EActive Marketing

1
E-Active Marketing

• Chapter 9

2
Chapter Overview

• Internet has changed U.S. culture
• Global customers, competition
• E-active marketing
• e-Commerce Interactive marketing
• Consumer e-commerce
• Business-to-business e-commerce
• Interactive marketing methods

3
E-Commerce

• Selling of goods and services on the Internet
• More than 50 of U.S. households use e-commerce
• Online sales is 7 of total U.S. retail sales
• E-commerce sites also used for info gathering

4
E-Commerce Components

• Catalog
• Shopping cart
• Payment procedure
• Customer service
• FAQs
• Public relations
• Optional elements

5
Cyber Shopping Categories
6
E-Commerce Incentives
Cyberbait

• Financial incentives
• Convenience incentives
• Value incentives

7
Financial Incentives

• Attract first-time purchaser
• Effective incentives
• Reduced price
• Free shipping
• E-coupon
• Incentives must be meaningful and changed
  periodically
• Reduces costs through
• Lower shipping costs
• Lower labor costs
• Lower personnel costs

8
Convenience Incentives

• E-commerce available 24/7
• Used to obtain product information
• Update and change Web site
• Easy to locate merchandise
• Convenience services
• Wedding registries
• Popular items
• Measurement charts

9
Concerns About E-Commerce

• Seller opportunism
• Security issues
• Information privacy issues
• Brick-and-mortar purchasing habits

10
Value-Added Incentives

• Change purchasing habits long term
• Personalized shopping
• Examples
• Merchandise available only online
• Free online courses
• Free information
• Tide stain removal

11
B-to-B E-Commerce

• E-commerce is critical
• Websites hits directly related to advertising and
  sales promotions
• Requires incentives
• Financial
• Convenience
• Value-added
• Online exchanges and auctions

12
Interactive Marketing

• Two-way communications
• Customer involvement
• Tracking of Internet activities
• Personalize targeted

13
Online Interactive Tactics
14
InteractiveMarketing Objectives

• Branding
• Generate sales
• Drive individuals to the Web site
• Build loyalty
• Generate leads
• Offer incentives, prizes
• Collect personal data

15
Online Advertising

• Increase in online budgets
• Effective method for reaching todays consumers
• Impact shrinking
• Click-through response rate 0.27
• Brand spiraling
• Types of online advertising
• Display or banner ads
• Classified ads
• Search advertising
• Media/video ads

16
Blogs

• Online musings
• Power of online buzz
• 47 go to social networks
• Download coupons
• Search for information
• 45 go to social networks
• Upcoming sales
• Discounts
• 22 read or write a product review on a blog

17
Company-Sponsored Blogs

• Effective?
• Blog visitors spend more
• Online 23 hours/week versus 13
• Benefits
• Communicate! Let customers see who you are.
• Reassure shoppers
• Release company information
• Customers can voice opinion
• Company controls site
• Must be honest
• Identify your company if you contribute
  significantly to a site.

18
Online Social Networks

• Facebook, MySpace, YouTube
• Developing social network presence
• Start profile page
• Accept friend requests
• Specific product page Sprite
• Posting of ads on social networks (Nike)
• Generate word-of-mouth buzz
• Consumer-generated advertising
• 2007 Super Bowl Doritos ad
• Viewed as more genuine
• Contests for consumer-generated ads

19
Consumer-Generated Reviews

• Amazon-com leader
• Retailers online reviews of brands
• Early adopters
• Implications
• Negative reviews, Low ratings
• Consistent quality products
• Information for
• Marketing plans
• Product modifications
• Service strategies

20
E-mail Campaigns

• It is essential to
• Integrate with other marketing channels
• Be based on web analytics
• Combine with future web analytics
• It is beneficial to
• Integrate with Web sites content management
• Integrate with a customer relationship program

21
Newsletters

• E-mail newsletters
• Build brand awareness
• Tie-in and drive web traffic
• Customers newsletters, subscriptions
• Provide value
• Advertising on other newsletters
• Build brand awareness
• Drive web traffic
• Pick newsletters that are relevant

22
Search Engine Optimization (SEO)

• 80 of all web traffic begins with search engine
• SEO process of increasing probability of a hit
• Methods
• Paid search insertion
• Paid search ads
• Future dangers
• Clutter
• Increased costs

23
Viral Marketing

• Message passed from one consumer to another
• E-mail
• Blogs
• Form of advocacy or word-of-mouth endorsement
• Viral marketing messages
• Hyperlinked promotions
• Online newsletters
• Streaming videos
• Games

24
Web Site Design

• Ensure Web site functions properly
• Cost of acquiring a new customer
• E-commerce company ? 100
• Other companies ? up to 500
• Design to meet function, match target market
• Front page often skipped
• Design every page with complete information