Copyright © 2002 Pearson Education, Inc. Slide 8-1

Copyright © 2002 Pearson Education, Inc. Slide 8-1


CHAPTER 8

Created by, David Zolzer, Northwestern State University—Louisiana

E-commerce Marketing Communications


Learning Objectives

Identify the major forms of online marketing communications

Understand the costs and benefits of online marketing communications

Discuss the way is which a Web site can be used as a marketing communications tool


Online Marketing Communications

Methods used by online firms to communicate to the consumer and create strong brand expectations

Promotional sales communications suggest the consumer “buy now” and make offers to encourage immediate purchase

Branding communications focus on extolling the differentiable benefits of consuming the product or service


Online Advertising

A paid message on a Web site, online service, or other interactive medium

Different forms include: banner and rich media ads paid search engine inclusion and

placement sponsorships affiliate relationships


Online Advertising From 2000-2006

Page 414, Figure 8.1


Online Advertising by CategoryPage 415, Figure 8.2


Banner and Rich Media Ads

Banner ad displays a promotional message in a rectangular box at the top or bottom of a computer screen

Button is a permanent banner ad Pop-under ad opens underneath a user’s active

browser window and does not appear until the user closes the active window

Rich media ads employee Flash, DHTML, and Java, and streaming audio and/or video


Types of Banner Ads

Page 417,

Figure 8.3



Interstitial ad is a way of placing a full page message between the current and destination pages of a user

Superstitial is a rich media ad that is preloaded into a browser’s cache and does not play until fully loaded and the user clicks to another page



Banner swapping is an arrangement among firms that allows each firm to have it banners displayed on other affiliate sites for no cost

Banner exchanges arrange for banner swapping among firms


Most Popular Online Marketing Methods

Page 419, Table 8.1


A Paid Listing on Overture.com

A search on “software training” at Overture.com (formerly GoTo.com) brings up a list of companies that have paid for their inclusion and placement on the search results list. The amount each company has agreed to pay per clickthrough is shown.


Search Engine Policies on Paid Placement and Inclusion

Page 421,

Table 8.2


Sponsorship

A paid effort to tie an advertiser’s name to information, an event, or a venue in a way that reinforces its brand in a positive, yet not overtly commercial manner


Affiliate Relationships

Permit a firm to put it logo or banner ad on another firm’s Web site from which users of that site can click through to the affiliate’s site


Direct E-mail Marketing

E-mail marketing messages sent directly to interested users

Spam is unsolicited commercial e-mail


Other Online Marketing Communications

Online Catalogs provide the equivalent of a paper-based catalog

Public relations involves communicating with target audiences, or publics, using methods other than advertising


Beval’s Online CatalogPage 425, Figure 8.5


Marketing Metrics Lexicon

Page 429, Table 8.3


Online Marketing Metrics: Lexicon

Impressions is the number of times an ad is served

Clickthrough rate (CTR) is the percentage of people exposed to an online advertisement who actually click on the banner

Hits is the number of HTTP requests received by a firm’s server



Page views is the number of pages requested by visitors

Stickiness (duration) is the average length of time visitors remain at a site

Unique visitors is the number of distinct, unique visitors to a site

Loyalty is the percentage of purchasers who return in a year



Reach is the percentage of the total number of consumers in a market who will visit a site

Recency is the average number of days elapsed between visits

Acquisition rate measures the percentage of visitors who register or visit product pages



Conversion rate is the percentage of visitors who purchase something

Attrition rate is percentage of customers who purchase once, but do not return within a year

Abandonment rate is the percentage of shoppers who begin a shopping cart form, but then fail to complete the form

Retention rate is the percentage of existing customers who continue to buy on a regular basis


An Online Consumer Purchasing Model

Page 431,

Figure 8.6


Online Marketing Communications

Page 432, Table 8.4


The Costs of Online Advertising

Cost per thousand is what an advertiser pays for impressions in 1,000 unit lots

Cost per click is where the advertiser pays prenegotiated fee for each click an ad receives

Cost per action is where the advertiser pays only for those users who perform a specific action


Different Pricing Models for Online Advertisements

Page 433, Table 8.5


Traditional and Online Advertising Costs Compared

Page 435, Table 8.6


Web Site Activity Analysis

Page 436,

Figure 8.7


The Web Site as a Marketing Communications Tool

Domain names are the first communications an e-commerce site has with a prospective customer

Search Engine Optimization register with as many search engines as

possible ensure keywords used in the site description

match keywords likely to be used as search terms by a user

link the site to as many other sites as possible


Search Engine Ranking CriteriaPage 440, Table 8.7


Site Design Features That Impact Online Purchases

Page 441, Table 8.8


Web Site Functionality

Compelling experience Fast download times Easy Product List navigation Few clicks to purchase Customer choice agents Responsiveness

Documents

Copyright © 2002 Pearson Education, Inc. Slide 8-1