1. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. E-Marketing Lecture 8 Sandeep Krishnamurthy

2. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. FSI vs. Internet Coupons q Approximately 55 million households still receive the Sunday newspaper, compared to the 58 million people on- line. q The cost of producing a direct-mail FSI is estimated at $0.30 per household. q The cost of producing an Internet coupon is estimated at $0.03 per household.

3. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. Advantages of Internet Coupons q Better targeting= lesser wastage. –Opt-in schemes –Consumers print just before consumption q The redemption rate for Internet coupons is in the neighborhood of 25%.(But, Internet coupons are only 0.001% of all coupons- today.)

4. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. Problems with Internet Coupons q Consumers can modify the face value. Solutions- –Using final formats such as Adobe Acrobat. –Custom-made type fonts –Complex backgrounds –Barcode –www.echeck.org –www.supermarkets.com (once a coupon is used, system blocks re-use)

5. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. Problems with Internet Coupons q Low consumer awareness, knowledge. q Problems with opt-in schemes: –You may not get the coupons you want. –Have to give out information, fill out forms.

6. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. Report on Task q Which four coupon websites did you visit? q What did you find?

7. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. Internet Free Stuff q Samples q Shareware q Trial packs

8. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. Report on Task q Which free stuff website did you like? q Why?

9. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. Gift Certificate Models q Gifts for on-line or off-line stores? q Make money from clients or customers or both? q Value added. q Flooz.com provides a gift currency.

10. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. Sweepstakes and Contests q Run by large brands. q In-class assignment- –You have already seen www.contestworld.com –Now, visit www.sweepstakesonline.com, www.onlinesweeps.com, www.iwon.com –Which websites did you like/dislike? Why?

11. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. Affiliate Programs q Traffic generation strategy q Company B places company A’s logo on its website. q Interested users will click on the logo and go to company A’s site. q Company A then provides company B with a commission- –regardless –if they buy or download something

12. Copyright  1999, Sandeep Krishnamurthy. All rights reserved. In-class assignment q Visit www.clickquick.com/affiliate q Choose two categories- let us make one category=books. q Read the reviews of the top 10 affiliate programs. q Share your findings with a friend and then we will have a class discussion about it.