What’s Happening? The Go Jo! What type of appeal (s) is used in this ad? What type of executional framework(s) is used? A great innovative co-branding example

CHAPTER 9 E-active and Social Marketing

Web 2.0 o Companies shifting dollars to online communication o Changes consumer communications and interactions with companies o Pushing to “real-time” communications o Instant communications and instant service o Instant response to negative events Companies now employ individuals to monitor Twitter and social media sites

F I G U R E 9. 2 Building the Next Generation of E-Commerce Sites o Consider how users will interact with the brand - then develop means of brand engagement. o Allow for drill-down search results by grouping products around brands and common parameters. o Maximize traffic through effective search engine optimization. o Encourage consumer interaction via blogs, feedback applications, or customer reviews. o Develop a simple, secure checkout procedure.

E-commerce Incentives Cyberbait, what is it? o Financial Incentives o Reduced shipping costs o Labour costs for the organization o Convenience Incentives o 24 hours access o Enhances information search o Value-Added Incentives o Changing of purchase habits o Exclusive merchandise

o Seller opportunism o Security issues o Privacy issues o Current Purchasing habits F I G U R E 9. 4 Reasons Consumers are Wary of Purchasing Online

Interactive Marketing o Two-way communication and involvement o Internet ideal medium o Can track activity o Personalize messages o Emphasizes two primary activities o Targeting individuals o Engaging consumers

F I G U R E 9. 5 Online Interactive Tactics Source: Based on Larry Jaffee, “Follow the Money,” Promo, 20, No. 11 (November 2007 Sourcebook), pp

Types of Interactive Marketing o Online Advertising o Brand Spiraling o BLOGS o Online Social Networks

Online Advertising Banner Advertising  Accounts for 32% of online advertising  Can embed videos and widgets Video advertising is growing significantly, i.e., Youtube Search Engine Optimization (SEO)  Largest category of online expenditures  80% of web traffic begins with a search  Three methods of SEO  Paid search insertion  Natural emergence  Paid search ads

Brand Spiraling o The use of traditional media to drive traffic to a companies web site. o Purpose is to build and reinforce a brand’s position and to build brand loyalty. o One effective way to do this is to have personalized URL’S

BLOGS o Online musings o Power of online buzz o 47% go to social networks o Download coupons o Search for information o 45% go to social networks o Upcoming sales o Discounts o 22% read or write a product review on a blog

Company-Sponsored Blogging o Bluefly.com – Flypaper blog o Fashion news o New styles o Fashion faux pas o Do they work? o Blog visitors spend more o Online 23 hours/week versus 13 o Benefits o Reassure shoppers o Glimpse of how firm deals with customers o Release company information o Customers can voice opinion o Company controls site o Must be honest

Online Social Networks More than 75% of Internet users participate in social media  Facebook  Twitter  My Space  YouTube Social media has become so important for IMC plans

Consumer-Generated Advertising Crowdsourcing  The use of individuals and crowds in creating advertisements. This may be intention or in some cases by accident.   Goal is to create consumer buzz  Alternative to using a formal agency in some cases Consumer-generated advertising  Also called participatory marketing  Consumer generate ads  Spread via Internet, e.g. YouTube  Effectively used in conjunction with sales promotions, like contests, e.g. Doritos

Other forms of Electronic Communications o Consumer-generated reviews (online reviews of brands) o o Viral marketing o Advertisements o Online newsletters o Streaming videos o Games and contests