Download - Session #4 2011
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Online Advertising
Tuesday, October 4, 2011
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Show and Sell
Tuesday, October 4, 2011
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Online advertising?
Tuesday, October 4, 2011
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“The Internet will transform advertising because of its track ability, not its beauty.”
-Eric Schmidt, Google CEO
Tuesday, October 4, 2011
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conundrum
Advertisersmust attract attention withoutBeing
Annoying
Tuesday, October 4, 2011
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Some say advertising is dead
A few million people think so…
Tuesday, October 4, 2011
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Integrated Marketing StrategiesIntegrated Marketing Defined:
“A management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation.”
about.com
Or“Weaving together digital and physical channels to
engage consumers’ emotions, deliver brand experiences, and form ongoing relationships.”
Forrester Research “Essentials of Integrated Marketing”
Tuesday, October 4, 2011
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Marketing Online In The Real WorldThe product itselfPackagingPoint of SaleOut-of-homeDirect MarketingPrintRadioTV
Tuesday, October 4, 2011
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Marketing The Real World OnlineCorporate SiteMicro-sitesOnline AdvertisingE-mail MarketingBlogsSearch
Tuesday, October 4, 2011
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Integrated Marketing Strategies
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Demand early collaboration of disciplines
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Demand early collaboration of disciplinesDefine audiences with personas
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Demand early collaboration of disciplinesDefine audiences with personasDrive planning by behaviour
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Demand early collaboration of disciplinesDefine audiences with personasDrive planning by behaviourShape execution with ideas, not by media channels
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Demand early collaboration of disciplinesDefine audiences with personasDrive planning by behaviourShape execution with ideas, not by media channelsPoint to the next step in all communications
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Demand early collaboration of disciplinesDefine audiences with personasDrive planning by behaviourShape execution with ideas, not by media channelsPoint to the next step in all communicationsMeasure progress along the path
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Demand early collaboration of disciplinesDefine audiences with personasDrive planning by behaviourShape execution with ideas, not by media channelsPoint to the next step in all communicationsMeasure progress along the path
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Demand early collaboration of disciplinesDefine audiences with personasDrive planning by behaviourShape execution with ideas, not by media channelsPoint to the next step in all communicationsMeasure progress along the path
Tuesday, October 4, 2011
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Integrated Marketing StrategiesSix Essentials of Integrated Marketing
Demand early collaboration of disciplinesDefine audiences with personasDrive planning by behaviourShape execution with ideas, not by media channelsPoint to the next step in all communicationsMeasure progress along the path
Forrester Research “Essentials of Integrated Marketing”
Tuesday, October 4, 2011
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Tuesday, October 4, 2011
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Tuesday, October 4, 2011
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Tuesday, October 4, 2011
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Tuesday, October 4, 2011
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http://www.youtube.com/watch?v=iYhCn0jf46U
Tuesday, October 4, 2011
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The Online Marketing Toolkit
Tuesday, October 4, 2011
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Internet Strategy
Web Site Strategy
The Online Marketing Toolkit
Permission
Conversation
SearchVisibility
PaidSearch
Measurement
Reinvention
E-mailMarketing
Corporate Site Micro Sites
Tuesday, October 4, 2011
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Internet Strategy
Web Site Strategy
The Online Marketing Toolkit
Permission
Conversation
ViralMarketing
Cross ChannelPromotion
SearchVisibility
PaidSearch
Measurement
Reinvention
E-mailMarketing
Corporate Site Micro Sites
Tuesday, October 4, 2011
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Internet Strategy
Web Site Strategy
The Online Marketing Toolkit
Permission
Conversation
ViralMarketing
Cross ChannelPromotion
OnlineAds
SearchVisibility
PaidSearch
Measurement
Reinvention
E-mailMarketing Feeds
Corporate Site Micro Sites
Tuesday, October 4, 2011
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Search38%
Display31%
Classified12%
Lead Gen11%
Email9%
Search DisplayClassified Lead GenEmail
$60 Billion
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
• Simplifiers (convenience)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
• Simplifiers (convenience)• Surfers (find information, explore new ideas, shop)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
• Simplifiers (convenience)• Surfers (find information, explore new ideas, shop)• Bargainers (search for good deal)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
• Simplifiers (convenience)• Surfers (find information, explore new ideas, shop)• Bargainers (search for good deal)• Connectors (stay in touch with other people)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
• Simplifiers (convenience)• Surfers (find information, explore new ideas, shop)• Bargainers (search for good deal)• Connectors (stay in touch with other people)• Returners (return to same sites over and over)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
• Simplifiers (convenience)• Surfers (find information, explore new ideas, shop)• Bargainers (search for good deal)• Connectors (stay in touch with other people)• Returners (return to same sites over and over)• Sportsters (spend time on sports, entertainment sites)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Segmentation Using Customer Behaviour
• Simplifiers (convenience)• Surfers (find information, explore new ideas, shop)• Bargainers (search for good deal)• Connectors (stay in touch with other people)• Returners (return to same sites over and over)• Sportsters (spend time on sports, entertainment sites)
• Must identify groups and formulate ways of generating revenue
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
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Research
Tuesday, October 4, 2011
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Planning a campaign
Define goalsInvestigate target audienceDetermine websites to display adverts
Websites or networks will affect format and payment models
Brief the creative team
Tuesday, October 4, 2011
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Online adverts need to
Attract attention
Convey a message
Entice action
A C E
Tuesday, October 4, 2011
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The key differentiator
Immediate response onlineOnline can be interactiveInternet is highly
Trackable Targetable Measurable
Tuesday, October 4, 2011
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Advertising on the Web
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
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Advertising on the Web
• Effective advertising involves communication
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
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Advertising on the Web
• Effective advertising involves communication• Five-stage customer loyalty model: helpful in creating
advertising messages
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
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Advertising on the Web
• Effective advertising involves communication• Five-stage customer loyalty model: helpful in creating
advertising messages– Awareness stage
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
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Advertising on the Web
• Effective advertising involves communication• Five-stage customer loyalty model: helpful in creating
advertising messages– Awareness stage
• Advertising message should inform
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
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Advertising on the Web
• Effective advertising involves communication• Five-stage customer loyalty model: helpful in creating
advertising messages– Awareness stage
• Advertising message should inform– Exploration stage
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
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Advertising on the Web
• Effective advertising involves communication• Five-stage customer loyalty model: helpful in creating
advertising messages– Awareness stage
• Advertising message should inform– Exploration stage
• Message should explain how product, service works
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
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Advertising on the Web
• Effective advertising involves communication• Five-stage customer loyalty model: helpful in creating
advertising messages– Awareness stage
• Advertising message should inform– Exploration stage
• Message should explain how product, service works• Encourage switching brands
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)– Familiarity stage
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)– Familiarity stage
• Message should be persuasive, convince customer to buy
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage• Customer sent reminder messages
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage• Customer sent reminder messages
– Separation stage
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage• Customer sent reminder messages
– Separation stage• Customer not targeted
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage• Customer sent reminder messages
– Separation stage• Customer not targeted
• Online advertising
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage• Customer sent reminder messages
– Separation stage• Customer not targeted
• Online advertising– Always coordinate with existing advertising efforts
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
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Electronic Commerce, Ninth Edition 33
FIGURE 4-5 Funnel model of customer acquisition, conversion, and retention
Tuesday, October 4, 2011
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Online Advertising Cost and Effectiveness (cont’d.)
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
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Online Advertising Cost and Effectiveness (cont’d.)
• New metrics to evaluate advertising yield outcomes
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
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Online Advertising Cost and Effectiveness (cont’d.)
• New metrics to evaluate advertising yield outcomes– Measure number of new visitors who buy first time after
arriving at site
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
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Online Advertising Cost and Effectiveness (cont’d.)
• New metrics to evaluate advertising yield outcomes– Measure number of new visitors who buy first time after
arriving at site• By way of click-through
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
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Online Advertising Cost and Effectiveness (cont’d.)
• New metrics to evaluate advertising yield outcomes– Measure number of new visitors who buy first time after
arriving at site• By way of click-through
– Calculate advertising cost of acquiring one customer on the Web
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
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Online Advertising Cost and Effectiveness (cont’d.)
• New metrics to evaluate advertising yield outcomes– Measure number of new visitors who buy first time after
arriving at site• By way of click-through
– Calculate advertising cost of acquiring one customer on the Web
• Compare to how much it costs to acquire one customer through traditional channels
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
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Center for Management Development
What is online customer acquisition?
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
“The new iPad looks really cool!”
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
“The new iPad looks really cool!”
“I think the iPad could really help me catch up on my reading and emails during my commute.”
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
“The new iPad looks really cool!”
“I think the iPad could really help me catch up on my reading and emails during my commute.”
“I did some research to find out which iPad might be right for me.”
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
“The new iPad looks really cool!”
“I think the iPad could really help me catch up on my reading and emails during my commute.”
“I did some research to find out which iPad might be right for me.”
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
“The new iPad looks really cool!”
“I think the iPad could really help me catch up on my reading and emails during my commute.”
“I did some research to find out which iPad might be right for me.”
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
“The new iPad looks really cool!”
“I think the iPad could really help me catch up on my reading and emails during my commute.”
“I did some research to find out which iPad might be right for me.”
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
“I think the iPad could really help me catch up on my reading and emails during my commute.”
“I did some research to find out which iPad might be right for me.”
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
“I did some research to find out which iPad might be right for me.”
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action “I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
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Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
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Center for Management Development
Attention
Interest
Desire
Action
Each phase of the online sales funnel has proven strategies, tactics & performance measures
Tuesday, October 4, 2011
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Center for Management Development
Attention
Interest
Desire
Action
Each phase of the online sales funnel has proven strategies, tactics & performance measures
Tuesday, October 4, 2011
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Center for Management Development
Driving online attention
Tuesday, October 4, 2011
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Center for Management Development
Driving online attention• Public Relations
Tuesday, October 4, 2011
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Center for Management Development
Driving online attention• Public Relations• Social Marketing
Tuesday, October 4, 2011
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Center for Management Development
Driving online attention• Public Relations• Social Marketing• Branded Microsites
Tuesday, October 4, 2011
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Center for Management Development
Driving online attention• Public Relations• Social Marketing• Branded Microsites• Offline brand advertising
Tuesday, October 4, 2011
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Center for Management Development
Driving online attention• Public Relations• Social Marketing• Branded Microsites• Offline brand advertising• Online brand advertising
Tuesday, October 4, 2011
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32
Center for Management Development
Tuesday, October 4, 2011
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32
Center for Management Development
Tuesday, October 4, 2011
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32
Center for Management Development
Tuesday, October 4, 2011
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33
Tuesday, October 4, 2011
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34
Tuesday, October 4, 2011
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• Site• Blogs• Youtube
• Pushing to one hub
35
Performance Hub
Tuesday, October 4, 2011
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• Site• Blogs• Youtube
• Pushing to one hub
35
Performance Hub
Tuesday, October 4, 2011
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Center for Management Development
Measuring online attention:
Awareness-Driving Tactic Proxy MetricPublic Relations •# of impressions / mentions
•Buzz measurement (e.g. Net Promoter Score)
Social Marketing •# of friends / fans / followers •Total visits to a social tool
Branded Microsites •# of visitors•Time spent on site•Level of interaction with site•# of cookies / email addresses captured for remarketing
Offline brand advertising •# of online video views•# / type of comments
Online brand advertising •# of impressions•Reach / frequency•Pre/post exposure ad effectiveness study•# of cookies captured for remarketing
Tuesday, October 4, 2011
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Center for Management Development
Social marketing still considered
Tuesday, October 4, 2011
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Center for Management Development
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
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Center for Management Development
Driving Interest with online marketing
Tuesday, October 4, 2011
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Center for Management Development
Driving Interest with online marketing
Tuesday, October 4, 2011
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Center for Management Development
Search Engine Marketing
Paid Search: • Keyword/phrase
targeted text ads• Cost-per-click pricing
established through bids; daily budget caps
• Etailers typically measure through to completed sale, and calculate resulting cost-per-order (CPO)
• Search Engines maximize their revenue by serving ads with the best combination of– Bid price
Tuesday, October 4, 2011
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Center for Management Development
Search Engine Marketing
Paid Search: • Keyword/phrase
targeted text ads• Cost-per-click pricing
established through bids; daily budget caps
• Etailers typically measure through to completed sale, and calculate resulting cost-per-order (CPO)
• Search Engines maximize their revenue by serving ads with the best combination of– Bid price
Shopping Results:
• Daily data feeds from retailers (image, SKU, price)
• Free
Tuesday, October 4, 2011
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Center for Management Development
Organic Traffic
• Direct entry traffic– Visitors type in URL
• Search Engine Optimization– Search engines optimize natural
rankings based on an algorithm that includes:
• Site indexation: Making the site “friendly” to search engines
• Content relevance: Once indexed, content needs to be optimized for the right keywords
• Link popularity: Incoming links (both volume and quality) help search engines determine the “importance” of the content
Tuesday, October 4, 2011
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Center for Management Development
Remarketing / Retargeting
• Retarget microsite / website visitors • Retarget ad banner clickers• Retarget ad banner viewers
Retarget specific contentHow it works
Tuesday, October 4, 2011
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Change of
ROAS
VS
CPATuesday, October 4, 2011
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This means someone answering the ‘brand awareness’ survey “no, I never heard of them” but then two days later, is more then twice as likely to click on a text ad.Tuesday, October 4, 2011
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CPM
Tuesday, October 4, 2011
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CPCTuesday, October 4, 2011
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CPA
Tuesday, October 4, 2011
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Banner Add
Tuesday, October 4, 2011
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Impressions
Tuesday, October 4, 2011
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Call to Action
Tuesday, October 4, 2011
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Click Rate
Tuesday, October 4, 2011
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Unique Visitors
Tuesday, October 4, 2011
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Landing Page
Tuesday, October 4, 2011
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Conversion Rate
Tuesday, October 4, 2011
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ROI
Tuesday, October 4, 2011
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Click Tracking
Tuesday, October 4, 2011
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Stickiness
Tuesday, October 4, 2011
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Targeting
Tuesday, October 4, 2011
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Demographic Targeting
Tuesday, October 4, 2011
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Contextual Targeting
Tuesday, October 4, 2011
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Contextual Targeting
Tuesday, October 4, 2011
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Tuesday, October 4, 2011
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Behavioural Targeting
Tuesday, October 4, 2011
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Geographic Targeting
Tuesday, October 4, 2011
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Day-part TargetingTuesday, October 4, 2011
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Purchase-Based Category TargetingTuesday, October 4, 2011
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Social Based
Tuesday, October 4, 2011
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Targeting and optimizing
Networks track users Cookies IP address Across web sites
Advertisers can use this information to target adverts
Tuesday, October 4, 2011
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Targeting can be problematic
• Contextual advertising can get it wrong
–Shark diving advert next to article about shark attack
• Online behaviour does not always represent true interests
Tuesday, October 4, 2011
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Tuesday, October 4, 2011
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Test #1
Tuesday, October 4, 2011
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Test #1
Test #2
Tuesday, October 4, 2011
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Banner advertising
• Simple hyperlinked image shown on web sites.
• Link takes visitor to a landing page.
• AT&T advert was one of the first sold in 1993.
Tuesday, October 4, 2011
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Banner adverts
• Image or animation displayed on a web site for advertising purposes
• Static or interactive• Can expand on
mouse-over or when clicked on
Tuesday, October 4, 2011
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Standard banner sizes
Note: these banners are in proportion, not the actual size.
Tuesday, October 4, 2011
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Advertising evolves with technology
Tuesday, October 4, 2011
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Advertising evolves with technology
• Today can include sound and video
Tuesday, October 4, 2011
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Advertising evolves with technology
• Today can include sound and video• Far more interactive
Tuesday, October 4, 2011
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Advertising evolves with technology
• Today can include sound and video• Far more interactive• Technology allows banners to expand over a page
Tuesday, October 4, 2011
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Advertising evolves with technology
• Today can include sound and video• Far more interactive• Technology allows banners to expand over a page
• Adverts can be placed in videos
Tuesday, October 4, 2011
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Pop-ups and pop-unders
http://www.amazon.com/gp/product/B00167G76W/ref=dm_dp_trk6livepage.apple.com
Tuesday, October 4, 2011
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Map advertising
• Advertising within online mapping solutions
Tuesday, October 4, 2011
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Rich media allows for rich content
One banner can have Video Tour schedule Downloads Link to web site
interaction
Tuesday, October 4, 2011
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The art of Retargeting
Tuesday, October 4, 2011
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Tuesday, October 4, 2011
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Center for Management Development
Retargeting gone wrong, lol
Tuesday, October 4, 2011
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What do the numbers say?
+
Tuesday, October 4, 2011
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What do the numbers say?
+
Tuesday, October 4, 2011
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What do the numbers say?
%249
Tuesday, October 4, 2011
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Center for Management Development
Measuring online interest:
Traffic-Driving Tactic Proxy MetricSearch Engine Marketing •Paid Search Ranking
•Traffic (# of clicks) from paid search placements•Sales from paid search placements•Cost per click (CPC) & resulting cost per order (CPO)
Affiliate Marketing •Traffic (# of clicks) from affiliates•Resulting sales originating from affiliate links
Organic Traffic •# visitors who directly type in brand URL•Organic search engine ranking•Traffic (# clicks) from organic search•Resulting sales originating from organic traffic
Remarketing / Retargeting •# / % of retargeting pool able to reach•Traffic (# of clicks) from remarketing ads / emails•Sales from remarketing ads / emails•CPC & CPO
Tuesday, October 4, 2011
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engagement
• Adverts placed that require a user to initiate the advert
• Adverts placed in video and on social media applications
• Relatively new and untested
Tuesday, October 4, 2011
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In-Game advertising
Tuesday, October 4, 2011
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Wallpaper advert
• Changes the background of a web page• Usually is not clickable• Used for branding
Tuesday, October 4, 2011
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Tuesday, October 4, 2011
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Interactive Banners
Tuesday, October 4, 2011
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Branded applications
Tuesday, October 4, 2011
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1Advantages
Tuesday, October 4, 2011
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2Advantages
Tuesday, October 4, 2011
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3Advantages
Tuesday, October 4, 2011
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1Disadvantages
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Disadvantages
2Tuesday, October 4, 2011
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Disadvantages
3Tuesday, October 4, 2011
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Ad servers and Advertising networks
Publisher’s server
Ad server
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Tell viewers what to do: Call to Action
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Ad Servers
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Benefits of ad servers
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Benefits of ad servers
• Adverts maintained and updated through a central location
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Benefits of ad servers
• Adverts maintained and updated through a central location
• Advert performance reporting
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Benefits of ad servers
• Adverts maintained and updated through a central location
• Advert performance reporting
• Sophisticated targeting
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Benefits of ad servers
• Adverts maintained and updated through a central location
• Advert performance reporting
• Sophisticated targeting• Tracking across many web sites
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Benefits of ad servers
• Adverts maintained and updated through a central location
• Advert performance reporting
• Sophisticated targeting• Tracking across many web sites• Retargeting
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Advertising Network
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Networks offer• Frequency capping
– Limit times advert is seen by a user
• Sequencing
– Show adverts in a given order
• Exclusivity
–No competitor adverts are shown
• Roadblocks
– All the inventory on a pageTuesday, October 4, 2011
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Publishers place unsold inventoryAdvertisers bid for inventoryBids are placed based on
Audience profile Space
Advertising exchanges
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Advertising exchanges
Image credit: http://blog.contextweb.com/contextual/vocabulary-gone-wild-or-what-is-a-true-advertising-exchange
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Tracking• Impressions• Click-throughs• Connection type
• Browser• OS• Time of day• ISP
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Photo credit: http://flickr.com/photos/71217725@N00/
Cookies
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Cookies are text files
• Small text files saved on user’s computer
• Allow a website to capture information about user behaviour
• Can be set on advert impression
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Tuesday, October 4, 2011
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Tuesday, October 4, 2011
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http://awards.playballoonacy.com/
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http://202.218.121.130/2008/axewakeupservice/en/
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http://www.bannerblog.com.au/2007/12/sixt_ascii_text_ads.php
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http://skittles.com/chatter.htm
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• http://video.google.com/videoplay?docid=-6739710473912337648&pr=goog-sl
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Viral Marketing
“Viral Marketing isthe conscious and strategic
enhancement of word-of-mouthto promote a product, service or idea.”
