1. Copyright © 2010 Pearson Education, Inc.Copyright © 2007 Pearson Education, Inc. Slide 1-1 ELC 200 Day 15

2. Agenda Questions? Assignment 4 Corrected  1 A, 1 B, 2 C’s, 2 D’s, 1 F & 2 non-submits Assignment 5 posted  Due March 16 (next classs)  assignment5.pdf assignment5.pdf Assignment 6 Posted  Due Mar 23  assignment 6.pdf assignment 6.pdf 2 more assignments to go Quiz 2 on Mar 23  Chap 5-8  Short Essay & Multiple Choice  On Blackboard Finish E-commerce Marketing Communications

3. Possible Bonus Points Questions Name and origin of   What does his name mean?  What does he look like all  “grown up”? Origin of the word SPAM for email  First SPAM  First email SPAM Copyright © 2010 Pearson Education, Inc. Slide 1-3

4. Copyright © 2010 Pearson Education, Inc.Copyright © 2009 Pearson Education, Inc. Slide 7-4 Chapter 7 E-commerce Marketing Communications

5. Learning Objectives Identify the major forms of online marketing communications. Explain the costs and benefits of online marketing communications. Discuss the ways in which a Web site can be used as a marketing communications tool. Copyright © 2010 Pearson Education, Inc. Slide 7-5

6. Copyright © 2011 Pearson Education, Inc. Mobile Advertising Half of U.S. Internet users access Internet with mobile devices Currently small market, but fastest growing platform (35%) Google and Apple in race to develop mobile advertising platform Ads in Apps AdMob, iAd AdMobiAd Slide 7-6

7. Copyright © 2010 Pearson Education, Inc. Sponsorships and Referrals Sponsorships  Paid effort to tie advertiser’s name to particular information, event, venue in way that reinforces brand in positive yet not overtly commercial manner http://www.webmd.com/ Referrals  Affiliate relationship marketing  Permits firm to put logo or banner ad on another firm’s Web site from which users of that site can click through to affiliate’s site Slide 7-7

8. Copyright © 2010 Pearson Education, Inc. Slide 6-8

9. Copyright © 2010 Pearson Education, Inc. E-mail Marketing and the Spam Explosion Direct e-mail marketing  Low cost method  Primary cost is purchasing addresses Spam: unsolicited commercial e-mail  80%–90% of all e-mail purportedly is spam  Efforts to control spam: Technology (filtering software) Government regulation (CAN-SPAM and state laws) Voluntary self-regulation by industries  DMA DMA Slide 7-9

10. Copyright © 2011 Pearson Education, Inc. Percentage of E-mail That Is Spam Slide 7-10 Figure 7.6, Page 448 SOURCE: Symantec MessageLabs, 2010

11. Symantec Intelligence Report Feb 2012 Report highlights  Spam – 68.0 percent (a decrease of 1.0 percentage points since January): page 7  Phishing – One in 358.1 emails identified as phishing (an increase of 0.01 percentage points since January): page 10  Malware – One in 274.0 emails contained malware (an increase of 0.03 percentage points since January): page 12  Malicious Web sites – 2,305 Web sites blocked per day (an increase of 9.7 percent since January): page 13  New wave of cyber-attacks designed to impersonate the Better Business Bureau: page 2  Blogs review: page 6  Best Practices for Enterprises and Users: page 16  b-intelligence_report_02_2012.en-us.pdf b-intelligence_report_02_2012.en-us.pdf Copyright © 2010 Pearson Education, Inc. Slide 6-11

12. Copyright © 2010 Pearson Education, Inc. Spam Categories Figure 7.7, Page 445 Slide 7-12 SOURCE: Symantec, 2009.

13. Copyright © 2010 Pearson Education, Inc. Online Catalogs Equivalent of paper-based catalogs Graphics-intense; use increasing with increase in broadband use Two types: 1. Full-page spreads, e.g., Landsend.com 2. Grid displays, e.g., Amazon In general, online and offline catalogs complement each other Slide 7-13

