Chapter 5 Electronic Commerce | Online Marketing Communication Source: E-Commerce by K.C Laudon Organize by - Qasim Rafique System Analyst (Hailey College of Commerce | University of the Punjab

Online Marketing Communications Every thing you do to promote your company's products and services to potential customers is known as marketing. Online marketing communications: Methods used by online firms (E-Commerce Businesses) to communicate with consumer and create strong brand expectations. Brand : A set of expectations that consumers have when consuming, or thinking about consuming, a product or service from a specific company. Marketing communication have a dual purpose: One purpose of marketing communications is to develop and strengthen a firm’s brands by informing consumers about the differentiating features of the firm’s products and services. Second, marketing communications are used to promote sales directly by encouraging the consumer to buy products (the sooner, the better). Copyright © 2010 Pearson Education, Inc.

Forms of online Marketing Communication There are many different forms of online marketing communications, including Online advertising Online advertising, also called online marketing or Internet advertising, is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers. Copyright © 2010 Pearson Education, Inc.

Display Ads (Banner Ads , Pop-up) A banner ad displays a promotional message in a rectangular box at the top or bottom (some time anywhere) of a computer screen. A banner ad is similar to a traditional ad in a printed publication but has some added advantages. If clicked on, it can b ring a potential customer directly to the advertiser’s web site. It also much more dynamic than a printed ad: it can present multiple images or otherwise change its appearance. Graphic Interchange Format , Joint Photographic Experts Group , Portable Network Graphics Copyright © 2010 Pearson Education, Inc.

Display Ads (Banner Ads , Pop-up) Banner ads sometimes feature Flash video and animations or animated GIFs, which display different images in relatively quick succession, creating an animated effect. IAB (Interactive Advertising Bureau ), an industry organization, has established voluntary industry guidelines for banner ads. A full banner, the most common, is 468 pixels wide by 60 pixels high with a resolution of 72 dpi (dots per inch) and a maximum file size of 13kb. Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Display Ads (Banner Ads , Pop-up) Pop-up ads Banners and buttons that appear on the screen without the user calling for them. Provoke negative consumer sentiment Pop-under ads: One type of pop – up ad is the pop – under ad that opens underneath a user’s active browser window and does not appear until the user closes the active window. The ad remains visible until the user takes action to close it. Pop –ups can appear prior to display of the consumer’s target page, during, or after the display (page) on leaving. Unfortunately, studies have found that pop – up ads are twice as effective in terms of click – through rates than normal banner ads ( although this may occur because people get confused about how to close the ads and end up unintentionally clicking to the advertised site). A number of ISPs and search engine/ portal sites, such as Yahoo, Google, AOL, and Earthlink now offer consumers pop – up blocking toolbars, as do web browsers such as Mozilla FireFox and Internet Explorer 7. Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Rich Media Rich Media Ads Types A Rich Media ad contains images or video and involves some kind of user interaction.  Types Interstitials ((interstitial means "in between") ) Superstitials Copyright © 2010 Pearson Education, Inc.

Rich Media Ads | Interstitial Interstitial ads are placed between the current Web page a user is viewing and the destination page for the link they have clicked. However, users may become annoyed because they believe that while they are waiting for the ad to load, the page they want to view is delayed. Copyright © 2010 Pearson Education, Inc.

Rich Media Ads | Superstitials Superstitials are animated ads that play on top of the content of a web page. The Superstitials is an ad format that appears between two content pages, just like a commercial break on television. The pre-loading ensures that the ads don’t slow the browsing experience. Copyright © 2010 Pearson Education, Inc.

Rich Media and Video Ads Superstitials, on the other hand, are preloaded into the cache of the browser and do not play until they are fully loaded. When the file is completely downloaded, just like an interstitial, it will wait until the user clicks a link to move to a new page before it opens in a separate window. The Superstitials is an ad format that appears between two content pages, just like a commercial break on television. The pre-loading ensures that the ads don’t slow the browsing experience. Copyright © 2010 Pearson Education, Inc.

Search Engine Advertising Just as search engine sites enable users to search the entire web for particular documents. Search engines Almost 50% of online ad spending in 2009. search engine sites have charged firms for inclusion in the search engine index. This amounts to a guarantee that their firm will appear prominently in the results of relevant searches. When users enter a search term at Google, MSN Search, Yahoo, or any of the other web sites serviced by these search engines, they receive two types of listing: sponsored links, for which advertises have paid to be listed (usually at the top of the search results page) and unsponsored “organic” search results. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Paid inclusion Copyright © 2010 Pearson Education, Inc.

