29 Jun Digital Marketing Strategy Forms of Direct and Digital Marketing
Question
Digital Marketing Strategy Forms of Direct and Digital Marketing 14 – 2 First Stop: Amazon
The Poster Child for Direct and Digital
Marketing
Amazon engages
customers and creates
highly satisfying
customer
online buying
experiences. 14 – 3 Rapid Growth of Direct and
Digital Marketing
• Fastest-growing form of marketing
• Direct marketing becoming more Internet-based
• Direct marketing claims a surging share of marketing
spending and sales Includes online display and search advertising, video, social
media, mobile, email 14 – 4 Benefits of Direct and Digital
Marketing to Buyers & Sellers
Buyers Convenient, easy, and
private Easy buyer-seller
interaction Quick access to products
and relevant information Brand engagement and
community Sellers
• Low-cost, efficient,
and speedy
• Build close,
personalized,
interactive, one-to-one
customer relationships
• Greater flexibility 14 – 5 Benefits Summary
• For buyers, direct and digital marketing are
convenient, easy, and private. • For sellers, direct marketing often provides a
low-cost, efficient, speedy alternative for
reaching their markets. 14 – 6 Online Marketing
• Marketing via the Internet using company Web sites,
online ads and promotions, email, online video, and
blogs
• Marketing Web sites: Engage consumers to move
them closer to a direct purchase or other marketing
outcome
• Branded community Web sites: Present brand
content that engages consumers and creates
customer-brand community 14 – 7 Online Advertising and
Email Marketing
• Online advertising: Appears while consumers are
browsing online
• Email marketing: Sending highly targeted, highly
personalized, relationship-building marketing
messages via email Spam: Unsolicited, unwanted commercial email messages 14 – 8 Internet Users
• The Internet has impacted personal lives and how
business is conducted.
• Every Web site category is growing, as more and
more people are using the Internet: B2B e-commerce now totals $1.3 trillion per year in the U.S.
Businesses spend $3 trillion online per year, worldwide.
People send more than 7 trillion emails in the U.S. per year.
There are 200 million e-mail boxes in the U.S. Benefits of Internet Marketing
for Companies
• Real time – can change continuously through live feeds, etc.
• Information – information- gathering techniques can be
controversial.
• Communications – medium close to consumers.
• Database warehousing – massive storage capabilities.
• Sales – growing every year.
• Interactivity – the Web site can engage the user.
• Multimedia capabilities – provide entertainment.
• Global reach – expanding throughout the world.
• Flexibility – content can be changed quickly.
• Cost efficiencies – allows smaller companies to be
competitive. Functions of Internet Marketing
• Projecting an image Opportunity to sell directly to consumers • Multi-channel marketing Can be an alternate channel to the distribution chain. • E-commerce (consumers and businesses)
• Advertising Interstitial ads: Popup advertisements
Rich media ads: Uses short audio or video clips • Sales promotions Cyberbait: Luring someone to a Web site with an attractive offer. • Public relations Functions of Internet Marketing (contd.)
• Database development Ideal medium for gathering information about consumers by
tracking them
Permits interactive marketing – the process of individualizing
everything in accordance with data collected. • Information gathering and sharing
• Purchasing and inventory management
• Sales support Helps salespeople provide information and troubleshoot. • Customer service Online service centers are cost-effective. Marketers’ Adoption of the Internet
Better
targeting Direct
feedback High-speed
connections
New media
technologies ROI tracking Users online
longer Interest and
purchase
tracking More potential
buyers 15-13 Rich Media
A broad range of interactive digital media
A broad range of interactive digital media
that exhibit dynamic motion, taking advantage
that exhibit dynamic motion, taking advantage
of enhanced sensory features such as video,
of enhanced sensory features such as video,
audio, and animation
audio, and animation
Online Commercials
Video on Demand
Webisodes
Other Forms Owned vs Earned Media
• OWNED MEDIA is online content that an
organization creates and controls; examples include
blogs, Web sites, Facebook pages, and other social
media presences.
