1. Norton UniversityBusiness Concepts and Social Issues 1 PART TWO Business Concepts and Social Issues

2. Norton UniversityBusiness Concepts and Social Issues 2 Chapter 4: E-commerce Marketing Communication

3. Norton UniversityBusiness Concepts and Social Issues 3 Learning Objectives - Identify the major forms of online marketing communications. - Understand the costs and benefits of online marketing communications. - Discuss the ways in which a Web site can be used as a marketing communications tool.

4. Norton UniversityBusiness Concepts and Social Issues 4 WHAT ARE MARKETING COMMUNICATIONS? Marketing communications have a dual purpose: BRANDING and SALES.

5. Norton UniversityBusiness Concepts and Social Issues 5 WHAT ARE MARKETING COMMUNICATIONS? One purpose of marketing communications is to develop and strengthen a firm’s brands by informing consumers about the differentiating features of the firm’s products and services.

6. Norton UniversityBusiness Concepts and Social Issues 6 WHAT ARE MARKETING COMMUNICATIONS? Another purpose of marketing communications are used to promote sales directly by encouraging the consumer to buy products. (The sooner, the better).

7. Norton UniversityBusiness Concepts and Social Issues 7 WHAT ARE MARKETING COMMUNICATIONS? There are a number of different forms of marketing communications: - Banner and rich media/video ads - Interstitial ads - Superstition ads - Paid search engine inclusion and placement - Sponsorships - Affiliate relationships - Direct e-mail marketing - Online catalogs - Offline marketing

8. Norton UniversityBusiness Concepts and Social Issues 8 Banner and rich media/Video ads Are promotional messages that users can respond to by clicking on the banner and following the link to a product description or offering. Variations include different size banners, buttons, skyscrapers, pop-ups, and pop-under. Rich media ads use Flash, DHTML, Java, and streaming audio and/or video and typically seek to involve users more deeply than static banner ads.

9. Norton UniversityBusiness Concepts and Social Issues 9 Interstitial ads Are a way of placing full-page messages between the current and destination pages of a user. They are usually inserted within a single site, and are displayed as the user moves from one page to the next; they can also made to appear as users move a among sites.

10. Norton UniversityBusiness Concepts and Social Issues 10 Superstition ads Are rich media ads developed by Unicast that pre- load into a browser’s cache and do not play until fully loaded and the user clicks another page.

11. Norton UniversityBusiness Concepts and Social Issues 11 Paid search engine inclusion and placement Is a relatively recent phenomenon. Firms now pay search engines for inclusion in the search engine index (formerly free and based on “objective” criteria), receiving a guarantee that their firm will appear in the results of relevant searches.

12. Norton UniversityBusiness Concepts and Social Issues 12 Sponsorships Are paid efforts to tie and advertiser’s name to particular information, an event, or a venue in a way that reinforces its brand in a positive yet not overtly commercial manner. Advertorials are a common form of online sponsorship.

13. Norton UniversityBusiness Concepts and Social Issues 13 Affiliate relationships Permit a firm to put its logo or banner ad on another firm’s Web site from which users of that site can click through to the affiliate’s site.

14. Norton UniversityBusiness Concepts and Social Issues 14 Direct e-mail marketing Sends e-mail directly to interested users, and has proven to be one of the most effective forms of marketing communications. The key to effective direct e-mail marketing is “Interested users”- Internet users who, at one time or another, have expressed an interest in receiving messages from the advertiser (people who have “opted in”).

15. Norton UniversityBusiness Concepts and Social Issues 15 Online catalogs Are the online equivalent of paper-based catalogs. Their basic function is to display an e-commerce merchant’s wares.

16. Norton UniversityBusiness Concepts and Social Issues 16 Offline marketing Offline marketing combined with online marketing communications is typically the effective. Although many e-commerce ventures want to rely heavily on online communications, marketing communications campaigns most successful at driving traffic to a Web site have incorporated both online and offline tactics.

17. Norton UniversityBusiness Concepts and Social Issues 17 ONLINE MARKETING COMMUNICATIONS Methods used by online firms to communicate to the consumer and create strong brand expectations and drive sales.

18. Norton UniversityBusiness Concepts and Social Issues 18 PROMOTIONAL SALES COMMUNICATIONS Suggest the consumer “buy now” and make offers to encourage immediate purchase.

19. Norton UniversityBusiness Concepts and Social Issues 19 BRANDING COMMUNICATIONS Focus on extolling the differentiable benefits of consuming the product or service.