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E-M ARKETING /6E
C HAPTER 12
C HAPTER 12 O BJECTIVES
12-2

After reading Chapter 12, you will be able to:
 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.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
W ILL
12-3
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IT
B LEND ?
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.
 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.
Do you think that such campaigns can build
awareness? Can you think of other examples?
Ipad – Will it Blend?; Iphone – Will it Blend?
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
I NTEGRATED M ARKETING
C OMMUNICATION (IMC)
12-4

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 internal
and external factors.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
MARKETING COMMUNICATION
TOOLS
12-5
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.

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
IMC GOALS AND STRATEGIES
12-6


The AIDA and “think, feel, do” (hierarchy of
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.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-7
E-M ARKETING TACTICS
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
I NTERNET A DVERTISING
12-8

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.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
T RENDS IN I NTERNET
A DVERTISING
12-9
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

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-10
U.S. INTERNET ADVERTISING
EXPENDITURES
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
I NTERNET A DVERTISING
F ORMATS
12-11
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Keyword search is the fastest growing and
most important technique.
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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.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-12
A DVERTISING D OLLARS
BY F ORMAT
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R ICH M EDIA A DS
12-13
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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C ONTEXTUAL A DS
12-14
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
12-15
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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.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
S PONSORSHIPS
12-16
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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.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
M OBILE A DVERTISING
12-17
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
12-18
M OBILE A DVERTISING
V ENUES BY G OAL
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
M ARKETING P UBLIC R ELATIONS
(MPR)
12-19
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.

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
S ALES P ROMOTION O FFERS
12-20
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.

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
D IRECT M ARKETING
12-21
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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©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
E-M AIL
12-22
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.
 Unsolicited e-mail (spam).
 Effective lists are hard to obtain and maintain.

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-23
M ETRICS FOR E LECTRONIC AND
P OSTAL M AIL
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P ERMISSION M ARKETING :
O PT - IN , O PT - OUT
12-24
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When consumers opt-in, they are giving
permission to receive commercial e-mail.
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Marketers should obtain lists that are
guaranteed to be 100% opt-in.
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Opt-in techniques are part of a bigger
marketing strategy called permission
marketing or “turning strangers into
customers.”
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
V IRAL M ARKETING
12-25
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Viral marketing is the online equivalent of
“word of mouth” marketing.
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Hotmail is a viral marketing success story.
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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.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
T EXT M ESSAGING
12-26
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Short Message Services (SMS) are up to
160 characters of text sent over the
Internet with a cell phone or smartphone.
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Marketers can build relationships by
sending permission-based information
where consumers want to receive it.
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SMS use continues to grow in all
industrialized nations.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
L OCATION - BASED M ARKETING
12-27
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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
DIRECT MARKETING
METRICS
12-28
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Response rate and ROI are the most
appropriate metrics for direct marketing
campaigns.
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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.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
S PAM
12-29
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Spam is unsolicited e-mail.
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The CAN-SPAM Act appears to have little
ability to stop spam.
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Spammers routinely harvest e-mail
addresses from newsgroup postings and
then spam the members.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
P ERSONAL S ELLING
12-30
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Personal selling involves real time conversation
between a salesperson and customer, face-toface, by telephone, or by computer.
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Some companies provide real time sales
assistance online.
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Land’s End has a live chat feature.
The Internet can also generate leads for
salespeople.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
IMC M ETRICS
12-31
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Display ads are generally ineffective. Only
0.2% of all users click on them.
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Online ads that were bigger or contained
rich media delivered greater impact.
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There is increasing evidence that online
and offline advertising work well together.
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-32
B EST AND W ORST
P ERFORMING IMC TACTICS
©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
12-33
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photocopying, recording, or otherwise, without the prior written permission of the
publisher. Printed in the United States of America.
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall