Download - Chapter 15 Internet Marketing and Interactive Media.

Chapter 15 : Internet Marketing and Interactive Media

Chapter Objectives

• To explore the different ways the internet is used to communicate.

• To understand the role of the internet and interactive media in an IMC program.

• To review the strengths and limitations of the internet.

• To evaluate the effectiveness of communications through the internet.


Internet Terms

• Ad clicks• Ad click rate• Ad views (impressions)• Banner• Button• CPC• CPM• Domain name• Hit

• Interstitial• Link• Opt-in-e-mail• Page views• Rich media• Sponsorships• Unique users• Valid hits• Visits


Elements of the Internet

• Electronic mail (e-mail)– Allows users to send electronic mail

• Usenet– Discussion groups, newsgroups, bulletin boards

• Telnet– Databases, library catalogs, and electronic journals


Elements of the Internet

• Hypertext transfer protocol (http)– Software protocol for transferring hypertext language

files

• Client server– Computer system for transferring files between

computers

• Gopher– Document retrieval system used to search for

information


Web Participants

• Users: consumer market– Internet users continue to grow in numbers– Higher education and income are more likely to use the

internet– 81% of households with income over $80 000 use the

internet


Web Participants

• Shoppers– Internet shoppers clearly evidence a rich, active, and

diverse lifestyle.– These people are happy with the convenience of the

internet.– Expected that consumer internet spending will reach

$184 billion by 2004.


Web Participants

• Users: business to business– Approximately 90% of all businesses have websites.– B2B sites generate much higher revenues than B2C.– Revenue expected to reach $2.7 trillion by 2004.– Major advantage is finding information about products

and services.


Web-site Communication Objectives

• Build brand image– Brand loyalty still the most important aspect of any

marketing strategy• I.E. “I AM CANADIAN” pride commercial

– Well designed websites are an excellent way to relay product and service information



• Disseminate information– Primary objective for using the web is to provide in-

depth information about the company.– Having a website has become a necessity in B2B

markets.– B2C websites are used to communicate information

about firm’s products and services.



• Create awareness– Even with limited budgets, the web creates opportunity

to expand awareness.

• Gather research information– Web is used to gain audience profile information

• I.E. Use of cookies, internet surveys

– Critical that consumers are aware that their information may be kept in a database.



• Stimulate Trial and Re-Buy– Some websites offer E-coupons– Links to your site from other sites

• Improve Customer Service– Providing information, answering inquiries, taking

complaints, email response sections, FAQs.– Available personnel on 24/7 basis.



• Increase distribution– Internet being used to distribute coupons and samples.– Affiliations - relationships among websites in which

companies cross-promote one another’s products.


Developing & Maintaining a Website

• Requires significant time and effort.– Creativity, effective marketing, and continual updating

of the site.

• Some sites are used for information purposes.• Other sites market more aggressively.

– I.E. Www.kimberlyclark.Com.


Advertising on the Internet

• Variety of forms of advertising on the internet– Banners– Sponsorships– Text ads– Pop ups– Interstitials– Push technologies– Link ads


Sales Promotion on the Internet

• Has become most frequently use method of encouraging repeat visits.– “Free stuff.”– Sweepstakes.– Marketing alliances.– Coupons.

• 30% of web user respondents had used online coupons.


Personal Selling on the Internet

• High-cost and poor-reach disadvantages of personal selling can now be cut back.

• Provides excellent selling support.• Provides more information in a more timely

manner.• Internet and personal selling are designed to be

complementary tools in a good IMC program.


PR on the Internet

• Many sites devote a portion of their content to PR activities.

• Web offers many opportunities to PR practitioners:– Development of media relations websites.– Provide customized information dissemination.– Development of positive e-mail relationships.


Direct Marketing on the Internet

• Direct mail– Highly targeted– Relies on e-mail lists– Attempts to reach those with specific needs– Often used by catalogers

• Marketing databases on the net – Companies build or acquire a database– The database is sold to subscribers– Delivery may be on- or off-line


Direct Marketing on the Internet

• Infomercials– Program content similar to television, cable or satellite– Web provides for greater audience interaction

• E-commerce– Rapid growth rates likely to continue– CDs, books, travel are main categories– Clothing, cars, financial services are all gaining ground


Strengths of Internet Marketing

• Target marketing• Message tailoring• Interactive capabilities• Information access• Sales potential• Creativity• Exposure• Speed


Limitations of Internet Marketing

• Measurement problems• Audience characteristics• Websnarl• Clutter• Potential for deception• Costs• Limited production quality• Poor reach