Download Q. Online Marketing

Online Marketing Communications
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Marketing:
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Every thing you do to promote your company's products and services to
potential customers is known as marketing.
Online marketing communications:
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Methods used by online firms to communicate with consumer and create
strong brand expectations.
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Brand : A set of expectations that consumers have when consuming, or thinking
about consuming, a product or service from a specific company.
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Marketing communication have a dual purpose:
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One purpose of marketing communications is to develop and strengthen a firm’s
brands by informing consumers about the differentiating features of the firm’s
products and services.
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Second, marketing communications are used to promote sales directly by
encouraging the consumer to buy products (the sooner, the better).
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Slide 7-1
Diff b/w Promotional Sales/ Branding
Communication
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Promotional sales communications:
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Suggest consumer “buy now” and make offers to encourage immediate
purchase.
Branding communications:
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Rarely encourage consumers to buy now, but instead emphasize the
differentiable benefits fo consuming the product or service.
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Forms of online communication
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There are many different forms of online
marketing communications, including
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Online advertising
Even the web site itself can be viewed as a online marketing
tool.
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Online Advertising
A paid message on a web site, online
service, or other interactive medium is a
called online advertising.
 Advantages:
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 Internet is where audience is moving
 Ad targeting
 Greater opportunities for interactivity

Disadvantages:
 Cost versus benefit
 How to adequately measure results
 Supply of good venues to display ads
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Slide 7-4
Forms of Online Advertisements
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Display ads
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Rich media and Video ads
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Search engine advertising
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Sponsorships
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Referrals (affiliate relationship marketing)
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Online catalogs
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Social network, blog, and game advertising (In-game ads)
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E-mail marketing
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Slide 7-5
Display Ads (Banner Ads , Pop-up)
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Banner ads
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A banner ad displays a promotional message in a rectangular box at
the top or bottom (some time anywhere) of a computer screen.
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A banner ad is similar to a traditional ad in a printed publication but
has some added advantages.
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If clicked on, it can b ring a potential customer directly to the
advertiser’s web site.
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It also much more dynamic than a printed ad: it can present multiple
images or otherwise change its appearance.
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Slide 7-6
Display Ads (Banner Ads , Pop-up)
Banner Ads Continue……………………….
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Banner ads sometimes feature Flash video and animations or
animated GIFs, which display different images in relatively quick
succession, creating an animated effect.
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IAB (Interactive Advertising Bureau ), an industry organization, has
established voluntary industry guidelines for banner ads.
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A full banner, the most common, is 468 pixels wide by 60 pixels high
with a resolution of 72 dpi (dots per inch) and a maximum file size of
13kb.
Copyright © 2010 Pearson Education, Inc.
Copyright © 2010 Pearson Education, Inc.
Copyright © 2010 Pearson Education, Inc.
Display Ads (Banner Ads , Pop-up)
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Pop-up ads
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Banners and buttons that appear on the screen without the user calling for them.
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Provoke negative consumer sentiment
Pop-under ads: One type of pop – up ad is the pop – under ad that opens underneath a user’s
active browser window and does not appear until the user closes the active window.
The ad remains visible until the user takes action to close it.
Pop –ups can appear prior to display of the consumer’s target page, during, or after the display
(page) on leaving.
Unfortunately, studies have found that pop – up ads are twice as effective in terms of click – through
rates than normal banner ads ( although this may occur because people get confused about how to
close the ads and end up unintentionally clicking to the advertised site).
A number of ISPs and search engine/ portal sites, such as Yahoo, Google, AOL, and Earthlink now
offer consumers pop – up blocking toolbars, as do web browsers such as Mozilla FireFox and Internet
Explorer 7.
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Copyright © 2010 Pearson Education, Inc.
Rich Media and Video Ads
Rich Media Ads
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Ads employing Flash, Dhtml, and java, and
streaming audio and / or video.
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About 7% of all online advertising expenditures
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Tend to be more about branding
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IAB standards limit length
Types
 Interstitials ((interstitial means "in between") )
 Superstitials
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Slide 7-12
Dhtml generated
ads
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Rich Media and Video Ads
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Interstitial ads are placed between the current Web
page a user is viewing and the destination page for
the link they have clicked.
The interstitial ad typically gives way automatically
to the page the user has requested after allowing
enough time for the ad to be read. Interstitials use
“dead time” in between the loading of requested
pages.
