Sponsored content For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 33 Agencies • Advertising agencies act as intermediaries by providing the talent to help set promotional objectives, create the content, place the promotion in the media, and provide feedback on the results of the campaign to the client. • Agencies: – DoubleClick (www.doubleclick.com) – USWeb (www.usweb.com) – Razorfish (www.razorfish.com) For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 34 Timing • Traditional promotional campaigns use a mix of media to reach all of the AIDA goals. – Using a combination of broadcast and print over differing time periods. • The Web allows advertisers to develop sites where the target audience can visit whenever they want and as often as they like. – It is important that Web sites be refreshed to encourage the users to return. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 35 Measuring Effectiveness • Internet advertising has the potential for allowing the advertiser to capture information such as who sees which ad and for how long. – Web servers are able to track every time an individual moves from one linked page to another. – Dead pages, or pages no one visits, can be updated or deleted. – This data can be collected from both the sending server and the user's PC. – Data from cookies may even provide an indication of the profile of the user. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 36 Table 7.3: Measurement of Hypermedia Advertising (1) MEASUREMENT METHOD DEFINITION COMMENTS Ad Impression Measures the number of times an ad has been requested or pulled by an individual or pushed, as with email ads. Provides no information on users. Visit or Page View Tracks the number of individual pages sent to Web viewers without a period of inactivity (a measure to insure actions are attributed to a single browser for a single session). Give no indication of how many users receive or view pages and no profile data on users. Click-Through Gives measure of a reaction to an ad. Tracks the number of times an online ad is clicked on. Gives no information about the customers. Click through may dump a page before it loads. Click-through rates are very small. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 37 Table 7.3: Measurement of Hypermedia Advertising (2) MEASUREMENT METHOD DEFINITION COMMENTS Page Impression (Hit Counts) Measures the number of times a page is sent to the user’s browser. Pages can be requested but the ads may not necessarily be seen by the targeted individual. Hits may be counted for every click of the mouse or page refresh. Records activity regardless without viewer’s information. Unique Visitors Allows tracking by the IP address of the viewer or through cookies. Multiple users may use the same IP address to access a site. Reach Measures sampled group’s visits (if 25% of sample has visited site, reach obtained 25%) Requires the use of panels or surveys. This can pair information on the individual’s background with individual behavior. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 38 Ad Blocking • Consumers can filter, or block ads from Web sites. – This shifts power from businesses to the consumers. • Filters look at the HTML code and checks files and file types against a filter list to block ads, interstitials, or animated banners. – There is a stronger interest in this type of technology inside of companies where blocking of ads can improve speed and network performance. • Some companies have retaliated by blocking users who use ad blocking software For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 39 Table 7.4: Web Site Ratings Indicators PAYMENT METHOD MEANING COMMENTS CPM Cost-per-thousand Typical method used to compare across media. CPC Cost-per-click Cost of clicking through from a hypermedia page. CPA Examples: Cost-per-action Cost is based on user taking some specific action such as purchase or some other action. CPL Cost-per-lead Based on the number of leads that register from an ad. CPA Cost-per-acquisition Pays only when customer makes purchase or acquisition. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 40 Figure 7.6: Traditional Magazine Advertising Model Customer Database: Current Potential Subscription Delivered View Cover and Purchase Publication Effectiveness: Audited Starch/Other Sales/Delivery Revenue Sources: Purchase Advertising Media Use Page-Through Content to View Ads: Inside Front Cover Gatefold Article Content/ROP Individual pages to content, exposed to ads For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 41 Figure 7.7: E-Business Promotional Model Advertising Visit to Website Online Search Customer Database HTML Email Revenue Sources: Advertising Click Throughs Percent Sales Affiliations Site Use Read Articles Community Content Search Archive Link to Products Site Statistics: Hit Counts Page View Click Throughs Reach Individuals can bypass pages to move toward content through searches For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 42 Exercise 7.1: Evaluate Web Sites AIDA PROCESS E-BUSINESS COMMUNICATION STRATEGY Attention Describe how offline media make the audience aware of the Web site. Use a search engine to see which search terms allow the Web site to be found. How far is this business from the top of the list? Determine if other Web sites are used as media advertising this Web site. Interest Decide whether this site uses customization and/or personalization techniques to meet an individual’s needs. Desire Describe how content is designed to appeal to the target audience. How does this site attempt to develop relationships with its audience? Action Decide which types of actions the site attempts to achieve. Determine if the site uses promotions to entice actions. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 43 Exercise 7.2: Determining Advertising Rates • It is relatively easy to find pricing information on advertising rates from media kits at Web sites. • Go to a Web site with an advertising rate card and evaluate how it assigns its charges. • Visit another site and find its advertising rates. • How do these compare? • Compare the target markets of the two Web sites. • Which Web site is the better value? For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 44 Exercise 7.3 Devising an EBusiness Promotional Campaign • Refer to Figures 7.8 and 7.9. How do other traditional media such as television, newspapers, and radio compare to ebusiness-based promotional media? • Explain why you would prefer to use an ebusiness-based promotional model instead of the traditional models. • Indicate the relative strengths and weaknesses of the various models. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 45 Competitive Exercise 7.4 Devising an E-Business Promotional Campaign • Use the Buddy Lee campaign table as a model for developing an e-business-based promotional campaign. • Choose a company and target market. How will you gain attention, develop interest, foster desire, and encourage action? • Also include how you will maintain loyalty. • Devise a number of metrics to measure the success of the campaign. • Justify why your company should adopt your plan. For use with Strategic Electronic Marketing: Managing E-Business 2e Copyright 2003 South-Western College Publishing Chapter 7 Slide: 46