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Chapter 1 Chapter 1 EC & the EC & the

Travel Travel IndustryIndustry

Dr. Hassan Sherif

2Travel and Tourism Travel and Tourism ServicesServices

By the year 2009, more than 35 By the year 2009, more than 35 percent of all business-to customer percent of all business-to customer Internet commerce will be related to Internet commerce will be related to tourismtourism

The Internet is an ideal place to plan, The Internet is an ideal place to plan, explore, and arrange almost any tripexplore, and arrange almost any trip

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Services ProvidedServices Provided

Information and booking of airlines, hotels, cars, and even golf courses

Fare comparisons

360 degree video tours of top destinations

Electronic Travel magazine

Tips provided by people that experienced certain situations (like a visa problem)

Pictures of major attractions

Providing maps

Information about entertainment and ticket purchasing (such as www.ticketmaster.com)

Converting 200 currencies

Travel and Tourism Travel and Tourism ServicesServices

Worldwide business and places locator

E-mail to intermediary

Chat rooms and bulletin boards

Major international news

Weather watchExperts’ opinion

Shopping for travel accessories and books

Special interest vacations

Current status of flights

(real time)

Fare tracker (free e-mail alerts on low fares)

Bed and breakfast recommendations

Restaurant reviewsSpecial discount information

Frequent flier deals

Travel news

Driving directions in the US

Travel and Tourism Travel and Tourism ServicesServices 4

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Benefits and LimitationsBenefits and Limitations

LimitationsLimitations Not all people Not all people

use the use the InternetInternet

It may take a It may take a long time to long time to find what you find what you wantwant

People are still People are still reluctant to reluctant to provide credit provide credit card numberscard numbers

BenefitsBenefits Free Free

information is information is tremendoustremendous

Free Free information is information is accessible accessible anytimeanytime

Substantial Substantial discountsdiscounts

Travel and Tourism Travel and Tourism ServicesServices

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Impacts on the industryImpacts on the industry

Travel and Tourism Travel and Tourism ServicesServices

Multimedia helps customers Multimedia helps customers understand the productsunderstand the products

Offering of lower-cost tripsOffering of lower-cost trips Providing a more personalized serviceProviding a more personalized service Saving money in a paperless Saving money in a paperless

environmentenvironment Increasing the convenience of getting Increasing the convenience of getting

information at homeinformation at home Supporting a customer-focused Supporting a customer-focused

strategy (such as targeted strategy (such as targeted advertisement and integration of advertisement and integration of products); push information to products); push information to customerscustomers

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Travel agencies, as we know them Travel agencies, as we know them today, will disappeartoday, will disappear

Only their complex value-added Only their complex value-added activities will not be automatedactivities will not be automated

These complex activities will be These complex activities will be performed by a new breed of performed by a new breed of intermediatesintermediates

Travel and Tourism Travel and Tourism ServicesServices

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9

Chapter 2Foundations of Electronic

Commerce

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Definitions and Content of Field

Electronic Commerce (EC) is where business transactions take place via telecommunications networks, especially the Internet. Electronic commerce describes the buying and selling of

products, services, and information via computer networks including the Internet.

The infrastructure for EC is a networked computing environment in business, home, and government.

E-Business describes the broadest definition of EC. It includes customer service and intrabusiness tasks. It is frequently used interchangeably with EC.

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How Companies Organize Net Activities

•Visible to the public•Managed by marketing

•Internal to a company•Available only to employees•Often managed by HR

•Visible to suppliers and B-to-B customers•Supply chain management•Managed by marketing and logistics

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The Benefits of Electronic Commerce

Expands the marketplace to national and international markets

Decreases the cost of creating, processing, distributing, storing and retrieving paper-based information

Allows for customization of products and services which provides competitive advantage to its implementers

Lowers telecommunications cost

Benefits to Organizations

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Benefits to Customers

Enables customers to shop or do other transactions 24 hours a day, all year round from almost any location

Provides customers with more choices Provides customers with less expensive

products and services by allowing them to shop in many places and conduct quick comparisons

Allows quick delivery of products and services in some cases, especially with digitized products

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Benefits to Customers (cont.)

