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INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES

INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES. Chapter 4 The Direct and Database Foundations of Internet Marketing. Chapter 2 Update!. DELL PREMIER PAGE. INTEGRATED MAIL/WEB?. NON-PROFITS GOOD AT DIRECT RESPONSE. EMAIL WITH DR OBJECTIVE. EMAIL TO TRAFFIC STORES, WEBSITE.

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INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES

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  1. INTERNET MARKETING:INTEGRATING ONLINE AND OFFLINE STRATEGIES Chapter 4 The Direct and Database Foundations of Internet Marketing

  2. Chapter 2 Update! DELL PREMIER PAGE

  3. INTEGRATED MAIL/WEB?

  4. NON-PROFITS GOOD AT DIRECT RESPONSE

  5. EMAIL WITH DR OBJECTIVE

  6. EMAIL TO TRAFFIC STORES, WEBSITE

  7. DIRECT ACTION, YES – PURCHASE???

  8. In What Ways Is The Internet A Direct-Response Medium/ Channel? And Why Does It Matter?

  9. FOUR I’s OF INTERNET MARKETINGARE THE ANSWER

  10. P&G—MASS MARKET PRODUCTS - DIRECT-RESPONSE EXPERTISE

  11. HOME PAGE AND MICROSITE

  12. BASIC DIRECT-RESPONSE STRATEGIES Retention Conversion Acquisition

  13. CRITICAL STRATEGY ELEMENTSFROM DIRECT-RESPONSE PERSPECTIVE The Service & Support The Offer The (Email) List The Creative Execution The Media

  14. DIRECT-RESPONSE OBJECTIVES Direct-Response Objectives are ACTION Objectives: • To Remain on the Site Longer (“Site Stickiness”) • Well Designed Site With Much Relevant Content • To Request Additional Information (Sales Lead) • To Make a Sale (E-Commerce)

  15. SITE STICKINESS = ATTENTION

  16. TOP POSTS BY ATTENTION (CLICKS?)

  17. SITES RANKED BY ATTENTION

  18. WEB 2.0 = ENGAGEMENT http://wiredset.com/root/archives/008589.html

  19. TOP ENGAGEMENT SITES

  20. LANDING PAGE CAPTURES DATA Figure 4-4a

  21. PRODUCT PAGE SELLS Figure 4-4b

  22. THE REMAINING STRATEGY ELEMENTS • E-Mail List for Customer Acquisition and Retention • The Media • ANY MEDIUM Can Be Direct Response With Action Objectives • Creative Execution • Historically Less Important in Direct Response • Rich Media Has Increased Role on Internet • Customer Service and Support

  23. THE FRONT vs. THE BACK END • THE FRONT END • All Pre-Sale Activities • Marketing and Sales • THE BACK END • All After-Sale Activities • Includes Order Processing, • Fulfillment, Service, Support

  24. WHAT IS CLV –AND WHY IS IT SO IMPORTANT? Customer Lifetime Value Is The Net Present Value Of The Gross Margin Minus Cost of Servicing An Individual Or A Cohort Of Customers. • Reasons For Importance: • The Best Metric For Judging The Success Of • Customer Acquisition & Retention Programs • The Most Powerful Segmentation Criterion

  25. THE CONCEPTUAL FRAMEWORK

  26. A SIMPLE ONLINE TOOL http://hbsp.harvard.edu/multimedia/flashtools/cltv/index.html

  27. BASELINE CLV CALCULATION Table 4-1

  28. SUMMARY OF FIRST YEAR CLV

  29. INCREASE FROM TARGETED MARKETING PROGRAMS Table 4-2

  30. EFFECT OF TARGETED PROGRAMS ON CLV Table 4-3

  31. Email Newsletter Email Newsletter Content Version B Content Version A THE DIRECT RESPONSE TEST A/B Split is One Of Many Types of Tests

  32. THE TESTING PROCESS

  33. http://www.sitespect.com/non-intrusive-a-b-testing.shtml

  34. How is Testing Different From Marketing Research?

  35. TESTING vs. MARKETING RESEARCH • Testing Tells the Marketer WHAT WORKS. • Marketing Research Explains WHY IT WORKS.

  36. RECOMMENDATION Behavioral Analysis FIRST Faster, Cheaper, Actionable ONLY THEN Marketing Research IF You Need to Know “Why”

  37. RECOMMENDATION FROM SHERPA

  38. http://www.marketingexperiments.com/images/multifiles/articulate/webclinic-06-25-08/player.html?=meblog2http://www.marketingexperiments.com/images/multifiles/articulate/webclinic-06-25-08/player.html?=meblog2

  39. Most Viewers Guessed Wrong!

  40. Marketing Program Data Other Business Data DATABASE/ DATA WAREHOUSE Marketing Support Data External Data THE DATABASE IMPERATIVE

  41. USES OF CUSTOMER DATABASE

  42. BENEFITS OF CUSTOMER DATABASE Harrah’s Casinos Increased Revenues and Profits By Building and Using (Mining) a Customer Database

  43. WHAT IS “DATA MINING?” A Set of Statistical Routines That Permit Pattern Detection In Large Data Sets

  44. HIERARCHY OF INTERACTIVE STRATEGIES

  45. SUMMARY • Interactivity of Internet = Direct-Response Medium • Learning To Use In Branding Also (Chapter 7) • Use For Customer Acquisition,Conversion,Retention • Generate Sales, Leads, Site Stickiness • Judge Success By Customer Lifetime Value • To Increase Customer Lifetime Value Targeted, Information-Driven Marketing Is Essential • Data Capture Through Transactions and Customer Contact • Modeling, Data Mining • Interactive Marketing Strategies Should Increase Customer Focus and Marketing Effectiveness • They May Decrease In Cost As Targeting And Personalization Improve

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