Marketing Communications on the Internet Chapter 6

1
Marketing Communications on the Internet
(Chapter 6)

• Integrated Marketing Communications
• Promotional Mix
• The Internet as a Communication Medium

2
One-Way Versus Two-Way Communication Process
One-Way Communication Process
noise
noise
decode
encode
Sender
Receiver
Messages via medium
feedback
Two-Way Communication Process
Messages via medium
decode
encode
noise
noise
Receiver-sender
Sender-receiver
decode
encode
Messages via medium
3
Integrated Marketing Communication

• purpose
• to establish and strengthen profitable
  relationships with customers and other
  stakeholders
• overall communication goal
• to coordinate all marketing messages to create a
  unified image of the organization and its
  products
• promotional goal
• communication of products key benefits to
  consumers to influence them to buy

4
IMC (Promotional) Mix

• Elements of the IMC Mix
• advertising
• sales promotion
• personal selling
• public relations/publicity
• IMC objectives
• build brand equity
• provide information
• stimulate demand and build sales
• differentiate products
• influence perceptions, attitudes, and behavior

5
Push vs. Pull Strategies
Pull Strategy
Push Strategy
Manufacturer
Manufacturer
Wholesaler
Wholesaler
Retailer
Retailer
End consumer
End consumer
6
Advertising

• Definition
• any paid form of nonpersonal presentation and
  promotion of ideas, goods, or services by an
  identified sponsor
• Purposes
• make consumers aware of product
• influence consumers to buy
• inform consumers about product benefits
• maintain product visibility over time
• build/sustain image of the product/company

7
Banner Advertising

• Evolution of Banner Ads
• first stage - click here messages with
  hyperlinks to the advertisers site
• second stage - banners with movement to capture
  attention
• third stage - interactive approaches, including
  games, menus, check boxes, and search boxes
• fourth stage - transactional approach that uses
  software that allows user to remain at the
  original site
• Key Question - How effective is the banner?

8
Advertising on the Internet

• Advantages
• Audience can get involved in the message
• Many creative possibilities
• Can deliver lengthy, complex messages cost
  effectively

• Disadvantages
• Limited media research available
• Limited but growing audience

9
Sales Promotion

• Definition
• a short-term incentive or direct inducement to
  sell the product by offers of extra value
• Advantages
• a tangible form of promotion - forcing the
  consumer to act (usually quickly)
• consumer receives actual savings of money
• can be directed at specific market segments
• Disadvantages
• consumers come to expect such promotions
• firms focus is on short-term results

10
Sales Promotions on the Internet

• Advantages

• Disadvantages

11
Public Relations

• broad, overall non-paid communication to
  influence many groups attitudes and create good
  toward the organization
• PR activities are designed to
• build/maintain a favorable image for the
  organization
• build/maintain a favorable relationship with
  customers, prospects, stockholders, employees,
  community, government

12
Public Relations

• Types
• participation in community service events
• sponsorship of special events
• publicity
• Objectives
• raise awareness
• inform and educate
• build trust and understanding

13
Public Relations via the Internet

• Advantages

• Disadvantages

14
Personal Selling

• Definition
• direct face-to-face presentation to potential
  buyers
• Advantages
• greater flexibility
• focus on prospective customers
• often results in actual sale
• Disadvantages
• high cost
• hard to attract the right person for the sales
  job
• by definition, not possible on the Internet

15
Personal Selling

• Salesperson Responsibilities include
• explaining product benefits
• demonstrating proper operation of products
• answering questions and responding to objections
• arranging terms of the sale
• following up on sale to ensure buyer satisfaction

16
Personal Selling using the Internet

• Advantages

• Disadvantages

17
Strengths and Weaknesses of Major Media
Exhibit 6-4