Customers can receive relevant and detailed information in seconds, rather than in days or weeks

Makes it possible to participate in virtual auctions

Allows customers to interact with other customers in electronic communities and exchange ideas as well as compare experiences

Electronic commerce facilitates competition, which results in substantial discounts.

15Benefits to Society

Enables more individuals to work at home, and to do less traveling for shopping, resulting in less traffic on the roads, and lower air pollution

Allows some merchandise to be sold at lower prices benefiting the poor ones

Facilitates delivery of public services at a reduced cost, increases effectiveness, and/or improves quality

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The Limitations of Electronic Commerce

Lack of sufficient system’s security, reliability, standards, and communication protocols

Insufficient telecommunication bandwidth Difficulties in integrating the Internet and

electronic commerce software with some existing applications and databases

Technical Limitations of Electronic Commerce

17Non-Technical Limitations

Cost and justification (35% of the respondents)The cost of developing an EC in house can be very high, and mistakes due to lack of experience, may result in delays. There are many opportunities for outsourcing, but where and how to do it is not a simple issue.

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Security and Privacy These issues are especially important in the B2C

area, and security concerns are not truly so serious from a technical standpoint. Privacy measures are constantly improving too. Yet, the customers perceive these issues as very important and therefore the EC industry has a very long and difficult task of convincing customers that online transactions and privacy are, in fact, fairly secure.

Lack of trust and user resistance Customers do not trust an unknown faceless seller,

paperless transactions, and electronic money. So switching from a physical to a virtual store may be difficult.

Non-Technical Limitations (cont.)

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Other limiting factors are:Lack of touch and feel onlineMany unresolved legal issuesBreakdown of human relationships

Expensive and/or inconvenient accessibility to the Internet

Non-Technical Limitations (cont.)

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Chapter 3Chapter 3

E Commerce & The E Commerce & The InternetInternet

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Functions of the Functions of the InternetInternet

Functions of the Functions of the InternetInternet

Advertising (Individual & Advertising (Individual & Organizational)Organizational)

Sales support (B2B)Sales support (B2B)Customer service & Customer service &

supportsupportPublic relationsPublic relationsE-commerce (Retail store)E-commerce (Retail store)

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TravelocitTravelocityy

Http://www.travelocity.com

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24E-Commerce E-Commerce ComponentsComponents

CatalogCatalog Shopping cartShopping cart Payment procedurePayment procedure

Http://www.bluefly.com

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E-Commerce IncentivesE-Commerce Incentives Must overcome security issues.Must overcome security issues. Must change purchase behavior Must change purchase behavior

habits.habits.Financial incentive (toll-free, sales Financial incentive (toll-free, sales

force)force)CyberbaitCyberbait

Convenience-based incentive (distance, Convenience-based incentive (distance, time, effort, information gathering)time, effort, information gathering)

Value-added incentive (personalization)Value-added incentive (personalization)

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Security requirementsSecurity requirements

Payments, Protocols and Payments, Protocols and Related IssuesRelated Issues

AuthenticationAuthentication: : A way to verify the buyer’s A way to verify the buyer’s identity before payments are madeidentity before payments are made

IntegrityIntegrity: : Ensuring that information will not Ensuring that information will not be accidentally or maliciously altered or be accidentally or maliciously altered or destroyed, usually during transmissiondestroyed, usually during transmission

EncryptionEncryption: : A process of making messages A process of making messages indecipherable except by those who have an indecipherable except by those who have an authorized decryption keyauthorized decryption key

Non-repudiationNon-repudiation: : Merchants need Merchants need protection against the customer’s unjustifiable protection against the customer’s unjustifiable denial of placed orders, and customers need denial of placed orders, and customers need protection against the merchants’ unjustifiable protection against the merchants’ unjustifiable denial of past paymentdenial of past payment

