chapter
99
CommunicationCommunication
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Communication — Today’s Objectives
Objectives will be to:
Explore how the Internet affects marketing communications
Examine the marketing levers — offline and online
Discuss the six steps of the communication process
Explore integrated implementation of levers across the four relationship stages
How the Internet Affects Marketing Communications
The Marketing Levers — Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Example
Conclusion
Chapter 9: Communication
Chapter 9: Communication
How the Internet Affects Marketing Communications
The Marketing Levers — Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Example
Conclusion
Exhibit 9.1: The Effects of the 2Is on Communication
Individual controls information flow
Allows more targeted communications
Individualized marketing communications are more relevant to the consumer
Allows consumers to specify preferences
Facilitates relationship building through two-way communication
Allows tracking of consumer response to marketing communications
IndividualizationIndividualization InteractivityInteractivity
CommunicationCommunication
Personalization and Predicting Behavior
Prediction Based on Past Behavior Is Effective
Past Behavior Is Not a Good Predictor
Past behavior is predictive of preferences and current behavior
People who buy products of type x will be interested in products similar to type x
Not only is this an effective way to determine consumer preferences, it is also simple to track
Purchase behavior is driven by goals, not past behavior
Personal goals constantly change and past behavior does not provide much insight into these goals
Purchases such as gifts and infrequently purchased products like a TV set are examples of instances where past behavior is ineffective
Point-Counterpoint
Banner Ad(to promote awareness)
Banner Ad(to promote awareness)
Personalized Website
Permission e-mails
Individualized offerings
Personalized Website
Permission e-mails
Individualized offerings
Website Website
AwarenessAwareness CommitmentCommitmentExploration Exploration
2Is 2Is
User clicks on bannerto find out more
User can set up the webpageaccording to personal preferences,register for e-mails, give feedback,or make a purchase
One Seamless Experience
Exhibit 9.2: The 2Is Streamline Advancement Through the Stages
Chapter 9: Communication
How the Internet Affects Marketing Communications
The Marketing Levers — Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Example
Conclusion
On
line
Off
line
OutdoorAdvertising (Billboards)
Yellow Pages
Radio
Television
Brochures
Newspapers
Sponsorships
Magazines
Newsletters
Point-of-Purchase Displays
Customer Service
Direct Mailings
Telemarketing
Sales force/Face-
to-Face
Banner Ads
Rich Media
Search Engines
Interstitials
Classifieds & Listings
Wireless Devices
Websites
E-MailMarketing
Personal Websites
Exhibit 9.3: Online and Offline Levers
Mass Personal
Public Relations
Dynamic Ads
Interactive
Television
Exhibit 9.4: Profiles of Online Media Types
Medium Advantages Disadvantages
Websites/Personalized websites
Communicate rich, detailed information that users can navigate at will; can track users and customize site accordingly.
