13 th edition Chapter 6 Ecommerce Marketing and Advertising The Online Purchasing Decision 1 of 2 Five stages in consumer decision process Awareness of need Search for more information ID: 712369
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E-commerce 2017 business. technology. society.
13th edition
Chapter 6
E-commerce Marketing and AdvertisingSlide2
The Online Purchasing Decision (1 of 2)
Five stages in consumer decision processAwareness of needSearch for more informationEvaluation of alternatives
Actual purchase decisionPost-purchase contact with firmSlide3
Figure 6.2: The Consumer Decision Process and Supporting CommunicationsSlide4
The Online Purchasing Decision (2 of 2)
Decision process similar for online and offline behaviorGeneral online behavior modelUser characteristicsProduct characteristics
Website features: latency, usability, securityAttitudes toward online purchasingPerceptions about control over online environment
Clickstream behaviorSlide5
Figure 6.3: A Model of Online Consumer BehaviorSlide6
Trust, Utility, and Opportunism in Online Markets
Two most important factors shaping decision to purchase online:Utility: Better prices, convenience, speedTrust:
Perception of credibility, ease of use, perceived riskSellers develop trust by building strong reputations for honesty, fairness, delivery Slide7
Digital Commerce Marketing and Advertising: Strategies and Tools
Features of Internet marketing (vs. traditional)More personalizedMore participatoryMore peer-to-peer
More communalThe most effective Internet marketing has all four featuresSlide8
Multi-Channel Marketing Plan
WebsiteTraditional online marketingSearch engine, display, e-mail, affiliateSocial marketingSocial networks, blogs, video, games
Mobile marketingMobile/tablet sites, appsOffline marketing
Television, radio, newspapersSlide9
Strategic Issues and Questions
Which part of the marketing plan should you focus on first?How do you integrate the different platforms for a coherent message?How do you allocate resources?How do you measure and compare metrics from different platforms?
How do you link each to sales revenues?Slide10
Establishing the Customer Relationship
Website functions to:Establish brand identity and customer expectationsDifferentiating productAnchor the brand online
Central point for all marketing messagesInform and educate customerShape customer experienceSlide11
Online Marketing and Advertising
Online advertisingDisplay, search, mobile messaging, sponsorships, classifieds, lead generation, e-mailBy 2018, online advertising expenditures will exceed TV advertisingSlide12
Traditional Online Marketing and Advertising Tools
Search engine marketing and advertisingDisplay ad marketingE-mail marketingAffiliate marketingViral marketing
Lead generation marketingSlide13
Search Engine Marketing and Advertising
Search engine marketing (SEM)Use of search engines for brandingSearch engine advertising
Use of search engines to support direct salesTypes of search engine advertisingPaid inclusion
Pay-per-click (PPC) search adsKeyword advertisingNetwork keyword advertising (context advertising) Slide14
Display Ad Marketing (1 of 2)
Banner adsRich media adsInterstitial adsVideo adsFar more effective than other display formats
SponsorshipsNative advertisingSlide15
Display Ad Marketing (2 of 2)
Content marketingAdvertising networksAd exchanges, programmatic advertising, and real-time bidding (RTB)Display advertising issuesAd fraud
ViewabilityAd blockingSlide16
Figure 6.7: How an Advertising NetworkSuch as DoubleClick WorksSlide17
E-mail Marketing
Direct e-mail marketing Messages sent directly to interested usersBenefits includeInexpensiveAverage around 3% to 4% click-throughs
Measuring and tracking responsesPersonalization and targeting
Three main challengesSpamAnti-spam softwarePoorly targeted purchased e-mail listsSlide18
Other Types of Traditional Online Marketing
Affiliate marketingCommission fee paid to other websites for sending customers to their websiteViral marketingMarketing designed to inspire customers to pass message to others
Lead generation marketingServices and tools for collecting, managing, and converting leadsSlide19
Social, Mobile, and Local Marketing and Advertising
Social marketing and advertisingUse of online social networks and communitiesMobile marketing and advertisingUse of mobile platform
Influence of mobile appsLocal marketingGeotargeting
Display ads in hyperlocal publicationsCouponsSlide20
Pricing Strategies (1 of 2)
Pricing: integral part of marketing strategyTraditional pricing based on fixed costs, variable costs, demand curveMarginal costsMarginal revenue
Piggyback strategyPrice discriminationSlide21
Pricing Strategies (2 of 2)
Free and freemiumVersioningBundlingDynamic pricing Auctions
Yield managementSurge pricingFlash marketingSlide22
Collecting Data and Customer Information (1 of 3)
Web Transaction Logs:Built into web server softwareRecord user activity at website
Provides much marketing data, especially combined with:Registration formsShopping cart database
Answers questions such as:What are major patterns of interest and purchase?After home page, where do users go first? Second?Slide23
Collecting Data and Customer Information (2 of 3)
Cookies and Tracking Files:Types of tracking filesCookies Flash cookies
Web beacons (“bugs
”)Tracking headers (supercookies)Other tracking methodsDeterministic cross-device trackingProbabilistic cross-device trackingSlide24
Collecting Data and Customer Information (3 of 3)
Databases:
Enable profiling
Store records and attributesData warehouse: Collects firm’s transactional and customer data in single location for offline analysis by marketers and site managersData mining:Analytical techniques to find patterns in data, model behavior of customers, develop customer profilesSlide25
Marketing Automation and Customer Relationship Management (CRM) Systems
Marketing automation systemsTrack steps in lead generation CRM systemsManage relationship with customers once purchase is made
Create customer profiles Customer data used to:Develop and sell additional products
Identify profitable customersOptimize service delivery, and so onSlide26
Figure 6.10: A Customer Relationship Management SystemSlide27
Marketing Analytics
Software that analyzes data at each stage of the customer conversion processAwarenessEngagementInteraction
Purchase activityLoyalty and post-purchaseHelps managersOptimize ROI on website and marketing efforts
Build detailed customer profilesMeasure impact of marketing campaignsSlide28
Figure 6.12: Marketing Analytics and the Online Purchasing Process