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Tools of Customer ServiceTools of Customer Service Personalized Web PagesPersonalized Web Pages

Access seller’s database for service informationAccess seller’s database for service information used to record purchases and preferenceused to record purchases and preference

Chat RoomChat Room discuss issues with company experts; with discuss issues with company experts; with

other customersother customers E-mailE-mail

used to disseminate information, send used to disseminate information, send product information and conduct product information and conduct correspondence regarding any topic, but correspondence regarding any topic, but mostly inquiries from customersmostly inquiries from customers FAQsFAQs

not customized, no personalized feeling and not customized, no personalized feeling and contribution to relationship marketingcontribution to relationship marketing

Dr. Hassan Sherif

28Model of Internet Consumer Model of Internet Consumer SatisfactionSatisfaction

Customer Satisfaction

Service delivery

Customer Service

Pricing Attractiveness

Web-site Store Front

3rd PartySeal of Approval

Trust inWeb-shopping

CompanyReputation

Repeat Web Purchase (Brand Loyalty)

Security

Authentication

Privacy Transaction Safety

Non-repudiationIntegrity

SystemReliability

Speed of Operation

Ease of Use

Content,Quality

Format

Reliability

Completeness

Timeliness

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Chapter 4Chapter 4

Design Design

PrinciplesPrinciples

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Clueless Banners:Clueless Banners: Tricking people to Tricking people to come to a site through clever banners come to a site through clever banners can frustrate consumers and often has a can frustrate consumers and often has a negative impact on the brand's image.negative impact on the brand's image.

Slow Loading Front Pages:Slow Loading Front Pages: Most Most consumers are not patient enough to consumers are not patient enough to wait a long time for a front page to load.wait a long time for a front page to load.

Numerous Screens:Numerous Screens: Being forced to go Being forced to go through numerous screens is through numerous screens is frustrating. Instead, indexes should be frustrating. Instead, indexes should be developed that help consumers to developed that help consumers to quickly locate parts of the Web site.quickly locate parts of the Web site.

Poor Design

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Sites That Are Hard to Navigate:Sites That Are Hard to Navigate: Any Web Any Web site that is hard to navigate creates a site that is hard to navigate creates a negative image of the firm and its products.negative image of the firm and its products.

Too Much Verbal Information:Too Much Verbal Information: Too much Too much verbal information on a page is cumbersome verbal information on a page is cumbersome for viewers. for viewers.

Too Many Technical Terms:Too Many Technical Terms: Technical terms Technical terms are more useful when the site is designed for are more useful when the site is designed for internal purposes, but not for customers or internal purposes, but not for customers or the general public.the general public.

Poor Design

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1.1. the Web site should follow a strategic the Web site should follow a strategic purpose such as to acquire new purpose such as to acquire new customers, serve existing customer, customers, serve existing customer, cross-sell, or build brand loyaltycross-sell, or build brand loyalty

2.2. make the Web site easy to access and make the Web site easy to access and quick to loadquick to load

3.3. written content should be precise written content should be precise with short words, sentences, and with short words, sentences, and paragraphsparagraphs

Tips on creating a good website

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4.4. the content is the key, more than the content is the key, more than fancy graphics and designfancy graphics and design

5.5. graphics should support content, graphics should support content, not detract from itnot detract from it

6.6. the site should make some type of the site should make some type of marketing offer to encourage a marketing offer to encourage a responseresponse

7.7. the company should ask for a site the company should ask for a site evaluation by customersevaluation by customers

Tips on creating a good website

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8.8. the site should provide easy-to-use the site should provide easy-to-use navigation links on every pagenavigation links on every page

9.9. only use gimmicks such as moving only use gimmicks such as moving icons or flashing banners to gain icons or flashing banners to gain attention at the beginning but not attention at the beginning but not deeper into the Web sitedeeper into the Web site

10.10. change the Web site on a regular change the Web site on a regular basis to keep individuals coming backbasis to keep individuals coming back

11.11. measure results continually, measure results continually, especially designs and offers especially designs and offers

Tips on creating a good website

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35Building Your IMC Building Your IMC CampaignCampaign

Examine the role of the Internet in Examine the role of the Internet in your IMC plan.your IMC plan.

