The Internet

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The Internet Marketing Communication
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Course plan 2

• Session 4
• Marketing communication tools on the Internet
  characteristics, strengths and weaknesses
  
• Case presentations and discussions
• Integrating online and offline marketing
  communication
  
• Literature
• Doherty, C. Sheenan, K. B. Re-Weaving The
  Web Integrating Print And Online
  Communications. Journal of Interactive
  Marketing, Vol. 15, No. 2, Spring 2001 47-59.
• Briggs, Krishnan Orbin Integrated Multichannel
  Communication strategies Evaluating the return
  on marketing objectives the case of the 2004
  Ford F-150 launch. Journal of Interactive
  Marketing, Vol. 19, No. 3, Summer 2005.

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From last week
4
Standardizing or localizing marketing
communication activities on the Internet
Pros and cons of standardizing/localizing
marketing
communication in general?
and
Pros and cons of standardizing/localizing online
marketing
communication?
Standardization
Localization
?
5
Article What is the best global strategy
Note that the article takes an e-business approach

• Companies are learning that cross-national
  differences pose great challenges to the simple
  global model of international operations.
  
• Companies all over the world are waking up to a
  harsh reality In the electronic era, national
  boundaries do matter tremendously. Businesses
  are finding it hard to service the global
  e-market as if it were of one piece.
• Yahoo! operates 22 country-specific portals in 13
  languages.
  
• Although current technological, economic, and
  demographic changes give some credence to
  Levitts view, it is not at all clear that a
  global strategy always delivers the highest
  profits.
• In fact, depending on the nature of the product
  and the industry, local adaptation may be a
  better way of making money.
  
• The CEO of macys.com, for example, observed, As
  soon as we launched our site, 15 percent of our
  traffic was international (Leibs 2000). Yet the
  firm did not have a system in place to fulfill
  foreign orders.

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Article What is the best global strategy

• Globalization and the Net are not simply and not
  always about standardization and homogenization.
  
• STOP Dont the basic ideas/advantages of the Net
  work against standardization/homogenization?
  Think of targeting, customizing, building
  relationships, personalization..
• STOP The article deals with e-marketing/e-commerc
  e not e-marketing communications. Does that
  influence our discussion?
  

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Article What is the best global strategy

• Some of the main dimensions along which national
  Internet markets differ
  
• Dimension Examples Relevant for..
• Infrastructure Intl bandwith Browsing speed,
  site design
  
• Dominant visual interface Overall strategy,
  site design
  
• PC, TV set, mobile phone
• Cost of internet use Market potential and
  segmentation, site design.
  
• Geographical distance Distribution and
  restocking Fulfilling intl orders accurately
  
• logistics and in time.
• Language Search engines and directories Making
  buyers aware of your
  
• are local and language specific existence
• Marketing always takes place Encouraging
  buyers to like you
  
• in the buyers language
• Contractual minutiae Keeping buyers happy.

Relevant in a marketing communication context?
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Article What is the best global strategy

• Some of the main dimensions along which national
  Internet markets differ
  
• Dimension Examples Relevant for..
• Buyer behavior Differences in taste
  and Merchandise selection and
  
• preferences stocking
• Lack of a culture of B2C of durables and
• catalogue sales non-durable.
• Differences in holiday dates Occasion-based
  B2C sales
  
• (e.g. Mothers day)
• Price elasticity of demand Market
  segmentation in B2C
  
• User demographics Proportion of women users B2C
  of healthcare goods
  
• Proportion of urban users Distribution
  logistics
  

Relevant in a marketing communication context?
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Article What is the best global strategy

• Some of the main dimensions along which national
  Internet markets differ
  
• Dimension Examples Relevant for..
• Payment systems Means credit cards,
  COD, Making sure you get paid
  
• bank transfers
• Legal cultural norms Making sure your
  buyers get
  
• regarding credit get what is customary
• Security B2C
• Currency Quoting prices B2C, auctions
• Order payment lag Exchange rate risk
  exposure
  
• Reputation Location of web site B2C, B2B,
  infomediaries,
  
• auction sites
• Origin of products or B2C of branded goods
  and
  
• services being sold services B2B key
  supplies.

