CCT356: ONLINE ADVERTISING AND

MARKETINGDigital Strategy & Market Research

Presented By: Pam Shaw B.Comm., RYT, PTS, PMI,

CAI, FIS

ADMINISTRATION Articles

Assignment One (online ad critique) Due Today! Questions?

Assignment Two (Online Ad Design) Due in three weeks on February 28 – the week after break week – Questions?

Today – pay attention – content applicable for Assignment Three (Final Project)!

AGENDA Marketing vs. eMarketing Market Research

Gathering InformationTypes of ResearchOnline Implications of Research

Marketing StrategyTarget MarketGoals & ObjectivesStrategic Planning & Execution Evaluation

Final Project Questions

MARKETING VS. EMARKETING Marketing:

Total system of business activities The Four P’s & Distribution Focus on target market to achieve objectives

eMarketing: Marketing using the Internet

Therefore, to be Successful: An eMarketing Strategy should:

Not be separate from a Marketing Strategy Focus on target market & budget Be flexible, shift focus as needed

MARKET RESEARCHGATHERING INFORMATION Why Research?

Our customers are doing it so we need to keep up Sites allow product/service comparison &

customer reviews Examples:

Cheapflights.ca tripadvisor.com Home Depot/Canadian Tire Websites, etc.

Gathering Data: Aids business decisions Allows us to learn about our customers,

competition, and the market ORM is very important

MARKET RESEARCH What is Market Research?

A process that aids business decisions Gathering, recording & analyzing data &

information about customers, competitors & the market

Can be based on primary or secondary data & information

Data can be syndicated – What does that mean? Types of Research:

Primary Secondary Qualitative Quantitative

MARKET RESEARCHGATHERING DATA

According to Survey Monkey: The way a survey is administered plays

a role in response rates:Mail: 50% adequate, 60-70% good to very

goodPhone: 80% goodEmail: 40% average, 50-60% good to very

goodOnline: 30% averageClassroom pager: 50+% goodFace to Face: 80-85% good

PRIMARY RESEARCH Example? Conducted Second

Is primary research necessary?How are you going to obtain the data?

Gather information/data on a particular product or hypothesis

Must be collected from consumers or businesses

Examples: Surveys, focus groups, research panels and

research communities

SECONDARY RESEARCH Example? Conducted First

Does the data you require already exist? Uses existing, published data & research Can be internal or external data Can be more cost effective than primary Data may not meet your needs Can be helpful in planning primary research Authenticity is key Examples:

Using Statistics Canada website vs. Wikipedia

QUALITATIVE RESEARCH Used for exploratory purposes:

Identify potential hypothesesDesign quantitative research Interpret market perspective

Examines consumers’ views, opinions & feelings

Can be difficult to quantify, more expensive, & time consuming

Examples: Focus group interviews and one-on-one

depth interviews

QUANTITATIVE RESEARCH Used to obtain statistical information

about a sample of consumers or members of the public

Data:Must be formally gathered Is statistically analysed to determine results Should be collected to test a hypothesis not

determine one Example:

Surveys – step by step guide in the text

Quantitative Mode Qualitative mode

Assumptions • Social facts have an objective reality  • Primacy of method  • Variables can be identified and relationships measured  • Etic (outside's point of view)

Assumptions • Reality is socially constructed  • Primacy of subject matter  • Variables are complex, interwoven, and difficult to measure  • Emic (insider's point of view)

Purpose • Generalizability  • Prediction  • Causal explanations

Purpose • Contextualization  • Interpretation  • Understanding actors' perspectives

Approach  • Begins with hypotheses and theories • Manipulation and control  • Uses formal instruments  • Experimentation  • Deductive  • Component analysis  • Seeks consensus, the norm  • Reduces data to numerical indices  • Abstract language in write-up

Approach  • Ends with hypotheses and grounded theory  • Emergence and portrayal  • Researcher as instrument  • Naturalistic  • Inductive  • Searches for patterns  • Seeks pluralism, complexity  • Makes minor use of numerical indices  • Descriptive write-up

Researcher Role • Detachment and impartiality  • Objective portrayal

Researcher Role • Personal involvement and partiality  • Empathic understanding

QUALITATIVE & QUANTITATIVE RESEARCH

Can be combinedAssign numeric value to qualitative data to

generate a scoreExample: Case in the text at the end of

Chapter 2: BrandsEye’

When using both:1st: (usually) qualitative to determine issues2nd: quantitative to test theories in

qualitative

ONLINE IMPLICATIONS OF RESEARCH

The Internet can be used in gathering: Primary & secondary research Qualitative and quantitative data

Online Communities = large focus group Research information and tools readily

available Sophisticated research tools exist (see

Tools of the Trade in the text) Reach large numbers at relatively low cost Market research should produce

information that leads to actions

ONLINE IMPLICATIONS OF RESEARCH

Research available: Social media such as blogs & social

networking sitesOnline research panels/communitiesOnline research publicationsListening Lab for usability testingGlobal search dataCustomer CommunicationsCookies and other tools for tracking and

measuringExamples?

