CCT356: Online Advertising and Marketing

1. CCT356: Online Advertising and Marketing Digital Strategy & Market Research Presented By: Pam Shaw B.Comm., RYT, PTS, PMI, CAI, FIS

2. Administration • Articles • Assignment One (online ad critique) Due Today! Questions? • Assignment Two (Online Ad Design) Due in three weeks on February 28 – the week after break week – Questions? • Today – pay attention – content applicable for Assignment Three (Final Project)!

3. Agenda • Marketing vs. eMarketing • Market Research • Gathering Information • Types of Research • Online Implications of Research • Marketing Strategy • Target Market • Goals & Objectives • Strategic Planning & Execution • Evaluation • Final Project • Questions

4. Marketing vs. emarketing • Marketing: • Total system of business activities • The Four P’s & Distribution • Focus on target market to achieve objectives • eMarketing: • Marketing using the Internet • Therefore, to be Successful: • An eMarketing Strategy should: • Not be separate from a Marketing Strategy • Focus on target market & budget • Be flexible, shift focus as needed

5. Market researchGathering Information • Why Research? • Our customers are doing it so we need to keep up • Sites allow product/service comparison & customer reviews • Examples: • Cheapflights.ca • tripadvisor.com • Home Depot/Canadian Tire Websites, etc. • Gathering Data: • Aids business decisions • Allows us to learn about our customers, competition, and the market • ORM is very important

6. Market research • What is Market Research? • A process that aids business decisions • Gathering, recording & analyzing data & information about customers, competitors & the market • Can be based on primary or secondary data & information • Data can be syndicated – What does that mean? • Types of Research: • Primary • Secondary • Qualitative • Quantitative

7. Market ResearchGathering Data • According to Survey Monkey: • The way a survey is administered plays a role in response rates: • Mail: 50% adequate, 60-70% good to very good • Phone: 80% good • Email: 40% average, 50-60% good to very good • Online: 30% average • Classroom pager: 50+% good • Face to Face: 80-85% good

8. Primary Research • Example? • Conducted Second • Is primary research necessary? • How are you going to obtain the data? • Gather information/data on a particular product or hypothesis • Must be collected from consumers or businesses • Examples: • Surveys, focus groups, research panels and research communities

9. Secondary Research • Example? • Conducted First • Does the data you require already exist? • Uses existing, published data & research • Can be internal or external data • Can be more cost effective than primary • Data may not meet your needs • Can be helpful in planning primary research • Authenticity is key • Examples: • Using Statistics Canada website vs. Wikipedia

10. Qualitative Research • Used for exploratory purposes: • Identify potential hypotheses • Design quantitative research • Interpret market perspective • Examines consumers’ views, opinions & feelings • Can be difficult to quantify, more expensive, & time consuming • Examples: • Focus group interviews and one-on-one depth interviews

11. Quantitative Research • Used to obtain statistical information about a sample of consumers or members of the public • Data: • Must be formally gathered • Is statistically analysed to determine results • Should be collected to test a hypothesis not determine one • Example: • Surveys – step by step guide in the text

13. Qualitative & Quantitative Research • Can be combined • Assign numeric value to qualitative data to generate a score • Example: Case in the text at the end of Chapter 2: BrandsEye’ • When using both: • 1st: (usually) qualitative to determine issues • 2nd: quantitative to test theories in qualitative

14. Online Implications of research • The Internet can be used in gathering: • Primary & secondary research • Qualitative and quantitative data • Online Communities = large focus group • Research information and tools readily available • Sophisticated research tools exist (see Tools of the Trade in the text) • Reach large numbers at relatively low cost • Market research should produce information that leads to actions

15. Online implications of research • Research available: • Social media such as blogs & social networking sites • Online research panels/communities • Online research publications • Listening Lab for usability testing • Global search data • Customer Communications • Cookies and other tools for tracking and measuring • Examples?