Relevant in a marketing communication context?
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Article What is the best global strategy

• ...the Net poses a litany of cross-border
  challenges to firms that intend to use it as a
  new instrument for doing business
  internationally.
• Fortunately, many of these challenges are not
  new. Companies bumped into national peculiarities
  long before the Internet age, and their successes
  and failures can offer guidance in online
  markets.
• No general recipes can proposed, but one can
  certainly think analytically about the demands
  for local adaptation that the nature of the
  product or service will place on the firms
  efforts to generate international sales and
  fulfill them profiably.
• Understanding the relative importance of local
  responsiveness and global integration lies at the
  core of a successful global strategy for any
  firm, including e-companies.

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Article What is the best global strategy
The model in the text doesnt work 100
Global Internet strategies according to nature of
good or service being sold
High
Local responsiveness
Low
Low
High
Global integration
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Text Cultural Differences in the Online Behavior
of Consumers

• This article reports on an experiment comparing
  the reactions of online consumers in the U.S. and
  Hong Kong to Web sites of several global
  automobile manufacturers.
• Participants Upper-level undergraduate students
  studying business subjects..
  
• Unlike traditional stores, many firms on the Web
  are addressing different cultural audiences
  simultaneously.
  
• Barber and Barde argue the success of a global
  interface may only be achievable when the
  interface design reflects the cultural nuances of
  the target audience. The contend that culture and
  usability intertwine into a single entity
  culturability where cultural preferences and
  biases affect the degree of user friendliness of
  an interface such as background color, graphics,
  and spatial orientation.

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Text Cultural Differences in the Online Behavior
of Consumers

• The experiment based on two identical experiments
  (U.S HK). In each experiment, every subject
  performed three tasks
  
• 1. Completed a short survey regarding general
  use of the Net
  
• Four factors identified in both groups social
  communication, E- commerce, Hobby, Information
  search.
  
• 2. Visited the Web site of an automaker and
  related vehicle model
  
• 3. Completed a follow-up survey designed to
  capture participants reactions to the Web
  sites.
  

Could you do this? Would it be interestingor
even relevant today?
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Text Cultural Differences in the Online Behavior
of Consumers

• General findings
• U.S. subjects information search and
  e-commerce
  
• HK subjects social communication and hobby
  activities
  
• web interface designers might consider providing
  Web sites targeted to U.S. consumers with
  efficient information search while providing HK
  Chinese consumers a virtual community-like
  environment.
• Findings based solely or largely on U.S. data may
  not be valid globally.
  
• Barber and Badre suggest the use of cultural
  markers or interface design elements and
  features that can signify a cultural affiliation.
  For example CNN uses cultural icons (such as
  national flags) and cues to attract visitors.

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This week!!!
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Integrating

• Integrated marketing communication IMC - is of
  course not a new phenomenon.
  
• One of the first definitions according to Belch
  Belch (and developed by the American Association
  of Advertising Agencies)
  
• a concept of marketing communications planning
  that recognizes the added value of a
  comprehensive plan that evaluates the strategic
  roles of a variety of communication disciplines
  for example general advertising, direct response,
  sales promotion, and public relations and
  combines these disciplines to provide clarity,
  consistency, and maximum communications impact.
• An integrated approach considers all encounters
  that consumers have with a marketer and the
  marketers products or services as brand
  contacts or information-bearing experiences.
  (Sheehan Doherty, 2001)

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Article Re-Weaving The Web Integrating Print
And Online Communications

• IMC advantages (Sheehan Doherty, 2001)
• Saves time and money and improves the firms or
  organizations ability to protect the integrity
  of the product or service.
  
• Leads to creative integrity and consistent
  messages.
  
• Media choices are optimized.
• The whole is greater than the sum of the
  individual components.
  

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Article Re-Weaving The Web Integrating Print
And Online Communications

• IMC
• IMC is a matter of degree and compromise.
• You might have to give up some of the
  advantages of some of the individual marketing
  communications tools used in an IMC approach.
  
• Dont integrate blindly explore opportunities
  for integration.
  
• Maybe the objective of the TV-commercial is to
  create awareness and the
  
• objective of the pop-up is registration
  integration can be difficult.
  