However, users may become annoyed because they
believe that while they are waiting for the ad to load,
the page they want to view is delayed.
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Or wait 10
second
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Rich Media and Video Ads
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Superstitials, on the other hand, are preloaded into the cache
of the browser and do not play until they are fully loaded.
When the file is completely downloaded, just like an
interstitial, it will wait until the user clicks a link to move to a
new page before it opens in a separate window.
The Superstitials is an ad format that appears between two
content pages, just like a commercial break on television.
The pre-loading ensures that the ads don’t slow the browsing
experience.
Copyright © 2010 Pearson Education, Inc.
Copyright © 2010 Pearson Education, Inc.
Copyright © 2010 Pearson Education, Inc.
Search Engine Advertising
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Just as search engine sites enable users to search the entire
web for particular documents. Search engines Almost 50% of
online ad spending in 2009. search engine sites have charged
firms for inclusion in the search engine index. This amounts to a
guarantee that their firm will appear prominently in the results of relevant
searches.
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When users enter a search term at Google, MSN Search, Yahoo, or any of
the other web sites serviced by these search engines, they receive two
types of listing:
sponsored links, for which advertises have paid to be listed (usually at
the top of the search results page)
and unsponsored “organic” search results.
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Slide 7-19
Paid inclusion
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How Search Engine Marketing?
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By Search engine optimization:
First communication e-commerce site has domain name ( must be Short , Memorable,
Not easily confused with other domain names, Difficult to misspell).
 Register your site map (along with domain name) with as many search
engines as possible
 Ensure keywords used in site description (in title tag, metadata tag, alt tag,
headings such h1, h2, h3 etc ) match keywords likely to be used as search
terms by user
 Link site to as many other sites as possible
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By Keyword advertising
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Ad Words program which allowed advertisers to bid for placement of short text
ads on Google search results.
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E.g., Google AdWords
By Network keyword advertising (context
advertising)
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E.g., Google AdSense
Copyright © 2010 Pearson Education, Inc.
Copyright © 2010 Pearson Education, Inc.
Copyright © 2010 Pearson Education, Inc.
Sponsorships
 Sponsorship is the fastest growing form of marketing .
Sponsorship typically are more about branding than
immediate sales.
 It’s just a case of mirroring existing ‘real world’
sponsorship arrangements in the ‘virtual world’.
 Online sponsorship is a branding tool, its purpose is to
increase brand awareness and favourability and to
create a ‘warm feeling’ around a brand.
 For example, Jazz sponsor the Cricket match in the
Pakistan and there name (jazz) will be prominent when
fans are searching online for information about their
teams.
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Slide 7-24
Copyright © 2010 Pearson Education, Inc.
Copyright © 2010 Pearson Education, Inc.
Referrals (Affiliate Relationship Marketing)
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Affiliate relationship marketing, permits firm (merchant) to put logo or
banner ad on another firm’s (merchant) Web site from which users of
that site can click through to affiliate’s site (originating site).
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Millions of personal web sites have Amazon and other logos which when
clicked will take the visitor to amazon, and generate revenue for the web
site.
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Among large firms, affiliate relationships are sometimes called “tenancy
deals “ because they allow a firm to become a long – term “tenant” on
another site. Amazon has tenancy relationships with a number of
retailers. When a sale is made through the affiliate's site, the referring affiliate
(where logo is placed) receives a commission.
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Pure Affiliation Relationship Marketing : When Two web sites may sell
complementary products and the firms may strike an affiliate
relationship to make it easier for their customers to find the products
they are looking for.
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Slide 7-27
Commission
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Copyright © 2010 Pearson Education, Inc.
Online Catalogs
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Online catalog is a popular way to market a company's offerings. Online
Catalog are the equivalent of a paper – based catalog.
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An attractive, well-designed catalog can sell products or services for
just about any business. Businesses of all sizes often use catalogs in
their marketing plans.
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The basic function of a catalog is to display the merchant’s wares.
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Online catalog typically contains a color image of each available product and a
description of the item.
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As well as size, color, material composition, and pricing information etc.
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Also with read more or detail button or some time it is done by clicking on the image
There are two different types of online catalog:
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Grid displays
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Full – page spreads
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Slide 7-30
 Grid Display
Most online retailers use a grid display in which multiple
products are shown in very small postage –stamp photos.
For example catalog on :
Amazon.com
LLbean.com
Gap.com
Shophive.com
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Copyright © 2010 Pearson Education, Inc.
