E-Promotion

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E-Promotion

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Promotion

• A process whereby information about the
  organizations product or service is encoded into
  a promotional message for delivery to the
  customer.
• A mechanism for communicating information to
  customer.
• Ex free product money-off coupons .

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Promotion The Product Life Cycle

• Introduction Education of potential customers
  building of market awareness.
• Growth Expansion of awareness simulation of
  repeat purchase.
• Maturity Defense against competitor activities
  price competition.
• Decline Alternative to price reduction.

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E-promotion

• Companies need to re-examine carefully the aims
  of the sales force strategy ,implementing
  revisions where these are required.
• The role of the sale force consulting,
  assisting guiding the customer to make the
  optimal purchase decision most suited to their
  specific needs.
• Causing the emergence of 2 product categories
• Commodity sales (based mainly on price)
• Complexity sales (need 1-to-1 interactive
  discussion, like complex investment portfolio )

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Internet Communications Mix

• Facilitate 2-way communication.
• As complementary to other media channels such as
  TV or magazine advertising.
• Mix of personal selling broadcasting
  advertising.
• Evolution of a customer purchase behavior model.

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Buying decision process Phases

• Attracting website visitors.
• Making contact with interested individuals.
• Converting some visitors into customer.
• Supporting the purchase.
• Post-purchase .
• Internet moves customers through these phases.
• Assess the effectiveness of the website from the
  individuals progress through each phases.

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Unique characteristics

• Greater extent of product or service than other
  media.
• Relatively easy inexpensive presence.
• The same access opportunity for all firms.
• Size of each company s voice is uniform.
• No virtually barriers to entry.

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Banner Advertisement

• A small insertion on a website, communicating a
  brand name, a simple benefit message and/or web
  address.
• Increase brand awareness strengthening brand
  loyalty.
• Response to banner
• Any innate tendency to click on banners.
• The immediate relevance of the product to the
  audience.
• Any pre-existing appeal of the brand or company
  name.

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Large company Internet

• Most Internet visitors are not interested in
  searching out unusual, lesser known products
  located on very small websites.
• Because the average customer is
• too busy to spend time running on-line searches
  .
• Unwilling to risk the probability of purchase
  dissatisfaction .
• Reducing the ability of small firm to establish
  viable on-line business.
• Ex IBM Ford.

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Internet measurement Issues

• Ability of website servers to collect data about
• Visitors number
• Time spent on-site
• Information reviewed by the visitors
• These data give greater understanding of site
  visitors behavior demographics.
• Use IP addresses for measurement.
• Cache problem ,use back button.
• The page received actually read.

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Internet 2 measures

• Reach Frequency.
• Internet provides very high level of reach.
• Reach varies by type of site
• Game sport sites low reach high frequency
  level( regular repeat users ) .
• Search engines service sites (travel sites) high
  reach low frequency .
• Click-through instead of impressions.

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Internet trends

• From very simple text graphics to high-grade
  graphics with audio interactive capabilities.
• US Match 3 website enter a sweepstake.
• Gap try out mixing matching clothes on-line.
• ( editorial advertising )
• Toyota Lexus video clips of various model.
• Sony pictures new film Muppets from Space.
• US womens site Ford asks visitors to design
  their dream car. (sponsorship)

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Promotional Planning

• Promotional situation review
• To determine the effectiveness of the current
  promotional activities.
• Future Promotional Aims Objectives
• Be used in the preparation of future promotional
  budgets.
• Promotional budgeting.
• Program implementation evaluation.

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Reference

• Ian Chaston (2001),Electronic Marketing, Mc
  Graw-Hill, Chapter 8,
• E-Promotion.