Download - E-marketing communication
E-Marketing Communication
Yeşim SoyluMelike AkdülgerOkan ErolIlgın Ece ŞahinKemal YerlikayaSeda Çetin
05 May 2008 / Lecture slides for Digital Marketing courseContact: [email protected]
Lecture Objectives
The new age consumer and communication Define integrated marketing communication
(IMC) and explain the importance of hierarchy of effects models.
Describe the characteristics of the major media and the Internet’s media characteristics.
Discuss how marketers use the Internet for advertising, marketing public relations, sales promotions, and direct marketing.
Outline the methods for buying media and vehicles and for evaluating an IMC campaign’s effectiveness.
Consumer behavior is changing
Technology has changed too..
We influence each other differently
From advertising age to conversation age
http://darmano.typepad.com/logic_emotion/conversation_marketing/index.html
Integrated Marketing Communications IMC Characteristics:
Coherence Consistency Continuity Complementary
IMC is a cross-functional process for planning, executing, and monitoring brand communications.
The goal is to profitably acquire, retain, and grow customers.
Integrated marketing communicationsThe coordiation of communicationschannels to deliver a clear,consistentmessage
How do internet marketing communications differ from traditional marketing communications?
Interactivity Intelligence Individualisation Integration Industry restructuring Independence of location
Online communication mix
Decision on the mix between different communication techniques such as search engine marketing, e-mail marketing and online advertising.
Control of media spending and purpose of communication Attraction Conversion Retention
Characteristics of interactive marketing communications
Push media: Communications are broadcast from an advertiser to consumers of the message who are passive recipients (TV and radio)
Pull media: The consumers is proactive in selection of the message through actively seeking out a web site. (internet)
From push to pull
From monologue to dialogueCreating a dialogue through interactivity
İnternet marketing tools
Marketing Communication Tools Marketing Communication consists of both
planned and unplanned messages between firms and customers and among customers.
E-marketers can enhance Marketing Communication by using innovative technologies.
Internet Marketing Communication may include advertising, sales promotion, marketing public relations, and direct marketing.
Marketing Communication Media The Internet is just one of many media
used to carry Marketing Commnication messages.
Based on their ability to reach increasingly narrower audiences, electronic media can be viewed as: Broadcast (TV and radio) Narrowcast (Cable TV) Pointcast (Internet and cell phone)
Strengths & Weaknesses of Media
Criterion TV Radio Magazine Newspaper Direct Mail Internet
Involvement passive passive active active active interactive
MediaRichness
multi-media
audio text and graphic text and graphic text andgraphic
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
IMC Goals and Strategies The AIDA and “think, feel, do” (hierarchy of
effects) models help guide selection of online and offline Marketing Communication tools.
Consumers first become aware of a product before they develop feelings and purchase it. Application depends on whether the product purchasing decision is high- or low- involvement.
The models can help marketers select appropriate communication objectives and strategies, such as: Build brand equity. Elicit a direct response.
Direct Marketing
Direct marketing includes techniques such as: Telemarketing Outgoing e-mail Postal mail, including catalog marketing Targeted online ads Short message services (SMS) Multimedia message services (MMS) Instant messaging (IM)
Direct Marketing
Direct marketing is broadly defined as any direct communication to a consumer that is designed to generate a response in the form of an order, a request for information, and/or a visit to a store or other place of business for purchase of a product or products.
Ex:http://directmarketingstore.com
Techniques
E-mail Permission Marketing Viral Marketing Messaging Location Based-Marketing
E-mail (Advantages) No postage or Printing Charges Immediate and direct response Can be individualized to meet the needs
of specific users
E-mail (Disadvantages)
Unsolicited e-mail Difficulty in finding appropriate lists
Web site registration Rented from list broker Harvested from newsgroups
Email: Spam!
All unsolicited e-mails is considered spam!
E-mail offers the chance for real
dialogue with individual customers, as well as a way to develop broad and deep customer relationships instead of merely using it to acquire to customers
Newsletter Advantages
Promote the company name Personalize communication Position the company as an expert in a
subject Makes it easy to pass information Pay themselves with carrying small ads
Permission Marketing
Turning strangers into customers Asking people about what they are
interested in Successfull because in return for
participation users get coupons, cash or free products
Opt-in, opt-out example
Opt-in Techniques will evolve and grow in years
to attract customers for opt-in such as using quizes, games;
Heineken’s Delivery Game Axe’s Maneater
Viral Marketing - WoM
Hotmail story, from 50000$ to 400m$ with 12m customers
Bush vs Kerry cartoon visited 4.5m without ad
American Psycho’s invitations written by the murderer
Messaging
SMS, MMS, IM To be successfull, messages should be
short, personalized, interactive and relevant
Such as; notification of upcoming flight delay, notfication
Location Based Marketings
Isnt it great to receive an SMS on your cell, offering a free beverage from your favorite restaurant?
With GPS it can be done but expensive comparison to other techniques
%88 says they will use accept the offer if they recieved such message
Internet Advertising
Formats Banners Pop-Ups Sponsorships Interstitials, Superstitials & Screen
Interrupts Search Engine Marketing (SEM)
Key word advertisingSearch Engine Optimization
Banners:
Attract attention for awareness or direct response
May involve graphics, audio or video capabilities Pros • Adressed to the users of selected websites• Cost-effective ad method• Easy to implement• Effective measurement Cons• Too much loading time• Irritating (Banner blocker softwares…)• Mostly ineffective
Banners:
History Started in 1994
By AT&T 30% click-through 0.15% today Declining effect New tech updates Still popular aftervideo ads, search adsand advergames.
