E-Active Marketing Chapter 9 Chapter Overview
Description: E-Active Marketing Chapter 9 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
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slide1. E-Active Marketing Chapter 9<br>
slide2. 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<br>
slide3. E-Commerce Selling of goods/services on the Internet
>50% of U.S. households use e-commerce
Online sales is 12% of total U.S. retail sales
E-commerce sites also used for info gathering<br>
slide4. E-Commerce Components Catalog
Shopping cart
Payment procedure
Customer service
FAQs
Public relations
Optional elements<br>
slide5. Cyber Shopping Categories Travel $53B
Office, home, and garden $16B
Computers & accessories $12B
Apparel $12B<br>
slide6. 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<br>
slide7. Convenience Incentives E-commerce available 24/7
Used to obtain product information
Update and change Web site
Easy to locate merchandise
Convenience services
Event registries
Popular items
Measurement charts<br>
slide8. Concerns About E-Commerce Seller opportunism
Security issues
Information privacy issues
Brick-and-mortar purchasing habits<br>
slide9. Value-Added Incentives Change purchasing habits – long term
Personalized shopping
Examples
Merchandise available only online
Free online courses
Free information, household tips<br>
slide10. Interactive Marketing Two-way communications
Customer involvement
Tracking of Internet activities
Personalize targeted<br>
slide11. Online Interactive Tactics Newsletters<br>
slide12. Online Advertising Increase in online budgets
Effective method for reaching today’s consumers
Becoming “standard”
Click-through response rate – 0.27%
Traditional integration - Brand spiraling<br>
slide13. F ig. 9. 8 Types of Online Advertising Display or banner ad
Classified ads
Search advertising
Media/video ads<br>
slide14. Banner Advertising First online advertising
Accounts for 32% of online advertising
Can embed videos and widgets
Targeted display ads
Auction exchanges
Matches audience<br>
slide15. Online Advertising - Rates CPMs will rise more than 75% over next 5 years
Overall growth of online advertising will grow more slowly.
Average CPM will rise from ~$2.66 in 2012 to $4.68 by 2017.
Largely due to “Visible Impression Standard” Source: Advertising Age, October 9, 2012, “Forrester Reduces Its Forecast for Online Spending”<br>
slide16. Online Advertising - Rates Visible Impression Standard:
Advertisers pay only for ads that are visible on the screen.
May mean fewer impressions; offsetting CPM gains.
Online growth rate overall for 2012 ~17%, down from 20% in 2011.<br>
slide17. Classified and Media/Video Advertising Online classified ad popular
Media/video ads fastest-growing format
Mobile phones and hand-held devices
Dwell time, rate higher for video ads<br>
slide18. Blogs Online musings
Power of online buzz
50% go to social networks
Download coupons
Search for information
Upcoming sales
Discounts
22% read or write a product review on a blog<br>
slide19. Company-Sponsored Blogs Effective?
Blog visitors spend more
Online 23 hours/week versus 13
Benefits
Communicate! Let customers see who you are.
Reassure shoppers
Customers can voice opinion
Company controls site
Must be honest
Identify your company if you contribute significantly to a site.<br>
slide20. Online Social Networks Facebook, YouTube, etc.
Developing social network presence
Specific product page – Sprite
Posting of ads on social networks (Nike)
Possible privacy issues
Consumer-generated advertising
“Crowdsourcing”<br>
slide21. 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<br>
slide22. 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 site’s content management
Integrate with a customer relationship program<br>
slide23. 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<br>
slide24. 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<br>
slide2. 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<br>
slide3. E-Commerce Selling of goods/services on the Internet
>50% of U.S. households use e-commerce
Online sales is 12% of total U.S. retail sales
E-commerce sites also used for info gathering<br>
slide4. E-Commerce Components Catalog
Shopping cart
Payment procedure
Customer service
FAQs
Public relations
Optional elements<br>
slide5. Cyber Shopping Categories Travel $53B
Office, home, and garden $16B
Computers & accessories $12B
Apparel $12B<br>
slide6. 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<br>
slide7. Convenience Incentives E-commerce available 24/7
Used to obtain product information
Update and change Web site
Easy to locate merchandise
Convenience services
Event registries
Popular items
Measurement charts<br>
slide8. Concerns About E-Commerce Seller opportunism
Security issues
Information privacy issues
Brick-and-mortar purchasing habits<br>
slide9. Value-Added Incentives Change purchasing habits – long term
Personalized shopping
Examples
Merchandise available only online
Free online courses
Free information, household tips<br>
slide10. Interactive Marketing Two-way communications
Customer involvement
Tracking of Internet activities
Personalize targeted<br>
slide11. Online Interactive Tactics Newsletters<br>
slide12. Online Advertising Increase in online budgets
Effective method for reaching today’s consumers
Becoming “standard”
Click-through response rate – 0.27%
Traditional integration - Brand spiraling<br>
slide13. F ig. 9. 8 Types of Online Advertising Display or banner ad
Classified ads
Search advertising
Media/video ads<br>
slide14. Banner Advertising First online advertising
Accounts for 32% of online advertising
Can embed videos and widgets
Targeted display ads
Auction exchanges
Matches audience<br>
slide15. Online Advertising - Rates CPMs will rise more than 75% over next 5 years
Overall growth of online advertising will grow more slowly.
Average CPM will rise from ~$2.66 in 2012 to $4.68 by 2017.
Largely due to “Visible Impression Standard” Source: Advertising Age, October 9, 2012, “Forrester Reduces Its Forecast for Online Spending”<br>
slide16. Online Advertising - Rates Visible Impression Standard:
Advertisers pay only for ads that are visible on the screen.
May mean fewer impressions; offsetting CPM gains.
Online growth rate overall for 2012 ~17%, down from 20% in 2011.<br>
slide17. Classified and Media/Video Advertising Online classified ad popular
Media/video ads fastest-growing format
Mobile phones and hand-held devices
Dwell time, rate higher for video ads<br>
slide18. Blogs Online musings
Power of online buzz
50% go to social networks
Download coupons
Search for information
Upcoming sales
Discounts
22% read or write a product review on a blog<br>
slide19. Company-Sponsored Blogs Effective?
Blog visitors spend more
Online 23 hours/week versus 13
Benefits
Communicate! Let customers see who you are.
Reassure shoppers
Customers can voice opinion
Company controls site
Must be honest
Identify your company if you contribute significantly to a site.<br>
slide20. Online Social Networks Facebook, YouTube, etc.
Developing social network presence
Specific product page – Sprite
Posting of ads on social networks (Nike)
Possible privacy issues
Consumer-generated advertising
“Crowdsourcing”<br>
slide21. 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<br>
slide22. 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 site’s content management
Integrate with a customer relationship program<br>
slide23. 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<br>
slide24. 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<br>