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E-Active Marketing Chapter 9
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Chapter Overview Internet has changed U.S. culture Global customers, competition E-active marketing e-Commerce + Interactive marketing Consumer e-commerce Business-to-business e-commerce Interactive marketing methods
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E-Commerce Selling of goods/services on the Internet >50% of U.S. households use e-commerce Online sales is 12% of total U.S. retail sales E-commerce sites also used for info gathering
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E-Commerce Components Catalog Shopping cart Payment procedure Customer service FAQs Public relations Optional elements
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Cyber Shopping Categories Travel$53B Office, home, and garden$16B Computers & accessories$12B Apparel$12B
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Financial Incentives Attract first-time purchaser Effective incentives Reduced price Free shipping E-coupon Incentives must be meaningful and changed periodically Reduces costs through Lower shipping costs Lower labor costs Lower personnel costs
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Convenience Incentives E-commerce available 24/7 Used to obtain product information Update and change Web site Easy to locate merchandise Convenience services Event registries Popular items Measurement charts
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Concerns About E-Commerce Seller opportunism Security issues Information privacy issues Brick-and-mortar purchasing habits
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Value-Added Incentives Change purchasing habits – long term Personalized shopping Examples Merchandise available only online Free online courses Free information, household tips
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Interactive Marketing Two-way communications Customer involvement Tracking of Internet activities Personalize targeted
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Online Interactive Tactics Newsletters
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Online Advertising Increase in online budgets Effective method for reaching today’s consumers Becoming “standard” Click-through response rate – 0.27% Traditional integration - Brand spiraling
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F ig. 9. 8 Types of Online Advertising Display or banner ad Classified ads Search advertising Media/video ads Online Advertising
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Banner Advertising First online advertising Accounts for 32% of online advertising Can embed videos and widgets Targeted display ads Auction exchanges Matches audience
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Online Advertising - Rates CPMs will rise more than 75% over next 5 years Overall growth of online advertising will grow more slowly. Average CPM will rise from ~$2.66 in 2012 to $4.68 by 2017. Largely due to “Visible Impression Standard” Source: Advertising Age, October 9, 2012, “Forrester Reduces Its Forecast for Online Spending”
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Online Advertising - Rates Visible Impression Standard: Advertisers pay only for ads that are visible on the screen. May mean fewer impressions; offsetting CPM gains. Online growth rate overall for 2012 ~17%, down from 20% in 2011.
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Classified and Media/Video Advertising Online classified ad popular Media/video ads fastest-growing format Mobile phones and hand-held devices Dwell time, rate higher for video ads
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Blogs Online musings Power of online buzz 50% go to social networks Download coupons Search for information Upcoming sales Discounts 22% read or write a product review on a blog
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Company-Sponsored Blogs Effective? Blog visitors spend more Online 23 hours/week versus 13 Benefits Communicate! Let customers see who you are. Reassure shoppers Customers can voice opinion Company controls site Must be honest Identify your company if you contribute significantly to a site.
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Online Social Networks Facebook, YouTube, etc. Developing social network presence Specific product page – Sprite Posting of ads on social networks (Nike) Possible privacy issues Consumer-generated advertising “Crowdsourcing”
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Consumer-Generated Reviews Amazon-com – leader Retailers – online reviews of brands Early adopters Implications Negative reviews, Low ratings Consistent quality products Information for Marketing plans Product modifications Service strategies
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E-mail Campaigns It is essential to: Integrate with other marketing channels Be based on web analytics Combine with future web analytics It is beneficial to: Integrate with Web site’s content management Integrate with a customer relationship program
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Newsletters E-mail newsletters Build brand awareness Tie-in and drive web traffic Customers newsletters, subscriptions Provide value Advertising on other newsletters Build brand awareness Drive web traffic Pick newsletters that are relevant
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Web Site Design Ensure Web site functions properly Cost of acquiring a new customer E-commerce company $100 Other companies up to $500 Design to meet function, match target market Front page often skipped Design every page with complete information
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