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E-Active Marketing

E-Active Marketing. Chapter 9. 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. Chapter Overview. E-Commerce.

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E-Active Marketing

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  1. E-Active Marketing Chapter 9

  2. 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 Chapter Overview

  3. 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

  4. E-Commerce Components Catalog Shopping cart Payment procedure Customer service FAQs Public relations Optional elements

  5. Cyber Shopping Categories • Travel $53B • Office, home, and garden $16B • Computers & accessories $12B • Apparel $12B

  6. 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 Financial Incentives

  7. 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 Convenience Incentives

  8. Seller opportunism • Security issues • Information privacy issues • Brick-and-mortar purchasing habits Concerns About E-Commerce

  9. Change purchasing habits – long term • Personalized shopping • Examples • Merchandise available only online • Free online courses • Free information, household tips Value-Added Incentives

  10. Websites hits directly related to advertising and sales promotions • Requires incentives • Financial • Convenience • Value-added • Online exchanges and auctions B-to-B E-Commerce

  11. Interactive Marketing • Two-way communications • Customer involvement • Tracking of Internet activities • Personalize targeted

  12. Online Interactive Tactics Newsletters

  13. Generate sales, leads • Drive individuals to the Web site • Build loyalty • Offer incentives, prizes • Collect personal data InteractiveMarketing Objectives

  14. Increase in online budgets • Effective method for reaching today’s consumers • Becoming “standard” • Click-through response rate – 0.27% • Traditional integration - Brand spiraling Online Advertising

  15. Types of Online Advertising • Display or banner ad • Classified ads • Search advertising • Media/video ads Online Advertising F ig. 9. 8

  16. Banner Advertising First online advertising Accounts for 32% of online advertising Can embed videos and widgets Targeted display ads Auction exchanges Matches audience

  17. Banner Advertising - Widgets Mini-applications embedded in banners Access external dynamic content Provide personalized access to information Geo-targeted ads

  18. 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” Online Advertising - Rates Source: Advertising Age, October 9, 2012, “Forrester Reduces Its Forecast for Online Spending”

  19. 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. Online Advertising - Rates

  20. 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

  21. Search Engine Optimization Largest category of online expenditures 80% of Web traffic begins with a search Three methods of SEO Paid search insertion Natural or organic emergence Paid search ads Results of SEO Click rate 5% (0.2% for online ads)

  22. Brand Spiraling Use of traditional media Traditional media → drive consumers to Web sites Integrate online and offline advertising

  23. 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 Blogs

  24. 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. Company-Sponsored Blogs

  25. 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” Online Social Networks

  26. 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 Consumer-Generated Reviews

  27. 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 E-mail Campaigns

  28. 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 Newsletters

  29. 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 Web Site Design

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