STEP 1: CONTEXT: KNOW YOURSELF KNOW YOUR MARKET

What is your Company’s Mission Statement?

Background: What are the current problems? Current nature of the organization? Who is the Target Market? What are their needs? How can the organization fulfill the needs

of the Target Market? What is the marketing mix?

4P’s, 5th P

TARGET MARKET Why is having a Target Market

Important?The 80/20 RuleExample of a Target Market?

Demographics: age, gender, class, income

Geographic location Psychographics: Psychological and

sociological influences Who is your Target Market? Example?

MARKETING MIX The 4 P’s

Products & Service Price Placement or Distribution Promotion

The 5th P People:

Personalization Participation Peer-to-peer Sharing & Communities Predictive modelling

Awareness of Uncontrollable Factors Existing or pending legislation relevant to the

business e.g. environmental controls/regulations re: disposal

State of the economy in the market The 4 P’s

CONTEXT CONTINUED: STRATEGIC ANALYSIS

Identify weaknesses and opportunities Use Porter’s Five Forces Analysis (next

slide) Useful in understanding the attractiveness of

the market Was developed before the Internet Barriers to entry and costs of switching are

reduced = More competitors in the market Cost of switching has lowered Customer bargaining power has increased

Organizations compete based on price Strategic differentiation comes from value

PORTER’S FIVE FORCES ANALYSIS

CONTEXT CONTINUED:STRATEGIC ANALYSIS

Competition:Who or What is trying to attract your

consumers?What are your customer’s needs & wants? How may your customers fulfill their needs?You are competing for customers attention

not just their money Environment:

What is the market like?What is likely to change in future?

STEP 2: SET MARKETING OBJECTIVES Marketing Objectives

Must Be SMART – Does anyone know what that means? Specific Measureable Achievable Realistic Time-Based E.g. To achieve a sales revenue of $259,200 per year for the

first three years of the business Outline the desired outcomes of the marketing plan Which SMART objectives will indicate the success of

the marketing strategy? Unique & based on increasing revenue Focused on long-term success – establish

milestones, long-term & short-term goals

STEP 3: VALUE-EXCHANGE

What value does your company bring to the existing market?

What is your main objective and what other goals can you set which will help you achieve your main objective?

How will you know if you are successful at adding value to the market?

Explore all of your options!

STEP 4TACTICS & EVALUATION

Generate Strategies & Tactics for Achieving Objectives How will you achieve your objectives? Which strategies will you employ to be successful? Example:

Objective: To increase customer retention by 2% by 2013 Tactic: Develop an email newsletter strategy to build

relationships with an existing database of interested prospects

Evaluate Strategies Humphrey’s SWOT Analysis Key Indicators Monitoring & Reporting

STRENGTHS & WEAKNESSES, OPPORTUNITIES & THREATS

STEP 5: METRICS Why are they important?

Helps define: What successful value-exchange is worth How this worth is measured

Consider Metrics with Step 3 in mind (value-exchange)

Start with ROI in mind What is ROI?

Set up analysis and measurement tools early Measure returns from inception.

The Metrics that matter are KPIs What’s a KPI?

STEP 6: ONGOING OPTIMIZATION

Track, Analyze, OptimizeeMarketing uses hyperlinks & can be

trackedOnce tracked, data can be analyzedRemain dynamic - put it in the budgetEach tactic can be individually tracked,

intelligent analysis helps you consider how they work together

Keep ORM in mind!

FINAL PROJECT – DUE MARCH 27

Adopt a real client and design a complete marketing/advertising strategy for them

Include an Executive Summary What is an Executive Summary?

Last Step Includes Background and Mission Statement

Background Statement History of Business

Mission Statement Future Direction Market, Environment, Strengths,

Management Preferences

NEXT WEEK

SEO/SEM continued and Viral Marketing

Following week – break week

REFERENCES

Balderson, W. D. (2003). Canadian Entrepreneurship & Small Business. Toronto: McGraw-Hill Ryerson Limited.

Sommers, M. S. Barnes, J.G. Stanton, W. J. (1998). Fundamentals of Marketing. Toronto: McGraw-Hill Ryerson Limited.

Stokes, R. (2008). eMarketing the Essential Guide to Online Marketing 4th Edition. South Africa: Quirk eMarketing (Pty) Ltd.

THANK YOU FOR YOUR TIMEAny Questions?