E-Marketing Communication Tools. Chapter 12 Objectives After reading Chapter 12, you will be able to: Define integrated marketing communication (IMC)

E-MarketingCommunication Tools

Chapter 12 Objectives After reading Chapter 12, you will be able to:

Define integrated marketing communication (IMC) and explain the importance of the hierarchy of effects model.

Discuss how marketers use the Internet for advertising, marketing public relations, sales promotions, direct marketing, and personal selling.

Identify several emerging IMC tools. Describe the most effective online IMC

tactics.©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 12-2

Will it Blend? Blendtec , a supplier of commercial blenders to

Starbucks and others, produced a video in which the CEO blended unusual products such as a garden rake and a golf club. The video, uploaded to YouTube, received 3.9

million views in an 8-month period. The Will It Blend? Campaign illustrates the

potential value of viral marketing and connecting with consumers online.

Do you think that such campaigns can build awareness? Can you think of other examples?

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 12-3

E-MARKETING COMMUNICATION Internet marketing is a powerful way to start

and strengthen relationships with customers. Users are in control

Can delete unwanted incoming e-mail Can impatiently click away when website don’t

quickly deliver The key to success include

Providing relevant, interesting messages Engaging internet users by attracting them

Marketing communication (MarCom) tools that Use technology to build brands Important keys to capturing attention and

winning long-term customer relationships


Integrated Marketing Communication (IMC) IMC is a cross-functional process for planning,

executing, and monitoring brand communications. The goal is to profitably acquire, retain, and grow

customers. Why IMC is a cross-functional?

Because every touch point a customer has with a firm or its agents helps to form brand images

Profitable customer relationships are key to a firm’s existence

IMC strategy requires a thorough understanding of target markets, the brand, its competition, and other internal and external factors.

Many IMC experts agree that IMC should Be more strategic Be more the promotion messages Include one & two way communication


Marketing Communication Tools MarCom consists of both planned and unplanned

(word of mouth & publicity) messages between firms and customers and among customers. Unplanned messages are

Difficult to manage Unplanned e-mail has spawned rapid growth

E-marketers can enhance the effectiveness and efficiency of MarCom by using innovative technologies, such as text and multimedia messages, databases, blogs, digital receiving devices, etc.

Internet MarCom may include advertising, sales promotion, marketing public relations (MPR), direct marketing, and personal selling.


IMC Goals and Strategies AIDA model

“awareness, interest, desire & action”

Hierarchy of Effects Model “think, feel, do”


IMC Goals and Strategies; Cont. The AIDA model and hierarchy of effects

model help guide selection of online and offline MarCom tools to meet their goals. Both models recognize that consumers first

become aware of a product before they develop feelings and purchase it. Aware & learn / think Positive or negative attitude / feel Purchase the product / do

The models can help marketers select appropriate communication objectives and strategies, such as: Build brand equity. Elicit a direct response.


Branding Versus Direct ResponseBrand Communication Online

Direct Response

Goal Build brand awareness & Create brand Image

Motivate actions

Works at Awareness & attitude levels of the hierarchy of effects model (heads & hearts)

Behavioral level (do)

Tools Advertising Advertising

PR. Sales promotions, Direct MKT., Personal selling

Keyword search, search display Ads., Branded sponsorship, video Ads.

Keyword search, email, Referral programs

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL12-9

INTERNET ADVERTISING Advertising is nonpersonal

communication of information through various media, usually persuasive, about products or ideas and usually paid for by an identified sponsor.

All paid space on a website or in an e-mail is considered advertising.

Internet advertising parallels traditional media advertising, in which companies create content draw an audience and then sell space to outside advertisers.


Trends in Internet Advertising Online advertising reached $23.5 billion

in 2008, $22.7 billion in 2009. In 2009, 14.3% of ad dollars were spent

online. Most spending came from:

Retail Telecom Financial services Automotive Computing


Internet Advertising Formats & Types Keyword search is the fastest growing

and most important technique. Keyword search is part of a larger strategy

called search marketing. Search Marketing is the act of marketing a

web site via search engines weather to: Improve rank in listings Or Purchase paid listings Or combine the previous with other

search engine – related activities


Display Ads Display ads are the second largest.

Not listed anymore as an advertising format due to its rapid decline in use and effectiveness for direct response goals, and growth of larger and different ad sizes.

Then why its still used? They increase brand awareness Can generate high click-through rates

Display ads include traditional banners and many additional sizes.

Formats include rectangles, pop-ups, banners, buttons, and skyscraper display ads.


