The Marketing & Promotional Plan

1. The Marketing & Promotional Plan Brand Building and Marketing Online 64157 电子商务模式设计与应用 国立中山大学企管所 2002 Spring, Week 7-4 • 黃光彩 博士 • 太世科公司 • 2002/05/11

2. Pull Versus Push • Traditional marketing = PUSH / ‘interruptive’ • Online = PULL • Online environment = active medium • People use internet to DO something • Online marketing = recommendation of usefulness

3. The Brand Experience • The online brand = experience of brand • Web site IS the brand • Judgement based on experience of brand • Companies can help to develop feelings in and around their brand • Add a ‘human touch’ in the computer environment • Only one chance to create a favourable experience

4. Traffic and Brand Value • Smart browsing • Traffic as value • Traffic through visibility • Domain branding • Managing your portal presence • Publicity and word of mouth • Paying for traffic • Alliance and co-branding • Online ads • Evaluating traffic sources

5. Smart Browsing • Surf Engines – • Using personalization techniques to help to solve the question of where to go next. • Aimed at making Web navigation easier. • No engine can provide guidance to a newly created page. • Surf Engine Pioneer – • Alexa Internet Services (www.alexa.com), • Founded in April 1996 by Brewster Kahle and Bruce Gilliat • Located in San Francisco. • Alexa works along with your browser to provide information about the Web page being viewed and insight about the additional places to visit.

6. Features of Alexa Software System Real Time Information provider. • Using technologies of parallel computing – send new page address back to Alexa system, then send new information to users’ computer. • Keeping a database of Web-surfing behavior. • Using data mining techniques – recognize usage patterns, help to guide users to their desired information. • Interactive – Click trails are combined with user rankings of web-page quality. Behavior and Rankings.

7. Defining the Strategy • WHO are the site’s target audiences? • WHERE can these target audiences be reached? • HOW can they be most effectively reached?

8. Initial Activities: Offline Integration

9. Initial Activities: Search Engines • 1 in every 28 page views on the entire web is a search engine results page • Most widely travelled path on the net in march ’99 was from home.microsoft.com to www.altavista.com • 85% users find web sites through search engines

10. Initial Activities: Search Engines

11. Initial Activities: Directories • Directories compiled by humans, not ‘robots’ • Takes time and patience to get listed – often 2-3 months at the least • But worth the wait: in Dec ’99 alone, yahoo! Had over 32 million visitors

12. Increasing Awareness: Reciprocal Links • 88% of users find new sites this way • Reciprocate with good quality, non-commercial information sites • Reciprocal links can help develop a positive brand experience • Some search engines use the number of sites linked to a submitted site as a ranking mechanism

13. Increasing Awareness: Advertising IAB’s ‘advertising effectiveness study’ Online advertising can increase: • Advertisement awareness • Brand awareness • Product attribute communication • Purchase intent

14. Increasing Awareness: Affiliate programmes • Only pay for performance • Reward: per click through per lead per sale • Online-only retailers generated 6% of their revenues from Affiliate Programmes Cross promotional partnering Online / offline promotional integration

15. ‘Hairy’

16. Traffic Value and Scarcity • Value is based on scarcity of supply, not necessarily benefits • The supply of web content is growing faster than the number of users • While the volume of online material provides ever-increasing value to network users, the battle for attention is severe

17. Building Web Traffic • Any Web site must attract visitors. The best designed and implemented Web site is useless if no one shows up! • The biggest challenge facing Web marketer is getting visitors to their site. • Traffic building tools : • Advertising • Links • User habits • Word of mouth • Surf engines

18. Build Traffic Search & Directory Domain Name/Brand • Acquiring traffic is expensive • And critical to Web marketing success • Make the site easy to find by new users • - Domain name • - Search & Directory • - Publicity • - External Links • - Advertising Destination Site External Links Publicity Paid Advertising Sources of Traffic

19. How to Develop Traffic? • Developing Traffic Requires Value • Visit duration is the online equivalent to time in a store • Long visit duration allows: • - More time to communicate the message of the site • - Additional opportunities to engage in commerce • - More chances to build commitment and loyalty • - Exposure to more advertising or alliance partner • impression

20. Net Word-of-Mouth Technologies • E-mail among friends and biz acquaintances • Usenet groups • E-mail listservs • AOL and other online forums • Industry portal discussion areas • Online and traditional media coverage of the Net The Net amplifies the power and accelerates the speed of user feedback

21. Option Leaders Online • Opinion leaders are well-respected industry participants journalists, or lead users known for expertise • Reaching opinion leaders is a key success factor of an e-commerce strategy • Opinion leaders can be reached via e-mail and social networks