Integrate your Web site with your Integrate your Web site with your other marketing programs.other marketing programs.

Will you have multiple Web sites for Will you have multiple Web sites for your different constituencies?your different constituencies?

Develop the opening page of your Web Develop the opening page of your Web site.site.

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C 5C 5

Digital MarketingDigital Marketing

Dr. Hassan Sherif

Digital Marketing

is the promoting of brands using all forms of digital advertising. This now includes Television, Radio, Internet, mobile and any other form of digital media.

is the practice of promoting products and services using digital distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner.

Dr. Hassan Sherif

Pull Pull digital marketing technologies

involve the user having to seek out and directly select (or pull) the content, often via web search. Web site/blogs and streaming media (audio and video) are good examples of this. In each of these examples, users have a specific link (URL) to view the content.

Dr. Hassan Sherif

Pull Pros:

Since requests are inherently opt-in, the size of content is generally unlimited.

No advanced technology required to send static content, only to store/display it.

Cons:

Considerable marketing effort required for users to find the message/content.

Some types of marketing content may be blocked in mixed content scenarios (i.e.: Flash blockers)

Dr. Hassan Sherif

Push Push digital marketing technologies involve

both the marketer (creator of the message) as well as the recipients (the user). Email, SMS, RSS are examples of push digital marketing. In each of these examples, the marketer has to send (push) the messages to the users (subscribers) in order for the message to be received. In the case of RSS, content is actually pulled on a periodic basis (polling), thus simulating a push.

Dr. Hassan Sherif

PushPush Pros:

Faster delivery - deliver content immediately as it becomes available.

Consistent delivery - some push platforms have single content types, making it difficult for the user to block content by type.

Better targeting - since push technology usually justifies subscription, more specific marketing data may be collected during registration, which allows for better targeting and more personalization.

Better data - marketing data can be correlated to each request for content, allowing marketers to see information such as user name as well as demographic and psychographic data.

Dr. Hassan Sherif

PushPush Cons: Smaller audience. Higher cost. Lesser discoverability - smaller audiences mean

fewer views mean less visibility in search engines.

Dr. Hassan Sherif

DM & Multi-Channel Communications

While digital marketing is effective using one message type, it is much more successful when a marketer combines multiple channels in the message campaigns. For example, if a company is trying to promote a new product release, they could send out an email message or text campaign individually. This, if properly executed, could yield positive results. However, this same campaign could be exponentially improved if multiple message types are implemented.

An email could be sent to a list of potential customers with a special offer for those that also include their cell phone number. A couple of days later, a follow up campaign would be sent via text message (SMS) with the special offer.

Dr. Hassan Sherif

Push & PullPush & Pull

Push and pull message technologies can also be used in conjunction with each other. For example, an email campaign can include a banner ad or link to a content download. This enables a marketer to have the best of both worlds in terms of their marketing method.

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C6C6

E E CommunicatiCommunicati

onon

Dr. Hassan Sherif

47The PrivNet StoryThe PrivNet Story In 1995, James Howard:In 1995, James Howard:

was a senior at the University of North was a senior at the University of North Carolina, Chaptel Hill, Carolina, Chaptel Hill,

got the idea for a product to eliminate ads got the idea for a product to eliminate ads from Web pages. from Web pages.

PrivNet was born.PrivNet was born.

