Class Discussion Notes MKT 390 401

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Class Discussion Notes MKT 390 - 401

• February 27, 2001

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E-Marketing Communication

• Broadcast media
• Network TV
• Strengths
• Reach
• Multimedia
• Good quality
• Emotional appeal
• Helps with branding
• Low CPM
• Demographic targeting
• Easy to measure
• Weaknesses
• Passive viewing
• Message length
• Geographic markets
• Expensive

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E-Marketing Communication

• Broadcast media contd
• Radio
• Strengths
• Reach
• Inexpensive
• Good local markets
• Promotions
• Immediate
• Easy to measure
• Weaknesses
• Passive viewing
• Message length
• Low recall
• Not emotional

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E-Marketing Communication

• Narrowcast media
• Cable TV
• Strengths
• Targeted
• Inexpensive
• Flexible message length
• Good quality
• Multimedia
• Weaknesses
• Markets fragmented and small
• Low status
• Difficult to measure

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E-Marketing Communication

• Pointcast media
• Internet
• Pagers
• Cell phones
• FAX
• Strengths
• Targeted
• Relatively easy to measure
• Flexible message length
• Delivery timing
• Interactive
• Weaknesses
• User control

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E-Marketing Communication

• Print media
• Newspapers
• Strengths
• Good local coverage
• Easy to measure
• Inexpensive
• Immediate
• National papers good for branding
• National papers have good pass-along readership
• Weaknesses
• Poor quality
• Hasty reading
• Not creative
• National papers have low penetration

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E-Marketing Communication

• Print media - contd
• Magazines
• Strengths
• Targeting
• Good quality
• Easy to measure
• Promotions
• Good pass-along readership
• Weaknesses
• High CPM
• Inflexible timing
• Low circulation
• Markets fragmented and small

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E-Marketing Communication

• Print media - contd
• Direct mail
• Strengths
• Highly selective targeting
• Personalization
• Flexible message content and timing
• Easy to measure
• Promotions
• Weaknesses
• Low image
• High cost of production and distribution

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E-Marketing Communication

• Audience measurement
• Hits
• A file requested from a Web site
• Weaknesses
• Inflated numbers
• Page views
• Single access to a URL
• Strengths
• Better than measuring hits
• Weaknesses
• Page construction can lead to inflated numbers
• Repeat visit measurement

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E-Marketing Communication

• Audience measurement contd
• Visitors
• Strengths
• Avoids site design issues
• Weaknesses
• Repeat visit measurement
• Solution measure unique visitors
• Usually done over a period of time
• Stickiness
• Measures length of stay
• Strengths
• Easy to measure
• Site log files

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E-Marketing Communication

• Audience measurement contd
• Impressions
• Number of times an ad was served
• A digital asset must be seen one time by an
  individual user
• Link
• Button
• Icon
• Search keyword
• Graphic
• Image
• Headline
• Banner
• Line of text
• Ad space on Internet sold by number of impressions

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E-Marketing Communication

• Audience measurement contd
• Key words
• Search words at search engine sites which
  generate banner ads
• Strengths
• Highly targeted
• Click-through
• Weaknesses
• Response may be tied to the creative
• Banners enhance brand recognition without
  click-through
• Risky to the media

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E-Marketing Communication

• How to measure
• Consumer-centric model
• Panel of users, randomly selected
• Clickstream data recorded via software on users
  PC
• Advantages
• Statistically reliable
• Data can be demographically segmented
• Allows for comparison among Web sites
• Disadvantages
• Reliable only for larger sites
• Cannot accurately capture business users
• Cannot adequately compensate for deficiencies in
  population sample

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E-Marketing Communication

• How to measure contd
• Site-centric model
• User activity measured by analyzing Web server
  log data
• Thru self analysis
• Thru auditing agencies
• Advantages
• Less expensive than consumer-centric method
• Can measure impressions
• Can measure small sites
• Disadvantages
• Proxy server caching
• Cannot record impressions in these cases
• Cannot distinguish unique visits
• Cannot produce demographic information

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E-Marketing Communication

• Which media to buy?
• Effectiveness
• Reaching the target market
• Needs good audience statistics
• Efficiency
• Reaching the target market at the lowest possible
  cost
• Measured by CPM (cost per thousdand)
• Ad cost / audience size x 1000
• Useful for comparisons across media vehicles
• Consider the audience
• Consider the CPM
• Which media are appropriate
• Consider strengths and weaknesses of media

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E-Marketing Communication

• Which vehicle to buy?
• Portals
• Vertical sites
• Niche sites
• Other considerations
• Click-through
• Conversion rate
• Number of orders / number of visitors
• Cost per click
• Total ad cost / number of clicks
• Cost per order
• Total ad cost / number of orders
• Average order value
• Sales / number of orders