Narrow reach
Banner ads Link directly to buying opportunity; easy to measure effectiveness; wide reach; potential for effective targeting
Low attention and click-through rates; short life; limited “pass-along” audience; very high clutter; fleeting exposure
Interstitials Catch users’ attention; link to buying opportunity Can annoy users; limited “pass-along” audience
Rich media Attention-getting; link to buying opportunity Can annoy users without broadband access
Dynamic ad placement Serves up customized ads to users in real time Difficult to execute well; can annoy users, other advertisers
Search engines Good credibility; high believability; guarantee of position available; significant audience at major sites
High competition; information overload; limited “pass-along”
Classifieds and listings
Relatively inexpensive, potential for wide exposure; qualified audience Clutter
Opt-in e-mail High demographic selectivity; high credibility; significant flexibility; proven high click-through rates; absolutely inexpensive; some pass-along
Requires substantial user base before effective; high clutter
Mass e-mail High reach; inexpensive; flexible Low attention and significant resentment (spam image)
Customer service Interested parties asking for help, thus high targeting value; generates loyal customers
Very expensive to provide comprehensive telephone, e-mail, and online support
Aggregate number of user clicks on a banner adAd ClicksAd Clicks
Number of times a banner ad is downloaded to a user’s browser and presumably looked at
Ad Views (Impressions)
Ad Views (Impressions)
Percentage of ad views that are clicked upon; also “Ad Click Rate”Click-ThroughClick-Through
Formula used to calculate what an advertiser will pay to an Internet publisher based on number of click-throughs a banner generates
CPC(Cost-per-Click)
CPC(Cost-per-Click)
Cost per thousand impressions of a banner ad; a publisher that charges $10,000 per banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500)CPMCPM
Measurement recorded in server log files that represent each file downloaded to a browser; since page design can include multiple files, hits are not a good guide for measuring traffic at a website
HitHit
Number of individuals who visit a website in a specified period of time; requires the use of registration or cookies to verify and identify unique usersUnique UsersUnique Users
A series of requests made by an individual at one site; if no information is requested for a certain period of time, a “time-out” occurs and the next request made counts as a new visit — a 30 minute time-out is now standard
VisitsVisits
Exhibit 9.5: Internet Ad Terms
Chapter 9: Communication
How the Internet Affects Marketing Communications
The Marketing Levers — Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Example
Conclusion
Step 1
Step 3
Step 2
Step 4
Step 5
Six Steps of the Communication Process
Step 6
Identify the Target Audience
Determine theCommunication Objective
Develop the Media Plan
Create the Message
Execute the Campaign
Evaluate the Effectiveness of the Campaign
CommunicationCriteria
MediaCriteria
Chose Media Mix
Tie Back toOverall
Plan
AllocateSpending
Behavioral objectives
Available spending
Customer segments
Ability to further behavioral objectives
CPM
Ability to reach target segments
Direct mail, Internet, broadcast, print, point-of-sale, etc.
Tie media plan back to communications plan (e.g., make sure the media plan will drive the trial or awareness required)
Allocation of spending across media mix elements and time periods based on relative priority
Exhibit 9.9: A Process for Defining Media Choice and Mix
Exhibit 9.11: Genuity Ads
Exhibit 9.12: Genuity Website
Chapter 9: Communication
How the Internet Affects Marketing Communications
The Marketing Levers — Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Example
Conclusion
Exhibit 9.13: Exploring the Levers Across the Relationship Stages
Television, iTV Magazines and newspapers Radio Yellow pages Billboards / outdoor
advertising Banner ads
AwarenessAwareness
Television, iTV Magazines and
newspapers Radio
Rich media ads and dynamic ad placement
Website
Direct mail
Telemarketing
Customer service
Sales force
Exploratory /Expansion
Exploratory /Expansion CommitmentCommitment
Terminate marketing
DissolutionDissolution
Search engines Listings Classifieds
Direct mail Telemarketing
Public relations
Permission e-mail
Permission direct mail
Sales force
Website Personalized pages
Customer service
Sales force
Chapter 9: Communication
How the Internet Affects Marketing Communications
The Marketing Levers — Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Example
Conclusion
Exhibit 9.14: EBay Sponsored Link
Exhibit 9.16: EBay/Disney Cobranded Site
Chapter 9: Communication
How the Internet Affects Marketing Communications
The Marketing Levers — Offline and Online
The Six Steps of the Communication Process
Integrated Implementation of Levers Across the Four Relationship Stages
EBay Example
Conclusion
Communication — Conclusion
Effective marketing communications must be integrated and work together with synergy, and they must be consumer-centric
The communication marketing levers include various communication types that can be organized into the following categories: mass offline, personal offline, mass online, personal online
The communication process involves six steps: 1) Identify the target audience, 2) determine the communication objective, 3) develop the media plan, 4) create the message, 5) execute the campaign and 6) evaluate the effectiveness of the campaign
Specific levers can be applied that are appropriate for each relationship stage
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