1. Copyright © 2003 by Marketspace LLC Mohammed, Fisher, Jaworski, Paddison Internet Marketing, 2 nd Ed Chapter 9 Lecture Slides Communication Exhibits and Tables

2. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Communication — Today’s Objectives  Objectives will be to: Explore how the Internet affects marketing communications Examine the marketing levers — offline and online Discuss the six steps of the communication process Explore integrated implementation of levers across the four relationship stages

3. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Case Study Conclusion Chapter 9: Communication

4. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Costumer-Centric Marketing Communications

5. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Chapter 9: Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Case Study Conclusion

6. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–1: The Effects of the 2Is on Communication Allows more targeted communications Individualized marketing communications are more relevant to the consumer Individual controls information flow Facilitates relationship building through two- way communication Allows tracking of consumer response to marketing communications Allows consumers to specify preferences Individualization Interactivity Communication

7. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Banner Ad (to promote awareness) Personalized Website Individualized offerings Permission e- mails Personalized Website Individualized offerings Permission e- mails Website AwarenessAwareness CommitmentCommitment ExplorationExploration 2Is User clicks on banner to find out more User can set up the webpage according to personal preferences, register for e-mails, give feedback, or make a purchase One Seamless Experience Exhibit 9–2: The 2Is Streamline Advancement Through the Stages

8. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Chapter 9: Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Case Study Conclusion

9. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC MassPersonal Online Offline Outdoor advertising (Billboards) Yellow pages Radio Televisio n Brochure s Newspapers Sponsorship s Magazine s Newsletter s Point-of- purchase displays Customer service Direct mail Telemarketing Sales force / face-to- face Banner ads Rich media Search engines Interstitial s Classifieds and listings Interactive television Websites E-mail marketing Personal websites Exhibit 9–3: Online and Offline Levers Public relations Dynamic ads Wireless devices

10. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–4: Profiles of Online Media Types

11. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Supporting Slide 9–A: Banners Come in Various Shapes and Sizes

12. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Aggregate number of user clicks on a banner ad. Ad Clicks Number of times a banner ad is downloaded to a user’s browser and presumably looked at. Ad Views (Impressions) Percentage of ad views that are clicked upon; also called “Ad Click Rate.” Click-ThroughClick-Through Formula used to calculate what an advertiser will pay to an Internet publisher based on number of click-throughs that a banner generates. CPC (Cost-per-click) Cost per thousand impressions of a banner ad. A publisher that charges $10,000 per banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500). CPMCPM Measurement recorded in server log files that represents each file downloaded to a browser. Since page design can include multiple files, hits are not a good guide for measuring traffic at a website. HitHit Number of individuals who visit a website in a specified period of time. Requires the use of registration or cookies to verify and identify unique users. Unique Users A series of requests made by an individual at one site. If no information is requested for a certain period of time, a “time-out” occurs and the next request made counts as a new visit. A 30 minute time-out is now standard. VisitsVisits Exhibit 9–5: Internet Ad Terms

13. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–6: Interstitial Example Pop-up interstitial

14. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–7: Search Engine with Targeted Ad Banner ad Keyword search Banner ad linked to keyword search

15. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–8: Sponsorship Example Sponsorship

16. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Supporting Slide 9–B: Targeted E-Mail

17. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Chapter 9: Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Case Study Conclusion

18. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Step 1 Step 3 Step 2 Step 4 Step 5 Supporting Slide 9–C: Six Steps of the Communication Process Step 6 Identify Target Audience Determine Communication Objective Develop Media Plan Create the Message Execute the Campaign Evaluate the Effectiveness of the Campaign

19. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Communication CommunicationCriteriaMediaCriteria Choose Choose Media Mix Media Mix Tie Back To Tie Back ToOverallPlan Allocate AllocateSpending Behavioral objectives Available spending Customer segments Ability to further behavioral objectives CPM Ability to reach target segments Direct mail, Internet, broadcast, print, point- of-sale, etc. Come back 360 and tie media plan back to communications plan (e.g., will this media plan drive the trial or awareness required to deliver your bottom line) Allocation of spending across media mix elements and time periods based on relative priority Exhibit 9–9: A Process for Defining Media Choice and Mix

20. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–10: Media Scheduling Patterns Year Constant Periodic Advertising period Continuous, same intensity Continuous, varying intensity Intermittent, same intensity Intermittent, varying intensity Ads may run through- out the year or at selected times: Within an ad period, different media schedules may be used:

21. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–11: Genuity Ads

22. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–12: Genuity Website

23. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Supporting Slide 9–D: Point-Counterpoint: Which Online Performance Measure Is Best? Point-Counterpoint

24. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Chapter 9: Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Case Study Conclusion

25. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–13: Exploring the Levers Across the Relationship Stages Television, iTV Magazines and newspapers Radio Yellow pages Billboards / outdoor AwarenessAwareness Television, iTV Magazines and newspapers Radio Exploratory / Expansion CommitmentCommitment Terminate marketing DissolutionDissolution Banner ads Search engines Listings Classifieds E-mail Direct mail Telemarketing Permission e-mail Website Personalized pages Customer service Sales force Rich media ads and dynamic ad placement Website E-mail Permission direct mail Direct mail Telemarketing Public relations

26. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Chapter 9: Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Case Study Conclusion

27. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–14: EBay Sponsored Link A Google search for “digital camera” and “Olympus” brings up this eBay-sponsored link

28. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–15: EBay’s Message Board as Expansion Lever EBay uses its message boards to effectively expand the use of its platform

29. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Exhibit 9–16: EBay/Disney Cobranded Site Clicking on “Disney Auctions” from Disney.com takes visitors to this cobranded site, which combines eBay’s look- and-feel with Disney’s well-known brand.

30. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Chapter 9: Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Case Study Conclusion

31. Last Updated: 07/09/03 Copyright  2003 by Marketspace LLC Communication — Conclusion Effective marketing communications must be integrated and work together with synergy, and they must be consumer-centric The communication marketing levers include various communication types that can be organized into the following categories: mass offline, personal offline, mass online, personal online The communication process involves six steps: 1) Identify the target audience, 2) determine the communication objective, 3) develop the media plan, 4) create the message, 5) execute the campaign and 6) evaluate the effectiveness of the campaign Specific levers can be applied that are appropriate for each relationship stage