The main product: The main product: Internet Fast Forward (IFF), Internet Fast Forward (IFF), Inspired from the VCR, Inspired from the VCR, Able to filter banner ads from Web pages.Able to filter banner ads from Web pages. The motivation: save timeThe motivation: save time 30% of the market is interested in saving 30% of the market is interested in saving

timetime

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1.1. Internet AdvertisingInternet Advertising

Advertising: Advertising: Used to create awareness, Used to create awareness, provide information, create provide information, create positive attitudes about positive attitudes about products (image), and products (image), and remind users about productsremind users about products

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Internet Advertising Internet Advertising MethodsMethods

E-mail Advertising: E-mail Advertising: Least expensive type of on-line Least expensive type of on-line

advertisingadvertising Text based, usually tagging along on Text based, usually tagging along on

a consumers incoming messagesa consumers incoming messages

Web site Advertising:Web site Advertising: Text-from a sentence to pages of Text-from a sentence to pages of

story, graphics, sound, animation, story, graphics, sound, animation, and hyperlinksand hyperlinks

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E-Mail ModelE-Mail Model Three types:Three types:

Target PromotionsTarget Promotions Companies target users through research and Companies target users through research and

data mining to send e-maildata mining to send e-mail Bulk Email Software Marketing

Reverse ChannelReverse Channel User to firmUser to firm Customer serviceCustomer service Bass Pro Shops

Consumer-to-ConsumerConsumer-to-Consumer Word of mouthWord of mouth

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Embedded Text Advertisement in E-mail Message

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Banners and ButtonsBanners and Buttons

Occupy designated space for rent on Occupy designated space for rent on Web pagesWeb pages

Similar to the print advertising model Similar to the print advertising model used by magazine and newspapersused by magazine and newspapers

Advantage: video and audio Advantage: video and audio capabilitiescapabilities

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Three Most Common Banner Sizes

Dr. Hassan Sherif

54The Evolution of The Evolution of BannersBanners

Banners help build brand Banners help build brand awareness and build brand images.awareness and build brand images.

The more relevant the ad, the The more relevant the ad, the better the chance that it will grab better the chance that it will grab the viewer’s attention and create the viewer’s attention and create attitudinal and behavioral changes.attitudinal and behavioral changes.

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Banners: The First StageBanners: The First Stage Banners that called out “click here,” “free,” and Banners that called out “click here,” “free,” and

“download”:“download”: In bright colors to train users that banners were In bright colors to train users that banners were

interactive. interactive. Click-through: Users began to learn that by clicking Click-through: Users began to learn that by clicking

on banners, they would be transferred to another web on banners, they would be transferred to another web site. site.

Most banners are hyper-linked to the advertisers’ Most banners are hyper-linked to the advertisers’ site. site.

Banners must appeal to the users’ needs to Banners must appeal to the users’ needs to distract them from the site they are currently distract them from the site they are currently visiting.visiting.

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56Banners: The Second Banners: The Second StageStage

Banners began to feature animation Banners began to feature animation (common with today’s banners). (common with today’s banners).

This movement captures the users’ This movement captures the users’ attention on an otherwise static page.attention on an otherwise static page.

Animated GIFAnimated GIF: : Files that consist of a series of frames each Files that consist of a series of frames each

containing a separate picture. containing a separate picture. This animation results from rotating the This animation results from rotating the

frames with very short time delays between frames with very short time delays between each one.each one.

Animation is used to stimulate Animation is used to stimulate movement or expose the user to a movement or expose the user to a sequence of messages.sequence of messages.

Dr. Hassan Sherif

57Banners: The Third Banners: The Third StageStage

Interactive Banners: Interactive Banners: The most The most advanced stage of a banner.advanced stage of a banner.

Some banners sense the position Some banners sense the position of the mouse on the Web page of the mouse on the Web page and begin to animate faster as and begin to animate faster as the user approaches.the user approaches.

Banners that have built-in games.Banners that have built-in games. Banners with drop-down menus, Banners with drop-down menus,

check boxes, and search boxes to check boxes, and search boxes to engage and empower the user.engage and empower the user.

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BuyComp Interactive BannerSource: www.buycomp.com

Dr. Hassan Sherif

592. Public Relations Activities of 2. Public Relations Activities of the Netthe Net

Appropriate for a diverse group of stakeholders + Appropriate for a diverse group of stakeholders + used to create goodwill among a number of different used to create goodwill among a number of different publics including:publics including: Company shareholders and employees;Company shareholders and employees; The media;The media; Suppliers;Suppliers; Local community;Local community; Consumers;Consumers; Business buyers.Business buyers.