• EARNED MEDIA is a public relations term connoting
free media such as mainstream media coverage;
examples include viral videos, retweets, comments
on blogs, and other forms of customer feedback
resulting from a social media presence. Web Design & Customer Interface Issues
Context
Context Content
Content Site’s layout and design,
Site’s layout and design,
look and feel
look and feel Text, pictures, sound
Text, pictures, sound
and video that web
and video that web
pages contain
pages contain Commerce
Commerce Community
Community Site’s capabilities to
Site’s capabilities to
enable commercial
enable commercial
transactions/ scheduling
transactions/ scheduling The ways sites enable
The ways sites enable
user-to-user
user-to-user
communication
communication Connection
Connection Customization
Customization Degree site is linked to
Degree site is linked to
other sites
other sites Communication
Communication The ways site-to-user or
The ways site-to-user or
two-way communication
two-way communication
is enabled
is enabled Site’s ability to self-tailor
Site’s ability to self-tailor
to users or allow users
to users or allow users
to personalize the site
to personalize the site Internet Communications Objectives
Create
Awareness
Gain
Consideration Create Buzz Stimulate Trial Generate
Interest Objectives Create a Strong
Brand Disseminate
Information Create an
Image Many Options for Placing Ads and Promotions Online Company Websites (e.g., www.nick.com) Banner ads (click-through rates only .3%; B2B>B2C; brand familiarity; yet
attention?) Sponsorships and Microsites (small area paid for by external co.) Rich Media: Interstitials/Superstitials/pop-ups/ online video ads Browser ads (viewer is paid to watch ads) Alliances and affiliate programs (e.g., AOL and Amazon; www.there.com) Push technology (e.g., Real Video; Infogate/AOL) Search engine advertising (keywords/targeted content; 40% of online
ads), blogs (www.blogpulse.com), podcasts (audio blogs;
www.podnova.com ) (Nielsen/McKinsey NMIncite tracks/ analyzes blogs) E-mail ads (opt-in versus opt-out; e-zines; wireless; mobile phone/ text
messaging) Mobile Advertising (Google Goggles) Social Media: Facebook, MySpace, Twitter, YouTube, Second Life,
LinkedIn, Pinterest, Flickr… (www.comscore.com; www.compete.com;
www.radian6.com; tracks/analyzes) Online Advertising: Benefits and Costs
Benefits Individualization
Interactivity
Immediate
publishing
Cost efficiency Costs User distraction
Too many choices
International
coordination
Rapid change
Short lead times The Online Ad Process Purchasing Keywords and Selecting
Content-Oriented Websites Keyword Matching Advertising
Prospective advertisers bid for keywords
by indicating how much they are willing to
pay each time an Internet shopper clicks
on their website as a result of a search
(cost per click).
(Google Ad Words: www.adwords.google.com) Rich Media: Pop-Ups, Interstitials, Superstitials,
and Video Ads
• Pop-Ups: Ads that appear in a separate window.
• Interstitials: Ads that appear between two content Web
pages.
• Superstitials: short, animated ads that play over or on
top of a Web page.
• Online video ads: audio-video ads that are similar to 30second TV commercials, but are shortened to 10-15
seconds and compressed. Websites
(advantage: sought by consumer versus stumbled upon) • Uses for Websites As an advertisement for the company As a venue for generating and transacting
exchanges between organizations and their
customers As a link to other integrated marcom
communications
• Well-Designed Websites Are easy to navigate Provide useful information Are visually attractive Offer entertainment value Are perceived as trustworthy Measures of Effectiveness for Internet Advertising
• Viewers (stay on site/page): number of viewers to a
site (and unique viewers) Ad views/page views/impressions: the number of times
viewers see a Web page with an ad. (Used to calculate cost
per thousand or CPM). • Hits (leave the site or home page): number of times a
specific component of a site is requested/clicked on. Clicks/click throughs: the number of visitors to a site that
click on an ad to retrieve information.
Click through rate: % of ad views that result in an ad click.
(Cost per click (CPC) can be calculated) • Cost per thousand (CPM) example for “go.com”: CPM = $10,000 per mo. x 1000 / 500,000 views per mo. =
$20 Forms of Internet Advertising
Forms of Internet Advertising Banners Interstitials Sponsorships Push Technologies Pop-ups/
Pop-unders Links Typical Banner Ads Advertising on the Internet
Forms of Internet Advertising • Paid Search
• Behavioral targeting
• Rich media Contextual Ads
Additional Forms Online commercials
Video on demand
Webisodes Podcasting
RSS feeds
Blogs 15-28 Internet Advertising Models 15-29 Internet Search Advertising
• Search Engine Marketing The entire set of techniques and strategies used to direct
visitors from search engines to marketing web sites • Paid Placement Text-only ads targeted to keyword search results on search
engines
Offered through programs such as Google AdWords, Yahoo
Search, or Microsoft Bing
– Sometimes referred to as paid placement, pay-per-click, costper-click advertising Internet Search Advertising
• Behavioral Targeting Targeting online ads to consumers based on their
Web searching behavior • Contextually Targeted Ads Text ads targeted to the content of web pages
using programs such as Google AdSense and
Yahoo Search Content
Placement of ads determined by content of the
web page where they are shown • Organic Search Optimization Using a range of techniques to improve how well a
site or page is listed in search engines for specific
topics
15-31 Paid Search
• Online search-based advertising Advertiser pays only when a Web surfer clicks on their link from a search engine page
Search ads appear in a specified, sponsors-only
area near the search results for that phrase • Advertisers bid on search keywords Prices for popular search terms
– Background check – $1.18 per click
Car loan – $1.34 per click
Refinance – $4.46 per click
Mesothelioma – $50 per click 15-32 Huggies Goes Beyond Providing Information Using Web Sites to Build Image and Brand Meeting Other Communications
Objectives
Stimulate Trial
Stimulate Trial
Create Buzz
Create Buzz
Gain Consideration
Gain Consideration Under Armour Launches Protype Shoes via Internet 15-36 E-Commerce
• Definition: Selling of goods and services over the
Internet. • Works for both the consumer and the B-to-B
market. • Has gone through three stages:
1.