16. Step 1: Context: Know yourself know your market • What is your Company’s Mission Statement? • Background: • What are the current problems? • Current nature of the organization? • Who is the Target Market? • What are their needs? • How can the organization fulfill the needs of the Target Market? • What is the marketing mix? • 4P’s, 5th P

17. Target Market • Why is having a Target Market Important? • The 80/20 Rule • Example of a Target Market? • Demographics: age, gender, class, income • Geographic location • Psychographics: Psychological and sociological influences • Who is your Target Market? Example?

18. Marketing Mix • The 4 P’s • Products & Service • Price • Placement or Distribution • Promotion • The 5th P • People: • Personalization • Participation • Peer-to-peer Sharing & Communities • Predictive modelling • Awareness of Uncontrollable Factors • Existing or pending legislation relevant to the business e.g. environmental controls/regulations re: disposal • State of the economy in the market The 4 P’s

19. Context Continued: Strategic Analysis • Identify weaknesses and opportunities • Use Porter’s Five Forces Analysis (next slide) • Useful in understanding the attractiveness of the market • Was developed before the Internet • Barriers to entry and costs of switching are reduced = More competitors in the market • Cost of switching has lowered • Customer bargaining power has increased • Organizations compete based on price • Strategic differentiation comes from value

20. Porter’s Five Forces Analysis

21. Context continued:Strategic Analysis • Competition: • Who or What is trying to attract your consumers? • What are your customer’s needs & wants? • How may your customers fulfill their needs? • You are competing for customers attention not just their money • Environment: • What is the market like? • What is likely to change in future?

22. Step 2: Set Marketing Objectives • Marketing Objectives • Must Be SMART – Does anyone know what that means? • Specific • Measureable • Achievable • Realistic • Time-Based • E.g. To achieve a sales revenue of $259,200 per year for the first three years of the business • Outline the desired outcomes of the marketing plan • Which SMART objectives will indicate the success of the marketing strategy? • Unique & based on increasing revenue • Focused on long-term success – establish milestones, long-term & short-term goals

23. Step 3: Value-Exchange • What value does your company bring to the existing market? • What is your main objective and what other goals can you set which will help you achieve your main objective? • How will you know if you are successful at adding value to the market? • Explore all of your options!

24. Step 4Tactics & evaluation • Generate Strategies & Tactics for Achieving Objectives • How will you achieve your objectives? • Which strategies will you employ to be successful? • Example: • Objective: To increase customer retention by 2% by 2013 • Tactic: Develop an email newsletter strategy to build relationships with an existing database of interested prospects • Evaluate Strategies • Humphrey’s SWOT Analysis • Key Indicators • Monitoring & Reporting

25. Strengths & Weaknesses, Opportunities & Threats

26. Step 5: Metrics • Why are they important? • Helps define: • What successful value-exchange is worth • How this worth is measured • Consider Metrics with Step 3 in mind (value-exchange) • Start with ROI in mind • What is ROI? • Set up analysis and measurement tools early • Measure returns from inception. • The Metrics that matter are KPIs • What’s a KPI?

27. Step 6: Ongoing Optimization • Track, Analyze, Optimize • eMarketing uses hyperlinks & can be tracked • Once tracked, data can be analyzed • Remain dynamic - put it in the budget • Each tactic can be individually tracked, intelligent analysis helps you consider how they work together • Keep ORM in mind!

28. Final Project – Due March 27 • Adopt a real client and design a complete marketing/advertising strategy for them • Include an Executive Summary • What is an Executive Summary? • Last Step • Includes Background and Mission Statement • Background Statement • History of Business • Mission Statement • Future Direction • Market, Environment, Strengths, Management Preferences

29. Next Week • SEO/SEM continued and Viral Marketing • Following week – break week

30. References • Balderson, W. D. (2003). Canadian Entrepreneurship & Small Business. Toronto: McGraw-Hill Ryerson Limited. • Sommers, M. S. Barnes, J.G. Stanton, W. J. (1998). Fundamentals of Marketing. Toronto: McGraw-Hill Ryerson Limited. • Stokes, R. (2008). eMarketing the Essential Guide to Online Marketing 4th Edition. South Africa: Quirk eMarketing (Pty) Ltd.

31. Thank you for your time Any Questions?