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http://theinspirationroom.com/daily/2005/ikea-elite-designers/
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Buzz Spreads Via Blogs and E-mail
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http://kungsgrillen.se/machines/
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http://www.777interactive.jp/awards/2008/bravia/e/
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Tuesday, October 4, 2011
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Center for Management Development
Attention
Interest
Desire
Action
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Center for Management Development
Measuring online customer desire:
Investigation-Driving Tactic
Proxy Metric
Homepage versioning •Homepage bounce rate for different target segments•Click-through to other key parts of site
Multivariate testing Best-performing combination of variables that leads to maximum click-through to other key parts of site
Site Search •# of site searches per month•Tracking of top search terms
Online Ratings & Reviews •# of visitor reviews / comments•Content of comments (positive / negative)•Click-through to other key parts of site
Online product demos •# of site visitors who use the demo•Length of time spent with demos•Subsequent click-through to shopping pages
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107
Center for Management Development
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Center for Management Development
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
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Center for Management Development
Generating Action: Closing the Sale
• Ecommerce– Total Site conversion rate
• Getting prospects from their entry page to check-out confirmation – Upper funnel conversion rate
• Getting prospects from shopping pages to the shopping cart– Lower funnel conversion rate
• Getting prospects from shopping cart to check-out confirmation
• Retail Sales– Cross-channel conversion rate
• Getting prospects to make an in-store purchase after doing online research and comparison shopping
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Center for Management Development
Confidential and Proprietary Information of Virgin Mobile USA, L.P. 34
Total Site Conversion Rate % = # of Online Sales Orders # of Prospect Visitors to website
Total Conversion can be split into two steps:
Upper Funnel Conv %= # of Prospects who add Items to Shopping Cart # of Prospects who display shopping behavior
Lower Funnel Conv %= # of Completed Purchases # of Prospects who add Items to Shopping Cart
Source: Compete, Inc., VMU 2007 Q3 Readout
Ecommerce Conversion Rate
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Center for Management Development
Ecommerce: Upper Funnel Conversion
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Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
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Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Product Information
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Product Information
Pricing Strategy
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Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Product Information
Pricing Strategy
“Buy Now” experimentation
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Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Product Information
Pricing Strategy
“Buy Now” experimentation
“Buy Later” options
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Product Information
Pricing Strategy
“Buy Now” experimentation
“Buy Later” options Social Commerce
apps
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Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Product Information
Pricing Strategy
Live Chat
“Buy Now” experimentation
“Buy Later” options Social Commerce
apps
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Product Information
Pricing Strategy
Returns policy
Live Chat
“Buy Now” experimentation
“Buy Later” options Social Commerce
apps
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Product Information
Pricing Strategy
Returns policy Shipping policy
Live Chat
“Buy Now” experimentation
“Buy Later” options Social Commerce
apps
Tuesday, October 4, 2011
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Center for Management Development
Great Product detail example
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Center for Management Development
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Center for Management Development
Ecommerce: Lower Funnel Conversion
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Center for Management Development
Ecommerce: Lower Funnel Conversion
“Checkout” experimentation
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Lower Funnel Conversion
Returns policy
“Checkout” experimentation
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Lower Funnel Conversion
Returns policyShipping
policy
“Checkout” experimentation
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Lower Funnel Conversion
Returns policyShipping
policy
Live Chat“Checkout” experimentation
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Lower Funnel Conversion
Returns policyShipping
policy
Live Chat“Checkout” experimentation
Alleviate security &
privacy concerns
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Lower Funnel Conversion
Returns policyShipping
policy
Live Chat“Checkout” experimentation
Stock urgency
Alleviate security &
privacy concerns
Tuesday, October 4, 2011
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Center for Management Development
Ecommerce: Lower Funnel Conversion
Returns policyShipping
policy
Live Chat“Checkout” experimentation
Payment options
Stock urgency
Alleviate security &
privacy concerns
Tuesday, October 4, 2011
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Augmented Reality
http://www.youtube.com/watch?v=b64_16K2e08&feature=related
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Summary
• Achieve Web marketing goals– Use principles of marketing strategy – Use the four Ps of marketing– Product-based marketing strategy – Customer-based strategy– Web enables companies to mix strategies
• Market segmentation works well on the Web• Online advertising
– More intrusive since introduction• Various types available
Electronic Commerce, Ninth Edition 85
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Next Week
• Guest Jean Francois, Web Analytics • Send me the report to web CT by October 15th• Read chapter 4
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