2. 3. Bricks and mortar: Firms that only operate using
traditional retail or wholesaling facilities.
Clicks-only firms: Only sell via the internet. Many of the
dot-com companies during the 1990s were clicks-only
firms.
Bricks-and-clicks: Firms that operate both a bricks-andmortar facility as well as an e-commerce site. Ebay is a Popular E-Commerce Site E-Commerce Components
Each e-commerce site must have three components:
Catalog – can be simple or very complex.
Shopping Cart – assists consumers as they
select their products.
Payment System – method to purchase the
selected items.
A brick-and-clicks company must also have a store
locator to guide shoppers to retail stores. E-Commerce:Why Consumers Shop
Online
•
•
•
•
•
•
•
•
•
• 24-hour operation
Merchandise shipped to customer
Speed
More production information
Wide product variety
No salespeople
Ease of comparison shopping
No crowds
Saves time
Convenient Lower
Prices E-Commerce Components
Consumer Hesitation
Consumers hesitate shopping on the Internet,
primarily due to:
• Security issues (concerned about transaction
security)
• Purchase behavior habits (prefer to touch and
feel products, interact with salespeople, etc.) E-Commerce Incentives
How to Encourage Purchases
• To increase Internet sales, firms must provide
incentives: Financial—
– Reduce price
– Offer consumer promotions Convenience—
– Provide a speedy transaction anytime,
anywhere Value-Added—
– best incentive: Offer personalization International Concerns
• Communication barriers
• Cultural differences
• Global shipping challenges
• Payments in different currencies, by different
payment methods
• Impossible to appeal to all consumers
• Technical side difficult to manage: Software,
bandwidth for handling traffic International E-Commerce Benefits
• Increased sales in remote target markets that were
previously inaccessible.
• Access to new, growing markets.
• Allows firm to remain competitive.
• Offers opportunities for small companies to sell
internationally. Internet Branding Brand spiraling:
• Use of media to promote an online website Halo effect:
• Selling over Internet after establishing strong
off-line brand
Examples of successful Internet brands: Adobe,
Amazon, Monster.com Viral Marketing
• Definition: An advertisement tied to an email
• Characteristics: Low cost Rapid brand development Greater credibility But will become less effective with time Steps of Internet Marketing Strategy
1. Define the target audience of the Web site
2. Determine the functions of the Web site
3. Define the Internet functions
4. Determine the Web site design
5. Assess the Web site performance Internet Marketing Strategy: Step 1
• Define the target audience of the Web site Create objectives to match the needs of the
target audience. Foundation for the development of the Web site Affects the functions and the content of the Web
site Internet Marketing Strategy: Step 2
• Determine the functions of the Web site: multi-channel marketing
selling
advertising and promotions
public relations
database development
information gathering and sharing
inventory management
sales support
customer service Internet Marketing Strategy: Step 3
• Define the Internet functions For firms and manufacturers that sell to businesses, it is
important to define:
– B-to-B functions
– Consumer functions E-commerce may or may not be included in the Internet
functions. Internet Marketing Strategy: Step 4
• Determine the Web site design Meet the functions identified Web site security Database development Internet Marketing Strategy: Step 5
• Assessment of the Web site: How well is the firm meeting its objectives and
functions? Should be a continuous process Internet Marketing Strategy
At a Glance B-to-B
Functions Objectives
Internet
Function
Target
Audience E-Commerce Consumer
Functions Security Website
Design Assessment Database
Development Social Media
• Internet Social Media Online technologies and practices that people use to share
conversations, content, opinions, insights, experiences,
perspectives and media themselves Created, initiated, circulated and used by consumers intent
on educating one another about products, brands, services,
people and other topics of interest 15-54 Examples of Social Media
Social networking MySpace, Facebook, Twitter Creativity work sharing •Video (youtube)
•Photos (Flickr)
•Music (Jamendo)
User-sponsored blogs Cnet.com Company-sponsored
sites •Blogs
•Cause/help sites (Dove
Campaign for Real Beauty) Business networking LinkedIn Collaborative Wikipedia Commerce
communities Ebay, Amazon 15-55 Popular Social Media Sites 15-56 Uses of Social Media in IMC Mix
• Enable companies to interact with their
customers Way to engage customers (contests, online voting,
online games, submit ideas (Frito Lay)
Enables consumers to see others using product
(Swiffer contest)
Provides information to customers • Enable customers to interact with one another
as well as companies Word-of-mouth • Support causes important to consumers
15-57 Social Media Marketing Etsy has created an
active and engaged
worldwide brand
community of buyers
and sellers. 14 – 58 Social Media Marketing
Advantages and Challenges
Advantages
•
•
•
•
• Targeted and personal
Interactive
Immediate and timely
Cost effective
Engagement and social
sharing capabilities Challenges
• Effective usage
uncertain
• Difficult to measure
results
• Largely user controlled 14 – 59 Integrated Social Media Marketing
• Large companies design social media efforts that
blend with and support other elements of a brand’s
marketing strategy and tactics.