• There are several barriers to successful IMC in
  practice
  
• - different people/departments/companies
  involved. E.g. ad agency, web developer,
  in-store specialist, PR agency.
  
• - the complex nature of IMC.
• - creative idea doesnt travel. Perhaps is
  was developed with just one medium in mind.
  

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Article Re-Weaving The Web Integrating Print
And Online Communications

• IMC
• Two levels of integration (generally speaking)
• 1. Strategic Concept of thought the
  identification of the overall communciation
  objective and the planning of a overall
  communication campaign. In other words (1) an
  overall strategy covering all media etc (2) one
  campaign, one goal, one idea, one strategy etc.
• 2. Tactical Visual elements, verbal elements.
  E.g. logo, product pictures, slogan, copy,
  spokesperson etc.
  

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Article Re-Weaving The Web Integrating Print
And Online Communications

• However, Keller (1996) specifically warns
  against only integrating tactics without also
  integrating strategy.
  
• Tactical integration only is not true
  integration.
  
• Doesnt have to include offline and online.
  Relevant to talk about e.g. integration of all
  online tools in connection with an 100 online
  approach.

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Cross-Channel Branding

• Your brand should enjoy synergy across a range
  of passive and interactive media. For example,
  
• If you use television, a passive channel, you
  could use the medium to direct your audience
  toward an interactive medium, such as the store.
  
• Then, make sure the in-store promotion harnesses
  the traffic generated by TV. If it doesnt,
  failure occurs and synergy is lost.
  
• If you run a radio promotion, use that medium to
  push your audience traffic toward, for example,
  your Internet site, which enables interaction
  between your brand and its audience.
• Use print media to encourage interaction via the
  mobile phones SMS service, enabling another form
  of consumer interactivity.
  
• (Martin Lindstrøm, www.clickz.com, 21 May 2002)

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Courting Customers Across Channels

• An integrated multimedia campaign - American
  Express U.S. Open
  
• Television
• Print
• Outdoor
• Interactive taxis with touch screen computer
  for up-to-date information
  
• Non-taxi-riding fans can get Amex sponsored
  up-to-date info. via phone,
  
• fax, online microsite, email or SMS
• 3 days before tournament street teams handed out
  tennis balls with Amex logo and URL
  tennisanyone.org where you could win tickets
  etc.
• From microsite (not tennisanyone.org) you could
  download tennis game for PDAs.
  
• Every day microsite detailed celebrity sightings
  for those not into tennis
  
• (Pamela Parker, www.clickz.com, 30 August 2002)

Please, suggest other media for this integrated
campaign
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Text Integrated Multichannel communication
strategies F-150

• a text about marketing productivity
• marketingis moving from passive communication
  strategies to integrated multichannel interactive
  marketing strategies. (p. 82)
  
• we will explore the effectiveness of
  multichannel marketing campaigns (p. 82)
  
• Savvy corporations are using online media by
  integrating their use with mass media campaigns
  and leveraging the interactive capabilities of
  the online medium, something that the mass media
  cannot offer. (p. 83)

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Text Integrated Multichannel communication
strategies F-150

• A massive campaign see page 83 column two at
  the bottom amazing (p. 83)
  
• Measuring the effectiveness (ROMO
  Return-on-marketing-objectives) was
  importanthistorically Ford had not been good at
  this (p. 84) I.e. answering questions about
  whether money could have been spent more
  effectively elsewhere.
• based on the standard brand metrics (see p. 85
  86), the campaign appeared successful, but Ford
  was interested in new measures that would
  demonstrate marketing productivity and allow them
  to determine the relative values of different
  media (p. 86)
• While nearly 90 of the budget was spent on
  television, it was clear that better ROMO was
  coming from magazines and online advertising (p.
  86)
• compared to the three other advertising
  elements (magazines, online in markets
  advertisements, and online roadblock ads), TV is
  not very cost efficient. The implication of this
  is a rethinking of the marketing mix. (p. 87)

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Kelloggs Real Fruit Winders

• Real Fruit Winders?