Public Relations content attempts to create a positive Public Relations content attempts to create a positive feeling about the company or its brands among feeling about the company or its brands among various publics.various publics. Johnson & Johnson - Johnson & Johnson - www.jnj.com

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Stakeholder

Online Content Stakeholder

Online Content

Shareholders Financial reportsSEC filingsManagement changesCompany activities

Consumers and business buyers

Online eventsBrochurewareProduct informationStore locatorsTestimonialsCustomer service activities

Employees Employee accomplishmentsEmployee benefitsEmployee directoryCompany informationTraining materials

Suppliers New-product informationCompany news

Media Press releases/newsMedia kit materialContact information

Community Social programsLocal news relating to firmEmployment opportunities

Online Public Relations Content for Selected Stakeholders

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BrochurewareBrochureware A site that provides:A site that provides:

Information about the company’s products and Information about the company’s products and services without providing interactive features. services without providing interactive features.

An excellent opportunity to brand as well as to An excellent opportunity to brand as well as to develop a relationship with the consumer and develop a relationship with the consumer and other stakeholders.other stakeholders.Press releases for the news mediaPress releases for the news mediaCorporate reports for investorsCorporate reports for investorsEmployment information for potential Employment information for potential employeesemployees

Employee benefit information for current Employee benefit information for current employeesemployees

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Online Events Online Events Generate user interest and draw them to Generate user interest and draw them to

the site.the site.

Companies and organizations hold Companies and organizations hold seminars, workshops, and discussions seminars, workshops, and discussions online.online.

Forthcoming events are used as Forthcoming events are used as legitimate reasons to email potential and legitimate reasons to email potential and existing clients. existing clients.

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Online Customer ServiceOnline Customer Service A communication channel for customers.A communication channel for customers. Many companies and organizations offer Many companies and organizations offer

customer feedback features on web sites customer feedback features on web sites that allow customers the opportunity to that allow customers the opportunity to voice concerns. voice concerns.

Automated customer service programs Automated customer service programs acknowledge the message via e-mail, acknowledge the message via e-mail, indicating that a customer service indicating that a customer service representative will be responding shortly. representative will be responding shortly.

Feedback options should only be Feedback options should only be included on the Web site if the company included on the Web site if the company has the staff to respond.has the staff to respond.

Dr. Hassan Sherif

643. Sales Promotions on the 3. Sales Promotions on the InternetInternet Coupons, rebates, product sampling, contests, Coupons, rebates, product sampling, contests,

sweepstakes, and premiums. sweepstakes, and premiums.

Marketers report three to five times higher Marketers report three to five times higher response rates with online promotions than response rates with online promotions than with direct mail. with direct mail.

Online promotions also give the firm the Online promotions also give the firm the opportunity to gather names for the firm’s opportunity to gather names for the firm’s email database. email database.

Send subsequent promotions while building Send subsequent promotions while building relationships with current and potential relationships with current and potential customerscustomers

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E-CouponsE-Coupons E-coupons are similar to traditional E-coupons are similar to traditional

coupons, but Internet users can “point coupons, but Internet users can “point and clip” these electronic coupons. and clip” these electronic coupons.

Customers also have the option in some Customers also have the option in some sites to simply give the coupon code sites to simply give the coupon code when placing an order and the discount when placing an order and the discount will be applied.will be applied.

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H.O.T! Coupons Distributes Coupons in Most Local Areas Source: www.hotcoupons.com

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SamplingSampling

Some sites allow users to sample Some sites allow users to sample digital product prior to purchase:digital product prior to purchase:Free download of fully functional Free download of fully functional demo version of software that demo version of software that expires in 30 to 60 daysexpires in 30 to 60 days

30-second clips of music before 30-second clips of music before ordering the CDordering the CD

Dr. Hassan Sherif

68Contest and Contest and SweepstakesSweepstakes

Goal: drive traffic and keep users Goal: drive traffic and keep users returningreturning

Contests require skill (e.g. trivia answer) Contests require skill (e.g. trivia answer) and Sweepstakes involve pure chance and Sweepstakes involve pure chance Create excitement about brands and entice Create excitement about brands and entice

customers to stop bycustomers to stop by

Move customers to the place where they Move customers to the place where they can purchase product.can purchase product.