22. URL Placement • Integrate your domain name wherever possible • - Manuals, warranties, software programs • - Familiar advertising settings • Billboards, buses, bills, company brochures, radio • advertisements, public speeches, menus in • restaurants, park benches, shopping bags • To track which medium is driving traffic • - Use unique identifiers • - Use different Web addresses with different media • messages

23. Interactive Advertising • Banner ads are the dominant form of online advertising - Clickable graphic images that take a user to another Web location • Pricing is usually based on the number of impressions - Negotiated prices, volume discounts, and barter arrangements are common - Each banner also carries a unique identifier • This allows a business to track the effectiveness of each placement in generating traffic

24. Retaining Traffic The Value of Loyalty in Building Traffic Time Needed to Reach 100,000 Active Users Montly Retention Rate Advertising Cost 100% $70,000 2.5 months 95% $80,000 3 months 90% $100,000 4 months 85% $140,000 6 months 80% $380,000 19 months to exceed 99K 75% ** Can't reach • Retaining traffic is profitable • Site loyalty dramatically lowers the cost of maintaining • web site traffic • Fewer new users must be attracted to maintain a • profitable user base

25. Building Loyalty It costs 5 times more to sell to a new customer than to sell to an existing customer

26. Building Loyalty: Email • Email = interactive and measurable • Content, Click through and Conversion can be measured and effectiveness of campaign plotted • One-to-One marketing: - profiling - segmentation - tailored communication

27. Building Loyalty: Site Personalisation • Users visit personalised pages three times more often • Response rate can increase to 10-30% from 2-4% • ROI for personalisation can be up to 300%

28. Building Loyalty: Site Personalisation Scenarios where personalisation can be beneficial: • One product / service geared to more than one target market • One target market and several products / services • More than one target market and several products / services

29. Building Loyalty: Site Personalisation Types of personalisation: • Personalised information • Personalised web experience • Personalised service • Personalised community • Personalised cross selling

30. Building Loyalty: Little Things • Reward loyalty • Make a visitor feel valued • Create a positive brand experience

31. Conclusions • Web sites need to be marketed to benefit from the investment made • The methods used need to be appropriate for the strategy, defined by WHO and WHERE • A positive brand experience is crucial in promoting loyalty • Judgements are made depending on how people FEEL

33. Waking Up Customers with Personalization • Introduction • Successful Use of Personalized Direct Mail • Future Plans

34. L L Bean • Select Comfort - The leading vertically-integrated manufacturer, specialty retailer and direct marketer of premium quality, innovative air beds. • “Personalized comfort and support” • 320+ major mall stores nationwide • Database of 5 million owners & inquirers • Four-fold sales growth in last 5 years

35. Personalization Overview • Prospects Mall Location • Inquiries Call to Action “Discovery Information” Financing Pre-Approval Survey Results • Owners Original Bed Purchase Info

36. Prospect Lists • Personalize Closest Mall Location • Also Include Directions to Mall

37. Inquiries - Personalized CTA • Targeted versioning of most productive call to action • 800# • Store location • Both • Inquiries segmented by channel preference

38. Inquiries - Direct Call to Action

39. Inquiries - Retail Call to Action

40. Inquiries - Dual Call to Action

41. Inquiries - Personalized CTA • Targeted versioning of most productive call to action • 800# • Store location • Both • Inquiries segmented by channel preference • 24% response gain!! (dual vs single CTA)

42. Inquiries - Customer Information • Use information gathered in the “discovery process” to personalize the marketing message • Make sure it’s relevant • type, age of current bed • sleep issues • feature of interest in SC bed

43. Inquiries - Customer Information

44. Inquiries - Customer Information • Use information gathered in the “discovery process” to personalize the selling message • Make sure it’s relevant • type, age of current bed • sleep issues • feature of interest in SC bed • Double digit gains in response rates!!

45. Inquiries - Sleep Survey Results • Gather sleep survey data from inquiries • Take problem/solution approach to direct mail via personalization

46. Inquiries - Sleep Survey Results

47. Inquiries - Sleep Survey Results • Gather sleep survey data from inquiries • Take problem/solution approach to direct mail via personalization • Include collateral material in package that speaks to their specific sleep issue

48. Future Plans for Personalization • New Movers • Back Pain Sufferers • “Sleep Numbers” • The sky is the limit!!

49. Business Intelligence Challenge • Who are my most/ least profitable customers and products ? • To whom should I address my marketing action/ campaign ? • What are the sales performances of this period with respect to my objectives and with respect to the same period last year? • Which are currently my best performing products in Germany ? • Which customers are about to churn, who are frauding ? • At what price should I sell my service/ product in Geneva ?

50. Existing Barriers • Data profusion, redundant and incoherent • Data incomplete and of bad quality • Culture for data transparency • Technology islands • Rapidly changing strategies and environment