14. Copyright © 2010 Pearson Education, Inc. Social Marketing “ Many-to-many” model Uses digitally enabled networks to spread ads  Blog advertising Online ads related to content of blogs  Social network advertising Ads on MySpace, Facebook, YouTube, etc.  Game advertising Downloadable “advergames” http://advergames.com/ Placing brand-name products within games Slide 7-14

15. Copyright © 2010 Pearson Education, Inc. Behavioral Targeting Web as “Database of Intentions” Behavioral targeting  Combines real-time information on visitors online behavior with offline identity, consumptive information  Data analyzed to develop profiles  Ads delivered based on profile  Hundreds of versions of ad for different profile groups One of fastest growing online marketing techniques Raises privacy concerns Slide 7-15

16. Copyright © 2010 Pearson Education, Inc. Mixing Offline and Online Marketing Communications Most successful marketing campaigns incorporate both online and offline tactics Offline marketing  Drive traffic to Web sites  Increase awareness and build brand equity Consumer behavior increasingly multi-channel  60% of consumers research online before buying offline Slide 7-16

17. Copyright © 2010 Pearson Education, Inc. Online Marketing Metrics: Lexicon Measuring audience size or market share  Impressions  Click-through rate (CTR)  View-through rate (VTR)  Hits  Page views  Stickiness (duration)  Unique visitors  Loyalty  Reach  Recency Slide 7-17

18. Copyright © 2010 Pearson Education, Inc. Online Marketing Metrics Conversion of visitor to customer  Acquisition rate  Conversion rate  Browse-to-buy-ratio  View-to-cart ratio  Cart conversion rate  Checkout conversion rate  Abandonment rate  Retention rate  Attrition rate E-mail metrics  Open rate  Delivery rate  Click-through rate (e-mail)  Bounce-back rate Slide 7-18

19. Copyright © 2010 Pearson Education, Inc. An Online Consumer Purchasing Model Figure 7.9, Page 465 Slide 7-19

20. Copyright © 2010 Pearson Education, Inc. How Well Does Online Advertising Work? Ultimately measured by ROI on ad campaign Highest click-through rates: search engine ads, permission e-mail campaigns Rich media, video interaction rates high Online channels compare favorably with traditional channels Most powerful marketing campaigns use multiple channels, including online, catalog, TV, radio, newspapers, stores Slide 7-20

21. Copyright © 2010 Pearson Education, Inc. Comparative Returns on Investment Figure 7.9, Page 471 Slide 7-21 SOURCE: Industry sources; author estimates.

22. Copyright © 2010 Pearson Education, Inc. The Costs of Online Advertising Pricing models  Barter  Cost per thousand (CPM)  Cost per click (CPC)  Cost per action (CPA) Online revenues only  Sales can be directly correlated Both online/offline revenues  Offline purchases cannot always be directly related to online campaign In general, online marketing more expensive on CPM basis, but more effective Slide 7-22

23. Customer Acquisitions Costs Copyright © 2010 Pearson Education, Inc. Slide 6-23 Internet search engine8.50 E-mail (opt-in)10.00 Television11.00 Magazine19.00 Yellow pages20.00 Newspaper25.00 Online Display Ads50.00 Direct Mail50.00

24. Copyright © 2010 Pearson Education, Inc. Web Site Activity Analysis Figure 7.11, Page 472 Slide 7-24

25. Copyright © 2010 Pearson Education, Inc. The Web Site as a Marketing Communications Tool Web site as extended online advertisement Domain name:  First communication e-commerce site has with prospective customer Search engine optimization:  Register with as many search engines as possible  Ensure keywords used in site description match keywords likely to be used as search terms by user  Link site to as many other sites as possible  Get professional help Slide 7-25

26. Copyright © 2010 Pearson Education, Inc. Web Site Functionality Main factors in effectiveness of interface  Utility  Ease of use Top factors in credibility of Web sites  Design look  Information design/structure  Information focus Organization is important for first-time users, but declines in importance  Information content becomes major factor attracting further visits Slide 7-26

27. Copyright © 2010 Pearson Education, Inc. Factors in the Credibility of Web Sites Figure 7.12, Page 477 Slide 7-27 SOURCE: Based on data from Fogg, et al, 2003.

28. Copyright © 2010 Pearson Education, Inc. Slide 7-28 Table 7.9, Page 478