Class Discussion Notes MKT February 27, 2001

What is Integrated Marketing Communication (IMC)? –A comprehensive plan of communication that includes advertising, sales promotion, public relations, direct marketing, personal selling etc. to provide maximum communication impact with stakeholders How is IMC different than one-way communications? –All the elements of the marketing mix work together to build consistent brand images –Relies heavily on databases –Includes many stakeholders –Interacts with stakeholders –Uses a variety of media E-Marketing Communication

Hierarchy of Effects Model E-Marketing Communication High InvolvementLow Involvement Awareness Knowledge Cognitive (think) Awareness Knowledge Cognitive (think) Liking Preference Attitude (feel) Liking Preference Behavior (do) Conviction Purchase Behavior (do) Conviction Purchase Attitude (feel)

Hierarchy of Effects Model – cont’d –To build brand and inform Use MarCom tools that operate at the cognitive and attitude level –To generate online transactions Use MarCom tools that persuade and facilitate the completion of the sale Marketing Communication –Consists of planned and unplanned messages between Firms and customers Customers themselves –Should provide content value –Internet is different than other channels because of non- linearity E-Marketing Communication

–Internet advertising Creates awareness Provides information Creates positive image Remind users about product Builds brand equity Solicits response E-Marketing Communication

–Two categories of Internet advertising Brand advertising –CPM (cost per thousand) –Impression advertising Direct-response advertising –Focuses on building sales –Leverages Internet 2 way communication –Allows for impulse buying E-Marketing Communication

–Two Internet advertising methods –Least expensive –Usually text, but can include graphics Web site –Banners and buttons »Occupy designated space for rent »Stages of banner ads First – trained user to click thru Second – contained animated GIF Either continuous or fixed animation Third – interactive banners »Most banner ads operate by click thru Banner ad can become interactive point of sale »Keyword buys »Ad networks E-Marketing Communication

Web site advertising – cont’d –Sponsorships »Integrate editorial content and advertising »Provides additional exposure »Creates an impression of product endorsement »Cut through banner clutter »Provide opportunities for partnership »Sponsor should be clearly identified E-Marketing Communication

–Interstitials »Java-based ads that appear while the content is loading »Hard to execute »Increased waiting time »Superstitials Mini-video like ads timed to mouse movement Loads behind the scenes »Daughter windows (pop-ups) Separate window that overlays current browser window Annoyance factor »Most are visual E-Marketing Communication

–Public relations Content that is not advertising, sales promotion or transactional Informs, persuades or entertains Internet vs traditional PR –Speed of information updates –Interactive, multimedia format Brochureware –Informs customers about products –Press releases –Employment information –Employee information –Content must be constantly updated E-Marketing Communication

–Public relations – cont’d Interactive Web site –Entertain »Free games –Provide communication channel with customer –Provide information »Retail locator –Assist in site navigation »Search buttons, drop down menus, checkboxes –More expensive to maintain than brochureware Building community –Chat rooms, discussion groups –Usenet and LISTSERV E-Marketing Communication

–Public relations – cont’d Online events –Generate interest and site traffic –Corporate uses include seminars, workshops, discussions Online customer service –Allows for feedback via –Timely response is critical –More sophisticated tools E-Marketing Communication

–Sales promotion Includes coupons, rebates, product sampling, contests, sweepstakes, premiums 3 – 5 times higher response rates on the Internet E-coupons –Sometimes combined with direct mail –Customer doesn’t have to clip and send in –Coupon houses Sampling –Digital products such as software and music Contests –Require skill Sweepstakes –Involve chance E-Marketing Communication

–Personal selling Internet can generate sales leads –Direct marketing Communication through non-personal media to target individuals for the purpose of generating immediate response –3 advantages over direct mail »No postage »Convenient avenue for response »Customized –Disadvantages over direct mail »Appropriate lists »Spam E-Marketing Communication

– cont’d –May contain graphics or embedded links –Announcements –Promotional offers –Other communication – newsletters –Should always offer reader option to decline future e- mails –Lists can be generated »Web site registrations »Subscriptions »Product purchases –Lists can be purchased E-Marketing Communication

– cont’d –Opt-in, Opt-out »List brokers Guaranteed opt-in Higher response rate than regular lists Users are paid to respond Opt-out Unchecking the box on a Web page –Permission marketing »Offers consumers incentives to accept ads and E-Marketing Communication

– cont’d –Viral marketing »Forwarding to family and friends –Bulletin boards –LISTSERV –E-postcards –Spam »Unsolicited »Spam filters E-Marketing Communication