E-Marketing Communication

Yeşim SoyluMelike AkdülgerOkan ErolIlgın Ece ŞahinKemal YerlikayaSeda Çetin

05 May 2008 / Lecture slides for Digital Marketing courseContact: ysoylu@su.sabanciuniv.edu

Lecture Objectives

The new age consumer and communication Define integrated marketing communication

(IMC) and explain the importance of hierarchy of effects models.

Describe the characteristics of the major media and the Internet’s media characteristics.

Discuss how marketers use the Internet for advertising, marketing public relations, sales promotions, and direct marketing.

Outline the methods for buying media and vehicles and for evaluating an IMC campaign’s effectiveness.

Consumer behavior is changing

Technology has changed too..

We influence each other differently

From advertising age to conversation age

http://darmano.typepad.com/logic_emotion/conversation_marketing/index.html

Integrated Marketing Communications IMC Characteristics:

Coherence Consistency Continuity Complementary

IMC is a cross-functional process for planning, executing, and monitoring brand communications.

The goal is to profitably acquire, retain, and grow customers.

Integrated marketing communicationsThe coordiation of communicationschannels to deliver a clear,consistentmessage

How do internet marketing communications differ from traditional marketing communications?

Interactivity Intelligence Individualisation Integration Industry restructuring Independence of location

Online communication mix

Decision on the mix between different communication techniques such as search engine marketing, e-mail marketing and online advertising.

Control of media spending and purpose of communication Attraction Conversion Retention

Characteristics of interactive marketing communications

Push media: Communications are broadcast from an advertiser to consumers of the message who are passive recipients (TV and radio)

Pull media: The consumers is proactive in selection of the message through actively seeking out a web site. (internet)

From push to pull

From monologue to dialogueCreating a dialogue through interactivity

İnternet marketing tools

Marketing Communication Tools Marketing Communication consists of both

planned and unplanned messages between firms and customers and among customers.

E-marketers can enhance Marketing Communication by using innovative technologies.

Internet Marketing Communication may include advertising, sales promotion, marketing public relations, and direct marketing.

Marketing Communication Media The Internet is just one of many media

used to carry Marketing Commnication messages.

Based on their ability to reach increasingly narrower audiences, electronic media can be viewed as: Broadcast (TV and radio) Narrowcast (Cable TV) Pointcast (Internet and cell phone)

Strengths & Weaknesses of Media

Criterion TV Radio Magazine Newspaper Direct Mail Internet

Involvement passive passive active active active interactive

MediaRichness

multi-media

audio text and graphic text and graphic text andgraphic

multi-media

GeographicCoverage

global local global local varies global

CPM low lowest high medium high medium

Reach high medium low medium varies medium

Targeting good good excellent good excellent excellent

Track Effectiveness fair fair fair fair excellent excellent

Message Flexibility poor good poor good excellent excellent

IMC Goals and Strategies The AIDA and “think, feel, do” (hierarchy of

effects) models help guide selection of online and offline Marketing Communication tools.

Consumers first become aware of a product before they develop feelings and purchase it. Application depends on whether the product purchasing decision is high- or low- involvement.

The models can help marketers select appropriate communication objectives and strategies, such as: Build brand equity. Elicit a direct response.

Direct Marketing

Direct marketing includes techniques such as: Telemarketing Outgoing e-mail Postal mail, including catalog marketing Targeted online ads Short message services (SMS) Multimedia message services (MMS) Instant messaging (IM)

Direct Marketing

Direct marketing is broadly defined as any direct communication to a consumer that is designed to generate a response in the form of an order, a request for information, and/or a visit to a store or other place of business for purchase of a product or products.

Ex:http://directmarketingstore.com

Techniques

E-mail Permission Marketing Viral Marketing Messaging Location Based-Marketing

E-mail (Advantages) No postage or Printing Charges Immediate and direct response Can be individualized to meet the needs

of specific users

E-mail (Disadvantages)

Unsolicited e-mail Difficulty in finding appropriate lists

Web site registration Rented from list broker Harvested from newsgroups

Email: Spam!

All unsolicited e-mails is considered spam!

E-mail offers the chance for real

dialogue with individual customers, as well as a way to develop broad and deep customer relationships instead of merely using it to acquire to customers

Newsletter Advantages

Promote the company name Personalize communication Position the company as an expert in a

subject Makes it easy to pass information Pay themselves with carrying small ads

Permission Marketing

Turning strangers into customers Asking people about what they are

interested in Successfull because in return for

participation users get coupons, cash or free products

Opt-in, opt-out example

Opt-in Techniques will evolve and grow in years

to attract customers for opt-in such as using quizes, games;

Heineken’s Delivery Game Axe’s Maneater

Viral Marketing - WoM

Hotmail story, from 50000$ to 400m$ with 12m customers

Bush vs Kerry cartoon visited 4.5m without ad

American Psycho’s invitations written by the murderer

Messaging

SMS, MMS, IM To be successfull, messages should be

short, personalized, interactive and relevant

Such as; notification of upcoming flight delay, notfication

Location Based Marketings

Isnt it great to receive an SMS on your cell, offering a free beverage from your favorite restaurant?

With GPS it can be done but expensive comparison to other techniques

%88 says they will use accept the offer if they recieved such message

Internet Advertising

Formats Banners Pop-Ups Sponsorships Interstitials, Superstitials & Screen

Interrupts Search Engine Marketing (SEM)

Key word advertisingSearch Engine Optimization

Banners:

Attract attention for awareness or direct response

May involve graphics, audio or video capabilities Pros • Adressed to the users of selected websites• Cost-effective ad method• Easy to implement• Effective measurement Cons• Too much loading time• Irritating (Banner blocker softwares…)• Mostly ineffective

Banners:

History Started in 1994

By AT&T 30% click-through 0.15% today Declining effect New tech updates Still popular aftervideo ads, search adsand advergames.