• Firms that use social media effectively create brandrelated social sharing, engagement, and customer
community. 14 – 60 Social Media Tools and Platforms Social networks
Social networks
Blogs
Blogs
Microblogs
Microblogs
Media sharing sites
Media sharing sites
1 Social Media and Consumers
At the basic level, social media
consumers want to:
• Exchange information
• Collaborate with others
• Have conversations
It is up to the marketer to decide if
engaging in those conversations will be
profitable and to find the most effective
method of entering the conversation.
1 How Consumers Use Social Media
• Every day:
• Two million blog posts are written • 4.7 billion minutes are spent on Facebook • Half a million tweets are posted • More than 860,000 hours of video are
uploaded to YouTube 1 Social Commerce
A subset of e-commerce that
involves the interaction and user
contribution aspects of social online
media to assist online buying and
selling of products and services. 1 Social Media and Integrated
Marketing Communications
Allows marketers to: Allows consumers to:
• Have
conversations with
consumers • Connect with each
other
• Share opinions • Forge deeper
relationships
• Build brand loyalty 1 • Collaborate on new
ideas according to
interests The Listening System
The first action a marketing team
should take when initiating a social
media campaign is simple: LISTEN
2 Eight Stages of Effective Listening
Stage Description Stage 1: Without objective Stage 2: Tracking brand mentions Stage 3: Identifying market risks and opportunities Stage 4: Improving campaign efficiency Stage 5: Measuring customer satisfaction Stage 6: Responding to customer inquiry Stage 7: Better understanding of customers Stage 8: Being proactive and anticipating
customer demands Social Media Objectives
Listen and
Listen and
Learn
Learn
Build
Build
relationships
relationships
and awareness
and awareness Monitor what is being said about the brand.
Develop a listening strategy.
Open dialogues with stakeholders. Answer
Open dialogues with stakeholders. Answer
customer questions candidly.
customer questions candidly. Promote
Promote
Get customers talking about products and
products and
products and services.
services
services
Manage your
Manage your
reputation
reputation 2 Improve
Improve
customer
customer
service
service Respond to comments and criticisms. Participate
in forums and discussions.
Seek out displeased customers and engage
them directly to solve issues. Social Media Metrics to Assess
Buzz Search Engine Interest Influence Participation Sentiment
Analysis Web Site Metrics
3 Categories of Social Media Users
A study of social media users determined that:
• 24 percent functioned as creators
• 37 percent functioned as critics
• 21 percent functioned as collectors
• 51 percent functioned as joiners
• 73 percent functioned as spectators
• 18 percent functioned as inactives 4
70 Social Media Tools
Blogs
Blogs
Microblogs
Microblogs
Social Networks
Social Networks
Media Sharing Sites
Media Sharing Sites
Social News Sites
Social News Sites
Location-Based Social
Location-Based Social
Networking Sites
Networking Sites Review Sites
Review Sites
5 Virtual Worlds and Online
Virtual Worlds and Online
Gaming
Gaming Blogs Blog
Blog Corporate
Corporate
Blogs
Blogs Blogs that are sponsored by a company or
Blogs that are sponsored by a company or
one of its brands and maintained by one or
one of its brands and maintained by one or
more of the company’s employees.
more of the company’s employees. NonNoncorporate
corporate
Blogs
Blogs 5 A publicly accessible Web page that
A publicly accessible Web page that
functions as an interactive journal, whereby
functions as an interactive journal, whereby
readers can post comments on the author’s
readers can post comments on the author’s
entries.
entries. Independent blogs that are not associated
Independent blogs that are not associated
with the marketing efforts of any particular
with the marketing efforts of any particular
company or brand.
company or brand. Microblogs
• Microblogs are blogs that entail
shorter posts than traditional blogs.