• A fruit snack roll
• Contains over 65 real fruit
• No artificial colours or flavours
• 4 flavours orange, blackcurrant, strawberry and
  apple (post launch)

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Kelloggs Real Fruit Winders

• Background

• Similar products (fruit juice based snack) in
  USA generating a 450m market
  
• Kids confectionary market in the UK is 500m and
  growing 5 pa
  
• 1st launch of non-cereal based product from
  Kelloggs UK
  
• Key target audience is children 10 - 12 years
  old tweens
  
• Most successful launch strategies for similar
  products include
  
• Kid appeal
• Mums reassurance

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Kelloggs Real Fruit Winders

• Business objectives

• By end of 2003
• 17 HH penetration
• Become top 10 kids snack

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Kelloggs Real Fruit Winders

• Communications objectives

• Create awareness of RFW prior to product launch
  so that there is pent up demand
  
• Deliver maintain excitement post launch
• Position as snack that is cool and fun
• Reassure mums
• Contains over 65 real fruit
• No artificial flavours
• From Kelloggs

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Kelloggs Real Fruit Winders
Insight

• 1. Research shows that
• - interactivity and communicating with each
  other is at the heart of play for kids 10 -
  12 years olds
  
• - very media literate
• 2. Talking to kids in inappropriate fashion is
  sure fire way to blow credibility
  
• and lose kids interest
• 3. To be relevant, it must be discovered by kids,
  evolved by kids and owned by
  
• kids (online away from parents)

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Kelloggs Real Fruit Winders

• The big idea

Tap into the interactive nature of the product
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Kelloggs Real Fruit Winders

• Strategy
• Develop an underground language (Chewchat)
  based on symbols
  
• Allow Kids (early adopters) to discover Chewchat
  on their own - away from adults.
  
• Spread Chewchat via word of web - - the
  perfect medium for tweens.
  
• Introduce Chewchat with no Kelloggs branding or
  product information
  
• Link Chewchat with product interaction/consumptio
  n
  
• As Chewchat takes off, introduce product detail
  via characters and Kelloggs
  
• branding
• Drive volume with TV advertising

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Kelloggs Real Fruit Winders

• Phase I pre-launch seeding

• December January 2001
• Emergence of secret language called chewchat. No
  fruit - - just language
  
• Launch of unbranded site called chewchat.com
• The symbols started to appear in an ad-hoc
  fashion with links to the chewchat site.
  
• Merchandise
• Distribution of unbranded stickers
• Playground leaders
• Kids magazines

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Kelloggs Real Fruit Winders

• Chewchat

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• Phase II product launch

• January - March 2001
• Introduce Chewchat Gang, terrified fruit and
  Kelloggs branding
  
• On pack - back of pack, discs and wax paper comic
  strips
  
• Online - Chewchat.com site revamped
• E-card sent out from Kelloggs database with
  link back into Chewchat.com
  
• Characters appear on 3rd party sites (digital
  media packs)
  
• Local/National PR stunts

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Phase III launch

• April June 2001
• Games on site
• Updateable screen saver (Chat Pads) allows you
  to automatically receive
  
• online comic strips and chewchat messages
• 30 new Chewchat symbols online
• Build awareness big fast amongst mums and kids
  of RFW via TV
  
• (having established kids credibility via
  Chewchat)
  

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The games
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Results - communications

• PR coverage included free airtime on prime
  Saturday morning kids TV
  
• 4,215,471 hits and 894,306 page views (Nov 00 -
  Aug 01)
  
• Over 128,000 unique visitors spending on average
  5mins on site
  
• Third party sites, e.g. Diggit, enjoying click
  through rates that are 48 times higher
  
• Stock sold out in 4 weeks (delaying the TV
  advertising launch)
  
• Achieved awareness among 59 of kids
• 61 of mums claim to be using RFW as a treat
  thats better than sweets
  
• Kelloggs now own much more than a product -
  they own an idea (think Pokémon)

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Results - business

• HH penetration is 32 (17)
• Repeat rates of over 50
• After one year, RFW is worth 21.m (18m)
• Outsold Nestles Smarties and Rowntrees Fruit
  Pastilles
  
• In 10 months, Fruit Winders became a Top 15
  confectionery brand

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In groups, please discuss
Strengths? Weaknesses? An integrated campaig
n? Synergies across all media? The role of t
he internet
The campaign without the internet?