Full – Page Spread
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The other alternative is to use larger page spreads using large
photos to display one or two products.
For example catalog on
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Restorationhardware.com
 The cost of building an online catalog ranges from $30,000
to $50,000 for smaller web sites.
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Copyright © 2010 Pearson Education, Inc.
How do companies integrate online catalogs with
physical catalogs?
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Most direct mail catalog companies continue to use
physical direct mail catalogs, and pure online companies
have begun to supplement their online advertising with
physical catalogs.
Direct mail companies can increase their operational
efficiency by sending electronic catalogs to customers
before sending out the physical catalogs.
The flow of orders increases as the overall awareness of
the company brand increases when both (online and offline
catalog) channels are used simultaneously.
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Social Marketing
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“Many-to-many” model
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Uses digitally enabled networks to spread ads for examples Blog, social network, games
advertisement.
 Blog advertising
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Blog marketing is the term used to describe internet marketing via
web blogs. These blogs differ from corporate websites because
they feature daily or weekly posts, often around a single topic.
Typically, corporations use blogs to create a dialog with customers
and explain features of their products and services.
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Blog Advertising enables you to promote your products and
services on blogs that are targeted to your niche. Blogger will
include links and targeted ads and text within a post / some other
area of the site for an advertiser.
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Slide 7-36
Social network advertising
 Marketing and advertising that reaches potential
consumers via social networking website, such as
MySpace, Facebook and Bebo, You tube etc.
 They appear at the edges of users' profiles and
can be targeted based on keywords in their
profiles to match their stated interests or
recent activities.
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Game advertising
 Today most games are played in social environments with
multiple players over the internet.
 Marchants can place advertisement in
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Downloadable “advergames”
Placing brand-name products within games
 In-game advertising (IGA) refers to the use of computer
and video games as a medium in which to deliver
advertising.
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Copyright © 2010 Pearson Education, Inc.
E-mail Marketing and the
Spam Explosion
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E-mail marketing is a form of direct marketing which uses electronic mail as a
means of communicating commercial messages to an audience. E – mail
marketing and advertising is inexpensive.
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The major advantage of direct e-mail marketing is that because e-mails
are sent to interested users who have elected to “opt-in or permission ”.
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A common example of permission marketing is a newsletter
sent to an advertising firm's customers.
Such newsletters inform customers of upcoming events or
promotions, or new products. In this type of advertising, a
company that wants to send a newsletter to their customers
may ask them at the point of purchase if they would like to
receive the newsletter.
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Slide 7-40
•In its broadest sense, every e-mail sent to a potential or
current customer could be considered e-mail marketing.
•Sending e-mails with the purpose of enhancing the relationship
of a merchant with its current or previous customers and to
encourage customer loyalty and repeat business,
•Sending e-mails with the purpose of acquiring new customers
or convincing current customers to purchase something
immediately,
•The response rates are much greater than other forms of
online marketing communications.
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Spam: unsolicited (unwanted) commercial e-mailS
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Most of us get spam every day. Some of us get a little, and some of us get a lot,
but if you have an e-mail account it is always there
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80%–90% of all e-mail are spam
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Efforts to control spam:
• Technology (filtering software)
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Filtering software on client computer browsers has helped companies and individual users cope with
spam, but spammers purchase the same software to understand how to defeat hem.
• Government regulation in USA
•
Congress passed the first national anti – spam law (“controlling the Assault of Non – Solicited
pornography and Marketing Act” or CAN - SPAM).
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This act does not prohibit unsolicited e – mail (spam) but instead requires unsolicited commercial email messages to be labeled ( though not by a standard method) and to include opt – out instructions
and the sender’s physical address.
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CAN – SPAM ironically legalizes spam as long as spammers follows rules. ?
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For the reason, Major business interest groups also lobbied against the CAN – SPAM bill. Citicorp,
Procter & Gamble etc argued that the act would harm legitimate e – mail marketing and put e –
commerce at a disadvantage.
• Voluntary self-regulation by industries
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Volunteer efforts by industry are another potential control point.
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Direct Marketing Association (DMA) has formed a 15 – person anti – spam group and spends $500, 000
a year trying to identify spammers, work with FBI.
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Percentage of E-mail That Is Spam
Figure 7.6, Page 444
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SOURCE: MessageLabs.com, 2009.
Slide 7-43