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Week 16 - Internet. High creativity Short lead time to change ads Simplicity of segmentation High audience interest Easy to directly measure impact . Advantages. Disadvantages. Clutter Difficult to buy ad space Reach only computer users Low intrusion value
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Week 16 - Internet • High creativity • Short lead time to change ads • Simplicity of segmentation • High audience interest • Easy to directly measure impact Advantages Disadvantages • Clutter • Difficult to buy ad space • Reach only computer users • Low intrusion value • Hard to retain interest of surfers
Direct mail • Lands in hands of person who opens the mail and makes the purchase decisions. • Response rate averages 2.5%. • Disadvantages are clutter and costs. • Used heavily in business-to-business
Alternative media • Leaflets and brochures • Ads on carry-home bags • Ads on clothing and caps • Ads on movie trailers • Yellow pages • Ads sent by fax • Video replay and signage at sporting events • Ads on walls in airports, subway, etc. • Guerilla marketing • Product placements
Internet marketing • Huge Internet growth in last decade • Daily Internet access • Communication • Voice over Internet Protocol (VoIP) • Web blogs • Internet retail sales • $144 billion • 7% of global retail sales
Functions of the Internet • Advertising • Sales support • Customer service • Public relations • E-commerce
E-Commerce • Selling products over the Internet • Entry into e-commerce • Trend of future • Fad • Alternative mode of shopping • Source of information for shoppers
Top cyber categories • Travel • Office, home, garden • Computer hardware/software • Apparel • Automotive • Consumer electronics • Food & beverages
E-Commerce components • Catalog • Shopping cart • Payment procedure
Online purchases • Security concerns • False credit card charges • Fraud • Identity theft • History & advertising • Purchase habits • Incentives
E-Commerce incentives • Financial incentives • Convenience incentives • Value incentives
Online financial incentives • First-time purchases • Repeat purchases • Cyberbait • Effective incentives • Free shipping & handling • Dollar discounts • Free gifts • Must be meaningful • Change periodically
Convenience incentives • Time • Update and change website • Easy to locate merchandise • Convenience services
Value incentives • Change long-term purchase habits • Personalize shopping • Examples • Available only online • Free online courses • Free information
Business-to-Business E-Commerce • Re-buy situations • Brand name recognition • Requires incentives • Financial • Convenience • Value • Online exchanges and auctions • Store or warehouse locator
International E-Commerce • Global sales capabilities • Areas to address • Communication barriers • Cultural differences • Shipping • Internet capabilities • Payment procedures • Security • Websites in different languages • Call centers in different countries
IMC and the Internet • Important component of IMC • Communication between departments • Marketing • Human resources • Production • Information technology • Call centers • Shipping departments
Drivers to new websites • Internet search engines • Word-of-mouth • Internet banners • Television ads • Print ads • Cross-references • Product packaging • POP
IMC and the Internet • Search engine key words • Online advertising • E-mail advertising • Blogs • Off-line advertising
Branding and the Internet • Brand image • Website support of image • Cyberbranding • Brand spiraling • Halo brand effect
Brand loyalty and the Internet • Brand loyal consumers • Communication is key • Make shopping pleasurable • Establish one-to-one communications • Personalized information • Niche customers
Sales support and the Internet • Information for sales staff • Client information • Product information • Company information • Information for customers • Prospecting • Qualifying prospects • Gathering information
Customer service and the Internet • Cost-effective method • Easy-to-use website • Alternative communication • Discussion groups • Chat rooms • Blogs • Access by businesses • Access by manufacturers • Response time