Banners: How To
Determine need Planning
Plan your ad & Design Select tools & Compute costs
Decide on publisher media Construct campaign Monitor
Banners: Top 10 Tips
1. Target2. Pose questions3. Bright colors4. Home is not
always sweet5. Location
6. Use animation7. Use cryptic
messages8. Call to action9. Avoid Banner
Burnout10. Measure beyond
the click
Pop-Ups
Appears with page loading, mouse action or page content.
Definitely visible; but extremely irritating.
“Current click-through rates are inflated because many
Internet users are not familiar with how to close the pop-up
window. The rates will decrease as users gain experience” (1)
GartnerG2 conducted the research, finding 78 percent of
Internet users say pop-ups are "very annoying." Only 49
percent find banner ads as annoying as pop-ups.(2)
http://advertising.about.com/library/weekly/aa012803a.htm (1,2)
Sponsorships
Wrigley candystand
Interstitials, Superstitials & Screen Interrupts
Interstitials Appears while loading Negative bias for slow loading
Superstitials Embedded mini-videos in website content Faster loading time Responds to mouse activation
Screen Interrupts (Shoshkele) Enjoyable but invasive
Example: An Interstitial
Example: Superstitials
http://www.hillmancurtis.com/hc_web/web_motion/source/ultimatetv_superstitial.html
Marketing Public Relations
Web Site Blogs Community Building Online Events
Marketing Public Relations
Web site Improve web site in order to increase
customer experience Modify web site for special events and days Collect customer data for further
interaction Low-cost PR alternative
Under satisfactory visiting frequencies
Marketing Public Relations
Blogs Started in 1997 as diaries Became mainstream & effective since 2004 For sharing info and experience Created by fans, users & companies
http://ilovemyadidas.blogspot.com/http://blogs.motortrend.com/2/110/porsche/
index.html
Blogs
Blogs
Marketing Public Relations
Brand Communities Network of customer relationships Built on context and relevance of content Mutual Responsibility Rituals and traditions Celebrate brand history Share brand stories Assimilate new brand users
“A brand community is a specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand.” Muniz and O’Guinn (2001, p.412)
Marketing Public Relations
Spread Firefox
Nike Plus
Harley Davidson
Dell Ideastorms
Marketing Public Relations
Information Exchange
SocialInteraction
Group Focus
DungeonsRooms
ListsBoards Rings
Loose High
Social Structure
The first types of virtual internet based communities that were of value to marketers. Source: Kozinets (2000)
High self-centrality of consumption
Strong social ties to
community
Low self centrality of consumption
Weak social ties to
community
Devotee
Tourist
Insider
Mingler
Types of users found in virtual internet based communities and their characteristics.Source: Kozinets (2000)
Brand Communities: Members are the messengers
Marketing Public Relations
Online Events Generate user interest & draw traffic to site
Examples: Amazon let members to contribute stories started by
famous authors Land Rover broadcasts Camel Trophy online Online Victoria’s Secret and Superbowl shows Online discussions and workshops with corporate
managers
Sales Promotion Offer
Coupons Sampling Contests & Sweepstakes Advergames
Coupons & Sampling
Coupons For both online & offline clients Offers include both online and offline
advantages http://www.indirimkuponlarim.com/ http://www.yemeksepeti.com/elit/
Sampling Free testware or partial software Home delivery sampling after online
application
Advergames
“Let’s face it. 30-second tv commercial is tired. The banner ad just ain’t clicking. And pop-ups are public enemy #1.”
Adressed to teenagers, game-o-holics & anyone visiting the corporate websites
Consumers’ willingness is the key to participate and create viral buzz
Strengthens connections and increases brand awareness while offering fascinating experiences
40 million hits monthly, only at advergames.com
Advergames
Traffic and Metrics
Efficient and Effective Right target at low cost
ADs Inorganic vs Organic
Traffic and Metrics
Appropriate ad for user’s interest Using cookies
CPM (cost per thousand) Impressions efficiency $7-15
Tracking Progress
IMC Metrics AD click; most likely a purchase
Has only 2.4% chance
Tracking Progress
Top sites in Turkey that drive traffic.
Taken from:
Alexa.com
Display Ads Brand awareness Message association
Results
100% increase in impressions
42% increase in brand effectiveness
More ResultsClick Through Rate – click to impressions; 0.4 - 10%Customer Acquisation Cost - $82 for online vs $31
offlineConversion Rate – customers to visitors; 1.8%(banners)
-5%(emails)Cost per Click – pay per click ADS
IMC Metrics
Banner ads are ineffective? Only 0.15% of all users click on them.
Rich media ads receive an average 2.5% click-through.
Online ads that were bigger, placed as interstitials or contained rich media delivered greater impact.
There is increasing evidence that online and offline advertising work well together.
Mini-Case
Heineken
Porche
HSBC
Benetton
How would you communicate your brand online?
To summarize...
When designing e-marketing communication strategy take into account the changing media and
consumer the cost and effectiveness of the media choose between many alternatives that
best fit your purpose e-mail marketing/online advertising/direct
marketing measure to see results
Thanks for listening!
Please send questions and comments. [email protected]
ReferencesDave Chaffey, Internet Marketing Strategy, Implementation and Practice
Ch# 1,4,8
Dave Chaffey, Total E-mail Marketing Maximizing Your Results From Integrated E-marketing
John O’Connor, Electronic Marketing Theory and Practice for the Twenty-first Century Ch#12 Promoting to markets of one
Larry Weber, Marketing to the Social Web How Digital Customer Communities Build Your Business
http://darmano.typepad.com/