• Useful for disseminating news,
promoting longer blog posts, sharing
links, announcing events, and
promoting sales.
• The ways a business can use Twitter
to engage customers are almost
limitless.
5 Social Networks
Marketing Goals for Social Networking Sites
• Increasing awareness
• Targeting audiences
• Promoting products
• Forging relationships
• Highlighting expertise and
leadership
• Attracting event participants
• Performing research
• Generating new business
5 Media Sharing Sites
Web sites that allow users to
upload and distribute multimedia
content like videos and photos. 5
© Cengage Learning 2015. All Rights Reserved 75 Social News Sites
Web sites that allow users to decide
which content is promoted on a given
Web site by voting that content up or
down. 5 Location-Based Social
Networking Sites
Web sites that combine the fun of
social networking with the utility of
location-based GPS technology. 5 Review Sites
Web sites that allow consumers to
post, read, rate, and comment on
opinions regarding all kinds of
products and services. 5 Virtual Worlds and Online Gaming
• Virtual worlds and online gaming include
massive multiplayer online games (DayZ) and
online communities (Second Life).
• Almost 800 million people participated in some
sort of virtual world experience.
• Annual revenue near $1 billion. • Nearly 25 percent of people play games within
social networking sites or on mobile devices. 5 Common Mobile Marketing Tools
SMS
MMS
Mobile Web Sites
Mobile ads
Bluetooth
Smartphone Apps 6 Applications and Widgets
Apps Widgets
• • Harness mobile
technology • •
Platform-specific or
convert existing content
to mobile format
•
Can generate buzz and
customer engagement
• • 6 Also called “gadgets”
and “badges”
Run within existing
online platforms
Cheaper to develop
Extend reach beyond
existing platforms Applications and Widgets
The following questions should be considered
before investing in a marketing-oriented
widget.
•
• Does my content engage individuals or
appeal to customer needs? • Is my content likely to inspire
conversations? •
6 Does my organization regularly publish
compelling content? Will customers want to share my content? The Social Media Plan
1. Listen
2. Set social media objectives
3. Define strategies
4. Identify the target audience
5. Select tools and platforms 7 6. Implement and monitor the
strategy Mobile Marketing
• Promotional content delivered to consumers through
their mobile devices
• Engages customers anywhere, anytime during the
buying and relationship-building processes 14 – 84 Catalog Marketing
• Print, video, or digital catalogs that are mailed to
select customers, made available in stores, or
presented online Eliminates printing and mailing costs
No space constraints
Broader assortment of presentation formats
Real-time merchandising capabilities
Prices can be adjusted instantly 14 – 85 Telemarketing and Direct-Response
Television (DRTV) Marketing
• Telemarketing: Selling directly to customers using
the telephone Outbound and inbound telephone marketing
Rise of do-not-call legislation resulted in opt-in calling
systems • Direct-response television (DRTV) marketing Direct-response television advertising
Interactive TV (iTV) advertising 14 – 86 Kiosk Marketing
• Product or service information and ordering
machines placed by companies
• Smart kiosks Wireless-enabled
Facial recognition 14 – 87 Kiosk Marketing Redbox operates more
than 42,000 DVD rental
kiosks. 14 – 88 Measures of Internet Effectiveness
Frequency to
Conversion Ratios
Clicks Post-click
conversions Cost per
conversion Unique
visitors Average
frequency Ad exposure
time Ad interaction
rate View-through
rate Visits Webpage
eye tracking Offline
sales lift Cross-media
models
15-89 Traditional Measures of Effectiveness ROI Tracking Sales
Recall and
retention Surveys 15-90 Internet Marketing Pros and Cons
Advantages
Target Marketing Sales Potential Message Tailoring Creativity Interactive Capabilities Exposure/Speed Information Access Complement to IMC 15-91 Internet Marketing Pros and Cons
Disadvantages
Measurement
Measurement
Problems
Problems
Potential for
Potential for
Deception
Deception Privacy
Privacy Clutter
Clutter
Irritation
Irritation 15-92 Internet and E-Mail Advertising
Problems • Privacy and Behavioral Targeting (online profiling
via cookies and marriage of online and offline
data: Double Click; Children’s Online Privacy
Protection Rule)
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