Rich Media Ads Rich media ads are interactive, at least

offering click-through. Rich media ads often use Flash animation

to attract attention. Many formats can be rich media,

including: Banner ads. Interstitial ads. Floating ads. Expanding ads. Polite ads.


Rich Media Ads

Floating ads


Banner ads

Contextual Ads Ad servers serve ads

into web sites as appropriate users view pages. Facebook also offers

specific ad targeting based on user profiles.

This process is also the basis for Google’s AdSense program. Contextual ads

(keyword search) are the largest category of online advertising.


E-Mail Advertising E-mail advertising is

the least expensive type of online advertising.

Advertisers can purchase space in another firm’s e-mail content, such as newsletters.

Note that email messages sent from a firm directly to Internet users are direct marketing, not advertising.


SponsorshipsAlso called advertorialsSponsorships integrate

editorial content and advertising.E.g. Fashion

advertisers get mentions of their clothes in an article

Sponsorships allow great interactivity and help firms build synergistic partnerships that provide useful content.

Sponsor disclosure is an important issue for e-marketers.


Mobile Advertising Mobile Internet usage

grew about 25% annually from 2007-2010.

Techniques for mobile devices include: Display ads Messaging Location-based ads Paid search Video Voice Applications

Advertising on mobile devices is likely to increase.


Marketing Public Relations (MPR) Public relations includes activities that

influence public opinion and create goodwill. MPR includes brand-related activities and

nonpaid, third-party media coverage to positively influence target markets.

MRP is the portion of PR directed to the firm’s customer and prospects in order to build awareness and positive attitudes about its brands.

MPR Activities using internet activities include: Website Online events Podcasts. Build a Buzz online.


Marketing Public Relations (MPR), Cont. A website

Can serve as an electronic brochure May include

product or service information, press releases, company information, career opportunities and investor relations’ information order status

Advantages of using the Web for publishing product information low-cost alternative to paper brochures product information are always updated reach new prospects


Marketing Public Relations (MPR), Cont. Online events

Designed to generate user interest Can draw traffic to a site May include

online fashion shows, seminars, workshops and talk shows

Users can download video podcasts Podcasts “A digital media file that is

distributed over the Internet using syndication modeling to maximize exposure”

Replaced by online video Online video and video podcasting are very

similar ©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

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Marketing Public Relations (MPR), Cont. Viral marketing can create buzz online

Online viewers are more plentiful, but less loyal

Social networking sites offer instant exposure to millions of potential customers.

Suggestions for building a buzz online using MPR provide engaging and fresh content offer RSS feeds use online newswires use social media press releases find influential bloggers to assist


Sales Promotion Offers Sales promotions are short-term incentives of

gifts or money that facilitate the movement of products to the end user.

Sales promotions activities include Coupons Rebates Samples Contests, sweepstakes, and games

2010 usage estimates are 6%-75% of Internet users.

Online sales promotions works especially to entice consumers to change their behavior in the short term.

3-5 higher rates with online promotions than with direct postal mail.

Sales promotions do not help build customer relationships in the long term.©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 12-24

Sales Promotion Offers, Cont. Sampling

Sample digital products prior to purchase

Software companies allow for free demo versions (beta)

Music companies allow for free 30 second samples of songs

The Internet is more efficient for firms to order from each other


Sales Promotion Offers, Cont.Contests, sweepstakes, and gamesMany sites hold contests and sweepstakes to draw traffic and keep users returning. Contests

Require skill like trivia questions

Can dramatically increase Web traffic

Sweepstakes Pure chance drawing

Games Advergames are a

combination of online advertising and gaming


Sales Promotion Offers, Cont. Sales Promotions Metrics

Marketers need to know how sales promotions contribute to the overall communication goals

Selected metrics depend on campaign goals By measuring how customers use and link

from their promotions, e-marketers can measure what is working most efficiently.

Must plan to collect information prior to starting the sales promotion


Direct Marketing Direct Marketing is any direct communication to a

consumer or business recipient that is designed to generate a response in the form of an order (direct order), a request for further information (lead generation),

and/or a visit to a store or other place of business for

purchase of specific product or service (traffic generation).

Online techniques include: Outgoing e-mail. Targeted online ads that solicit a direct response. Text messages or Short Message Services (SMS). Multimedia and instant messages.


E-Mail E-mail, used by 89% of Internet users, is the

Internet’s killer application. 75% of marketers invest in e-mail campaigns.

