E-Marketing and Advertising Chapter 11 ©2003 Pearson Education Canada Inc.
E-Marketing • The internet represents one component of an overall marketing strategy • E-marketing is the utilization of the internet and electronic technologies to assist in the creation, implementation and evaluation of a marketing strategy • Related to CRM ©2003 Pearson Education Canada Inc.
Strategy Creation • SWOT analysis • Strengths, weaknesses, opportunities and threats • SWOT can help to identify areas of focus • Processes include: • Online research, • User behavior analysis • Advertising planning ©2003 Pearson Education Canada Inc.
Online Research • Secondary data • Not developed specifically for the task at hand, but may be useful in decision making • Reliability is key • Primary data • Information that is gathered to help make a specific decision • More expensive ©2003 Pearson Education Canada Inc.
User Behavior Analysis • Understanding user behavior allows businesses to create marketing and advertising that users will find useful • Online behavior includes: • Search methods • Types of internet usage • Shopping patterns • E-mail usage ©2003 Pearson Education Canada Inc.
Data Collection Methods • Surveys • Experiments • Focus groups • Observation • Market segmentation ©2003 Pearson Education Canada Inc.
Implementation • The internet’s flexibility allows businesses to move from implementation back to strategy • Components of an online strategy • Website design • Online advertising • Affiliate programs • Promotions • Partnerships • Public relations • pricing ©2003 Pearson Education Canada Inc.
Website Design • Brochureware phase • Online version of printed brochures • Interactive phase • E-commerce abilities • Personalization phase • Improves chances of making a sale • Can improve relationship with customer ©2003 Pearson Education Canada Inc.
Domain Names • Good to have a domain name that is close to the company name • The company may have to register more than one name • cybersquatting ©2003 Pearson Education Canada Inc.
Search Engines • In order to be found of the web it is critical that a web site be registered with a search engine ©2003 Pearson Education Canada Inc.
Affiliate Programs • Delivery of customers to a site results in compensation • The affiliate receives compensation if a user purchases a product and the referral address is on the affiliate’s site ©2003 Pearson Education Canada Inc.
Partnerships • Create increased traffic or target specific products and services • Toys “R” Us using Amazon’s e-commerce capabilities ©2003 Pearson Education Canada Inc.
Promotions • Coupons, discounts, contests, points programs and free trials are all easily employed over the web • E-mail that offers discounts • Offers cash for referrals ©2003 Pearson Education Canada Inc.
Public Relations • Creating goodwill or positive company image • Encouraging employees to write articles that are published on the web • Portrays an image of excellence • Usually links back to the company website • May lead to improved brand image, website traffic and sales ©2003 Pearson Education Canada Inc.
Pricing • The internet allows companies to: • Quickly change prices • Offer products to customers at different prices • Multichannel pricing ©2003 Pearson Education Canada Inc.
Online Advertising • Advertising methods online include: • Banners • Interstitials • Superstitials • Interactive tools • E-mail • Multimedia ©2003 Pearson Education Canada Inc.
Banners • Graphical images that include interactive applications • Attract users to click through to another website or sections of the current website • Effectiveness is difficult to measure • Brand recognition • Often use bartering arrangements ©2003 Pearson Education Canada Inc.
Interstitials • Pop-up boxes known as “daughter windows” • One has to pay attention to the window in order to close it ©2003 Pearson Education Canada Inc.
Superstitials • Advertisements which load in a web browser when it is idle • Launches as a daughter window and shows as a TV style ad when user requests a new page ©2003 Pearson Education Canada Inc.
Interactive Tools • Marketers can carry out targeted marketing and branding in several formats ©2003 Pearson Education Canada Inc.
E-Mail • E-mail is an important aspect of online marketing, but can be overused • Important not to be viewed as spam • Users must agree to receiving the mail ©2003 Pearson Education Canada Inc.
Multimedia • Animation, sound and interactivity on a webpage can make it more appealing to users • Must take dial-up users into account ©2003 Pearson Education Canada Inc.
Marketing Strategies • Strengthen brand name • Increase net traffic • Build customer loyalty • Encourage repeat purchases • Relationship to offline? ©2003 Pearson Education Canada Inc.
Evaluation • Advertising success will vary depending on the industry • Some metrics that could be used: • Banner click through rates • View-to-buy ratios • Pricing effectiveness measures • Market share • Revenue growth ©2003 Pearson Education Canada Inc.
Convergence of Technologies • Advertising campaigns must be evaluated for their success across numerous mediums • PCs • PDAs • Cell phones • Web TV ©2003 Pearson Education Canada Inc.