Copyright 2003 by Marketspace LLC

Mohammed, Fisher, J aworski, Paddison

Internet Marketing, 2
nd
Ed
Chapter 9 Lecture Slides
Communication
Exhibits and Tables
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Communication Todays Objectives
Objectives will be to:
Explore how the Internet affects marketing communications
Examine the marketing levers offline and online
Discuss the six steps of the communication process
Explore integrated implementation of levers across the four
relationship stages
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
How the Internet Affects Marketing Communications
The Marketing Levers Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Case Study
Conclusion
Chapter 9:
Communication
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Costumer-Centric Marketing Communications
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Chapter 9:
Communication
How the Internet Affects Marketing Communications
The Marketing Levers Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Case Study
Conclusion
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Exhibit 91: The Effects of the 2Is on Communication
Allows more targeted
communications
Individualized
marketing
communications are
more relevant to the
consumer
Individual controls
information flow
Facilitates relationship
building through two-
way communication
Allows tracking of
consumer response to
marketing
communications
Allows consumers to
specify preferences
Individualization Interactivity
Communication
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Banner Ad
(to promote
awareness)
Personalized
Website
Individualized
offerings
Permission e-
mails
Website
Awareness Commitment Exploration
2Is 2Is
User clicks on banner
to find out more
User can set up the webpage
according to personal preferences,
register for e-mails, give feedback,
or make a purchase
One Seamless Experience
Exhibit 92: The 2Is Streamline Advancement Through the Stages
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Chapter 9:
Communication
How the Internet Affects Marketing Communications
The Marketing Levers Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Case Study
Conclusion
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Mass Personal
O
n
l
i
n
e
O
f
f
l
i
n
e
Outdoor
advertising
(Billboards)
Yellow
pages
Radio
Televisio
n
Brochure
s
Newspapers
Sponsorship
s
Magazine
s
Newsletter
s
Point-of-
purchase
displays
Customer
service
Direct
mail
Telemarketing
Sales force
/ face-to-
face
Banner ads
Rich
media
Search
engines
Interstitial
s
Classifieds
and
listings
Interactive
television
Websites
E-mail
marketing
Personal
websites
Exhibit 93: Online and Offline Levers
Public
relations
Dynamic
ads
Wireless
devices
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Online Livers
Interstitials:
They are J ava-based ads that appear while the publishers content is
loading.
While these types of ads held great promise when they were introduced, their
number has not increased due to two main factors:
They are difficult to execute properly.
They give the impression of lengthening user-waiting time.
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Types of Interstitials
Superstitials:
Video-like ads timed to appear when a user moves her mouse from one part
of a Web site to another.
They look like mini videos and are entertaining and fast.
Advantages:
Superstitials load behind the scenes and do not appear until fully loaded on
the users computer.
It doesnt slow page download time, nor does the user have the impression
that it does.
Daughter windows
Separate window that overlays the current browser window and contains
content or advertisements. Also called pop-up windows
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Rich Media
A communication method that incorporates animation, sound, or interactivity and
is deploying through web and wireless application such as e-mail, web design,
banners, buttons and interstitials.
It can works alone or with languages and technologies such as DHTML
More expensive to produce and deploy
Opt-in email
Persons on an opt-in mailing list receive email only if they specifically agree to
get it.
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Copyright 2003 by Marketspace LLC
Exhibit 94: Profiles of Online Media Types
Medium Advantages Disadvantages
Websites /
personalized
websites
Communicate rich, detailed information that
users can navigate at will; can track users
and customize site accordingly.
Narrow reach
Banner ads Link directly to buying opportunity; easy to
measure effectiveness; wide reach; potential
for effective targeting
Low attention and click-through rates; short
life; limited pass-along audience; very high
clutter; fleeting exposure
Interstitials Catch users attention; link to buying
opportunity
Can annoy users; limited pass-along
audience
Rich media Attention-getting; link to buying opportunity Can annoy users without broadband access
Dynamic ad
placement
Serves up customized ads to users in real
time
Difficult to execute well; can annoy users,
other advertisers
Search engines Good credibility; high believability;
guarantee of position available; significant
audience at major sites
High competition; information overload;
limited pass-along
Classifieds and
listings
Relatively inexpensive; potential for wide
exposure;qualified audience
Clutter
Opt-in e-mail High demographic selectivity; high credibility;
significant flexibility; proven high click-
through rates; absolutely inexpensive; some
pass-along
Requires substantial user base before
effective; high clutter
Mass e-mail High reach; inexpensive; flexible Low attention and significant resentment
(spam image)
Customer
service
Interested parties asking for help, thus high
targeting value; generates loyal customers
Very expensive to provide comprehensive
telephone, e-mail, and online support

Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Supporting Slide 9A: Banners Come in Various Shapes and Sizes
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Aggregate number of user clicks on a banner ad. Ad Clicks
Number of times a banner ad is downloaded to a users browser and presumably looked
at.
Ad Views
(Impressions)
Percentage of ad views that are clicked upon; also called Ad Click Rate. Click-Through
Formula used to calculate what an advertiser will pay to an Internet publisher based on
number of click-throughs that a banner generates.
CPC
(Cost-per-click)
Cost per thousand impressions of a banner ad. A publisher that charges $10,000 per
banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500).
CPM
Measurement recorded in server log files that represents each file downloaded to a
browser. Since page design can include multiple files, hits are not a good guide for
measuring traffic at a website.
Hit
Number of individuals who visit a website in a specified period of time. Requires the use of
registration or cookies to verify and identify unique users.
Unique Users
A series of requests made by an individual at one site. If no information is requested for a
certain period of time, a time-out occurs and the next request made counts as a new visit.
A 30 minute time-out is now standard.
Visits
Exhibit 95: Internet Ad Terms
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Click-Through
Used by advertisers, to measure response to a banner ad. A click through
happen when a user clicks on the ad and is sent to the advertiser's place.
Cost Per Thousand Impressions
This is a standard cost model for web advertising in which the charge is for each
thousand impressions of an ad
Visits
A series of page impressions from a website user. Once a visitor stops making
requests for pages from a site for a period of time (30 minutes), the next
exposure is considered a new visit.
Exhibit 95: Internet Ad Terms
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Exhibit 95: Internet Ad Terms
Crawler
A crawler, also known as a spider or a bot, is the software Google uses to
process and index the content of webpages. The AdSense crawler visits your
site to determine its content in order to provide relevant ads.
Cost-per-click (CPC)
The CPC is the amount an advertiser pays each time a user clicks on his/her ad.
Google AdWords has a CPC pricing system.
Balance at end of month
Your Payment History page will show the balance in your AdSense account at
the end of every month. This amount reflects verified earnings at the close of that
month. If your account balance at the end of the month is greater than US$100
and there are no payment holds on your account, you should be scheduled for a
payment the following month.
Last Updated: 07/09/03
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Exhibit 96: Interstitial Example
Pop-up
interstitial
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Exhibit 97: Search Engine with Targeted Ad
Banner
ad
Keyword
search
Banner ad
linked to
keyword
search
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Exhibit 98: Sponsorship Example
Sponsorship
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Supporting Slide 9B: Targeted E-Mail
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Copyright 2003 by Marketspace LLC
Chapter 9:
Communication
How the Internet Affects Marketing Communications
The Marketing Levers Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Case Study
Conclusion
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Step 1
Step 3
Step 2
Step 4
Step 5
Supporting Slide 9C: Six Steps of the Communication Process
Step 6
Identify Target Audience
Determine
Communication Objective
Develop Media Plan
Create the Message
Execute the Campaign
Evaluate the Effectiveness
of the Campaign
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Communication
Criteria
Media
Criteria
Choose
Media Mix
Tie Back To
Overall
Plan
Allocate
Spending
Behavioral
objectives
Available
spending
Customer
segments
Ability to further
behavioral
objectives
CPM
Ability to reach
target segments
Direct mail,
Internet,
broadcast,
print, point-
of-sale, etc.
Come back 360
and tie media
plan back to
communications
plan (e.g., will this
media plan drive
the trial or
awareness
required to
deliver your
bottom line)
Allocation of
spending
across media
mix elements
and time
periods
based on
relative
priority
Exhibit 99: A Process for Defining Media Choice and Mix
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Exhibit 910: Media Scheduling Patterns
Year
Constant
Periodic
Advertising
period
Continuous, same
intensity
Continuous, varying
intensity
Intermittent, same
intensity
Intermittent, varying
intensity
Ads may run through-
out the year or at
selected times:
Within an ad period,
different media
schedules may be
used:
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Exhibit 911: Genuity Ads
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Exhibit 912: Genuity Website
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Copyright 2003 by Marketspace LLC
Supporting Slide 9D: Point-Counterpoint:
Which Online Performance Measure Is Best?
The Traditional CPM Model Is
Best
Performance-Based Pri cing Is
Better than the CPM Model
Consistent with the way traditional
media advertising is structured
Rightly makes firms pay for putting
messages in front of consumers
Even without click-throughs,
exposure to ads has positive
effects such as brand awareness
CPM model does not fit in the
online environment where
consumers have so much control
over information flow
An action model based on click-
throughs or transactions is better
it makes advertisers
accountable
The capability to track and
measure user behavior online is
one of the Internets greatest
strengths for marketing; the way
advertising is measured should
reflect that


Point-Counterpoint
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Chapter 9:
Communication
How the Internet Affects Marketing Communications
The Marketing Levers Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship
Stages
EBay Case Study
Conclusion
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Exhibit 913: Exploring the Levers Across the Relationship Stages
Television, iTV
Magazines and
newspapers
Radio
Yellow pages
Billboards / outdoor
Awareness
Television, iTV
Magazines and
newspapers
Radio
Exploratory /
Expansion
Commitment
Terminate marketing
Dissolution
Banner ads
Search engines
Listings
Classifieds
E-mail
Direct mail
Telemarketing
Permission e-mail
Website
Personalized pages
Customer service Customer service
Sales force Sales force Sales force
Rich media ads and dynamic
ad placement
Website
E-mail
Permission direct mail Direct mail
Telemarketing
Public relations
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Chapter 9:
Communication
How the Internet Affects Marketing Communications
The Marketing Levers Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Case Study
Conclusion
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Exhibit 914: EBay Sponsored Link
A Google search for
digital camera and
Olympus brings up
this eBay-sponsored
link
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Copyright 2003 by Marketspace LLC
Exhibit 915: EBays Message Board as Expansion Lever
EBay uses its message
boards to effectively
expand the use of its
platform
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Exhibit 916: EBay/Disney Cobranded Site
Clicking on Disney
Auctions from Disney.com
takes visitors to this
cobranded site, which
combines eBays look-
and-feel with Disneys
well-known brand.
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Chapter 9:
Communication
How the Internet Affects Marketing Communications
The Marketing Levers Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Case Study
Conclusion
Last Updated: 07/09/03
Copyright 2003 by Marketspace LLC
Communication Conclusion
Effective marketing communications must be integrated and work together
with synergy, and they must be consumer-centric
The communication marketing levers include various communication types
that can be organized into the following categories: mass offline, personal
offline, mass online, personal online
The communication process involves six steps: 1) Identify the target
audience, 2) determine the communication objective, 3) develop the media
plan, 4) create the message, 5) execute the campaign and 6) evaluate the
effectiveness of the campaign
Specific levers can be applied that are appropriate for each relationship
stage