E-mail has advantages over postal direct mail marketing. No postage or printing costs. Immediacy and convenience. E-mails can be automatically individualized. Faster than postal mail.

E-mail also has disadvantages. Spam Addresses can be blocked E-mail lists are hard to obtain Difficult to match e-mail and postal mailing addresses

(how to build lists)©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 12-29

E-Mail, Cont. A new technique is through e-mail

newsletters. Many firms send out periodic e-mail newsletters An excellent tool for communicating with clients Benefits are

Regularly and legitimately promoting the company name to clients

Personalizing the communication with tailored content

Positioning the company as an expert in a subject

Pointing recipients back to the company website Being easy for clients to pass long to others Paying for themselves by carrying small

advertisements©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL 12-30

Permission Marketing: Opt-in, Opt-out When consumers opt-in, they are giving

permission to receive commercial e-mail. Marketers should obtain lists that are

guaranteed to be 90% opt-in. Opt-in techniques are part of a bigger

marketing strategy called permission marketing or “turning strangers into customers.”

Opt-out is when users have to uncheck the box on a web page to prevent being put on the e-mail list.


Rules for Successful E-mail Marketing Campaigns Use opt-in for being more customer oriented Check E-mail (Blacklists) reputation through ISP

filters Use a professional email address, company based

email Not Yahoo Gmail or Hotmail Make it easy to unsubscribe Use micro-segmentation Smaller lists of relevant customers Personalize email Reputation is at risk Use creative layouts Offer various opportunities to interact with offer Use metrics to track success rates


Viral Marketing Also known as word of mouse. Occurs when users forward e-mails containing

commercial information Viral marketing is the online equivalent of

“word of mouth” marketing. Success stories include

Will it Blend? Hotmail Movies such as Blair Witch Project and American

Psycho were promoted using viral marketing techniques.

Burger King’s Subservient Chicken campaign drew 14 million visitors in the first year.


Text Messaging Messaging may include SMS (short messaging

services) or IM (instant messaging). Short Message Services (SMS) are up to 160 characters

of text sent over the Internet with a Personal Digital Assistant (PDA), cell phone or smartphone (Twitter).

Instant Messaging Short messages sent to and from online users Not commonly used for PDA or handheld customers

Multimedia message service (MMS) is not commonly in use yet because of handheld capability

SMS differs from e-mail Marketers can build relationships by sending

permission-based information where consumers want to receive it.

SMS use continues to grow in all industrialized nations.


Location-Based Marketing Location-based marketing includes

promotional offers pushed to mobile devices and based on the user’s physical location.

Must be used in conjunction with either a global positioning system (GPS) in handheld device or automobile (telematics)

Google is on the leading edge with its local search.


Direct Marketing Metrics Response rate and ROI are the most

appropriate metrics for direct marketing campaigns.

E-mail receives a widely varied and generally low click through rate, but the highest ROI of any direct media.

Many firms use this information to devise tactics to build databases and measure success in terms of record growth. In a study of SMS campaigns, 94% of

messages were read by recipients and 23% showed or forwarded messages to a friend.


Spam Spam is unsolicited e-mail. The CAN-SPAM Act appears to have little

ability to stop spam. Spammers routinely harvest e-mail

addresses from newsgroup postings (or from universities and colleges public directories) and then spam the members.


Privacy Users will give information if that

information is not likely to be shared and will provide value

Users don’t mind their tendencies and behaviors being tracked if they are for specific purposes


Personal Selling Personal selling involves real time

conversation between a salesperson and customer, face-to-face, by telephone, or by computer.

Some companies provide real time sales assistance online. Name a company has a live chat feature.

The Internet can offer technology to complete the sales transaction, or to simply provide sales leads (asking contact information when downloading a pdf. file such as whitepaper).


IMC Metrics Set specific objectives for IMC campaigns

and then track progress toward those goals by monitoring appropriate metrics.

The most important metrics are number and dollar amount of sales, and all the rest help improve those numbers in either the short or long term.


Effectiveness Evidence Display ads are generally ineffective. Only

0.2% of all users click on them. Display ads can be successful at increasing

brand awareness Online ads that were bigger or contained

rich media delivered greater impact. Banner ads are generally ineffective Click through results vary greatly There is increasing evidence that online and

offline advertising work well together.


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Copyright © 2012 Pearson Education, Inc. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

©2012 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL

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E-Marketing Communication Tools. Chapter 12 Objectives After reading Chapter 12, you will be able to: Define integrated marketing communication (IMC)