Dr. Hassan Sherif

694. Personal Selling on an 4. Personal Selling on an Impersonal MediumImpersonal Medium

The Net is not appropriate for The Net is not appropriate for personal selling except in an ancillary personal selling except in an ancillary role.role.

The Web is very good for generating The Web is very good for generating leads for the sales force.leads for the sales force.

e.g.: Online form for those wanting a e.g.: Online form for those wanting a salesperson to contact themsalesperson to contact them

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5. Direct Marketing5. Direct Marketing

““Direct communication through Direct communication through nonpersonal media with carefully targeted nonpersonal media with carefully targeted individuals to obtain an immediate individuals to obtain an immediate response”response”

Telemarketing, Outgoing email, Snail mailTelemarketing, Outgoing email, Snail mail

1999: more than 569 million e-mail boxes 1999: more than 569 million e-mail boxes worldwide (the larger part is Web based)worldwide (the larger part is Web based)

2004: marketers will send over 200 billion 2004: marketers will send over 200 billion e-mail messagese-mail messages

= 9 marketing e-mails a day for each = 9 marketing e-mails a day for each householdhousehold

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Direct MarketingDirect Marketing E-mail advantage over direct-mail:E-mail advantage over direct-mail:

No postal chargesNo postal charges Convenient avenue for direct responseConvenient avenue for direct response E-mail can be automatically individualized E-mail can be automatically individualized

to meet the needs of specific usersto meet the needs of specific users

E-mail disadvantage over direct-mail:E-mail disadvantage over direct-mail: Difficulty in finding appropriate e-mail listDifficulty in finding appropriate e-mail list Consumers are more upset about Spam Consumers are more upset about Spam

(unsolicited e-mail) than they are about (unsolicited e-mail) than they are about unsolicited snail mailunsolicited snail mail

Dr. Hassan Sherif

72Direct MarketingDirect Marketing E-mail give the marketers :E-mail give the marketers :

The chance for a real dialogue with individual customersThe chance for a real dialogue with individual customers A way to develop broad and deep customer relationshipsA way to develop broad and deep customer relationships The opportunity to use technology advances by displaying The opportunity to use technology advances by displaying

graphic contents, linksgraphic contents, links

Advantages of periodic e-mail newsletters:Advantages of periodic e-mail newsletters: Regularly and legitimately promote the company nameRegularly and legitimately promote the company name Personalize the communication with tailored contentPersonalize the communication with tailored content Positioning the company as an expert in a subjectPositioning the company as an expert in a subject Pointing recipient back to the company Web sitePointing recipient back to the company Web site Being easy for clients to pass along to othersBeing easy for clients to pass along to others Paying for themselves by carrying small advertisementsPaying for themselves by carrying small advertisements

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Opt-In, Opt-OutOpt-In, Opt-Out Lists can be purchased from list brokersLists can be purchased from list brokers

Will send your message to massive Will send your message to massive distribution listsdistribution lists

e.g.: PostMaster Direct Response e.g.: PostMaster Direct Response ((www.postmasterdirect.com))

Over 6 million Opt-In names and Over 6 million Opt-In names and email addresses in 3000 categoriesemail addresses in 3000 categories

Builds list through Opt-In at over 200 Builds list through Opt-In at over 200 partner sites such as partner sites such as www.altavista.com

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Opt-In, Opt-OutOpt-In, Opt-Out Marketers search Marketers search opt-inopt-in lists (users lists (users have voluntarily agreed to receive have voluntarily agreed to receive commercial e-mail about topics commercial e-mail about topics that might interest them) because that might interest them) because they have higher response.they have higher response.

