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The Internet: Trends, Resources, Techniques Internet and Strategic Comm. • Promise and Peril of the Internet • Reminiscent of an old joke among marketers… “I am wasting half of my ad budget, I just don’t know what half.” Misuses of the Net • Going heavily on-line in ways that don’t provide strategic impressions against target • Not tracking usage patterns of users • Failing to develop a site that is featured in large scale advertising and PR efforts • Not driven to the site - hybrid marketing • Not renewing content on the site - keep it fresh for customers and journalists • Underutilizing the Web as a Media Relations and Promotions tool Reasons to Use the Internet • Four broad domains: 1. Direct customer contact 2. Information acquisition 3. Concept-testing 4. Buzz Marketing Direct Consumer Contact • Typically consumer-initiated – Permits extended brand contact – Interactive experience – Use to build database – Must drive customers to the site with traditional media strategies and tactics Information Acquisition • Backgrounding – Permits quick information search – Be skeptical of data quality – Use respected sources – Recognize the value of multiple search engines Concept Testing • Virtual Focus Groups – Create an online panel of randomly sampled consumers as a touchstone • Allows for immediate feedback • Brand appropriate segment – Can bundle sight and sound in experiments and surveys • From convenience of home Buzz Marketing • Leading Edge of Campaigns • Foster interest in a product through opinion leaders - word of mouth • More tell, less sell - Good for Gen X and Y • Brand appropriate segmentation of efforts – Examples: • • • • Marketing Marketing Marketing Marketing of of of of Lee Jeans Magnolia AI Wilco Yahoo! • Stock valuation - $30 Billion – Worth more than all U.S. Magazines put together • Mass reach with customized intimacy – 60% of all net users worldwide – 70% of employees in Fortune 500 • Instant feedback on every message – Client knows how many people saw the ad – Who they are – How many reacted with a click or purchase Segmenting the User • Tracks the visits of over 170 million users, 55 million of whom have revealed their identities, addresses, and preferences • Slices its audience into narrow segments, highly targeted groups as small as 17,000 for study Tracking and Projecting • Each month, drill into 16 trillion bytes of data on the browsing, buying, and social interests/behaviors of millions of people • From this, Yahoo can divine from a few clicks that an anonymous user is a 35 yearold in Germany with a Visa Card in need of flowers and a card for his wife – They post a interstitial or banner in response Premium for Contact • Costs of ordinary banner ad have fallen 75% in year to under $5 CPM • At Yahoo, ads can draw $150 CPM – Nine times CPM of top sporting events • Targeted emails tailored to specialty groups are even pricier - CPM = $300 Ethical Concerns • Gathering information from consumers using covert and often intrusive tracking techniques • TiVo’s disk-based VCR let’s advertisers know which family members watched what shows • Magazines give readers scanners for bar codes on ads, deriving data on who reads what Combining Elements • Cross Campaign Creativity – – – – – Teasers to Build Interest Buzz to Persuade without Mass Media Advertising to Launch Relationships Internet as a Return Destination In Store Contact as Ultimate Goal • Buddy Lee Campaign The Street Posters The Teaser Spots Curry Super Greg Big Roy The Viral Clips QuickTime™ and a Sorenson Video decompressor are needed to see this picture. QuickTime™ and a Sorenson Video decompressor are needed to see this picture. QuickTime™ and a Sorenson Video decompressor are needed to see this picture. Villain Home Pages Television Spots QuickTime™ and a YUV420 codec decompressor are needed to see this picture. QuickTime™ and a YUV420 codec decompressor are needed to see this picture. The Destination QuickTime™ and a YUV420 codec decompressor are needed to see this picture. QuickTime™ and a YUV420 codec decompressor are needed to see this picture.