Banners: How To

Determine need Planning

Plan your ad & Design Select tools & Compute costs

Decide on publisher media Construct campaign Monitor

Banners: Top 10 Tips

1. Target2. Pose questions3. Bright colors4. Home is not

always sweet5. Location

6. Use animation7. Use cryptic

messages8. Call to action9. Avoid Banner

Burnout10. Measure beyond

the click

Pop-Ups

Appears with page loading, mouse action or page content.

Definitely visible; but extremely irritating.

“Current click-through rates are inflated because many

Internet users are not familiar with how to close the pop-up

window. The rates will decrease as users gain experience” (1)

GartnerG2 conducted the research, finding 78 percent of

Internet users say pop-ups are "very annoying." Only 49

percent find banner ads as annoying as pop-ups.(2)

http://advertising.about.com/library/weekly/aa012803a.htm (1,2)

Sponsorships

Wrigley candystand

Interstitials, Superstitials & Screen Interrupts

Interstitials Appears while loading Negative bias for slow loading

Superstitials Embedded mini-videos in website content Faster loading time Responds to mouse activation

Screen Interrupts (Shoshkele) Enjoyable but invasive

Example: An Interstitial

Example: Superstitials

http://www.hillmancurtis.com/hc_web/web_motion/source/ultimatetv_superstitial.html

Marketing Public Relations

Web Site Blogs Community Building Online Events

Marketing Public Relations

Web site Improve web site in order to increase

customer experience Modify web site for special events and days Collect customer data for further

interaction Low-cost PR alternative

Under satisfactory visiting frequencies

Marketing Public Relations

Blogs Started in 1997 as diaries Became mainstream & effective since 2004 For sharing info and experience Created by fans, users & companies

http://ilovemyadidas.blogspot.com/http://blogs.motortrend.com/2/110/porsche/

index.html

Blogs

Blogs

Marketing Public Relations

Brand Communities Network of customer relationships Built on context and relevance of content Mutual Responsibility Rituals and traditions Celebrate brand history Share brand stories Assimilate new brand users

“A brand community is a specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand.” Muniz and O’Guinn (2001, p.412)

Marketing Public Relations

Spread Firefox

Nike Plus

Harley Davidson

Dell Ideastorms

Marketing Public Relations

Information Exchange

SocialInteraction

Group Focus

DungeonsRooms

ListsBoards Rings

Loose High

Social Structure

The first types of virtual internet based communities that were of value to marketers. Source: Kozinets (2000)

High self-centrality of consumption

Strong social ties to

community

Low self centrality of consumption

Weak social ties to

community

Devotee

Tourist

Insider

Mingler

Types of users found in virtual internet based communities and their characteristics.Source: Kozinets (2000)

Brand Communities: Members are the messengers

Marketing Public Relations

Online Events Generate user interest & draw traffic to site

Examples: Amazon let members to contribute stories started by

famous authors Land Rover broadcasts Camel Trophy online Online Victoria’s Secret and Superbowl shows Online discussions and workshops with corporate

managers

Sales Promotion Offer

Coupons Sampling Contests & Sweepstakes Advergames

Coupons & Sampling

Coupons For both online & offline clients Offers include both online and offline

advantages http://www.indirimkuponlarim.com/ http://www.yemeksepeti.com/elit/

Sampling Free testware or partial software Home delivery sampling after online

application

Advergames

“Let’s face it. 30-second tv commercial is tired. The banner ad just ain’t clicking. And pop-ups are public enemy #1.”

Adressed to teenagers, game-o-holics & anyone visiting the corporate websites

Consumers’ willingness is the key to participate and create viral buzz

Strengthens connections and increases brand awareness while offering fascinating experiences

40 million hits monthly, only at advergames.com

Advergames

Traffic and Metrics

Efficient and Effective Right target at low cost

ADs Inorganic vs Organic

Traffic and Metrics

Appropriate ad for user’s interest Using cookies

CPM (cost per thousand) Impressions efficiency $7-15

Tracking Progress

IMC Metrics AD click; most likely a purchase

Has only 2.4% chance

Tracking Progress

Top sites in Turkey that drive traffic.

Taken from:

Alexa.com

Display Ads Brand awareness Message association

Results

100% increase in impressions

42% increase in brand effectiveness

More ResultsClick Through Rate – click to impressions; 0.4 - 10%Customer Acquisation Cost - $82 for online vs $31

offlineConversion Rate – customers to visitors; 1.8%(banners)

-5%(emails)Cost per Click – pay per click ADS

IMC Metrics

Banner ads are ineffective? Only 0.15% of all users click on them.

Rich media ads receive an average 2.5% click-through.

Online ads that were bigger, placed as interstitials or contained rich media delivered greater impact.

There is increasing evidence that online and offline advertising work well together.

Mini-Case

Heineken

Porche

HSBC

Benetton

How would you communicate your brand online?

To summarize...

When designing e-marketing communication strategy take into account the changing media and

consumer the cost and effectiveness of the media choose between many alternatives that

best fit your purpose e-mail marketing/online advertising/direct

marketing measure to see results

Thanks for listening!

Please send questions and comments. ysoylu@su.sabaciuniv.edu

ReferencesDave Chaffey, Internet Marketing Strategy, Implementation and Practice

Ch# 1,4,8

Dave Chaffey, Total E-mail Marketing Maximizing Your Results From Integrated E-marketing

John O’Connor, Electronic Marketing Theory and Practice for the Twenty-first Century Ch#12 Promoting to markets of one

Larry Weber, Marketing to the Social Web How Digital Customer Communities Build Your Business

http://darmano.typepad.com/