Class Discussion Notes MKT 390 - 401

February 27, 2001

E-Marketing Communication Broadcast media

– Network TV• Strengths

– Reach– Multimedia– Good quality– Emotional appeal– Helps with branding– Low CPM– Demographic targeting– Easy to measure

• Weaknesses– Passive viewing– Message length– Geographic markets– Expensive

E-Marketing Communication Broadcast media – cont’d

– Radio• Strengths

– Reach– Inexpensive– Good local markets– Promotions– Immediate– Easy to measure

• Weaknesses– Passive viewing– Message length– Low recall– Not emotional

E-Marketing Communication Narrowcast media

– Cable TV• Strengths

– Targeted– Inexpensive– Flexible message length– Good quality– Multimedia

• Weaknesses– Markets fragmented and small– Low status– Difficult to measure

E-Marketing Communication Pointcast media

– Internet– Pagers– Cell phones– FAX

• Strengths– Targeted– Relatively easy to measure– Flexible message length– Delivery timing– Interactive

• Weaknesses– User control

E-Marketing Communication Print media

– Newspapers• Strengths

– Good local coverage– Easy to measure– Inexpensive– Immediate– National papers good for branding– National papers have good pass-along readership

• Weaknesses– Poor quality– Hasty reading– Not creative– National papers have low penetration

E-Marketing Communication Print media - cont’d

– Magazines• Strengths

– Targeting– Good quality– Easy to measure– Promotions– Good pass-along readership

• Weaknesses– High CPM– Inflexible timing– Low circulation– Markets fragmented and small

E-Marketing Communication Print media - cont’d

– Direct mail• Strengths

– Highly selective targeting– Personalization– Flexible message content and timing– Easy to measure– Promotions

• Weaknesses– Low image– High cost of production and distribution

E-Marketing Communication Audience measurement

– Hits• A file requested from a Web site

– Weaknesses• Inflated numbers

– Page views• Single access to a URL

– Strengths• Better than measuring hits

– Weaknesses• Page construction can lead to inflated numbers• Repeat visit measurement

E-Marketing Communication Audience measurement – cont’d

– Visitors• Strengths

– Avoids site design issues• Weaknesses

– Repeat visit measurement• Solution – measure unique visitors

– Usually done over a period of time– Stickiness

• Measures length of stay– Strengths

• Easy to measure

Site log files

E-Marketing Communication Audience measurement – cont’d

– Impressions• Number of times an ad was served• A digital asset must be seen one time by an individual

user– Link– Button– Icon– Search keyword– Graphic– Image – Headline– Banner– Line of text

• Ad space on Internet sold by number of impressions

E-Marketing Communication Audience measurement – cont’d

– Key words• Search words at search engine sites which generate

banner ads– Strengths

• Highly targeted– Click-through

• Weaknesses– Response may be tied to the creative– Banners enhance brand recognition without click-

through– Risky to the media

E-Marketing Communication How to measure

– Consumer-centric model• Panel of users, randomly selected• Clickstream data recorded via software on user’s PC

– Advantages• Statistically reliable• Data can be demographically segmented• Allows for comparison among Web sites

– Disadvantages• Reliable only for larger sites• Cannot accurately capture business users• Cannot adequately compensate for deficiencies

in population sample

E-Marketing Communication How to measure cont’d

– Site-centric model• User activity measured by analyzing Web server log data

– Thru self analysis– Thru auditing agencies

• Advantages

Less expensive than consumer-centric method

Can measure impressions

Can measure small sites• Disadvantages

Proxy server caching

Cannot record impressions in these cases

Cannot distinguish unique visits

Cannot produce demographic information

E-Marketing Communication Which media to buy?

– Effectiveness• Reaching the target market

– Needs good audience statistics• Efficiency

– Reaching the target market at the lowest possible cost

– Measured by CPM (cost per thousdand)• Ad cost / audience size x 1000• Useful for comparisons across media & vehicles

• Consider the audience• Consider the CPM• Which media are appropriate• Consider strengths and weaknesses of media

E-Marketing Communication Which vehicle to buy?

– Portals– Vertical sites– Niche sites– Other considerations

• Click-through %• Conversion rate

– Number of orders / number of visitors• Cost per click

– Total ad cost / number of clicks• Cost per order

– Total ad cost / number of orders• Average order value

– Sales / number of orders