How Search Engine Marketing? By Search engine optimization: First communication e-commerce site has domain name ( must be Short , Memorable, Not easily confused with other domain names, Difficult to misspell). Register your site map (along with domain name) with as many search engines as possible Ensure keywords used in site description (in title tag, metadata tag, alt tag, headings such h1, h2, h3 etc ) match keywords likely to be used as search terms by user Link site to as many other sites as possible By Keyword advertising Ad Words program which allowed advertisers to bid for placement of short text ads on Google search results. E.g., Google AdWords By Network keyword advertising (context advertising) E.g., Google AdSense Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Sponsorships Sponsorship is the fastest growing form of marketing . Sponsorship typically are more about branding than immediate sales. It’s just a case of mirroring existing ‘real world’ sponsorship arrangements in the ‘virtual world’. Online sponsorship is a branding tool, its purpose is to increase brand awareness and favourability and to create a ‘warm feeling’ around a brand. For example, Jazz sponsor the Cricket match in the Pakistan and there name (jazz) will be prominent when fans are searching online for information about their teams. Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Referrals (Affiliate Relationship Marketing) Affiliate relationship marketing, permits firm (merchant) to put logo or banner ad on another firm’s (merchant) Web site from which users of that site can click through to affiliate’s site (originating site). Millions of personal web sites have Amazon and other logos which when clicked will take the visitor to amazon, and generate revenue for the web site. Among large firms, affiliate relationships are sometimes called “tenancy deals “ because they allow a firm to become a long – term “tenant” on another site. Amazon has tenancy relationships with a number of retailers. When a sale is made through the affiliate's site, the referring affiliate (where logo is placed) receives a commission. Pure Affiliation Relationship Marketing : When Two web sites may sell complementary products and the firms may strike an affiliate relationship to make it easier for their customers to find the products they are looking for. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Commission Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Online Catalogs Grid displays Full – page spreads Online catalog is a popular way to market a company's offerings. Online Catalog are the equivalent of a paper – based catalog. An attractive, well-designed catalog can sell products or services for just about any business. Businesses of all sizes often use catalogs in their marketing plans. The basic function of a catalog is to display the merchant’s wares. Online catalog typically contains a color image of each available product and a description of the item. As well as size, color, material composition, and pricing information etc. Also with read more or detail button or some time it is done by clicking on the image There are two different types of online catalog: Grid displays Full – page spreads Copyright © 2010 Pearson Education, Inc.

Grid Display Most online retailers use a grid display in which multiple products are shown in very small postage –stamp photos. For example catalog on : Amazon.com LLbean.com Gap.com Shophive.com Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Full – Page Spread The other alternative is to use larger page spreads using large photos to display one or two products. For example catalog on Restorationhardware.com The cost of building an online catalog ranges from $30,000 to $50,000 for smaller web sites. Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

How do companies integrate online catalogs with physical catalogs? Most direct mail catalog companies continue to use physical direct mail catalogs, and pure online companies have begun to supplement their online advertising with physical catalogs. Direct mail companies can increase their operational efficiency by sending electronic catalogs to customers before sending out the physical catalogs. The flow of orders increases as the overall awareness of the company brand increases when both (online and offline catalog) channels are used simultaneously. Copyright © 2010 Pearson Education, Inc.

Social Marketing Blog advertising “Many-to-many” model Uses digitally enabled networks to spread ads for examples Blog, social network, games advertisement. Blog advertising Blog marketing is the term used to describe internet marketing via web blogs. These blogs differ from corporate websites because they feature daily or weekly posts, often around a single topic. Typically, corporations use blogs to create a dialog with customers and explain features of their products and services. Blog Advertising enables you to promote your products and services on blogs that are targeted to your niche. Blogger will include links and targeted ads and text within a post / some other area of the site for an advertiser. Copyright © 2010 Pearson Education, Inc.

Social network advertising Marketing and advertising that reaches potential consumers via social networking website, such as MySpace, Facebook and Bebo, You tube etc. They appear at the edges of users' profiles and can be targeted based on keywords in their profiles to match their stated interests or recent activities. Copyright © 2010 Pearson Education, Inc.

Game advertising Today most games are played in social environments with multiple players over the internet. Marchants can place advertisement in Downloadable “advergames” Placing brand-name products within games In-game advertising (IGA) refers to the use of computer and video games as a medium in which to deliver advertising. Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

E-mail Marketing E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial messages to an audience. E – mail marketing and advertising is inexpensive. The major advantage of direct e-mail marketing is that because e-mails are sent to interested users who have elected to “opt-in or permission ”. A common example of permission marketing is a newsletter sent to an advertising firm's customers. Such newsletters inform customers of upcoming events or promotions, or new products. In this type of advertising, a company that wants to send a newsletter to their customers may ask them at the point of purchase if they would like to receive the newsletter. Copyright © 2010 Pearson Education, Inc.

E-mail Marketing In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing. Sending e-mails with the purpose of enhancing the relationship of a merchant with its current or previous customers and to encourage customer loyalty and repeat business, Sending e-mails with the purpose of acquiring new customers or convincing current customers to purchase something immediately, The response rates are much greater than other forms of online marketing communications. Copyright © 2010 Pearson Education, Inc.