Opt-outOpt-out: users have to uncheck the : users have to uncheck the box on a Web page to prevent box on a Web page to prevent being put on the e-mail list.being put on the e-mail list.

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Permission MarketingPermission Marketing Opt-In techniques are part of a Opt-In techniques are part of a

bigger strategy called bigger strategy called Permission Permission MarketingMarketing..

Provides incentives to accept Provides incentives to accept advertising and email voluntarilyadvertising and email voluntarily

Basis of many Internet MarCom Basis of many Internet MarCom strategiesstrategies

E.g.: E.g.: www.Amazon.com - collects - collects purchase info and serves it purchase info and serves it collectively to otherscollectively to others

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Viral marketingViral marketing ““A bad name for a great A bad name for a great

technique.”technique.”

Internet equivalent to word of Internet equivalent to word of mouth – a user gets an email mouth – a user gets an email and forwards the message on to and forwards the message on to their friends and co-workerstheir friends and co-workers

Less expensive than offline Less expensive than offline promotionpromotion

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SpamSpam Unsolicited Email Unsolicited Email

Can generate negative publicity for Can generate negative publicity for the organizationthe organization

Nike Corp. published an anti-spam Nike Corp. published an anti-spam policypolicy

Spam lists can be generated from Spam lists can be generated from public directoriespublic directories

Spammers can hide return addressesSpammers can hide return addresses

Filters spamFilters spam

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Electronic MediaElectronic Media Electronic media includes network Electronic media includes network

television, radio, cable television, the television, radio, cable television, the Internet, FAX machines, cellular phones, Internet, FAX machines, cellular phones, and pagers.and pagers.

Three types of media are:Three types of media are:Broadcast mediaBroadcast mediaNarrowcast mediumNarrowcast mediumPointcast mediaPointcast media

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Broadcast MediaBroadcast Media TV and radioTV and radio

Both only allow for passive attentionBoth only allow for passive attention

TV penetration reaches over 98% of TV penetration reaches over 98% of U.S. householdsU.S. households

Radio penetration is also ubiquitous, Radio penetration is also ubiquitous, almost every car and household has almost every car and household has one.one.

The Internet is nipping at their heelsThe Internet is nipping at their heels

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Narrowcast MediumNarrowcast Medium This is cable TV (CATV)This is cable TV (CATV)

It is called narrowcast because the It is called narrowcast because the cable channels contain very focused cable channels contain very focused electronic content appealing to special-electronic content appealing to special-interest markets.interest markets.

Examples are CNN and ESPNExamples are CNN and ESPN

CATV and the Internet share a common CATV and the Internet share a common problem, the number of small audience problem, the number of small audience channels precludes a cost-effective channels precludes a cost-effective comprehensive measurement system.comprehensive measurement system.

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Pointcast MediaPointcast Media Pointcast media include all electronic media Pointcast media include all electronic media

with the capability of transmitting to an with the capability of transmitting to an audience of just one person.audience of just one person.

Promotes interactivityPromotes interactivity The Internet is the biggest pointcast medium.The Internet is the biggest pointcast medium. The Internet is the first electronic medium to The Internet is the first electronic medium to

allow active, self-paced viewing.allow active, self-paced viewing. There is difficultly in defining Web audience There is difficultly in defining Web audience

member characteristics on an individual member characteristics on an individual level.level.

Must be solved to so the Net can reach full Must be solved to so the Net can reach full capability as a pointcast medium.capability as a pointcast medium.

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 Criterion

 TV

 Radio

 Magazine

 Newspaper

Direct Mail

 Web

Involvement

passive passive active active active interactive

Mediarichness

multi-media

audio text and graphic

text and graphic

text and graphic

multi-media

Geographiccoverage

global local global local varies global

CPM low lowest high medium high medium

Reach high medium

low medium varies medium

Targeting good good excellent good excellent

excellent

Track effectiveness

fair fair fair fair excellent

excellent

Message flexibility

poor good poor good excellent

excellent

Strengths and Weaknesses of Major Media